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Natural gas based cogeneration system proposal to a textile industry: a financial assessment

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Abstract

This work presents a techno-economic evaluation of the implementation of a cogeneration system in the textile sector. The study was based on energy analysis for the survey of energy data, energy audit in the industrial plant, and also, an analysis of technical and economic feasibility, based on the parameters of net present value (NPV), internal rate of return (IRR), and time of return on investment (payback). The study was based on the use of single-effect absorption chillers, with the pair lithium bromide-water (LiBr/H2O) as the working fluid. Scenario studies were created to verify the feasibility of cogeneration in terms of the current system configuration. The sensitivity analysis of the scenarios studied depending on the exchange rate from Brazilian Real to US Dollar, the natural gas tariff, the investment of time, and interest rate financing allowed to find a hypothetical scenario for natural gas rates between 0.05 and 0.14US$/m3 and an interest rate set at 3% per year, where the proposal for full cogeneration (production of electricity and heat) was quite favorable, even for the high investments of the proposed cogeneration plant.

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Notes

  1. Brazilian economy’s basic interest rate

Abbreviations

C1-C4:

Starch Cookers (1–4)

COPERGÁS:

Companhia Pernambucana de Gás (Pernambuco Gas Company)

IES:

Instituto de Energias Sustentáveis (Institute of Sustainable Energies)

IR1–IR3:

Steam ironers (1–3)

O&M:

Operation and maintenance

p.a:

Per annum

RECOGÁS:

Rede Cooperativa Norte-Nordeste do Gás Natural (North-Northeast Natural Gas Cooperative Network)

SELIC:

Sistema Especial de Liquidação e Custódia (Special System of Settlement and Custody, a basic interest rate of the Brazilian economy)

TRNSYS:

Transient System Simulation Tool

UFPB:

Universidade Federal da Paraíba (Federal University of Paraíba)

CF:

Cash flow, $

COP:

Coefficient of Performance, –

Cost:

Costs, $

i :

Interest rate, %

IRR:

Internal rate of return, %

LCV:

Lower calorific value, kJ/kg

NPV:

Net present value, $

\( \dot{m} \) :

Mass flow rate, kg/s

\( \dot{Q} \) :

Heat flow, kW

\( \dot{V} \) :

Volumetric flow rate, m3/s

1–19:

Thermal energy circuit of the textile company

elect:

Electrical

eva:

Evaporator

fuel:

Fuel

gen:

Generator

ng:

Natural gas

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Acknowledgments

The first author thanks Professor Pedro Anselmo Filho for his support and help during the preparation of the master’s thesis, as well as the University of Pernambuco and also the CAPES. The third author also thanks the CNPq for the scholarships and Productivity grant no. 309154/2019-7 and the IFPE for its financial support throughout the Edital 10/2019/Propesq.

Funding

The authors thank FACEPE/Cnpq for financial support for research project APQ-0151-3.05/14 and the CNPq for financial support for the research project - Universal 402323/2016-5.

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Correspondence to Alvaro Antonio V. Ochoa.

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Leite, C.A.A.F., Alcântara, S.C.S., Ochoa, A.A.V. et al. Natural gas based cogeneration system proposal to a textile industry: a financial assessment. Energy Efficiency 14, 20 (2021). https://doi.org/10.1007/s12053-021-09927-2

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  • DOI: https://doi.org/10.1007/s12053-021-09927-2

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