Resources/Boiler Efficiency: How It Is Calculated, What Lowers It, and How to Raise It

Boiler Efficiency: How It Is Calculated, What Lowers It, and How to Raise It

Boiler efficiency is the share of the fuel’s heat that ends up in the steam. The number itself is easy to state and easy to misread: it depends on how it was measured, at what load, and against which calorific value. This is how it works, with every figure sourced.

16 min read

ByShikhar Singh·Steam Consultant & IT Consultant·Published
Two donut charts: a coal-fired boiler turns 77.8% of its fuel into steam and a furnace-oil boiler 84.3%, with dry flue gas the largest loss in both
Diagram: GyanTosh Fabricators Pvt. Ltd. — reusable with credit under CC BY 4.0

What boiler efficiency measures

Boiler efficiency is the heat that ends up in the steam, divided by the heat in the fuel that was burned, as a percentage. The Bureau of Energy Efficiency (BEE) defines it exactly that way, and adds a second, simpler measure plant people use every day: the evaporation ratio, kilograms of steam per kilogram of fuel.

Everything that is not useful heat is a loss. Most of it leaves up the chimney, as hot dry gas and as water vapor. Some is lost as unburnt fuel, some as heat radiating from the boiler shell, and some as hot water drained off in blowdown. Efficiency is therefore never a property of the boiler alone. The same shell gives a different figure on a different fuel, at a different load, or with a burner that has drifted out of tune.

In India, efficiency is normally stated on the gross calorific value (GCV) of the fuel. The British test standard BS 845 does the same, and so do BEE’s worked examples. Some manufacturers quote on net calorific value (NCV) instead, which makes the same boiler look five to nine points better. That difference is explained further down, because it is the single most common way two quotations fail to compare.

A packaged fire-tube steam boiler with its burner at the front and control panel on the side
A packaged steam boiler. Its efficiency is decided as much by the burner setting and the water treatment as by the shell. Packaged steam boilers

How to calculate boiler efficiency: the direct method

The direct method, also called the input-output method, is the simplest boiler efficiency calculation: it measures what went in and what came out. The boiler efficiency formula is: efficiency = steam flow × (steam enthalpy − feedwater enthalpy) × 100 ÷ (fuel flow × GCV). Enthalpies are in kcal/kg, flows in kg/h, and GCV in kcal/kg of fuel.

BEE’s worked example: a coal-fired boiler makes 8 tonnes of steam an hour at 10 kg/cm²(g), from feedwater at 85 °C, burning 1.6 tonnes of coal with a GCV of 4,000 kcal/kg. Steam enthalpy is 665 kcal/kg and feedwater 85 kcal/kg, so efficiency = 8,000 × (665 − 85) × 100 ÷ (1,600 × 4,000) = 72.5%. The evaporation ratio is 8 ÷ 1.6 = 5. As a cross-check, the IAPWS-IF97 formulation behind our steam table gives 664.4 kcal/kg for that steam, so BEE’s rounded figure holds.

The strength of the direct method is that it needs only four measurements, and it reflects the plant as it actually runs. Its weakness is that it tells you the efficiency is low without saying why. It is also sensitive to measurement error: BEE points out that on a 90% boiler, a 1% error in the direct method moves the answer by 0.9 points, while the same error in the indirect method moves it by only 0.1.

The indirect method, and where the heat goes

The indirect method, or heat-loss method, measures each loss separately and subtracts their total from 100. It needs a fuel analysis (carbon, hydrogen, moisture, ash), a flue gas analysis (oxygen or CO₂, and CO), flue gas and ambient temperatures, and the unburnt carbon in the ash. In return, it tells you exactly where the heat is going, which is the only information you can act on.

BEE lists the losses as: dry flue gas; water vapor formed from the fuel’s hydrogen; moisture in the fuel; moisture in the combustion air; carbon burnt only to carbon monoxide; radiation and convection from the boiler surface; and unburnt carbon in fly ash and bottom ash.

The chart at the top of this page is BEE’s two worked heat balances. The coal-fired boiler reaches 77.8%. Its largest loss is dry flue gas at 7.9%, followed by 5.9% spent evaporating the 31.6% moisture in the coal and 2.6% lost as carbon monoxide. The furnace-oil boiler reaches 84.3%, but loses 7.1% to the water vapor formed from the oil’s 12% hydrogen, nearly as much as its dry flue gas loss. That hydrogen loss matters again later, when we get to gross and net calorific value.

We recomputed both balances from BEE’s published inputs rather than copying the totals. The losses add to 22.23% and 15.73%, reproducing BEE’s 77.77% and 84.27% exactly.

