Boris van Thiel discusses how small incremental improvements, or marginal gains, can provide significant benefits. He outlines how thyssenkrupp achieves marginal gains through innovative technologies like their STAR process for propylene production and urea fertilizer production with elemental sulfur. Process improvements and asset management also provide marginal gains through initiatives like mechanical design changes that reduce energy use by 7%. These many small improvements, though only 1% individually, have large cumulative impacts when implemented across an organization.
1. Delivering Marginal Gains –
How the 1% really matters
Boris van Thiel
CEO Middle East
thyssenkrupp Industrial Solutions
2.
3. Agenda
• thyssenkrupp @ a glance
• Ongoing trends in Middle East
• Marginal Gains by
- Innovative technologies
- Process improvements
- Asset Management
• Summary
4. thyssenkrupp @ a glance
Present in nearly
80countries
~17,000
patents in total
$45,5bn
Sales
production sites,
offices and service locations
all over the world
>2,200
employees
~155,000
R&D spending
$785mn
2,000
industrial property
rights in reporting
period
5. machines and systems
in use worldwide
>17,600
of our employees are
engineers and technicians
Almost 70%
chemical installations
constructed worldwide
Over 2,500
thyssenkrupp Industrial Solutions @ a glance
More than
years of engineering200
excellence
6. thyssenkrupp Industrial Solutions pedigree
20142002
founded in 1859
founded in 1992
founded in 1921
Resource
Technologies
Process
Technologies
Industrial
Solutions
2015
7. Ongoing trends in Middle East region
Consolidation Phase
Resource Efficiency
Expansion of
Value Chain
Long term Strategic
Partnerships
Petrochemicals &
Refinery Integration
Need of Innovative
Technology
Low Oil Price
8. Ongoing trends in Middle East region
Monetizing gas, Diversifying local economies and downstream industry as well as job creation
C1/C2 based
feedstock projects
Projects with
Specialty/
Differentiated
Products
Refinery/Petchem
Integrated Projects
Naphtha Based
(non-discounted)
projects?
Downstream Industry Development?
Feedstock drives the Middle East petrochemical industry evolution
- not the market
Source: IHS
Mixed feedstock
C1/C2/C3/C4/Light
Naphtha based
projects
9. 0%
20%
40%
60%
80%
100%
0
1
2
3
4
5
6
7
8
9
10
1995 2000 2005 2010 2015 2020
%ofWorldTotal
Ethylene Propylene Paraxylene Benzene Methanol Chlorine
Middle East Capacity Additions
MillionMetricTons
Source: IHS
Ongoing trends in Middle East region
Capacity builds largely driven by gas allocations
14. Evolutionary Process Improvement
• Electrolysis: Chlorine and caustic
soda production from salt
• Power makes up 70-85% of costs in
chlorine process
• Approx. 7% power saving achieved
• Improvement via mechanical design
and process control improvements
• Widely deployed in Middle East
2,070
2,170
2,130
2,055
2,020
v3
v4
v5plus
v5
v6
PowerconsumptioninkWh/tNaOH1)
2008 20111997 20122005
15. Revolutionary Process Improvement
Production of Propylene Oxide (PO)
• Co-product free - traditional routes have
co-products and additional market
dependency
• Environmental friendly
hydrogenperoxide based production
• Competitive production costs
• Licensed to SKC (Korea) and
Shenhua (China)
17. Creating Value in the Fertilizer Market
Granular Urea with Elemental Sulphur (ES) brings added value to ALL players
• Sulphur to improve yield and quality
• Nitrogen, Sulphur applied separately
= high cost
Farmer:
• Low urea prices
• Changing markets
(US independency)
• How to preserve
margins?
Nitrogen Fertilizer producer:
• Abundant Sulphur
available:
• How to create value
out of it?
