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An Economic Analysis of Converting Large Gas- and Oil-Fired Heating Plants to Coal
CONSTRUCTION ENGINEERING RESEARCH LAB (ARMY) CHAMPAIGN IL ENERGY AND UTILITIES SYSTEMS DIV
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Public Law 99-190 requires the Department of Defense to increase the use of coal at its facilities in the United States. This study investigated the cost effectiveness of burning coal versus gas or oil in 88 large heating plants located at 55 Army installations in the continental United States. Non- coal-fired plants with capacities greater than 50 MBtuhr were selected, and the USACERL-developed Central Heating Plant Economic Evaluation CHPECON program was used to estimate the life-cycle costs LCC of new plants of equal capacity burning gas, No. 2 oil, No. 6 oil, or coal using the following technologies stokers, coal water slurries, coal-oil mixture, micronized coal, and fluidized bed combustors. The study concluded that building new coal-fired plants to replace aging gas- or oil-fired plants would be cost effective in only one location, where coal was competitive with gas. However, retrofitting heavy oil plants for coal firing may increase coal consumption and provide potential cost savings for 38 heating plants. Calculated savings ranged between 8 million and 239 million over the 25-year plant life. More detailed engineering studies were recommended to confirm the projected savings at 15 of the Army heating plants studied. Economic analysis, Oil-fired heating plants, Central heating plants, Gas-fired heating plants, Central Heating Plant Economic EvaluationCHPECON, Coal.
APPROVED FOR PUBLIC RELEASE