AHP Solutions/Competencies/Tools & Methods
Method Description – Integrated TEA/LCA
AHP applies an integrated methodology combining Techno-Economic Analysis (TEA) and Life Cycle Assessment (LCA) to provide a comprehensive evaluation of investment options, processes, and technologies.
The TEA is based on modeling a virtual Special Purpose Vehicle (SPV) with a complete financial plan (VoFi), including balance sheets, profit and loss statements, and cash-flow projections over the entire operational lifetime.
Economic performance is assessed using discounted cash flow methods and standard financial indicators such as NPV, IRR, return on equity, payback period, and minimum selling prices.
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Net Present Value (NPV)
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Internal Rate of Return (IRR)
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Return on Equity (RoE)
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payback period
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Minimum Selling Prices
TEA simulation object SPV (special purpose vehicle) with a comprehensive financial plan
The LCA is fully integrated into the TEA model system and is conducted in accordance with DIN EN ISO 14040/14044 as a cradle-to-gate analysis. The life cycle inventory is based on the material and energy flows modelled in the TEA. The focus is on assessing global warming potential (GWP) and additional resource-related environmental indicators.
This integrated methodology enables consistent comparison of scenarios and technology pathways while providing a robust analytical framework for funding applications, investment decisions, and strategic planning.
Example: LCA results as a waterfall diagram
Sensitivity analyses and Monte Carlo simulations are used to account for forecast-related uncertainties. This enables probability distributions of key output variables to be determined and risks to be quantitatively assessed.
Incremental project optimization using Monte Carlo simulation: incremental shift of the NPV probability distribution to the right — >higher returns; incremental narrowing of the probability distribution — >lower variance and reduced investment risk.