technology provider and energy system change - innovation

Technology provider and energy system change - Innovation and business opportunities

Tuula Ruokonen

Director, Digital Services Solutions

Valmet Technologies Oy

Energy Forum 3.10.2019

Aalto University

Contents

Valmet in brief

Selected process innovations and customer references

Dialogue with Data: New data driven business opportunities

Examples of Industrial Internet applications

1

2

3

4

5

Customer needs drive our innovation process

ValmetLeading process technologies,

automation and services for the pulp,

paper and energy industries

From cloth making to high-tech processes

Progress built on 220 years of industrial history

7 October 2019 © Valmet 4

2015Metso

Process

Automation

Systems

to Valmet

1951Valmet

1968–1996Several M&As:

1986 KMW

1987 Wärtsilä paper

finishing machinery

1992 Tampella

Papertech

1999Metso created through

merger of Valmet and

Rauma

Acquisitions2000 Beloit Technology

2006

Kvaerner Pulping

Kvaerner Power

2009 Tamfelt

End of 2013Demerger to

Valmet and

Metso

1797 Tampereen

Verkatehdas

1841 Götaverken

1856 Tampella

1858 Beloit

1860 KMW

1868 Sunds Defibrator

1942Rauma-

Raahe

2019Valmet

acquires

GL&V

Key figures in 2018


Orders received by business lineOrders received

EUR 3,722 million

Net sales

EUR 3,325 million

Comparable EBITA

EUR 257 million

Comparable EBITA margin

7.7%

Employees (on Dec 31, 2018)

12,528

35%

9%27%

29%

Services

Automation

Pulp and Energy

Paper

20%

13%

43%

14%

10%

North America

South America

EMEA

China

Asia-Pacific

Orders received by area

360° approach to sustainability

Acknowledged leader in sustainability


• In Dow Jones Sustainability

Index for the fifth consecutive

year

• Received Bronze Class 2019

Sustainability Award

• Achieved A rating in CDP’s

climate program in 2018

• In Ethibel Sustainability Index

Excellence Europe

Corporate

citizenship

Sustainable

supply chain

We are a trusted partner

and respected corporate

citizen

We develop

sustainable supply

chain practices

People and

performance

Sustainable

solutions

We are a responsible

employer and

promote diversity

We develop and provide

solutions that support

sustainability

We protect the

safety of our people

and partners and

minimize our

environmental

impact

Health,

safety and

environment360°


16research and

development centers*

EUR 66 million

R&D spendingin 2018

Significant, customer focused research and development work

1,300Protected inventions

*Without GL&V acquisition

Customer needs drive our innovation process

Megatrends – impacting our business environment

Climate change, environmental

awareness and resource scarcity drive

the need to improve resource efficiency

and lower emissions

Resource efficient and clean world Digitalization and new technologies Aware, urban and global customer

Digitalization, automatization and new

high impact technologies drive efficiency

and new business models

Urbanization, increasing living standards,

changing demographics, and

globalization drive changes in consumer

behavior


7 October 2019

© Valmet

10

Market prices Electricity prices

Carbon allowance prices

Source: Bloomberg Terminal 05.09.2019

Fortum and the City of Espoo have committed to carbon-neutral

district heating in the district heating network operating in the

Espoo, Kauniainen and Kirkkonummi regions in the 2020s.

The development work is being accelerated with a new intermediate

goal to discontinue the use of coal in 2025. The accelerated project

for carbon-neutrality in the 2020s is called Espoo Clean Heat.

First of the two coal-fired units will be decommissioned in summer 2020. To replace the remaining coal

production, Fortum is pursuing new solutions - from utilising the waste heat of data centres, wastewater and

industry to electric heat pumps, geothermal, smart demand-response solutions, and bioenergy.

Fortum and the City of Espoo have already taken significant steps to replace coal with carbon-neutral

solutions: the new Kivenlahti bioheating plant will come on stream in summer 2020, the Otaniemi geothermal

plant is expected to be commissioned late 2020, and the new heat pump unit utilising waste heat from

wastewater will start its operations at the Suomenoja power plant in 2021. With these actions, Espoo's district

heating production will achieve 50% carbon neutrality in 2022. Discontinuing the use of coal in 2025 will raise

the share of carbon-neutral production to about 85%.

