Over recent years a new methodology for the analysis and design of heat exchanger networks, called pinch technology, has led to significant energy savings in the chemical and process industries. The methodology has later been extended to apply to integrated heat and power systems (Townsend and Linnhoff, 1983). This paper shows that pinch technology is firmly based in Second Law Analysis. In contrast to conventional Second Law Analysis, however, it does not require a base case design. Rather, it performs true synthesis. Also, it is capable of a methodical distinction between “inevitable” and “avoidable” exergy losses.

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