Definition:
The total upfront investment required to design, purchase, install, and commission a system or facility.
Key Components:
- Equipment and materials
- Engineering and design
- Construction and commissioning
Use Cases/Industries:
- Infrastructure development
- Power generation projects
- Manufacturing expansion
Advantages:
- One-time expenditure
- Often predictable and plannable
Challenges:
- High upfront barrier
- Susceptible to overruns
Related Terms:
Operating Cost, CAPEX, Total Installed Cost
Example:
The capital cost of a hydrogen fueling station includes compression, storage tanks, and dispenser installation.
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Synonyms:
Initial Investment, CAPEX, Front-End Cost
