Sustainable Energy Technologies and Assessments 3 (2013) 17–26

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Sustainable Energy Technologies and Assessments

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Original Research Article

Absorption equipment for energy savings: A case study in Sicily

Antonella Dispenza a, Vincenzo La Rocca a,⇑, Antonio Messineo b, Massimo Morale a, Domenico Panno a
a
Dipartimento Energia, Ingegneria dell’informazione e Modelli Matematici, Università degli Studi di Palermo, Parco d’Orleans, Viale delle Scienze, Ed. 9, 90128 Palermo, Italy
b
Facoltà di Ingegneria e Architettura, Università degli Studi di Enna ‘‘Kore’’, Cittadella Universitaria, 94100 Enna, Italy

a r t i c l e i n f o a b s t r a c t

Article history: This paper considers a feasibility study on the recovery of the reject heat available from an electric utility
Received 11 October 2012 with two units operating with 120-MW gas turbines; these units have a heat recovery system that feeds
Revised 2 April 2013 the district heating pipeline of an industrial consortium. Thus, feeding the expeller of the absorption
Accepted 8 May 2013
equipment installed in a cooling plant for foodstuff stocking represents an opportunity for the feasibility
study. This plant operates at both 0 °C and 18 °C. The feasibility study covers two aspects: (1) the tech-
nical feasibility of a suitable absorption cooling plant that uses two separate pieces of absorption equip-
Keywords:
ment working with the pair ammonia–water and (2) the relevant economic venture analysis. The
Absorption refrigerating equipment
Primary energy saving
feasibility study pertains to both the optimal design of the absorption equipment and the energetic
Greenhouse gases emission and exergetic analysis of the plant; moreover, the same type of analysis was performed for a reference
Economic analysis case pertaining to a two-stage reciprocating compression refrigerating plant. An economic analysis of
Exergetic analysis the venture demonstrated that the expected time of return on the differential investment is less than
4 years and that the specific investment costs expected given the differential costs between the two alter-
native options are 11.28 €/toe of primary energy savings and 15.84 c€/t(CO2,eq) of reduced greenhouse gas
emissions.
Ó 2013 Elsevier Ltd. All rights reserved.

Introduction
The International Energy Agency expects that the primary
world energy demand will increase by 45% by 2030 and that
hydrocarbon fuels will continue to satisfy 80% of this demand
[1]. The increase in the world energy demand, mainly fulfilled by
hydrocarbon fuels, has led to an increase in greenhouse gas emis-
sions with serious repercussions on our environment. Greenhouse
gas emissions can be reduced by increasing the energy efficiency of
power plants and by taking concrete actions for energy savings and
recovery in the industrial field [2–4].
In the context of a research program relevant to energy plan-
ning for Sicily and minor Sicilian islands, granted by the ‘‘Regione
Siciliana’’ government, and another program on ‘‘Innovative Tech-
nologies and Design Methodologies of Energy Systems for Sustain-
able Development’’, provided with governmental funds by the
University of Palermo, a research program on the feasibility of
industrial plants suitable for the integrated use of energy resources
was developed at DEIM [5].
This paper considers the results of a feasibility study that is
relevant to the recovery of reject heat from the electric utility
‘‘Ettore Maiorana’’, which belongs to ENEL Production at Termini
Imerese, Palermo. The utility has two combined cycle units, each
operating with a gas turbine and a steam turbine to produce 250
and 60 MW, respectively. Thus, the two units produce an overall
electric power of 620 MW. Moreover, the two units are operating
with 120-MW gas turbines; these units have a heat recovery
system that feeds the district heating pipeline of an industrial
consortium.
The venture proposed is relevant to a cold store facility com-
posed of 10 cold store cells, each with a capacity of 10,000 m3. Five
cells are reserved for the storage of fresh products (foodstuff) and
operate at a temperature of 0 °C. The other five cells are reserved
for the storage of frozen products and operate at a temperature
of 18 °C.
The feasibility study pertains to the optimal design of the
absorption equipment, which will be built on commission, and to
the energetic and exergetic analysis of the plant; the same type
of analysis was conducted for a reference case pertaining a two-
stage reciprocating compression refrigerating plant. The study
covers two main aspects: (1) the technical feasibility of a suitable
cooling plant that uses two separate pieces of absorption equip-
ment and is compatible with the pair ammonia–water1 and (2)
the economic feasibility of the venture.

⇑ Corresponding author. Tel.: +39 091 238 61935; fax: +39 091 484425. 1
Each of which operates at two different temperature levels, 32 °C and 15 °C, by
E-mail address: vincenzo.larocca@unipa.it (V. La Rocca). the refrigerant side in the evaporators.

