In fermentation project economics, the one-time start-up expenses (commissioning, shakedown, training, initial inefficiencies) are typically budgeted as what percentage of fixed capital cost?

Difficulty: Easy

Correct Answer: 10–15% of the capital cost

Explanation:


Introduction:
Start-up expenses account for the transition from construction to steady production, including commissioning runs, staff training, SOP validation, and early-run inefficiencies. A realistic allowance prevents underestimation of total funds required before positive cash flow.


Given Data / Assumptions:

  • Fixed capital cost is known from installed equipment and facilities.
  • Start-up covers non-recurring costs before routine operation.
  • Typical guidance is applied at the feasibility stage.


Concept / Approach:
Chemical and biochemical plant cost guidelines often budget start-up in the low-to-mid teens percent of fixed capital for complex processes. Bioprocesses involve validation and contamination control, supporting a 10–15% allocation in many cases.


Step-by-Step Solution:
Step 1: Identify cost elements unique to start-up (commissioning, qualification, training).Step 2: Apply standard heuristic range to fixed capital.Step 3: Select 10–15% as a representative allowance.


Verification / Alternative check:
Process economics references list start-up typically around 10% with adjustments for regulatory environments and technology novelty.


Why Other Options Are Wrong:

  • 0–5% or 2–4%: Likely insufficient for bioprocess commissioning.
  • 5–10%: Possible for simpler plants but can be low for GMP settings.
  • 15–20%: Upper bound used only for highly complex or novel technologies.


Common Pitfalls:
Excluding validation and batch release costs; underestimating the number of commissioning runs needed to achieve specification.


Final Answer:
10–15% of the capital cost

More Questions from Downstream Processing

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion