1. The hidden cost of zero condensate return
A normal steam system is a closed loop. Steam goes out to the heat exchangers, gives up its latent heat, and comes back as hot condensate at 80-95 °C. The boiler then only has to make up a little bit of fresh water and re-evaporate the rest from a warm starting point. That is what makes a steam system efficient on paper.
Now look at what actually happens in a soybean cookery, a meat processor, a brewery wort-line, a textile dye-house, or a CIP wash bay: the boiler makes steam, and that steam is sparged directly into an open process tank of water to bring it up to 70-90 °C. The condensate doesn't come back. It went into the product, into the drain, or into the wash. It is gone.
That means every kilogram of steam the boiler makes has to be replaced by a kilogram of fresh, cold mains water at 28 °C. Make-up is 100% of the feed. The boiler is doing nothing other than turning cold mains water into hot water, the most expensive way imaginable. You are firing a 1,800 °C combustion process to do a 70 °C duty.
Every 6 °C of feedwater preheat cuts boiler fuel by roughly 1%. Lifting 100% make-up water from 28 °C to 70 °C is a 42-degree rise — about 5–10% of total boiler fuel saved, applied to every drop the boiler ever makes (because there is no condensate return diluting the saving). On a ₱1.5M/month diesel bill that is ₱75,000-150,000/month, every month, for the life of the asset.
And that is just the preheat case. If your process only needs hot water at sub-100 °C — not actual steam — the heat pump can do the entire duty by itself, and you can shut the boiler off altogether. We will come back to that option in section 6.
2. Why the boiler is the wrong tool for sub-100 °C duty
A fire-tube or water-tube steam boiler is engineered for one job: phase-change. It exists to turn liquid water into saturated steam. It is good at that. Above 100 °C, where the latent heat of vaporisation is 2,257 kJ/kg of water, the boiler is genuinely the right tool.
But the heat that lifts water from 28 °C to 100 °C is sensible heat — only about 300 kJ/kg, less than a seventh of the latent heat above it. And the boiler isn't designed for sensible heating at all. The penalty for using it that way is paid every minute of every shift:
| Loss source | % of fuel input |
|---|---|
| Flue gas losses (high stack temp) | 8–15% |
| Radiation / shell losses | 2–5% |
| Steam distribution losses | 3–8% |
| Condensate not returned (drain to sewer) | 15–30% |
| Total losses | 30–55% |
| Useful heat actually delivered | 45–70% |
So when you ask the boiler to do sensible-heating duty — raising cold make-up water by 40-50 °C — you pay for 100% of the fuel and get roughly 50-60% of the energy delivered to the water. The other half heats the atmosphere.
If you want the full breakdown of where the losses live in your specific boiler, plug your numbers into our Sankey tool below — it shows each loss as a peeled flow on the diagram so you can see what's worth fixing first.
3. The right tool: a Karnot iHEAT R290 heat pump preheater
A Karnot iHEAT R290 heat pump moves heat — it doesn't generate it. Philippine ambient is warm year-round (28-34 °C), and the duty here is a modest lift to 70-75 °C, so the heat pump runs at COP 4.5 or better in real-site conditions. For every 1 kW of electricity in, you get 4.5 kW+ of thermal energy into the feedwater. The "extra" 3.5 kW comes from low-grade ambient heat — air, condenser water, or any other free thermal source on site.
The retrofit itself is simple. A Karnot iHEAT R290 heat pump (sized 18.5 to 100 kW per unit, stackable master+slave for bigger duties) is plumbed into your existing feedwater tank and lifts the cold make-up water from ambient (28 °C) up to 70-75 °C before it reaches the boiler. No electric elements, no new buffer tank in most cases — just the heat pump and the pipework.
The boiler keeps doing what it's good at — the final lift from 70 °C to saturated steam at process pressure. But it now starts that lift from 70 °C, not 28 °C, so on a 100% make-up site it burns roughly 5-10% less fuel for the same steam output. Modest in percentage; large in absolute pesos because make-up never stops.