2213-1388/$ - see front matter Ó 2013 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.seta.2013.05.002
18 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26

Nomenclature

Abbreviations Subscripts
p pressure [kPa] d distillate (ammonia)
Q thermal power [kW] r rich solution
T temperature [°C] w weak solution
W electrical power [kW] e evaporator
m flow rate [kg/s] c condenser
f absorption solution circulating ratio h expeller
k conductivity [W/(m K)] a absorber
s thickness [m] am ammonia
h enthalpy [kJ/kg] p pump
s entropy [kJ/(kg K)] rec rectifier
e exergy [kJ/kg] shx solution heat exchanger
E exergy rate [kW] rhx refrigerant heat exchanger
L length dimension [m] in inlet
x mass concentration out outlet
int internal
Greeks symbols ext external
f COP
w exergetic efficiency

Cold store facility - Refrigerating equipment that produces a cooling power of

The main geometrical data and characteristics of the cold rooms
are provided in Table 1. The cold storage cells consist of an outer
carrying structure composed of reinforced concrete and layered
panels. The panels consist of two outer skins and a galvanized plate
with an inner insulated center composed of self-extinguishing
high-insulation-strength polyurethane resins with a standard den-
sity of 38–40 kg/m3. For each type of cold store cell, the thermal
losses and thermal loads have been estimated as follows [6]:
- Qt, thermal losses across the structure of the cell (walls, roof,
and floor);
- Qi, external air infiltration and air renewal;
- Qc, product load;
- Qr, product heat of ripening;
- Qp, infiltration during loading/unloading;
- Qv, thermal loads in the cell due to fans, lamps, engines, and
other devices.
The heaviest working conditions occur during summer with a
mean external temperature of 30–35 °C and a relative humidity
of 60% or greater. The daily mean time of operation has a duration
of approximately 20 h. Data related to the cell design are provided
in Table 2.
The thermal loads pertain to a year of operation by considering
the average temperature and weather climatic data of Palermo
country.
The cooling power duty of each temperature level is as follows:
1770 kW at a temperature level of 15 °C by the refrigerant
side.
The equipment utilizes subcooled pressurized water entering
the cooling facility at a temperature of 160–180 °C and with a tem-
perature difference between the inlet and the outlet in the range
40–50 °C.
Waste heat from the absorption equipment (absorbers and con-
densers) is rejected in the cooling towers whose make-up water is
assured by water wells lying near the cooling tower. The subcooled
pressurized water used to feed the expeller of the absorption
ammonia–water refrigerating equipment enters the system via a
pipeline network (a double insulated pipeline: income and return,
pressure rating 15 bar) belonging to a consortium in the context of
an industrial district, where both the factory for which the feasibil-
ity of the venture will be analyzed and other factories producing
and manipulating foodstuff are partners. Heat will be furnished
at a mean price of 2–5 c€/kWh, and electrical energy will be fur-
nished at a mean price of 12–16 c€/kWh.2
Electrical energy will be furnished by the public grid, and ther-
mal energy will be furnished by a district pipeline connected with
the electric utility. The mean length of the subcooled water pipe-
line is 5 km, which is the distance between the electric utility
and cooling farm.
The analysis of the cycles was performed with a simply method-
ology and utilized software employing the package EES of Klein
S.A. and Alvarado F.L. as a main tool.

- Cold stores operating at a temperature of 0 °C: 1770 kW; Analysis of the absorption cycle that produces cold at the temperature
- Cold stores operating at a temperature of 18 °C: 580 kW. level of 32 °C

Cold generation plant: thermodynamic analysis
The cold generation plant is composed of two absorption sys-
tems working with the pair of ammonia–water:
- Refrigerating equipment that produces a cooling power of
580 kW at a temperature level of 32 °C by the refrigerant side;
A flow sheet of a single-stage absorption refrigerating cycle
working with the ammonia–water is reported in Fig. 1. In terms
of the characteristics of the components and devices, the process
sheet reported in Fig. 1 is identical for both pieces of equipment
producing cold at the temperatures of 32 °C and 15 °C.
2
The price of electricity in Italy for industrial enterprises depends on the power
size of the electric duty and the amount of energy required.
 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26 19

Table 1
Refrigerating warehouse data.

Fresh products Frozen products

Size Internal length Lx (m) 50
Internal width Ly (m) 25
Internal height Lz (m) 8
Thermal insulation Material polyurethane
Thermal conductivity k (W/(m2 K)) 0.025
Thickness s (mm) 100 150
Temperature Indoor temperature Tint (°C) 0 18
Evaporator mean temperature Te (°C) 15 32

