Operating expenseAn operating expense is an ongoing cost for running a product, business, or system. Its counterpart, a capital expenditure (capex), is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves capex, and the annual paper, toner, power and maintenance costs represents opex. For larger systems like businesses, opex may also include the cost of workers and facility expenses such as rent and utilities.
Waste heat recovery unitA waste heat recovery unit (WHRU) is an energy recovery heat exchanger that transfers heat from process outputs at high temperature to another part of the process for some purpose, usually increased efficiency. The WHRU is a tool involved in cogeneration. Waste heat may be extracted from sources such as hot flue gases from a diesel generator, steam from cooling towers, or even waste water from cooling processes such as in steel cooling.
Shell-and-tube heat exchangerA shell-and-tube heat exchanger is a class of heat exchanger designs. It is the most common type of heat exchanger in oil refineries and other large chemical processes, and is suited for higher-pressure applications. As its name implies, this type of heat exchanger consists of a shell (a large pressure vessel) with a bundle of tubes inside it. One fluid runs through the tubes, and another fluid flows over the tubes (through the shell) to transfer heat between the two fluids.
Heat recovery steam generatorA heat recovery steam generator (HRSG) is an energy recovery heat exchanger that recovers heat from a hot gas stream, such as a combustion turbine or other waste gas stream. It produces steam that can be used in a process (cogeneration) or used to drive a steam turbine (combined cycle). HRSGs consist of four major components: the economizer, evaporator, superheater and water preheater . The different components are put together to meet the operating requirements of the unit.
Cost curveIn economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms optimize their production process by minimizing cost consistent with each possible level of production, and the result is a cost curve. Profit-maximizing firms use cost curves to decide output quantities. There are various types of cost curves, all related to each other, including total and average cost curves; marginal ("for each additional unit") cost curves, which are equal to the differential of the total cost curves; and variable cost curves.
Copper in heat exchangersHeat exchangers are devices that transfer heat to achieve desired heating or cooling. An important design aspect of heat exchanger technology is the selection of appropriate materials to conduct and transfer heat fast and efficiently. Copper has many desirable properties for thermally efficient and durable heat exchangers. First and foremost, copper is an excellent conductor of heat. This means that copper's high thermal conductivity allows heat to pass through it quickly.
Opportunity costIn microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, it is the "cost" incurred by not enjoying the benefit that would have been had by taking the second best available choice. The New Oxford American Dictionary defines it as "the loss of potential gain from other alternatives when one alternative is chosen.
Energy recoveryEnergy recovery includes any technique or method of minimizing the input of energy to an overall system by the exchange of energy from one sub-system of the overall system with another. The energy can be in any form in either subsystem, but most energy recovery systems exchange thermal energy in either sensible or latent form. In some circumstances the use of an enabling technology, either daily thermal energy storage or seasonal thermal energy storage (STES, which allows heat or cold storage between opposing seasons), is necessary to make energy recovery practicable.
Capital expenditureCapital expenditure or capital expense (abbreviated capex, CAPEX, or CapEx) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Capital expenditures contrast with operating expenses (opex), which are ongoing expenses that are inherent to the operation of the asset.
Heat pumpA heat pump is a device that uses work to transfer heat from a cool space to a warm space by transferring thermal energy using a refrigeration cycle, cooling the cool space and warming the warm space. In cold weather a heat pump can move heat from the cool outdoors to warm a house; the pump may also be designed to move heat from the house to the warmer outdoors in warm weather. As they transfer heat rather than generating heat, they are more energy-efficient than other ways of heating a home.
Ground source heat pumpA ground source heat pump (also geothermal heat pump) is a heating/cooling system for buildings that uses a type of heat pump to transfer heat to or from the ground, taking advantage of the relative constancy of temperatures of the earth through the seasons. Ground source heat pumps (GSHPs) – or geothermal heat pumps (GHP) as they are commonly termed in North America – are among the most energy-efficient technologies for providing HVAC and water heating, using far less energy than can be achieved by burning a fuel in a boiler/furnace or by use of resistive electric heaters.
Cost accountingCost accounting is defined by the Institute of Management Accountants as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, allocating, aggregating and reporting such costs and comparing them with standard costs". Often considered a subset of managerial accounting, its end goal is to advise the management on how to optimize business practices and processes based on cost efficiency and capability.
