Klaus LachmannSteel Solutions Director

Schneider Electric

Optimized Energy Management and Planning Tools for the Iron and Steel Industry

Index

The Energy Dilemma Energy Management Information System Reference Case Conclusion Q & A

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

Regulations and Standards are Everywhere

Energy Management

Program

Iron & Steel Industries are Under Pressure

2nd largest energy consuming industrial sector Cost of energy versus production costs Serious GHG footprint

Business and operational challenges Increasing production, plant availability, flexibility Reducing energy consumption per ton Reducing the cost of energy per ton Taking control of emissions

Energy Management

InformationSystem

Comprehensive Energy Management Program

Strategy: Holistic strategy and action plans covering the complete industrial operation

People: Energy efficiency 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

Common issues

Insufficient contextual data on individual assets

Spreadsheet culture with disparate data

Manual data collection into a multiple systems

Lack of detailed KPIs for achieving sustainability

Misconception that reducing energy consumption means reduced production

Solutions to address WAGES

Energy Management Information System (EMIS)

Relevant information to key individuals and departments

Enables energy performance and operation improvement

Detection of energy related opportunities and anomalies

EMIS functional requirementsA closer look (1/2)

Near Real-time Operation Monitor consumption and any affecting factors Data aggregation from disparate data sources Online energy balance Sustainability KPIs, e.g. kWh/t, GJ/t or m3 water/t Alerts for sudden changes in use patterns

Analyze Usage and cost analysis: product, media, process, etc. Benchmark: periods, target performance, best practices Optimal energy consumption target

EMIS functional requirementsA closer look (2/2)

Enable Forecasting and planning based on production

parameters Cost allocation: cost centers, processes and products Procurement support and utility bill verification

Information Near real-time reporting through web portals and

customizable dashboards Periodic / triggered reports: KPIs, energy, emissions, cost,

configurable aggregation Compliance reporting

One version of truth

• Same information for everyone

• Centralized energy information storage

• Data integrity, data verification and

audit mechanisms

Sustainability KPIsTailored for User Groups

Scalable and near real-time information Plant operators and plant supervisors Energy and energy efficiency manager Top management

Key Performance Indicators (KPIs) kWh/t, GJ/t, m3 water/t Emission / t Energy costs / t More...

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 from different plants at company level for an enterprise-wide picture of total energy usage, costs, and performance.

Energy & Sustainability

KPIs

EMIS architecture Software and modules

Realtime Monitoring System

Realtime Monitor

Remote Operate

TrendEvents &

LogsFailure & Alarming

Data Archive

Web Publish

Tag Mgt.Graphics

Mgt.

Data Collecting Systems

Electric Metering Production Automation

Workflow Management Modul

ReportSSRS

HistorianDatabase

Performance Management Modul

Plant Hierarchy

KPIs Mgt.

Data Analytics

Calculate Engine

Knowledge Mgt.

Data Interface

Database mgt.

ReportSSRS

Basic Management Functions

Flow Mgt. Data Mgt.Workflow Engine

Event Mgt.Data Interface

Energy Management Information Publishing

Optimization Modul

Model Mgt.

Rules Base

Para. Mgt. Data Interface

Advanced Functions

O n l i n e

O p t i m i z a t i o n

M u l t i B a l a n c e

Waste Material Functions

Knowledge Management

User Authorization Management Customized User InterfacesDocuments and Resource

ManagementDashboard Graphical Representation

Reports and Dashboard

Presentation Layer

Application Layer

Data Layer

Existing Systems

Report Designer

Forecast Models

Balance ModelsSupport

Layer

F o r e c a s t

E q u i p m e n t

M o d e

P l a n &

P e r f o r m a n c e

O p e r a t i o n

M o d e

E m e r g e n c y

P l a n

Q u a l i t y

M a n a g e m e n t

O p e r a t i o n

L o g s

M a t e r i a l

D e f e n i t i o n

P e r f o r m a n c e

A n a l y s i s

P l a n

M a n a g e m e n t

D o c u m e n t

M g t

M a s t e r D a t a

R e p o r t

M g t

E q u i p m e n t

D a t a

E n e r g y

B a l a n c e

C o s t

A l l o c a t i o n

P e r i o i c

R e p o r t s

D o w n t i m e

B e n c h m a r k

C o m p l i a n c e

E q u i p m e n t

K P I

E q u a t i o n

ERP

MES

Finance

DMES

Production

Historian Data Flow

Realtime Data

Real-time Monitoring

Modelling WorkflowsPerformanceManagement

Reports &Dashboard

KnowledgeMan.

Applications (Balance, Prediction, Alarming, Optimization, etc.)

Information

Energy Analytics

Energy Data

Software Analytics

Multiple sources- types- formats- protocols

Compliance reportingEnergy savingsGHG reductionCost accountingIrregularities

Users: Multi-site Multi-purpose

Information ToolsVisualization

Dashboards (samples)

Role-based capability to:- monitor and improve operations- analyze and drill to detail according to individual needs.

Information ToolsVisualization and Reporting

Dashboards (samples) Reports(samples)

Role-based capability to monitor, analyze and drill to detail.Triggered or automatic reports in standardized or customized format.

Efficiency ImprovementsEnergy and Cost

Major cost savings Intra-site benchmarking of KPIs, comparing similar

assets like blast furnaces, sinter plants Capabilities to manage off-gas Identification of process irregularities and equipment

performance issues

Additional cost savings Automated metering processes Simpler internal energy cost administration Easier sustainability reporting

Results

Worldsteel presentation, published November 2012

Reference CaseChina

Large scale vertically integrated mill 13+ mtpa Numerous 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

EMIS Investment Drivers

Competitive cost pressure

Visibility and decision making capability Energy and carbon data, energy costs Disparate sets of data

Energy operation Planning of consumption and generation Optimize use, procurement and sale Benchmarks, continuous improvement strategy

Reporting mandate, compliance

EMIS ScopeEquipment

Metallurgical equipment, mill power plant

25 different energy channels

100+ major energy equipments Top Gas Recovery Turbines (TRT), Cogeneration Gas distribution systems Water booster stations, water wells, Steam and gas boilers, etc.

EMIS ScopeMain features

Online and near real-time functions Energy consumption by channel Online Energy Balance Sustainability KPIs Alert system

Analytical functions Energy usage and cost analysis by product, channel and

process, crew performance Trending analysis (actual, historical)

EMIS ScopeMain features

Forecasting and planning functions Energy forecast and load

balance for gas Multi-energy balance Short and long-term forecast

Reporting functions Online, customizable dashboards Periodic and triggered reports

Centralized and redundant data storage

Conclusion

Energy related industry challenges are likely to stay

Manufacturers must establish a holistic approach

Energy Management Information Systems (EMIS) play a key role in strategy and continuous improvement process

EMIS solutions provide Real-time visibility of energy and cost Planning and purchasing support Sustainability KPIs to facilitate decision making

Confirmed savings and acceptable ROI period

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