kbc ioe webinar - achieving energy efficiency in your downstream operations

© 2012 KBC Advanced Technologies plc. All Rights Reserved.

23 October 2012

Achieving Energy Efficiency in Your Downstream Operations: Lean and Green Refineries & Petrochemicals

Agenda > KBC Overview

> Energy in the Current Context

> KBC’s Approach to Sustainable Improvements

> Experience and Case Studies > Summary

> Q & A

23 October 2012 2 PROPRIETARY INFORMATION

KBC Corporate Profile Leading Consultancy with World-class Technology

23 October 2012 3

• Market Analysis and Forecasting • Business Strategy Development • Merger, Acquisition, Divestment & post-transaction Integration support • Technical, Commercial, Environmental • Due Diligence & Feasibility Studies • Supply & off-take agreement support • Environmental Impact Assessments • Capital Project Support • Pre-Start up Support

• Supply Chain Management • Process Optimization • Energy Efficiency Improvements • Health, Safety and Environment • Reliability & Maintenance • Organizational Effectiveness • Technical Seminars, Training • Software Solutions • Technical Support

KBC • Independent, Objective Advice

• Enhance capital & asset effectiveness, Improve operational performance and Increase competitive advantage

• Net Revenues: £55 million in 2011.

Listed on UK Stock Exchange. ~300 employees worldwide.

• Meet Individual Client Needs with Consulting, Implemented Solutions, Human Performance & Technology

Operating Solutions: Capital Solutions:

KBC Approach

Why KBC?

KBC Solutions

KBC Office Locations

• Deliver competitive advantage to owners, operators and investors in the refining, petrochemical & other process industries industry through risk management and improvements in business performance

• Leading technical, commercial & environmental consultancy with world-class technology

PROPRIETARY INFORMATION





> Q & A


Impact of Energy Costs on Refining Margin

23 October 2012 5

• Energy on Crude is 5% to 10% • Costs $250 to $500 Million pa (200,000 bpd refinery) • 10% Savings Worth up to $50 Million pa • Increases Current Refinery Margins by 20%

• Costs Can Vary from Region to Region

• 50% Energy Based on Internal and Purchased Power & Fuel

• Other Includes: – Finance – 3rd party services – Insurance – Depreciation – Interest

Operating Cost Breakdown

Energy 50%

Maintain 15%

C&C 6%

People 13%

Other 16%


Impact of Energy Costs on Petrochemical Margin

23 October 2012 6

• Energy Costs ~$300 Million pa (900,000 tpa ethylene) • 10% Savings Worth up to $30 Million pa • Increases Current Margins by 15% to 20%

• Costs Can Vary from Region to Region

• 50% Energy Based on Internal and Purchased Power & Fuel

• Other Includes: – Finance – 3rd party services – Insurance – Depreciation – Interest

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

100

200

300

400

500

600

700

800

900

1000

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

$/t

Margin (cash margin - finance) Margin improvement (10% energy saving)

Operating Cost Breakdown

Energy 50%

Maint- enance

10%

C&C 10%

People 10%

Other 20%


Challenges for Our Industry > Increased Energy Prices > Reduced Margins > Stricter Governmental and Environmental

Legislation > Improve Corporate Image:

– Lean and Green

23 October 2012 PROPRIETARY INFORMATION 7

Rising Fuel Prices Make Investment in Saving Energy Highly Attractive

> Fuel prices have increased faster than plant capital costs – A 5 year payback in 1995

is now a 2 year payback – Incentive to invest in

capital projects & revisit older “uneconomic” projects

– Novel schemes could be attractive (heat pumps, divided wall columns, etc.)

> Also attractive to invest in engineering capabilities (manpower, tools, training)

23 October 2012 8

Energy Costs Versus Capital

0

100

200

300

400

500

600

700

1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

Cost

Inde

x

3% Fuel OilPlant Costs

Data: Q2 2011






> Q & A


ENgage Programme - The Main Tasks

1. Identify what needs to be done Benchmark, find performance

gaps and recommend Road Map for closure

2. Ensure it is done Implementation of gap closure

projects

3. Sustain the Effect Build Energy Management and

organisational structure enabling continuous improvement

23 October 2012 10

ENgageENgage

Strategic Energy Review

SER


SER

Energy Management

System

EMS

Energy Management

System

EMS

Human Performance ImprovementHuman Performance Improvement

Software and Technical SolutionsSoftware and Technical Solutions

ENgageENgageENgageENgageENgageENgage


SER


SER

Energy Management

System

EMS

Energy Management

System

EMS

Human Performance ImprovementHuman Performance Improvement

Software and Technical SolutionsSoftware and Technical Solutions


Achieving best practice energy performance means addressing all areas of energy management

