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Understanding steam costs for energy conservation projects

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  • Sun, Li
  • Doyle, Stephen
  • Smith, Robin

Abstract

The evaluation of energy conservation projects involving steam savings requires that the cost of steam be known. While it is straightforward in principle to calculate the heat load and steam flowrate corresponding to an energy conservation project, it is much less straightforward to calculate the cost of steam saved for the economic evaluation of projects. Various simplified methods for steam costing used in practice can be grossly misleading and lead to incorrect evaluation of the economics of energy conservation projects. This paper demonstrates the complexity of costing steam for complex utility systems. It shows that true steam costs can only be evaluated by an optimization model of the whole utility system. Two plots of marginal steam cost profiles and cumulative cost profiles for different steam savings are developed to help understand the cost reduction of steam savings.

Suggested Citation

  • Sun, Li & Doyle, Stephen & Smith, Robin, 2016. "Understanding steam costs for energy conservation projects," Applied Energy, Elsevier, vol. 161(C), pages 647-655.
    • Handle: RePEc:eee:appene:v:161:y:2016:i:c:p:647-655
    DOI: 10.1016/j.apenergy.2015.09.046
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    References listed on IDEAS

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    1. Sun, Li & Doyle, Steve & Smith, Robin, 2015. "Heat recovery and power targeting in utility systems," Energy, Elsevier, vol. 84(C), pages 196-206.
    2. Voll, Philip & Jennings, Mark & Hennen, Maike & Shah, Nilay & Bardow, André, 2015. "The optimum is not enough: A near-optimal solution paradigm for energy systems synthesis," Energy, Elsevier, vol. 82(C), pages 446-456.
    3. Fuller, Dan A., 1991. "Alternative scale measures and the behaviour of average costs in steam electric generation," Energy Economics, Elsevier, vol. 13(1), pages 61-68, January.
    4. Voll, Philip & Klaffke, Carsten & Hennen, Maike & Bardow, André, 2013. "Automated superstructure-based synthesis and optimization of distributed energy supply systems," Energy, Elsevier, vol. 50(C), pages 374-388.
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    Cited by:

    1. Pérez-Uresti, Salvador I. & Martín, Mariano & Jiménez-Gutiérrez, Arturo, 2019. "Estimation of renewable-based steam costs," Applied Energy, Elsevier, vol. 250(C), pages 1120-1131.
    2. Ron-Hendrik Hechelmann & Jan-Peter Seevers & Alexander Otte & Jan Sponer & Matthias Stark, 2020. "Renewable Energy Integration for Steam Supply of Industrial Processes—A Food Processing Case Study," Energies, MDPI, vol. 13(10), pages 1-20, May.
    3. Subin Jung & Hyojin Jung & Yuchan Ahn, 2022. "Optimal Economic–Environmental Design of Heat Exchanger Network in Naphtha Cracking Center Considering Fuel Type and CO 2 Emissions," Energies, MDPI, vol. 15(24), pages 1-14, December.
    4. Rui, Zhenhua & Cui, Kehang & Wang, Xiaoqing & Chun, Jung-Hoon & Li, Yuwei & Zhang, Zhien & Lu, Jun & Chen, Gang & Zhou, Xiyu & Patil, Shirish, 2018. "A comprehensive investigation on performance of oil and gas development in Nigeria: Technical and non-technical analyses," Energy, Elsevier, vol. 158(C), pages 666-680.

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