Saldanha Works
Achieving Energy Savings through a holistic
focused management approach
A Case Study
ICUE Presentation
Reinet van Zyl
Aug 2012
This document is solely for the internal use of ArcelorMittal.
Framework
•
AMSA Background information
•
Summary Background on Saldanha Plant and Process
•
Electricity Price and Cost impact
•
Saldanha Approach for Sustainable Energy savings
•
Implementation Time line
•
Performance Review
•
Project Detail as examples
•
2012 Focus and Target
•
Conclusions
ArcelorMittal South Africa
Thabazimbi
mines
Overview of Operations
• Flat Steel Products
• Vanderbijlpark Works – 3.2 Mtpa*
Vanderbijlpark
• Saldanha Works – 1.2 Mtpa*
• Long Steel Products
Sishen
mine
• Newcastle Works – 1.5 Mtpa*
• Vereeniging Works – 0.4 Mtpa*
• Iron ore supply
• 6.25 Mtpa from Sishen
• 2.5 Mtpa from Thabazimbi
• Coke & Chemicals
• Coke - 597 000 tpa*
• Tar - 133 000 tpa*
South
Africa
Johannesbur
g
Vereeniging
Newcastle
Durban
Saldanha
Cape Town
Steel plants in close proximity of key markets
* Based on 2006 actual final product sales
2
Statistical information
•
Electricity consumption: 160 MW
•
Daily water consumption: 8 000 kilo liters (world
best for an integrated steel plant)
•
Manpower: 548 permanent employees
•
Sales output: 1,2 million ton HRC/annum
Steel shop
Mills
RHF
COREX
DR-Plant
Budget 2012 Allocation
• Energy related components is 46% of total cost structure.
• However, in the steel industry coal and coke it is strictly speaking a raw material.
• Coal and Coke is required for the Boudouard chemical reaction. (On this basis the AMSA
CO2 tax calculation was reduced to the current R125 mil).
Pellets, 14%
Energy, 45.5%
Ore, 11%
Overheads other, 5%
Consumables , 5%
Other, 45.5%
Coal :
20%
Coke :
7%
Electricity: 14.7 %
LPG:
3.6%
Other :
0.2%
PM Maintenance, 4%
Fluxes, 3%
Alloys, 3%
Refractories, 2%
Labour, 3%
4
Achieving
Energy Savings
This document is solely for the internal use of ArcelorMittal.
Energy Review 2011 - Saldanha
WHAT WENT WELL
1.
2.
3.
4.
5.
6.
7.
8.
9.
Good Progress on Strategy Implementation
7.7 MW av. Electricity demand saved
(from expected 145.3 MW)
• 5.3% saving on baseline
• Electricity Saving value : R28.3m
• Actual Average Demand : 137.6 MW
• (2012 demand saving YTD 4 MW)
LPG Saved : 5798 t (compared to 2010)
• LPG saving 26% with value R52m
• (2012 YTD saving R35m)
$12.8/t Savings for Dec ’11
($21/t Saving for Jun’12)
Three Project Engineers appointed
Energy Matrix Structure in place
Thirteen projects completed (mostly quick wins
and efficiency related with some awareness
focused projects).
Good progress on visibility and reporting of
energy related information
EnMS implementation – good progress
WHAT WENT WRONG
1.
2.
EnMS require more system knowledge for
proper integration. Some more work
required to integrate into current ISO system.
Capital funding was cut
6
Saldanha Approach
Energy Management Sustainability
Performance
System
[EnMS]
Policy &
Strategy
Resources
WCM (World Class Manufacturing)
Reliability centred focus
Management Infrastructure
7
Roll Out
H1 2010
H2 2010
H1 2011
H2 2011 H1 2012 H2 2012 2013-2016
Step 1 :
WCM (World class Manufacturing focusing on Autonomous Maintenance (TPM)
WCM: Cost Deployment
WCM: Cost Deployment
WCM : Autonomous Maintenance
WCM : Professional Maintenance
WCM : Focused Improvement
WCM : People Development and other 5 pillars
Step 2 : Energy Management
Appoint
Energy Manager
Appoint 3
Team members
Energy
Strategy
Energy
Audit
Energy Management System
ISO 50001
Energy Projects : prioritised implementation and tracking
Performance Measure and Control : Improved Metering and Reporting
Awareness and training
Step 3 : Management Infrastructure8
Actions contributing to improved performance
Energy Strategy
• An Energy Manager was appointed 1 May 2010.
• An energy audit was initiated to identify potential opportunities and expand the list of opportunities
already identified.
• The team was later increased by a further 3 people focusing on project implementation to fast track
potential savings.
• 25% of capital allocated to Energy Projects.
WCM (World Class Manufacturing)
• The plant volunteered to be a pilot for the roll out of WCM within the AMSA group.
• The program is very much focused on equipment reliability and a “clean to inspect” approach
• Bronze status reached after 18 months (usual plan 3 years to reach)
IEE Program and Energy Management System (based on ISO 50001)
• Pilot plant for the expert training in Energy Management, Electrical Motors and Pumps.
• Ensure sustainability of any energy savings made.
• Training of personnel in other IEE programs (20 people)
Management Infrastructure (MI) – doing things more efficiently
• Implementation of a MI program in Feb 2012.
• Optimally utilizing the resources currently available within the plant.
• Improve the effectiveness of the organization and address deficiencies in current practices with
standards and visual management.
9
Energy Projects Completed 2011
kWh
Saving
R 1000’s
saving pa
Nr
Opportunity
Detail
Cost
(Rm)
1
De-dusting fan
2.2 MW
Switch off during standing time >
2 hr.
