Optimizing Steam Energy Use & Reducing Operational Costs Opportunities in Healthcare

1
Optimizing Steam Energy Use Reducing
Operational CostsOpportunities in Healthcare
Rock R. KaiserU.S. Department of Energy
Qualified Steam System Energy Expert Sustainable
Steam Water Solutions Inc.
2
Why Should I Focus on Energy?(aka Whats in it
for me?)

• Like everything else, energy prices will continue
  to rise over time (although we are currently
  enjoying relatively cheap gas

Although the actual cost of natural gas varies
from state to state, and hospital to hospital.
3
Why Should I Focus on Energy?(aka Whats in it
for me?)

• A good purchasing strategy can help you obtain
  gas at a relatively low cost/unit but this is
  often out of the hospitals control.
• You have to satisfy the facilities demand, but
  you want to do this for the lowest possible cost.
• Do you know your current cost of steam/1,000 lbs?
  
• Do you know your current cost of 1,000 gallons of
  domestic hot water?
• Do you produce domestic hot water with steam? Is
  this the best method with the availability of
  high efficiency hot water heaters?
• You may know how much gas you are using on a
  monthly basis, but is this the best you can do?
• Remember, the money saved in your steam/hot water
  systems operation goes directly to your bottom
  line, or can be directed towards other areas
  within the facility.

4
Why Should I Focus on Energy?(aka Whats in it
for me?)

• Below is the marginal steam cost (/1,000 lbs of
  generated steam) for some of the facilities that
  I have assessed. Data has been put on a equal
  natural gas price basis of 10.00/MMBTU to ensure
  that the comparison is based upon the efficiency
  of the steam usage.
• Indiana Pharmaceutical Manufacturing
  Plant 12.75/1,000 lbs of Steam
• Indiana Hospital (1) 12.75/1,000 lbs of Steam
• Midwest Grain Processing Plant (1) 12.91/1,000
  lbs of Steam
• Indiana Hospital (2) 12.97/1,000 lbs of Steam
• Kentucky Regional Medical Center 13.00/1,000
  lbs of Steam
• Indiana Hospital (3) 13.05/1,000 lbs of Steam
• Indiana Alcohol Production Plant 13.05/1,000
  lbs of Steam
• Indiana Hospital (4) 13.11/1,000 lbs of Steam
• West Central Indiana Hospital 13.82/1,000 lbs
  of Steam
• Midwest Food Processing Plant 13.92/1,000 lbs
  of Steam

The range above is only 1.17/1,000 lbs not
much. However, using 5,000 lbs of steam per hour
average as a basis, a difference of 1.17 can
mean an extra 51,000 in operating expenses a
year. Do you know where you fall on the above
list?
5
Want Another WIIFM?(aka Here Comes the
Government)

• On June 26, 2009, the U.S. House of
  Representatives passed H.R. 2454, otherwise known
  as the American Clean Energy and Security Act of
  2009.
• Title III of the bill, designated Reducing
  Global Warming Pollution will likely have the
  greatest impact on business.
• The list of regulated greenhouse gases (GHGs)
  includes carbon dioxide, methane and nitrous
  oxide (among others).
• The bill specifically targets the largest
  industrial businesses with the current energy
  consumption target of 300 billion BTUs annually.
• Although hospitals are likely not covered, it is
  probable that this target will decrease/become
  more stringent over time.
• Emissions regulations will be facilitated through
  a cap and trade system. Emitters will be
  provided with GHG credits. If you need more to
  cover emissions, you buy them from a company who
  didnt use all they were allocated or from a
  government auction.
• You want to be the seller in this scenario!

6
Although Sometimes the Government can Provide You
with Assistance

• New Energy Efficiency Grant Program To Launch
  March 15
• Program Makes Over 4 Million in Grants Available
  to Indiana Health Care, Higher Education, Small
  Business and Non Profits
• (Indianapolis)--- Lt. Governor Becky Skillman
  announced the availability of over 4 million in
  competitive grants for energy efficiency
  upgrades.  Indiana Small businesses, health care
  facilities, institutions of higher education and
  non profit agencies are all eligible to apply for
  the grants.  The program will make grants up to
  100,000 for any energy efficiency retrofit
  project available with a 50 local match.
• Although this opportunity has ended, you can
  monitor http//www.energy.in.gov/ for future
  grant opportunities.

