SALES & MARKETING INFORMATIONcannonboilerworks.com/wp-content/uploads/Ultramize... · learn of energy solutions via trade organizations or networking groups. • The boiler room manager

CannonBoilerWorksUltramizerSalesTools

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SALES&MARKETINGINFORMATION1. TargetMarkets:

• CBWwillinitiallytargetexistingcustomersinthefollowingindustrysegmentsinorderofpriority:o Food/Beverage/Agricultureo Hospitals/Institutional(i.e.VAhospitals,largecolleges,militaryinstallations)o Pharmaceuticalo Steel/Chemical/Petrochemical

• CBWwillnexttargetnewprospectsinthesameabovesegments.

2. ExampleTargetCompanies:IndustrySegment ExampleTargetCompanies(BoldedcompanieshaveTMCunit)Food/Beverage • ClementPappas

• CityBrewing(CBWbetaunit)• RichardsonBrandCandies(TMCcomingonlinesoon)• OregonFreezeDried(TMCcomingonlinesoon)• KraftFoods• Frito‐Lay• YuenglingBrewery• Dannon

Hospitals/Institutional • OakRidgeNationalLaboratories• ChinaLakeNationalLab(TMCcomingonlinesoon)• RockIslandArsenal(TMCcomingonlinesoon)• VeteransAdministration• CrainNavalBase• Bangor,WashingtonSubBase• IowaWeaponsDepot

Pharmaceutical • BaxterPharmaceuticalSteel/Chemical/Petrochemical

• SpecificationRubber• USSteel• WheelingPittsburgh• AlleghenyLudlum• Koppers• Sonneborn• MerisolCompany• AirProductsandChemicals• LindeCorporation


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3. PotentialLeadSources:TradeShows • AHRExpo‐http://www.ahrexpo.com/

• NorthwestFoodProcessorsAssociationExpo‐http://www.nwfpa.org/

IndustryPublications • ASHRAEJournal‐http://www.ashrae.org/• ProcessHeating‐http://www.process‐heating.com/• HPACEngineering‐http://hpac.com/• FoodEngineering‐http://www.foodengineeringmag.com/

Miscellaneous • Stateboilerdatabases–CBWwillprovide• Naturalgassuppliers/providers• LEEDProgram‐http://www.usgbc.org/• DOESaveEnergyNowLEADERProgram‐

http://www1.eere.energy.gov/industry/;http://www.energy.gov/8328.htm

• DatabaseofStateIncentivesforRenewables&Efficiency‐http://www.dsireusa.org/

• INDEEDProgram• SIC:3443• NAICS:33241

4. ProspectQualificationCriteria:• Naturalgasburningboilersystem• 150–400HPboilers• Over4,000operatinghoursperyear• Operatingsteampressuregreaterthan30psig• Over30%makeupwatertotheboilersystemoranequalcoldwaterstream• FutureUltramizerlineextensions:

o 400‐800HPboilers‐expectedlaunchdate:end2011o 800‐1200HPboilers–expectedlaunchdate:TBD

5. TypicalDecisionMaker:• Multiplefunctionswilltypicallybeinvolvedinthedecisionmakingprocessandmay

include:PlantEngineer;FinancialManager/CFO;CEO6. OthersThatMaybeInvolvedintheDecisionMakingProcess:


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• EnergyManager• EnvironmentalManager• Contracted3rdpartythatperformsenergyaudits• Independentconsultingengineer

7. TypicalDecisionMakingProcess:• CEO/CFOestablishagoalorstrategicinitiativetoreduceemissionsand/orenergycosts.• Internal/contractengineersconductstudytoidentifyopportunitiestoreduce

emissions/lowerenergycosts.Mayinvolveafacilityenergyaudit.Engineersmayalsolearnofenergysolutionsviatradeorganizationsornetworkinggroups.