23 October 2012 11

People Energy focused organisation

Defined roles & responsibilities

Organisational alignment

Active communication

Operator awareness

Training & mentoring

Benchmarking & Gap Analysis

Opportunity identification & evaluation

Project implementation

Performance monitoring & reporting

Target setting

Maintenance programmes

Energy RoadMap • Project packages • Investment plan

ProSteam • Steam, fuel and power system

scenario planning • On-line utilities optimisation

Energy Metric Management • Performance monitoring • Fouling monitoring

SuperTarget • Energy efficient design

Petro-SIM • Yield / Energy Trade-off

CarbonManager • Monitoring CO2 emissions

Technology & Tools

Methodology ENgageENgage


23 October 2012

Organisational Alignment

Definition of

Work Processes

Training

12

ENgage Implementation Overview Energy

Management System

Strategic Review Energy Assessment

MASTER PLAN

PEOPLE

METHODOLOGY ROADMAP

Tools Online Utility

Optimiser Energy Metric

Tracker Design Tools

Planning Tools

TECHNOLOGY & TOOLS

Best Practices

& Procedures

Tool Development

Traditional Implementation Process

1 2

4

2 3

5

1 5

Check Point to focus efforts in optimum area

Discover Develop Deliver

Human Capital


The Strategic Energy Review Identifies All Opportunities for Improving Energy Performance

23 October 2012 13

Energy RoadMap

Util

ity S

yste

m M

odel

ling

Benchmarking

Gap Analysis

Project Ideas

Detailed Analysis

Project Development

Project Ow

nership

KB

C

Client

Benchmarking and gap analysis determine the most profitable areas for improvement Project identification using pinch analysis, Total Site analysis, process simulation, PFD reviews and Mechanical Walkthrough

Modelling of utility systems to identify performance gaps and to evaluate project ideas

Project review to select projects for detailed development Development of project packages

Evaluation of project combinations and development of investment RoadMap


KBC’s Proprietary “Best Technology” [BT] Energy Benchmarking Methodology

23 October 2012 14

BT Configuration Development

All economically justifiable ENCON built in (4 years payback on last piece of equipment):

- Furnaces 92% eff. - Optimised heat integration (pinch) and process features - Efficient Steam&Power system - All power generated at 80% eff. - Yield efficient

Collect Process data: - BT parameters - Energy Balances

Correlations Development

- BT process modelled - Parameters affecting energy performance varied - Sensitivity found - Correlations using important parameters developed

KBC’s Development Work

Application

Apply KBC Energy Costing

methodology - PEE for power - Steam costing

Calculate BT Target

for all units

Calculate Total energy consumption

for each process

Calculate BT index for

each process and whole

site


BT Benchmarking and Gap Analysis > Best Technology (BT)

benchmarking compares actual energy usage to a BT energy usage

> 100% BT represents the best performance that could be expected from a modern plant designed with high efficiency components and features

> Performance gaps identified: – Steam and power – Heater performance – Heat Integration effectiveness – Process


23 October 2012

Gap Analysis

% of Gap Attributable to Unit 1 Unit 2 Unit 3

Steam and Power 55 32 67 Fired Heaters 11 24 12 Heat Integrations 13 12 10 Process 21 32 11

100 100 100

16

100

Areas of Improvement

Base Case

Steam&Power 55% Heaters 11%

Heat Integration 13% Process 21%

BT

Inde

x, %

BT

Gap


Process Unit Optimisation

23 October 2012 17

Comprehensive analysis Rigorous and systematic

approach Practical project

development Proven results from

1000’s of successful applications

SIMULATION

PINCH ANALYSIS

PROCESS EXPERTISE

PFD Review Meetings Supported by…………


Optimising Crude Distillation Unit

23 October 2012 18

LP steam

DESALTER

6

7

55

BPA

TPA

MPA

1

6

LP steam

HGO

1

6

LP steam

LGO

1

6

LP steam

KERO

RESIDUE

FLASH DRUM

HEAT RECOVERY TO 20°C ∆T AT PINCH

Outlet T Inlet T

Heater O2, Eff.

