buckman
Electrical
- Jun 8, 2005
- 7
I am an industrial account rep for an electric utility. One of my customers has approached me about a possible swicth to elctric heat from an oil fired steam boiler. Here is his email below. Just looking for a little food for thought.
"In a period of time when the cost of our fuel has increased 250%, the electrical rates have gone up a small amount compared to this. We made a quick calculation to see that the current cost of recycled fuel oil has a cost just a bit higher than electricity at our current rate per joule. This is not counting for water treatment chemicals and boiler maintenance.
This effect has come from 2 facts; 1) the virgin oil prices has gone up rapidly and 2) the recycled oil has gone up at an even higher rate as the demand got higher from more and more companies switching from virgin to recycled. To think about an investment to switch from a steam boiler to something else (electrical heater) would require a risk to be taken according to the future trend of electrical rates vs fuel cost.
Some questions: 1) what do you think about this concept and 2) do you know of any standard type of technology in direct electrical heating for an industrial application (200 HP tube fired boiler in our case)?
"In a period of time when the cost of our fuel has increased 250%, the electrical rates have gone up a small amount compared to this. We made a quick calculation to see that the current cost of recycled fuel oil has a cost just a bit higher than electricity at our current rate per joule. This is not counting for water treatment chemicals and boiler maintenance.
This effect has come from 2 facts; 1) the virgin oil prices has gone up rapidly and 2) the recycled oil has gone up at an even higher rate as the demand got higher from more and more companies switching from virgin to recycled. To think about an investment to switch from a steam boiler to something else (electrical heater) would require a risk to be taken according to the future trend of electrical rates vs fuel cost.
Some questions: 1) what do you think about this concept and 2) do you know of any standard type of technology in direct electrical heating for an industrial application (200 HP tube fired boiler in our case)?