Optimized energy management and planning tools for the iron and steel industries Klaus Lachmann

Steel Solutions Director

Schneider Electric

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Index

●The energy dilemma●Energy Management Information System●Reference Case ●Conclusion●Q & A

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The energy dilemma

vsEnergy demandBy 2050Electricity 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 outagesRising

energy pricesClimate change

Conflicts for resource access

& control

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New regulations and standards everywhere

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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

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Energy Management

InformationSystem

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

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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

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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

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EMIS functional requirementsA 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

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EMIS functional requirementsA 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 reportingOne version of truth• Same information for everyone• Centralized energy information storage• Data integrity, data verification and audit

mechanisms

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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 plantSinter plantPower Plant…

Site B

Aggregation of information from different plants at companylevel for an enterprise-wide picture of total energy usage, costs, and performance.

Energy & Sustainability

KPIs

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The need for analytical tools

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Sustainability KPIsTailored 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●...

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EMIS architecture Software and modules

Real time monitoring

Modeling WorkflowsPerformanceManagement

Reports &Dashboard

KnowlegdeMan.

Applications (Balance, Prediction, Alarming, Optimization, …)

Information

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Information toolsVisualisation 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.

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Efficiency improvementsEnergy 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

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Results

Worldsteel presentation, published November 2012

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Reference caseChina

●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

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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

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EMIS ScopeEquipment

●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

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EMIS ScopeMain 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)

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EMIS scopeMain 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

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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

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Klaus LACHMANNSteel Solutions Director

Schneider Electric

Thank You

Phone: +49 (0) 2102 / 404 ext. 9368Mobile: +49 (0) 172 / 211 94 87 Email: klaus.lachmann@schneider-electric.com

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