During a plant visit, it was noticed that a 12-m-long section of a 12-cm-diameter steam pipe is completely exposed to the ambient air. The temperature measurements indicate that the average temperature of the outer surface of the steam pipe is 75°C when the ambient temperature is 5°C. There are also light winds in the area at 25 km/h. The emissivity of the outer surface of the pipe is 0.8, and the average temperature of the surfaces surrounding the pipe, including the sky, is estimated to be 0°C. Determine the amount of heat lost from the steam during a 10-h-long work day.

Steam is supplied by a gas-fired steam generator that has an efficiency of 80 percent, and the plant pays $1.05/therm of natural gas (1 therm = 105,500 kJ). If the pipe is insulated and 90 percent of the heat loss is saved, determine the amount of money this facility will save a year as a result of insulating the steam pipes. Assume the plant operates every day of the year for 10 h. State your assumptions.