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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
PRICE FUEL ECONOMY SAFETY DURABILITY UTILITY MAINTENANCE INSURANCE PERFORMANCE RESELL VALUE All of us use LCC
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
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
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
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%
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
APPENDIXES A System Curves B Pumping Output and System Control C Pump Efficiencies D Case History - Cost Savings E Electrical Drivers and Transmissions
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
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.
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
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)
ENERGY • Efficient pumps & efficient systems => Specific Energy ( Wh/l pumped fluid ) Calculate specific energy for the system and compare different solutions and different components
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
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
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
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
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
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
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%