• Theboilerroommanagerrequestsaquote,perhapswithROIdata• Internalengineeringstaff(orcontractengineers)reviewproposal&writecapital

request• Financialand/orExecutiveapproval/sign‐off• Purchasingdepartmentplacestheorder

8. TypicalNeedsandObjectivesofProspects:Function/Personnel Needs/ObjectivesBoilerroompersonnel • Improvetheefficiencyoftheboilerroom

• Reducefuelconsumption• Extendthelifeofboilerroomequipment

Engineering • Fuelsavings• Reduceplantemissions• Improvetheoverallreliabilityoftheboilersystem• Determineifnewsystemswillphysicallyfitintheboilerroom

CFO/Executives • Fuelsavingstoreduceplantcosts• Utilizeenergytaxcredits• Emissionstrading(Cap&Trade)• Corporatesustainability• Capitalizeonmarketbenefitsrelatedto“greeninitiatives”

Purchasing • Fuelcostreduction• Returnoninvestment• Options/incentivesrelatedtopaymentterms

9. TypicalDeliveryTime:• 12weeksafterreceiptofdrawingapproval

10. KeyFeatures&Benefits:


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Features ParitywithKeyCompetitorsCeramictubes NegativeperceivedattributeMultipleinstallationconfigurations SameStandardizeddesign SameNewtechnology NegativeperceivedattributeCompetitivelypriced Same

Benefits ParitywithKeyCompetitors20%cleanwatercapture,i.e.notreatmentrequired• Customerssavemoneybecausetheydon’thavetobuywater

fromthecity

Better

95%fueltosteamefficiencywhichmeansthelowestfuelcostofboileroperation• Lessgasisrequiredtoproducesteam,thussavingthe

customermoney

Better(atleast5%betterthankeycompetitors)

CBWhasastrongtrackrecordwithover30yearsofsuccessfulinstallationswiththefirsttwoeconomizerstages• Thisprovidescustomerswithpeaceofmindthatthe

Ultramizerwillbedesignedasahighqualityproductfortheirspecificapplication

Better

Emissionsreduction• TheUltramizerwillhelpcustomersreducetheiremissions

andpossiblygeneraterevenueunderCap&Tradelegislation.

Better

“Green”impact• Inadditiontotheenvironmentalimpactofloweremissions,

Ultramizercustomersmayalsobeabletotakeadvantageoffederal,state,orlocaltaxcredits

Better

Government‐backedinitiative Better

Performance‐basedwarranty• IftheUltramizerdoesn’tliveuptoperformancepromised

underthewarranty,CBWwillrepairorreplacetheunit

Same

Highreturnoninvestment Same

Removableceramicbundlesalloweasymaintenance• Nospecialtrainingisrequiredsoanyboileroperatorcan

changeoutaceramicbundle.Easymaintenancealsoreducesdowntimeandtheneedforoutsidecontractorswhichreducesmaintenancecosts.Acodestampisnotrequiredforchangingceramicbundles.

Same

Highquality• ThequalitydesignoftheUltramizerreducesdowntimeand

Same


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maintenancecosts.

11. ElevatorSpeech

Studieshaveshownthatovera20yearperiod,96%ofthecostofoperatingaboilersystemcomesfromfuelcosts.Also,intypicalboilersystems,10%to20%ofenergyinputislostintheformofheatescapingtotheatmosphere.TheinstallationofanUltramizerhelpstosolvethisproblem.AnUltramizerisaneconomizerthatcapturesheatandmoisturefromthestack,thenreturnsittotheboilermakeupwatersystem.TodetermineifanUltramizerisrightforyourfacility,lookatyourannualboilerfuelbillandsubtract15%ofthecost.Ifthisisasignificantnumbertoyou,thenyoushouldconsideraddingaCBWUltramizer.Thepaybackwillhaveadirectimpactonyourbottomline.ThisisoneofCannon’smanyproductsthathelpcompaniesreduceoverallenergyconsumption.

12. ValueProposition:• ValuePropositionforCFOs:

FacilityownerswithnaturalgasburningsteamboilerscansignificantlyincreaseboilersystemefficiencywithCannonBoilerWorks’Ultramizerandlineofheatrecoveryproducts.TheUltramizerisuniqueinthatitalsoprovidescleanwatercapture.Assuch,youcanrealizethelowestpossiblefuelcostsandemissions,gainingasmuchasa15%annualfuelsavings,whilereducingwatercosts.Thisnotonlyresultsinastrongerbottomline,butalsohelpsyourfacilitytakesmartstepstowardsustainability.