Table 2 well as a rectifier, solution heat exchanger, and refrigerant heat ex-
Cold stores heat loads. changer to improve the performance of the cycle. Cold is produced
Item Fresh Frozen
in the cold storage units by means of a loop that circulates a water–
foodstuffs products ethylene–glycol solution. The condenser and absorber are cooled
(kWh) (kWh) by water from a system of cooling towers, whereas the rectifier
Heat transfer across structures Qt 222.74 293.73 is cooled by fresh water coming directly from a water well and re-
Heat due to external air infiltration Qi 36.89 53.85 jected as make up into the cooling towers.
Heat due to product cooling Qc 928.81 – The suitability of the process proposed was evaluated using a
Product heat of ripening Qr 137.60 –
thorough energetic and exergetic analysis.
Other loads (fans, lamps, etc.) Qv 125.46 125.46
Heat due to people Qp 5.05 – The cycle was analyzed using a methodology proposed by Her-
Overall daily heat load Qt 1456.56 473.04 old et al. [7], Alefeld and Radermacher [8], and Baehr [9] and syn-
thetically reported here. The software utilized was developed at
DEIM [10] with the package EES of Klein S.A. and Alvarado F.L.
From left to right, Fig. 1 presents the loop for feeding the hot The energetic and exergetic analysis [11] was performed by
pressurized water to the expeller of the absorption equipment. considering each plant component and writing balance equations
This loop includes the piping connecting the hot water heat ex- for the mass, energy, and exergy rate balance to derive the exergy
changer to the district heating pipeline and auxiliary boilers. The destruction rate [9].
hot pressurized water enters the heat exchanger and then enters The boundary conditions were established by considering some
the expeller of the absorption equipment via a system of hot-water main operational parameters, which were selected in accordance
storage tanks, which is located between of the pipeline and with suitable values whose reliability was assessed in comparison
expellers. with data available in the literature (e.g., performance parameters
The portion of the flow sheet on the right side of Fig. 1 includes for heat exchangers, pump, blowers, compressors, and other equip-
the absorption equipment. This equipment is a single-stage system ment). The algebraic system of equations derived was solved iter-
composed of an expeller, absorber, condenser, and evaporator, as atively. For the numerical values obtained, the balance conditions

Fig. 1. Absorption refrigerating equipment and related facilities.

20 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26

Analysis of the absorption cycle that produces cold at the temperature

level of 15 °C

Fig. 2. Equation set for a plant component: the rectifier.
were verified and the specific exergy expressed on a unit mass ba-
sis was derived for each point considered in the analysis. Then, for
each component, the exergy destruction rate was estimated. In
Fig. 2, the set of balance equations for the rectifier installed in
the water–ammonia solution loop is reported as an example.
Table 3 reports data relevant to the state points considered in
the exergetic analysis of the refrigerating absorption equipment
producing cold at 32 °C. The main data pertaining to the process
concerning the frozen product storage are reported in Table 4.
Fig. 3 shows the exergetic losses in the various components of
the absorption equipment producing cold at a temperature of
32 °C. The total exergetic losses are 501.61 kW. Table 5 reports
the percentage sharing of the exergetic losses in the various com-
ponents of the plant.
The expeller of the absorption equipment is heated by sub-
cooled water from the consortium pipeline, which has a pressure
rating of 15 bar (see Fig. 1). Between the hot water pipeline and
expeller, a hot-water storage tank vessel is installed to buffer the
process. The subcooled water at the inlet has a mean temperature
of 180 °C, and the temperature difference between the inlet and
outlet of the hot water heat exchanger fluctuates between 40
and 50 °C. The storage tank feeds the expeller of the absorption
equipment. The thermal power supplied to the expeller is
577.01 kW, and the rate of cold exergy released by the refrigerating
equipment Eout is 75.4 kW. For the electric-power-feeding auxiliary
equipment and devices (39 kW), the inlet exergy rate in the
absorption equipment amounts to 616.01 kW, and the exergetic
efficiency for this condition of performance is w = Eout/
Etot,in = 12.24%.
The flow sheet of Fig. 1 is also valid for the process related to the
performance of the absorption equipment producing cold at the
temperature level of 15 °C, which is used for fresh products.
The main data pertaining the process are reported in the related
column of Table 2.
Table 6 reports the data relevant to the state points considered
in the exergetic analysis of the refrigerating absorption equipment
producing cold at 15 °C.
The cycle analysis was performed with the same methodology
described briefly in the previous section.
Fig. 4 shows the values of the exergetic losses in the various
components of the absorption equipment producing cold at a tem-
perature level of 15 °C. The total amount of wasted inlet power
due to exergetic losses is 1631.36 kW. Table 7 reports the percent-
age sharing of the exergetic losses in the various parts of the plant.
The expeller of the absorption equipment is heated by sub-
cooled water from the consortium pipeline, which has a pressure
rating of 15 bar (see Fig. 1). Between the hot water pipeline and
expeller, a hot-water storage tank vessel is installed to buffer the
process. The subcooled water at the inlet has a mean temperature
of 180 °C, and the temperature difference between the inlet and
outlet of the hot water heat exchanger fluctuates between 40
and 50 °C. The storage tank feeds the expeller of the absorption
equipment. The thermal power supplied to the expeller is
1725.70 kW, and the rate of cold exergy released by the refrigerat-
ing equipment Eout is 94.34 kW. With the addition of the electric-
power-feeding auxiliary equipment and devices (62.00 kW), the
total inlet exergy rate in the absorption equipment amounts to
1787.70, and the exergetic efficiency for this condition of perfor-
mance is w = Eout/Etot,in = 5.28%.
Analysis of a two-stage compression refrigerating plant, considered as
a reference case for the economic analysis
The economic analysis of the venture considered in the feasibil-
ity study requires a comparison between the proposed solution
and a reference solution.
The reference solution was established by considering a refer-
ence case based on the alternative use of a system composed of a

Table 3
State point for the absorption equipment working at 32 °C.

