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Microsoft Word - 6313 Grad Project 2019.doc 1 Problem statement UNB and the UNB Heating Plant have stumbled across a ground-breaking technology that produces hydrogen from water at efficiencies far greater than traditional electrolysis or other hydrogen production methods (see Joi Scientific – www.joiscientific.com). As a potential partner in the technology deployment, UNB wishes to convert the campus heating plant from its current natural gas, heavy oil and wood burners to burn the pure hydrogen produced from the new technology. An engineering and economic assessment of the potential profits following conversion of the UNB heating plant is required to provide the business case to UNB’s Board of Directors and investors. The attached data show the fuel consumption by type as used at the UNB Heating Plant over the past couple of years as well as the operational expenses associated with them. Additionally, UNB sells steam to the DECH, RPC and STU, which can be included as revenue streams. Requirements: 1. Complete engineering calculations demonstrating the amount of H2 required to completely convert the UNB Heating plant to burn solely on this fuel. 2. Complete an economic assessment of the potential cost savings on fuel in converting the UNB Heating Plant to burn hydrogen. You may assume that the hydrogen production plant uses 10 kWhr of electricity per kg of hydrogen produced (compare this to 40-50 kWhr/kgH2 from conventional water electrolysis). Electricity cost is assumed to be the NB Power industrial rate ($0.052 per kWhr). Carbon dioxide is to be assumed to be taxed going forward at $50 per tonne CO2 as per the Federal Government regulations coming into effect in April 2019. 3. Complete an economic assessment on the net savings and revenue generated following conversion of the UNB Heating Plant to the new hydrogen technology. Also comment on the reduction in carbon emissions and the cost savings associated with this. 4. Prepare a brief report highlighting your findings above. CHE 6313 Winter 2019 Energy and the Environment Dr. William Cook Department of Chemical Engineering office: Head Hall rm E-230C phone: 452-6318 e-mail:
[email protected] Graduate Project Due: 4:30pm April 11, 2019 2 Data from UNB Heating Plant Fuel Consumption Average Unit Cost No6 oil Natural Gas Wood No6 oil Natural Gas Wood L m3 tonnes $/L $/GJ $/tonne 2013 781357 8,611,324 15722 $0.64 $16.58 $49.07 2014 30281 8,503,416 18058 $0.64 $16.58 $49.07 2015 51247 6,107,715 23817 $0.69 $16.35 $51.11 2016 870368 5,025,864 25823 $0.38 $14.24 $59.42 Steam Consumption (lbs) 2013 2014 2015 2016 UNB Academic 129,993,736 123,849,500 107,370,651 111,420,880 UNB Residences and Other 52,397,072 49,944,801 43,935,673 43,083,357 RPC 5,996,296 6,307,800 5,896,525 6,396,541 DECH 81,423,000 74,627,000 73,984,987 76,406,299 St. Thomas University 23,717,191 23,065,463 20,786,075 18,210,294 Total 293,527,295 277,794,564 251,973,911 255,517,371 External Steam rate ($/klb) $29.10 $30.10 $31.92 $32.25 Internal Steam rate ($/klb) $28.14 $31.12 $33.06 $33.42