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15

Exergoeconomics and Exergoenvironmental Analysis

George Tsatsaronis

15.1 Introduction

The objective evaluation and the improvement of an energy-conversion system from the viewpoints of thermodynamics, economics, and environmental impact require a deep understanding of

1. the real thermodynamic inefficiencies and the processes that caused them,

2. the costs associated with equipment and thermodynamic inefficiencies as well as the connection between these two important factors, and

3. possible measures that would improve the efficiency and the cost effectiveness and would reduce the environmental impact of the system being studied.

Exergoeconomics and exergoenvironmental evaluation provide methods for obtain- ing this information. Because an exergoenvironmental analysis and evaluation are conducted in complete analogy to the exergoeconomic ones, in the following sec- tions more emphasis is placed on exergoeconomics, which has been significantly developed. Exergoeconomics consists of an exergy analysis, an economic analysis, and an exergoeconomic evaluation. The term exergoeconomics was coined by the author in 1984 [1] to clearly charac- terize a combination of exergy analysis with economic analysis, when in this combina- tion the exergy-costing principle (Subsection 15.4.1) is used. In this way, a distinction can be made between exergoeconomic methods and applications on one side and other numerous applications on the other side, in which results from a thermody- namic analysis (sometimes including an exergy analysis) and an economic analysis are presented (under the term thermoeconomic analysis) but without applying the exergy-costing principle. The case in which the exergy-costing principle is not used is in general of less interest to scientists and engineers and belongs to the broader field of thermoeconomics, which is defined as any possible combination or coexis- tence of a thermodynamic analysis with an economic one, and thus also includes exergoeconomics. It should be mentioned that, before 1984, all authors were using the term thermoeconomics to indicate what we call today exergoeconomics. Even after 1984, and still today, some authors continue to use the term thermoeconomics (even when the exergy-costing principle is used) instead of the more precise term, exergoeconomics. This practice, however, contributes to some confusion in the field.

377

378

Exergoeconomics and Exergoenvironmental Analysis

The term exergoenvironmental analysis was coined in 2006 by L. Meyer and the author to characterize the new approach and to avoid confusion with other already existing terms and approaches.

15.2 Exergetic Analysis

An energy-based analysis identifies only the energy transfers to the environment as thermodynamic inefficiencies, fails to identify any inefficiency in an adiabatic process, and misleads the analyst by considering as an inefficiency the heat rejection to the environment dictated by the second law of thermodynamics. The additional concept that corrects these misconceptions is the exergy concept. Exergy is the maximum theoretical useful work (shaft work or electrical work) obtainable from an energy-conversion system as this is brought into thermodynamic equilibrium with the thermodynamic environment while interacting only with this environment [2, 3]. Alternatively, exergy is the minimum theoretical work (shaft work or electrical work) required for forming a quantity of matter from substances present in the thermodynamic environment and for bringing the matter to a specified state. Thus exergy is a measure of the deviation of the state of the system from the state of this environment. The thermodynamic environment in exergy analysis (also called reference envi- ronment) is a large thermodynamic system in equilibrium, in which the state vari- ables (T 0 , p 0 ) and the chemical potentials of the chemical components contained in it remain constant when, in a thermodynamic process, heat and materials are exchanged between another system and this environment. It is important to note that no chemical reactions can take place between chemical components contained in this environment because the latter is not in equilibrium. The thermodynamic environment is free of irreversibilities and its exergy is equal to zero. The ther- modynamic environment, for which we need to use a model, should be as close as possible to, but is not identical with, the physical environment. The thermodynamic environment is part of the surroundings of any energy-conversion system. In the following discussion, the term environment refers to the thermodynamic environ- ment when exergetic considerations are made, and to the physical environment when environmental impact is studied. In the absence of nuclear, magnetic, electrical, and surface-tension effects, the total exergy of a system E sys consists of four components: physical exergy E PH

chemical exergy E CH , kinetic exergy E KN , and potential exergy E PT [3]:

sys ,

or

E sys = E sys PH

+ E CH + E KN + E PT

E sys = m e

PH

sys

+ e CH + e KN + e PT .

(15.1a)

(15.1b)

In the preceding equation, m is the mass of the system and e refers to the mass specific exergy.

The rate of physical exergy

E PH

j

˙

associated with the jth material stream is

E PH

j

˙

=

me˙

PH = m˙ [(h j h 0 ) T 0 (s j s 0 )].

j

(15.2)

15.2 Exergetic Analysis

379

Here m˙ is the mass flow rate and e, h, and s denote the specific exergy, enthalpy, and entropy, respectively, of the material stream. The subscript 0 refers to the property values of the same mass flow rate at temperature T 0 and pressure p 0 of the environment. The physical exergy of a working fluid can be further split into its thermal (e T ) and mechanical (e M ) exergy components. This splitting may improve the accuracy of calculations and facilitates an exergoeconomic optimization:

e PH

j

= [(h j h j,X ) T 0 (s j s j,X )] p=const + [(h j,X h j,0 ) T 0 (s j,X s j,0 )] T 0 =const

e T

e M

.

