(3) Overview of Energy Auditing in Process Industry …...Overview of Energy Auditing in Process Industry – The Indian Experience By Dr. G C Datta Roy DSCL ENERGY SERVICES Co Ltd

Overview of Energy Auditing in Process Industry – The Indian Experience By

Dr. G C Datta RoyDSCL ENERGY SERVICES Co Ltd2nd Floor, Kanchenjunga Building18, Barakhamba RoadNew Delhi – 110001India+91 11 [email protected]

Presentation StructureAbout DSCL Energy ServicesChemical Industry -OverviewEnergy CostEnergy Efficiency MarketApproach to EE DiagnosticsConclusion

DSCL : Business Portfolio

$750 MN Conglomerate

•Fertiliser

•Agri-Marketing

•Sugar

MANUFACTURING PLATFORM

Agri-Retail

Haryali Kisan Bazaar

ENERGY SERVICES

1999

SERVICE PLATFORM

AGRI BUSINESS PLASTICS CHEMICALS

Commodity

Speciality

Commodity

Speciality/ Value Added

Power (>230 MW) ( RE >70 MW) (Export >25 MW)

Fenesta

U PVC Window system

DSCL Energy Services-Service Offerings

Service Offerings

Energy Efficiency

Renewable Energy

Fee Based Engineering and Project Management

Engg. & Project Mgmtunder SharedSavings

(EPSS)

Engineering, Procurement & Construction (EPC)

Perf. Measurement& Verification (PMV)

Design improvement

Energy Diagnostic Study (Audit)

Feasibility Study

Owner/ Lender Engg.Services

Knowledge Management

Energy Strategy & Management

Project Management Portfolio Consulting Portfolio

Our Credo:Our Credo:“Development of Partnership for “Development of Partnership for

Progress Together byProgress Together byDelivery of Tangible & Delivery of Tangible &

Measurable EnergyMeasurable EnergyPerformances”Performances”

Recipient of

BEST ENERGY SERVICES COMPANY AWARD

For four Years

(2001- 02, 02-03 , 03-04 & 05-06)

From PCRA, MoP&NG

DSCL ES-Business Portfolio

Energy Efficiency & ESCO Performance Contracts Green Building Commissioning ServicesRenewable EnergyDistributed Energy SystemCDMInternational Consulting-Alternate Energy Development

Process Industry - OverviewOne of the fastest growing sectors of Indian EconomyContributes to 13 % of GDPThe industry is fragmented and dispersed –multi product and multi faceted

Process Industry – Overview contd..

Broad market segmentsBasic Inorganic and Organic Chemical Drugs & PharmaceuticalsPesticides & AgrochemicalsPetrochemicalsFertilisersDyes & PigmentsFine & Speciality Chemicals

Energy Cost Ranges- Select Industries

Based on CMIE database

Energy Prices-Trend

Rs per ton of coalRs Per kL of fuel oil

Continued escalation of energy price seems to be economic reality.

Only way to reduce cost is by improving energy efficiency

0

5000

10000

15000

20000

Rs/

Uni

t

1975 1980 1985 1990 1995 2002 2007

Price Trends in Coal and Fuel Oil

Energy CostEnergy Cost as % of Total Production Cost

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Energy Cost as % of Total Production Cost

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Petrochemicals

Other Organic Chemicals

Average – 9%20% of the plants have their energy cost in the range of 10% to 20%

Average – 9%38% of the plants have their energy cost in the range of 10% to 30%

Energy Cost as % of Production Cost

Energy Cost – contd..

Energy Cost as % of Total Production Cost

0%

10%

20%

30%

40%

50%

60%

70%Caustic SodaAverage - 44%45% of the plants have their energy cost falling in the range of 40% to 60% Nitrogenous Fertilisers

Average - 22%50 % of the plants have their energy cost falling in the range of 20% to 30%

Other FertilisersAverage - 6%35% of the plants have their energy cost falling in the range of 5% to 15%

Summarising

Nitrogenous Fertilisers 13% to 37%Refinery 1% to 8%Caustic Soda 14% to 62%Petrochemicals 1% to 48%Drugs & Pharmaceuticals 1% to 31%Other Organic Chemicals 1% to 40%Other Fertilisers 1% to 20%

Market Segment Variation% Energy Cost

Many reasons for wide variation nature of finished product,

price of input energy,process technology,

equipment technologyoperation & maintenance practices.

It is therefore, a significant challenge to estimate the EE market based on benchmark analysis.

