iii Plant Engineers and Managers Guide to Energy Conservation Eighth Edition Albert Thumann, P.E., C.E.M. MARCEL DEKKER, INC. New York and Basel THE FAIRMONT PRESS, INC. Lilburn, Georgia Copyright © 2002 by The Fairmont Press. Library of Congress Cataloging-in-Publication Data Thumann, Albert. Plant engineers and managers guide to energy conservation/ Albert Thumann 8th ed. p cm Includes bibliographical references and index. ISBN 0-88173-384-9 (electronic) 1. Factories Energy conservation Handbooks, manual, etc. I. Title. TJ163.5.F3 T48 2001 658.2'6 dc21 2001045119 Plant engineers and managers guide to energy conservation by Albert Thumann ©2002 by The Fairmont Press. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher. Published by The Fairmont Press, Inc. 700 Indian Trail, Lilburn, GA 30047 tel: 770-925-9388; fax: 770-381-9865 http://www.fairmontpress.com Distributed by Marcel Dekker, Inc. 270 Madison Avenue, New York, NY 10016 tel: 212-696-9000; fax: 212-685-4540 http://www.dekker.com Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 0-88173-384-9 (The Fairmont Press, Inc.) 0-8247-0925-X (Marcel Dekker, Inc.) While every effort is made to provide dependable information, the publisher, authors, and editors cannot be held responsible for any errors or omissions. Copyright © 2002 by The Fairmont Press. THIS BOOK IS DEDICATED TO THE ENGINEERS, ARCHITECTS, AND DESIGNERS WHO ARE IMPROVING ENERGY EFFICIENCY OF OPERATIONS IN A COST -EFFECTIVE MANNER. Copyright © 2002 by The Fairmont Press. Contents Chapter 1 THE ROLE OF THE PLANT ENGINEER IN ENERGY MANAGEMENT Survey Of What Industry Is Doing, Results of Industrial Energy Utilization Programs, Organization For Energy Utilization, What Is An Industrial Energy Audit?, The Energy Utilization Program, Energy Accounting, The Language Of The Energy Manager Chapter 2 ENERGY ECONOMIC DECISION MAKING Life Cycle Costing, Using The Payback Period Method, Using Life Cycle Costing, The Time Value Of Money, Investment Decision- Making, The Job Simulation Experience, Making Decisions For Alternate Investments, Depreciation, Tax Reform Act, Computer Analysis Chapter 3 THE FACILITY SURVEY Comparing Catalogue Data With Actual Performance, Infrared Equipment, Measuring Electrical System Performance, Tempera- ture Measurements, Measuring Combustion Systems, Measuring Heating, Ventilation And Air-Conditioning (HVAC) System Per- formance Chapter 4 ELECTRICAL SYSTEM OPTIMIZATION Applying Proven Techniques To Reduce The Electrical Bill, Why The Plant Manager Should Understand The Electric Rate Struc- ture, Electrical Rate Tariff, Power Basics—The Key To Electrical Energy Reduction, Relationships Between Power, Voltage, And Current, What Are The Advantages Of Power Factor Correction?, Efficient Motors, Synchronous Motors And Power Factor Correc- tion, What Method Should Be Used To Improve The Plant Power Factor?, What Is Load Management?, What Have Been Some Of The Results Of Load Management?, Application Of Automatic Load Shedding, How Does Load Demand Control Work?, The Confusion Over Energy Management Systems, Lighting Basics— The Key To Reducing Lighting Wastes, Lighting Illumination Re- Copyright © 2002 by The Fairmont Press. quirements, The Efficient Use of Lamps, Control Equipment, Solid State Ballasts Chapter 5 UTILITY AND PROCESS SYSTEM OPTIMIZATION Basis Of Thermodynamics, The Carnot Cycle, Use Of The Specific Heat Concept, Practical Applications For Energy Conservation, Furnace Efficiency, Steam Tracing, Heat Recovery, The Mollier Diagram, Steam Generation Using Waste Heat Recovery, Pumps And Piping Systems, Distillation Columns, Incorporation Of En- ergy Utilization In Procurement Specifications Chapter 6 HEAT TRANSFER The Importance Of Understanding The Principles Of Heat Trans- fer, Three Ways Heat Is Transferred, How To Estimate The Heat Loss Of A Vessel Or Tank, How To Estimate The Heat Loss Of Piping And Flat Surfaces Chapter 7 REDUCING BUILDING ENERGY LOSSES Energy Losses Due To Heat Loss And Heat Gain, Conductivity Through Building Materials, The Effect Of Sunlight, Window Treatments, Building Design Considerations