(15.3)

In the preceding equation, the point X is defined at the given pressure p and the temperature T 0 of the environment. The chemical exergy is defined as the maximum useful work obtainable as the system, being at temperature T 0 and pressure p 0 , is brought into chemical equilib- rium with the environment. Thus, for calculating the chemical exergy, not only the temperature and pressure but also the chemical composition of the environment has to be specified. Because our natural environment is not in equilibrium, there is a need to model an exergy-reference environment [35]. The use of tabulated standard chemical exergy values for substances contained in the environment at standard con- ditions (T ref = 298.15 K, p ref = 1.013 bar) facilitates the calculation of exergy values. The effect of small variations in the values of T 0 and p 0 on the chemical exergy of reference substances might be neglected in practical applications. The chemical exergy of an ideal mixture of N ideal gases is

e¯ CH

mixture

ideal gases

=

N

l=1

x l e¯

CH

l

+

¯

RT 0

N

l=1

x l ln (x l ) .

(15.4)

is the standard molar chemical exergy of the lth substance, and x l is

the mole fraction of the lth substance in the system at T 0 . For solutions of liquids, the chemical exergy can be obtained with the aid of the

activity coefficients γ l :

Here e¯

CH

l

e¯

CH

solution =

N N

l=1

x l e¯

CH

l

+

¯

RT 0

l=1

x l ln(γ l x l ).

(15.5)

The standard chemical exergy of a substance not present in the environment can be calculated by considering a reversible reaction of the substance with other substances for which the values of standard chemical exergy are known [3]. The change in total exergy of a closed system undergoing a change from state 1 to state 2 (E 2 E 1 ) is caused through transfers of energy in the form of work and heat between the system and its surroundings and is given by

E 2 E 1 = E Q 12 + E W 12

E D .

(15.6)

The exergy transfer E Q 12 is associated with heat transfer Q 12 , and the exergy transfer E W 12 is associated with the transfer of energy by work W 12 .

380

Exergoeconomics and Exergoenvironmental Analysis

A part of the exergy supplied to a real energy-conversion system is destroyed because of irreversibilities within the system. Contrary to mass and energy, the exergy is not conserved in real systems. The exergy-destruction rate is equal to

(15.7)

Hence exergy destruction can be calculated either from the entropy generation [Eq. (15.7)] by use of an entropy balance or directly from an exergy balance [Eq. (15.6)]. The term E D,k is equal to zero only in ideal processes. Thermodynamic processes are governed by the laws of conservation of mass and energy. These conservation laws state that the total mass and total energy can be neither created nor destroyed in a process. However, exergy is not generally conserved but is destroyed by irreversibilities within a system. Furthermore, exergy is lost when the energy associated with a material or energy stream is rejected to the environment. An exergy balance for the kth component at steady-state conditions can be written as

(15.8)

E ˙ P,k is the exergy of product (the desired result, expressed in exergy terms,

achieved by the kth component), and

E ˙ F,k is the exergy of fuel (the exergetic

where

E D,k = T 0 S gen,k = T 0 m k s gen,k .

˙

E F,k =

˙

˙

E P,k +

E D,k ,

resources expended in the kth component to generate the exergy of product). Here it is assumed that the system boundaries used for all exergy balances are

at the temperature T 0 of the environment and therefore there are no exergy losses

associated with a component [6]. Exergy losses ( E L ) appear only at the level of the

overall system (subscript tot), for which the exergy balance becomes

˙

˙

E F,tot =

˙

E P,tot +

n

k=1

˙

E D,k +

˙

E L,tot .

(15.9)

The following two dimensionless variables are used for the conventional exer- getic evaluation of the kth component of a system [3, 6]:

Exergetic efficiency,

exergy-destruction ratio,

ε k =

˙

E

P,k

˙

E

F,k

y k =

= 1

˙

E

D,k

˙

E

F,k

˙

E D,k

˙

E

F,tot .

;

(15.10)

(15.11)

The exergetic efficiency of the overall system is

ε tot =

˙

E

P,tot

˙

E

F,tot

= 1

n

k=1

y k

˙

E

L,tot

˙

E

F,tot .

(15.12)

For the distinction between productive components, for which an exergetic effi- ciency is calculated, and dissipative components, for which no meaningful efficiency can be defined, see [7].

15.3 A Compression Refrigeration Machine as an Example

381

Figure 15.1. Schematic refrigeration machine.

of

a

compression

T CD 3 condenser 1 2 7 secondary 6 working fluid throttling valve secondary 8
T CD
3 condenser
1
2
7
secondary
6
working fluid
throttling
valve
secondary
8
working fluid
W
9
4
compressor
evaporator
T EV

The exergy concept complements and enhances an energetic analysis by calcu- lating

1. the true thermodynamic value of an energy carrier,

2. the real thermodynamic inefficiencies in a system, and

3. variables that unambiguously characterize the performance of a system (kth component or overall system) from the thermodynamic viewpoint.

