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

2. All of us use LCC  PRICE  FUEL ECONOMY  SAFETY  DURABILITY  UTILITY  MAINTENANCE  INSURANCE  PERFORMANCE  RESELL VALUE

3. LCC Energy & Maintenance costs LCC  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

4. 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 LCC  1998 - HI and Europump form a joint committee to develop LCC guidelines Life Cycle Costs  2000 - Europump-HI “Pump Life Cycle Costs-Global Best Practices” Guideline

5. 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

6. 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. Environmental 7%

7. CONTENT Chapter Executive Summary Introduction 1Life Cycle Cost 2Pumping System Design 3Analyzing Existing Pumping Systems 4Examples of LCC Analysis 5Effective Procurement using LCC 6Recommendations 7References 8Glossary 9Appendix A - E

8. APPENDIXES ASystem Curves BPumping Output and System Control CPump Efficiencies DCase History - Cost Savings EElectrical Drivers and Transmissions

9. MANUAL CALCULATION CHART System 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 x Weighted average power x Average Operating hours/yr 3 - Operating cost/year: 4 - Average Maintenance cost (routine maintenance/year): 5 - Down time cost/year: 6 -Other yearly costs : 7 - Sum of yearly costs : (3+4+5+6+7) 8

10. MANUAL CALCULATION....cont.

12. SYSTEMS, not pumps SYSTEMS, not pumps  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.

13. Energy to Burn PUMPS and SYSTEM SIZING Energy to Burn  SYSTEM HEAD CALCULATIONS ARE CONSERVATIVE - SAFETY FACTORS  SINGLE PUMP, CONSTANT SPEED SYSTEMS SIZED FOR MAX DUTY u STATUTORY RULES IN MUNICIPAL WASTEWATER PUMPING u 40 DEG+, THREE DAYS OF THE YEAR  SYSTEM COMPONENTS ARE OVER- SIZED - SAFETY FACTORS

14. Pumps: expensive water heaters  Pumps, over-sized for REAL system demands, lead to u frequent on / off cycling u closing of throttling valves  RESULT: u adding friction head to the system, u increasing Pump kW (electric power required)

15. ENERGY  Efficient pumps & efficient systems => Specific Energy ( Wh/l pumped fluid ) Calculate specific energy for the system and compare different solutions and different components

16. Maintenance  Throttled / oversized pumps run outside BEP u operate less efficiently, u generate radial loads & wear faster ….whereas  Accurately sized pumps and systems u reduce maintenance costs u increase seal, bearing, shaft life u increase MTBF u decrease labor maintenance u reduce production loss u reduce our warranty goodwill costs

17. LCC ComparisonExample LCC Comparison - Example 10 Year Pump Life: : 80% eff 60% eff 800 gpm @ 90 ftBHP16.95 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 LCC TOTAL LCC Comparison$ 47,550 $66,550 Operating Savings $ 19,000

18. LIFE CYCLE COST LIFE 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

19. LIFE CYCLE COST Environmental ValueLIFE CYCLE COST Environmental 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

20. LCC PUTTING LCC 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

21. LIFE CYCLE COST  ITT Industries LCC  ITT Industries EMBRACES LCC AS A TOOL FOR SELECTING AN OPTIMAL SOLUTION TO CREATE ECONOMIC AND ENVIRONMENTAL VALUE OVER THE LIFE OF A SYSTEM

22. 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%

23. THANK YOU! &Q&A