Chapter 8 HEATING, VENTILATION AND AIR-CONDITIONING SYSTEM OPTIMIZATION Efficient Use Of Heating And Cooling Equipment Saves Dollars, Applying The Heat Pump To Save Energy, Efficient Applications Of Refrigeration Equipment, Basics Of Air Conditioning System Design For Energy Conservation, Applying Variable Air Volume Systems, Applying The Economizer Cycle, Applying Heat Recov- ery, Cool Storage System Performance, Thermal Storage Control Systems, The Ventilation Audit, Energy Analysis Utilizing Simu- lation Programs, Test And Balance Considerations Chapter 9 COGENERATION: THEORY AND PRACTICE Definition of "Cogeneration," Components of a Cogeneration Sys- tem, An Overview of Cogeneration Theory, Application of the Co- generation Constant, Applicable Systems, Basic Thermodynamic Cycles, Detailed Feasibility Evaluation Copyright © 2002 by The Fairmont Press. Chapter 10 ESTABLISHING A MAINTENANCE PROGRAM FOR PLANT EFFICIENCY AND ENERGY SAVINGS Good Maintenance Saves $, What Is The Effectiveness Of Most Maintenance Programs?, How To Turn Around The Maintenance Program, Stop Leaks And Save, Properly Operating Steam Traps Save Energy, Excess Air Considerations, Dirt And Lamp Lumen Depreciation Can Reduce Lighting Levels By 50%, Summary Chapter 11 MANAGING AN EFFECTIVE ENERGY CONSERVATION PROGRAM Organizing For Energy Conservation, Top Management Commit- ment, What To Consider When Establishing Energy Conservation Objectives, Using The Critical Path Schedule Of Energy Conserva- tion Activities, Electrical Scheduling Of Plant Activities, An Effec- tive Maintenance Program, Continuous Conservation Monitoring, Are Outside Consultants And Contractors Encouraged To Save Energy By Design?, Encouraging The Creative Process, Energy Emergency And Contingency Planning Chapter 12 INDUSTRIAL POWER MONITORING AND CONTROL Evolution of Power Monitoring and Control Systems, First Gen- eration PC Based Systems, Second Generation Systems, Commer- cial Technology Today, Systems Architecture, Survey of PM&C Systems, Vendor Selection Chapter 13 RELIABLE AND ECONOMIC NATURAL GAS DISTRIBUTED GENERATION TECHNOLOGIES Elements of DG, Technologies, Market Potential Chapter 14 FINANCING ENERGY EFFICIENCY PROJECTS Financing Alternatives, General Obligation Bond, Municipal Lease, Commercial Loan, Taxable Lease Chapter 15 STEAM SYSTEM OPTIMIZATION: A CASE STUDY Savings Opportunities Copyright © 2002 by The Fairmont Press. Chapter 16 COST CONTAINMENT DESIGN FOR COMMERCIAL GEOTHERMAL HEAT PUMPS Why GHPs? Why Now?, Design Methods to Realize Advantages, Software, Challenges in the US Market Chapter 17 FUNDAMENTALS OF ENERGY OUTSOURCING What is Outsourcing?, Energy Outsourcing, Planning Steps, What to Outsource, Barriers to the Success of Outsourcing, Characteristics of an Energy Management Firm, Chapter 18 ECONOMIC EVALUATIONS FOR POWER QUALITY SOLUTIONS The Principle Investigation, Determining the Phenomenon, Choosing the Right Equipment, Economic Analysis, Graphical Analysis, A More Direct Approach Chapter 19 PURCHASING STRATEGIES FOR ELECTRICITY AT&T vs. MCI: A Paradigm, Factors Impacting Power Prices, Three General Relationships, Who Offers These Options?, The College of Power Knowledge Chapter 20 POWER QUALITY CASE STUDIES Case Study 1, Case Study 2 Copyright © 2002 by The Fairmont Press. Preface In the year 2000 energy again made the headlines. Energy manage- ment programs that became dormant were revitalized. Companies again became aware that the energy problems of the 1970s, 1980s and 1990s did not go away. The California “power crisis” indeed could spread to other states and not only impact a company’s profitability but could also put many out of business. The first edition of Plant Engineers and Managers Guide was written in 1977 and it was the first book to address the need for industrial energy management. The new edition of this book includes new technologies not avail- able to the facility manager 25 years ago. Distributed generation, geoexchange and gas cooling technologies have emerged as new options available. Deregulation of the utility industry and purchasing power directly emerged only a