Smith Lake Topics: explanation

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	Name:	waterph -
	Subject:	explanation
	Date:	12/8/2008 10:47:31 AM

Alston

Good idea! Heat recovery can reduce operating cost in a significant manner if maximized. Most companies dedicate significant enginnering hours to find these opportunities and formulate projects to implement. You are correct in that it would take fewer tons of coal if recycled hot water is being used to make steam.

I would suspect that the Gorgas plant is recapturing very few BTUs via state of the art heat recovery systems. This process is probabably antiquated since it does not have cooling towers. Capital dollars would be required for energy cost reduction prrograms. However, this project would probably have a high ROI with a short pay off time. Most companies will find capital to reduce energgy cost. Once installed, the project pays for itself for many years.

The $64 question is -

What will APC do for Gorgas to bring it up to a state of the art energy plant? Or, will APC limit capitaal expenditures to meet environmental guidelines only and allow Gorgas to die a slow death?