Economic Feasibility Study of an HTS DC Induction Furnace

Conventional induction furnaces have been in operation in nonferrous metal and related industries with poor energy efficiencies of only 50-60%. Moreover, the efficiency of atmosphere furnace, one of the various heating facilities for metal billets, is about 20%. For ensuring high energy efficiency in these heating furnaces fields, as one of the better counterplans, a novel dc induction heating method using HTS magnets has been suggested. To realize the HTS dc induction furnace (HIF) in the industrial field, the most important issue is to guarantee economic favor in comparison with two different types of conventional furnaces. In this paper, we performed an economic feasibility study of an HIF in terms of electricity fee minimization. Net present value, internal rate of return, and pay-back period methods were used to evaluate the investment returns of an HIF. All indicators related to direct benefits were calculated and analyzed for finding economic feasibility. The analysis results will be applied to decision making process for the commercialization of the HIF.