Veolia Cost Benefit Analysis

Veolia use of activity based costing will be important in their decisions on how they approach the regulations for reducing their Carbon Dioxide emissions or whether they will purchase credits. Their product is steam and electricity to the population of Philadelphia and the U of P in Philadelphia. Currently, the cost of buying CO2 credits from the last RGGI action was $5.41 per ton. The last action in March of 2015 sold 15, 272, 670 credits. Veolia will need to establish not only the engineering, construction and operating cost of each of the alternatives to reduction alternatives for CO2 over the purchasing of credits. The cost per ton will continue to increase per the RGGI rules. Currently, Veolia has not participated in the RGGI actions for credits for the Pennsylvania is not a member. If Pennsylvania becomes a member this will be an option for Veolia to meet their compliance of

The purchase of credits is a short term option for all companies producing electricity and steam regardless of the type of fossil fuel used. Present research has concentrated their evaluations on coal since coal produces the highest emissions of CO2. The following is the emissions of CO2 per Btu of energy based on fuel type is : Coal (anthracite) 228.6, Coal (bituminous) 205.7, Coal (lignite) 215.4, Coal (subbituminous) 214.3, Diesel fuel & heating oil161.3, Gasoline157.2, Propane139.0, and Natural gas117.0. Since natural gas is principally methane, it has higher energy thus lower CO2 compared to other fuels. This lower generation of CO2 has limited the interest in research to reduce the CO2 that is in the stack exhaust. However, the cost of engineering, construction, and operating any of the options