We examine the exergy balance of a multi-component fluid subject to viscous dissipation processes, heat transfer by conduction, heat transfer by radiation, matter diffusion and chemical reactions. The differential equations for exergy balance in the fluid formalize the relationship between the exergy input/output approach to second law analysis and the entropy generation procedure using the Gouy-Stodola theorem. The balance relations for mass, momentum, energy and entropy are used to establish the validity conditions for the exergy balance equations. In particular, we define the role and significance of the assumption of local thermodynamic equilibrium. The general functions and restrictions of nonequilibrium thermodynamics within second law analysis are also discussed.

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