Energy Efficiency Case StudiesMAGNESIUM CORPORATION OF AMERICASalt Lake CityMore than 20 years ago, Magnesium Corporation of America (Magcorp) installed a combined heat and power (CHP) system to help minimize energy costs. Today, the system still operates effectively, and Magcorp has integrated the system into its magnesium production process. By using a substantial portion of the total energy available from the input energy in the process, the CHP system helps the company save energy and money.
Magcorp’s CHP system generates electricity with three 12.4-megawatt natural gas-fired turbines. The exhaust gas from the turbine system is split between a waste heat boiler, which produces steam, and a spray drying system, which plays an integral role in the production process. The energy savings Magcorp realizes from the CHP system make it a worthwhile investment, as a significant portion of the magnesium production process is powered by energy that is generated on-site. In addition to these energy savings, Magcorp realizes substantial cost savings by reducing the overall amount of power it must purchase for the manufacturing process. The economic benefits of the CHP system depend on the value of the electricity generated, the cost of natural gas, and the value of the thermal energy used by the system. The table below lists the projected annual savings generated by the CHP system under various electricity and natural gas pricing scenarios.
Magcorp’s example demonstrates that the economic returns from a CHP system are attractive under conditions of high load factor and full thermal utilization. Reduced need for transmission system upgrades, reduced real system losses, backup generation, and system voltage support may provide additional value if utilities pass along savings that result from a site’s installation of distributed generation systems. Careful analysis of costs and energy use assures Magcorp that the CHP system provides value to its operation. Other plants and facilities can do the same to determine if CHP has potential for their operations. Adapted from an Energy Matters case study available at http://www.oit.doe.gov/bestpractices/energymatters/docs/emfall01_supp.doc. For more information on CHP or the Magcorp process, contact Roger Swenson at roger.swenson@prodigy.net or Dr. R. Neelameggham at rneelameggham@magnesiumcorp.com. |
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Magcorp is the only large magnesium production facility remaining in the
United States. At full production, the facility produces more than 80 million
pounds of magnesium per year. The Great Salt Lake provides the mineral source
for the magnesium. Magcorp pumps brine from the lake, converts the brine into
magnesium chloride powder, and then purifies and melts the magnesium chloride
powder into molten magnesium metal, which is cast into ingots for shipment. The
process is very energy intensive, with energy use accounting for 40% of
production costs.