Author : Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® 
Revision: November 9, 2014
TABLE OF CONTENTS 
Page 1 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
Author: Rufran C. Frago, P....
3.6. BOILER FEEDWATER COST (FIGURE 10) ......................................................................................
ABOUT THE AUTHOR 
Page 3 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
Author: Rufran C. Frago, P. ...
TABLE OF FIGURES 
Figure 1 - Turbine Power at Minimum Load Mass Flow Diagram ................................................
1. ABSTRACT 
As a Cost Engineer, if there is a choice between two production methods, the favored method 
would be the one...
2. INTRODUCTION 
It was always a challenge to bring together an easy method of calculating a Steam Power Plant 
operationa...
compare gains and losses on the same footing. Regardless of whether the steam power plant is 
supporting the public electr...
Shown on Figure 5 is a tabulation of XYZ power consumption from its external source 
covering the period of January 2007 t...
Page 9 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
Author: Rufran C. Frago, P. Eng., PMP®, CCP, P...
3.3. SCENARIO 1: IN-HOUSE TURBINE POWER AT MINIMUM LOAD 
What is minimum load anyway? It is defined as the load required t...
b) Feedwater Cost 
= 11 CuM/HR x 0.2624 C$/cuM 
= 2.89 C$/HR 
Note: See calculated unit cost for feedwater (Section 3.7.3)...
b) Cost of Steam per KCal 
42.40 C$/HR 
= 
5,871,096 KCal/HR 
= 0.000007 C$/KCal 
c) Cost of Superheated (SH) Steam 
= 0.0...
3.3.3. COST OF IN-HOUSE TURBINE POWER AT MINIMUM LOAD (FIGURE 1) 
a) Low Pressure (SL) Steam to Deaerator 
= m3 kg/HR 
= 2...
e) Cost of In-house Turbine Power at minimum load 
33.55 kg/HR 
= 
627 KW 
= 0.0535 C$/KW-HR 
Please see Figure 1 to under...
Generally, the unit cost of power coming from outside is usually relatively more expensive than 
the unit cost of power we...
3.4.2. COST OF STEAM (VARIOUS WORKING PRESSURES) AT FULL LOAD 
a) Total Heat required per hour, (Qt) 
1) SH Steam 
= m kg/...
b) Total Cost of Steam per Kcal (Superheated and Saturated) 
90.6 C$/HR Note: see Section 3.4.1 
= 
12,203,515 KCal/HR 
= ...
f) Cost of Low Pressure (SL) Steam 
= 0.000007 C$/KCal x 568.95 KCal/Kg 
= 0.0042 C$/Kg 
3.4.3. COST OF IN-HOUSE TURBINE P...
d) Superheated Steam (SH) to Turbine; m1 SH 
= m SH Kg/HR - 3151 Kg/HR 
= 15,542 Kg/HR - 3151 Kg/HR 
= 12,391 Kg/HR 
e) St...
i) Cost based on Gross Turbine Output 
33.10 C$/HR 
Page 20 of 43 Unit Cost Approach to Estimating Operational Materials B...
c) Cost based on Turbine less Turbine and Boiler Auxiliaries 
Given: (From Operation Manual) 
DESCRIPTION POWER 
Turbine A...
3.5. UTILITY WATER COST ( 
Page 22 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
Author: Rufran C. ...
3.6. FIGURE 9) 
The plant’s utility water supplies the feed for the soft water processing whose output is required 
by the...
1.72 C$/HR 
= 
70 cuM/HR 
= 0.0246 C$/cuM 
b) Based on Turbine 
0.0277 C$/KW-HR 
x 28 KW 
= 
70 cuM/HR 
0.78 C$/HR 
= 
70 ...
3.7. BOILER FEEDWATER COST (FIGURE 10) 
To proceed with the Boiler’s Feedwater operating cost calculation, we need to unde...
b) Total Cost of Demi-water (based on External Power) 
Utility Water 0.0246 C$/cuM 
(Figure 9 - Utility Water 
(Given Data...
3.7.3. COST OF BOILER FEEDWATER (BASED ON EXTERNAL POWER) 
DESCRIPTION UNIT RATE 
50% Total Cost of Demi-Water 
0.2234 C$/...
Page 28 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
Author: Rufran C. Frago, P. Eng., PMP®, CCP, ...
Figure 3 – Pressure Versus Enthalpy Diagram 
Page 29 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
...
Figure 4 – Enthalpy Versus Entropy Diagram 
Page 30 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
A...
Figure 5 - External Power Billing Record 
Historical XYZ Corporation Billing Record (External Power) 
January 2007 to Sept...
Figure 6 - Chemicals Consumption Summary 
XYZ Chemical Consumption Summary 
January 2007 to September 2007 
Page 32 of 43 ...
9 N7350 
5.8976 649.95 
72.22 866.60 5,110.84 5,621.93 
10 N39L/SN 
4.1397 190.00 
21.11 253.33 1,048.72 1,153.59 
11 N321...
Figure 7 - Turbine Power at Minimum Load (Given Data) 
a) Heavy Fuel Oil (specific cost) 0.0589 C$/Li 
b) Turbine Load 
DE...
d) Fuel Consumption unit rate 671 Li/HR 
e) Boiler Feedwater Consumption 
(BFW) 
11 CuM/HR 
Page 35 of 43 Unit Cost Approa...
Figure 8 - Turbine Power at Full Load (Given Data) 
a) Heavy Fuel Oil (specific cost) 0.0589 C$/Li 
b) Turbine Load 1630 K...
identified from operation records and manuals. The parameters were then plotted on the 
p-h and h-s diagrams to find the e...
Figure 9 - Utility Water (Given Data) 
a) Utility Water Flow rate 70 cuM/HR (Comes from Operating Manual) 
b) Cost of Exte...
