Efficiency improvement and cost optimization in Fertiliser Plant- Case Study K M Tandon and Ashwani Kaul 1 FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector – 27 th Feb. – 1 st March, 2012 Efficiency Improvement and Cost Optimization in Fertiliser Plant- A Case Study Shriram Fertilisers & Chemicals : Kota ( A Unit of DCM Shriram Consolidated Ltd.) FAI Programme: 28 th Feb, 2012 2 Introduction Need for efficiency improvement and cost optimization Approach adopted at SFC Kota Modifications / up-gradations implemented Feedstock changeover to Natural Gas Conclusion Contents
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Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
1
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
Efficiency Improvement and Cost Optimization in Fertiliser Plant- A Case Study
Shriram Fertilisers & Chemicals : Kota( A Unit of DCM Shriram Consolidated Ltd.)
FAI Programme: 28th Feb, 2012
2
� Introduction
� Need for efficiency improvement and cost optimization
� Approach adopted at SFC Kota
� Modifications / up-gradations implemented
� Feedstock changeover to Natural Gas
� Conclusion
Contents
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
2
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
3
Introduction
Shriram Fertilisers & Chemicals
Shriram Vinyl Chemicals
Shriram Cement Works
Fenesta Building Systems
Shriram Polytech
Kota Complex
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
3
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
5
475 km from Delhi on the main western broad gauge line line from Delhi to Mumbai
235 km from Jaipur on the NH 12From Jaipur to Jabalpur
Location
Manufacturing Facilities
PLANTS / PRODUCTS UNIT CURRENT PRODUCTION LEVELS
Power MW 133
Fertiliser - Ammonia
- Urea
TPD
,,
700
1200
Chlor Alkali - Caustic Soda
- Chlorine Liquefaction
- HCl
- SBP
TPD
,,
,,
,,
325
180
175
35
Plastics - Calcium Carbide
- PVC Resin
TPD
,,
340
200
Cement TPD 1200
Shriram Polytech - PVC Compounds TPD 60
Fenesta - Window and Door profiles TPA 3000
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
4
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
Fertiliser Plant
Details
Commissioned in 1969 with capacity of 450 TPD Ammonia / 700 TPD Urea
Expanded in 1974 to 600 TPD Ammonia / 1000 TPD Urea
� Ammonia Plant based on Haldor Topsoe’s steam reforming process
� Urea plant based on Stamicarbon’s total recycle process with crystallization route for urea finishing
� Ammonia plant modified to use Natural gas in 2006
� Plant running fully on NG since May,2009
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
5
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
9
Need for
Efficiency Improvement
and Cost Optimization
Bath - tub curve approach to plant lifecycle
Need
No. of Years in operation
No
. o
f B
reakd
ow
ns
Initial Defects
Wear & tear
5 10 15 20
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
6
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
11No. of Years in operation
No
. o
f B
reakd
ow
ns
5 10 15 20 25 30 35
Challenge is to negate the impact of efficiency loss
and equipment wear due to aging
Need
12
Approach adopted
at SFC Kota
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
7
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
13
� Increasing capacity utilization
� Re-look into original design of equipment
Approach adopted at SFC KotaApproach adopted at SFC Kota
� Steam conservation
� Water conservation
� Benfield system chemicals
� Feedstock conservation and substitution
14
• Identification of process bottlenecks
� Increasing capacity utilization
• Incorporation of available retrofits
• Systematic equipment replacement plan
• Reduction in shutdown frequency and duration
� Re-looking into original design of equipment
• Modifications in equipment
• Redesign of boilers and exchangers
• Simplification of piping and replacement to decrease ∆P
• Change of packings
Approach adopted at SFC Kota
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
8
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
15
� Feedstock conservation and substitution
• Heat recovery from flue gases from furnaces
• Packing gas recovery
Approach adopted at SFC Kota
• Better leakage class of vent valves
• Use of steam for heating instead of Naphtha / Natural Gas
� Steam conservation
• Use of steam at right temperature
• Steam Trap management
• Online leak sealing
• Reuse and recycle of water
• Cooling water treatment
� Water conservation
� Benfield system chemicals
• Re-oxidation cooler for V2O5
• Better house keeping and maintenance practices.
