Been a 24/7, 365 days operation of glass furnace which is capable to produce and waste tremendous
amount of heat during Melting & Conditioning process that requires to operates between +1100 °C to
+1600 °C. There is urgent need to introduce an Industrial Heat recovery system to the plant.
To run plant in a more efficient manner, an ORC (Organic Rankine Cycle) system retrofits with current
processing unit. As shown in fig. 1, it captures waste heat from the source, which passes through the
heat exchanger and in turn heats the organic fluid at the evaporator, causing it to vaporize. Vapour
passes with high enthalpy to the turbine, which further causes the turbine to spin which creates
electricity for the generator. The organic vapour then condensed by the cooling tower back into fluid.
This fluid pumps back to the system where it gets reheated by recuperator and the process restarts. So,
to summarize I can state that, this technology help us to save energy and increase efficiency of the plant.
Fig. 1
https://www.youtube.com/watch?v=XifXl1EsdSc
ORGANIC RANKINE CYCLE
CASH FLOW
As per the details provided by the supplier, the payback period of this investment is three years and
the guaranteed life claimed on ORC is four years, which makes it more attractive and financially viable
option to implement.
Fig. 2
In order to consider the factors like Weighted Average Cost of Capital, inflation rate and time value of
money, discount rate been assumed to be 13.30% which is good enough to gives us the most accurate
way of estimating the value of our investment. But if we further increase the discount rate, it will lower
the NPV value to negative which in turn lead us to rethink about the project. Considering the above data
and the payback period which is just three years, it can be said that there won’t be much external factors
which going to impact our investment in future.
Also, a positive NPV indicates the discounted present value of all future cash flows related to that project
or investment, thus, makes it more financially appealing.
Capex (£)
£518,790
ERDF Grant
10%
Corp Tax Rate
20%
Discount Rate
13.30%
Scrap (£)
£60,000
Revenue (£/yr)
£182,000
Year
Cash Inflow (£)
Cash Outflow (£)
Net Cashflow (£)
Discount Factor
Present Value (£)
Grant
Revenue
Scrap
Capex
Corp Tax
0
0
0
0
-518,790
0
-518,790
1
-518,790
1
51879
182,000
0
0
0
233,879
0.883
206,515
2
0
182,000
0
0
-36,400
145,600
0.779
113,422
3
0
182,000
0
0
-36,400
145,600
0.688
100,173
4
0
182,000
60,000
0
-36,400
205,600
0.607
124,799
5
0
0
0
0
-48,400
-48,400
0.536
-25,942
TOTAL CASHFLOW
163,489
NPV
177
Industrial Decarbonization Policy
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/970229/Industrial_D
ecarbonisation_Strategy_March_2021.pdf
ROADMAP FOR NET ZERO STRATEGY
UK government has laid out the roadmap for net zero UK Industry decarbonisation Strategy 2050,
where the aim is to reduce Carbon footprint by at least two-thirds by 2035 and by at least 90% by
2050.
Fig. 3
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file
/970229/Industrial_Decarbonisation_Strategy_March_2021.pdf
https://www.gov.uk/guidance/climate-change-levy-rates
Climate Change Levy Main and Discounted
rate Comparison
To re-use heat on-site or sell
it to a third party, leading to
the more efficient and
productive use of energy,
lower fuel bills or a new
revenue stream for industry,
and a reduction in carbon
emissions.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment
_data/file/894592/1_Programme_Guidance_Note_PV8_June2020.pdf
IHRS project phases and alignment
with overarching project phases
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/894592/1_Pro
gramme_Guidance_Note_PV8_June2020.pdf
Programme Process Flow Diagram
Esseco a chemical industry in Wakefield, implement IHRS which conservatively estimates savings of 9,302
MWh/annum and carbon savings of 1,823 tonnes per annum. The estimated monetary savings are around
£180,000 per annum.
Lessons Learned:
1. Application process indicated that we needed to conduct some more thorough
evaluation of the opportunity
2. Preliminary Engineering has highlighted some more detailed technical challenges like corrosion, space
optimization, large distance between equipment units, scheduling to avoid minimum impact on
production while implementation of ORC, once challenges were met, the project deliver operational
benefits for the site
3. Non-core and technically challenging projects can be a particularly hard “sell” within production
focused organisations however detailed investigations and challenging external minds can highlight
significant opportunities to use one opportunity to “unlock” further benefits that would otherwise go
undiscovered
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attac
hment_data/file/940018/Esseco_Case_Study.pdf
Esseco IHRS Case Study
CARBON SAVINGS & ENVIRONMENTAL IMPACT
https://assets.publishing.service.gov.uk/government/uploads/system/up
loads/attachment_data/file/416675/Glass_Report.pdf
ALTERNATIVE SUPPLIERS
Turboden, a group company of Mitsubishi Heavy Industries (MHI), leader in Organic Rankine
Cycle (ORC) turbogenerators. Currently there are more than 260 Turboden ORC plants in
operation worldwide
