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Optimized Energy Management and planning tools for the Iron and Steel Industries


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With Iron and Steel industry being the 2nd largest energy consuming industrial sector, it is important to analyze and take measures for reducing energy consumption in steel plants as well as increasing productivity and improve bottom line. This presentation describes what Energy Management process is and provides tips for execution.

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Optimized Energy Management and planning tools for the Iron and Steel Industries

  1. 1. Optimized energy management and planning tools for the iron and steel industries Klaus Lachmann Steel Solutions Director Schneider Electric
  2. 2. 2 Index ●The energy dilemma ●Energy Management Information System ●Reference Case ●Conclusion ●Q & A
  3. 3. 3 The energy dilemma vs Energy demand By 2050 Electricity by 2030 CO2 emissions to avoid dramatic climate changes by 2050 The facts The need Source: IEA 2007 Source: IPCC 2007, figure (vs. 1990 level) Power outages Rising energy prices Climate change Conflicts for resource access & control
  4. 4. 4 New regulations and standards everywhere
  5. 5. 5 Energy Management Program Iron & Steel industry under pressure ●2nd largest energy consuming industrial sector ● Cost of Energy versus production costs ●Serious GHG footprint ●Business and operational challenges ●Increasing production ●Increasing plant availability and flexibility ●Reducing energy consumption per ton ●Reducing the cost of energy per ton ●Taking control of emissions
  6. 6. 6 Energy Management Information System A comprehensive energy management program ●Strategy: Holistic strategy and action plans covering complete industrial operation ●People: Energy efficiency and energy management as company culture, empowerment ●Processes: Plan-Do-Check-Act Cycle, continuous improvement initiatives, accountability ●Information technology: visibility of energy, ability to compare, analyze and benchmark
  7. 7. 7 Energy Management Information System (EMIS) ●Goals ●Relevant information to key individuals and departments ●Enables energy performance and operation improvement ●Detection of energy related opportunities and anomalies ●Main characteristics ●Sensors, energy meters, other related hardware ●Software support for performance monitoring, data analytics and decision making ●Energy and sustainability reporting capabilities ●Data verification and long term data storage
  8. 8. 8 Often heard issues ● Insufficient contextual data on individual assets ● Spreadsheet culture with disparate data ● Manual data collection into a number of systems ● Lack of detailed KPIs relating to Sustainability ● Disconnect between people and asset information ● Legal liability, compliance and environmental standards ● Misconception that reducing energy consumption means reduced production ● Solutions to address WAGES
  9. 9. 9 EMIS functional requirements A closer look (1/2) ●Near Real Time Operation ●Monitor energy consumption and any other factors that affect energy use, such as type of finished product, shift and operator changes ●Data aggregation from disparate data sources by work centre, site, etc for online energy balance ●Calculation of sustainability KPI’s, kWh/t, GJ/t or m3 water/t ●Alert sudden changes in energy use patterns in specific process configuration, such as over consumption, ●Analyze ●Energy usage and cost analysis by product, media and process ●Benchmark the energy use to previous periods and target performances and industry best-practices ●Establish of optimal energy consumption target for each section of the process
  10. 10. 10 EMIS functional requirements A closer look (2/2) ●Enable ●Forecasting and planning of energy consumption based on certain parameters such as type of production ●Cost allocation to the relevant cost center’s, processes and products ●Energy procurement support and utility bill verification ●Report ●Near real time energy consumption reporting by media and process through web portals and customizable dashboards ●Periodic or triggered reports: energy, consumption, emission data and sustainability KPI’s (shift, daily, monthly, media, process, area, …) ●Environmental and regulatory compliance reporting One version of truth • Same information for everyone • Centralized energy information storage • Data integrity, data verification and audit mechanisms
