You are on page 1of 21

# Page 1 of 21

Introduction
This addendum summarizes some of the methodologies and equations used in 3E Plus. The
addendum provides background information for users who are interested in the technical foundations of
3E Plus. For a user to use 3E Plus, its not essential to understand the information in this document,
but it may be helpful. The addendum contains six sections, which are indexed below.

Section 1 Mathematical Model for Economic Thickness Determination 2
Section 2 Series Present Worth Factor for Fuel Inflation 12
Section 3 Heat Transfer Equations 14
Section 4 Dew Point Calculation 18
Section 5 Apparent Thermal Conductivity Equations 19
Section 6 Reduction of CO2, NOx, and Carbon Equivalent (CE) 21

Page 2 of 21
Section 1 Mathematical Model for Economic Thickness Determination
The list of factors that influence the economic thickness of industrial insulation is extremely long. In
order to develop a realistic model that contains a tractable number of input parameters, a limited
number of factors will be considered. The factors considered in the model of this report can be divided
into three general categories:
Insulation Related Costs
Insulation Cost
Insulation Maintenance
Heat Loss or Gain Related Costs
Equipment Cost
Energy Cost
Equipment Maintenance
Condenser Make-Up Water Cost
Tax Savings
Insulation Depreciation
Insulation Maintenance
Equipment Depreciation
Equipment Maintenance
Energy Cost
Condenser Make-Up Water Cost

Other factors such as property taxes on the increased value of insulation and plant equipment,
investment tax credits, and tax savings on interest on borrowed money are specifically ignored. There
may also be other factors that certain companies or analysts would add to this list. However, it is felt
that the factors given above certainly represent the major contributions to the total cost of owning a
piece of insulation, and that the computer economic thickness from this model is well within the
uncertainty associated with a more sophisticated model.

The factors that influence the economic thickness are similar for either the hot or cold surface models.
While heating plant equipment costs are important for hot surfaces, the chiller cost is the corresponding
cost for cold surfaces. The only cold surface factor that does not have an analogous hot surface term is
the condenser make-up water cost. For a water-driven condenser, the water evaporated into the
atmosphere must be replenished.

The total cost of owning a piece of insulation can be written as the sum of heat loss and insulation
related costs less any tax savings. Symbolically, this can be written as:

Insulation Related Cost
Total Cost = + Heat Flow Costs
Tax Savings

(1-1)

The economic thickness is defined as the insulation thickness that yields the minimum total cost of
owning insulation. Since money obviously has a time value, one must choose a particular time at which
costs are evaluated. The procedure adopted on this model is the Equivalent Uniform Annual Cost
(EUAC) method in which all costs are converted to an equivalent uniform annual cost by use of the
appropriate interest discount factors. This procedure is mathematically equivalent to the Present Value
or Future Value methods provided the time period chosen is the least multiple of the insulation life and
plant equipment life. Hereafter, the EUAC method will be referred to simply as the annual cost. The
remainder of this section will be devoted to a discussion of the equations used to calculate the annual
cost of the various factors that influence the economic thickness.

Page 3 of 21
Insulation Related Costs

Insulation Cost: The unit cost of insulation C
I
(\$/ft or \$/ft
2
) is already expressed as a present value. This
cost can be uniformly distributed over the life of the insulation by use of the series present worth factor,
(P/A,i,n
I
).

,
_

I
I
n i
A
P
C
A
, ,

(1-2)

Throughout this practice, the symbol A will represent any equivalent uniform annual cost.

For those readers unfamiliar with the concept of the series present worth factor, it can be thought of
conceptually as an "effective" life that considers the time value of money. For example, if money does
not have a time value, the (P/A,0,n
I
) = n
I
: it is obvious that the insulation cost has been divided into n
I

equal parts. In general, (P/A,i,n
I
) < n
I
with the difference between the two terms increasing as the
interest rate increases.

Insulation Maintenance: First year's insulation maintenance is assumed to be proportional to the initial
insulation cost. In each succeeding year the maintenance is allowed to inflate at the same rate as fuel.
It is probable that maintenance charges will not inflate at the same rate as fuel. However, it should be
closer to the fuel inflation rate than to zero. Rather than introduce a general inflation rate as an
additional input parameter, the fuel inflation rate is chosen as representative of the rate at which
insulation maintenance inflates. The resulting annual cost of insulation maintenance is

,
_

,
_

I
F I
MI I
n i
A
P
i n i
A
P
f C A
, ,
, , ,
0

(1-3)

The term (P/A
0
,i,n
I
,i
F
) is the series present worth factor that converts the annual (inflating) cost to a
present value and can also be thought of as an effective life. If the fuel inflation rate is zero, then
(P/A,i,n
I
,0) = (P/A,i,n
I
). If both interest rates are zero, then both series present worth factors are equal
to n
I
, and they simply cancel out. Additional information on this factor can be found in section 2.

Heat Related Costs

For any specified thickness, the heat loss, Q, (Btu/hr-ft or Btu/hr-ft
2
) can be calculated. The heat
producing equipment can have a life n
E
that is different from the insulation life n
I
.

Incremental Equipment Cost (Heating): The cost of adding an increment in heating capacity is specified
by the parameter m
E
, which represents the dollar investment in adding a 1,000,000 Btu/hr increase in
capacity. Since this quantity is already in present value terms, the series present worth factor must be
applied to convert this to an annual cost.