5. CONCLUSION 
As can be seen from the presentation, we’ve managed to establish some of the main components 
required in c...
The unit calculation we gathered can now be used for our Annual Operational Budget. This is the 
reason why the title of t...
A more comprehensive and detailed report on various process materials surrounding this subject is 
good to have in the fut...
6. BIBLIOGRAPHY 
BoilerBurner. (2014). Water Softener. Retrieved from www.cleanboiler.org: 
http://www.cleanboiler.org/Eff...
Page 43 of 43 Unit Cost Approach to Estimating Operational Materials Budget 
Author: Rufran C. Frago, P. Eng., PMP®, CCP, ...
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110614-Unit Cost Approach to Estimating Operational Materials Budget

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As a Cost Engineer, if there is a choice between two production methods, the favored method would be the one involving the lowest total cost. In spite of that, in order to effectively make the selection on this basis, it is fundamental that operational unit cost benchmarks be calculated and identified.

This short dissertation on the Unit Cost Approach to Estimating Operational Materials Budget is geared to introduce the unit cost method of obtaining the total material (or process) cost applied to a Steam Power Plant, and be made a template for similar production budget calculations of any similar installation.

I hope the readers will find this write up useful. Your comments are welcome.

Cheers,

Rufran C. Frago, P.Eng, PMP®, CCP, PMI-RMP®

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  • As a Cost Engineer, if there is a choice between two production methods, the favored method would be the one involving the lowest total cost. In order to effectively make the selection on this basis, operational unit cost benchmarks must be calculated and identified. This dissertation will introduce the unit cost method of obtaining the total material (or process) cost applied to a Steam Power Plant or any similar installation. We will refer to process media in this paper as materials.

    Cost saving questions such as: if we use our in-house Turbine power for nine months instead of an external third party power, how much can we save? How about if we use it for a year? We can also focus on loss questions such as: We have a big leak on our LP steam line since yesterday. What is the dollar amount of what we'll be losing if this stays like this for a week before getting fixed? Questions similar to the aforementioned are common and as a Plant or Cost Engineer, we should be able to give a prompt response and a sound basis on where our answers came from.
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110614-Unit Cost Approach to Estimating Operational Materials Budget

  1. 1. Author : Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® Revision: November 9, 2014
  2. 2. TABLE OF CONTENTS Page 1 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® PAGES TABLE OF CONTENTS ......................................................................................................................... 1 ABOUT THE AUTHOR ......................................................................................................................... 3 TABLE OF FIGURES ............................................................................................................................. 4 DISCLAIMER ......................................................................................................................................... 4 1. ABSTRACT .................................................................................................................................. 5 2. INTRODUCTION ......................................................................................................................... 6 3. EXTERNAL POWER ................................................................................................................... 7 3.1.1. CALCULATION OF THE AVERAGE EXTERNAL POWER COST ............................................................ 8 3.2. STEAM POWER PLANT’S CHEMICAL CONSUMPTION ....................................................................... 9 3.3. SCENARIO 1: IN-HOUSE TURBINE POWER AT MINIMUM LOAD ...................................................... 10 3.3.1. UNIT COST TO OPERATE THE IN-HOUSE BOILER AT MINIMUM LOAD ............................................ 10 3.3.2. COST STEAM (VARIOUS WORKING PRESSURES) AT MINIMUM LOAD .............................................. 11 3.3.3. COST OF IN-HOUSE TURBINE POWER AT MINIMUM LOAD (FIGURE 1) ............................................ 13 3.3.4. DAILY FUEL CONSUMPTION AT MINIMUM LOAD ............................................................................ 14 3.4. SCENARIO 2, IN-HOUSE TURBINE POWER AT FULL LOAD ............................................................. 14 3.4.1. UNIT COST TO OPERATE THE IN-HOUSE BOILER AT FULL LOAD ................................................... 15 3.4.2. COST OF STEAM (VARIOUS WORKING PRESSURES) AT FULL LOAD ................................................ 16 3.4.3. COST OF IN-HOUSE TURBINE POWER AT FULL LOAD (FIGURE 2) .................................................. 18 3.4.4. DAILY FUEL CONSUMPTION AT FULL LOAD ................................................................................... 21 3.5. UTILITY WATER COST (FIGURE 9) ................................................................................................. 22
  3. 3. 3.6. BOILER FEEDWATER COST (FIGURE 10) ........................................................................................ 25 3.6.1. COST OF DEMINERALIZED WATER ................................................................................................. 25 3.6.2. COST OF RECOVERED CONDENSATE .............................................................................................. 26 3.6.3. COST OF BOILER FEEDWATER (BASED ON EXTERNAL POWER) ....................................................... 27 3.6.4. COST OF BOILER FEEDWATER (BASED ON TURBINE) ..................................................................... 27 4. APPENDIX ................................................................................................................................. 28 5. CONCLUSION ........................................................................................................................... 39 6. BIBLIOGRAPHY ....................................................................................................................... 42 7. INDEX ........................................................................................................................................... 43 Page 2 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  4. 4. ABOUT THE AUTHOR Page 3 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  5. 5. TABLE OF FIGURES Figure 1 - Turbine Power at Minimum Load Mass Flow Diagram .......................................................... 28 Figure 2 - Turbine Power at Full Load Mass Flow Diagram .................................................................... 28 Figure 3 - Sample Pressure-Enthalpy Diagram ........................................................................................ 29 Figure 4 - Sample Enthalpy-Entropy Diagram ......................................................................................... 30 Figure 5 - External Power Billing Record ................................................................................................ 31 Figure 6 - Chemicals Consumption Summary .......................................................................................... 32 Figure 7 - Turbine Power at Minimum Load (Given Data) ...................................................................... 34 Figure 8 - Turbine Power at Full Load (Given Data) ............................................................................... 36 Figure 9 - Utility Water (Given Data) ....................................................................................................... 38 Figure 10 - Boiler Feedwater (Given Data) .............................................................................................. 38 Page 4 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® DISCLAIMER The information included in this article is for learning purposes only. Quantity, values, amount, and rates were either gathered from published industry sources, professional notes, personal experience, empirical values, calculations, and extrapolations. Information about costs, maintenance, operations, and/or other performance criteria/attributes is not a representation of any entity, agency, or company.