24.9.2019: Fortum to discontinue the coal use in Espoo in 2025 – Espoo Clean Heat project to make district heating carbon-neutral


Biomass to Energy, Waste to Energy and Multifuel solutions

– Fuel handling systems

– Boiler islands, modularized power plants and heating plants

– Air pollution control systems

Products and Technologies

– Circulating fluidized bed boilers (CYMIC) and Bubbling fluidized bed boilers (HYBEX)

– Biomass and waste gasification

– Oil and gas boilers, waste heat recovery boilers

Rebuilds and conversions

– BFB conversions, capacity increases and lower emission levels

Services

Facts• Solutions for demanding fuels: biomass, waste

and multifuel

• Multifuel capabilities

• Wide capacity range

• From-Fuel-to-Stack solutions

• Large installed base

Results• High fuel flexibility gives economic advantage and

security

• Replacement of fossil fuels

• Reducing CO2 emissions economically

• Minimum emissions


Comprehensive offering for energy customers

Dry, semidry and wet flue gas cleaning processes for removal of

particular and gaseous emissions

Condensing scrubbers and heat exchangers for recovering heat

from flue gas

SNCR and SCR technology for NOx reduction

Odorous gas treatment and chemical balance control systems for

pulp mills processes

Scrubbers for marine exhaust gas cleaning

Facts• Complete flue gas cleaning and heat recovery

systems

• Odor and mill balance control for pulp mills

• 500 air quality control references

Results• Minimum emissions

• Reliable and proven technology solutions

• Increased plant efficiency

• Fuel savings


Extensive offering of air emission control systems

CFB gasification technologies for biomass and waste gasification

Pyrolysis solutions for bio-oil production

LignoBoost system for extracting lignin from kraft black liquor

Solutions for prehydrolysis of biomass to sugars and lignin for

further refining to fuels or chemicals

Complete production lines for steam exploded pellets, black pellets,

and revamps of existing white pellet plants

Facts Commercial scale gasification of biomass and waste since

2011

First demonstration scale bio-oil pilot production plant in operation in 2013

World’s first commercial lignin extraction installation in operation since 2013

Several prehydrolysis pilot scale deliveries. First demonstration scale plant in operation in 2012.

First demonstration scale black pellet plant sold in 2018

Results New revenue streams

Reduction of emissions

From fossil fuels to utilization of sorted waste and biomass

Alternative renewable fuels


New biomass conversion technologies

Ma

rke

t n

ee

d

Technical challenges in fuel combustion

Wood biomass

Northern wood

Pulp&Paper sludges

Wood pellets

Agro biomass

Straw

Sunflower hulls

Corn Stover

Miscanthus

Fast growing wood

Willow

Eucalyptus

Recycled fuels

MSW

Recycled wood

1 5 10

Fossil

Hard coal

Lignite

Petroleum coke

Technical challenge

Ma

rke

t in

tere

st

Fuel Cl-content0.05% 0.1% 1.0%0.01%

15

Energy and biotechnology R&D Center

Tampere

Complete heating plant for versatile research and development purposes

Focusing on fluidized bed boilers, pyrolysis and environmental systems

Facilities include fluidized bed boiler, pyrolysis oil pilot, tube reactors, cold

models, equipment for full-scale field testing and measurements

Key achievements:

– CYMIC and HYBEX fluidized bed boiler development and combustibility knowledge

– New technology development: Pyrolysis process for bio oil production

– Development of bag house filter and electrostatic precipitator key components

10,000 hours of pilot operation executed7 October 2019 © Valmet 16

Long-term R&D to improve CYMIC boiler’s competitiveness

May 1990

First test-runs in

R&D Center

June 1990

R&D Center

inaugurated

1985First membrane

cyclone

1995-2006

Loop seal superheater

Sep 2014

80 CYMIC boilers

delivered

7 October 2019

2000’s

Multifuel capability

Emission reduction and

corrosion knowledge

Full scale test runs

1999-2015

Cyclone development

Cold model testing

2015

Agro-Coal-Waste

SO2 reduction

© Valmet 17

Long-term R&D co-operation with partners produces results – Pyrolysis as an example

1990’s

First R&D projects

including Finnish

companies

2007Technology

development

consortium formed

(Valmet, UPM, VTT)

Tekes support granted

Cold model tests start

at Valmet R&D Center

in Tampere

2009

Fortum joins

development

consortium

Bio-oil pilot tests at

Valmet R&D Center

starts

2010

Pyrolysis oil

combustion tests in 1

MW scale

Start of concept

planning for a

commercial demo

plant

2012

Fortum and Valmet

sign contract on

Joensuu plant

2013 -

R&D projects

on pyrolysis oil

upgrading

on-going

2013Commissioning and

commercial operation

of Joensuu plant

© Valmet

2014 -

LignoCat-consortium is

developing technology to

produce advanced

biomass based fuels

2015

Joensuu plant

handed over

to Fortum

1980’s

First Finnish

R&D laboratory

studies on

pyrolysis (VTT)