7
Great Information, But What Can We Do?

• One solution is sufficient whether you want to be
  Green or you want to Reduce Costs.
• A steam system assessment will help you identify
  which steam system savings opportunities meet
  your specific return on investment requirements.
• A steam system assessment is designed to help you
  find opportunities to save money. It is not
  intended to make the hospital look bad for poor
  operation.
• You are not alone, until relatively recently most
  facilities used more energy than necessary
  because it was relatively cheap.
• But times are changing, and you want/need to
  devote as little resources as possible to
  utilities production.
• A steam system assessment can help you identify
  and implement the most attractive energy savings
  opportunities at your facility, and not waste
  time on those without sufficient payback.

8
What is a Steam System Assessment?

• Your specific facility will be modeled using
  Department of Energy Tools, procedures and best
  practices

9
What is a Steam System Assessment?
All areas of the facility are reviewed as
appropriate for opportunities to save energy
and/or water.
10
What will I learn about my system?

• Final report includes a detailed analysis of your
  facilities current operation.

• Operating Costs
• Annual Natural Gas Cost 168,000/Year
• Annual Make-Up Water Cost 3,000/Year
• Annual Operating Cost (Exc. Elect.) 171,000/Year
• Emission Estimates
• Carbon Dioxide Emissions 1,907,000 lbs/Year
• SOx Emissions 0 lbs/Year
• NOx Emissions 2,000 lbs/Year
• Utility Balance
• Average Natural Gas Consumption 1,873 S. Cubic
  Foot/Hour
• Make-Up Water 66 Gallons/Hour
• Steam Production (Annual Average) 1,600 lbs/hour
• Steam Cost
• Marginal Steam Cost 13.30/1,000 lbs

11
What types of savings opportunities could an
assessment identify?

• Use High Efficiency Hot Water Heater to Generate
  Domestic Hot Water
• The enthalpy of 40 psig steam is 1,175.9
  BTUs/lb, while 184oF condensates BTU value is
  152.0 BTU/lb for a net of 1,023.9 BTUs/lb. At a
  consumption rate of 318 lbs/hour this equates to
  325,600 BTU/hr or 2,852 MMBTU/yr for 8,760 hours
  of operation. As a point of comparison, this
  would indicate that about 650 gallons/hour of
  120oF water is consumed (11 gallons/minute or 5.7
  MM Gals/yr).
• The hospital is currently paying 10.25/MMBTU
  for natural gas. Therefore, if a 100 efficient
  hot water heater was used, the cost to generate
  the necessary hot water would be 2,852 MMBTU/yr x
  10.25/MMBTU 29,200/yr. At 99.7 efficiency
  this results in an annual cost of 29,300/yr.
  Therefore, annual savings 37,050 - 29,300
  7,750/year.
• Gas Savings 7,800/Year (4.6)
• Water Savings 140/Year (4.6)
• CO2 Emissions Reduction 88,500 lbs/Year (4.6)
• NOx Emission Reduction 100 lbs/Year (4.6)

12
What kind of savings opportunities might an
assessment identify?

• Total Estimated Project Savings
• Estimated total savings includes synergies
  between projects (i.e. blowdown heat exchange and
  combustion economizer are not directly additive)
• Natural Gas Savings 44,000/Year (26.2)
• Water Savings 2,000/Year (47.3)
• CO2 Emissions Reduction 500,000 lbs/Year (26.2)
• NOx Emissions Reduction 500 lbs/Year (26.2)

13
Steam System AssessmentExample Project Savings

• Specific Savings Opportunities Have Included
• Boiler Combustion Efficiency Improvement
• 45,000/Year
• Boiler Flash Steam Recovery
• 80,000/Year
• Economizer Project
• 45,000/Year
• Boiler Fuel Conversion
• 140,000/Year
• Boiler Combustion Air Project
• 21,000/Year
• Boiler Room Insulation Project
• 12,000/Year

14
Steam System Assessment Focus Areas

• Boiler Combustion Efficiency Determination
• Boiler Combustion Efficiency Improvement
  Recommendations
• Combustion Air Source Option Review
• Economizer Applicability
• Reverse Osmosis/High Purity Water System Savings
• Blowdown Heat Exchange Applicability
• Steam Trap Survey Repair Savings Estimates
• Personalized Steam System Insulation Table
• Personalized Steam System Leak Repair Table
• System Savings Opportunities (Autoclaves, Etc.)
• Condensate Return
• Domestic Hot Water System Savings Opportunities
• Qualitative Review of Appropriate Metering
• Advice on Steam System Safety Issues and Concerns
• Basic Review of Water Treatment Systems

15
Thank You!

• If you would like to find out more about having
  an assessment performed at your facility please
  contact

Rock R. Kaiser US DOE Qualified Steam System
Energy Expert Sustainable Steam Water
Solutions, Inc. rkaiser_at_hughes.net [phone]

• Thank you for your attention, and let me know how
  I can assist you with your energy, water and
  emission reduction goals.