,
_

E
E
n i
A
P
Q m
A
, ,

(1-4)

Page 4 of 21
Note that the equipment life n
E
is used instead of the insulation life. Every effort should be made to
obtain a value that is representative for the particular project being analyzed. Since we have used an
incremental equipment cost equation, the total annual cost cannot be used in an absolute sense.

Energy Cost: Fuel prices are assumed to be inflating at a fixed annual rate of i
F
. If the present day fuel
price is C
Fo
(\$/1,000,000 Btu), the system operates H hours each year, and
E
is the thermal efficiency
at which fuel is converted to heat, then the annual cost of the lost energy is

,
_

,
_

I
F I
E
F
n i
A
P
i n i
A
P
QH
C A
, ,
, , ,
0
0

(1-5)

Equipment Maintenance: The annual equipment maintenance is assumed to be proportional to the cost
of the annual heat loss or gain. Since the fuel cost is inflating at an annual rate of i
F
, the equipment
maintenance also inflates at the same rate.

,
_

,
_

I
F I
E
F
ME
n i
A
P
i n i
A
P
QH C
f A
, ,
, , ,
0 0

(1-6)

Tax Savings for Hot Surfaces

Maintenance, fuel costs, and depreciation all produce savings from the point of view of federal income
taxes. Operating expenses for a business are subtracted from the gross income in order to determine
the taxable income.
TAXABLE INCOME = GROSS INCOME - EXPENSES
The reduction in federal income tax due to expenses is simply the effective tax rate times the expenses.
INCOME TAXES = (TR)(GROSS INCOME - EXPENSES)

Insulation Depreciation: Straight-line depreciation will be assumed. This procedure allows an annual
deduction of C
I
/n
I
from gross income for a tax savings of

( )
I
I
n
C
TR A
(1-7)

Insulation Maintenance: The annual insulation maintenance cost is simply multiplied by the effective tax
rate.

( )

,
_

,
_

I
F I
MI I
n i
A
P
i n i
A
P
f C TR A
, ,
, , ,
0

(1-8)

Page 5 of 21
Equipment Depreciation: Assuming straight-line depreciation, this becomes

( )
E
E
Q
m TR A

(1-9)

Equipment Maintenance: The annual equipment costs are multiplied by the effective tax rate.

( )

,
_

,
_

I
F I
E
F
ME
n i
A
P
i n i
A
P
QH C
f TR A
, ,
, , ,
0 0

(1-10)

Energy Cost: The annual energy costs are multiplied by the effective tax rate

( )

,
_

,
_

I
F I
E
F
n i
A
P
i n i
A
P
QH
C TR A
, ,
, , ,
0
0

(1-11)

As can be readily seen, the tax rate has a very strong effect. For example, with a tax rate of 48%,
natural gas at \$2.00/MMBtu effectively costs only (1 - 0.48) X \$2.00 or \$1.04/MMBtu. The federal
income tax structure discourages the application of insulation. If the tax savings are subtracted from
the insulation and heat loss related costs, the net annual cost can be written as

( )
( )( )
1
1
]
1

+
,
_

,
_

,
_

,
_

+
1
1
1
1
1
]
1

,
_

,
_

+
,
_

ME I F I
E
f
E
E E
I
I
F I
MI I I
f TR n i
P
A
i n i
A
P H
C
n
TR
n i
P
A
m Q
n
TR
n i
A
P
i n i
A
P
f TR n i
P
A
C A
1 1 , , , , , , ,
, ,
, , ,
1 , ,
0
0
0

(1-12)

The above equation can be written more compactly as

bQ aC A
I
+ (1-13)

Where the factors a and b are independent of insulation thickness.

The procedure for determining the economic thickness is to evaluate the annual cost for each discrete
insulation thickness (including zero thickness) and to choose the thickness that gives the minimum
annual cost. Since most commercial and industrial insulations are only available in nominal thickness
increments of one-half inch, there appears to be little value in determining the precise insulation
thickness that minimizes Equation 1-12 for two reasons. One, the minimizing thickness is probably not
commercially available. Second, the cost versus thickness relationship is not known analytically. The
most important terms that contribute the greatest amount to the total annual cost, are (a) insulation cost
and depreciation, (b) energy cost and its tax savings, (c) insulation maintenance, and (d) equipment
maintenance, with the latter two terms being an order of magnitude smaller than the first two terms.

Page 6 of 21
Discounted Payback Period

The concept of payback period is often used in judging the merits of an economic venture. In its
simplest form, payback period is the time required for the savings resulting from an investment to repay
the cost of the investment. For the case of thermal insulation, the savings is the economic value of the
reduction in heat loss or gain due to increased insulation, while the cost of the investment is the
insulation cost. If one ignores the time value of money and any inflation, the resulting payback period is
termed simple payback period. The discounted payback period considers the time value of money and
any anticipated inflation costs. Some care is necessary in precisely defining the energy savings and
insulation cost. For the model presented in this report, all costs and savings will be expressed in
present value terms. The present value of the savings is the difference between the present value of
the cost for two different alternatives, A and B.

