COURSE TITLE - INDUSTRIAL HEAT RECOVERY

PRESENTED BY : UFUOMA EBENE PHILIP

DATE : 21 NOVEMBER, 2023
STUDENT NUMBER: 33058102

ON

FEASIBILITY STUDY ON THE TECHNICAL

APPRAISAL GIVEN BY, Turboden Ltd AN ORC
CONTRACTOR FOR RECOMMENDATIONS AND
COMMISSIONING DECISION BY Beatson Clark A
GLASS RECYCLING AND MANUFACTURING
COMPANY
 Introduction
 Organic Rankine Cycle systems for large-scale waste heat
recovery to produce electricity. Organic Rankine Cycle

 The Organic Rankine Cycles are variants of the water steam

cylcles, which are used when the hot source is at low or medium
temperature.
 Under theseconditions their performance of the water steam
cycles deteriorates, it becomes preferable to use other
thermodynamics fluids.

 These fluids are derived from organic chemistry (carbonà and can
be hydrocarbons, oils, refrigerants,… (1-2)
ORC OPERATION SYSTEM
 cumm Cumm
cash cash
Inflow Outflo
in GBP w in
Net Cumm GBP
Revenu Cash Casf
Year e Grant Scrap Inflow flow Net cumm
maint cash cash
0 0 0 0 0 0 Year capex fee tax outflow inflow
1 306,000 51500 0 357500 357500 0 515000 0 0 515000 515000

2 306,000 0 0 306000 663500 1 0 10000 0 10000 525000

2 0 10000 76,500 86500 611500
3 306,000 0 0 306000 969500
1,335,50 3 0 10000 76,500 86500 698000
4 306,000 0 60,000 366000 0
4 0 10000 76,500 76500 774500
5 0 0 0 1335500
5 0 0 91,500 91500 866000

PAY BACK PERIOD OF THE

INVESTMENT
WE ARE CALCULATING USING THE CUMMULATIVE CASH FLOW TABLE
TO PLOT A GRAPH WHICH WILL DETERMINE THE YEAR. FIGURES IN
THE TABLE ABOVE WILL BE USED IN PLOTTING THE GRAPH IN THE
NEXT SLIDE
 PAY BACK PERIOD CHART cumm out
year cumm inflow cumm out flow year cumm inflow flow

0 0 515000
1335500 1335500

1 357500 525000
969500
866000 2 663500 611500
774500
663500 698000
611500 3 969500 698000
515000 525000

357500 4 1,335,500 774500

0 1 2 3 4 5
5 1335500 866000

PAY BACK PERIOD OF THE INVESTMENT

PAY BACK PERIOD IS ASCERTAINED TO BE 2 YEARS

APPROXIMATELY CONSIDERING THE INTERCEPTION
LINE AS SHOWN IN THE GRAPH
 Electricity Initial MAINTENAN Tax on Net Cash Present
Year Revenue Grant scrap value Investment CE CHARGES revenue flow PV factor Value

0 0 0 0 -515,000 0 -515,000 1- 515,000

1 306,000 51,500 0 0 -10000 0 347,500 0.882613 306,708

2 306,000 0 0 0 -10000 -76,500 219,500 0.779005 170,992

3 306,000 0 0 0 -10000 -76,500 219,500 0.687559 150,919

4 306,000 0 60,000 0 -10000 -76,500 279,500 0.606849 169,614

5 0 0 0 0 -91,500 -91,500 0.535612- 49,009

TOTAL 459,500 NPV 234,224

CASH FLOW TABLE FOR THE PERIOD OF

5 YEARS
N.B THE OCTOBER 2023 TARIFF OF EDF ENERGY WAS USED FOR THE
BASIS OF THE INVESTMENT CALCULATIONS, COSTING 109GBP
MONTHLY AND 0.15p per kWh. See edfnergy.com/energywise for details
VIABILITY DECISIONS
 looking at the NPV and the shorter period of
pay back the initial analysis suggests that
the investment is viable, but caution is
advised due to tax implications and
maintenance charges.

 Further analysis is needed to explore long-

term financial implications and potential
market changes. Continuous monitoring
and adaptation are crucial for sustained
success. (5)
Savings of carbon & environmental impact
 The UK's standard carbon emissions factor for natural gas is 0.184
kgCO2/kWh, with the current UK natural gas carbon factor being
0.18387 kgCO2e per kWh consumed.
 The annual carbon emissions reduction due to the ORC system is
estimated to be around 375,360 kgCO2/yr, with a cumulative impact
of 1,876,800 kgCO2 over its 5-year lifespan.
 CALCULATED USING
Annual Carbon Emissions Reduction=Total Electricity Generated by O
RC×Carbon Emissions Factor for Natural
Annual Carbon Emissions Reduction
 Cumulative Carbon Emissions Reduction=Annual Carbon Emissions
Reduction×Lifespan of ORC
 The ORC framework is expected to reduce fossil fuel byproducts by
1,876,800 kgCO2 over its 5-year life expectancy, aligning with
Beatson Clark's environmental and economic goals.
Recommendations
 Beatson Clark's proposed project, combining economic
benefits with environmental benefits, is a wise investment due
to its flexibility and low working temperatures.

