Assess the Benefit

Analyze the Energy and Cost Savings for the EMO

Perform a Life Cycle Cost Analysis for the EMO - Base Case Conditions

Perform a Life Cycle Cost Analysis for the EMO - Pesimistic Case

Perform a Life Cycle Cost Analysis for the EMO - Optimistic Case

Greenhouse Gas (GHG) Factors

EMO Cost Savings Analysis

#1 Compressor Control & Heat Recovery

Existing Conditions
Presently there are three 50 HP packaged air compressors supplying air to the main plant and process areas. These
compressors are operating under individual control with cascaded pressure settings. During the audit it was
observed that two compressors often operate when one unit can meet the demand for air. The 3rd unit is backup.
The heat from the air cooled compressors is currently exhausted from the compressor room year round.

Proposed Conditions
Install a sequencing controller to dispatch the 3 compressors, in sequence upon demand for air, indicated by a
pressure sensor in the air main to the plant. It is expected that this will result in only one air compressor operating at
full load, while the second compressor will only operate during peak air demand periods, estimated to be less that
10% of the time. Second, install a simple system of ductwork and dampers to direct the heat compressor cooling air
into the plant during the heating season or exhaust outside during non-heating periods.

Expected Energy & Cost Savings

Electricity
Reduce the use of the second compressor at a measured load of 30 kW for 5000 hours per year
Demand Savings
Energy Savings

0 kW
150,000 kWh

30

Incremental Cost of Electrical Energy

Incremental Cost of Electrical Demand
Annual Electricity Cost Savings

kW for

5000

hours / year )

$0.07 /kWh
$8.20 /kW
$10,500 /year

GHG Factor for Electricity . in:

Greenhouse Gas Reduction

0.276 eq kg CO2 per kWh

41,400 eq kg CO2

Ontario

Natural Gas
The remaining compressor heat will contribute at least 40 kW to space heat for 6 heating months per year
Reduced Heating Load
Heating System Efficiency
Reduction in Fuel Energy
Fuel Type (units)
Energy Content of Natural Gas
Incremental Cost of Natural Gas

176,000 kWh
75%
234,667 kWh

40

Natural Gas m3
10.6 kWh/m3
0.25 /m3

Saved
Annual Gas Cost Savings

22,081 m3
$5,520 / year

GHG Factor for Natural Gas

Greenhouse Gas Reduction

3
1.9 eq kg CO2 per m
41,953 eq kg CO2

Total Cost Savings

Total GHG Reduction

$16,020 /year
83,353 eq kg CO2 per year

kW for

4400

hours / year

EMO Life Cycle Cash Flow Analysis

Costs for Period
Capital Cost
Maintenance
Asset depreciation
Lease costs
Taxes
Insurance
Labour
Other
Sub-total Costs

0
$50,000
$200

Base Financial Case

10

$204

$208

$212

$216

$221

$225

$230

$234

$239

$244

$50,200

$204

$208

$212

$216

$221

$225

$230

$234

$239

$244

Savings for Period

Electricity
Gas or Fuel
Water
Maintenance
Taxes
Insurance
Labour
GHG Factors
Sub-total Savings

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$10,500
$5,535

$16,035

$16,035

$16,035

$16,035

$16,035

$16,035

$16,035

$16,035

$16,035

$16,035

$16,035

Net Cash Flow

Net Project Value

($34,165)
($34,165)

$15,831
($18,334)

$15,827
($2,507)

$15,823
$13,316

$15,819
$29,134

$15,814
$44,948

$15,810
$60,758

$15,805
$76,563

$15,801
$92,364

$15,796
$108,160

$15,791
$123,951

Discount Rate
Discounted Cash Flow

15.00%
($34,165)

$13,766

$11,967

$10,404

$9,044

$7,862

$6,835

$5,942

$5,165

$4,490

$3,903

Net Present Value (NPV) : $45,215

Internal Rate of Return (IRR) :

Notes:
Maintenance costs are adjusted for an inflation at a rate of 2% per year.

45%

Simple Payback (yrs) :

3.1

EMO Life Cycle Cash Flow Analysis

Costs for Period
Capital Cost
Maintenance
Asset depreciation
Lease costs
Taxes
Insurance
Labour
Other
Sub-total Costs

0
$50,000
$200

Pessimistic Case

10

$204

$208

$212

$216

$221

$225

$230

$234

$239

$244

$50,200

$204

$208

$212

$216

$221

$225

$230

$234

$239

$244

Savings for Period

Electricity
Gas or Fuel
Water
Maintenance
Taxes
Insurance
Labour
GHG Factors
Sub-total Savings

$10,500
$5,535

$10,290
$5,424

$10,084
$5,316

$9,883
$5,209

$9,685
$5,105

$9,491
$5,003

$9,301
$4,903

$9,115
$4,805

$8,933
$4,709

$8,754
$4,615

$8,579
$4,522

$16,035

$15,714

$15,400

$15,092

$14,790

$14,494

$14,204

$13,920

$13,642

$13,369

$13,102

Net Cash Flow

Net Project Value

($34,165)
($34,165)