• ValuePropositionforEngineers:

TheCannonBoilerWorksUltramizerSystemincorporatesthreestagesofheatrecoverywhichoptimizestheprocessefficiencyofnaturalgasboilers.Byremovingheatandwaterfromthefluegasstream,wereducetheamountoffuelandmakeupwaterneededwhichprovidesasmuchas15%inannualfuelsavings.Atthesametime,youreduceyouremissionsandincreasethelifeoftheboiler.ThebottomlineisthatCannon’sUltramizerSystemwillhelpyouincreasetheservicelifeofyourboilersystemswhilehavingapositiveimpactonplantprofitability.

13. PotentialCompetitorsforaCustomer’sEnergyEfficiencyBudget:


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• Anycompetingenergyefficiencyimprovementcouldbeanindirectcompetitorsforaprospect’sbudgetdollars

KeyHeatRecoveryCompetitorsTraditionalweldedeconomizers

Competitor Strengths Weaknesses• DeeppocketsofFintube

Technologies&U.S.Steel• Designsandmanufactureslarge

varietyofeconomizers,airheaters,&gas‐to‐liquid/gas‐to‐heatrecoveryequip.

• ISO9001:2000• Openednewfabricationfacilityin

2008.Theplantwasconstructedwiththree70ftby400ftmanufacturingbayswithexpandedcranecapacityrangingfrom15to30tons.

• FintubeR&Dfacility• On‐lineRFQcapability

• Nocoldwaterapplications• Circulardesignreducesrepair

ability• Energysavingspotentialless

thanTMC

Kentube

ValueProposition:Highquality;Mosteffective,efficientheatrecoverysystemsavailable.• Claimspotentialof<1year

payback• Promotes“GreengineeringTM”.

Heatrecoverysolutionsthatproduceefficienciesofupto95%ofthefueldollar,whilereducingpollutantsinexhaust.

• Completewasteheatrecoverysystemssaveupto15%ormoreonoverallenergycosts.

• 30yearsofexperience&1,000sofdesignsformanyapplications

• Nomodulardesign• Lessextensivematerials

selectioncomparedtoCBWwhichlimitstheirabilitytocompeteoncertainapplications

• EnergysavingspotentiallessthanTMC

e‐Tech

ValueProposition:Trouble‐free,cost‐savingheatrecoverysolutions;Preciselyengineeredforspecificapplication

CondensingEconomizer

Competitor Strengths Weaknesses


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• 12lines&1,350+industrialheattransferproducts

• Servesbroadspectrumofthecombustionretrofitmarket:diesel&gascogeneration,boilerexhaust,&fumeincineration

• OnlysoldhalfthenumberofeconomizerstoCBW

• Limitedcustomersupport• Energysavingspotentialless

thanTMC

Cain(CleaverBrooks)

ValueProposition:Highquality;Customersatisfaction• On‐linesalesengineer(Bruce)‐

helpscustomersselectaHeatSpongeeconomizerandgeneratepredictedperformance,pricing,andproposalon‐line

• On‐linesoftwaredoesn’tcatchsystemdesignmistakeswhichcanimpactsystemsafety,performanceandservicelife


BoilerroomEquipment,Inc.(HeatSponge)

ValueProposition:• Simple:Economizersdesignedtobeeasytoprocure,install,&operate• Effective:Designedtoprovidehighperformanceheatrecovery• Economical:Economizersarecompetitivelypriced&easytoservice

HeatRecoveryAutomatedSystems

Competitor Strengths Weaknesses• Condexsystemhasabilityto

provideeverythingfromlow‐gradetohigh‐gradeheat

• Paybackin6months• Productsincorporatespecialized

metallurgyandproprietarydesignengineering

• Inabilitytomakerepairsinthefield


Condex

ValueProposition:Loweroperatingcosts;Lessexhaustgas;Lesspollution;Moredollarsavings• ASME‐approvedwasteheat

recoveryunit• Mostapplicationsrealizesavings

of12‐15%

• Inabilitytomakerepairsinthefield


SidelSystemsUSA

ValueProposition:• Systemiseasytoinstall,hasnomovingparts,requiresnomaintenance• Energyefficiencyandtheenvironmentalbenefitshelpnewor

renovatedconstructionachieveahigherlevelofL.E.E.D.certification.• Potentialfor95%efficientnaturalgasboiler