PV Savings = (PV Cost)
A
(PV Cost)
B
(1-14)

Alternative A will generally be the "bare pipe" condition for a new job. However, there may be instances
where this is not true. Alternative B will be whatever insulation thickness is under consideration.
Therefore, one can calculate savings for each thickness of additional insulation that is greater than the
reference thickness. The annual cost equations used to develop the economic thickness model can be
used as a guide for the payback period model. To convert a uniform annual cost to a present value,
multiply by the series present worth factor (P/A,i,n
p
) where n
p
is the payback period in years. Realizing
that the insulation cost increment is C
I
= C
I
- C
R
and that Q is the heat savings due to insulation, then
the present value of the savings can be written as

( )( )
( )
1
1
1
1
]
1

,
_

,
_

+
1
1
1
1
1
]
1

,
_

,
_

,
_

I
P
F P MI I
F P
E
f
ME
E
P
E
n
n i
A
P
TR i n i
A
P
f TR C
i n i
A
P H C
TR f
n
n i
A
P
TR m Q Savings PV
, ,
, , , 1 1
, , , 1 1
, ,
1
0
0
0

(1-15)

The payback period will be the value of np that produces the Present Value of the Savings (PV
SAVINGS) equal to zero. In other words, the present value of the heat loss related savings equals the
present value of the insulation-related costs. Note that all of the tax savings appear as reductions in
both the heat loss related savings and insulation related savings. The equipment and insulation life
appear only in the depreciation terms. The unknown discounted payback period n
p
appears in the
various series present-worth factors. Since Equation 1-15 is non-linear in the payback period, some
type of iterative procedure is necessary in order to solve for n
p
. A bisection method for solving non-
linear algebraic equations was chosen for this procedure. The method requires an initial guess of the
payback period and is obtained from the simple payback period. For I = i
F
= 0, both of the series
present worth factors in Equation 1-15 are equal to n
p
. Solving for the value of n
p
that yields
PV Savings = 0, one obtains

( )( ) ( )
1
]
1

1
]
1

+ +

I
MI I
E
f ME
E
E
E I
P
n
TR
f TR C
H
C TR f
n
TR
m Q
Q m C
n
1 1 1
0

(1-16)

Page 7 of 21
If income tax, maintenance, and incremental plant equipment are ignored, the simple
payback period reduces to the familiar

H
QC
C
n
f
I
P
0

A problem occurs when the operating temperature approaches the ambient temperature. In some
cases, the iteration procedure will not converge. In this case, the program substitutes the simple
payback period. Typically this number is longer than the project life.

It must be realized that equation 1-15, in general, plots as a quadratic. Since a negative payback period
has no physical meaning, the program sets it equal to zero if it is found to be negative. The discounted
payback period and the simple payback period are very close for situations in which the payback period
is relatively short or the time value of money is relatively unimportant for short time periods.

The payback period generally increases with increasing insulation thickness. This might suggest trying
to minimize the payback period. However, this is an erroneous concept. The payback period concept
ignores any benefits that occur after the initial investment has been repaid. Although payback period
has some uses, it should never be used as the sole indicator of how much insulation to apply.

The present value of the fuel savings for the life n
I
is often of interest. This quantity can be calculated
from Equation 1-15 if replaced by n
I
and set C
I
= 0.

Heat Gain Related Costs

Cold surfaces are different from hot surfaces in that condensation control must be considered in
addition to the economic thickness. If the outer surface temperature of the insulation system is below
the design dew point temperature, then condensation can occur. Since water degrades the thermal
performance of insulation and reduces its expected life, this condition must be avoided. If the
condensation control thickness exceeds the economic thickness, then the condensation control
thickness should be applied. If the condensation control thickness is smaller than the economic
thickness, then the economic thickness should be applied. See Section 3 for a discussion about dew
point calculations.

Incremental Equipment Cost (Cooling): In the design of new systems, the addition of insulation can
cause a reduction in the required chiller capacity. The cost model of this practice assumes that the
chiller incremental cost varies linearly with the heat gain of the cold line.

Since we are always comparing the total annual cost of two different insulation thicknesses, any costs
that are independent of insulation thickness will simply cancel out in the analysis. Therefore, the chiller
cost will be the cost of adding an increment in chiller capacity

,
_

C
c
n i
A
P
Q
m A
, ,

(1-17)

where m
c
is the incremental cost of increasing the chiller capacity. The computer input will be in the
form of \$/1,000,000 Btu/hr. For example, suppose that a 100-ton unit costs \$70,000 and a 150-ton unit
costs \$100,000. The incremental chiller cost will be

( )( ) hr MMBtu
m
c
/
50
\$
12 100 150
000 , 70 000 , 100

Page 8 of 21
If an absorption type chiller is used instead of an electric driven chiller, then m
c
should also include the
incremental heating plant cost if applicable.

Energy Cost: For the most general case of an absorption chiller, the efficiency of the heat source (
E
)
and the chiller coefficient of performance (COP) influence the energy consumption. If today's fuel price
(C
f0
) is inflating at an annual rate of i
F
, the annual cost is

,
_

,
_

I
F I
C
F
n i
A
P
i n i
A
P
COP
QH
C A
, ,
, , ,
0
0

(1-18)

Chiller Maintenance: The annual chiller maintenance is assumed to be proportional to the cost of the
annual heat gain. Since fuel costs are inflating at an annual rate of i
F
, the chiller maintenance also
inflates at the same rate.

,
_

,
_

I
F I
C
F MC
n i
A
P
i n i
A
P
COP
QH
C f A
, ,
, , ,
0
0

(1-19)

Condenser Make-Up Water (Incremental): The condenser make-up water requirements are assumed to
be proportional to the chiller capacity. Since we are looking at incremental costs, the incremental make-
up water costs can be written as

,
_

,
_

I
W I
W
n i
A
P
i n i
A
P
BQHC A
, ,
, , ,
0
0

(1-20)

The 2000 ASHRAE Systems Handbook recommends B = 3.2 gal/ton-hr for electric driven systems and
6.2 gal/ton-hr for absorption systems (6.2 is the default). Note that the water costs are allowed to inflate
at an annual rate of i
w
.

