HSEE HSEE Health, Safety, Environment and Energy Efficiency Energy Efficiency Case Study – PETROBRAS Claudio Rücker Energy Efficiency Sector Workshop US-Brazil Binational Energy Working Group (Energy Efficiency) CEPEL – Rio de Janeiro – RJ – Brazil 10 / 08 / 2011 HSEE Agenda 1. Petrobras Main Figures 2. Petrobras 2020 Strategic Plan 3. Energy Efficiency Context in Petrobras 4. Energy Efficiency Example Cases 5. EZR Cogeneration Case 6. Challenges for Petrobras HSEE Agenda 1. Petrobras Main Figures 2. Petrobras 2020 Strategic Plan 3. Energy Efficiency Context in Petrobras 4. Energy Efficiency Example Cases 5. EZR Cogeneration Case 6. Challenges for Petrobras HSEE Petrobras Main Figures (2009 data) •Investments : R$ 71 billion •Net Profit: R$ 28.98 billion •Global Presence: 28 countries •Reserves: 14.90 billion barrels of oil and gas equiv. •Net Revenue: R$ 182.71 billion •Shareholders: 463,870 •Daily Production: • 2,526,000 barrels per day 7,197 133 78 fixed 55 floating 15 172 25,966 Km 52 owned HSEE Petrobras Main Figures (2009 data) •Production Platforms: 133 (86 fixed; 47 floating) •Vessel Fleet:172 (52 belonging to Petrobras) •Biofuels: 5 plants •Wind Energy: 1 pilot plant •Fertilizers: 2 plants •Refineries: 15 •Yield of the Refineries: 2,034,000 bdd •Pipelines: 25,966 km •Thermoelectric Plants: 18 plants •Service Stations: Nearly 8,000 7,197 133 78 fixed 55 floating 15 172 25,966 Km 52 owned HSEE Agenda 1. Petrobras Main Figures 2. Petrobras 2020 Strategic Plan 3. Energy Efficiency Context in Petrobras 4. Energy Efficiency Example Cases 5. EZR Cogeneration Case 6. Challenges for Petrobras HSEE Petrobras Main Figures Increased to 6.4 MM boe/d in 2020, as informed in the recent Business Plan 20112015 HSEE Petrobras Main Figures HSEE Research and Development HSEE Energy Performance Challenges Strategic Objectives Maximize efficiency and minimize the intensity of GHG emissions, reaching levels of excellence in the Oil & Gas industry, contributing to business sustainability Energy Efficiency • • • Corporate Quinquennial Goals quantified Intensity Indexes and goals established for each B.A. Board of Directors analyses results quarterly Energy Annual Report Emissions HSEE Agenda 1. Petrobras Main Figures 2. Petrobras 2020 Strategic Plan 3. Energy Efficiency Context in Petrobras 4. Energy Efficiency Example Cases 5. EZR Cogeneration Case 6. Challenges for Petrobras HSEE Energy Efficiency and Climate Change Source: WEO World Energy Outlook 2009 - IEA HSEE Energy Efficiency and Climate Change Source: BP Energy Outlook 2030 (January/2011) HSEE Management Process Corporate Policies and Guidelines Corporate Leadership Leaders in the Operations Units Design Guidelines Performance Indicators Measurement Goals - Benchmark Supply Chain Management Energy Critical Analysis Correction of Deviations Modeling Process Optimization - Advanced Control - "RTO" HSEE Management Process Corporate Policies and Guidelines Corporate Leadership Leaders in the Operations Units Design Guidelines PRIORITY PDCA Performance Indicators Measurement Goals - Benchmark Supply Chain Management Energy Critical Analysis Correction of Deviations Modeling Process Optimization - Advanced Control - "RTO" Information Management Systems - PRIORITY HSEE PETROBRAS ORGANIZATION CHART Audit Committee Board of Directors Internal Audit Ombudsman’s Office Senior Management CEO Business Strategy and Performance Business Committee Management Systems Development Legal Department New Businesses Human Resources Finance Gas and Energy Corporate Financial Planning and Risk Management Finance Accounting Tax Investor Relations Corporate Marketing and Trade Logistics and Part. in Natural Gas Operations and Part. in Energy Energy Development Gas Chemicals and Liquefaction CEO’s Office Petrobras Secretary Office Corporate Communication Exploration and Production Downstream International Corporate Production Engineering Services Exploration North-Northeast South-Southwest Pre-salt Corporate Logistics Refining Marketing and Commercialization Petrochemicals Major Projects Program Corporate Technical Support to Businesses Business Development South Cone LA Americas, Africa and Eurasia Services Health, Safety, Environment and Energy Efficiency Materials Research and Development (Cenpes) Engineering Information Technology Shared Services Energy consumption in Petrobras totalizes 259,000 b/d and HSEE represents about 10% of its total production Consumption per activity (thousands b/d, year 2009) Thousands b/d, year 2009 (236 boed) Consumption represents ~10% of production (363 boed) Energy Efficiency can result in substantial outcome increases for the Company Source: 2009 Petrobras Consumption Report HSEE What´s Energy Efficiency? Ratio between a produced good or an accomplished service and the quantity of energy consumed for that •In case of Petrobras: Produce more with less energy intensity HSEE Petrobras Energy Efficiency Goals – Reduce 10% and 5% the energy intensity, between 2009 and 2015, in its Downstream and Thermal Plants, respectively – Reduce 65% the natural gas flaring, between 2009 and 2015, in its Upstream operations – Considering R&D and projects of energy efficiency, Petrobras will invest US$ 1.2 billion