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This lecture introduces the concept of energy balances in chemical engineering, focusing on closed and open systems. It covers the definition of a system, forms of energy, types of work, properties classification, and the procedure for energy balance calculations. The instructor explains the importance of energy balances in designing processes, emphasizing the need to account for energy flow in and out of each unit. Examples illustrate how to apply energy balance equations to closed and open systems, considering factors like heat transfer and work done. The lecture concludes with a discussion on thermodynamics data and the significance of enthalpy and internal energy as state properties.