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Analysis of Energy Cost Savings by Substituting Heavy Fuel Oil with Alternative Fuel for a Pozzolana Dryer Case Study of Bamburi Cement

Received: 21 October 2015     Accepted: 30 October 2015     Published: 2 December 2015
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Abstract

The research study was carried out with the aim of analyzing the energy cost saving achieved by substituting heavy fuel oil with alternative fuel for a pozzolana dryer. This was carried out on an existing dryer where data from reports for previous years on energy requirements, that is, heavy fuel oil cost and usage was collected. An auxiliary system to handle biomass was designed and fabricated. Further a projected substitution scenario was determined through the use of excel worksheet which was set as the benchmark of evaluation on the expectations of the actual substitution. Comparison of fuel composition and cost of both actual and projected substitution scenarios was carried out. Further an economic analysis was carried out to establish the viability of the project. From the study findings of both the projected and actual substitution, the cost of energy was reducing with an increase in alternative fuel substitution with coefficients of correlation (R2) of 1 and 0.5422 respectively. Again the projected and actual savings were increasing with an increase in alternative fuel substitution with coefficients of correlation (R2) of 1 and 0.6288 respectively. From the economic analysis, the cost benefit analysis gave a positive net present value of 67,409,041. IRR was 4.10 %, simple payback period was 12 days and return on investment was 29.72%. Using these four techniques of capital budgeting, the investment was worthwhile to undertake. Further on economic analysis substitution effect was carried out. On the substitution effect, there was gradual cost drop of the energy used to dry pozzolana from 357491491 Kenya shillings with increasing percentage alternative fuel substituted to 106,269975 Kenya shillings when heavy fuel oil is completely substituted by alternative fuel. From the study, the high and fluctuating cost of heavy fuel oil used in pozzolana drying can be achieved through substitution with alternative fuel.

Published in American Journal of Energy Engineering (Volume 3, Issue 6)
DOI 10.11648/j.ajee.20150306.13
Page(s) 93-102
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Heavy Fuel Oil, Alternative Fuel, Projected Substitution, Actual Substitution, Existing Dryer, Auxiliary System

References
[1] Alsop, P. (2001). Cement plant operations handbook for dry process plants. 3rd Edition, Trade ship Publications Ltd, Portsmouth, United Kingdom.
[2] Bamburi cement (2012), Annual Report and Financial Statements, Bamburi Cement Corporate Office Nairobi.
[3] Boden T.A, Marland. G, and Andres R.J. (2010),Global, Regional, and National Fossil-Fuel CO2 Emissions, Carbon Dioxide Information Analysis Centre, Oak Ridge National Laboratory, U.S. Department of Energy, Oak Ridge, Tenn., U.S.A. doi 10.3334/CDIAC/00001_V2010.
[4] Hendriks (1998), Reduction of Greenhouse Gases from the Cement Industry. Conference Proceedings, Switzerland.
[5] http://www.ucsusa.org/clean_energy/our-energy-choices/coal-and-other-fossil-fuels/the-hidden-cost-of-fossil.html (accessed 21.09.13)
[6] Kurchania A.K. Rathore N.S., Panwar N.L (2006), Renewable Energy Theory & Practice, Himanshu Publications.
[7] MIT Research Profile Letter, (2011), Clinker Grinding at Breaking Point, Concrete Sustainability Hub, 2011.
[8] NGP (2013), Bamburi Annual Report and Financial Statements.
[9] NGP (20112), Bamburi Annual Report and Financial Statements.
[10] United Nations Development Programme, (2009).Biomass Energy for Cement Production: Opportunities in Ethiopia.
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  • APA Style

    Veronica Kavila Ngunzi. (2015). Analysis of Energy Cost Savings by Substituting Heavy Fuel Oil with Alternative Fuel for a Pozzolana Dryer Case Study of Bamburi Cement. American Journal of Energy Engineering, 3(6), 93-102. https://doi.org/10.11648/j.ajee.20150306.13

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    ACS Style

    Veronica Kavila Ngunzi. Analysis of Energy Cost Savings by Substituting Heavy Fuel Oil with Alternative Fuel for a Pozzolana Dryer Case Study of Bamburi Cement. Am. J. Energy Eng. 2015, 3(6), 93-102. doi: 10.11648/j.ajee.20150306.13

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    AMA Style

    Veronica Kavila Ngunzi. Analysis of Energy Cost Savings by Substituting Heavy Fuel Oil with Alternative Fuel for a Pozzolana Dryer Case Study of Bamburi Cement. Am J Energy Eng. 2015;3(6):93-102. doi: 10.11648/j.ajee.20150306.13