until 2015 HSEE Main Projects – Downstream: Motorization of large condensate turbines, energy integration, process units optimization, modernization of thermoelectric systems – Thermal Plants: Convertion symple cycle in combined cycle thermal plants – Upstream: natural gas compression and logistics investments HSEE Agenda 1. Petrobras Main Figures 2. Petrobras 2020 Strategic Plan 3. Energy Efficiency Context in Petrobras 4. Energy Efficiency Example Cases 5. EZR Cogeneration Case 6. Challenges for Petrobras HSEE Example of energy efficiency projects Example of Advanced Control in a Gas Process Unit • Investiment: US$ 270,000 • Results: – Earnings: US$ 14 million (in energy efficiency and production) – Extra production: 16,410,000 m³ LGN/year (increase of 9%) – Energy economy: 2 to 10% HSEE Example of energy efficiency projects Furnaces and Boilers Soot Blowing Modernization Projects • Refinery Case Example: – Investment: US$ 1.74 million – Energy economy: 305 b/d – Carbon emission avoided: 38,000 tons CO2/year HSEE Example of energy efficiency projects Condensate and Steam Modernization Projects • Fertilizer Plant Example Case : – – – – Investiment: US$ 1.5 million Condensate recuperated: 20 t/h Natural gas economy: 4,920 m3/day Carbon emissions avoided: 3,700 ton CO2/year HSEE Example of energy efficiency projects Fluid Catalytic Cracking (FCC) Turboexpanders • • • Recovery energy by substituting pressure reducing valves by a turbine coupled to an electric generator 5 refineries 98 MW of total installed capacity HSEE Example of energy efficiency projects Variable Speed Driver Projects • Refinery Example Case (6 pumps) – Investiment: US$ 1.7 million – Energy Economy: 800 MWh/year – Carbon emissions avoided: 83 ton CO2/year Fonte: WEG HSEE Example of energy efficiency projects Dessalinization Units Projects Offshore Platforms Dessalinization Example Case : • 3 production units • Reducing of potable water transportation by ships • Dessalinization water capacity: 255 m³/day • Investment: US$ 1.7 million • Energy economy: 5.2 b/d • Carbon emissions avoided: 829 ton CO2/year HSEE Example of energy efficiency projects Heat Recovery Projects Process Unit Example Case : • • • • Reduce 70% of furnace thermal demand Investments: US$ 15 million Energy economy: 55,000 m³/day of natural gas Carbon emissions avoided: 40,000 tCO2/year HSEE Example of energy efficiency projects Thermal Solar Energy Projects Onshore Oil Well Case Example: • To take the paraffin off from the well column • Energy economy: 0.35 b/d • Carbon emissions avoided: 35 ton CO2/year HSEE Agenda 1. Petrobras Main Figures 2. Petrobras 2020 Strategic Plan 3. Energy Efficiency Context in Petrobras 4. Energy Efficiency Example Cases 5. EZR Cogeneration Case 6. Challenges for Petrobras HSEE EZR Cogeneration Plant • This project consists of an integration of two different Business Areas of Petrobras (Downstream and Gas & Energy): – The RPBC Refinery old boilers were with low energy efficiency – The Gas & Energy was looking for new thermal plants business opportunties HSEE • • • • EZR Cogeneration Plant – Main Equipments 1 Gas Turbine: 171.7 MW (ISO) 1 HRSG (120 bar; 42 bar; 12 bar) 1 Condensate Steam Turbine: 55 MW 2 Auxiliary Boilers • Startup in 2010 • 2011 in pre-operation EZR Cogeneration Plant – Energy Economy HSEE RPBC Boilers Fuel EZR Cogeneration Plant Steam 12,953 TJ/year Efficiency = 77,5% 196 MW 415 t/h Electricity Fuel Combined Cycle Thermal Plant 19,541 TJ/year 196 MW Electricity Efficiency = 82% Steam 415 t/h Fuel 10,407 TJ/year Efficiency = 60% Without integration Fuel = 23,360 TJ/a Global Efficiency = 69% Energy Economy 3,819 TJ/year 1,771 b/d With integration - cogen Fuel = 19,541 TJ/year Global Efficiency = 82% EZR Cogeneration Plant – Carbon Emissions HSEE RPBC Boilers Fuel EZR Cogeneration Plant Steam 85% FO 15% NG 951,500 tCO2/year Efficiency = 77,5% 196 MW 415 t/h Electricity Fuel Combined Cycle Thermal Plant 196 MW Electricity 78% NG 22% RG 1,136,500 tCO2/year Efficiency = 82% Steam 415 t/h Fuel 100% NG Efficiency = 60% 581,000tCO2/year Without integration 1,532,500 tCO2/year CO2 Index = 0,34 tCO2/MWh CO2 Avoided 396,000 tCO2/year With integration - cogen 1,136,500 tCO2/year CO2 Index = 0,26 tCO2/MWh HSEE EZR Cogeneration Plant – Conclusion • Results: – Energy economy: 1,771 b/d – Carbon emisisons avoided: 396,000 ton CO2/year – Lower carbon intensity in Petrobras energy profile – Lower NOx emissions HSEE Agenda 1. Petrobras Main Figures 2. Petrobras 2020 Strategic Plan 3. Energy Efficiency Context in Petrobras 4. Energy Efficiency Example Cases 5. EZR Cogeneration Case 6. Challenges for Petrobras HSEE Energy Efficiency Challenges in Petrobras •1 Implement a new management model for Energy Efficiency - Future vision - KPIs and goals - New corporative standards • 2 Insertion of Energy Efficiency requirements in Petrobras new design models - More efficient designs - Consider the carbon emission • 3 Projects of energy efficiency in the actual plants - Priorize energy efficiency projects in the Company portfolio Profitability Increases Operational Efficiency Increases Company Image Prepare to Future Scenarios HSEE Thanks! Claudio Rücker Energy Efficiency Sector rucker@petrobras.com.br