Tax Savings for Cold Surfaces

All maintenance, fuel cost, water cost, and depreciation factors produce tax savings of the effective tax
rate times the appropriate costs.

Insulation Depreciation:

( )
I
I
n
C
TR A
(1-21)

Page 9 of 21
Insulation Maintenance:

( )

,
_

,
_

I
F I
MI I
n i
A
P
i n i
A
P
f C TR A
, ,
, , ,
0

(1-22)

Chiller Depreciation:

( )
C
C
n
Q
m TR A
(1-23)

Chiller Maintenance:

( )

,
_

,
_

I
F I
E
f MC
n i
A
P
i n i
A
P
COP
QH
C f TR A
, ,
, , ,
0
0

(1-24)

Energy Cost:

( )

,
_

,
_

I
F I
E
f
n i
A
P
i n i
A
P
COP
QH
C TR A
, ,
, , ,
0
0

(1-25)

Condenser Water Make-Up Cost:

( )

,
_

,
_

I
W I
W
n i
A
P
i n i
A
P
BQHC TR A
, ,
, , ,
0
0

(1-26)

The net annual cost is obtained by subtracting the tax savings from the sum of the insulation and heat
gain related cost:

( )
( )( )
( )
1
1
]
1

,
_

,
_

+
,
_

,
_

,
_

,
_

+
1
1
1
1
1
]
1

,
_

,
_

+
,
_

I W I W
MC I F I
E
f
C
C C
I
I
F I
MI I I
n i
P
A
i n i
A
P
BH C TR
f TR n i
P
A
i n i
A
P
COP
H
C
n
TR
n i
P
A
m Q
n
TR
n i
A
P
i n i
A
P
f TR n i
P
A
C A
, , , , , 1
1 1 , , , , , , ,
, ,
, , ,
1 , ,
0
0
0
0
0

(1-27)

Page 10 of 21
The previous equation can be written more compactly as

bQ aC A
I
+ (1-28)

where the factors a and b are independent of insulation thickness.

Discounted Payback Period for Cold Surfaces

The discounted payback period is significant only for the economic thickness condition; if the
condensation control thickness exceeds the economic thickness, then payback period has no meaning.
If the reference condition is bare pipe for a new job or heat gain through existing insulation for a retrofit
job, the present value of the savings can be written as:

( )( )
( )
( )
1
1
1
1
]
1

,
_

,
_

+
1
1
]
1

,
_

,
_

,
_

,
_

I
P
F P MI I
W P W
F P
E
f
MC
C
P
C
n
n i
A
P
TR i n i
A
P
f TR C
i n i
A
P
BH C TR
i n i
A
P
COP
H C
TR f
n
n i
A
P
TR m Q Savings PV
, ,
, , , 1 1
, , , 1
, , , 1 1
, ,
1
0
0
0
0
0

(1-29)

Zero additional insulation thickness may be an acceptable engineering solution for hot surface
conditions, provided personnel protection is not important. However, for cold surfaces the minimum
allowable thickness is the condensation control thickness. If the condensation control thickness
exceeds the economic thickness, then the payback period is not defined. Using this concept, the
present value of the savings can be written as:

( )( )
( )
( )
1
1
1
1
]
1

,
_

,
_

+
1
1
]
1

,
_

,
_

,
_

,
_

I
P
F P MI I
W P W
F P
E
f
MC
C
P
C
n
n i
A
P
TR i n i
A
P
f TR C
i n i
A
P
BH C TR
i n i
A
P
COP
H C
TR f
n
n i
A
P
TR m Q Savings PV
, ,
, , , 1 1
, , , 1
, , , 1 1
, ,
1
0
0
0
0
0

(1-30)

where C
I
= C
I
-C
IR
. If the reference condition is bare pipe then, C
IR
= 0 and Equation 1-30 reduces to
Equation 1-29.

In some cases, some thickness may have zero payback periods! At first glance this may seem to
indicate that all of the thicknesses will pay for themselves immediately. In reality, by defining the

Page 11 of 21
discounted payback period as we have, we have allowed a mathematical quirk to occur. There may be
cases where the correct value for n
P
in equation 1-28 is actually negative. This quantity then has no
physical meaning, but is mathematically correct. If this occurs, the computer program automatically sets
the payback period to zero. A negative value for n
P
can be caused when the costs associated to
energy are much greater than the costs associated with insulation. It must be realized that equation 1-
30 plots as a quadratic. The relative costs of energy and insulation will determine where the curve
crosses the time axis.

Section 1 List of Symbols

n
E
Life (or remaining life if retrofit) of heating plant, years
m
I
Life of insulation, years
Q Heat loss/gain, Btu/hr-ft, or Btu/hr-ft
2

m
E
Dollar investment in adding a 1,000,000 Btu/hr increase in physical capacity, \$/1,000,000 Btu/hr
C
f0
Present day fuel price, \$/1,000,000 Btu
i
f
Fuel inflation rate, (% per year)
n
E
Heat conversion efficiency in plant, %
H Annual hours of operation, hours
f
ME
Percentage of fuel cost that is spent each year for physical plant maintenance, %
I After tax rate-of-return, %
TR Effective income tax rate, %
a,b Constants independent of insulation thickness
Q Heat savings due to additional insulation, Btu/unit area
C
I
Increment in insulation cost, \$/unit area
n
p
Payback period, years
A Annual Cost
B Water operated condenser factor, gal/ton-hr
C
I
Initial installed cost of insulation, \$/ft or \$/ft
2

