How much patent royalty is required for Texaco’s gasification technology?

For reference only: 1. According to TEXACO’s original pricing method for its patents related to water-coal slurry gasification, the fee per standard cubic meter of useful gas (CO+H2, the amount of gas produced per day) is around $2.4. For example, a methanol plant with an annual production capacity of 200,000 tons (with a maximum operating flexibility of 125%, meaning an annual production of 250,000 tons of methanol) has an effective gas flow rate of around 82,000 Nm3/h; the calculated patent fee is approximately 4.72 million dollars (82,000 × 24 × 2.4 / 10,000). $2.4 per cubic meter of effective gas was TEXACO’s original price. As TEXACO has put more facilities into operation in the country, along with the introduction of facilities operated by SHELL and domestic multi-nozzle water-coal slurry systems, TEXACO has reduced its prices to enhance its market competitiveness, as has been proven by several recent facilities. 2. In the actual implementation of a project, patent fees are generally not listed separately, as it is not possible to purchase patents alone. When negotiating with TEXACO, discussions usually cover costs related to technology licensing (which is equivalent to patents), process packages, and commissioning services – in other words, a \"package\" of fees. 3. The technical licensing costs per unit of product vary depending on different projects, the scope and nature of the introductions involved, scale, gasification pressure, and bidding methods, but overall the differences are not significant. 4. The following provides reference figures for the overall technical licensing costs at different coal feeding scales. It should be noted that these are merely for reference only; the actual costs may vary depending on the specific circumstances. ·Coal input of 750 tons per day: $3 million · Coal input of 1000 tons per day: $4 million · Coal input of 1500 tons per day: $6 million · Coal input of 2000 tons per day: $8 million (no such facilities are in operation in China yet). Last edited by zjyang168168 on 2007-12-10 10:34.]

Thank you so much! ! :handshake :handshake

It should be calculated based on the effective volume per day; for example, if you calculate 82,000×2.4, you get $196,800. The patent fee would then be 82,000×24×2.4, which equals $4.7232 million. Moreover, the current rate of $2.4 is on the high side

It seems to be calculated on a daily basis; what the person on the 4th floor said makes sense. If it is synthetic ammonia, could you please tell us your calculation method? :handshake

I sincerely accept everyone’s feedback. Due to my negligence, I mistakenly wrote the daily gas production amount as if it were per hour; I have now made the necessary corrections to the post in question. Please forgive me. As for the issue on the 6th floor, the calculation should still be based on the amount of CO+H2 at the outlet of the gasifier. In China, regions such as southern Shandong, the Wei River area in Shaanxi, Huainan in Anhui, Jinling in Nanjing, and the Nanhua Group all use water-coal slurry gasification to produce synthetic ammonia.

Currently, the patent licensing fees for wet gasification are calculated based on the amount of gas allowed to be used under the license. For example, in the case of 300,000 tons of synthetic ammonia produced, the amount of gas that can leave the washing tower is around 90,000 Nm3/h; thus, the patent fee would be 90,000 * 24 * unit price. The current approximate unit prices are as follows: 4 yuan/Nm3 for multi-material slurries, 4.8 yuan/Nm3 for multi-nozzle systems, and 1.8 dollars/Nm3 for GE systems. In addition, GE charges other licensing fees, with an approximate unit price of 2 dollars/Nm3. The exact amount of gas allowed under the license depends on the design team’s decision based on the synthesis process of the subsequent system

Thanks for the analysis from above; it seems that a multi-material slurry is more cost-effective.

The data is quite comprehensive. Currently, with the US dollar depreciating and the RMB appreciating, patent fees have become relatively much cheaper.

I’m not sure whether the depreciation of the dollar will be beneficial for us to bring in Texaco. :L

:Brothers, a factory costs hundreds of millions; what’s most important are the overall investment, costs, and reliability. The expenses related to patents and similar things are trivial amounts – one shouldn’t give up something valuable just for trivial gains. Remember, remember! If it were me, I would carefully examine these key technologies, visit the factory where the vehicles are manufactured, and listen to what they have to say, before forming a comprehensive evaluation. Of course, basic knowledge is essential: lol

A few hundred million would make things much easier; it will cost at least around 1.5 billion to build it. The main problem right now is a lack of funds; local materials are not an issue. The problem is that many of these projects have not yet been industrialized, so they are not very reliable, and relying on their promises alone isn’t enough. The investment required is also high, so it’s really difficult to make a decision.

Domestic technology is still not good enough to make do with small furnaces! Has anyone heard of anyone using multi-component slurries for large tonnages?

Texaco charges based on volume; my impression is 2.4 yuan per Nm3. For Lunmin (East China University of Science and Technology), the price for counter-flow systems is 1.6 yuan – that’s roughly the right figure, it can’t be wrong.

Is the counterparty price for Yankuang (East China University of Science and Technology) 1.6 yuan? It’s unlikely, right? Is it calculated based on the effective gas content? So cheap. :o :o

He should be referring to the RMB, right! If it’s in dollars, then using Texaco is more cost-effective than four nozzles

In recent years, GE’s patent fees have been calculated at approximately $1.8 per Nm3 of effective gas, with certain preferential rates offered to existing customers. Additionally, the cost of the process package, which is $750,000, is essential, as well as the fees for expert services. The patent fees for four-nozzle systems are approximately only 1/3 to 1/5 of those for the former type, though there has been a trend of increase recently. The patent fees for Yankuang Guotai may be relatively low, partly because the project was developed at an early stage and was exploratory in nature ； At the same time, Cathay is the party holding the largest share of this technology, and therefore deserves a discount on fees.

Is the cost of the GE process package 750,000 dollars or 7.5 million dollars?

Of course it’s 750,000 dollars. How much would 7.5 million be in RMB? Who could afford that? :lol