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OAR Box 1828 

Prepped by Ollie Stewart 

Document Number: 

307) IV-B-11 

Docket Number: 

A-83-27 

Printed 11/12/2008 11:12:59 AM Sheet 307 of 325 
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* « RADIAN A-83-27 

CORPORATION IV-B-11 

MEMORANDUM 

DATE: February 5, 1987 

TO: Dianne Byrne, EPA/SDB 

FROM: Edward Moretti and Dav^a^Hh-ite, Radian Corporation 

SUBJECT: Institutional and District Heating Boiler Sales 

INTRODUCTION 

The proposed new source performance standard (NSPS) to reduce S02 

emissions from boilers of 100 million Btu/hr and larger (51 Federal Register 

22385, June 19, 1986) applies to institutional and district heating (IDH) as 

well as industrial boilers. This memorandum reviews available boiler sales 

information plus recent telephone inquiries to several trade associations for 

the purpose of better quantifying the number of IDH boilers installed 

annually which would potentially be covered by the proposed NSPS. 

DISCUSSION 

Three organizations were contacted for information on IDH boilers: the 

Association of Physical Plant Administrators (APPA), the International 

District Heating and Cooling Association (IDHCA), and the North American 

District Heating and Cooling Institute (NADHCI). None of these organizations 

1 2 3 

was able to directly provide information useful to this study. ' ' However, 

IDHCA did suggest contacting Dr. Si Oliker at Burns and Roe Inc. (an architect/engineering firm with IDH experience) and Mr. Jurgen Kleinau of 

Keeler/Dorr-Oliver (KDO) (a major boiler manufacturer). Dr. Oliker estimated, 

based on his knowledge of the IDH business, that 40-45 IDH boilers are 

installed annually, and that less than 10 percent of these boiler (i.e., less 

4 

than four units) are >100 MMBtu/hr. Jurgen Kleinau did not have any sales 

5 

information on IDH boilers. 

Progress Center/3200 E. Chapel Hill Rd./Nelson Hwy./P.O. Box 13000/Research Triangle Park. N.C. 27709/(919)541-9100 
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Due to the limited data obtained from these groups, we reviewed the 

available literature for additional information. The November issue of Power 

6 12 magazine each year provides data on boilers ordered the previous year. 

The provided data includes a variety of parameters such as boiler size, fuel 

use, and purpose (e.g., power generation, process steam, and space heating). 

Table 1 lists each boiler contained in the Power data between 1979 and 1985 

with a capacity of >80,000 pounds of steam/hr (roughly equal to 100 MMBtu/hr) 

and having the stated purpose of space heating only. We have classified each 

of these boilers as institutional or district heating based on their ownership: government facilities and universities were classified as institutional 

boilers while utilities were assumed to operate district heating boilers. 

Note that 12 of the 14 reported institutional boilers were sold to federal 

military installations. Except for the two boilers sold to Washington State 

University and the University of Virginia, institutional users such as 

hospitals and universities rarely purchased units larger than 50,000 pph. (A 

significant number of additional boilers >80,000 pph were listed by Power for 

production of both space and process heat, but are not listed here. Such 

boilers are considered industrial boilers, not institutional or district 

heating boilers.) 

The number of boiler sales listed by Power were compared with American 

13 Boiler Manufacturers Association (ABMA) annual sales data to determine the 

percentage of all boiler sales reported. Table 2 lists the Power and ABMA 

totals by year for units larger than 100 MMBtu/hr. During the 7 years of the 

survey, Power reported a total of 205 boilers, or roughly 44 percent of the 

469 boilers in the same size range reported by ABMA. No information is 

available on the causes of this difference. Also listed is a tabulation of 

the number of institutional and district heating boilers for each year based 

on Table 1. 

CONCLUSIONS 

The actual number of large IDH boilers sold is uncertain. However, 

assuming the under representation of boilers in the Power data is not based on 

any systematic bias, the total number of IDH boilers can be estimated by 
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dividing the number listed in Power by the estimated percent coverage of the 

survey (44 percent). Based on this approach, sales of large institutional and 

district heating boilers are assumed to average 4.6 and 2.0 units per year, 

respectively, or a total of 6.6 units. This total equates to roughly 10 

percent of all boilers sold in this size range. This number is comparable to 

U.S. Department of Energy data on boiler sales between 1977 and 1981 

indentifying 22 IDH boilers out of total boiler sales of roughly 300. * 

The reason for the large number of institutional boilers sold to the 

military between 1981 and 1983 is not known, but may have resulted from a 

Department of Defense directive to reduce consumption of oil for national 

security reasons. In addition to the 12 boilers listed on Table 1, 10 more 

units larger than 80,000 pph were sold to military installation in 1982-83 for 

space and process heat purposes. Of the combined 22 units, 21 were designed 

to burn coal and one to burn wood wastes. If these units are excluded from 

the definition of institutional boilers, total reported sales of large 

institutional boilers over the seven year period declines to two boilers. On 

an annual basis (after adjustment for under reporting in the Power survey), 

this equates to roughly 0.7 units per year. The combined IDH boiler sales of 

2.7 units (0.7 institutional and 2.0 district heating boilers) represents 

roughly four percent of total large boiler sales. 