How boiler efficiency has evolved

A history of the steam boiler written at Loughborough University in 1981 puts early boilers of around 1800 at about 30% efficient. By about 1900, Lancashire boilers fitted with superheaters were claiming 73.4%. Pulverized-fuel firing, tested at Barton power station in the 1920s, reached 84.2% gross. Drakelow A in the 1950s achieved 86%, a large reheat unit in the 1960s 90.0%, and a test at Drax had recorded 94.8% by the time the thesis was written.

Those are power-station boilers, and they are not what a process plant buys. A utility boiler has room for economizers, air heaters and every other refinement, because each point of efficiency is worth a great deal at that scale. An industrial boiler of a few tonnes an hour is a different machine, and BEE’s own worked examples put coal and furnace oil at 77.8% and 84.3%. Compare efficiency within a class of boiler, never across one.

What moved the numbers over two centuries was not one invention but the steady removal of losses: internal furnaces, then superheaters, then economizers, then pulverized fuel and air heaters, then closer combustion control. The losses have not changed in kind since. The same list applies to a boiler installed today.

Line chart of power-station boiler efficiency rising from about 30% around 1800 to 94.8% at Drax by 1981, with a note that industrial boilers in BEE examples reach 77.8% on coal and 84.3% on oil
Milestones from Warburton (1981), power-station boilers, gross basis. Chart: GyanTosh Fabricators Pvt. Ltd., reusable with credit under CC BY 4.0

Factors affecting boiler efficiency

BEE lists the factors that move a boiler’s efficiency in service: cleanliness of the heat transfer surfaces, soot blowing, water treatment and blowdown control, draft control, excess air, the percentage loading of the boiler, steam pressure and temperature, insulation, and fuel quality. They matter in roughly this order of size.

  • Stack temperature. Heat that leaves in the flue gas is the largest single loss. UNEP and the US Department of Energy (DOE) agree that each 22 °C (40 °F) of flue gas temperature is worth about one point of efficiency.
  • Excess air. Some excess air is needed for complete combustion, but every kilogram of air beyond that is heated and thrown up the chimney. In DOE’s natural gas table, cutting flue gas oxygen from 7% to 2%, with the flue gas 222 °C hotter than the combustion air, gains 2.6 points.
  • Incomplete combustion. Too little air leaves carbon monoxide and unburnt carbon. In BEE’s coal example, CO alone cost 2.6% and unburnt carbon in the bottom ash another 1.8%.
  • Fuel moisture and hydrogen. Water in the fuel, and water formed from its hydrogen, leave as vapor carrying their latent heat. Wet biomass and high-moisture coal pay this loss every hour; it cannot be tuned away, only reduced by drying or storing fuel under cover.
  • Scale and soot. Deposits insulate the heat transfer surface, so more heat leaves in the flue gas. UNEP puts 3 mm of soot at 2.5% more fuel.
  • Load. A boiler loses a fixed amount of heat from its shell whatever it produces, so the loss grows as a share of output as the load falls.
  • Blowdown. Water drained to control dissolved solids leaves at boiler temperature. UNEP gives 10% blowdown at 15 kg/cm² as a 3% efficiency loss; recomputing that with IAPWS-IF97 steam properties gives 2.95%.
Line chart of combustion efficiency falling as flue gas temperature rises, one line per flue gas oxygen level from 2% to 10%, for natural gas
Combustion efficiency for natural gas against stack temperature and oxygen, from US DOE Steam Tip Sheet 4. Chart: GyanTosh Fabricators Pvt. Ltd., reusable with credit under CC BY 4.0
Bar chart of extra fuel caused by waterside scale: normal scale costs 1 to 3.9%, high-iron scale 1.6 to 6.2%, iron and silica scale 3.5 to 7% from 0.4 to 1.6 mm
Fuel loss by scale thickness and type, from US DOE Steam Tip Sheet 7 and NIST Handbook 115. Chart: GyanTosh Fabricators Pvt. Ltd., reusable with credit under CC BY 4.0
Curve of shell heat loss rising from 1.5% of fuel at full load to 3% at half load and 6% at quarter load, with UNEP’s optimum loading of 65 to 85% shaded
Shell loss against load, computed from UNEP’s stated 1.5% at full rating. Only this one loss is shown; excess air usually rises at low load too. Chart: GyanTosh Fabricators Pvt. Ltd., reusable with credit under CC BY 4.0

How to increase boiler efficiency

The measures below are listed roughly in order of what they are usually worth, with the rule of thumb each source gives. Treat the rules as approximations: they are averages across fuels and boilers, and the chart shows where the sources disagree.

