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LIFE CYCLE COST Optimizing Pump Systems Dr. Gunnar Hovstadius Dir. Technology ITT FT

LIFE CYCLE COST Optimizing Pump Systems Dr. Gunnar Hovstadius Dir. Technology ITT FT. PRICE FUEL ECONOMY SAFETY DURABILITY. UTILITY MAINTENANCE INSURANCE PERFORMANCE RESELL VALUE. All of us use LCC. Energy & Maintenance costs LCC.

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LIFE CYCLE COST Optimizing Pump Systems Dr. Gunnar Hovstadius Dir. Technology ITT FT

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  1. LIFE CYCLE COST Optimizing Pump Systems Dr. Gunnar Hovstadius Dir. Technology ITT FT

  2. PRICE FUEL ECONOMY SAFETY DURABILITY UTILITY MAINTENANCE INSURANCE PERFORMANCE RESELL VALUE All of us use LCC

  3. Energy & Maintenance costs LCC • 70% of energy production in industrialised countries drive electric motors • 70% of electric motors drive pumps, compressors and fans • Pumped systems account for 20% of the world’s electric energy demands • Energy and maintenance costs during the life of a pump system are usually more than10 times its purchase price

  4. PumpLCC, the product of … and a spirit of global cooperation • 1994 - U.S. DOE invited HI to participate in the Motor Challenge Program • 1995 - Flygt develops Sewage Lift station “DOE Energy Showcase” in CT • 1996 - Europump forms the Enersave committee • 1998 - HI and Europump form a joint committee to develop LCC guidelines • 2000 - Europump-HI “Pump Life CycleCosts-Global Best Practices” Guideline

  5. Hydraulic Institute - Europump Life Cycle Cost (LCC) is the total lifetime cost to purchase, install, maintain, and dispose of that equipment. Costs: • Initial purchase • installation and commissioning • energy • operating • maintenance • downtime, loss of production • environmental cost • decommissioning

  6. Cost Components • Life Cycle Cost is the total lifetime cost to purchase, install, operate, maintain and dispose of that equipment. • HI/EP Oct. 2000 • The purchase price is typically less than 15% of the total ownership cost. Environmental 7%

  7. CONTENT Chapter Executive Summary Introduction 1 Life Cycle Cost 2 Pumping System Design 3 Analyzing Existing Pumping Systems 4 Examples of LCC Analysis 5 Effective Procurement using LCC 6 Recommendations 7 References 8 Glossary 9 Appendix A - E

  8. APPENDIXES A System Curves B Pumping Output and System Control C Pump Efficiencies D Case History - Cost Savings E Electrical Drivers and Transmissions

  9. MANUAL CALCULATION CHART System description: Input: n - Life in years: i - Interest rate, %: p - Inflation rate %: - Initial investment cost: 1 - Installation and commissioning cost: 2 - Energy price (present) per kWh: - Weighted average power in kW: - Average Operating hours/year: Energy cost/year (calculated) = Energy price x 3 Weighted average power x Average Operating hours/ yr - Operating cost/year: 4 - Average Maintenance cost (routine 5 maintenance/year): - Down time cost/year: 6 -Other yearly costs : 7 Sum of yearly costs - : (3+4+5+6+7) 8

  10. MANUAL CALCULATION ....cont.

  11. SYSTEMS, notpumps • LCC starts with the SYSTEM. • Replacing a 75% efficient pump with a 80% efficient pump will save almost 7% electricity cost • BUT … if pump systems are incorrectly sized, efficient pumps will operate at inefficient points • 75% of all engineered pump systems are estimated to be oversized.

  12. PUMPS and SYSTEM SIZINGEnergy to Burn • SYSTEM HEAD CALCULATIONS ARE CONSERVATIVE - SAFETY FACTORS • SINGLE PUMP, CONSTANT SPEED SYSTEMS SIZED FOR MAX DUTY • STATUTORY RULES IN MUNICIPAL WASTEWATER PUMPING • 40 DEG+ , THREE DAYS OF THE YEAR • SYSTEM COMPONENTS ARE OVER- SIZED - SAFETY FACTORS

  13. Pumps: expensive water heaters • Pumps, over-sized for REAL system demands, lead to • frequent on / off cycling • closing of throttling valves • RESULT: • adding friction head to the system, • increasing Pump kW (electric power required)

  14. ENERGY • Efficient pumps & efficient systems => Specific Energy ( Wh/l pumped fluid ) Calculate specific energy for the system and compare different solutions and different components

  15. Maintenance • Throttled / oversized pumps run outside BEP • operate less efficiently, • generate radial loads & wear faster ….whereas • Accurately sized pumps and systems • reduce maintenance costs • increase seal, bearing, shaft life • increase MTBF • decrease labor maintenance • reduce production loss • reduce our warranty goodwill costs

  16. LCCComparison - Example 10 Year Pump Life: : 80% eff60% eff 800 gpm @ 90 ft BHP 16.95 kw22.60 kw • Pump / Motor Price $ 2,500 2,500 ( with 30 hp motor) • Installation 500 500 • Energy Costs* 33,900 45,200 $ 0.05/ KwHr x 4000 hrs/yr x 10 yrs • Maintenance Parts (seals, bearings, shaft, impeller) - 4,000 8,000 Labor 5 hrs/10hrs 2,000 4,000 • Downtime - BI insurance pro-rate 1,200 1,200 • Environmental ($ 150 x 2/yr and 3/yr) 3,000 4,500 • Decommission650 650 TOTAL LCC Comparison $ 47,550 $66,550 Operating Savings $ 19,000

  17. LIFE CYCLE COSTCustomer Economic value • Reducing costs increases competitiveness • US Dept. Of Energy estimates 75-122 B KwH per year can be saved by “optimizing” motor driven pump systems • Savings would be between $ 4-6 B per year • Increase public services without raising public taxes and fees • Responding to the demands of private operators of public services to find system savings

  18. LIFE CYCLE COSTEnvironmental Value Global commitment to environmental solutions - • Rio: Reduce ozone threatening emissions • Kyoto - commitment to reduce energy • 1 KwHr of electricity produces 600 grams of CO2. Saving 75-122B KwH will reduce 45 to 75 Billion Kg in CO2

  19. PUTTING LCC TO WORK • Think systems, not components. • Education of System owners, designers, specifiers, purchasers and producers • Concentrate on system performance, rather than component performance • Develop system specifications

  20. LIFE CYCLE COST • ITT Industries EMBRACES LCC AS A TOOL FOR SELECTING AN OPTIMAL SOLUTION TO CREATE ECONOMIC AND ENVIRONMENTAL VALUE OVERTHE LIFE OF A SYSTEM

  21. New LCC Focused products/systems from ITT Industries • PumpSmart - advanced electronics and algorithms monitor system demands and varies the speed of the unit or shuts it down to protect the pump • Hydrovar Contol System - converts the pump from a constant speed to a variable speed unit • N-Pump - revolutionary impeller reduces the energy consumption by 30-50% • Sanitaire - a fine bubble aeration system that cuts energy costs by up to 50%

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