Pumparound Duty

Pressure Reflux

Preheat train: - Design - Performance - Fouling

Overflash

Steam


Process Unit Optimisation - Pinch

23 October 2012 19

F Pinch Modelling in SuperTarget

Grand Composite Curve

Steam

Composite Curves

Hot & Cold Targets Utility Targets + = Saving Scope

T

Q

Steam Generation

Cooling Water


Case Study - Topping Unit Revamp > Contractor Design

– 8 New Exchangers, 12 Shells – Furnace for stabiliser reboiler

> KBC Design – 5 New exchangers, 8 Shells, 2 Twisted tubes – No separate furnace – Additional 3.4 Gcal/h energy savings

> Economic Benefits – Operating cost saving US$ 0.57M per year – Reduced capital US$ 5.94M (55%)


Steam & Power Efficiency > Model of Site Steam and Power

System in ProSteam Software – Utility balances – Equipment / system constraints – Real cost of utilities – Emissions calculations

> Compare with Best Practice Design and Operation

> Target Cycle Efficiency Determined by R-Curve – Individually – System-wide – Optimal import strategy


Roadmap Development

> 60 project ideas were generated during the analysis phase > Screening for practicality and cost/benefits reduces the number > Final RoadMap contains 28 projects compatible with each other

and the utility system 23 October 2012 PROPRIETARY INFORMATION 22

Project Development

IdeasGeneration

ProjectScreening

FullCosting

RoadMap

6040 31 28

Project Development

IdeasGeneration

ProjectScreening

FullCosting

RoadMap

6040 31 28

Sample Implementation Roadmap

23 October 2012 23

0 1 2 3 Payback years

you are here

0 3 4 5 6 7 8 9

1 2

4 5 7

6

9

10

11

13

12 Add New Turbogen

8 boiler operation

Add New Process

Select 6, 7 or 9 to Save LP Steam

SASOL East Plant Initial Roadmap

Spare Steam Capacity For Limited Expansion (Replaces 3 & 8)

Boxes Represent Projects on Payback Time Scale - Size Proportional to savings


Technology: Energy System Modelling and Optimisation

23 October 2012 24

ProSteam™ – Utility System Modelling & Optimisation

WaterTracker™ and WaterPinch™

HX Monitor™ – Fouling Monitoring SuperTarget™ – Heat Integration of Processes and Utilities

Petro-SIM™

KBC CarbonManager™ - Emissions


Energy Metric Tracker > Successful energy management is built around monitoring energy metrics

– Optimise energy without sacrificing yields – Continuous comparison to target sustain performance – Optimise targets over time continuous improvement

