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economic calculation

To show you how effective our solutions are, we have made a hypothetical example:

Simple Consideration:

Investment: $ 100,000. - , annually saved net $ 25,000.-

Working time 10 years =>after 4 years the heat recovery system is paid and then makes $ 25,000.- annually the remaining 6 years.
Total net profit $ 150,000.-


Sophisticated consideration (laniary):

Investment: $ 100,000.-

Working time: 10 years, after which the equipment it written off.

Income: Saved fuel $ 30,000.- annually

Expenses: Extra operation cost due to the heat recovery system $ 2,000.- annually. Laniary write off over 10 years equals $ 10,000.- annually.

Loss of interest rate of the average value in 10 years ($ 50,000.- ) by 6 % p.a. equals $ 3,000.- annually.

Net Profit: $ 15,000.- annually in 10 years.

Total net profit $ 150,000.-


Please note
 that this is a hypothetical example and the figures that are used are just for illustrative purposes – for example the working time of our products are more than often 20-25 years.  


Calculation of the profitability is done not only by setting up values the classic way. Using the above example (simple consideration) the annual total expenses of $ 25,000.- (which including write off, interest rate and extra operational/maintenance cost) must be compare to what is gained by higher thermal performance in e.g. the production plant.

The calculation is in principle like above. If additional heat should be produced by upgrading the oil/gas fired heaters (without heat recovery) it would mean extra fuel expenses of $ 30,000.- plus investing in the upgrading. Therefore the net profit will be way above the $ 15,000.- . The exact calculation is thus much more complicated, and it involves not only the figures related to the heat recovery system. Therefore it would not give a typically picture to make such an example.

Furthermore extra savings can sometimes be made in the form of public financial support. Heat recovery is of course healthy for the economy - sometimes even for the national economy(despite less fuel tax income). In environmentally terms, the heat recovery contribute to less emission, and that has made the public interested in heat recovery too. 
In many countries or regions it is possible to get subsidies (economical support) for stimulating heat recovery initiatives. It does varies a lot - in some countries it is forced by law to keep the temperatures and the amount of flue gas (emission) below a certain level. But the tendency is that public interest develops rapidly, thus also the possibility of public subsidies.

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If you wish to hear more about your opportunities for implementing a heat recovery system, you are more than welcome to contact us.

Contact ATHCO-Engineering

Call us at +45 76 333 555 or leave a message.