cc: Fred Porter, EPA/SDB 

Jim Eddinger, EPA/ISB 

Robert Pahel-Short, EPA/EAB 
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REFERENCES 

1. LeRoy, Wayne E., Association of Physical Plant Administrators of 

Universities and Colleges, telephone conversation with Edward Moretti, 

Radian Corporation, October 28, 1986. 

2. Hobson, David, International District Heating and Cooling Association, 

telephone conversation with Edward Moretti, Radian Corporation, November 

11, 1986. 

3. Eckfield, Richard, North American District Heating and Cooling Institute, 

telephone conversation with Edward Moretti, Radian Corporation, October 

28, 1986. 

4. Oliker, Si, Burns and Roe Inc., telephone conversation with Edward 

Moretti, Radian Corporation, November 13, 1986. 

5. Kleinau, Jurgen, Marketing Manager, Keeler/Dorr-Oliver, telephone 

conversation with Edward Moretti, Radian Corporation, November 18, 1986. 

6. Schwieger, Bob, "Changes in Fuel-use and Cogeneration Rules Brighten 

Boiler Sales Picture", Power. November 1980, pp. 529-533. 

7. Schwieger, Bob, "Industrial Boilers Approach Small Utility Units in 

Capacity Pressure", Power, November 1981, pp. 523-526 

8. Schwieger, Bob, "Solid Fuels Increase Complexity of Industrial Power 

plants", Power. November 1982, pp. 165-173. 

9. Schwieger, Bob, "New Orders Continue to Decline, but Plants Grow in 

Sophistication", Power. November 1983, pp. 177-183. 

10. Schwieger, Bob, "Boiler Sales Decline Again in 1983, Rebound Likely This 

Year", Power. November 1984, pp. 179-185. 

11. Schwieger, Bob, "Boiler Capacity Sold Last Year Tops 1983; Outlook Good", 

Power. November 1985, pp. 179-185. 

12. Schwieger, Bob, "Natural Gas Makes Inroads Against Oil, Solid Fuels", 

Power. November 1986, pp. 154-159. 

13. Unpublished data on boiler sales submitted to EPA by ABMA, dated 8/15/86. 

14. Letter from Tim Hogan, Energy and Environmental Analysis, Inc., to Robert 

Pahel-Short, U.S. EPA, Research Triangle Park, NC. Sales of Large 

Commercial/Institutional Boilers. December 1, 1986. 
I 

C 

TABLE 1. POWER MAGAZINE LISTING OF IDH BOILER SALES >. 80.000 pph (1979-1985) 

Company Name Location Size (pph) Primary Fuel 

Institutional/ 

District Heating 

No. of 

Boilers Ordered 

1979 

Washington State University 

Baltimore Power and Light Co 

Delaware Power and Light Co 

1980 

None 

Pullman. WA 

Baltimore,MD 

Vienna. MD 

125,000 

84,000 

80,000 

Coal 

011/Gas 

Oil 

I 

DH 

DH 

1981 

Public Service Co. of Indiana 

US Army 

1982 

US A1r Force 

1983 

Griffin AFB 

Maimstron AFB 

1984 

Alabama Power Co. 

Nashville Thermal Transfer Corp 

1985 

Commonwealth Edison 

University of Virginia 

Princeton, IN 185,000 

Savannah, GA 80,000 

Rantoul, IL 90,000 

Rome, NY 90,000 

Great Falls , MT 85,000 

Birmingham, AL 115,000 

Nashville, TN 90,000 

Chicago, IL 110,000 

Charlottesville , VA 90,000 

Oil 

Wood 

Coal 

Coal 

Coal 

Natural Gas 

Coal 

DH 

I 

Coal DH 

Municipal Refuse DH 

DH 

I 

4 

3 

References 6-12 
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w 

TABLE 2. IDH BOILER SALES >100,000 MMBTU/HR (1979-1985) 

Total Units Soldh Institutional District Heating 

Year Power3 ABMAD Boilers0 Boilersc 

26 1 2 

89 0 0 

94 1 1 

54 4 0 

70 7 0 

75 0 2 

61 1 1 

TOTAL 205 469 14 6 

3 Total number of domestic boilers reported by Power magazine at 

. >80,000 pph steam. 

Total number of domestic boilers reported by ABMA at >80,000 pph 

steam. 

See Table 1. 

1979 

1980 

1981 

1982 

1983 

1984 

1985 

33 

29 

52 

31 

27 

19 

14