23 October 2012 25

ControllingControlling

Drive continuous Drive continuous improvementimprovement

StrategicStrategic

Promote Promote investigationinvestigation

High energy impactHigh energy impact

MeasurableMeasurable

ControllableControllable

EnergyEnergy

CoordinatorCoordinator

KPIsKPIs

EngineeringEngineering

KPIsKPIs

OperatorOperator

EIVsEIVs

EnergyEnergy

CoordinatorCoordinator

KPIsKPIs

EngineeringEngineering

KPIsKPIs

OperatorOperator

EIVsEIVs Strip

ping

Stea

m

Side

Reb

oile

r Q

% V

acuu

mO

verf

lash

Ener

gy C

onsu

mpt

ion

CD

U

Furn

ace

O2

Furn

ace

Stac

k T

BT

Target

Stats

Energy Tracker - Operator LevelCDU EIVs 01/01/2008

-

+

Strip

ping

Stea

m

Side

Reb

oile

r Q

% V

acuu

mO

verf

lash

Ener

gy C

onsu

mpt

ion

CD

U

Furn

ace

O2

Furn

ace

Stac

k T

BT

Target

Stats

Strip

ping

Stea

m

Side

Reb

oile

r Q

% V

acuu

mO

verf

lash

Ener

gy C

onsu

mpt

ion

CD

U

Furn

ace

O2

Furn

ace

Stac

k T

BT

Target

Stats

Energy Tracker - Operator LevelCDU EIVs 01/01/2008

-

+

D86

Gap

LDO

/HD

O

D86

Gap

HD

O/H

AG

O

Furn

ace

CIT

Ener

gy C

onsu

mpt

ion

CD

U

D86

Gap

HN

/Ker

o

D86

Gap

Ker

o/LD

O

BT

Target

Stats

Energy Tracker - Engineering LevelCDU KPIs 01/01/2008

-

+

D86

Gap

LDO

/HD

O

D86

Gap

HD

O/H

AG

O

Furn

ace

CIT

Ener

gy C

onsu

mpt

ion

CD

U

D86

Gap

HN

/Ker

o

D86

Gap

Ker

o/LD

O

BT

Target

Stats

Energy Tracker - Engineering LevelCDU KPIs 01/01/2008

-

+

BT

BT

Target

Energy Tracker – Energy Coordinator LevelSite KPIs 01/01/2008

-

+

Spec

ific

Ener

gy

CDU1

BT

Spec

ific

Ener

gy

NHT

BT

Spec

ific

Ener

gy

CCR

BT

Spec

ific

Ener

gy

GOH1

BT

Spec

ific

Ener

gy

GOH2

BT

BT

Target


-

+

Spec

ific

Ener

gy

CDU1

BT

Spec

ific

Ener

gy

NHT

BT

Spec

ific

Ener

gy

CCR

BT

Spec

ific

Ener

gy

GOH1

BT

Spec

ific

Ener

gy

GOH2

BT

BT

Target


-

+

Spec

ific

Ener

gy

CDU1

BT

Spec

ific

Ener

gy

NHT

BT

Spec

ific

Ener

gy

CCR

BT

Spec

ific

Ener

gy

GOH1

BT

Spec

ific

Ener

gy

GOH2

BT

BT

Target


-

+

Spec

ific

Ener

gy

CDU1

BT

Spec

ific

Ener

gy

NHT

BT

Spec

ific

Ener

gy

CCR

BT

Spec

ific

Ener

gy

GOH1

BT

Spec

ific

Ener

gy

GOH2

AR CDU2151.3 t/h 82 t/h

150 C

AR CDU30.0 t/h

0 C145 C

AR tank82.5 t/h 136 C

80 C STM 317 C4.5 t/h

4151BQf=15.2η=89.6%

E-41611.0 Gcal/h

LP Steam

E-415111.2 Gcal/h

E-41522.9 Gcal/h

192 C

237 C

311 C

320 C

139 C192 C

165 C

94.4 t/hHVGO to U300&4300 and RCC

E-41534.4 Gcal/h

E-41549.5 Gcal/h

346 C

389 C

94.6 t/h

80 t/h

291 C

LP Steam

13.5 t/hSlop Wax to RCC

122.3 t/hVR to VB

366 C

288 C

245 C

173 LP Steam5.3 Gcal/h

Quench7.6 t/h

Quench7.6 t/h

E-4163

E-41621.8 Gcal/h

LP Steam

4152BQf=4.2η=77.4%

LP Steam2.3 t/h

1.7 m3/h

346 C

0 m3/h

0.4 m3/h

1.3 m3/h

28.6 m3/h

264 C

172 C

E-41650.8 Gcal/h

56.7 mmHg

78 C

181 C

10.5 m3/h

62 C

60.7 m3/h47 C

LVGO8 t/h to HDS-1/214 t/h to HDS-3

Vacuum System

MP Steam5.8 t/h

Vacuum Column4151 E

E-4159 4.2 Gcal/hE-4164

1.8 Gcal/h

160 C

KPI

F.F.

O2

Stm

Spl

Flow

Energy Metric Monitoring & Reporting > Defining energy metrics in itself is not enough

– Need to be implemented and then acted upon

23 October 2012 26

KBC can develop a customised system or work with third-party software






> Q & A


Client Review

> Profit Improvement Program in 2000 – Focus on non investment

opportunities yield & energy > Strategic Energy Review in 2005

– Focus on energy efficiency improvement projects

> Utility System Optimiser in 2007 – On-line optimisation of utility system

> Metric Identification study in 2009 – Identify appropriate energy metrics to

monitor

23 October 2012 28

Results Achieved: • PIP identified operational energy

savings worth 2.7% • SER identified projects (with payback

< 4years) worth 11.9% • Utility optimiser resulted in savings

up to 4% based on previous operation

• Improved energy metrics monitoring saved 1%

Conversion Refinery, 100KBPD, 2nd Quartile Energy Efficiency Performance

Net impact of KBC studies: EII reduced by up to 20%, client now a solid first quartile performer


Client Review

23 October 2012 29

SER Completed

in 2005 Steam Optimiser on line in

2008 Process Metrics

implemented in 2009

SER Projects Installed

KBC Best Technology

Energy Index


Summary of typical savings

Typical Savings Savings identified as % of total energy cost

Savings realised in stand-alone implementation

Best Practices 3 2 Projects 6 4 Optimiser 3 2 Energy Metric Tracker 3 2 TOTAL 15% 10%

23 October 2012 30

• KBC’s ENgage programme is designed to capture and sustain all energy improvement potential

• Typical savings 10-15% reduction in energy costs Sustained and improved upon in the longer term

• Less tangible elements ensure full potential is achieved and sustained Organisational

aspects Energy tools Training and

mentoring






> Q & A


Summary > ENgage combines all elements of energy management to

deliver a best practice EMS > Tailor made to meet site requirements

– Energy focused organisation – RoadMap of improvement projects and initiatives – Optimisation tools for operational optimisation and planning – Monitoring tools – Design tools – Training and mentoring – Working procedures for delivering best practice energy management

> Combining all elements can achieve and sustain savings of up to 15% of site energy bills






> Q & A


A Question and Quick Survey

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Please send any further questions and feedback to: [email protected]

mailto:[email protected]�

Closing > Contact: Allan Rudman, Vice President Energy Services,

[email protected] > Questions? > Future webinar topics:

– Market conditions – Asset optimisation – Investment support – Sustainable workforce development

> We welcome suggestions for future topics – please email [email protected] > Thank you for joining us!