Oil & Gas producer:
Granular Urea
+
elemental Sulphur (ES)
18. Granular Urea + ES: Market Situation
~ 10 MMt/a of sulphur needs addition to soil
~ 2 MMt/a covered by other sulphur applications
Urea Granulation Middle East Africa
Annual Production [MMt/a] 20 13
No of plants 24 14
No of producers 10 8
Elemental Sulphur
Annual Production [MMt/a] 12 1.6
No of plants 63 17
No of producers 44 17
Urea is used as carrier for sulphur Source: IHS Chemical Economics Handbook Sulphur
12.5 MMt S/
year world
wide deficit
by 2015
19. Granular Urea + ES: Product
Higher nutrient density High agronomic efficiency
Balanced nutrients within a single granule
Higher nutrient content, higher agronomic efficiency
Majority of sulphur
particles < 30 µm
Uniform distribution
of sulphur particles
Urea (N) Urea+ES
46% Nitrogen 40% Nitrogen
+ 13% Sulphur
N
N
N
S
N
NN
S
S
N
N
NN
NN
N
N
N
20. Granular Urea + ES: Technology
Process
condensate
Make
up
Atomising air
Air
Gran. Additive
SC
To Storage
Air
Process
Condensate
S-Acid
Urea solution
from evaporat.
Fluidisation air
Stack
Bleed
Screen
Crusher
SC
Granulator
Scrubber
Bucket elevator
Final
Cooler
First
Cooler
Scrubber
Tank
Start-
up Bin
Cooler
Scrubber
Granulator
Safety
Screen
Fluid bed urea
granulation plant
adapted
Micronized
dispersion of
elemental sulphur in
urea solution
(Shell Thiogro)
1 plant
2 products
Recycle
Vacuum
Evaporation
Liq. Sulphur
ThioAdd
Sulphur
Dispersion
Unit
21. Granular Urea + ES: The Value Proposition
Farmer needs 5
tons/acre less for same
nutrient content
Fertilizer required (tons/acre):
Urea AS 45.66
Urea ES 40.70
Cost for application
(US-Middle East comparison)
by adding 6 $USD for
sulphur producer gains
92,00 $USD per ton
higher revenues!
Additional value for urea producer
23. STAR process® On-purpose production of propylene growing
• Mainly driven by growing demand for Polypropylene
• Other products are Propylene Oxide, Cumene,
Acrylonitrile, Acrylic Acid, Oxo Alcohols
• Demand for propylene outpaces supply from conventional
sources (Steam Cracking, Fluid Catalytic Cracking)
• Refinery economics & improved fuel efficiency affecting
supply from refineries
• On-purpose production of propylene required
• Share of on-purpose technologies growing from
7% in 2000 and >30% in 2022
Source: IHS
Demand
Supply
Conclusion
24. STAR process® - Dehydrogenation Technology
Hydrocarbon
partial pressure
decrease
Constant and
mild reaction
conditions
Flexible and safe
operation
• Advantage in CAPEX & OPEX of raw gas
compressor
• Less by-products product directly meets the
polymer-grade propylene spec.
• Lowest catalyst inventory:
No moving catalyst or hot switching valves
Simple and robust operation less maintenance
• Coke directly re-converted into CO/CO2 longer
operational cycle between regenerations
(usually 7h / 1h ), with high flexibility
• Steam also used as purge medium simple stop
gas flow in case of any disturbance
• Shorter re-start from “hot stand-by“
• Proven annual plant availability of 99%
26. Concerns in a running plant
HSE
Reliability
Product
Quality
Plant
Availability
Optimized
Lifecycle
Costs
Synergistic
Partnerships
Statutory
Compliances
27. Integration of Asset Management
Long lasting partnerships basically create value/ Marginal Gains
28. Key characteristics of Integrated Asset Management
Holistic approach for the whole plant
• Solution provider for all disciplines:
HSE
Operations
Mechanical
Electrical & Instrumentation
• Embedded into client‘s organization and same
levels of ”ownership“ for physical assets
People Process
Technology
29. Eliminating the hidden costs
Visible
Invisible
Poor quality
Delivery issues
Reduced asset life
Lost production
Reputation damages
Safety/ environment risk
Services
Personnel
Materials
Energy
31. Your contacts
Head of Business Development
thyssenkrupp Industrial Solutions,
KSA
KSA KUWAIT BAHRAIN
Harald KuttnerAyman El Moghly
Head of Sales & Process
thyssenkrupp Industrial
Solutions, Egypt
EGYPT JORDAN LEBANON
TUNISIA
Vice President Business
Development,
thyssenkrupp Industrial Solutions,
Regionalcluster Gulf States
QATAR UAE OMAN + OTHERS
Malcolm Cook