LIFE CYCLE COST Optimizing Pump Systems Dr. Gunnar Hovstadius Dir. Technology ITT FT.

LIFE CYCLE COSTLIFE CYCLE COST Optimizing Pump Systems

Dr. Gunnar Hovstadius

Dir. Technology ITT FT

All of us use LCC

PRICEPRICE

FUEL FUEL ECONOMYECONOMY

SAFETYSAFETY

DURABILITYDURABILITY

UTILITYUTILITY

MAINTENANCEMAINTENANCE

INSURANCE INSURANCE

PERFORMANCEPERFORMANCE

RESELL VALUERESELL VALUE

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

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

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

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%

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

APPENDIXES

A System Curves

B Pumping Output and System Control

C Pump Efficiencies

D Case History - Cost Savings

E Electrical Drivers and Transmissions

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

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)

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

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.

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

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)

ENERGY

Efficient pumps & efficient systems =>

Specific Energy ( Wh/l pumped fluid )

Calculate specific energy for the system

and compare different solutions and

different components

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

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

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

•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

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

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

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%