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    Achieving Significant & Sustainable Energy Reduction

    Via A Cost-Effective Energy Management Program

    Presenters:

    B T Narasimha Jack DavisInvensys Resources2Energy

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    VALUE FOR CLIENTS

    The Invensys-R2E Partnership

    Slide 3

    DOMAIN

    EXPERTISE

    Proven Results in

    Refinery Energy Mgmt.

    Proven Results in

    Oil & Gas Projects

    Significant Reduction in

    Energy Consumption

    TECHNOLOGYSTRATEGY

    Proven Templatesfor Energy Mgmt.

    Proven TechnologyPlatform

    Open & RobustSoftware Technology

    SERVICES

    STRATEGY

    Sustainable & Scalable

    Methodology

    Global Delivery

    & Lifecycle SupportSustainable

    & Scalable

    Low-to-No CapitalInvestment

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    Invensys: At a Glance

    Industry Leadership• 24 of the Top 25 Petroleum companies

    • 49 of the Top 50 Chemical companies• 35 of the Top 50 Nuclear Power plants

    • Over 650 Fossil Power plants

    Technology Platform Leadership:• Leading Industrial Automation software platform

    • #1 HMI Market Leader (ARC)

    • #1 MES/SCADA Market Leader (Frost & Sullivan)

    • 600,000 software licenses in installed base

    • Presence in one-third of all plants worldwide

    • Strategic Relationship with Microsoft

    Global Presence:• $2.1 Billion in Revenue

    • 9000 employees in 50 countries

    • 35,000 clients in 200,000 locations in 180 countries• Largest global partner ecosystem

    • “Glocal” collaborative services deployment model 

    Slide 4

    Oil & Gas

    Metals, Mining, & Minerals

    Power

    HP and Chemical

    http://www.nucor.com/index.aspxhttp://www.alcoa.com/global/en/home.asphttp://www.kumba.co.za/index.phphttp://www.lukoil.com/

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    Resources2Energy: At a Glance

    Founded: 2005

    Team: A talent pool of seasoned oil industryconsultants that possess a unique

    combination of skills and competencies.

    Focus: Energy Industry spanning upstream,

    midstream, and downstream

    Differentiator:• “We pride ourselves on being focused. You will

    not see us bring in an army of consultants to

    displace your people, but rather to augment and

    enhance your team with strategic and timely

    insights, analysis and execution.” 

    Service Offering• Performance Diagnostics

    • Technical Consulting

    • Performance Benchmarking

    • Energy Management

    Slide 5

    LNG

    Marketing/Consulting

    Supply Chain/MES

    Performance Improvement

    http://www.hmel.in/default.htmhttp://www.slng.com.sg/index.aspxhttp://ceoworld.biz/ceo/wp-content/uploads/2009/10/Repsol-YPF.jpghttp://www.uruguayxxi.gub.uy/innovaportal/file/477/1/ancap-logo[1].jpghttp://www.cosytec.com/constraint_programming/references/images/logo_TECHNIP.jpghttp://www.listphile.com/Fortune_500_Logos/Tesoro/image/tesoro_logo.pnghttp://www.brazoriacountyday.org/logos/FreeportLNG_logo.jpghttp://www.marcgunther.com/wp-content/uploads/10739728-bp-logo.jpghttp://www.google.com/url?source=imgres&ct=tbn&q=http://www.britishgasservices.com/images/logos/l_britishgas_home.gif&sa=X&ei=rfO_TJnXI8TTjAfzv8XhCQ&ved=0CAUQ8wc4EQ&usg=AFQjCNH0zZFrJFT3vGSlgi-KnaFeilh70ghttp://www.google.com/imgres?imgurl=http://www.malecki.pl/centrum/PKN_Orlen_logo.jpg&imgrefurl=http://www.malecki.pl/&usg=__exBkSRwslmnrBK83Dq3LkddQ8QI=&h=252&w=359&sz=15&hl=en&start=4&zoom=1&um=1&itbs=1&tbnid=WWybqQOZz5sPxM:&tbnh=85&tbnw=121&prev=/images?q=PKN+Orlen&um=1&hl=en&sa=G&tbs=isch:1http://www.google.com/url?source=imgres&ct=tbn&q=http://stuckon-stupid.com/images/CitgoLogo.jpg&sa=X&ei=AfC_TJncIIHNjAfYytH6CQ&ved=0CAUQ8wc4Ag&usg=AFQjCNFg4iAT0zdy0TLgcZ7ACgOzytPnoghttp://www.google.com/url?source=imgres&ct=tbn&q=http://www.camh.org/Assets/logos/vitol.jpg&sa=X&ei=W--_TJC4N8iQjAeynaDwCQ&ved=0CAUQ8wc4AQ&usg=AFQjCNGR04iVT-cZpls9kfeAMUTHHZhcCAhttp://www.google.com/url?source=imgres&ct=tbn&q=http://gachitu.com/blog/wp-content/uploads/2008/01/pdvsa.jpg&sa=X&ei=0O6_TKOrA9O4jAfs0uziCQ&ved=0CAUQ8wc4CQ&usg=AFQjCNESIDtaX1xhNBDQhCqYOxspAp9B6Qhttp://www.gl-nobledenton.com/en/index.phphttp://www.mustangeng.com/Pages/default.aspxhttp://www.inovx.com/index.htmlhttp://www.hmel.in/default.htmhttp://www.wnr.com/Index.aspxhttp://www.cheniere.com/default.shtml