623,624
263
0
2
System 1
Maintain water temp @ summer
Temps (28  33 degC)
1,419,500
686
0
3
Compressed Air
Repair Leaks & prevent misuse
2,350,400
1,207
0
4
Ladle Heating
Prevent unnecessary utilisation
and LPG use
5
Power
Optimiser
Installed in main Building :
10% V drop, 7% kWh saving
6
Low Production
Periods
Focus and awareness – switch off
what is not required
(Jun/Aug/Sep)
7
Load Shedding
Utilising Chemical energy during
Winter Peak tariff (2% moved to
outside peak)
8
LPG
Reduce LPG cons. by 30% by
changing operating philosophy
250
55,091
31,687,198
120
0.5
13,308
0
5,000
(R20,000
planned 2012)
0
50,000
0
Energy Projects Completed 2011 (cont.)
Nr
Opportunity
Detail
kWh
Saving
R 1000’s
saving pa
Cost
(Rm)
9
Conarc
Foamy slag, Transformer
operation & DRI Quality
42,180,000
17,715
0
10
Mill Ancillary
Switch off
Switch off possible systems
during standing
464
0
11
VSD System 11
Installed Variable Speed drive
3,500
3.16
Nr
Awareness Projects
12
Solar Street Lights
13
Solar Geysers
3b
Compressed Air
876,000
6,464,880
Detail
Fixing leaks and Awareness Training
EnMS helps you reach your targets and sustain performance!
Performance YTD
12
Performance YTD
Electricity Savings Tracking
90,000
9.0%
80,000
8.0%
70,000
7.0%
6.8%
6.0% 5.9%
60,000
4.8%
50,000
4.2%
40,000
30,000
4.5% 4.6%
5.7% 5.8%
4.6%
4.6%
4.5%
5.8%
5.1%
4.9%
5.3%
5.0%
4.0%
3.0%
3.0%
20,000
6.0%
2.0%
1.9%
Actual MWh Saving
Planned MWh saving
Jun'12
May'12
Apr'12
Mar'12
Feb'12
Jan'12
Dec'11
Nov'11
Oct'11
Sep'11
Aug'11
Jul'11
Jun'11
0.0%
May'11
0
April'11
1.0%
Mar'11
10,000
Feb'11
% Improvement from Baseline
10.0%
Jan'11
Electrcical Consumption [MWh pa]
100,000
% Improvement (Mov Av) from baseline
13
Project Detail : LPG Reduction
Project Statistics
LPG Reduced Consumption
Trigger : Cost and shortage of LPG
Approach : Review operational
assumptions and change operational
principles and philosophy.
Implementation : Q4 of 2011
Value of Saving :
26% or R 52 million for 2011
A further 30% saving for 2012
Actions and detail
Preparation :
• Restore Corex basic conditions with Tap hole
repair and WCM program. This ensures stable
operations and high availability of DR gas.
Change in practice :
• Enrichment of DR gas
• No significant detrimental impact on throughput
could be observed in the Midrex.
• The Midrex was one of the largest LPG
consumers using LPG for cooling and increasing
Carbon content
• The Midrex decreased the LPG consumption
considerably and countered potential negative
impact on quality without significant loss in
production volumes or tempo..
Results :
• Midrex : LPG consumption was reduced at the
from 18kg/t DRI to less than 14 kg/t DRI.
• RHF consumption was reduced from 9kg/t to less
than 2 kg/t hot rolled coil.
14
Energy Contribution by Source
30
27.1
28.2
3.1
25
3.6
25.1
2.6
25.4
24.2
3.1
3.1
24.1
3
23.3
2.8
2.6
20
15
2012 Targets :
Electricity
1199 kWh/t
or
4.2 GJ/t
LPG :
0.66 GJ/t
Coal & Coke : 19.4 GJ/t
22.1
21.0
20.4
3.1
17.0
3.1
Anthracites GJ/t
LS
Coke GJ/t LS
19.3
17.2
17.5
16.4
16.4
16
Biogas GJ/t LS
15
10
13.5
13
Coal GJ/t LS
LPG GJ/t LS
5
1.33
5.13
1.30
4.46
0.91
0.66
0.64
0.66
0.56
0.06
0.06
0.06
4.35
4.21
4.10
4.2
4.0
3.9
3.8
3.7
0
17
Energy Focus Areas 2012
Focus 2012
1.
Projects – high value
Risks
1.
Lack of Capital
Targets : 1.1MW saving on electrical
demand baseline (YTD on 4 MW in
2012)
2.
Technology injection required for significant
further progress
3.
Carbon Tax
•
R28m saving through energy projects
4.
Electricity price increase
•
(YTD additional or R34m)
5.
Electricity winter pricing – not viable to produce
during peak hours. Impacts on viability.
•
2.
EnMS (ISO50001) full implementation and
integration on SEU’s with external audit.
3.
Improved reporting and visibility to operator
level for SEU’s to assist with proactive
energy management.
4.
LPG supply contract – put system in place
with minimal day-to-day interface required.
5.
Customer Service to Plants
6.
Awareness and Training
18
Conclusion
•
Stability and reliability is a prerequisite for optimisation efforts.
•
Management Commitment and Resource allocation essential.
•
Energy Management System ensure sustainable energy improvements.
•
Energy Management System allows a structured approach looking at all aspects (not just technical)
•
Focus on Energy and Energy opportunities and savings will realise.
•
Measuring and reporting important for both identifying opportunities and changing behaviour.
•
The more you investigate potential opportunities the more opportunities are found.
•
Awareness and education is a critical part for sustained savings.
19
Questions?
Thank You
20