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Consulting engineers routinely recommend chiller technologies to clients who are seeking the
lowest annual energy operating costs to manage their facilities. Most often, evaluations are
made comparing gas/steam absorption machines vs. rotary/screw/centrifugal electric-driven
chillers. Naturally, first cost, reliability, maintenance, and equipment preferences are important
factors during their assessment. However, annual operating costs are most often the primary
consideration in their final decision.
The procedure that follows demonstrates a method to determine the magnitude of annual
operating cost differentials for gas and steam vs. electric.
1. Determine the tonnage and select the type of electric chiller and the type of absorption chiller
to be used in the comparison.
2. Calculate the operating cost factor (OCF) based on 1,000 annual hours of the equipment
running at full load:
3. Once the OFC is known, multiply it by the energy cost ($/therm - $/kW $11,000 lb of steam)
to ascertain the annual operating energy cost (AOEC):
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Energy costs for central steam plants are usually in the range $6.00 to $8.00/1,000 lb of
steam. The method used to determine the energy costs can be best shown by the following
example:
Assume you are paying $0.70/gal for fuel oil or $0.5/therm for natural gas (142,500 Btu/gal at
$0.70 gal or 100,000 Btu at $0.5/therm.) The cost to generate 1,000 lb of steam would be:
For gas:
For gas:
Naturally, this approximate cost of $6.00/1,000 lb is just the fuel energy cost to produce the
1,000 lb of steam. Chemical treatment, operating personnel, and electrical power to equipment
are not included in these costs.
Energy costs for electric are computed from the monthly utility bills in which the total costs
(electric kWh consumption, demand charges, and fuel surcharges) are divided by the total
monthly kWh consumption:
$/kWh= Monthly kWh cost demand charges and fuel surcharges/Total monthly kWh consumed
Energy costs for gas are also computed from the monthly utility bill in which the total of all
monthly charges is divided by the number of therms consumed ($/therm).
1. Assume you have an existing boiler plant capable of generating 100 psig at an energy cost of
$6.00/1,000 lb or 12 psig steam at an energy cost of $6.48/1,000 lb.
2. Neglecting for this example first cost, equipment footprint size, maintenance, reliability, and
equipment preferences, determine the lowest operating cost for the following 300-ton water-
cooled chillers. The abbreviations are defined as: single-effect, low-pressure steam absorption
(SELPSA); double-effect, high-pressure steam absorption (DEHPSA); double-effect, gas
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= 5,400,000 lb of steam.
= 4,110,000 lb of steam.
= 36,000 therms.
= 174,000 kW.
4. Determine the annual operating energy cost (AOEC) for the SELPSA and DELPSA.
AOEC = $34,992
AOEC = $24,660
5. Determine the energy cost for gas and electric that would equal the annual operating cost of
the DEHPSA.
FIGURE 1
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Conversion calculation to
determine the
efficiency factor (EF)
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0.72 kW/ton
0.64 kW/ton
0.63 kW/ton
0.58 kW/ton
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