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    Agenda

    The Invensys-R2E Partnership

    Industry Trends and Challenges

    Energy Management Offerings

    Energy Management Solution for Demand Side

    • Results

    • Program

    Q&A

    Slide 6

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    Energy is the largest operating expense

    Energy,53.7% 

    Maintenance,21.0% 

    Non-MaintenancePersonnel,

    12.9% 

    Taxes, Insurance& Other Fixed,

    5.7% 

    Other Volume-Related,6.7% 

    Slide 7

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    Energy Trends

    • Many heavy process industry companies have made progress with capital projectswhich focus on upgrading or reconfiguring equipment – “mechanical” strategies 

    • Improved heat integration, modified tray design, reactors

    • Upgraded steam traps, pumps, compressors, fan motors, exchangers

    • Some heavy process industry companies have started projects with information and

    automation which go beyond “mechanical” strategies – “information” strategies 

    • Improved stabilization and reliability, scheduling and collaboration

    • Reduced fouling heaters, exchangers

    • But energy “programs” have encountered problems… 

    Slide 8

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    Energy Management Program Challenges

    An energy program is often:

    Decentralized

    Not part of a company’s core business 

    Technology-oriented

    Project- and not system-oriented

    Considered capital intensive

    Not viewed as a profit center

    Hard to sustain

    Result: Important energy savings are missed because the company lacks a means for

    controlling energy use across all operations

    Slide 9

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    Agenda

    The Invensys-R2E Partnership

    Industry Trends and Challenges

    Energy Management Offerings

    Energy Management Solution for Demand Side

    • Results

    • Program

    Q&A

    Slide 10

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    Invensys Energy Management Solutions for Refineries

    Supply-Side Offerings:- Improving Utility Generation

    Utility Equipment Performance Monitoring System

    Utility Plant Optimization (ROMeo Solution)

    Demand-Side Offerings:Energy Management Program including Sustainment (R2E methodology)

    Dynamic Targets for process units

    Sustainment program

    Slide 11

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    Demand Side: Energy Management Program 

    Slide 14

    VALUE FOR CLIENTS

    DOMAIN

    EXPERTISE

    1. Capture energy savings with little to no

    capital expense

    Significant Reduction in

    Energy Consumption

    TECHNOLOGY

    STRATEGY

    2. Implement energy management

    dashboard (system)

    Open & RobustSoftware TechnologySERVICESSTRATEGY

    3. Develop program to sustain benefits

    Sustainable

    & Scalable

    Low-to-No CapitalInvestment

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    Demand-Side: Energy Management Solution System Architecture

    *: BAM: Business Activity Monitoring

    *: IOMS: Integrated Operations Management System –Invensys set of applications for Operations

    Slide 15

       R   e    f   i   n   e   r   y

        U   s

       e   r   s

    Reports

    (Information Server)

    Calculation

    Runtime Services

    (Application Server)

    Workflow

    Management

    (Workflow Software)

    Dashboard Mobile Phones E-mail PDA Desktop

    Data Store

    (Historian)

       E   n   e   r   g   y   M   a   n   a   g

       e   m   e   n   t

       S   o    l   u   t   i   o   n   C   o   m   p

       o   n   e   n   t   s

    Information Access Services (Information Server)

    Data Access Services (Application Server)

    Calculation Modeling

    (Application Server)

    Historian

    Configuration

    Tool (HCT)