Point Fluid m (kg/s) p (kPa) t (°C) x (kg/kg) h (kJ/kg) s (kJ/kg/K) e (kJ/kg)

1 Rich sol. 3.81 108.80 30.00 0.31 63.40 0.37 13.86
2 Rich sol. 3.81 1166.96 30.32 0.31 61.02 0.37 12.63
3 Rich sol. 3.81 1166.96 111.54 0.31 327.35 1.49 52.43
4 Weak sol. 3.33 1166.96 132.62 0.21 435.77 1.69 103.81
5 Weak sol. 3.33 1166.96 30.32 0.21 8.62 0.43 21.91
6 Weak sol. 3.33 108.80 30.55 0.21 8.62 0.43 21.04
7 NH3 0.55 1166.96 108.72 0.92 1408.00 4.37 237.43
8 Rich sol. 0.06 1166.96 108.76 0.31 284.30 1.38 41.37
9 Rich sol. 0.48 1166.96 36.00 1.00 1489.00 5.20 80.71
10 Rich sol. 0.48 1166.96 30.00 1.00 341.80 1.49 2.54
11 NH3 0.48 1166.96 5.39 1.00 225.00 1.09 0.43
12 NH3 0.48 108.80 31.90 1.00 225.00 1.14 14.56
13 NH3 0.48 108.80 28.00 1.00 1426.00 6.03 222.61
14 NH3 0.48 108.80 24.04 1.00 1483.00 5.33 36.67
15 Water 16.44 7.00 120.00 503.80 1.53 65.19
17 Water 16.44 7.00 160.00 675.70 1.94 117.51
24 Water 12.79 25.00 104.80 0.37 0.73
25 Water 12.79 35.00 146.60 0.51 2.77
26 Water 38.10 25.00 104.80 0.37 0.73
27 Water 38.10 35.00 146.60 0.51 2.77
28 Water 58.03 25.00 104.80 0.37 0.73
29 Water 58.03 35.00 146.60 0.51 2.77
 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26 21

Table 4
Data for the two absorption equipment.

Item Fresh product Frozen product

Evaporator pressure pem (kPa) 244.85 108.80
Condenser pressure pc (kPa) 1555.76 1166.96
Evaporator temperature Te (°C)  15.00  32.00
Strong solution concentration xr 0.371 0.306
Weak solution concentration xw 0.271 0.206
Distillate concentration xd 0.998 1.000
Circulation ratio f ¼ xxdr x
xw
w
7.29 7.93
Ammonia flow rate md (kg/s) 1.44 0.48
Rich solution flow rate mr (kg/s) 10.55 3.81
Weak solution flow rate mw (kg/s) 9.10 3.33
Expeller water flow rate m15 (kg/s) 16.44 6.15
Evaporator Qe (kW) 1700.00 580.00
Condenser Qc (kW) 1592.43 552.20
Expeller Qh (kW) 2825.25 1056.41
Absorber Qa (kW) 2425.56 860.67
Solution pump Wp (kW) 31.64 9.14
Rectifier Qrec (kW) 534.68 232.30
Solution Heat Exchanger Qs (kW) 3620.41 1479.13
Refrigerant Heat Exchanger Qre (kW) 153.97 55.98
COP 0.60 0.54

