Glass Melting Technology: A Technical and Economic ... - OSTI

Table II.12. Reduction in Energy Cost (%) Required to Earn 10% to 20% Return on a
$1 million Capital Investment per Glass Furnace.
Flat Container Fiber
Btu/ton (millions) 9.28 6.18 9.08
$/ton 32.48 21.63 31.78
Ton/day 600 300 150
Ton/year (thousands) 210 102 52.5
$/year (millions) 6.8 2.3 1.7
% energy cost @ 10% 2.2 6.5 9.0
% energy cost @ 20% 3.7 11.7 16.0
II.10. Economics of environmental regulations
Governmental requirements for reduced air emissions from conventional furnaces are stringent
and may become more so. The generation of CO2, NOx, and SOx is inevitable when heavy oil is
used as the fuel for glassmaking. Because resource conservation and environmental preservation
are more important issues now than in the last 30–40 years, they must be approached in a more
strategic manner. The cost of compliance with environmental regulations can vary depending on
the method of control selected, the level of reduction to be obtained, and the way in which
measures are integrated into the operation of the furnace. Alternative technologies must be
compared with conventional furnaces on the basis of how their configurations meet emission
control requirements.
All add-on devices to comply with regional, state and/or federal regulations increase capital and
operating costs but do not improve productivity. Factory layouts may have space restrictions
that create problems for adding on these options. Regenerative furnace designs are being
challenged to find alternatives to refractories that contain chrome, due to more restrictive waste
disposal regulations. Devices such as scrubbers and bag houses can add several million dollars to
the capital investment in a glass plant, lowering capital productivity by adding capital costs, as
well as costs for operations and materials handling costs, without increasing glass output.
Given the possibility that environmental regulations may become more stringent in the future,
glass manufacturers must develop cost-effective technology that is compatible with
manufacturing operations. Changes in glass chemistry can solve some environmental issues. Use
of oxy-fuel melting to reduce NOx emissions is another cost-effective approach for complying
with environmental regulations. In some cases, the introduction of environmental credits that
can be sold or traded has been economically beneficial. However, the US glass industry today
has not considered credits to be a significant economic proposition.
II.11. Conclusion
A critical component of the United States economy, the multi-billion dollar glass industry faces a
number of economic challenges. Projections for future profits and growth are mixed and
complex across the industry. Despite these economic challenges, most segments of the industry
have maintained reasonable operating margins and generate positive cash flow.
In the current economic climate, the glass industry must continue its efforts to reduce the costs of
raw materials, energy, labor, capital, environmental compliance, overhead and other operating
expenditures. The glass industry lacks appeal for capital investors. Compared to businesses that
generate several dollars of annual sales per capital investment dollar, the intensity of capital
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