  6. 6. 1. ABSTRACT As a Cost Engineer, if there is a choice between two production methods, the favored method would be the one involving the lowest total cost. In order to effectively make the selection on this basis, operational unit cost benchmarks must be calculated and identified. This short dissertation will introduce the unit cost method of obtaining the total material (or process) cost applied to a Steam Power Plant or any similar installation. We will refer to process media in this paper as Page 5 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® materials. Cost saving questions such as: if we use our in-house Turbine power for nine months instead of an external third party power, how much can we save? How about if we use it for a year? We can also focus on loss questions such as: We have a big leak on our LP steam line since yesterday. What is the dollar amount of what we'll be losing if this stays like this for a week before getting fixed? Questions similar to the aforementioned are common and as a Plant or Cost Engineer, we should be able to give a prompt response and a sound basis on where our answers came from. Only the basic set-up of a Steam Power Plant will be discussed here as the detailed discussion of a more complex installation is too broad for the purpose of this paper. Subjects in this write up include calculation of the Total unit cost to operate a boiler at minimum load (also at full load), unit cost of boiler feedwater, unit cost of Superheated (SH) steam, MP steam and LP steam; in-house Turbine base export power unit cost, etc. Suffice it to say, that enough information can be gleaned in the succeeding pages which will provide even a new Plant, Process or Cost Engineer to carry on with the task of reviewing operational cost, assigning budget, and recommending viable actions of improving plant performance. This will be an excellent approach to problem solving and better decision making.
  7. 7. 2. INTRODUCTION It was always a challenge to bring together an easy method of calculating a Steam Power Plant operational budget and so I thought, it must be a fitting subject to recommend an approach. I used a similar method several years ago and believe, it is still applicable to all of today’s installations. What I am presenting here is a template on unit cost calculation that will facilitate the preparation of a company’s operational, manufacturing, or production budget. In the following example, let us use a fictitious but life-like XYZ 1.63 MW Steam Power Plant where a high pressure boiler produces the 64B superheated steam at 300 deg C to drive the in-house turbine. If the saturated steam produced in a boiler is exposed to a surface with a higher temperature, its temperature will increase above the evaporating temperature. This steam is described as superheated by the number of temperature degrees through which it has been heated above saturation temperature (Sarco, 2014). The unit cost approach presented here was borne out of my experience and familiarity of a steam power plant I worked in some twenty-seven years ago (1986-87) where I prepared the production budget for the succeeding year. The cost engineer’s basic knowledge of the power plant processes and interdependencies will be another vital tool in coming up with a useful result. In the succeeding pages, we will need to collate XYZ’s most recent one year power and chemical consumption information, identify flow rates, pressure, temperature, enthalpies and other parameters either through the Operation Manual or through any plant monitoring devices coupled with an understanding of the famous Mollier Page 6 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® Chart. One of the major duties of a plant manager is to optimize operation while still able to reduce operating costs. In order to do this, one has to have unit cost benchmarks that can help quantify and
  8. 8. compare gains and losses on the same footing. Regardless of whether the steam power plant is supporting the public electrical needs or supporting the organization’s own manufacturing needs, an annual operational budget is ultimately required to be included in the overall financial plan of the company. This approach can provide the essential and accurate benchmarks needed. 3. EXTERNAL POWER The very first unit cost item that needs to be identified in assessing the overall operational cost of the plant is the source of power to run it. While we can go straight to the unit rate cost calculation of various materials, it is good to start with the external power source. There are two main category of power source. • External (e.g. Government grid, third party provider, etc.) • Internal Source (e.g. In-house Turbine Power Generator, in-house back-up emergency Diesel Driven Generator, etc). Most companies use both sources in accordance with their operating criteria and requirements. The XYZ Chemical Company discussed here owns a 1.63 MW Steam Power Plant that supplies steam and power to all its processes. Normally, the plant runs on its own power most of the year except during any of the following events: • Steam Power Plant Turnaround/Inspection • Steam Power Plant upset • Scheduled Production Shutdown • Unscheduled Production Shutdown • During Steam Power Plant Start-up • During minimum load Page 7 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  9. 