The reference system is composed of a two-stage compression

refrigerating cycle, which produces cold at a temperature of
32 °C in the low-pressure (LP) stage and cold at a temperature
of 15 °C in the high-pressure (HP) stage.
The five cold store units working at 18 °C are fed through a
loop into which a solution of water–ethylene–glycol cooled di-
rectly by the evaporators is circulated.
The other five cold store units working at 0 °C are fed by an-
other loop into which a solution of water–ethylene–glycol cooled
in the lower part of the receiver connecting the two HP and LP
stages of the system is circulated.
Fig. 6 presents the data of the exergetic losses in the various
components of the system and the cold exergy. The total exergetic
loss power rate is 823.82 kW. Table 10 reports the percentage shar-
Fig. 3. Absorption refrigerating equipment producing cold at 32 °C: exergetic
ing of the exergetic losses in the various components of the plant.
losses, cold exergy, and electric exergy (values in kW).
The cycle analysis was performed using a methodology that was
Table 5
described briefly in the previous sections.
Absorption refrigerating equipment producing cold at 32 °C: Exergetic losses, The vapor compression refrigerating equipment is fed by elec-
percentage values. tric energy supplied by the public grid (the input exergy Ein), and
Pressure and heat losses 13.46%
the compressors and LP and HP stages have a power duty of
Electric auxiliaries 1.48% 819.90 and 60.20 kW, respectively. The total power duty, which
Hot water HX 5.15% also accounts for the electric power needed due to auxiliary equip-
Expeller 9.60% ment and devices, amounts to 1236.13 kW. The total exergy avail-
Absorber 16.86%
able as the exergy rate of cold, Eout, produced in the two-cell
Solution HX 4.95%
Solution valve 0.57% system working at 0 °C and 18 °C is 173.63 kW, and the exergetic
Rectifier 17.70% efficiency for this condition of performance is w = Eout/
Condenser 8.71% Etot,in = 14.05%.
Refrigerant HX 12.00%
Throttling valve 1.43%
Evaporator 4.95%
Energetic and environmental analyses
Cold storage HX 3.14%
Sum of exergy losses 100.00% 81.43%
Cold exergy 12.24% The process described in Sections ‘‘Analysis of the absorption
Electric auxiliaries power 6.33% cycle that produces cold at the temperature level of 32 °C’’
Incoming total exergy 100.00% and ‘‘Analysis of the absorption cycle that produces cold at
the temperature level of 15 °C’’ requires hot pressurized water
two-stage reciprocating compression refrigerating plant, which at 160–180 °C via a pipeline from the utility of ENEL Production
will produce cold at temperatures of 32 and 15 °C. The refer- Spa.
ence vapor compression refrigerating equipment was designed The mean flow rate is 22.6 kg/s. The thermal energy required to
for the same cold duty (at both 15 and 32 °C), for which the feed the expellers of the absorption equipment annually is
two absorption refrigerating equipment systems relevant to the 3.5 GWh, and the electrical energy required annually is 6700 kWh.
feasibility study are designed. The reference process based on the use of a two-stage recipro-
The operational data relevant for the system analyzed are re- cating compressor requires 675 MWh of electrical energy annually.
ported in Table 8 (Fig. 5 presents a process flow sheet); the main The total amount of primary energy needed annually when
data relevant to state points are reported in Table 9. using the absorption equipment fed by hot pressurized water
22 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26

Table 6
State point for the absorption equipment working at 15 °C.

Point Fluid m (kg/s) p (kPa) t (°C) x (kg/kg) h (kJ/kg) s (kJ/kg/K) e (kJ/kg)

1 Rich sol. 10.55 244.85 40.00 0.37 43.25 0.47 5.31
2 Rich sol. 10.55 1555.76 40.45 0.37 40.20 0.48 3.70
3 Rich sol. 10.55 1555.76 110.06 0.37 303.11 1.46 57.51
4 Weak sol. 9.10 1555.76 130.31 0.27 397.21 1.64 97.72
5 Weak sol. 9.10 1555.76 40.45 0.27 0.71 0.53 20.23
6 Weak sol. 9.10 244.85 40.71 0.27 0.71 0.54 19.07
7 NH3 1.58 1555.76 107.33 0.95 1413.00 4.39 236.38
8 Rich sol. 0.14 1555.76 107.36 0.37 260.56 1.35 46.95
9 Rich sol. 1.44 1555.76 44.07 1.00 1491.00 5.11 107.49
10 Rich sol. 1.44 1555.76 40.00 1.00 390.60 1.65 6.10
11 NH3 1.44 1555.76 18.13 1.00 284.90 1.30 0.10
12 NH3 1.44 244.85 14.14 1.00 284.90 1.34 10.27
13 NH3 1.44 244.85 10.00 1.00 1451.00 5.76 118.37
14 NH3 1.44 244.85 34.78 1.00 1488.00 5.21 75.96
15 Water 16.44 7.00 120.00 503.80 1.53 65.19
17 Water 16.44 7.00 160.00 675.70 1.94 117.51
24 Water 12.79 25.00 104.80 0.37 0.73
25 Water 12.79 35.00 146.60 0.51 2.77
26 Water 38.10 25.00 104.80 0.37 0.73
27 Water 38.10 35.00 146.60 0.51 2.77
28 Water 58.03 25.00 104.80 0.37 0.73
29 Water 58.03 35.00 146.60 0.51 2.77

418.17 Table 8
Data for the two stage compression refrigerating plant (reference plant).

Evaporation temperature 32.00 °C

Evaporation pressure 108.20 kPa
203.92 209.48 212.19
181.87 Condensation temperature 40.00 °C
126.22 Condensation pressure 1555.00 kPa
94.34 Intermediate temperature 15.00 °C
69.03 59.75 62.83 50.63 62.00 Intermediate pressure 236.20 kPa
11.78 10.49 14.99 Ammonia flow rate at LP stage 0.45 kg/s
Ammonia flow rate at HP stage 2.11 kg/s
Compression power 880.00 kW
COP 2.67

The primary energy needed for the supply of electric energy to

Fig. 4. Absorption refrigerating equipment producing cold at 15 °C: exergetic auxiliary equipment and devices, given the context of the Sicily
losses, cold exergy, and electric exergy (values in kW).
country, is estimated as follows3:

6700 kWh  860 kcal=kWh

Table 7 ¼ 1:57 toe ð2Þ
Absorption refrigerating equipment producing cold at 15 °C: Exergetic losses, 0:37  107 kcal=toe
percentage values.
Then, the total annual primary energy consumption is esti-
Pressure and heat losses 12.50% mated to be 392.97 toe.
Electric auxiliaries 0.72%
Alternatively, the electrical energy needed annually when using
Hot water HX 4.23%
Expeller 12.84% the two-stage reciprocating compression refrigerating power plant
Absorber 11.15% (the reference plant) is
Solution HX 3.66%
Solution valve 0.64% 675; 000 kWh  860 kcal=kWh
Rectifier 13.01% ¼ 156:91 toe ð3Þ
Condenser 7.74% 0:37  107 kcal=toe
Refrigerant HX 25.63%
Throttling valve 0.92% Then, the data reported indicate that more than twice as much
Evaporator 3.85% primary energy is needed when utilizing the absorption equip-
Cold storage HX 3.10% ment: 392.97/156.91 = 2.5.
Sum of exergy losses 100.00% 91.25% In the venture proposed in this feasibility study, the need for
Cold exergy 5.28%
Electric auxiliaries power 3.47%
thermal energy is satisfied by the supply of subcooled water enter-
Incoming total exergy 100.00% ing the consortium pipeline. The hot pressurized water is produced
by recovering a portion of the thermal reject available by the ex-
haust gas from the gas turbines.
cproduced with boilers burning natural gas with a mean thermal
3
efficiency of 0.78 [12,13] is as follows: In Sicily country in the year 2011, the mean efficiency of electric energy
production of the entire utility system operating in the country reached 0.47, and the
3; 550; 000 kWh  860 kcal=kWh total mean efficiency of the electric system of Sicily country, given the grid and other
¼ 391:40 toe=year ð1Þ losses associated with final users, was 0.37 (data of TERNA, Italy and ‘‘Sicilia e
0:78  10; 000 kcal=kgoe  1000 kgoe =toe
Ricerca’’, Regione Siciliana).
 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26 23

Fig. 5. Two-stage reciprocating compression refrigerating power plant (reference plant).

Table 9 Table 10
State point for the two stage compression refrigerating plant. Two stage compression refrigerating power plant: Exergetic losses, percentage values.

Point Fluid m (kg/s) p (kPa) h (kJ/kg) s (kJ/(kg K)) e (kJ/kg) Electric auxiliaries 1.43%
1st stage compressor 1.92%
1 Water 74.40 104.80 0.37 0.73
2nd stage compressor 3.99%
2 Water 74.40 146.60 0.51 2.77
Condenser 29.97%
3 NH3 0.45 108.20 1432.00 6.15 249.46
1st stage throttling valve 0.40%
4 NH3 0.45 263.20 1548.00 6.20 149.31
2nd stage throttling valve 2.03%
5 NH3 2.11 263.20 1457.00 5.88 146.66
LP Evaporator 4.54%
6 NH3 2.11 1555.00 1792.00 5.99 155.49
LP Cold storage HX 1.92%
7 NH3 2.11 1555.00 317.90 1.41 1.98
HP Evaporator 29.63%
8 NH3 2.11 236.20 317.90 1.47 14.73
HP Cold storage HX 13.18%
9 NH3 0.45 236.20 131.20 0.74 6.88
Pressure and heat losses 11.00%
10 NH3 0.45 108.20 131.20 0.75 3.56
Sum of exergy losses 100.00% 82.59%
Cold exergy 17.41%
246.91 244.10
The energy savings of primary energy resources can be consid-
173.63 ered as the difference between the primary energy needed for the
vapor compression refrigerating equipment and that needed to
108.56
90.62 feed the auxiliary equipment and devices of the absorption equip-
ment, whose thermal need is considered free in this type of
32.83 37.40
11.75 15.84 16.70 15.78 analysis:
3.31

ð391:40  1:57Þ toe=year ¼ 389:83 toe=year ð4Þ

5
The reduction of carbon dioxide emissions (considering the
year 2011 as a reference year) is 239.25 toe/year, whereas the reduc-
tion in carbon dioxide equivalent emissions is 277.53 toe/year.

Fig. 6. Two-stage reciprocating compression refrigerating power plant: exergetic Economic analysis
losses and cold exergy (values in kW).

The economic analysis performed [14–17] is based on the dif-

In terms of energy savings, the philosophy of Enel Production is
not that of selling any heat service. Thus, heat recovered outside
the electric utility can be considered free. However, it is necessary
to consider cost items relevant to the management of the consor-
tium pipeline,4 whose building cost was covered by governmental
funds because the facility is considered of public interest.
ferential investment in two alternative ventures: one pertaining
a two-stage vapor compression cooling plant and the other per-
taining two single-stage absorption cooling equipment systems
working with ammonia–water.
The differential investment cost reported in the analysis when
considering the two ventures analyzed is €88,000. In each case,

4
Thus, heat furnished to the venture proposed has a cost, although contained; see
at the beginning of section ‘‘Cold generation plant: thermodynamic analysis’’.
5
During the year 2011, the electric energy produced by the electric utility ‘‘Ettore
Maiorana’’ of Termini Imerese was 4,887.88 GWh, and the total carbon dioxide
emissions were 1,749.86 kt (data of Enel Production and ‘‘Sicilia e Ricerca’’).
24 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26

