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This lecture introduces the fundamentals of material balances in chemical engineering, covering process definition, material balance calculations, chemical reaction stoichiometry, and energy balances on reactive processes. The instructor explains the application of Hess's Law to solve energy balances on reactive systems, work with heats of combustion, and calculate heats of reaction using different methods. Examples are provided to illustrate the calculation of heats of reaction and the importance of understanding enthalpy in chemical processes. The lecture concludes with a practical example of mass and energy balances on a system with multiple units, feed streams, and a recycle.