9. Shown on Figure 5 is a tabulation of XYZ power consumption from its external source covering the period of January 2007 to September 2007. The quantities can be derived from this nine month period for us to calculate the total consumption for the whole year. We can then use the values to extrapolate and calculate for the fundamental unit rate of each production material. 3.1.1. CALCULATION OF THE AVERAGE EXTERNAL POWER COST Based on XYZ’s nine (9) month power consumption (Figure 5 ) Total Bill Average Power Cost = ----------- Energy Total 86,375 C$ = ---------------- 1,407,000 KW-HR = 0.0614 C$/KW-HR Total Bill C$ (12 Months) Projected Budget for 2007 = ---------------------- 9 Months (1 Year) 1,036,505 = --------- 9 = 115,167 C$ Page 8 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  10. 10. Page 9 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® Notes: None of the values used in Figure 5 came from any existing reference source. The values were all logical values derived arbitrarily from the various industrial power cost averages in Canada that ranges from 0.04C$/KW-HR to 0.08 C$/KW-HR and shown here just for the purpose of presenting the calculation method and the subject unit cost concept. From the above calculation, we found that our average unit cost rate is C$0.0614 per KW-HR. 3.2. STEAM POWER PLANT’S CHEMICAL CONSUMPTION Chemical consumptions of a steam power plant points to the use water softening and demineralization chemicals in removing impurities, such as calcium, magnesium, iron and silica which can cause scale. Treatment methods include lime softening, ionic exchange, reverse osmosis, and electro-dialysis. Which treatment is most appropriate depends on the water supply quality, the purity requirements of the boiler, and to some extent - the budget (Fegan, 1997) and (BoilerBurner, 2014). Second source of cost information vital to assessing the power plant’s operational cost or operational budget is found in the Chemical Consumption record (Figure 6). Calculation of the Total Projected Cost of Chemicals based on XYZ Corporation 9-month chemical consumption (Frago, 1986-88). 2007 Projected Cost of Chemicals = C$71,000 Calculation of the Total Projected Cost of Chemicals based on XYZ Corporation 9-month chemical consumption plus 10% consumption contingency. 2007 Projected Cost of Chemicals (+10%) = C$78,000
  11. 11. 3.3. SCENARIO 1: IN-HOUSE TURBINE POWER AT MINIMUM LOAD What is minimum load anyway? It is defined as the load required to sustain operation of the Steam Power Plant without exporting to users. It is the load on standby operation ready to supply when needed (Figure 7). Since there will be times when the plant will have to run at minimum load or what operation sometimes called a “running standby mode”, it is prudent to establish the materials and power unit cost in such condition. The amount of information that can be derived from this scenario is relatively immense. For one, it can give the manager the needed quantification of operating cost during standby mode, identifying losses attributed to waiting cost. To proceed clearly with the calculation, we will derive the pertinent unit costs gradually into the following components: • Unit cost to operate in-house boiler at minimum load • Cost of Steam (various pressures) at minimum load • Cost of in-house Turbine Power at minimum load • Daily Fuel Consumption at minimum load 3.3.1. UNIT COST TO OPERATE THE IN-HOUSE BOILER AT MINIMUM LOAD a) Fuel Cost = 671 Li/HR x 0.0589 C$/Li = 39.52 C$/HR Page 10 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  12. 12. b) Feedwater Cost = 11 CuM/HR x 0.2624 C$/cuM = 2.89 C$/HR Note: See calculated unit cost for feedwater (Section 3.7.3) c) Total Cost to Operate Boiler = 39.52 C$/HR + 2.89 C$/HR = 42.40 C$/HR 3.3.2. COST STEAM (VARIOUS WORKING PRESSURES) AT MINIMUM LOAD a) Total heat required (Qt) = m kg/HR x h KCal/Kg = 8800 kg/HR x 667.17 KCal/Kg = 5,871,096 KCal/HR where : enthalpy = h = h1 = h2 = 667.17 KCal/Kg Reference 1: Operation/Process Manual Reference 2: Mollier Charts Page 11 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  13. 13. b) Cost of Steam per KCal 42.40 C$/HR = 5,871,096 KCal/HR = 0.000007 C$/KCal c) Cost of Superheated (SH) Steam = 0.000007 C$/KCal x 667.17 KCal/Kg = 0.0048 C$/Kg c) Cost of Low Pressure (SL) Steam = 0.000007 C$/KCal x 568.95 KCal/Kg = 0.0041 C$/Kg Page 12 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  14. 14. 3.3.3. COST OF IN-HOUSE TURBINE POWER AT MINIMUM LOAD (FIGURE 1) a) Low Pressure (SL) Steam to Deaerator = m3 kg/HR = 2300 kg/HR b) SH steam to convert to SL steam Given SH to SL relationship (Figure 1 and/or Operation Manual) m2 SH KG/HR = Fc x m3 SL KG/HR where, Fc is a conversion factor taken from operation. in this case, Fc = 0.7987 = Fc x m3 SL Kg/HR = 0.7987 x 2300 Kg/HR = 1837 Kg/HR c) Superheated Steam (SH) to Turbine; m1 SH = 8,800 Kg/HR - 1837 Kg/HR = 6,963 Kg/HR d) Steam Cost to Operate Turbine = 6,963 Kg/HR x 0.0048 C$/Kg = 33.55 C$/HR Page 13 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  15. 15. e) Cost of In-house Turbine Power at minimum load 33.55 kg/HR = 627 KW = 0.0535 C$/KW-HR Please see Figure 1 to understand m3. 