few years ago as a new energy strategy. The role of the energy manager is ever changing. If one lesson can be learned from the past it is that a comprehensive energy conservation program is crucial for every company. Today the stakes are higher than ever and the plant engineer's and manager’s roles in energy have never been greater. Albert Thumann Copyright © 2002 by The Fairmont Press. Introduction Plant engineers and managers of the 21st century are expected to apply new technologies, purchase energy at the best price and keep their plants running despite power outages. It is clear that energy conservation is part of every plant engineer's and manager's job. It is also clear that applying this technology has significant rewards. In a recent survey conducted by the Association of Energy Engi- neers, 22.2% of members surveyed have reduced accumulated costs by $5 million or more. The potential for additional savings is still great. Thirty- six percent of those surveyed indicated further savings amounting to over 10% were possible. As we embark on the new century it has become clear that global competitiveness and energy conservation go hand in hand. Energy con- servation means good business. Energy conservation means eliminating waste and insuring operations are more productive. Energy conservation means improving the quality of industrial facility management and pre- venting pollution. Energy conservation means improving the environ- ment through pollution prevention, and minimizing global warming trends. The role of the energy manager is ever changing. Today’s energy manager must understand how to negotiate the best electric and gas contract as well as understand how to incorporate new energy-efficient technologies into plant operations. The energy manager must have a keen understanding of all aspects of plant operations from purchasing prac- tices to organizational structure. The energy manager must seek out new financing opportunities to fund energy-efficient projects. The challenge has always been great. The stakes, however, are higher than ever. Copyright © 2002 by The Fairmont Press. The Role of the Plant Engineer in Energy Management 1 1 The Role of the Plant Engineer In Energy Management Energy management is now considered part of every plant engineer’s job. Today the plant engineer needs to keep abreast of chang- ing energy factors which must be incorporated into the overall energy management program. The accomplishments of energy management have indeed been outstanding. In a 1998 opinion survey conducted by the Association of Energy Engineers, 22.2 percent of those responding indicated that they have saved their companies at least five million dollars in accumulated energy costs since being employed. Eighteen percent had slashed energy costs 26 percent or more since the program was started. Safety, maintenance and now energy management are some of the areas in which a plant engineer is expected to be knowledgeable. The cook book and low cost-no cost energy conservation measures which were emphasized in the 1970s have been replaced with a more sophis- ticated approach. The plant engineer of the 2000s must have a keen understanding of both the technical and managerial aspects of energy management in order to insure its success. When oil prices dropped in 1986 it was an opportunity in many plants to switch back to oil. As electric prices es- calated it was an opportunity for many plants to install cogeneration facilities. In the late 1990s deregulation took hold, opening up new op- portunities in energy purchasing. Thus the energy management area is ever changing. Energy management or energy utilization has replaced the simplis- tic house keeping measures approach. The intent of this book is not to make you an expert in each subject, Copyright © 2002 by The Fairmont Press. [...]