DirectContactCompetitor Strengths Weaknesses

KemcoSystems • Over5,000installationsworldwide • Waterchemistrymustbe


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• Productbreadthbeyondheatrecovery

• Technicalassistanceavailable24/7

testedandtreated• Energysavingspotentialless

thanTMCValueProposition:Paybackinlessthan2years;Lifeexpectancyofover20years;Customdesigns;Exceptionalqualityandreliability• 5Canadianpatentsand4

Americanpatents.SOFAMEissoleproprietaryfortwoofthetechnologies.

• 500installations;over380customizedsystems

• Over10awardsincludingtwoASHRAEawardsfortechnologyinnovation

• Waterchemistrymustbetestedandtreated


SOFAMETechnologies,Inc.

ValueProposition: • SOFAME'stechnologiesdeliverbetween95%and99%efficiency• Minimalmaintenancerequired.

14. UltramizerPositioningGuidelines(NOTE:Atthistime,theUltramizerhasnodirectcompetition,buttherecouldbeperceivedcompetingproducts)• Reduceboilersystemoperatingcost• Highproductquality• Energyefficiency

15. UltramizerCollateralMaterials:• WebsitelandingpageforUltramizer• Ultramizerbrochure(indevelopment)• On‐linesavingscalculator(indevelopment)• PowerPointpresentation(indevelopment)• 2whitepapers(indevelopment)

o CannonBoilerWorkshistoryo Ultramizer

• ExampleROIcalculationfortheUltramizer(indevelopment)• Ultramizercasestudies(availabilityTBD)• Webinarseriesandarchive(indevelopment)

16. ReferralCustomers–indevelopment


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17. CaseStudies–indevelopment

18. PricingGuidelines:

Product Est.Price300HPUltramizerinstackunit $175,000300HPStandaloneorsidestreamUltramizerSystem $250,000

19. PaymentTerms:• 10%uponcustomer‐approveddrawings• 40%uponmajormilestone–(tobedeterminedbyCBWandcustomer)• Remaining50%uponshipment–paymentterms:net30days


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FREQUENTLYASKEDQUESTIONSANDANSWERS1. HowdoestheUltramizercomparetocurrentcondensingsystemsrelatedtocost,payback

&reliability?

• Cost:TheUltramizerwillcost20‐50%morethantraditionalcondensingsystems.However,anadditional3–5%infuelsavingscanbeachievedwhichcanrepresentasubstantialamountofmoneyoverthelifeofthesystem.

o Example:300HPsystemoperatingat95%vs.90%efficiencyo Assumption:$6.50/hourfuelcostsavings(doesnotincludewatersavings

whichwouldprovideadditional$$)o Results: $50,000insavingsover1year

$500,000insavingsover10years• Payback:

o Unitpayback:1–1½yearsdependingonmarketcostoffuelo Installedpayback:2–3years

• Reliability:Reliabilitystatisticsarestillbeingdetermined.However,therehavebeennoprocess‐relatedfailuresoftheceramictubestodate.Thefirst2stagesofheatrecoveraretraditionalCBWeconomizerswith1,000sofsuccessfulinstallationsandbackedbyover30yearsofexperience.Todate,theTMC3rdstagehas1,000sofhoursoftestingwithnoprocess‐relatedfailures.

2. Whatisthelifeexpectancyoftheceramictubes?

CBWiscurrentlyevaluatingafiveyearreplacementplanfortheceramictubebundles.3. HowmuchdoestheUltramizercost?

Product Price300HPUltramizerbaseunit $100,000300HPStandaloneUltramizerSystem $165,000

4. WhatistheeaseofmaintenancerelatedtotheUltramizer?Willithavesimilar

maintenancefeaturestootherCBWproducts?

TheceramictubebundlesintheUltramizerareremovableandeasilyreplaceable.CBWusedthesamethoughtprocessfortheUltramizerdesigntoensureeaseofmaintenance.


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5. HowmuchwaterdoestheUltramizerrecover?

It’sestimatedthatupto20%ofthemoistureinthefluegasstreamwillberecovered.6. What’stheconditionoftherecoveredwater?