3.3.4. DAILY FUEL CONSUMPTION AT MINIMUM LOAD = 671 Li/HR x 24 HR/day = 16,104 Li/day 3.4. SCENARIO 2, IN-HOUSE TURBINE POWER AT FULL LOAD What is Full Load? Full load or full plant operations means full production of all process plants and auxiliaries (Figure 8). Defining the unit cost during full plant operation is very important as we can bring to forth the “base export cost” of what the plant is producing, be it process steam or generated power. In order for us to have the best appreciation as to the information we are trying to put together; we can refer to the unit cost of our External Power as a reckoning point. Page 14 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  16. 16. Generally, the unit cost of power coming from outside is usually relatively more expensive than the unit cost of power we produce in-house otherwise, there will some nagging questions surrounding why a company will build own Power Plant in the first place. Of course, there are other factors like reliability; i.e. there are options to run another unit when one is not available, perhaps political connections (reminding us why an organization, especially a government agency, is able to build the plant without a proper business case) and many more. We will derive the pertinent unit costs gradually into the following components: • Unit cost to operate in-house boiler at full load • Cost of Steam (@ various pressures) at full load • Cost of in-house Turbine Power at full load • Daily Fuel Consumption at full load 3.4.1. UNIT COST TO OPERATE THE IN-HOUSE BOILER AT FULL LOAD a) Fuel Cost = 1,453 Li/HR x 0.0589 C$/Li = 85.6 C$/HR b) Feedwater Cost (Figure 10) = 19.24 CuM/HR x 0.2624 C$/cuM = 5.05 C$/HR c) Total Cost to Operate Boiler = 85.6 C$/HR + 5.05 C$/HR = 90.61 C$/HR Page 15 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  17. 17. 3.4.2. COST OF STEAM (VARIOUS WORKING PRESSURES) AT FULL LOAD a) Total Heat required per hour, (Qt) 1) SH Steam = m kg/HR x Enthalpy KCal/Kg Note: Look for the m and enthalpy value at Figure 8. = 15,542 kg/HR x 667.17 KCal/Kg = 10,369,156 KCal/HR 2) SH Saturated Steam = m kg/HR x Enthalpy KCal/Kg Note: Look for the m and enthalpy value at Figure 8. = 2,783 kg/HR x 659.13 KCal/Kg = 1,834,359 KCal/HR 3) Total heat required per hour (Qt) = 10,369,156 KCal/HR + 1,834,359 KCal/HR = 12,203,515 KCal/HR Page 16 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  18. 18. b) Total Cost of Steam per Kcal (Superheated and Saturated) 90.6 C$/HR Note: see Section 3.4.1 = 12,203,515 KCal/HR = 0.000007 C$/KCal c) Cost of Superheated (SH) Steam = 0.000007 C$/KCal x 667.17 KCal/Kg = 0.0050 C$/Kg d) Cost of Superheated (SH) Saturated Steam = 0.000007 C$/KCal x 659.13 KCal/Kg Note: See enthalpy value at Figure 8 = 0.0049 C$/Kg e) Cost of Medium Pressure (SM) Steam = 0.000007 C$/KCal x 648.94 KCal/Kg = 0.0048 C$/Kg Page 17 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  19. 19. f) Cost of Low Pressure (SL) Steam = 0.000007 C$/KCal x 568.95 KCal/Kg = 0.0042 C$/Kg 3.4.3. COST OF IN-HOUSE TURBINE POWER AT FULL LOAD (FIGURE 2) a) Amount of SH Steam to convert to SM Given SH to SM relationship (Ref: Mass Flow Diagram & Operation data) mSH KG/HR = Fc x m3 SM KG/HR where, Fc is a conversion factor taken from operation. in this case, Fc = 0.955 b) m5 SM to Production less m4 SM from Preheater = m3 SM m3 SM = m5 SM KG/HR - m4 SM KG/HR m3 SM = 3,644 KG/HR - 345 KG/HR = 3,299 KG/HR c) Superheated Steam to reducing station; m2 SH = Fc x 3,299 Kg/HR = 0.955 x 3,299 Kg/HR = 3151 Kg/HR Page 18 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  20. 20. d) Superheated Steam (SH) to Turbine; m1 SH = m SH Kg/HR - 3151 Kg/HR = 15,542 Kg/HR - 3151 Kg/HR = 12,391 Kg/HR e) Steam Cost to Operate Turbine @ Full Load = 12,391 Kg/HR x 0.0050 C$/Kg = 61.39 C$/HR f) SL to Production = m SL Kg/HR - m7 SL Kg/HR = 8,996 Kg/HR - 2300 Kg/HR = 6,696 Kg/HR g) Cost of Extracted SL (bound to Operating Units) = 6,696 Kg/HR x 0.0042 C$/Kg = 28.29 C$/HR h) Steam Cost to Operate Turbine @ Full Load = Steam In C$/HR - Steam Out C$/HR = 61.39 C$/HR - 28.29 C$/HR = 33.10 C$/HR Page 19 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  21. 21. i) Cost based on Gross Turbine Output 33.10 C$/HR Page 20 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® = 1630 KW = 0.0203 C$/KW-HR j) Cost based on Turbine less Turbine Auxiliaries Given (From Operation Manual) Turbine Auxiliaries 115 KW 33.10 C$/HR = 1630-115 KW 33.10 C$/HR = 1515 KW = 0.0218 C$/KW-HR
  22. 22. c) Cost based on Turbine less Turbine and Boiler Auxiliaries Given: (From Operation Manual) DESCRIPTION POWER Turbine Auxiliaries 115 KW Boiler Auxiliaries 320 KW TOTAL 435 KW 33.10 C$/HR = 1630 - 435 KW 33.10 C$/HR = 1195 KW = 0.0277 C$/KW-HR (Export base cost) 3.4.4. DAILY FUEL CONSUMPTION AT FULL LOAD = 1,453 Li/HR x 24 HR/Day = 34,869 Li/Day Page 21 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  23. 23. 3.5. UTILITY WATER COST ( Page 22 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  24. 24. 3.6. FIGURE 9) The plant’s utility water supplies the feed for the soft water processing whose output is required by the boiler. It also supplies a big part of the cooling water requirement of the Steam Power plant not to mention potable water. Regardless of what the utility water is for, the simple knowledge of the source’s total flow rate, the required power to pump, and the unit cost of power, is enough to calculate the unit cost of utility water. The approach for calculating the unit cost for Utility Water and Boiler Feedwater in this section and succeeding section is provided as guide for anyone who desires to learn how operational unit cost calculation works. Other utility materials associated with the Steam Power Plant not yet mentioned are: • Softened Water • Cooling Water • Waste Water • Potable Water • Nitrogen (if the company has its own Nitrogen plant), and • Process air a) Based on External Power Source 0.0614 C$/KW-HR x 28 KW = 70 cuM/HR Page 23 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  25. 