 The project's recoupment time of approximately 2 year

suggests a quick profit. Positive net incomes in later years
further demonstrate the project's financial manageability.


 The ORC framework contributes to sustainability by reducing

fossil fuel byproducts. Government awards like the ERDF
award also contribute to reducing the project's capital cost.

 Despite potential risks like power price fluctuations or changes

in pricing, Beatson Clark's decision to continue with the ORC
framework is deemed prudent. (6-7)
 Discount Rate discussions
Other factors to be considered when selecting the discount rate
and the impact on the NPV are :
 RISK
 BENCH NORMS OF THE INDUSTRY
 INVESTMENT/ CAPITAL COSTS
 REGULATORY AND ECONOMIC CONDITIONS

The 13.3% discount rate is a well-considered option,

considering the company's financial structure, risk
factors, and external economic responsiveness. (8)
 GOVERNMENT GRANTS
 The research highlights the importance of examining
government grants, particularly for sustainable and
energy-efficient projects like the ORC system, with an
ERDF grant payable in year 1, amounting to 10% of the
initial capital.
 The ERDF grant not only boosts the ORC project's
financial viability but also ensures a positive net present
value (NPV) and serves as a strategic incentive for
Beatson Clark to invest in sustainable technologies. (9-10)

 Government grants make sustainable investments

economically attractive, aligning the company with green
and energy-efficient initiatives.
 MARKET FOR ALTERNATIVE SUPPLIERS AND BETTER ROI.

 Beatson Clark should explore alternative suppliers for their ORC system,
considering factors such as capital cost, maintenance charges, ROI,
technology and warranty, customer reviews, negotiation and
customization, and long-term partnership potential.

 The market for ORC systems is diverse, with multiple suppliers offering
varying technology, pricing, and services. To make a well-informed
decision, Beatson Clark should compare capital costs, maintenance
charges, ROI, and customer reviews.
 They should also consider the flexibility of suppliers in terms of
negotiation and customization. Additionally, they should assess the
potential for long-term partnerships, considering ongoing support,
maintenance, and adaptability to future needs.
 Beatson Clark should evaluates ROI projections from various suppliers to
understand the financial implications of each option, providing a
comprehensive understanding of potential return on investment. (11)
 Working Condition Price
Parameter Value Equipment ( ￥ /$)
Heat source Plate heat exchanger
temperature (°C) 330–450
used for preheating 4000/576
Mass flow rate of flue
58,000/835
gas (heat source)
(kg/h) 1700 Evaporator 7
shell-and-tube heat 23,000/331
Type of evaporator exchanger Condenser 4
Evaporation Cooling tower 5400/778
temperature (°C) 108–118
Single screw 25,000/360
tube-in-tube heat
Type of condenser exchanger
expander 2
Condensation
Circulating pump for
temperature (°C) 30 working fluid 9352/1348
Cooling water 17,000/245
temperature (°C) 20 Working fluid, R123 0
ABOVE IS SHOWING TABLES 5 AND 6 RESPECTIVELY. CASE STUDY
Table 5. Working condition parameters of the demonstration ORC system
Table 6. Investment of each equipment used in demonstration ORC system.
Investment of each equipment used in demonstration ORC system.
A demonstration project of ORC system with R123 as working fluid was established in Liulin,
Shanxi province, P. R. China. This project is used for the waste heat recover of flue gas from a
gas-fired internal combustion engine generator unit. . The working condition parameters of the
demonstration ORC system are listed in Table 5. Its output power is 11 kW. (12-13)
 Economic Indicator Value
Total Cost ($) 20,470
Net Earnings (NE) ($) 8800
Return on Investment (ROI)
(%) 42.98

Payback Period (PP) (Year) 2.63

Levelized Energy Cost (LEC)
($/kw·h) 0.0222

Present Value of Total Profit

in System Service Life ($) 274,398
The investment cost of the equipment used in the demonstration ORC system is listed in Table 6.
Table 7 gives the value of economic indicators used to analyze the economic performance of
demonstration ORC system.
Table 6. Investment of each equipment used in demonstration ORC system.
Investment of each equipment used in demonstration ORC system.
The R123 and R245fa systems' investment in heat exchangers accounted for the
largest proportion, followed by expanders and pumps. In the demonstration project,
the heat exchanger was the largest, followed by the expander, working fluid, and
pump. The cost of the single screw expander was significantly reduced, and the
working fluid investment was higher than the pump.
Figure 28. Proportion of equipment investment in the ORC system with
R123 as working fluid at: (a) optimal evaporation temperature; (b)
optimal condensation temperature; (c) optimal heat source temperature;
and (d) demonstration project.
Figure 29. Proportion of equipment investment in the ORC system with
R245fa as working fluid
 Conclusions
 The ORC system for Beatson Clark is a promising investment
due to its quick payback period, positive cash flows, and
environmental impact. The system's potential to generate
2,040,000 kWh/yr of electricity and reduce carbon emissions
aligns with sustainability goals.

 The 13.3% discount rate reflects the perceived risk associated

with the investment. Further exploration of government grants
and alternative suppliers is recommended. The system's potential
benefits make it a sound investment, making it a strategic move
towards a more efficient and eco-friendly energy solution.
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