    Process

    Historian

    Other

    Sources   D   a   t   a

        S   o   u   r   c   e   s

    Lab DataSAP Data

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    Agenda

    The Invensys-R2E Partnership

    Industry Trends and Challenges

    Energy Management Offerings

    Energy Management Solution for Demand Side

    • Results

    • Program

    Q&A

    Slide 16

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    Demand Side: Energy Management Results

    1. Valero Energy Corporation

    i. Started with a Proof of Concept for Refinery #1

    ii. Repeat Engagements for an additional 12 refineries

    2. Customer 2:

    i. Started with Refinery #1

    ii. Repeat Engagements for an additional 6 refineries

    iii. With more to follow

    3. Measured, Captured, Accepted and Published benefits from the Customers

    4. Repeat Orders from same Customer is a testimony to Value Addition

    5. Simple and being credible with Operations – Key to a Successful Program

    Slide 13

    Slide 17

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    Energy Stewardship Program

    Energy Stewardship: 1st Quartile EII goal (91 EII breakpoint, currently targeting 89)

    Efforts are nearly 100% completed and yielding excellent results

    Key Components

     –  Reality based goals using actual operations

     –  Dashboards to make visible to all of organization

     – 

    Annual energy stewardship reviews with refinery management

    Refinery 1 (proof-of-concept)

     –  In the previous Solomon studies, refinery’s EII was 102, 120, and103

     –  Average EII performance was 4th Quartile

     –  Currently, the refinery EII is 80-85 EII

    Refinery 2

     –  In the same Solomon studies, refinery’s EII was 93, 99, and 96  

     –  Average EII performance was 2nd and 3rd Quartile

     –  Currently, the refinery EII is 80-85

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    Slide 15

    Benef i ts also extend to n ew best pract ices and lesson s learned

    Total benefits to date are nearly $200MM/yr for thirteen of sixteen refineries

    Key focus is to keep it simple and be credible with Operations Best practices are in parallel development

     –  Amine optimization procedure

     –  Enhanced sour water stripping

     –  Distillation pump around optimization

        $

       M   i    l    l   i   o   n   s

    Energy Stewardship Program Benefits

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    EMS Customer Result: Q3 Q2

    Slide 20

    86.3   86.0

    83.782.3

    85.785.3   85.0

    84.7

    80

    81

    82

    83

    84

    85

    86

    87

    1 2 3 4

    EII

    Survey Period

    Customer

    Industry

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    Major Steps of the Energy Management Program

    1. Capture energy savings with little or no capital expense

    i. Identifyii. Evaluateiii. Prioritizeiv. Execute

    Expect $8-12 million/year of energy reduction benefits within a 9-12 months

    2. Implement Energy Dashboard

    i. Track energy use at multiple levelsii. Compare performance vs. dynamic targetsiii. Drill-down capability for investigation

    To be used by operators, engineers, management

    3. Develop program to sustain benefitsi. Includes management oversight processes and reportsii. Build energy awareness and ownershipiii. Establish goal-setting and performance auditing processesiv. Capture additional benefitsv. Training program

    Slide 21

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    Phase 0 – Program Initiation 

    Deliverables:

    • Energy Program Charter

    • Energy Team

    • Communications Plan

    • Annual Program Audit

    Activities:• Meeting(s) with management to draft energy program goals, define funding, resources,

    timeline, energy team members

    • Draft program charter, communications plan, program schedule

    • Kick-off Program (with Energy Team in place)

    • Sustainment design and training

    • Audits

    Duration:

    • Length of project and beyond (benefit capture & sustainment)

    Slide 23

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    Phase 1 - Benchmarking (Baseline) 

    Deliverables:

    • Energy Baseline Report

    • Unit instances installed and scheduled

    Activities:

    • Installation of tools on one server or desktop and test connection to data historian

    • Historical Data Gathering and analysis• Review of analysis results with Process Engineers and Operations

    • Design and Implementation of baseline versus actual report

    Duration:

    • 3 months (completed simultaneously with Phase 2, 3 & 4)

    Slide 24

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    Phase 2 – Unit Metrics 

    Deliverables:

    • Energy consumption ratios (Energy/Throughput) for all process units and utilities

    • Energy loss metrics (Energy/day) for the CDU, RFCC, CCR

    Activities:

    • Data gathering, review of current calculations, PFD and P&ID reviews

    • Implementation of calculations for each unit in plant data historian assisted by Client IT(Consumption and Energy Loss)

    • Review and validation of metrics calculations and hierarchy with Process Engineers &

    Operations

    Duration:

    • 3 months (completed simultaneously with Phase 1,3, & 4)

