Strategic Energy Management For Resilience

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Crossing the (Energy) ChasmStrategies for Today’s Manufacturing Industry

Hakan Erdamar

President, Emerson Climate Technologies

6 OCTOBER 2015

1.5 million urbanize each week

An Energy Chasm is Developing

Today’s Discussion

“The ten members of the ASEAN are – along

with China and India – shifting the center of

gravity of the global energy system to Asia.”1

Market

Dynamics

Singapore

Industry

View

Solving

Industry

Challenges

IEA report on ASEAN1

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Crude Oil Trends (Brent vs. WTI)

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“$100 per barrel is the new norm and

this will be the price well into the future”

- Oil Major CEO, CERA Week 2014

“Goldman Sachs Doubling Down On

Failed Gas Price Prediction’”

- Oilprice.com, May 2015

Energy Predictions are Difficult

(Even for the Experts!)

Industrial plants must remain vigilant with energy use and should not become complacent

because of today’s low prices

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• Energy supply disruptions (geopolitical, pipeline access)

• Energy pricing uncertainty (to hedge or not to hedge)

• New technologies (distributed generation, utility scale

batteries, DC transmission)

• Energy policies (feed in tariffs, production credits, efficiency

mandates)

• Carbon mitigation policies (trading markets, global summits)

Other Industry Drivers

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Singaporean Energy Efficiency

Technology Adoption is Key to Crossing

the Chasm

t

STRATEGIES TO IMPROVE

PLANT EFFICIENCIES

Process Automation is a Fundamental

Requirement

“You can only optimize what you can control”“You can only control what you measure”

Heat Rate Improvements for Thermal

Plants (Producers)

Average oil-fired plant heat

rate is 10,500 Btu/kWh

1% improvement = $1M in

annual savings

5°C decrease in feed water

temperature increases heat

rate by 11.2 Btu/kWh = $60k

additional annual cost

Heat Rate = Input Energy / Generated Power

Assumptions: 600MW Plant Courtesy: EPRI

ImprovementOperational

BenefitPayback

Improving combustion controls 0.25 – 1.00% <1 year

Repair of steam and air leaks 0.30 – 2.00% <1 year

Cleaning / preventing turbine deposits 0.25 – 3.50% 1 – 2 years

Improving feedwater heater monitoringand repair

0.20 – 1.00% 1 – 3 years

Heat rate performance monitoring & awareness

0.30 – 3.50% 1 – 3 years

Investing in Heat Rate Optimization

for Quick Benefits and Payback

Source: AES Corporation, Powermag.com, Emerson Research

For a typical 500 MW plant, a 1% heat rate improvement saves nearly $1M in fuel and reduces CO2 emissions by 1%

Improvement Automation Solution

Improving combustion controlsCombustion optimizer

Flame instability diagnosticAuto oxygen trimming

Repair of steam and air leaks Steam trap monitoring

Cleaning / preventing turbine deposits

Steam and water analysis system

Improving feedwater heater monitoring and repair

Heater vessel level

Heat rate performance monitoring & awareness

Education and consulting services

Investing in Heat Rate Optimization

for Quick Benefits and Payback

Source: AES Corporation, Powermag.com, Emerson Research

“You can only optimize what you can control”

[File Name or Event]Emerson Confidential27-Jun-01, Slide 14

Our Customers Have Lowered Their Energy Costs

Reducing Steam Losses Overall utility efficiency

improved

• Pressure relief valve monitoring

• Steam trap monitoring

• Steam leaks reduced

• Overall heat rate improved

• Emerson wireless acoustic sensors

and analytics software

• 115 MW combined cycle co-gen

facility

• Supplying steam to refinery and

electric to grid

• (3) GTs, (7) STs, (5) boilers

• Natural gas, fuel gas, and fuel oil

• Emerson optimization provided unit

setpoints while incorporating limits,

USD $1.0MM annual savings

UK Cogeneration Power Plant AP Refinery

The Energy Management Opportunity for

Industrial Plants (Consumers) is Huge

Industrial facilities consume

as much as 50% of the

world’s total energy.*

*US Energy Information Administration

The industrial sector has

only realized 50% of the

potential system / life cycle

improvements in energy

**International Energy Agency

Additional Measurements are Required

for Visibility; Pervasive Sensing

Energy

and fuel

useSteam trap

leakage

monitoring

“You can only control what you measure”

Current and

power factor

monitoring

Energy Cost Savings Can Be Significant

ApplicationAnnual

Savings ($M)Implementation

Cost ($M)ROI

(Months)

Heat Exchanger Monitoring

$2.7-$3.6 $0.62 3

Cooling Tower Monitoring

$0.3-$0.5 $0.16 4

Steam Trap Monitoring

$2.5-$3.3 $1.48 5

Relief Valve Monitoring

$2.4-$3.2 $1.59 6

Air Cooled Heat Exchanger Monitoring

$0.9-1.1 $1.2 13

TOTAL $8.8-11.7 $5.05 5 months

Energy Management

System saves 5 to

10% annually

Monitor both

electrical and steam

consumption

Energy Management Tools Provide

Data for Better Decision Making

Consult for a Day

Site Assessment Study

Implementation

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• Operating and optimization recommendations

• Dynamic simulation of recommended changes

• Energy Management System needs identification

• Project cost/benefit analysis

• Study report

Collaborative Approach to Energy

ManagementViability

Energy Savings Opportunities Are

Everywhere

As

se

t / S

ys

tem

C

on

tro

lC

us

tom

er

Sit

es

Su

pe

rvis

ory

Co

ntr

ols

Mo

nit

ori

ng

So

luti

on

s

Supermarkets Convenience Stores Restaurants Container Vessels

Global Ops

Center

IT

Systems

Software

Technology

Container

Monitoring

Cloud-Based And On-Premise Monitoring

Energy & Maintenance Savings

Perishable Inventory Protection

Operational Cost Savings

Predictive Analytics

Cases, Coolers, Racks A/C EquipmentKitchen

EquipmentRefrigeratedContainers

• Building Management System (BMS)

• Refrigeration• HVAC• Lighting

Energy Use

Goal

Energy Use

Today

Viability

Measure

Detect

Inefficiency &

Overconsumption

Plant Audit

Conclusion – fix the 3 V’s

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Thank YouLearn morePresentation: “Plant Modernization for Energy Efficiency and Loss Control”Session: Breakout Session 2A, Chemicals sector energy efficiencySpeaker: Jonas Berge, Emerson Process ManagementTime: 6 October, 3.55pm to 5.10pm