  • Tune combustion to the lowest excess air that still burns the fuel completely, and keep it there. Check with a flue gas analyser that reads CO as well as oxygen. On boilers with variable load or fuel, an oxygen trim system does this continuously.
  • Fit an economizer to heat the feedwater with flue gas. UNEP’s rule is one percent of fuel for every 6 °C of feedwater temperature, and DOE puts typical economizer savings at 5 to 10% of fuel.
  • Preheat the combustion air where an economizer is not enough. UNEP gives one percent of fuel for every 20 °C of air temperature.
  • Return condensate. It is already hot and already treated, so it raises feedwater temperature and cuts blowdown at the same time.
  • Control blowdown on conductivity rather than by timer, and recover heat from what you do blow down. UNEP notes blowdown heat recovery can return up to 80% of the energy in it.
  • Keep surfaces clean. Water treatment prevents scale; soot blowing or cleaning removes soot. UNEP’s signal: when the stack runs about 20 °C hotter than after the last clean, it is time to clean again.
  • Run fewer boilers at higher load. UNEP puts the optimum at 65 to 85% of full load, and says operation below 25% should be avoided.
  • Insulate the shell, valves and fittings, and repair lagging that has been removed for maintenance and never replaced.
  • Lower the steam pressure where the process allows. UNEP estimates 1 to 2% fuel saving, but warns against reducing by more than 20% at once.
Four rules of thumb for one point of boiler efficiency: 22 °C cooler flue gas, 6 °C hotter feedwater, 20 °C hotter combustion air, and 5 to 15 points less excess air
Rules of thumb as UNEP and DOE state them. Chart: GyanTosh Fabricators Pvt. Ltd., reusable with credit under CC BY 4.0
A finned-tube boiler economizer module with inlet and outlet headers, valves and access ladder
An economizer recovers flue gas heat into the feedwater, the most common single efficiency upgrade. Boiler economizers
An industrial dual-fuel burner mounted on the front of a boiler, with its fuel train and control panel
The burner sets the air-to-fuel ratio, which decides the excess-air loss. Industrial dual fuel burners
Clad thermal insulation on a vessel, pipe bends, valves and ducting
Insulation on the shell, valves and fittings cuts the radiation loss that grows at low load. Insulation work

What the experts aren’t telling you

None of this is secret. It is simply rarely said out loud in a sales conversation, and each point changes how an efficiency figure should be read.

The same boiler has two efficiencies. Gross calorific value counts the heat that could be recovered by condensing the water vapor in the flue gas; net calorific value leaves it out. A boiler never condenses that vapor, so on a gross basis the loss shows up, and on a net basis it quietly disappears. Recomputed from BEE’s fuel analyses, the coal boiler is 77.8% gross and 84.8% net; the furnace-oil boiler 84.3% gross and 90.0% net. For natural gas, an 85% gross reading becomes 94.3% net. Nothing about the boiler changed. A quotation that does not say which basis it uses has not told you its efficiency.

The quoted figure is usually the best one the boiler will ever achieve. An indirect-method figure is typically measured with the boiler freshly tuned, clean, at full load, on known fuel. Forbes Marshall lists why the fuel bill then disagrees with it: the boiler rarely runs at full load, it cycles on and off, each start purges hot gas up the stack, blowdown is not counted, ambient temperature moves, and solid fuel varies in moisture and calorific value from lorry to lorry. The direct method, run over a week of real operation, is the number that matches your fuel bill.

The rules of thumb disagree with each other. UNEP’s guide says in one section that each 1% reduction in excess air gives about 0.6% more efficiency, and in another that it takes a 5% reduction to gain 1%. DOE says 15%. All three are approximations of the same curve on different fuels and at different starting points. For your own boiler, measure oxygen and stack temperature and work it out, rather than trusting any single rule.

The popular scale figure is the worst case. “1 mm of scale means 5 to 8% more fuel” appears everywhere. The DOE table behind it gives about 2% for 0.8 mm of normal scale, and 7% only for iron-and-silica scale from high-pressure service. Scale is still worth preventing, not least because it overheats tubes, but the saving from descaling a low-pressure boiler is usually smaller than the brochure suggests.

Peak efficiency is not at full load. UNEP places the best efficiency at about two-thirds of full load, falling significantly below a quarter. An oversized boiler, bought with a generous margin, can spend its whole life in the zone where its efficiency is worst.

Paired bars showing the same boiler efficiency on gross and net calorific value: coal 77.8% and 84.8%, furnace oil 84.3% and 90.0%, natural gas 85.0% and 94.3%
The same boilers on gross and net calorific value. Net values computed by GyanTosh from each fuel’s hydrogen and moisture. Chart: GyanTosh Fabricators Pvt. Ltd., reusable with credit under CC BY 4.0

Things to know before you compare efficiency claims

An efficiency figure is only comparable when these questions have the same answers. Ask them of every quotation.