    Slide 25

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    Phase 3 – Opportunity Identification 

    Deliverables:

    • Opportunity List

    • Top Opportunity List (includes detailed description, estimated cost and benefits)

    • Benefits Captured

    Activities:

    • Data gathering: review of current calculations, PFD and P&ID review, workshop with processengineers and operations for each unit – creates initial opportunity list

    • Detailed review and validation of opportunities with Process Engineers & Operations (this may

    include unit tests) – screening of opportunity list

    • Evaluation and prioritization of each opportunities – rough categorization of unit opportunities

    • Development of Top Opportunities List with Energy Team

    • Assignment of each Top Opportunity to specific Client staff to work

    • Review and tracking process to capture benefits and refresh the Top Opportunity List

    Duration:

    • Duration of program (opportunity capture)

    Slide 26

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    Phase 4 – Unit Specific Energy Targets 

    Deliverables:

    • Unit specific energy targets (preheat, reflux ratios, O2%, etc.) for all process units and utilities

    Activities:

    • Development of process variable (Controllable) targets based on R2E templates

    • Implementation of target calculations as required

    • Review and validation meetings with Process Engineers and Operations

    Duration:

    • 3 months (completed simultaneously with Phase 1,2,& 3)

    Slide 27

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    Phase 5 - Dashboard Design & Implementation 

    Deliverables:

    • Energy Dashboard (Overall, Exception, Units)

    • Training for Board Operators & Shift Supervisors

    Activities:

    • Screen and Navigation design

    • Review and validation with Process Engineers and Operations

    • Implementation and testing. Using OIS- Web21 tools

    • Training for Operations (5 man days)

    Duration:

    • 2 months (completed simultaneously with Phase 6 & 7)

    Slide 28

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    Energy Dashboard Components

    Graphics

    • Unit Graphics

    • Overview Graphics

    Reports

    • Management Report

    • Engineering Analysis Report

    • Baseline Report

    Slide 29

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    Opportunities - Operations View Example

    Slide 37

    Slide 30

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    Management View Example

    Slide 38

    Slide 31

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    Analysis Example

    Slide 39

    Slide 32

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    Phase 6 -Diagnostics Reports 

    Deliverables:

    • Energy Performance Reports

    • Training for Process Engineers

    Activities:

    • Design reports

    • Review and validation with Process Engineers and Operations

    • Implementation and testing. Using MS Excel and/or RTDB tools

    • Training for Process Engineers

    Duration:

    • 2 months (completed simultaneously with Phase 5 & 7)

    Slide 33

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    Exception Report Example

    Slide 41

    Slide 34

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    Phase 7 – Go-live Training

    Deliverables:

    • Energy business process design

    • Training on business processes

    • Audit report of business process execution

    Activities:

    • Design integrated energy business processes to be incorporated into existing Client operations

    business processes

    • Review and validation with Operations and Process Engineers

    • Go-live training on business processes

    Duration:

    • 2 months (completed simultaneously with Phase 5 & 6)

    Slide 35

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    Phase 8 – Support Training

    Deliverables:

    • Support business process design

    • Training on support business processes

    • Audit report of support business process execution

    Activities:

    • Design integrated support business processes to be incorporated into existing Client IT

    business processes

    • Review and validation with IT

    • Training on business processes 

    Duration:

    • 2 months (completed at end of project)

    Slide 36

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    Typical Project Schedule

    Energy Management Project

    1 2 3 4 5 6 7 8 9 10

    Phase 0 - Program Initiation 

    Phase 1 - Benchmark ing (Baseline) 

    Phase 2 - Unit Metrics 

    Phase 3 - Opportuni ty Indenti f ication & Capture 

    Phase 4 - Un it Specific Energy Targets Phase 5 - Dashbo ard Design & Implementation 

    Phase 6 - Diagno stic Reports 

    Phase 7 - Go-live Training 

    Phase 8 - Support Training 

    Slide 37

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    Energy Management Program: Success Factors

    Resourcing

    • Energy Coordinator

    • Operations Coordinator

    Established Energy Culture

    • Refinery management commitment• Change management program

    • Integrated work processes

    • Continuous improvement program (goals)

    Supporting Business Processes

    • Dashboard maintenance (content)

    • Tools maintenance (IT)

    • Training program (people)

    Slide 38

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    Agenda

    The Invensys-R2E Partnership

    Industry Trends and Challenges

    Energy Management Offerings

    Energy Management Solution for Demand Side

    • Results

    • Program

    Q&A

    Slide 39