The real thermodynamic inefficiencies in an energy-conversion system are related to exergy destruction and exergy loss. All real processes are irreversible because of effects such as chemical reaction, heat transfer through a finite tem- perature difference, mixing of matter at different compositions, temperatures and pressure, unrestrained expansion, and friction. An exergy analysis identifies the sys- tem components with the highest thermodynamic inefficiencies and the processes that cause them.

15.3 A Compression Refrigeration Machine as an Example

The simple vapor-compression refrigeration machine shown in Fig. 15.1 is used here as an example for demonstrating the application of the methods discussed in this

chapter. This machine consists of a compressor and motor, (CM), a condenser (CD), a throttling valve (TV), and an evaporator (EV). Ammonia is the primary working fluid for the refrigeration machine, whereas water is used as the secondary working fluid in the condenser, and air is the secondary working fluid in the evaporator.

˙

Q cold = 50 kW, the exergy rate

The product from the overall system is the cold rate

of which is kept constant in the analysis:

efficiency of the compressor is assumed to be η CM = 0.85. For simplicity, pressure drops are neglected in all heat exchangers. Table 15.1 shows the material, mass flow rate, temperature, pressure, specific enthalpy, specific entropy, and specific physical exergy of all streams of matter shown in Fig. 15.1. The exergy destruction within each component of the refrigeration

machine is calculated with Eq. (15.8):

E 9 E 8 = const. The isentropic

˙

E P,tot =

˙

˙

˙

E D,CM =

W CM ( E 2 E 1 ),

˙

˙

˙

˙

E D,CD = (

E ˙ 2 E 3 ) ( E 7 E 6 )

˙

˙

˙

˙

E D,EV = (

˙

E

D,TV = (

E ˙ 4 E 1 ) ( E 9 E 8 ),

˙

˙

˙

M

˙

E

3

˙

E

M

4

) ( E

˙

T

4

˙

E

T

3

) = E 3 E 4 .

˙

˙

382

Exergoeconomics and Exergoenvironmental Analysis

Table 15.1. Thermodynamic data for the vapor-compression refrigeration machine under real operating conditions

 

Material

m˙

T ( C)

p

h

s

e PH

c PH

Stream

stream

(kg/s)

(bars)

(kJ/kg)

(kJ/kg K)

(kJ/kg)

(/GJ)

1

Ammonia

0.0454

15

2.36

1444

5.827

126.3

66.69

2

Ammonia

0.0454

115

11.67

1716

5.934

366.8

66.43

3

Ammonia

0.0454

30

11.67

341.6

1.488

296.1

66.30

4

Ammonia

0.0454

15

2.36

341.6

1.557

275.8

71.35

W

27.78

0 a 6 = 0 a

Ammonia

20

1

1536

6.572

0

Water

2.98

20

1

83.93

0.296

0

0

7

Water

2.98

25

1

104.8

0.367

0.176

580.6

8

Air

9.94

0

1

273.3

6.776

0.719

0

9

Air

9.94

5

1

268.3

6.757

1.138

84.73

0 a

Air

20

1

293.4

6.847

0

a 0 is the reference point for calculating the exergy value of each material stream.

Table 15.2 shows the exergy rates associated with fuel, product, and exergy- destruction as well as the exergetic efficiency and the exergy-destruction ratio for each component and for the overall refrigeration machine. The results in Table 15.2 indicate that the condenser and the evaporator have the highest exergy-destruction ratios and the lowest exergetic efficiencies. According to these results, the efforts to improve the thermodynamic efficiency of the refrigeration machine should focus on these two components.

15.4 Economic Analysis

The cost of the final products is one of the most important factors affecting the selection of an option for the design or operation of an energy-conversion system. The cost of a product is the amount of money paid to acquire or produce it. The market price of a product is, in general, affected not only by the production cost of the product and the desired profit but also by other factors, such as demand, supply, competition, regulation, and subsidies. Exergoeconomics deals with costs. The annual total revenue requirement (total product cost) for a system is the revenue that must be collected in a given year through the sale of all products gener- ated by this system to compensate the system operating company for all expenditures

Table 15.2. Conventional exergetic analysis for the vapor-compression refrigeration machine

Component

˙

E F,k (kW)

˙

E P,k (kW)

˙

E D,k (kW)

ε k (%)

y k (%)

CM

12.340

10.912

1.428

88.43

11.57

CD

3.206

0.525

2.681

16.39

21.73

TV

7.953

7.028

0.925

88.37

7.50

EV

6.778

4.158

2.620

61.35

21.24

Overall system

12.340

4.158

7.653

33.70

62.0

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