An alternate methodology has been developed for the same

EE Investment Market-Process Industries

EE – Projects TypeGeneric Energy Efficiency Projects

Water & Process pumpingFans, Blowers, CompressorsPiping Boiler & Turbine efficiency improvement Efficienct Lighting Rationalising distribution systemMetering and accountingFuel substitution

Process Specific Energy Efficiency Projects

Process upgradationProcess synthesis/integrationSynthesis of control systemWaste heat recovery/HEN

Major equipment replacementCogeneration/CHPAutomation Load optimization

Sample Projects (Generic)-DSCLES Audit

SN Project Savings, mn Rs

Investment, mn Rs

1 CT pump Eff Improvement 7.78 2.80 2 Blowers 1.80 0.10 3 Compressor System 1.30 0.80 4 Spent wash pumping system 0.52 0.35 5 Lighting 2.00 1.60 6 Raw Water Pumps 0.90 0.40 7 Coal based thermic fluid heater 7.00 14.00 8 Electrical Distribution 0.03 0.05 9 Boiler Excess air control 1.20 0.90

10 Conversion of PRDS energy to power 5.50 5.80 11 Boiler Auxiliaries 1.40 1.81 12 CT Fans 1.50 2.00

Simple payback ranges from few days to 2 years

Sample Projects (Process)SN Project Industry Savings,

mn RsInvestment,

mn Rs1 Technology Upgradation - Diaphragm to Membrane Caustic Soda 34.25 143.86 2 Use of Hot caustic lye as feed Caustic Soda 0.17 0.12 3 Conversion of mesh type to strip type anodes Caustic Soda 9.50 21.45 4 Pre-concentrator & pre-decomposer Nitrogenous Fert. 126.00 439.60 5 High performance trays Nitrogenous Fert. 42.00 58.44 6 Retrofits upgradation of measuring & control instruments Petrochemicals 9.84 28.40

Payback ranges from a year to about 5 years

Energy Efficiency Improvement - Market Potential

Source : ADB EETA : 3885 – IND

EE Investments,

mn Rs

Savings, mn Rs

EE Investments,

mn Rs

Savings, mn Rs

Nitrogenous fertilisers 2,930.00 1,040.00 4,485.00 1,515.00 Refinery 3,720.00 970.00 4,360.00 1,130.00 Caustic soda 630.00 920.00 1,390.00 365.00 Petro Chemicals 4,930.00 1,930.00 7,605.00 3,110.00 Drugs & pharmaceuticals 220.00 660.00 115.00 200.00 Other Organic Chemicals 400.00 640.00 NA NAOther Fertilisers 1,125.00 400.00 1,720.00 580.00

Market Segments

Generic EE Projects Process EE Projects

Energy Saving Potential:850 MW

Energy Efficiency Improvement - Market Attractiveness

Other Fertilisers

Nitrogenous fertilisers

Refinery

Caustic soda

Drugs & pharmaceuticals

Petro Chemicals

Other Organic Chemicals

Financial Attractiveness

Mar

ket A

ttrac

tiven

ess

L M H

H

M

L

Petro Chemicals

Other Fertilisers

Nitrogenous fertilisers

RefineryCaustic soda

Drugs & pharmaceuticals

Financial Attractiveness

Mar

ket A

ttrac

tiven

ess

L M H

H

M

L

Generic Energy Efficiency Projects

Process Specific Energy Efficiency Projects

Energy Audit – Different Approaches

Traditional Energy Audit – Technology Driven & Event OrientationTarget Cost Reduction – Business Process Driven & Market OrientationBenchmark – Goal & Strategic OrientationFundamental – Innovation & Leadership

Case example-traditional audit

10242436--10

036--100

Cooling tower layout optimization9.

105.3

5.36.3--196.3--19Bigger high efficient

raw Water supply pumps to RO Plant

12

8101016--4416--44Chilled water

distribution system10

121212123745-123745-Condensate recovery

schemes11

125.4

5.45.3--195.3--19Main CT Fans - Power

Consumption Optimization

14

12

6.25

6.256.25520-6.25520-

Flash steam recovery from the flash tank in

the Dextrose Plant

13

Months

Possible

Most Likely

Rs. Lacs

CM/day

Kg/hr

kW

Rs. Lacs

CM/day

Kg/hr

kW

Most Likely SavingsMost Likely Savings PaybPaybackack

Investment Investment (Rs. Lacs)(Rs. Lacs)

Possible SavingsPossible Savings

List of Energy Saving List of Energy Saving MeasuresMeasures

Measures of Greater than 6 but less than 12 months Payback

Pros & Cons-Traditional Audit

Sub-optimal assessment of savings potentialGenerally not linked

to the company’s P&L accountDifficult to attract top

management attention

Good for the auditors-possible to accurately assess level of effortsQuick identification of

low hanging fruitsLow cost

ConsPros

Investment Oriented: (ESP with> 1 yr PB)

Rs. 25.88 Mn/Yr (7%)Investment:Rs 47.07 Mn.

Modifications Oriented:(ESP with< 1 yr PB)

Rs 36.29 Mn/Yr (9.8%)Investment: Rs 10.85 Mn

Operational Improvement

(ESP withNil Investment)

Rs 8.65 Mn/Yr (2.33%)

Rs.

370

Mn/

YrR

s.37

0 M

n/Yr

Rs.

290

.4 M

n/Yr

Rs.

290

.4 M

n/Yr

Rs.