COP Coefficient of performance of the refrigeration system
C
w0
Present day cost of condenser make-up water, \$/Mgal
f
MI
Fraction of initial insulation cost spent each year on insulation maintenance, %
i
w
Inflation rate of the cost of condenser make-up water, %
m
c
Dollar investment in adding a 1,000,000 Btu/hr increase in capacity of the chiller, \$/MMBtu/hr
(A/P,i,n
I
) Capital recovery factor
(P/A,i,n
I
,i
F
) Series present worth factor accounting for inflation
(P/A,i,n
I
) Series present worth factor not accounting for inflation
PV Savings Present Value of Savings, \$

Page 12 of 21
Section 2 Series Present Worth Factor for Fuel Inflation
In the cost model for determining the economic thickness of insulation, it is necessary to convert a
sequence of annual fuel payments into a uniform annual amount. For the model adopted in 3E Plus, the
fuel costs are allowed to inflate at a constant annual rate of i
F
. If today's fuel price is C
0
, then the fuel
price for any arbitrary year j can be written as

( ) n n j i C C
j
F j
, 1 , , 2 , 1 , 1
0
+ K
(2-1)

In order to convert the above sequence of payments to an equivalent uniform annual cost, one first
converts each annual payment to a present value; second, one determines the sum of all the individual
present value terms; and then, one converts the total present value to a uniform annual cost by use of
the capital recovery factor. Assuming a time value of money of I, the present value of all the fuel
payments can be written as:

( )
( )
( )
j
n
j
F
n
j
j
j
n
j
j
i
i
C
i C
j i
F
P
C PV

1
]
1

+
+

,
_

1
0
1
1
1
1
1
, ,

(2-2)

The above series can be written in simpler form by using the geometric series results:

( )
( )
1
1
1
1
1
1
1
1
0

,
_

+
+

,
_

+
+
+
+

i
i
i
i
i
i
C PV
F
n
F
F

(2-3)

Thus for convenience, one can define an inflating series present worth factor by:

( )
( ) 1
1
1
1
1
1
1
1
, , ,
0

,
_

+
+
+

,
_

+
+
+

,
_

i
i
i
i
i
i
i n i
A
P
F
n
F
F
F

(2-4)

The subscript "0" on A
0
denotes that today's fuel price is used instead of the end of the year fuel price.
If the yearend fuel price were given, Equation 2-4 would have to be modified (see White, Agee, and
Case for details). If fuel is inflating at the same rate as the time value of money, their effects simply
cancel and one obtains:

n i n i
A
P

,
_

, , ,
0

(2-5)

If the fuel inflation rate is zero, Equation 2-4 reduces to the familiar series present worth factor:

,
_

,
_

n i
A
P
n i
A
P
, , 0 , , ,
0 0

(2-6)

Page 13 of 21
For those readers unfamiliar with the series present worth factor, it can be thought of conceptually as
an "effective life" that considers the time value of money. If there is no inflation or time value of money

n n
A
P
n
A
P

,
_

,
_

, 0 , 0 , , 0 ,
0

(2-7)

In general,

n I n i
A
P
F

,
_

, , ,
0

(2-8)

for all values of I. For the inflating series present worth factor,

i i for n i n i
A
P
F F

,
_

, , ,
0

(2-9)

or

i i for n i n i
A
P
F F

,
_

, , ,
0

(2-10)

Thus, the present value of fuel costs is converted to a uniform annual amount by dividing by the capital
recovery factor or equivalently dividing by the series worth factor.

,
_

,
_

n i
A
P
i n i
A
P
C A
F
, ,
, , ,
0
0

(2-11)

Page 14 of 21
Section 3 Heat Transfer Equations
The equations used for calculating heat transfer and various temperatures in 3E Plus are presented in
this section. The equations are based on ASTM C 680 with modifications to the calculation of surface
convection. These modifications agree with practices commonly used, and its important to note that
the modifications are currently under review by ASTM Task Group TG-5.2.

Background Information

Heat transfer through insulation on flat systems can be calculated using

( )
( )
s
A P
R R
t t
A
Q
+

(3-1)

where Q/A (also known as q) is the heat flux or heat transfer per unit area, t
P
is the process
temperature, t
A
is the ambient temperature, R is the thermal resistance of the insulation(s), and R
s
is the
outer-surface resistance. R and R
s
can be defined as

o
S
n
j j
j
h
R
k
x
R
1
;
1

(3-2)

where x
j
is the insulation thickness of layer j, k
j
is the apparent thermal conductivity of insulation j, and
h
o
is the outer-surface conductance that combines the effects of radiant and convective heat transfer.
NOTE: it is assumed that the surface resistance on the process-temperature side is sufficiently small in
comparison to the other resistances, so it is excluded. In addition, the program includes the conductive
resistance of the equipment/pipe, and that resistance is used in the calculation of both bare and
insulated heat transfer.

For further discussion of the conductive heat transfer through the insulation, please consult ASTM C
680, since the program is based on ASTM C 680. Where the program deviates from ASTM C 680, is in
the calculation of h
o
. As stated earlier h
o
represents the outer-surface conductance, which is a
combination of radiant and convective heat transfer, so

c r o
h h h + (3-3)

r
, is calculated using the Stefan-Bolzmann equation:

o s
o s
r
T T
T T
h

) (
4 4

(3-4)

where
= effective surface emittance between outside surface and the ambient surroundings,dimensionless;
= Stefan-Bolzmann constant, 0.1714 10
-8
Btu/(hft
2
R
4
) (5.6697 10
-8
W/(m
2
K
4
))
T
s
= absolute surface temperature, R (K); and,
T
o
= absolute surroundings temperature, R (K). The program assumes that the ambient air is the
same temperature, so T
a
= T
o
.