Table 11
Main parameters derived by the economic cash flow analysis.

r (%) PWbt (M€) TRbt (years) Pwat (M€) TRat (years) NBCRat (%) ROIat (%) PWNR (M€) TRPWNR (years)
2 4.28 0.77 2.36 1.39 2779.60 128.98 2.06 2.21
3 3.79 0.78 2.08 1.40 2468.81 113.44 1.82 2.23
4 3.37 0.79 1.85 1.41 2201.71 100.09 1.61 2.25
5 3.01 0.79 1.65 1.42 1971.40 88.57 1.43 2.27
6 2.70 0.80 1.47 1.43 1772.15 78.61 1.28 2.29
7 2.43 0.81 1.32 1.44 1599.21 69.96 1.15 2.32
8 2.19 0.82 1.19 1.46 1448.60 62.43 1.03 2.34

Table 12
Mean levelized cost of cold after 10 and 30 years.

Years Vapor compression cooling plant Absorption equipment

10 0.31 c€/kWh 0.26 c€/kWh
20 0.23 c€/kWh 0.16 c€/kWh

In addition, the escalation rate for waste heat was considered by

Fig. 7. Comparison of TR on investment based on PWbt, PWat, and PWNR.
Fig. 8. Comparison of values of PWbt, PWat, and PWNR obtained in the economic
analysis.
the costs include the equipment cost, spare parts and materials,
piping works, and building cost of the machine room and of all nec-
essary facilities, such as storage tanks, cooling towers, piping
works, and labor.6
For the current cost of electric energy, a price of 15.15 c€/kWh
was established using a mean price estimated by AEEG7 in Italy
in the 2012 ‘‘Annual Report on the state of services and regulatory
activities’’ [18] and by considering the economic size of the farm
and its energy needs as established by the fare system in Italy. The
annual rate of escalation forecasted was considered using a factor
of 1.057. The cost of waste heat furnished by the utility was estab-
lished as 2.00 c€/kWh, which includes all charges for the supply up
to the farm inlet.
6
The costs for the pipeline are those relevant to the piping to connect the pipeline
of the Consortium with the farm facility, which is 46,000 € (8% of the total cost of the
consortium pipeline or approximately 5% of the total investment cost for the
absorption equipment refrigerating plants).
7
The Regulatory Authority for Electricity and Gas (AEEG, Autorità per l’Energia
Elettrica e il Gas) is the independent body that regulates, controls, and monitors the
electricity and gas markets in Italy.
a factor similar to that for the electric energy.
The economic comparison was performed by utilizing software
developed at DEIM in the context of the research program on
‘‘Innovative Technologies and Design Methodologies of Energy Sys-
tems’’ granted by the University of Palermo [14,15]. The analysis
considers a discounted cash flow after tax related to the venture
for the entire activity period, which is 20 years.
The virtual cash flow income utilized in the numerical simula-
tion of the differential economic venture analysis is represented
by the savings obtained by purchasing heat and electric energy
that feeds the absorption cooling plant. For the alternative vapor
compression equipment, the cost of purchasing electric energy
and the differential cost for maintenance, spare parts, materials,
and labor are considered in the venture analysis. In addition, the
cost of a loan for purchasing the equipment is considered, and
the cash flow considers the tax rate on the profit, book deprecia-
tion, and so on. The tax rate considers the mean charge in the EU
and is established as 44% of the net income (inflow–outflow).
The amount of the expenditure during the first year of operation
for purchasing thermal and electric energy feeding the absorption
equipment is €71,000 and €6700, respectively, whereas the electric
expenditure of the alternative venture is €102,000. In the following
years, the cost of expenditures increases due to the escalation rate.
The discount rate considered in the analysis varies in the inter-
val of 2–8%. Table 11 presents the results for PWbt, TRbt, PWat, TRat,
PWNR, and TRPWNR.
A comparison between the values of the time of return (TR) ob-
tained by analyzing each present worth value cumulated in
20 years by the cash flow analysis is reported in Fig. 7, and Fig. 8
compares PWbt, PWat, and PWNR. The values obtained confirm the
feasibility of the venture (a mean discount rate in this area of the
EU is now 4.6%).
The worst value of TR is that based on PWNR; as shown in
Table 11, the values obtained are less sensitive to the variation in
the values of r, which are less than 2.5 years in each case. The val-
ues of TR based on PWNR are more conservative than the others.
The net cost–benefit ratio varies from 1.45% for the higher value
of r (8%) to 2.8% for the lower value of r (2%); the return on invest-
ment varies between 62% (for r = 8%) and 129% (for r = 2%).
In summary, the analysis confirms that the differential cost of
€88,000 has a TR of less than 2.5 years when building the absorp-
tion refrigerating plant as an alternative to the vapor compression
refrigerating plant.
This economic analysis also pertains to the estimate of the
mean levelized cost of cold produced during the entire life of the
 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26 25

