"Prospective application of LCC and LCA at low TRLs can enable technology developers to understand the implications of different design choices"

In this contribution, Prof. Dr. Martin Hartmann (FAU) highlights how the prospective application of Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) at low TRLs can guide early-stage technology development. By identifying environmental impacts, cost drivers, and design trade-offs, LCA and LCC help avoid costly missteps and support more sustainable innovation pathways.

1. How can LCA and LCC analyses support proof-of-concept development?

Prospective application of LCC and LCA at low TRLs can enable technology developers to understand the implications of different design choices on future performances with respect to technical, economic, and environmental aspects of an emerging technology. This can help to reduce costs, avoid environmental consequences, and prevent regrettable investments by supporting technology developers to optimize different process layouts and operating parameters. 

2. What are the key uncertainties and risks associated with LCC analysis?

LCC is defined as an economic method for assessing all (direct, in-direct, internal, and external) costs and revenues (cash flows) arising within a defined life cycle considered important to the investment decision and project evaluation. The main hurdle is the lack of complete and reliable financial and nonfinancial data of chemical processes to perform an LCC analysis. Another influential parameter in calculating the life cycle cost is the inflation rate. This rate directly indicates the decrease or increase in the price of raw materials and chemical products and are particularly important in long-term projects related waste-to-energy projects such as Waste2H2.  

3. Why is it important to conduct LCA and LCC in parallel?

It helps in identification of priority actions in reducing environmental impacts and identifying cost drivers beyond traditional fixed and variable cost analysis along the whole life cycle of a product or service. It enables the identification of the cost drivers and environmental effects concerned with the different phases of a project’s life cycle, allowing decision-makers to make informed decisions that balance economic and environmental considerations. Such a holistic approach also supports companies in developing their strategy.

4. What are the main aspects analyzed in the LCA and LCC assessments?

Life Cycle Assessment (LCA) and it’s economic counterpart LCC (life cycle costing) evaluate the environmental impacts and the costs associated with a product or service from cradle to grave. It assesses environmental impacts and related costs of products, processes and activities, encompassing extraction and processing of raw materials, chemical production and separation processes, product distribution, use and disposal or recycling.