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  • @article{10.11648/j.ajee.20150306.13,
      author = {Veronica Kavila Ngunzi},
      title = {Analysis of Energy Cost Savings by Substituting Heavy Fuel Oil with Alternative Fuel for a Pozzolana Dryer Case Study of Bamburi Cement},
      journal = {American Journal of Energy Engineering},
      volume = {3},
      number = {6},
      pages = {93-102},
      doi = {10.11648/j.ajee.20150306.13},
      url = {https://doi.org/10.11648/j.ajee.20150306.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajee.20150306.13},
      abstract = {The research study was carried out with the aim of analyzing the energy cost saving achieved by substituting heavy fuel oil with alternative fuel for a pozzolana dryer. This was carried out on an existing dryer where data from reports for previous years on energy requirements, that is, heavy fuel oil cost and usage was collected. An auxiliary system to handle biomass was designed and fabricated. Further a projected substitution scenario was determined through the use of excel worksheet which was set as the benchmark of evaluation on the expectations of the actual substitution. Comparison of fuel composition and cost of both actual and projected substitution scenarios was carried out. Further an economic analysis was carried out to establish the viability of the project. From the study findings of both the projected and actual substitution, the cost of energy was reducing with an increase in alternative fuel substitution with coefficients of correlation (R2) of 1 and 0.5422 respectively. Again the projected and actual savings were increasing with an increase in alternative fuel substitution with coefficients of correlation (R2) of 1 and 0.6288 respectively. From the economic analysis, the cost benefit analysis gave a positive net present value of 67,409,041. IRR was 4.10 %, simple payback period was 12 days and return on investment was 29.72%. Using these four techniques of capital budgeting, the investment was worthwhile to undertake. Further on economic analysis substitution effect was carried out. On the substitution effect, there was gradual cost drop of the energy used to dry pozzolana from 357491491 Kenya shillings with increasing percentage alternative fuel substituted to 106,269975 Kenya shillings when heavy fuel oil is completely substituted by alternative fuel. From the study, the high and fluctuating cost of heavy fuel oil used in pozzolana drying can be achieved through substitution with alternative fuel.},
     year = {2015}
    }
    

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  • TY  - JOUR
    T1  - Analysis of Energy Cost Savings by Substituting Heavy Fuel Oil with Alternative Fuel for a Pozzolana Dryer Case Study of Bamburi Cement
    AU  - Veronica Kavila Ngunzi
    Y1  - 2015/12/02
    PY  - 2015
    N1  - https://doi.org/10.11648/j.ajee.20150306.13
    DO  - 10.11648/j.ajee.20150306.13
    T2  - American Journal of Energy Engineering
    JF  - American Journal of Energy Engineering
    JO  - American Journal of Energy Engineering
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    PB  - Science Publishing Group
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    AB  - The research study was carried out with the aim of analyzing the energy cost saving achieved by substituting heavy fuel oil with alternative fuel for a pozzolana dryer. This was carried out on an existing dryer where data from reports for previous years on energy requirements, that is, heavy fuel oil cost and usage was collected. An auxiliary system to handle biomass was designed and fabricated. Further a projected substitution scenario was determined through the use of excel worksheet which was set as the benchmark of evaluation on the expectations of the actual substitution. Comparison of fuel composition and cost of both actual and projected substitution scenarios was carried out. Further an economic analysis was carried out to establish the viability of the project. From the study findings of both the projected and actual substitution, the cost of energy was reducing with an increase in alternative fuel substitution with coefficients of correlation (R2) of 1 and 0.5422 respectively. Again the projected and actual savings were increasing with an increase in alternative fuel substitution with coefficients of correlation (R2) of 1 and 0.6288 respectively. From the economic analysis, the cost benefit analysis gave a positive net present value of 67,409,041. IRR was 4.10 %, simple payback period was 12 days and return on investment was 29.72%. Using these four techniques of capital budgeting, the investment was worthwhile to undertake. Further on economic analysis substitution effect was carried out. On the substitution effect, there was gradual cost drop of the energy used to dry pozzolana from 357491491 Kenya shillings with increasing percentage alternative fuel substituted to 106,269975 Kenya shillings when heavy fuel oil is completely substituted by alternative fuel. From the study, the high and fluctuating cost of heavy fuel oil used in pozzolana drying can be achieved through substitution with alternative fuel.
    VL  - 3
    IS  - 6
    ER  - 

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Author Information
  • Department of Engineering and Innovative Technology, Kisii University, Kisii, Kenya

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