ThewaterthattheUltramizerrecoverscanbeimmediatelyusedintheboilersystemwithouttreatment.Itshouldbenotedthattherecoveredwaterfromsomecompetingsystemsrequiretreatmentpriortobeingusedagainintheboilersystem.

7. WhathappenswhenIswitchtoanotherfuel,eitherbecausenaturalgasisn’tavailableor

thepriceistoohigh?

Thefirst2economizerstageswillworkfinewithfuelsotherthannaturalgas.Atthistimethough,theUltramizerhasonlybeentestedwithnaturalgasandassuchcanonlybeusedwithnaturalgas.Abypasssystemhasbeenincorporatedsothatcustomerscaneasilyswitchbetweendifferentfuels.CBWisintheprocessoftestingtheUltramizerwithfuelsotherthannaturalgas.Todate,noequipmentdamagehasbeenseenduringtestingwhenalternatefuelswereused.

8. HowquicklywillIreceiveUltramizerspareparts?

CBWtypicallymaintainsastockoffintubingandceramictubebundles.In‐stockitemscanbeshippedimmediately.Replacementtimewilldependonwhetherornotthesparepartsarein‐stock.Itemsthatmustbeorderedtypicallyhavea3weekleadtime.

9. Whatwilltheshippingcostsbe?

Atthistime,CBWdoesnothaveestimatedshippingcosts.However,Ultramizershipmentsdonotrequireover‐sizedloadsorspecialpermitting.

10. WhatarethespacerequirementsfortheUltramizer?

CBWprovidesmultipleinstallationscenariostofityourboilerroomsetup.WhiletheUltramizerrequires50%morespacethanacondensingeconomizersystem,itshouldtakelessspacethandirectcontactwaterheaters.

11. WhatistheweightoftheUltramizer?

Theweightwillbesimilartocondensingeconomizerunits.


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12. WhatstructuralsupportisrequiredfortheUltramizer?

CBWhasdevelopedmultipleinstallationscenariostosuitemostboilerroomsetups.Astructuralsupport(notprovidedbyCBW)willberequiredaroundtheboilertoholdtheUltramizer.FloorstandsandskidunitsareavailablefromCBW(adetailedsiteplanwillberequired).

13. WhatinstallationsupportwillCBWprovide?

ThemajorityoftheinstallationsupportwillbeprovidedbyCBW’slocalrepresentatives,althoughCBWfactoryassistancewillbeavailableuponrequest.CBWplanstoprovidefactoryservicetechniciansforthefirst10Ultramizerinstallations.

14. WhatistheUltramizerwarranty?

CBWisintheprocessofrewritingitsterms&conditionstoincludetheUltramizer.Aperformancewarrantywillbeincludedandwillbebasedontheboilerroomoperatingconditionsprovidedbythecustomer.


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POTENTIALOBJECTIONSANDAPPROPRIATERESPONSES1. TheUltramizerisbasedonunproventechnology…

TheGasTechnologyInstitute(GTI)andtheDepartmentofEnergyhavetogetherinvested5yearsandmillionsofdollarsonthedevelopmentoftheTMCtechnology.GTIhasatestfacilitywheretestingison‐going.Inaddition,therearefouralphafieldinstallationsoftheTMCtechnology.TheTMCdesignwasstandardizationin2009andcurrentlyanadditionalfourbetasitesareplannedforinstallationin2010and2011.Thiswillbeatotalof8fieldinstallationspriortothecommerciallaunchoftheUltramizer.

GTIandCBWarecurrentlyanalyzingtheresultsfromthesetestsites.Theseresultswillbecompletepriortoallowingcommercialinstallations.AswithallCBWproducts,thecompanywillstandbehindallUltramizercommercialinstallationswithaperformanceandequipmentwarranty.

2. WhataboutthereliabilityoftheUltramizer’sfragile,ceramiccomponents…

CBWisintheprocessofdevelopingasafeshippingmethod.Currently,noin‐servicereliabilityissueshaveoccurred.Theceramictubesareenclosedinastainlesssteelhousing/casingtoprotectthetubesduringoperation.ThefinalUltramizerdesignhasbeenstandardizedandisbeingfieldtestedatmultiplesites.