... thousands to two decimal places Figure 1-4 Carborundum energy accounting and analysis system data input form Copyright © 2002 by The Fairmont Press 12 Plant Engineers and Managers Guide to Energy Conservation THE LANGUAGE OF THE ENERGY MANAGER In order to communicate energy conservation goals and to analyze the literature in the field, it is important to understand the language of the energy manager and. .. Determine energy uses and losses; refer to checklist, Table 1-1 2 Implement actions for energy conservation, refer to checklist, Table 1-2 3 Continue to monitor energy conservation efforts; refer to checklist, Table 1-3 Determine Energy Uses and Losses Probably the most important aspect of an ongoing energy utilization program is to make individuals “accountable” for energy use Unfortunately, many energy managers. .. difficult to economically justify “root metering.” The savings as a result of increased accountability are difficult to measure Copyright © 2002 by The Fairmont Press 4 Plant Engineers and Managers Guide to Energy Conservation Table 1-1 Checklist to determine energy uses and losses ———————————————————————————————— SURVEY ENERGY USES AND LOSSES A Conduct first survey aimed at identifying energy wastes... Establishes efficiency standards for commercial heating and airconditioning equipment, electric motors, and lamps • Gives private sector an opportunity to establish voluntary effi- Copyright © 2002 by The Fairmont Press 16 Plant Engineers and Managers Guide to Energy Conservation ciency information/labeling programs for windows, office equipment and luminaires, or the Department of Energy will establish... producers from federal and state utility regulations and their associated reporting requirements Copyright © 2002 by The Fairmont Press 22 Plant Engineers and Managers Guide to Energy Conservation In order to assure a facility the benefits of PURPA, a cogenerator must become a Qualifying Facility To achieve Qualifying Status, a cogenerator must generate electricity and useful thermal energy from a single... provide criteria for energy- efficient design and methods for determining compliance with these criteria; (c) provide sound guidance for energy- efficient design Copyright © 2002 by The Fairmont Press 18 Plant Engineers and Managers Guide to Energy Conservation In addition to recognizing advances in the performance of various components and equipment, the Standard encourages innovative energy- conserving...2 Plant Engineers and Managers Guide to Energy Conservation but to illustrate how the overall pieces fit together Each chapter illustrates the various pieces that comprise an industrial energy utilization program The energy manager is analogous to a system engineer Only when the total picture is viewed will the solution become obvious Of course, it should be noted that the energy manager... standards and use the MEC as a minimum baseline for upgrading their energy standards for new housing • The federal government should help states upgrade their energy standards The Department of Energy should increase its efforts to provide technical assistance to states, and it should do further studies of the benefit of various model-building energy standards and codes • Model Energy Code standards... Fairmont Press 20 Plant Engineers and Managers Guide to Energy Conservation technologies include absorption and ammonia refrigeration (established technologies since the early 1900s), as well as desiccant cooling Taxes on CFCs originally took effect January 1, 1990 The Energy Policy Act of 1992 revised and further increased the excise tax effective January 1, 1993 Also to consider in ASHRAE Guidelines 3-1990—Reducing... as to who is responsible for which area or process and where “root metering” would have the biggest impact Implement Actions for Energy Conservation Once energy usage is known potential energy conservation projects can be identified Each project will be recommended on the basis of the annual energy savings projected and the initial investment required Continue to Monitor Energy Conservation Efforts Energy . Press. 8 Plant Engineers and Managers Guide to Energy Conservation Figure 1-2. Energy profile by function. Figure 1-1. Energy use and cost profile. ENERGY. difficult to measure. Copyright © 2002 by The Fairmont Press. 4 Plant Engineers and Managers Guide to Energy Conservation Table 1-1. Checklist to determine energy