LIFE CYCLE COST Optimizing Pump Systems Dr. Gunnar Hovstadius Dir. Technology ITT FT
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LIFE CYCLE COSTLIFE CYCLE COST Optimizing Pump Systems
Dr. Gunnar Hovstadius
Dir. Technology ITT FT
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All of us use LCC
PRICEPRICE
FUEL FUEL ECONOMYECONOMY
SAFETYSAFETY
DURABILITYDURABILITY
UTILITYUTILITY
MAINTENANCEMAINTENANCE
INSURANCE INSURANCE
PERFORMANCEPERFORMANCE
RESELL VALUERESELL VALUE
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Energy & Maintenance costs LCCLCC
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
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Pump LCC, 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 LCCLCC guidelines 2000 - Europump-HI “Pump Life CycleLife Cycle
CostsCosts-Global Best Practices” Guideline
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Hydraulic Institute - Europump
Life Cycle Cost (LCC)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
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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.Downtime
9%
Operating9%
Maintenance20%
Installation9% Pump
14%
Energy32%
Environmental
7%
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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
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APPENDIXES
A System Curves
B Pumping Output and System Control
C Pump Efficiencies
D Case History - Cost Savings
E Electrical Drivers and Transmissions
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MANUAL CALCULATION CHARTSystem 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 xWeighted average power x Average Operatinghours/ yr
3
- Operating cost/year: 4
- Average Maintenance cost (routinemaintenance/year):
5
- Down time cost/year: 6
-Other yearly costs : 7
-Sum of yearly costs : (3+4+5+6+7) 8
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MANUAL CALCULATION ....cont.
- Average Maintenance cost (routinemaintenance/year):
5
- Down time cost/year: 6
-Other yearly costs : 7
-Sum of yearly costs: (3+4+5+6+7) 8
- Present Value of yearly costs:(use discount factor, df, see figure 7.2)
Dfx8=9df=………..
- Decommissioning/disposal cost (final year): 10
- Present Value of final year costs:(use factor Cp/Cn, see figure 7.1)
Cp/Cnx10=11Cp/Cn=……….
Result:Present LCC-value(1+2+9+11):
of which present energy cost is: (3xdf)
and routine maintenance cost is: (5xdf)
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No. Industry/Application
Outline of Methodof Cost Saving
Type ofSaving
PaybackPeriod
Years
Life Cycle CostSaving
EURO/USD
Full Cost P.V
1 Building Services/ Air Conditioning
Comparison of 3installations:- 1 large pump with bypass
- 1 pump - throttle valvecontrolled
- 3 pumps variable speed
EnergyCost
-
-
-
-
47,800
70,400
29,300
38.300
2 Paper/Water CirculationPump
Install 2 pumps for the 2different duty cycleconditions.
Energy Cost 0.5 711,900 437,000
3 Chemical Processing/Condensate ExportPump
Trimmed impeller to matchactual duty requirements.
Followed by new smallermotor.
Energy andmaintenance.
0.06
3.1
107,000
8,600
82,200
5,900
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SYSTEMS, SYSTEMS, notnot pumpspumps 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.
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PUMPS and SYSTEM SIZINGEnergy to Energy to BurnBurn
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
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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)
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ENERGY
Efficient pumps & efficient systems =>
Specific Energy ( Wh/l pumped fluid )
Calculate specific energy for the system
and compare different solutions and
different components
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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
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LCCLCC ComparisonComparison - ExampleExample10 Year Pump Life: : 80% eff 60% eff
800 gpm @ 90 ft BHP 16.95 kw 22.60 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 Decommission 650 650
TOTAL LCCLCC Comparison $ 47,550 $66,550
Operating Savings $ 19,000Operating Savings $ 19,000
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LIFE CYCLE COSTLIFE CYCLE COST Customer 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
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•LIFE CYCLE COSTLIFE CYCLE COST Environmental ValueEnvironmental 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
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PUTTING LCCLCC 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
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LIFE CYCLE COSTLIFE CYCLE COST
ITT Industries ITT Industries EMBRACES LCC LCC AS A TOOL FOR SELECTING AN OPTIMAL SOLUTION TO CREATE ECONOMIC AND ENVIRONMENTAL VALUE OVER THE LIFE OF A SYSTEM
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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%