E-Tech, Inc.
Equipment Payback


How to Determine Fuel Savings
from an E-Tech Economizer

Fuel

Heating Value

Price

$/MMBTU

Natural Gas

1000 BUT/MCF

$2.5/MCF

$2.50

No. 2 Fuel Oil

125,000 BTU/gal

$0.90/gal

$6.80

No. 6 Fuel Oil

147,000 BTU/gal

$0.75/gal

$5.00

Coal

11,000 BTU/ton

$20/ton

$0.90

To Calculate Fuel Savings:

($/MMBTU of Fuel) x (Average Economizer Heat Recovery) x (Operation Hours per Year)
(Boiler Efficiency without Economizer) x (1,000,000)

To Calculate Payback (in years):

(Cost of Economizer) + (Cost of Installation) - (Tax Credit)
(Annual Savings)

Example:

Fuel: Natural Gas
Economizer Heat Recovery: 3,500,000 BTU/hr
Operation Hours per Year: 8,000
Boiler Efficiency: 79%
Cost of Economizer: $15,750.00
Cost of Installation: $15,000.00
Tax Credit: $1,500.00

Fuel Savings:

($2.50/MMBTU) x (3,500,000 BTU/hr) x (8,000 hrs)  = $88,608 per year
(.79) x (1,000,000)                            

Payback:

($15,750) + ($15,000) - ($1,500)  =   0.33     Approximately 4 Months
($88,608)                                                             

 

Copyright 2000 by E-Tech, Inc.