70.4

Mn/

YrR

s.70

.4 M

n/Yr

(19

%)

(19

%)

6.60TS Lighting

Mn Rs/YrAreas

1.56Material handling

0. 49C & C Voltage reduction

2.95Evaporator

0.63Material handling

7.48Process chemicals

6.63Other machines

11.93Pumping system efficiency

1.29Cogeneration

5.38Fans & compressors

1.91Lighting

2.21Caustic & Chlorine system

10.89Utility

10.67Cogeneration

PresentPresentEnergy billEnergy bill

Energy BillEnergy BillAfter ESPAfter ESP

Case example-cost reduction targeted audit

Target-20%

Advanced audit-Pros & Cons

High costComplex investigation

process-Longer time frame-Difficult to pre-assess

audit cost-Difficult to sell to line

managersLimited availability of

qualified & experienced auditorsRestriction from

technology licensors

Maximizing savingsEstablished strong

baseline & M&V methodologyLinkable to P&L

accountEasy to sell to top

management

ConsPros

Continuous PanCondenser

Condenser

Centrifugals

Boiler

Captive consumptionTo Grid

Alternator

Turbine

Condenser

Batch Pan

Spray Pond

Quintuple Effect Evaporator

Evaporators-Vapor Bleeding for juice heating Multiple effect evaporators with vapor cells High efficiency evaporators - falling/rising film

Variable Frequency Drive

Fibrizers Drive

Bagasse Carrier

Cane Conveying System

Fibrizer

Hydraulic Drives - upto 20% lesser power as compared to turbo-drives Bagasse Moisture control/ sensor/ automation from 50-55% to 47-50%Macerator - better imbibation efficiency - reduction of evaporator load (10-20% on fibre)

Cane Conveying Feed Control System

Pan High efficiency vacuum pumps - 20% saving High efficiency water pumps - 30% saving Low water condensor Cascade Pan boilingMechanisation - Pan boiling - continuous pan

Centrifugals:High efficiency centrifugal machines - power saving

Condensers:Recovery and appropriate use ofcondensate Condenser

Hydraulic Drives

Mills

Cogeneration Bagasse drier - reduction in moisture by 4-5%High Efficiency ID Fan High Pressure boilersHigh efficiency turbines

Minimum Energy design-Sugar

Minimum process steam need is about 30%against

current value of over 45%

25

Strategic Encon Plan

AWARENESS

MEASUREMENT

ACCOUNTING

NORMAL AUDIT

MASS BALAN

CE

PROCESS SYN./HEN EXERGY BAL.

HEA

T BA

LAN

CE

0

GAP ANALYSIS

ACTUAL CO

NSU

MPTI O

N

IDENTIFICATION OF LOSSES

THEO

RET

ICAL

NEE

D

MAINTENANCE UPGRADATION

TRAN

SMISSIO

N

EFFICIENCY

UTILISATION EFF./ WASTE HEAT RECOVERY

GEN

ERAT

ION

EFF

ICIE

NCY

CAPITAL PROJECTS

EQU

IPMEN

T UPG

RAD

ATION

INSTRUMENTATION / CONTROL AUTOMATION

PRO

CESS

REV

IEW

RESEARCH &TECHNOLOGY DEVELOPMENTPR

OD

UCT SU

BSTITUTIO

N

LONG TERM ENON. PLAN

PILO

T PR

OJE

CT

Sour

ce :

Dr G

C D

atta

Roy

, PhD

The

ses

Designing the audit process

Utility EnergySavings

Co-generationSystem /

Energy System Integration

Process EnergySavings

IndustryTechnology

R & D

Pumping System, Fans,Boilers, HVAC, Steam SystemElectrical System, Compressors

Process synthesisSynthesis of HENSynthesis of control system

Innovation

Long term cost reduction goal

Approach to match financial & organizational capacity

Macro Approach – Implementation of Energy Cost Reduction Projects

•Assessment of measurement system •Validation of benchmark audit

Walk Through

Audit

Benchmark Audit

Investment Audit/Minen design

Project Development

Project Implement

-ation

Operation &

Maint.

Audit based on client's data

•Data Collection & Analysis •Macro assessment of Savings Potential •Investment need assessment •Project Selection for investment grade evaluation

Investment Grade Evaluation•Concept Design •Basic Engineering •Technical constraint feasibility analysis •Cost-benefit analysis •Project Prioritization•Management Presentation

•Baseline Establishment•Measurement & Verification System•Detailed Project Report* •Financial Advisory Service*•Procurement Assistance•Project Management •Measurement & Verification•Management Information System•Training* Service provided if project-financing assistance is required

•Sustenance Support•Operation & Maintenance

ConclusionProcess industry is energy intensive and energy cost reduction would remain one of the key strategy for global competitivenessSuch cost reduction has to be achieved primarily by energy efficiency improvementDifferent approaches for audit-project & technology based to strategic cost driven processApproach to match the present capacity of the organization to implementIt is important to link audit findings to the implementation-baseline & M&V approach