Environmental and economic assessment of the efficiency of heat exchanger network retrofit options based on the experience of society and energy price records

Stanislav Boldyryev, Tatyana Gil and Mariia Ilchenko

Energy, 2022, vol. 260, issue C

Abstract: Retrofit of the heat exchanger network is one of the vehicles of energy efficiency and emission reduction in the process industry. For further implementation, several alternative retrofit options exist, and better economic indicators provide the selection of the best one. Usually, the analysis is made using a forecasting model of energy prices, but the last pandemic and political crises demonstrate unpredictable changes. This paper proposed an approach for the economic and environmental assessment of retrofit options based on the experience of society from 1861 to 2021 and the corresponding energy price trends. Essential financial, e.g. NPV, IRR, DPP, and environmental criteria of retrofit options of heat exchanger network, are analysed considering different trends of energy prices. The most effective project is selected, providing the decision-makers with all data on overdetermined or lost benefits in all possible conditions. The case study analyses three alternative retrofit options for crude oil distillation. Two scenarios presume implementation after 1 and 3 years after project acceptance. The analysis shows IRR is on average 28, 99 and 61% for retrofit options 1, 2 and 3 when a preparatory period is 3 years and low energy prices. NPV is on average 21, 15 and 9 million USD, respectively. The DPPs are 3.8, 2.3, and 2.6 years and the reduction of carbon footprint is by 152, 71 and 45 ktCO2/year. It was also found that the retrofit option with the most extensive energy and emission saving is the most effective for periods with high energy prices regardless of a project implementation period. The retrofit option with the minor network changes is better for low and average energy prices regardless of a project implementation period. The method allows decision-makers to assess the alternative retrofit project in different economic conditions and could be applied in other process industries.

Keywords: Economic analysis; Emission reduction; Energy price trend; Energy saving; Heat exchanger network retrofit (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:260:y:2022:i:c:s0360544222020497

DOI: 10.1016/j.energy.2022.125155

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