25. 1.72 C$/HR = 70 cuM/HR = 0.0246 C$/cuM b) Based on Turbine 0.0277 C$/KW-HR x 28 KW = 70 cuM/HR 0.78 C$/HR = 70 cuM/HR = 0.0111 C$/cuM Page 24 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  26. 26. 3.7. BOILER FEEDWATER COST (FIGURE 10) To proceed with the Boiler’s Feedwater operating cost calculation, we need to understand where our supply is coming from and other related cost. In this case, the feed comes from a Demineralization Plant. It takes in Utility water, treats it with chemicals and becomes “boiler Page 25 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® feedwater”. The cost of power pertaining to running the Demineralization plant was already considered when we estimated the In-house Turbine power cost. Note that the injection rates in the succeeding examples were taken from an Operation Manual. 3.7.1. COST OF DEMINERALIZED WATER a) Cost of Chemicals Chemicals Unit Cost (C$/Kg) Injection Rate (Kg/cuM) Cost (C$/cuM) HCl 0.1737 1.2400 0.2153 NaOH 0.3929 0.5267 0.2069 TOTAL 0.4223
  27. 27. b) Total Cost of Demi-water (based on External Power) Utility Water 0.0246 C$/cuM (Figure 9 - Utility Water (Given Data)) Chemicals 0.4223 C$/cuM (See Section 3.7.1) TOTAL 0.4468 C$/cuM c) Total Cost of Demi-water (Based on Turbine) Utility Water 0.0111 C$/cuM Chemicals 0.4223 C$/cuM TOTAL 0.4334 C$/cuM 3.7.2. COST OF RECOVERED CONDENSATE a) Cost of Chemicals Chemicals Unit Cost (C$/Kg) Injection Rate (Kg/cuM) Cost (C$/cuM) HCl 0.1737 0.4000 0.0695 NaOH 0.3929 0.0218 0.0086 TOTAL 0.0780 b) Total Condensate Cost 0.0780 C$/cuM Page 26 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  28. 28. 3.7.3. COST OF BOILER FEEDWATER (BASED ON EXTERNAL POWER) DESCRIPTION UNIT RATE 50% Total Cost of Demi-Water 0.2234 C$/cuM 50% Total Cost of recovered condensate 0.0390 C$/cuM TOTAL 0.2624 C$/cuM 3.7.4. COST OF BOILER FEEDWATER (BASED ON TURBINE) DESCRIPTION UNIT RATE 50% Total Cost of Demi-Water 0.2167 C$/cuM 50% Total Cost of recovered condensate 0.0390 C$/cuM TOTAL 0.2557 C$/cuM Page 27 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  29. 29. Page 28 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® 4. APPENDIX Figure 1 - Turbine Power at Minimum Load Mass Flow Diagram Figure 2 - Turbine Power at Full Load Mass Flow Diagram
  30. 30. Figure 3 – Pressure Versus Enthalpy Diagram Page 29 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  31. 31. Figure 4 – Enthalpy Versus Entropy Diagram Page 30 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  32. 32. Figure 5 - External Power Billing Record Historical XYZ Corporation Billing Record (External Power) January 2007 to September 2007 MONTH ENERGY (KW-HR) DEMAND (KW) TOTAL BILL (C$) Page 31 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® UNIT COST (C$/KW-HR) Jan-07 119,000 630 8,607 0.0723 Feb-07 173,250 1,638 10,646 0.0614 Mar-07 169,750 882 10,186 0.0600 Apr-07 143,500 1,512 8,535 0.0595 May-07 238,000 1,588 17,281 0.0726 Jun-07 138,250 1,613 7,660 0.0554 Jul-07 154,000 1,588 8,430 0.0547 Aug-07 138,250 1,633 8,121 0.0587 Sep-07 133,000 1,310 6,910 0.0520 1,407,000 12,394 86,375 0.0614
  33. 33. Figure 6 - Chemicals Consumption Summary XYZ Chemical Consumption Summary January 2007 to September 2007 Page 32 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® Item No. Materials Unit Cost as of Sep07 (C$/Li) Total Consumption (Jan/Sep07) (Li) Actual Average per Month (Li) Projected Consumption for 2007 (Li) Cost Projection for 2007 (C$) Plus 10% Adjusted Cost Projection for 2007 (C$) 1 HCl 0.1737 95,386.00 10,598.44 127,181.33 22,087.22 24,295.94 2 NaOH 0.3929 34,225.00 3,802.78 45,633.33 17,930.42 19,723.46 3 NaOCl 0.5098 396.00 44.00 528.00 269.16 296.08 4 N2H4 3.1155 247.10 27.46 329.47 1,026.44 1,129.08 5 Na3PO4* 0.5028 37.00 4.11 49.33 24.80 27.28 6 NH4OH 0.3934 168.50 18.72 224.67 88.38 97.22 7 H3PO4 1.2900 934.00 103.78 1,245.33 1,606.53 1,767.18 8 Urea* 0.2467 14,580.00 1,620.00 19,440.00 4,796.65 5,276.31
  34. 34. 9 N7350 5.8976 649.95 72.22 866.60 5,110.84 5,621.93 10 N39L/SN 4.1397 190.00 21.11 253.33 1,048.72 1,153.59 11 N321 4.5223 600.00 66.67 800.00 3,617.88 3,979.66 12 N8374 16.1899 228.50 25.39 304.67 4,932.54 5,425.79 Page 33 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® 13 Mogul WS164 4.3236 425.40 47.27 567.20 2,452.32 2,697.55 14 Mogul WS141 3.3184 257.00 28.56 342.67 1,137.12 1,250.83 15 Mogul AG412 7.0109 248.60 27.62 331.47 2,323.88 2,556.27 16 Mogul AG472 7.9455 212.60 23.62 283.47 2,252.29 2,477.52 TOTAL Projected Cost of Chemicals (C$) = 70,705.17 77,775.69 Note : * Item in Kgs unit Notes: The values of the nine month materials consumption column were all assumed consumptions. The unit pricing was referred to an old study note that the author prepared while working with a large Oleo-chemical Plant in Asia (1987). Quantities were roughly adjusted using an escalation factor of 2.5 on the basis of the 2007 and the 1986 Canadian exchange rate. No confidential value was used anywhere in this article. The main purpose of this table in this write up is not “pricing accuracy” but to illustrate that the summary monitoring table should supports the “unit cost approach” being presented.