4. Run the numbers on your own site
Two free calculators. No sign-up, no email, no sales call required. Plug in your boiler parameters and see what your retrofit looks like.
Boiler Feedwater Pre-Heat Calculator
Size the iHEAT for your make-up flow. Reuse your existing feed tank or add an iSTOR thermal battery. Outputs annual fuel saved, kWh electricity required, simple payback, and CO₂ reduction. Handles diesel, LPG, natural gas, and HFO boilers.
Open the calculatorBoiler Energy Flow Sankey
Visual breakdown of where every kWh of fuel input actually ends up — flue gas, radiation, distribution, condensate, useful heat. The losses you can see are the losses you can fix. Pairs perfectly with the preheat calculator above.
Open the Sankey tool5. A real Philippine case — soybean processing plant
Here is what came out of the calculator for a real customer we are quoting now. Mid-sized soy processing plant in the Greater Manila area. Diesel boiler making steam that is sparged into the cookery tanks — zero condensate return, 100% make-up. Boiler input 5,500 kWh/day (~500 L diesel/day) at ₱85/L. The site already has a serviceable feedwater tank, so the retrofit is just the heat pump tied into it.
| Parameter | Today (boiler-only) | With Karnot iHEAT preheat |
|---|---|---|
| Diesel consumption | ~500 L/day | ~465 L/day |
| Boiler fuel input | 5,500 kWh/day | ~5,130 kWh/day |
| Heat pump electricity | 0 | ~45 kWh/day |
| Boiler fuel saving | — | ~7% |
| Annual energy cost saving | — | ~₱902,000 / year |
| Estimated all-in CAPEX (50 kW iHEAT + install) | — | ~₱400,000 |
| Simple payback | — | ~5 months |
~₱75,000 saved every month, on a ₱400,000 retrofit. 5-month payback. 15-year asset life.
The 7% above reflects a site that genuinely needs steam (sparging into a cookery to hold 90 °C+). If your process actually only needs hot water at 70-75 °C — CIP wash, dye-house, fermenter jackets, comfort heating, pasteurisers running indirect — the heat pump can do the whole duty and you can take the boiler offline entirely. In that case you swap a 60-65% efficient boiler for a COP 4.5+ heat pump and cut total energy cost by 70-80%. Run the calculator both ways to see which case you are in.
6. Don't want to spend the CAPEX? Take the EaaS option.
For sites that don't want to put the equipment on their balance sheet, Karnot offers an Energy-as-a-Service (EaaS) contract on this exact retrofit. We install and own the heat pump, take full responsibility for maintenance and warranty for 5 years, and you pay a fixed monthly fee out of the verified energy savings.
For the soybean plant above, the EaaS structure looks like this:
- Customer day-1 capital: ₱0
- Monthly EaaS fee to Karnot: ~₱45,000 / month for 60 months
- Customer's monthly fuel bill saving: ~₱75,000 / month
- Net monthly benefit to customer during the contract: ~₱30,000 / month
- End of year 5: equipment transfers to the customer at no additional cost — from year 6 onwards they keep 100% of the fuel saving (~₱902,000/year, on equipment that cost them nothing)
Over a 15-year asset life, the customer banks roughly ₱11M in cumulative net benefit on a deal where they never wrote a CAPEX cheque.
If your facility is a Tier 1 designated establishment under RA 11285 (Annual Energy Consumption above 4 million kWh-equivalent), this retrofit also reduces your annual energy intensity, which directly improves your DOE DEOS portal compliance reporting. And every litre of diesel offset is a kilogram of Scope 1 CO₂ that drops off your SEC PFRS S2 disclosure.
7. What to do next
Size the preheat retrofit
Open the Boiler Pre-Heat calculator, plug in your make-up flow, fuel type and price. Get your annual saving and payback.
Talk to us
If the numbers look interesting, request a site survey. We'll come back with a turnkey CAPEX quote and an EaaS option side by side.
Stop firing diesel to make hot water
Run our two free calculators above to size your retrofit. Or request a site survey and we will model your specific boiler — CAPEX, payback, and EaaS option, no commitment.
Request a Boiler Survey