Approach adopted at SFC Kota
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
9
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
� Cost optimization
• Import substitution
• Local vendor development
• In house NDT
• Vibration monitoring
• Reclamation and reuse of old parts
• Replacements on condition monitoring results
� Reclamation of Lubricating Oil
� Use of Aspen for process analysis and design
Approach adopted at SFC Kota
18
� Reforming Section
Modifications / upgradations
• Reformer catalyst tubes MOC changed from original HK 40 to Manuarite in 2000. With this ID of tubes increased from 115 mm to 131.6 mm
• A water spray tower was installed in 1980 at the downstream of the waste heat boilers to maintain HTS inlet temperature by adding BFW
• The primary reformer induced draft fan was also replaced with a higher capacity one so that proper excess air of 2.5% O2 could be maintained
• In order to reduce the heat duty of fired preheater upstream of primary reformer, a steam fired heater was installed
• A convection section was added in direct fired preheaters to utilise waste heat from flue gases
• Additional heat recovery from the Reformer convection zone by addition of extra rows of tubes in air and steam coils
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
10
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
19
� Carbon dioxide removal and beyond
• 25 mm Metallic (SS) Pall rings were installed in the top two beds and 38 mm rings were installed in the bottom two beds in place of ceramic rings
• In order to reduce gas velocities at the CO2 Absorber outlet an additional Separator was installed in 1979 itself . This helped in avoiding liquid carryover to the Methanator
• To reduce the temperature of the bottom to top potassium carbonate solution a larger size HPC cooler had to be installed in 1983
• The synthesis gas compressors which are motor driven reciprocating machines posed a bottleneck in achieving full plant loads. The cylinder bores of 1st stage were increased from 289 to 305 mm as there was some margin in the motor. This enabled a capacity increase of 9 %
Modifications / upgradations
20
� Installation of a radial Ammonia Converter basket
• The original TVA Type Axial Flow Ammonia Converter Basket was due for replacement in 1992
• A radial flow converter was installed as replacement of old axial flow basket
• This has made the running of smaller 120 TPD Ammonia Synthesis loop unnecessary
• Since the loop did not have any waste heat boiler, the energy was being wasted to the cooling tower. This could be avoided with the installation of the radial converter
Modifications / upgradations
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
11
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
21
� Period between turnarounds
• Earlier the plant turnarounds were taken on annual basis. However, the IBR later allowed operation of waste heat boilers upto two years.
• With judicious planning of the overhauling of the reciprocating compressors the turnaround are now taken up once in two years.
• This has improved availability of plant
Modifications / upgradations
22
Feed stock conversion
from
Naphtha to Natural Gas
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
12
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
23
� Why change to Natural gas
• Energy cost constitutes about 80% of total cost of production of urea
• After removal of APM from naphtha, its prices touched a very high value of Rs. 55,000/MT
• Gas is a clean fuel as compared to naphtha
• Gas is cheaper as compared to naphtha
• Reduced cost of production leads to improved competitiveness
• Favourable government policy for feedstock changeover
� Reduced subsidy outgo
Conversion to Natural Gas
24
• Replacement of all 252 burners from self aspirating naphtha fired burners to forced draft Natural gas / Naphtha fired burners
• Installation of a Combustion Air preheater
• Installation of a new feed Natural Gas preheater
• Installation of new FD Fan and ID Fan at ground floor
• Installation of fuel NG preheaters
• Replacement of Steam Naphtha Coil and inlet distribution headers for steam naphtha mixture going to the catalyst tubes
• Removal of BFW Coil from convections section of primary reformer furtnace
Conversion to Natural Gas
� Modifications done
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
13
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
25
� Control system upgradation
• 35 year old pneumatic controls required frequent maintenance and were facing obsolescence
• More accurate control helps in better optimization of plant parameters
• Temperature scanner was also error prone and inaccurate
• Plant interlocks were relay based
• Pneumatic controls replaced by latest Digital Control System
• This has enabled
� Centralised Operation Monitoring� Process behaviour analysis� Monitoring of Alarm management
� Process history storage
Conversion to Natural Gas
26
� DCS Chosen is Emerson’s Delta – V system
� Plant safety interlocks have been implemented in integrated Delta - V SIS which is TUV approved system for SIL3 applications.