  35. 35. Figure 7 - Turbine Power at Minimum Load (Given Data) a) Heavy Fuel Oil (specific cost) 0.0589 C$/Li b) Turbine Load DESCRIPTION POWER Boiler Auxiliaries 264 KW Water preparation 56 KW Turbine Auxiliaries 45 KW WC Pro-rata for Turbine 70 KW Waste Water 75 KW N2 Production 57.7 KW Instrument/Process Air 59 KW Total Load 626.7 KW c) Steam Generation Steam Quality m UoM Enthalpy (KCal/Kg) SH Steam 8,800 KG/HR 667.17 SH Saturated Steam - KG/HR Medium Pressure Steam - KG/HR LP Steam (from reducing stations) 2,300 KG/HR 568.95 Page 34 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  36. 36. d) Fuel Consumption unit rate 671 Li/HR e) Boiler Feedwater Consumption (BFW) 11 CuM/HR Page 35 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® Notes: All mass flow rate values were derived from the author’s old process work notes while working with a large Oleo-chemical Plant in Asia (1985-88) making them unique and distinct from the existing installation the author worked on. The process schematics in the presentation were revised for ease of presentation. No confidential value was used anywhere in this article.
  37. 37. Figure 8 - Turbine Power at Full Load (Given Data) a) Heavy Fuel Oil (specific cost) 0.0589 C$/Li b) Turbine Load 1630 KW c) Steam Generation Table Page 36 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® Item No Steam Quality m UoM Enthalpy (KCal/Kg) 1 SH Steam 15,542.0 KG/HR 667.17 2 SH Saturated Steam 2,783.0 KG/HR 659.13 3 Medium Pressure Steam (from reducing stations) 3,644.0 KG/HR 648.94 4 Medium Pressure Steam (from pre-heater) 345.0 KG/HR 648.94 5 Low Pressure Steam (from Turbine) 8,995.8 KG/HR 568.95 6 Low Pressure Steam to Deaerator 2,300.0 KG/HR 568.95 d) Fuel Consumption unit rate 1453 Li/HR e) BFW Consumption 19.24 CuM/HR Again, please note that enthalpy values are available and can be found using any of the references below. • Process and Operation Manual • Mollier Charts (p-h, t-s, p-s diagram). See example on Figure 3 and Figure 4 where the working temperature (300 deg C) and working pressure (64B) of the SH Steam were
  38. 38. identified from operation records and manuals. The parameters were then plotted on the p-h and h-s diagrams to find the enthalpy relating to them. • The enthalpies of the SH Saturated, MP and LP steam can be found the same way. For ease of presentation, they were all given here. In the field, plant engineers have to look for them as described above. • Conversion: 1 BTU=1055 J, 1B=1 x 10^5 Pa and 1Kg = 9.8 N Page 37 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  39. 39. Figure 9 - Utility Water (Given Data) a) Utility Water Flow rate 70 cuM/HR (Comes from Operating Manual) b) Cost of External Power 0.0614 C$/KW-HR (Section 3.1.1) Turbine Power Export Cost 0.0283 C$/KW-HR (Figure 2) c) Power Required DESCRIPTION POWER Deepwell Pump 13 KW Utility Pump 15 KW TOTAL 28 KW Figure 10 - Boiler Feedwater (Given Data) a) HCl 0.1737 C$/Kg b) NaOH (50% Concentration) 0.3929 C$/Kg c) Recovered condensate is 50% of BFW d) Utility Water based on average external power cost of 0.0614 C$/KW-HR is calculated to be 0.0246 C$/cuM Note: Refer to Figure 6. Page 38 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  40. 40. 5. CONCLUSION As can be seen from the presentation, we’ve managed to establish some of the main components required in calculating the operational budget of a steam power plant. The approach is not complicated and requires minimum knowledge of the plant’s processes. We’ve touched essential subjects such as Base Export Cost of our own in-house Turbine Power and its Production Cost; thus identifying export profitability and implies potential savings that can be derived from using one rather than the other, not to mention opportunities of having a more reliable power plant that can continuously support production. Knowing the unit material cost of the plant will give us a better and accurate perspective on the plant’s losses and gains in terms of dollar values. Average External Power Cost of any plant can be found by monitoring consumptions and the total amount paid. Such data will give the company an accurate reference basis when calculating the advantages and profitability of running through own power. Monitoring and summarizing the plant's chemical consumption in accordance to the format shown in the table will provide the information required in the subsequent calculation. If no history is available, one will have to rely on certain assumptions or schedule, such as a production schedule. The approach presented can help upcoming cost engineers and plant engineers to improve their effectiveness, efficiency and excellence in managing their steam power plant. The sample calculation can be used in a similar way (if not exactly the same way) in assessing any other process plant. If one needs to know certain process parameters as enthalpies (h), the reference abounds. If it is not available in the operation manual of the plant, one can ask the power plant process operator, or check the internet, or get a reference book like Perry’s Chemical Handbook, etc. Page 39 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  41. 41. The unit calculation we gathered can now be used for our Annual Operational Budget. This is the reason why the title of this report is “Unit Cost Approach to Preparing a Steam Power Plant Operational Material’s Budget”. Once we know how much Medium Pressure Steam, Low Pressure Steam or Power is planned to be generated or consumed for the whole year, we will know exactly the budget we need. If production wants to calculate their own operational budget, they know they have good data coming from us as they take the cost of their steam usage into consideration. One question we’ve briefly touched in Section 1 asking the potential savings of operating under XYZ’s own power for 9-months can now be answered quite quickly as we now know exactly the difference between the external power and the in-house turbine’s unit cost. We will then simply multiply the difference with the power consumption projection we’ll come up with. Page 40 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® To clarify: From the calculated External Power of C$0.0614 and the calculated In-house Turbine of C$0.0283, we can see that using the turbine will give us a saving advantage of C$0.0357 per KW-HR. Using this value, we can surmise that by simply coming up with any projected consumption or actual consumption, we can readily calculate the benefit which is C$0.0357 multiplied by the KW-HR consumption. For example, if the 9-month consumption is 2,000,000 KW-HR, the savings involved is C$0.0357 multiplied by 2,000,000 giving us C$71,400 in savings. We will use the very same approach when dealing with cost issues involving the other process media. One can compare production cost of boiler feedwater using external source and in-house turbine. The other production processes required to produce an end product like gycerine or fatty acid which uses LP steam somewhere can make a similar comparison or merely, just to come up with their own base production cost.
