Converting a Batch Heater to Continuous Flow
Example of an old batch dryer
In this hypothetical situation a farmer has yields of 170 bushels an acre of corn and farms 600 acres. This would mean he:
- Dries 100,000 bushels
- Current system uses 2,900 btu/lb. at 10 pt
- System uses $32,000 to dry
- (2900btu/lb. *7.42lb ( 10pt)* 70% energy usage*100000 bushel)/ 91,500 BTU/GAL = 16,461 gallon = $32,000
Proposed system: 1216 dryer
- With Heat reclaim
- 8’ auger/m24' leg
- Use $16,000 propane
- 20-15 pt reduction
- Propane @ $2 gallon
- Cost $70,000 installed
1216 Return On Investment (ROI)
- Initial ROI = $16,000 / $70,000 = 23%
- Simple payback = $70,000 / $16,000= 4.3 years
- System costs hypothetically $70,000 before grant
- Energy savings
$32,000
-$16,000
$16,000
1216 system Cash-Flow
First Year Cash flow +++ $18,760
- True cost = $70,000- $17,500 grant = $52,500
- Annual payment @ 7% for 7 years = $9,740
- Annual depreciation = 70,000/2*35% = $12,250
- Cash flow
- $16,000 energy savings
- + $12,250 Tax savings
- – $9,740 loan payment
- = $18,760
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