Press release April 10, 2018

Valmet, Fortum and Preem

co-operate in the

development of forest

based advanced biofuels

7 October 201918

Dialogue with dataValmet Industrial Internet

See in Youtube: https://www.youtube.com/watch?v=4y9VhCL6WPI&t=9s

and https://www.youtube.com/watch?v=3u9kO0JBIp8

https://www.youtube.com/watch?v=4y9VhCL6WPI&t=9s

https://www.youtube.com/watch?v=3u9kO0JBIp8

Valmet has a long history in the digitalization of process industries


1970Elmatic-100

system, electronic

instrumentation

1990’sPaperIQ, QCS

metsoDNA, Dynamic Network

of Applications

1980’sDamatic, the first Distributed Control

System (DCS)

Sensodec Condition Monitoring System

Damatic XD, modular second generation

DCS

2000’sMultivariable Model

Predictive Controls (MPC)

24/7 ProCenter for DCS/QCS

PaperIQ Select

2010’sMetso PQV

web inspection system

2015Valmet DNA

2015Valmet IQ

1960The Airmatic

a pneumatic

measurement and

control system

2017Augmented and virtual

reality applications

Valmet

Performance

Centers

Distributing

controls &

gathering

performance data

Increasing

availability

Increasing

productivity

through

information

services

Embedded

intelligence &

advanced

information

Advantages to

customer

industries:

Benchmarking and

best practice

sharing capability

A meaningful dialogue with data brings tangible results

Results

Company level data

Mill and plant level data

Process and equipment data

Valmet Industrial Internet

Dialogue with data:

• Combining process and business data from

different mill or plant systems

• Leveraging advanced analytics and Valmet’s

know-how to create new data driven

applications

• Providing applications for operator assistance

and new set points for the automation system

Improved product qualityReduced downtime and

unplanned stops

Reduced raw material and

energy cost7 October 2019 © Valmet 21

Valmet Industrial InternetExamples of Industrial Internet offering for Energy producers

Turun Seudun Energiantuotanto, Naantali, FinlandInvestment enables use of renewable fuels

Benefits

• Large-scale multifuel plant is designed to generate power by utilizing

bio fuels at a very high efficiency ratio

• Meets the IEA emissions directive

• Automation to secure the plant’s availability

• The total uniform solution without integration costs

• Single point of responsibility for design, implementation, start-up and

tests

”We are convinced that Valmet's total solution that features both automation

and boiler technology from the same supplier works best for us," says

Tapani Bastman, Managing Director, Turun Seudun Energiantuotanto.

The case - customer

• Turun Seudun Energiantuotanto Oy (TSE)

• TSE is owned by Turku Energy, Turku's

neighboring cities Raisio, Kaarina, and

Naantali, and Fortum Power and Heat

• Combined heat and power (CHP) plant

produces district heat and electricity for

the area of Turku and process steam for

the needs of nearby companies.

Driver

• To replace an old coal power plant that

has been operating for 50 years

• To increase renewable fuels in power

generation

• Enables to fulfil the new IEA emissions

directive

Scope

• Valmet CYMIC boiler based on circulating

fluidized bed (CFB, Circulating Fluidized

Bed boiler technology)

• Flue gas cleaning equipment

• Flue gas condensing equipment

• Asphaltene combustion systems

• Valmet DNA automation and safety

interlocking systems

• Valmet Training Simulators and Valmet

Online Learning courses


Function specific service solutions sold to TSE Naantali

NOx emission optimization

Predictive reliability diagnostics

• NOx emission optimization application

– Guides operator to choose the most economic way to lower NOx emissions

• Predictive reliability diagnostics application

– Enables proactive condition monitoring of plant equipment, based on process

data

– Currently monitors 14 pieces of equipment (valves, pumps, motors, fans)

Delivery includes:

• NOx emission optimization application

• Predictive reliability diagnostics application

• Operations Panel: Real-time performance status

• Application upkeep by Performance Center

Benefits:

• Meeting emission limits cost effectively

• Focused maintenance based on real-time equipment condition


Naantali Raisio

KaarinaTurku

Valmet DNA in Turun Seudun EnergiantuotantoEfficient data flow thru power plant procesess

7 October 2019© Valmet 25

PRODUCTION

OPTIMIZATION

FUEL MANAGEMENT

FUEL PROCESS

MANAGEMENT PROCESS

MONITORING

AND REPORTING

FUEL

LOGISTICS

Driver

terminals

- Naantali

- Oriketo

Transport companies

Fuel suppliers

Drivers

Steam

customers

FORECASTS

- Coal and CO2 price

- Electricity

(also realized price)

- Weather

ELECTRICITY

MEASUREMENTS

MAINTENANCE

MANAGEMENT

Valmet DNA automation

DISTRICT

HEATING

CONTROLS

NAANTALI POWER PLANT NA1,2,3&4

Biofuel processes

FORTUMElectricity trading and

purchasing

TURKU ENERGIA- Electricity trading and

purchasing

- District heat purchasing

Valmet DNA project scope

District heat network

Heat pump and DH

plans

Training simulator

Results for Kuopion Energia Oy, CHP plant

Valmet DNA Asset Monitoring

7 October 2019 © Valmet

ResultsIncreased maximum steam

production by

5%

Share of biomass used as

fuel

100%CHP plant, Haapaniemi 3 power plant

- Two boilers in use, three turbines

- Main fuels: locally produced peat & wood residues

- 2016 performance agreement goal was raise steam production from

62 kg/s to 65 kg/s.