  • Which basis: gross or net calorific value? On gas, the difference is about nine points.
  • Which method: direct or indirect? And under which standard, BS 845 or ASME PTC 4?
  • At what load? Full load, or the load your process actually runs at?
  • On which fuel, with what analysis? Moisture and ash in solid fuel move the figure by several points.
  • With what feedwater temperature, excess air and stack temperature assumed?
  • Is the guarantee a test result on your site, or a design figure from the drawing office?
  • Does the figure include blowdown, and radiation loss at your real load?

What not to do

Most efficiency mistakes come from pushing one measure past the point where it causes a different problem.

  • Do not cool the flue gas below its acid dew point. DOE gives minimum stack temperatures of about 121 °C (250 °F) for natural gas, 149 °C (300 °F) for coal and low-sulfur oil, and 177 °C (350 °F) for high-sulfur oil. Below them, acid condenses and corrodes the economizer and the stack.
  • Do not cut excess air by watching oxygen alone. Without a CO reading, an operator chasing low oxygen can starve the flame and lose more to unburnt fuel than was saved in flue gas.
  • Do not blow down on a timer. Blowdown should follow the dissolved solids in the boiler water, measured, not the clock.
  • Do not drop steam pressure sharply to save fuel. UNEP warns it can cause water carryover: at lower pressure the same mass of steam takes up more volume and leaves faster. Reduce in stages, and by no more than 20%.
  • Do not buy a boiler much larger than the load. It will spend its life at low load, where the shell loss is proportionally highest and burners need more excess air.
  • Do not compare a gross figure with a net one, or a tuned full-load indirect figure with a month of fuel bills.
  • Do not treat a rule of thumb as a measurement. Every rule on this page is an average; your boiler’s flue gas analyser is not.

Frequently asked

What is a good boiler efficiency?
It depends on the fuel and the basis. BEE’s worked examples put a coal-fired industrial boiler at 77.8% and a furnace-oil boiler at 84.3%, both on gross calorific value. DOE’s table shows a well-tuned natural gas boiler at about 85% gross with a stack about 110 °C above combustion air temperature. The same figures on net calorific value are roughly 85%, 90% and 94%. Always ask which basis a figure uses before judging it.
What is the formula for boiler efficiency?
Direct method: efficiency = steam flow × (steam enthalpy − feedwater enthalpy) × 100 ÷ (fuel flow × gross calorific value). Indirect method: efficiency = 100 − the sum of the individual losses (dry flue gas, hydrogen and moisture in the fuel, moisture in the air, incomplete combustion, surface loss and unburnt carbon).
What is the difference between the direct and indirect method?
The direct method measures output against input and reflects how the boiler actually runs, but does not explain why efficiency is low. The indirect method measures each loss and subtracts them from 100, which shows where the heat goes and is less sensitive to measurement error, but it is a snapshot, usually taken at full load after tuning.
Why are gross and net efficiency different?
Gross calorific value includes the latent heat in the water vapor formed from the fuel’s hydrogen and moisture; net calorific value does not. Because the vapor leaves the boiler uncondensed, efficiency on a net basis looks higher. For natural gas the ratio is about 1.11, so 85% gross is about 94% net.
How much does an economizer improve boiler efficiency?
DOE says an economizer can often reduce fuel use by 5 to 10%, and that efficiency rises about 1% for each 40 °F (22 °C) the flue gas is cooled. UNEP gives about 1% of fuel for every 6 °C rise in feedwater temperature. The limit is the acid dew point of the flue gas, which sets how cold the stack can safely run.
Why does boiler efficiency fall at low load?
The boiler shell loses roughly the same heat whatever it produces, so the loss grows as a share of output as load falls. UNEP gives 1.5% at full rating rising to about 6% at a quarter load, and notes that most burners also need more excess air below half load.
Can a boiler be more than 100% efficient?
Only on paper. On a net calorific value basis, a condensing boiler that recovers the latent heat of the flue gas vapor can report more than 100%, because net value leaves that heat out of the input. On a gross basis no boiler can exceed 100%.

Sources

Stated so a reader can check the position rather than take it on trust.

About the author

Shikhar SinghSteam Consultant & IT Consultant

Shikhar Singh is a Steam Consultant and IT Consultant at GyanTosh Fabricators Pvt. Ltd., where he works on steam system sizing, condensate recovery and the engineering content published on this site.

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