$15,510
($18,655)

$15,192
($3,463)

$14,880
$11,417

$14,574
$25,991

$14,274
$40,264

$13,979
$54,243

$13,691
$67,934

$13,408
$81,342

$13,130
$94,472

$12,858
$107,330

Discount Rate
Discounted Cash Flow

15.00%
($34,165)

$13,487

$11,487

$9,784

$8,333

$7,096

$6,044

$5,147

$4,383

$3,732

$3,178

Net Present Value (NPV) : $38,506

Internal Rate of Return (IRR) :

42%

Notes:
Electricity and natural gas savings are adjusted for deflation at a rate of -2% per year, while maintenance is inflated by 2% per year.

Simple Payback (yrs) :

3.2

EMO Life Cycle Cash Flow Analysis

Costs for Period
Capital Cost
Maintenance
Asset depreciation
Lease costs
Taxes
Insurance
Labour
Other
Sub-total Costs

0
$50,000
$200

Optimistic Case

10

$204

$208

$212

$216

$221

$225

$230

$234

$239

$244

$50,200

$204

$208

$212

$216

$221

$225

$230

$234

$239

$244

Savings for Period

Electricity
Gas or Fuel
Water
Maintenance
Taxes
Insurance
Labour
GHG Factors
Sub-total Savings

$10,500
$5,535

$10,710
$5,646

$10,924
$5,759

$11,143
$5,874

$11,366
$5,991

$11,593
$6,111

$11,825
$6,233

$12,061
$6,358

$12,302
$6,485

$12,548
$6,615

$12,799
$6,747

$16,035

$16,356

$16,683

$17,016

$17,357

$17,704

$18,058

$18,419

$18,788

$19,163

$19,547

Net Cash Flow

Net Project Value

($34,165)
($34,165)

$16,152
($18,013)

$16,475
($1,539)

$16,804
$15,266

$17,140
$32,406

$17,483
$49,889

$17,833
$67,722

$18,189
$85,911

$18,553
$104,465

$18,924
$123,389

$19,303
$142,692

Discount Rate
Discounted Cash Flow

15.00%
($34,165)

$14,045

$12,457

$11,049

$9,800

$8,692

$7,710

$6,838

$6,065

$5,379

$4,771

Net Present Value (NPV) : $52,642

Internal Rate of Return (IRR) :

Notes:
Electricity and natural gas savings and maintenance costs are adjusted for inflation at a rate of 2% per year.

48%

Simple Payback (yrs) :

3.1

Greenhouse Gas Factors

Menu

Emission Factors for ''Indirect Emissions'' (Electricity)

kg CO2 eq/kWh
Province/Territory
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland and Labrador
NWT / Nunavut, Yukon
Nova Scotia
Ontario
Prince Edward Island
Quebec
Saskatchewan

1990
0.926
0.019
0.026
0.348
0.044
0.295
0.724
0.204
1.25
0.011
0.765

1997
0.956
0.017
0.007
0.484
0.029
0.371
0.717
0.174
1.39
0.002
0.882

1998
0.944
0.027
0.03
0.484
0.023
0.359
0.724
0.233
2.91
0.009
0.891

1999
0.902
0.019
0.019
0.426
0.022
0.341
0.727
0.237
1.89
0.006
0.878

2000
0.882
0.036
0.031
0.433
0.021
0.292
0.759
0.276
1.12
0.002
0.84

2001
0.848
0.052
X
X
X
0.288
X
0.263
X
0.002
X

2002
0.849
0.018
X
X
X
0.261
X
0.259
X
0.002
X

2003
0.898
0.021
X
X
X
0.257
X
0.302
X
0.009
X

2004
0.861
0.024
X
X
X
0.249
X
0.222
X
0.008
X

Notes:

X - Denotes confidential values

Source:

Environment Canada's National Inventory Report 1990-2004 - Greenhouse Gas Sources and Sinks in Canada;
Annex 9: Electricity Intensity Tables

Emission Factors for Selected Thermal Fuels

Notes:
Sources:

Fuel

Factor

Type
Natural Gas
#2 Oil
#6 Oil
Propane

eq kg CO2 per unit (1)

1.9
2.84
3.11
1.53

Unit of

MJ

Measure per Unit (2)

m3
38.26
litres
38.55
litres
40.5
litres
25.31

Fuel type #2 Oil factors are the average of Light Fuel and Diesel
(1) Environment Canada's National Inventory Report 1990-2004 - Greenhouse Gas Sources and Sinks in Canada;
Annex 13: Emission factors
(2) Statistics Canada - Catalogue no. 57-003, Text table 1 - Energy Conversion Factors

kg CO2 eq/kWh
Active
0.882
0.036
0.031
0.433
0.021
0.292
0.759
0.276
1.120
0.002
0.840