How do you calculate boiler heat recovery value?

Multiply recovered MWh by the heat value and by recovery efficiency, then add the capital charge. Here 22,000 MWh x $45 x 72% gives $712,800 variable value, plus $180,000 capital, for $892,800 total.

What is the per-MWh cost of recovered heat here?

Total loaded value of $892,800 divided by 22,000 recovered MWh is $40.58 per MWh, which is the blended figure once the fixed economizer charge is spread over output.

Why include recovery efficiency in the calculation?

Not all theoretical heat is captured; at 72% efficiency only $712,800 of the gross steam value is realized. Raising efficiency by ten points here would add roughly $99,000 of variable value.

What is a good economizer recovery efficiency?

Flue-gas economizers on waste-to-energy boilers typically recover 60-80% of available low-grade heat before acid dewpoint corrosion limits how far you can cool the gas; 72% is solidly mid-range.

How does the capital charge change the economics?

The $180,000 fixed charge adds about $8.18 per MWh on top of the roughly $32.40 variable rate. Doubling recovered MWh would dilute that fixed adder and lower the per-MWh cost.

Steam value vs recovery efficiency — which matters more?

At these inputs a 10% swing in steam price and a 10-point swing in efficiency move total value similarly. The steam price is usually set by the market, so efficiency is the lever you control.

Waste-to-Energy Equipment calculator

Boiler Heat Recovery Calculator

Boiler heat recovery quantifies the economic value a waste-to-energy plant captures by pulling residual heat from flue gas through an economizer or superheater, then charges that value against the capital installed to do it. Plant economists and thermal engineers use it to justify economizer retrofits and to set an internal price for recovered steam. Because a heat-recovery project has both a variable payoff (more recovered MWh at the steam price) and a fixed cost (the economizer capital charge), a simple efficiency number hides the real per-MWh economics. This calculator combines both so you can see the loaded cost of each recovered megawatt-hour.

What this calculator does

Estimates the annual value of waste-to-energy boiler heat recovery from recovered megawatt-hours, per-MWh heat value, recovery efficiency, and a fixed capital charge.
Use it when justifying an economizer or heat-recovery boiler upgrade to weigh recovered energy value against the annualized capital it carries.
It computes the total value of recovered steam at your heat price and recovery efficiency plus the fixed economizer capital charge, then divides by recovered MWh for a per-unit figure.

Formula used

Total = recovered MWh x heat value x (recovery efficiency ÷ 100) + capital charge
Per MWh = total value ÷ recovered steam output

Inputs explained

Recovered steam output:
Steam heat value:
Economizer recovery efficiency:
Economizer capital charge:

How to use the result

Use it when appraising an economizer or flue-gas heat-recovery retrofit, or when setting an internal transfer price for the steam the boiler exports.
It treats the capital charge as a flat annual adder rather than discounting a full cash-flow stream, so it approximates rather than replaces a full NPV on a long-lived asset.

Current U.S. benchmarks

Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.
Steel mill PPI stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. New factory orders are up 2.3% year over year (Census).

Common questions

How do you calculate boiler heat recovery value? Multiply recovered MWh by the heat value and by recovery efficiency, then add the capital charge. Here 22,000 MWh x $45 x 72% gives $712,800 variable value, plus $180,000 capital, for $892,800 total.
What is the per-MWh cost of recovered heat here? Total loaded value of $892,800 divided by 22,000 recovered MWh is $40.58 per MWh, which is the blended figure once the fixed economizer charge is spread over output.
Why include recovery efficiency in the calculation? Not all theoretical heat is captured; at 72% efficiency only $712,800 of the gross steam value is realized. Raising efficiency by ten points here would add roughly $99,000 of variable value.
What is a good economizer recovery efficiency? Flue-gas economizers on waste-to-energy boilers typically recover 60-80% of available low-grade heat before acid dewpoint corrosion limits how far you can cool the gas; 72% is solidly mid-range.
How does the capital charge change the economics? The $180,000 fixed charge adds about $8.18 per MWh on top of the roughly $32.40 variable rate. Doubling recovered MWh would dilute that fixed adder and lower the per-MWh cost.

Last reviewed 2026-05-12.