plants considering the absorption cooling plant and vapor com- Three kind of cash flow are used in venture analysis done:
pression cooling plant. The data obtained in this analysis are re-
ported in Table 12. j Investment cash flow before tax;
The values reported here confirm the feasibility of the venture: j Investment cash flow after tax;
the cost of producing cold using the absorption refrigerating plants j Financing cash flow after tax.
in the first 10 years is a 16% less than that using the vapor com-
pression refrigerating plant; in the entire lifespan of 20 years, the CFbt, investment cash flow before tax:
cost of producing cold using the absorption refrigerating plants is
30% less than that using the vapor compression refrigerating plant. CF bt ¼ Ri  ðOi þ Pi Þ ðA:1Þ
- Ri, receipts (annual cash inflows);
Conclusions
- Oi, disbursements (annual cash outflows for operating expense
including start-up cost, fuel, operation and maintenance);
The data obtained from the feasibility study demonstrate that
- Pi, disbursements (annual cash outflows for ad-valorem
the proposed venture is feasible when the main objective involves
expense).
an integrated use of energy resources. The venture is also expected
to result in the reduced environmental impacts due to lower green-
PWbt, net present worth of venture before tax:
house gas emissions.
In summary, the main expected benefits are: X Ri X Oi þ Pi
PW bt ¼  I ðA:2Þ
i
ð1 þ rÞi i
ð1 þ rÞi
- A primary energy savings of 389.83 toe/year;
- A reduction in greenhouse gas emissions of 277.53 toe/year of - I, initial investment;
CO2eq. - r, nominal discount rate.

Given the differential costs of €88,000 between the two alterna- CFat, investment cash flow after tax:
tive options, the economic analysis gives a TR on the investment
(based on the present worth of the net revenue) between 2 and CF at ¼ Ri  ðOi þ Pi Þ  T i ðA:3Þ
3 years; thus, the data obtained demonstrate the feasibility of the
proposed venture. T i ¼ sðRi  Oi þ Pi  Dsi  r b f b V i Þ ðA:4Þ
Given the entire duration of the venture activity (20 years), the
cumulated8 primary energy savings, and the cumulated reduction in - Ti, annual tax cash flow stream;
greenhouse gas emissions, the differential investment costs ex- - s, annual overall tax rate;
pected, which are relevant only to the reduction in greenhouse gas - Dis, annual tax depreciation charge;
emissions, are as follows: - rb, debt interest rate;
- fb, fraction of debt in the investment;
(a) Specific differential investment costs related to primary - Vi, unrecovered value of investment at the beginning year i.
energy savings:
PWat, net present worth of venture after tax:

€88; 000 X Ri X Oi þ Pi X T i
¼ 11:28 €=toe ð5Þ PW at ¼   I ðA:5Þ
20 years  389:83 toe=year ð1 þ rÞi ð1 þ rÞi ð1 þ rÞi
i i i
(b) Specific differential investment costs related to greenhouse
NBCRat, benefit cost ratio:
gas emissions:
PW at
NBCRat ¼ ðA:6Þ
I
€88; 000  
¼ 15:84 c€=t CO2eq ð6Þ ROIat, return on investment:
20 years  277:53 toe=year
CF at  DBi
ROIat ¼ ðA:7Þ
I
Appendix A. Definitions pertaining the venture analysis CF at levelized cash flow after tax.
CFPWNR, financing cash flow after tax:
For sake of clearness need there is to define main parameters in-
volved in venture analysis. Cash flow is defined as the movement CF PWNR ¼ Ri  ðOi þ Pi Þ  T i  ½ðDBi þ r b V wi Þ  sðDsi
of money both into the project (revenues) and out of the project þ rb f b V i Þ ðA:8Þ
(disbursements).
B
Cash flows can be classified into: - Di , annual book depreciation charge
- Vwi, whole amount of money on which must be paid interest at
j Operational cash flows: cash received or expended as a result of the end of year i
the company’s core business activities;
j Investment cash flows: cash received or expended through cap- PWNR, present worth of net revenue:
ital expenditure, investments or acquisitions;
j Financing cash flows: cash received or expended as a result of X Ri X Oi þ Pi X T i
PWNR ¼  
financial activities, such as receiving or paying loans, issuing i
ð1 þ rÞi i
ð1 þ rÞi i
ð1 þ rÞi
or repurchasing stock, and paying dividends.
X ½ðDB þ rb V wi Þ  sðDs þ r b f V i Þ
i i b
 ðA:9Þ
8 i
ð1 þ rÞi
Over 20 years.
26 A. Dispenza et al. / Sustainable Energy Technologies and Assessments 3 (2013) 17–26
Time of return on investment TRbt, TRat, TRPWNR reported in re-
sults of venture analysis was derived utilizing respectively cumu-
lated PWbt, PWat, PWNR during the years up to reach the value of
initial capital expenditure; note that TRPWNR is higher than those
derived using PWbt or PWat.
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