Page 15 of 21
The convective component, h
c
, is calculated based on dimensionless groups defined for fluids in
contact with solid surfaces.

The dimensionless numbers are:

Nusselt,
f
c
L
k
L h
Nu or
f
c
D
k
D h
Nu ;

(3-5)

Rayleigh,
f
p
L
k
L T c g
Ra

3
) (
or
f
p
D
k
D T c g
Ra

3
) (
;

(3-6)

Reynolds,

VL
L
Re or

VD
D
Re ;

(3-7)

Prandtl,
f
p
k
c

Pr ;

(3-8)

where,
L = characteristic dimension for horizontal flat surfaces (hydraulic length), vertical
walls (height) and vertical cylinders (height).
D = characteristic dimension for horizontal cylinders (diameter) and spheres (diameter).
c
p
= specific heat of ambient fluid, Btu/(lb.R) (J/(kgK))
h
c
= average convection conductance, Btu/(hft
2
F) (W/(m
2
K))
k
f
= thermal conductivity of ambient fluid, Btu/(hftF) (W/(mK))
V = free stream velocity of ambient fluid, ft/h (m/s)
= kinematic viscosity of ambient fluid, ft
2
/h (m
2
/s)
g = acceleration due to gravity, ft/h
2
(m/s
2
)
= volumetric thermal expansion coefficient of ambient fluid, R
-1
(K
-1
)
= density of ambient fluid, lb/ft
3
(kg/m
3
)
T = absolute value of temperature difference between surface and ambient fluid, R (K).

It needs to be noted that the above fluid properties must be calculated at the film temperature, T
f
, which
is the average of surface and ambient fluid temperatures. For this practice, it is assumed that the
ambient fluid is dry air at atmospheric pressure. The properties of air can be found in references such
as Tables of Thermodynamic and Transport Properties of Air... in NBS Circular 564 U.S. Dept. of
Commerce by Hilsenrath, et al.

Also, for each geometric shape and surface orientation the overall average Nusselt number is to be
computed from the average Nusselt number for forced convection and the average Nusselt number for
natural convection. The relationship is

( ) ( ) ( )
j
n
j
f
j
Nu Nu Nu +
(3-9)

where the exponent, j, and the constant, , are defined based on the geometry and orientation.

Page 16 of 21
Flat Surface Convection Calculations

Forced Convection From Heat Transfer by Churchill and Ozoe as cited in Fundamentals of Heat and
Mass Transfer (p. 354) by Incropera and Dewitt the relation for forced convection by laminar flow over
an isothermal flat surface is

4 / 1 3 / 2
3 / 1 2 / 1
,
] Pr) / 0468 . 0 ( 1 [
Pr Re 6774 . 0
+

L
L f Nu
5
10 5 Re <
L

(3-10)

For forced convection by turbulent flow over an isothermal flat surface Incropera and Dewitt (p. 356)
suggest the following:

3 / 1 5 / 4
, Pr ) 871 Re 037 . 0 (
L
L f Nu
8 5
10 Re 10 5 < <
L
(3-11)

NOTE: It is assumed in 3E Plus that normal conditions do not exceed the upper bound for Re
L
.

Natural (Free) Convection In Correlating Equations for Laminar and Turbulent Free Convection
from a Vertical Plate by Churchill and Chu as cited by Incropera and Dewitt (p. 493) it is suggested for
natural convection on isothermal, vertical flat surfaces that

2
27 / 8 16 / 9
6 / 1
,
] Pr) / 492 . 0 ( 1 [
387 . 0
825 . 0

'

+
+
L
L n
Ra
Nu

All Ra
L

(3-12)

For slightly better accuracy in the laminar range, it is suggested by the same source (p. 493) that

9 / 4 16 / 9
4 / 1
,
] Pr) / 492 . 0 ( 1 [
670 . 0
68 . 0
+
+
L
L n
Ra
Nu

Ra
L
< 10
9

(3-13)

In the case of vertical surfaces the characteristic dimension is the vertical height. To compute the
overall Nusselt number, set j = 3 and = 0 in equation 3-9. Also, it is important to note that the free
convection correlations apply to vertical cylinders in most cases.

For natural convection on horizontal flat surfaces Incropera and Dewitt (p. 498) cite Heat Transmission
by McAdams, Natural Convection Mass Transfer Adjacent to Horizontal Plates by Goldstein, Sparrow
and Jones and Natural Convection Adjacent to Horizontal Surfaces of Various Planforms by Lloyd and
Moran for the following correlations:

Heat flow up:

Heat flow down:

4 / 1
, 54 . 0
L
L n Ra Nu

3 / 1
, 15 . 0
L
L n Ra Nu

4 / 1
, 27 . 0
L
L n Ra Nu
7 4
10 10 < <
L
Ra

11 7
10 10 < <
L
Ra

10 5
10 10 < <
L
Ra

(3-14)

In the case of horizontal flat surfaces the characteristic dimension is the area of the surface divided by
the perimeter of the surface. To compute the overall Nusselt number, set j = 3.5 and = 0 in equation
3-9.

