Determining True Steam Prices

There can be confusion and misunderstanding from plant personnel on steam prices. Are we talking about steam price based on the point of use (marginal steam price) or total steam from the boiler house (average steam price) Should the steam be priced at the point of generation or point of use Does the steam price include both fixed and variable costs Does the average steam price vary for different production rates Why is the steam price obtained based on steam enthalpy instead of costs These are the questions that will become the focus of this chapter. 

Whenever possible, true steam prices should be set in the very early stages to foster plant energy efficiency. With steam priced based on its cost, engineers and operators will strive to reduce energy operating cost and identify beneficial 

Energy and Process Optimization for the Process Industries, First Edition. Frank (Xin X.) Zhu. 

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DETERMINING TRUE STEAM PRICES TABLE 17.4. Comparison of Steam Prices... 

For tackling this challenge, the method based on marginal analysis can indicate true steam costs at point of use. The reason why the marginal price method (Chapter 17) can provide the true steam cost is that it is based on the last incremental amount of steam saved or generated. Determination of marginal steam prices relies on an overall steam and power balance model, which takes into account the effects from steam balances. 

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