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                       Exergy Balance
                       Exergy provides an alternative to entropy for applying the second law. When exergy concepts are combined
                       with principles of engineering economy, the result is known as thermoeconomics. Thermoeconomics allows
                       the real cost sources to be identified: capital investment costs, operating and maintenance costs, and the
                       costs associated with the destruction and loss of exergy. Optimization of systems can be achieved by a
                       careful consideration of such cost sources. From this perspective thermoeconomics is exergy-aided cost
                       minimization. Discussions of exergy analysis and thermoeconomics are provided by Moran (1989), Bejan
                       et al. (1996), Moran and Tsatsaronis (2000), and Moran and Shapiro (2000). In this section salient aspects
                       are presented.
                       Defining Exergy
                       An opportunity for doing work exists whenever two systems at different states are placed in communication
                       because, in principle, work can be developed as the two are allowed to come into equilibrium. When one
                       of the two systems is a suitably idealized system called an environment and the other is some system of
                       interest, exergy is the maximum theoretical useful work (shaft work or electrical work) obtainable as the
                       system of interest and environment interact to equilibrium, heat transfer occurring with the environment
                       only. (Alternatively, exergy is the minimum theoretical useful work required to form a quantity of matter
                       from substances present in the environment and bring the matter to a specified state.) Exergy is a measure
                       of the departure of the state of the system from that of the environment, and is therefore an attribute of
                       the system and environment together. Once the environment is specified, however, a value can be assigned
                       to exergy in terms of property values for the system only, so exergy can be regarded as an extensive property
                       of the system. Exergy can be destroyed and, like entropy, generally is not conserved.
                         Models with various levels of specificity are employed for describing the environment used to evaluate
                       exergy. Models of the environment typically refer to some portion of a system’s surroundings, the intensive
                       properties of each phase of which are uniform and do not change significantly as a result of any process
                       under consideration. The environment is regarded as composed of common substances existing in abun-
                       dance within the Earth’s atmosphere, oceans, and crust. The substances are in their stable forms as they
                       exist naturally, and there is no possibility of developing work from interactions—physical or chemical—
                       between parts of the environment. Although the intensive properties of the environment are assumed to
                       be unchanging, the extensive properties can change as a result of interactions with other systems. Kinetic
                       and potential energies are evaluated relative to coordinates in the environment, all parts of which are
                       considered to be at rest with respect to one another. For computational ease, the temperature T 0  and
                       pressure p 0  of the environment are often taken as typical ambient values, such as 1 atm and 25°C (77°F).
                       However, these properties may be specified differently depending on the application.
                         When a system is in equilibrium with the environment, the state of the system is called the dead state.
                       At the dead state, the conditions of mechanical, thermal, and chemical equilibrium between the system
                       and the environment are satisfied: the pressure, temperature, and chemical potentials of the system equal
                       those of the environment, respectively. In addition, the system has no motion or elevation relative to
                       coordinates in the environment. Under these conditions, there is no possibility of a spontaneous change
                       within the system or the environment, nor can there be an interaction between them. The value of exergy
                       is zero. Another type of equilibrium between the system and environment can be identified. This is a
                       restricted form of equilibrium where only the conditions of mechanical and thermal equilibrium must
                       be satisfied. This state of the system is called the restricted dead state. At the restricted dead state, the
                       fixed quantity of matter under consideration is imagined to be sealed in an envelope impervious to mass
                       flow, at zero velocity and elevation relative to coordinates in the environment, and at the temperature
                       T 0  and pressure p 0 .
                       Exergy Transfer and Exergy Destruction
                       Exergy can be transferred by three means: exergy transfer associated with work, exergy transfer associated
                       with heat transfer, and exergy transfer associated with the matter entering and exiting a control volume.
                       All such exergy transfers are evaluated relative to the environment used to define exergy. Exergy also is


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