Page 17 of 21
Cylindrical (Pipe) Convection Calculations

Forced Convection For forced convection with fluid flow normal to a circular cylinder Incropera and
Dewitt (p. 370) cite Heat Transfer by Churchill and Bernstein for the following correlation:

5 / 4
8 / 5
4 / 1 3 / 2
3 / 1 2 / 1
,
000 , 282
Re
1
] Pr) / 4 . 0 ( 1 [
Pr Re 62 . 0
3 . 0
1
1
]
1

,
_

+
+
+
D D
D f Nu

Re
D
Pr > 0.2

(3-13)

Natural (Free) Convection As stated earlier, for natural convection on vertical cylinders use
equations 3-12 & 3-13. For natural convection on horizontal cylinders Incropera and Dewitt (p. 502) cite
Correlating Equations for Laminar and Turbulent Free Convection from a Horizontal Cylinder by
Churchill and Chu for the following correlation:

2
27 / 8 16 / 9
6 / 1
,
] Pr) / 559 . 0 ( 1 [
387 . 0
60 . 0

'

+
+
D
D n
Ra
Nu

Ra
D
< 10
12

(3-13)

For slightly better accuracy in the laminar range, Churchill and Chu suggest

9 / 4 16 / 9
4 / 1
,
] Pr) / 559 . 0 ( 1 [
518 . 0
36 . 0
+
+
D
D n
Ra
Nu

Ra
D
< 10
9

(3-13)

Finally, to compute the overall Nusselt number using equation 3-9, set j = 4 and = 0.3.

References

Although the primary resources for this section are Fundamentals of Heat and Mass Transfer and
ASTM C 680, it is important to note some of the cited resources.

1. Incropera, F.P., and DeWitt, D.P., Fundamentals of Heat and Mass Transfer, 4
th
ed., John Wiley &
Sons, 1996 (various pages are cited in this document).
2. Standard Practice for Determination of Heat Gain and the Surface Temperature of Insulated Pipe
and Equipment Systems by the use of a Computer Program, ASTM C 680, Available from ASTM,
3. Churchill, S.W., and H. Ozoe, J. Heat Transfer, Vol. 78, p. 95, 1973.
4. Churchill, S.W., and H.H.S. Chu, Correlating Equations for Laminar and Turbulent Free Convection
from a Vertical Plate, Int. J. Heat Mass Transfer Vol. 18, p. 1323, 1975.
5. McAdams, W.H., Heat Transmission, 3
rd
ed., McGraw-Hill, New York, 1954, Chap. 7.
6. Goldstein, R.J., E.M. Sparrow, and D.C. Jones, Natural Convection Mass Transfer Adjacent to
Horizontal Plates, Int. J. Heat Mass Transfer, Vol. 16, p. 1025, 1973.
7. Lloyd, J.R., and W.R. Moran, Natural Convection Adjacent to Horizontal Surfaces of Various
Planforms, ASME Paper 74-WA/HT-66, 1974.
8. Churchill, S.W. and M. Bernstein, J. Heat Transfer, Vol. 99, p. 300, 1977.
9. Churchill, S.W., and H.H.S. Chu, Correlating Equations for Laminar and Turbulent Free Convection
from a Horizontal Cylinder, Int. J. Heat Mass Transfer, Vol. 18, p. 1049, 1975.

Page 18 of 21
Section 4 Dew Point Calculation
The dew point for a mixture of air and water vapor is defined as the temperature where the water vapor
condenses when cooled at constant pressure. The dew point can easily be determined from the
relative humidity and the design ambient temperature. The relative humidity () is the ratio of the partial
pressure of the water vapor as is exists in the mixture (P
v
) to the saturation pressure at the same
temperature (P
g
).

g
v
P
P

(4-1)

The variation of the saturation pressure with temperature must be determined experimentally. A
convenient empirical relationship is the Goff equation

( ) ( )
( )
( ) 2195983 . 2 1 10 10 42873 . 0
10 1 10 0574 . 1 02802 . 5 1 79586 . 10
1 76955 . 4 3
1
1
29692 . 8
4
+

,
_

+ +

,
_

LOG P LOG

(4-2)

where P is the vapor pressure in atmospheres and = 273.16/T with T in K. This relationship is valid
over the temperature range of 58F to 212F. In terms of temperature (F):

( )
,
_

+

16 . 273 32
9
5
16 . 273
T

(4-3)

The calculation procedure is as follows:
1. Use equation 4-2 to determine P
g
corresponding to t
a

2. Use equation 4-1 to determine P
v

3. Solve equation 4-2 for
dp
using an iterative solution for non-linear equations.
4. Solve equation 4-3 for T
dp

When solving step 3 a variation of Newtons method is used to accelerate convergence. Convergence
occurs rapidly, because log P is nearly a linear function of temperature of the practical range of interest.

Page 19 of 21
Section 5 Apparent Thermal Conductivity Equations
The thermal conductivity file supplied with the 3E Plus program includes the apparent thermal
conductivity equations of several generic types of thermal insulation. These equations are derived from
ASTM material specifications.

