The U.S. Department of Energy estimates that there are over 33,000 boilers being used by U.S. industries to generate steam. Therefore each of these facilities utilize steam as an energy source. However, in order for steam to be utilized as an energy source, several utilities come into focus as expenditures. The method used for evaluating utility costs has a dramatic effect on facility and project economics.

Improper utility pricing can lead to bad decisions; good energy programs/projects can be discarded, and bad programs/projects can be implemented. Regrettably, this is relatively common. To avoid such mistakes, it is imperative that plant “energy managers” use appropriate methods for conserving energy, taking into account all the parameters that impact energy costs – fuel, condensate, power generation, and cooling water – when evaluating energy conservation projects and programs.

 

Knowing the correct cost of steam is therefore important for many reasons, including:
•To properly evaluate the economics of proposed process efficiency or capacity improvement projects
•To serve as a basis for optimizing the steam generation system, and minimizing costs
•To ensure more effective negotiations with the utility or third party independent power producers

In most companies, the reported cost of steam is the average cost of generation at a particular production rate. The total operating costs – fuel, power, water, chemical additives, labor, maintenance, depreciation, interest, and administrative overheads – are divided by the total amount of steam produced.

STEAM LOSS IS CRITICAL WHEN MEASURING THE AMOUNT OF ENERGY A FACILITY LOSES ANNUALLY, AND THE AMOUNT OF ENERGY CONSUMPTION IT TAKES TO REPLACE THAT LOST ENERGY!