  11. 11. 11 EMIS architecture Simplified Enterprise HMI: Data display, analysis, reports Enterprise data management: Enterprise data aggregation and KPI calculation ERP WAGES Process automation Plant data management: Data aggregation and KPI calculation Process data acquisition Metering architecture Rolling Mill Plant HMI: Data display, analysis, reports MeltshopCoke plant Sinter plant Power Plant … Site B Aggregation of information from different plants at company level for an enterprise-wide picture of total energy usage, costs, and performance. Energy & Sustainability KPIs
  12. 12. 12 The need for analytical tools
  13. 13. 13 Sustainability KPIs Tailored for User Groups ●Scalable real time or near real time information ●Plant operators and Plant supervisors ●Energy And Energy Efficiency manager ●Top Management ●Key Performance Indicator ●kWh/t, GJ/t, m3 water/t ●Emission / t ●Energy costs / t ●...
  14. 14. 14 EMIS architecture Software and modules Real time monitoring Modeling Workflows Performance Management Reports & Dashboard Knowlegde Man. Applications (Balance, Prediction, Alarming, Optimization, …) Information
  15. 15. 15 Information tools Visualisation and Reporting Dashboards (samples) Reports (samples) Role based capability to monitor and improve daily operations, to analyze and drill to detail according to individual needs. Triggered or automatic reports in standardized or customized format.
  16. 16. 16 Efficiency improvements Energy and Cost ●Major cost impact ●Intra-site benchmarking of KPIs, comparing similiar assets like blast furnaces, sinter plants or crews ●Enhanced capabilities to manage and utilize blast furnaces and coke ovens gas ●Identification of process irregularities and equipment performance issues ●Additional cost impact ●automated metering processes ●simpler internal energy cost administration ●easier sustainability reporting
  17. 17. 17 Results Worldsteel presentation, published November 2012
  18. 18. 18 Reference case China ●Large scale vertically integrated mill ●13+ mtpa ●numerous high quality long and flat products ●Major production equipment ●8 Coke Batteries ●7 Sinter Machines ●6 Rotary Kilns, Shaft & Rotary Hearth Furnaces ●9 Blast Furnaces ●9 Basic Oxygen Converters ●16 Casters, Rolling and Processing lines
  19. 19. 19 Why the investment in an EMIS? Areas of Improvement ●Competitive cost pressure ●Visibility and decision making capability ●Energy and carbon data, energy costs ●Disparate sets of data ●Energy operation ● Planning of energy consumption and generation ●Optimize energy use, procurement and sale ●Benchmarks, continuous improvement strategy ●Environmental compliance, reporting mandate
  20. 20. 20 EMIS Scope Equipment ●Metallurgical and processing equipment, mill power plant ●25 different energy media ●100+ major energy equipments ●Top gas Recovery Turbines (TRT), ●Cogeneration ●Gas distribution systems ●water booster stations, water wells ●steam and gas boilers
  21. 21. 21 EMIS Scope Main features ●Online and near real time functions ●Energy consumption by media, ●Online Energy Balance ●Sustainability KPIs, ●Alarming system ●Analytical functions ●Energy usage and cost analysis by product, media and process, based on equipment and operator performance ●Trending analysis (actual, historical)
  22. 22. 22 EMIS scope Main features ●Forecasting and planning functions ●Energy Forecast and Load Balance for Gas, Oxygen, Nitrogen and Argon ●Multi-energy balance ●Short and long term forecast ●Reporting functions ●Online (intranet), customizable dashboards, periodic and triggered reports ●Centralized and redundant data storage
  23. 23. 23 Conclusion ●The industry is challenged by energy, emissions and the increasing need for sustainable manufacturing ●To manage and optimize energy, emissions and production effectively, manufacturers must establish an energy management strategy ●Energy Management Information Systems (EMIS) have a key role in the continuous improvement process ●Modern EMIS solutions provide ●Real-time visibility of energy and cost ●Planning and purchasing support ●KPIs to facilitate decision making
  24. 24. 24 Klaus LACHMANN Steel Solutions Director Schneider Electric Thank You Phone: +49 (0) 2102 / 404 ext. 9368 Mobile: +49 (0) 172 / 211 94 87 Email:
  25. 25. 25 Make the most of your energy™