  42. 42. A more comprehensive and detailed report on various process materials surrounding this subject is good to have in the future. Be familiar with the method, put them to work, and they can make the life of a plant engineer easier. Page 41 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  43. 43. 6. BIBLIOGRAPHY BoilerBurner. (2014). Water Softener. Retrieved from www.cleanboiler.org: http://www.cleanboiler.org/Eff_Improve/Operations/Water_Softener.asp Fegan, B. (1997). CIBO Energy Efficiency Guide. Retrieved from www.heatandpowerproducts.com: http://www.heatandpowerproducts.com/steam.html 3/2005 Frago, R. (1986-88). Author's Old Notes on Chemical Consumptions and Equipment Rating. Philippines. Hills, R. (1989). Power From Steam. Cambridge University Press, ISBN 0-521-45834-X. Kiameh, P. (2002). Steam Power Plant Handbook. Martinez, I. (2009). Mollier (Pressure versus Enthalpy Diagram). Retrieved from http://webserver.dmt.upm.e: http://webserver.dmt.upm.es/~isidoro/dat1/Dia_ph_H2O.jpg Sarco, S. (2014). Superheated Steam. Retrieved from www.spiraxsarco.com: http://www.spiraxsarco.com/Resources/Pages/Steam-Engineering-Tutorials/steam-engineering-principles- and-heat-transfer/superheated-steam.aspx Steingress, F. a. (2003). High Pressure Boilers 3rd Edition . American Technical Publishers. ISBN 0- 8269-4300-4. Retrieved from Frederick M. Steingress, Harold J. Frost and Darryl R. Walker (2003). High Pressure Boilers (3rd Edition ed.). American Technical Publishers. ISBN 0-8269- 4300-4. Timmerhaus, P. a. (n.d.). In P. a. Timmerhaus, Plant Design and Economics for Plant Engineers Third Edition (p. 194). Toolbox, T. E. (2009). Mollier for water and steam (Enthalpy versus Entropy Diagram). Retrieved from www.engineeringtoolbox.com: http://www.engineeringtoolbox.com/mollier-diagram-water-d_ 308.html Wikipedia. (2014). Baseload Power Plant. Retrieved from http://en.wikipedia.org: http://en.wikipedia.org/wiki/Base_load_power_plant Wikipedia. (2014). Boiler. Retrieved from http://en.wikipedia.org: http://en.wikipedia.org/wiki/Boiler Wikipedia. (2014). Superheated Steam. Retrieved from http://en.wikipedia.org: http://en.wikipedia.org/wiki/Superheated_steam Page 42 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP®
  44. 44. Page 43 of 43 Unit Cost Approach to Estimating Operational Materials Budget Author: Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® 7. INDEX ABOUT THE AUTHOR .................................. 3 Average External Power Cost ........................... 8 Average Power Cost ........................................ 8 base export cost ............................................... 14 benchmarks ....................................................... 7 Billing Record ................................................ 30 Chemical Consumption record ......................... 9 Chemical consumptions .................................... 9 conclusion ....................................................... 38 Condensate Cost.............................................. 25 Cooling Water ................................................. 22 Cost of Demi-water ......................................... 25 Cost of In-house Turbine Power ..................... 14 Cost of Low Pressure (SL) Steam ................... 12 Cost of Steam .................................................. 10 Cost of Steam per KCal .................................. 12 Cost of Superheated (SH) Steam .................... 12 cost of utility water ......................................... 22 Cost saving questions ........................................ 5 Cost to Operate Boiler .................................... 11 Daily fuel consumption ................................... 21 demineralization ................................................ 9 DISCLAIMER .................................................. 4 External Power .................................................. 7 External Power Source .................................... 22 Feedwater ........................................................ 24 Feedwater Cost................................................ 11 Fuel Cost ......................................................... 10 Full load .......................................................... 14 Gross Turbine Output ..................................... 20 identifying losses ............................................ 10 INTRODUCTION ............................................ 6 minimum load ................................................. 10 operating cost .................................................. 10 optimize operation ............................................ 6 own power ....................................................... 38 Potable Water .................................................. 22 potential savings.............................................. 39 Process air ....................................................... 22 Process and Operation Manual ....................... 35 production cost ................................................ 39 Projected Budget ............................................. 8 reducing station ............................................... 18 reliability ......................................................... 15 SH Steam to convert to SM ............................ 18 Softened Water................................................ 22 standby operation ............................................ 10 Steam Generation ............................................ 33 superheated ....................................................... 6 TABLE OF CONTENTS .................................. 1 TABLE OF FIGURES ...................................... 4 Total heat required .......................................... 11 Total Projected Cost of Chemicals ................... 9 Turbine Load ................................................... 33 Turbine Power ................................................. 10 two main power source category ...................... 7 unit calculation ................................................ 39 utility water ..................................................... 22 Waste Water .................................................... 22

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