3. There’sanegativeimageassociatedwiththesuperboiler…

Thesuperboilerwasonlyatestprogram,notacommercialproductliketheUltramizer.Therewasnooptimizationofthesuperboilerdesignoreffortstoreduceitsproductionormarketcosts.Significantchangeshavebeenmadesincethefirst3TMCunitssoit’sverydifficulttomakedirectcomparisons.It’simportanttonotethatCBWandGTIwillbeconductingsignificantlymoreUltramizerfieldtestingthanwasdoneforthesuperboiler.ThefinalUltramizerdesignhasbeenstandardizedandisbeingfieldtestedatmultiplesites.Also,it’simportanttonotethattheTMCtechnologywasonlyasmallpartoftheoverallsuperboilerprogram.TheTMCportionofthesuperboilerwasdeterminedtoprovidesignificantbenefitsandcouldthereforebecomeastandaloneproduct.


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4. There’sanimpressionthattheearlyGTIinstallationsfailed…

AlloftheGTIinstallationswereearlytestunits,notCBWUltramizerSystems.Thesealphateststookplacewhilethedesignspecificationswerestillindevelopment.It’simportanttonotethattoday’sTMCtechnology,andCBW’sUltramizer,isverydifferentfromthealphatestmodels.ThesealphatestsprovidedvaluableinformationtoGTI.TheresultisthatGTImadesignificantdesigncorrectionstoeliminatewaterleaksandoptimizetheequipmentformaximumefficiency,etc.CBWissignificantlybenefittingfromtheseearlyalphatestsandlessonslearned.

5. TheUltramizerhasabigpricetag…

TheaddedbenefitofwaterandfuelsavingsfaroutweighstheinitialcapitalinvestmentintheUltramizer.CBWisintheprocessofdevelopingROIandpaybackdatawhichwillbeavailabletorepspriortomarketlaunch.ThepriceoftheGTIprototypeswasinitiallyhigh.However,CBWhasmodifiedthepricingoftheTMCtechnologytobecompetitive.


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PRODUCTCOMPARISONInstructions:Todetermineappropriateequipment,selectfueltype,theninletwatertemperature.

FuelTypeTraditionalwelded

economizerFWH

economizerCondensingeconomizer

Directcontacteconomizer

LiquidPropane212°–300°F X X X X150°–212°F X X X32°–150°F X X

NaturalGas212°–300°F X X X X150°–212°F X X X32°–150°F X X

#2Oil(dieseljetfuel/militarygradefuel)212°–300°F X X X X150°–212°F X X X32°–150°F X

#6Oil212°–300°F X X X 150°–212°F 32°–150°F

LandfillGas(methane)212°–300°F X X X X150°–212°F X X X32°–150°F X

Coal212°–300°F X 150°–212°F 32°–150°F

Wood212°–300°F X 150°–212°F 32°–150°F


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INFORMATIONREQUIREDFORQUOTATION

ContactInformationRepCompany: RepName:RepPhone: RepFax:RepEmail:EndUserCompany:ContactName:Address:Phone:Fax:Email:

AvailableHeatSinks(WaterStreams) Source#1 Source#2 Source#3Description Flow Temperature ConstantFlow(Yes/No)

Examplesofheatsinksare:DAwater,condensedreturnwater(blendedwithmakeup),makeupwater,processwater,cleanupwater,snowmeltglycol,etc.

AvailableHeatSources(FlueGas)BoilerType Max.SteamCapacity FuelType FuelCost FGRRate

PeakLoad Avg.Load Min.LoadFlueTemperature ExcessAir HoursofOperation

MultipleBoilersintoCommonStackDescribe:

WhatSpaceisAvailable SiteInformationInStack Elevation Sidestream AmbientTemp.Range BetweenCombinedStacks

AmbientHumidityRange

Roof FreezePotential

Foradetailedcomputerevaluationofyourapplication,pleaseemail([email protected])orfax(724‐335‐6511)theaboveinformationtoCBW.


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Documents

SALES & MARKETING INFORMATIONcannonboilerworks.com/wp-content/uploads/Ultramize... · learn of energy solutions via trade organizations or networking groups. • The boiler room manager