Before control optimization boiler design value was not easy to gain. In

co-operation with Valmet target 65 kg/s was gained and even 66 kg/s has

been done with good fuel mix which means that savings will double in

optimum conditions.

Samuli Räisänen

Operations Manager

Performance Limits

Design Target

Plant Manager Dashboard

An alarm is activated based on detected process deviations. Task-specified

dashboards are then used to find the limiting factor in machinery in real

time. Specified machine is analyzed based on collected data.

26

General impact of availability for a CFB boiler

Boiler inspection management system


Results

Cost savings are created through

• Availability and risk management based on all relevant data

• A systematic approach to evaluating boiler tubes’ thickness

One tube leakage results in

1.5%availability decrease.

Avoiding unplanned shutdown for

corrective maintenance due to tube

leakages saves operating costs in the

same.

Avoiding unplanned

shutdown for corrective

maintenance due to tube

leakages saves operating

costs in the same.

- Quality losses

- Customer satisfaction

- Higher energy cost

Knowledge about individual tube’s wall thickness allows

predicting its lifetime and proactive maintenance actions.

27

Boiler inspection management system with 3D visualization

Easy to use 3D model for best illustration of results

Measurement results visualized in a 3D model of your

boiler

Walk inside boiler (Virtual Reality experience or on your

own laptop)

Trends of tube thickness measurements

Illustrative colors to warn for critical thicknesses


Energy optimization with remote support


for paper and board machine



Service description

– Process optimization both remotely and on-site to save energy

– An operator application integrated to the machine control system

– Energy usage shown in real time and compared to best achieved

performance

– Grade-specific energy consumption and history reports

– Continuous monitoring and reporting by Valmet Performance Center

experts

Benefits

– Increased awareness and understanding of energy used in the process

– Improvement opportunities can be identified

– Energy savings in electricity and steam

– Significant cost savings

30

Results for a containerboard customer (name confidential)



Key facts of the containerboard machine

• Grade: recycled fluting

• Basis weight 90–150 g/m2

• Design speed 1,200 m/min

• Trim width 6,660 mm

• Start-up 2014

Results

15%energy savings

in electricity

16%energy savings

in steam

3M€/a

value

Corrugating Medium 105 g/m2Corrugating Medium 105 g/m2

Oct 2014 Feb 2015 Oct 2014 Feb 2015

Ste

am

Co

nsu

mp

tio

n [ t/t

]

Ele

ctr

icity C

onsu

mp

tio

n [ k

Wh

/t]

280

260

240

220

200

180

160

1.8

1.6

1.4

1.2

1

Electricity consumption reduction

from 235 kWh/t to 200 kWh/t

Steam consumption reduction

from 1.55 t/t to 1.3 t/t

31

Valmet Performance CenterEasy access to the expertise you need

© Valmet 32

Valmet

Performance Center

Local

Valmet

experts

Customer

experts

Global

equipment fleet

Valmet expert

network

On-demand expert supportRemote monitoring

and optimizationAnalytics as a service

TissueBoard & paperEnergy AutomationPulp

Automation

7 October 2019

Valmet Industrial Internet platform components Based on certified and secure world-leading technologies


Valmet DNA

Valmet’s cloud environment

Database

Valmet Customer Portal

Valmet Performance Center

Security in the core of Valmet Industrial Internet


Valmet’s Industrial Internet

solutions are based on

certified and world leading

technologies

Secure and productized

connectivity and data

management both in transit

and cloud environment

Role-based access control

Secure authentication for

both customers and Valmet

users

Safe, secured and

protected data

Authenticated users and

access control

Secure and certified

platform

34

Key elements of Valmet Industrial Internet

© Valmet 7 October 2019

Valmet Performance CenterIndustrial Internet applications Valmet Customer Portal

Provides remote support, monitoring and data

analysis and access to Valmet’s expert network

From analytical applications for reliability and

performance to Advanced Process Controls,

information management and process simulators

A digital, personalized collaboration space

between you and Valmet

Solution ecosystem

Brings leading industry players and innovative

start-ups together to co-create new value-adding

data driven servicesA solid data source for Industrial Internet solutions

Intelligent machines and automation

35

technology provider and energy system change - innovation

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