Material and
Equation
Maximum Use
Temp. (F)
450F M F BOARD ASTM C612-00a T1B

2 7 4
10 404277 . 7 10 426568 . 4 2208473 .
m m
t t k + +

450
850F M F BOARD ASTM C612-00a T2

2 6 4
10 064601 . 1 10 292883 . 4 215392 .
m m
t t k + +

850
1000F M F BOARD ASTM C612-00a T3

2 6 4
10 408288 . 1 10 572084 . 2 2301582 .
m m
t t k + +

1000
1200F MF BOARD ASTM C612-00a T4B

2 7 4
10 9.361318 10 1.073707 .2247394
m m
t t k + +

1200
1800F M F BLOCK ASTM C612-00a T5

2 7 4
10 2.618991 10 7.166724 .1928559
m m
t t k + +

1800
450F M F BLANKET ASTM C553-00 T2

2 6 4
10 2.487349 10 3.556493 .2694291
m m
t t k + +

450
850F M F BLANKET ASTM C553-00 T4

2 6 4
10 1.276007 10 3.1274 .2230754
m m
t t k + +

850
1000F MF BLANKET ASTM C553-00 T5

2 6 4
10 2.952804 10 2.522329 .2739618
m m
t t k + +

1000
1200F MF BLANKET ASTM C553-00 T7

2 6 4
10 1.611744 10 1.312481 .2396443
m m
t t k + +

1200
MF Metal Mesh BLANKET C592-00 T2

2 7 4
10 7.023157 10 4.691053 .2053742
m m
t t k + +

1200
650F Min. Fiber P&Tank C1393-00a

2 6 4
10 1.66661 10 822843 . 2 .2448986
m m
t t k + +

650
850F Min. Fiber P&Tank C1393-00a

2 7 4
10 6.694144 10 5.229674 .2290639
m m
t t k + +

850
1000F Min.Fiber P&Tank C1393-00a

2 7 4
10 3.028062 10 5.297851 .2414944
m m
t t k + +

1000
850F Mineral Fiber PIPE C547-95

2 6 4
10 1.142861 10 2.94283 .2080004
m m
t t k + +

850
1200F Mineral Fiber PIPE C547-95

2 7 4
10 6.785715 10 3.17857 .2142858
m m
t t k + +

1200

Page 20 of 21

Material and
Equation
Maximum Use
Temp. (F)
CalciumSilicate BLK+PIPE C533-99

2 8 4
10 7.142491 10 4.585749 .3554278
m m
t t k + +

1200
Perlite BLOCK+PIPE ASTM C610-99

2 7 4
10 2.678513 10 4.246484 .451856
m m
t t k + +

1200
Melamine PIPE+FLAT ASTM C1410-98

2 6 4
10 1.591361 10 2.921287 .2691389
m m
t t k + +

350
Phenolic SHEET+TUBE C1126-98 Gr2

2 6 4
10 1.28389 10 3.870224 .192792
m m
t t k + +

257
Polyolefin SHT+TUBE C1427-99a G1

2 8 4
10 8.750668 10 3.254081 .3281455
m m
t t k + +

200
PIR(-50 to 50F MEAN)ASTMC591-00

2 12
10 8.583068 .0002 - .18
m m
t t k

50
PIR (> 50F MEAN) ASTM C 591-00

2 7 4
10 4.293448 10 5.858669 .1405089
m m
t t k +

300
1.6#Polystyrene SHT ASTM C578-99

2 7 4
10 1.390192 10 4.060314 .1686797
m m
t t k + +

165
Elastomeric SH+TUBE ASTM C534-99

2 7 4
10 3.599066 10 2.990193 .277474
m m
t t k + +

220
MF Metal Mesh BLANKET C592-00 T2

2 7 4
10 7.023157 10 4.691053 .2053742
m m
t t k + +

1200
Cellular Glass PIPE C552-00 Gr 2

2 6 4
10 1.000015 10 4.399919 .3550009
m m
t t k + +

800
Cellular Glass BOARD C552-00 Gr2

2 7 4
10 7.905024 10 4.738999 .3117792
m m
t t k + +

800
MF Insulat'g CEMENT ASTM C195-00

2 7 4
10 7.252833 10 1.060789 .6976953
m m
t t k +

1900
Insul+Finish CEMENT ASTM C449-00

2 6 3
10 3.749988 10 3.499989 .3500023
m m
t t k +

1200

Page 21 of 21

Section 6 Reduction of CO
2
, NO
x
, and Carbon Equivalent (CE)

3E Plus calculates heat transfer for a given system. From this heat transfer, the program calculates
greenhouse gas emissions by multiplying the heat transfer and an EPA factor for a given fuel. NOTE: If
the user selects OTHER as the fuel type, the emissions are not calculated because the EPA factor is
unknown. Also, when the fuel choice is electricity, the program adjusts for delivered electricity ratio by
multiplying Q times 2.95. The equation used to calculate emissions is

( )
Efficiency
Value EPA Q
Emission
* 000 , 000 , 1
*

(6-1)

where Q is in Btu/hr/unit, and EPA Value is in lbs./Btu. The table below presents the EPA Values for
CO
2
and NO
x
. Carbon Equivalent is calculated based on its molecular weight ratio to CO
2
. The ratio is
12/44, so

Emissions Emissions
CO CE 2 *
44
12

(6-2)

Energy Source CO2 Emissions NOx Emissions
Natural Gas 109 lbs. per MM Btu 0.23369 lbs. per MM Btu
Fuel Oil 164 lbs. per MM Btu 0.266759 lbs. per MM Btu
LPG 137 lbs. per MM Btu 0.21 lbs. per MM Btu
Coal 207 lbs. per MM Btu 0.570997 lbs. per MM Btu
Electricity 155 lbs. per MM Btu 0.338189 lbs. per MM Btu
Year 2000 Data outsourced from GPRA data call by ADL for DOE and EPA