� Salient features are
� 1100 Nos I/O’s
� Ease of operation
� Trends , process history, alarms available.
� Built on commercially available personal computers as work
station and engineering stations.
� Windows platform
� Proven ethernet communication technology
� Scalable to add more controllers and operating stations as
required
Conversion to Natural Gas
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
14
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
27
� SIL 3 safety system
� Latest Foundation field bus technology foundation field bus has been used for temperature signals and few pressure and flow monitoring requirements.
� Asset management system
� Delta –V AMS suite has been installed for centralised configuration , diagnostics, maintenance and history record for HART and FF field devices.
� Operator interface
� 5 Operating stations with 19” LCD monitors in a control room
� Screens interchangeable in all respects
� Operator can scroll through the entire plant seamlessly.
Conversion to Natural Gas
28
Conclusion
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
15
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
29
Old pneumatic controls replaced by state of the art Digital control System in 2006
Systematic effort to optimise the operation the energy consumption has been reduced significantly
7.3 2 5
7.4 4 7
7.7147.779
7.8 57.8 87.8 5
7.8 1
7.9 7
8 .0 9
8 .28 .15
8 .19
8 .4 3
8 .2 5
8 .3 5
8 .53
8 .3 8
8 .52
9 .0 2
7.3
7.5
7.7
7.9
8.1
8.3
8.5
8.7
8.9
9.1
9.3
91
-92
92
-93
93
-94
94
-95
95
-96
96
-97
97
-98
98
-99
99
-00
00
-01
01
-02
02
-03
03
-04
04
-05
05
-06
06
-07
07
-08
08
-09
09
-10
10
-11
MKCal/MT Urea
Energy performance of the plant
30
Old pneumatic controls replaced by state of the art Digital control System in 2006
Focus on reducing R & M Cost
12.24
13.85
12.312
12.33
14.84
5.25.8
4.7
7.5
5.7
10.7
7.5
10.0
8.3
11.0 10.5
12.911.5
9.7
12.9
13.1
8.0
0
2
4
6
8
10
12
14
16
18
20
88
-89
89
-90
90
-91
91
-92
92
-93
93
-94
94
-95
95
-96
96
-97
97
-98
98
-99
99
-00
00
-01
01
-02
02
-03
03
-04
04
-05
05
-06
06
-07
07
-08
08
-09
09
-10
10
-11
(P
)
Avg. inflation rate during last 7 years 5.18% per year
Growth rate R & M Cost during last 7 years 0.5% per year
R & M Cost contained to below inflation rate – Reduction in real terms
Rs.C
rs/Y
r.
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
16
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
31
Maintaining Plant Health with min. Capex
1.9
1.8
2.813.72
6.158.7
8.1
9.6
2.2
8.4
4.3
18.2
6.0
34.7
6.68.0
6.74.4
1.8
30.4
1.10.92.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
88
-89
89
-90
90
-91
91
-92
92
-93
93
-94
94
-95
95
-96
96
-97
97
-98
98
-99
99
-00
00
-01
01
-02
02
-03
03
-04
04
-05
05
-06
06
-07
07
-08
08
-09
09
-10
10
-11
(P
)
Rs
.Crs
.
Average Capex Rs. 7.8 Cr./Year
32
� First Prize in Safety Performance FAI Annual Seminar for Safety in 2009
Recognition
� 2nd Prize in Energy Conservation in Fertilizer Sector by Bureau of Energy Efficiency ( BEE ) in 2011
� British Safety Council’s Sword of Honor for Safety Performanceat International level for four consecutive years ( 2007 – 2011)
� First Prize in Technical Article for FAI Newsletter in 2008
Efficiency improvement and cost optimization in
Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
17
FAI Programme on Business Intelligence, Forecasts and Planning for
the Fertiliser Sector – 27th Feb. – 1st March, 2012
33
The way forward - Energy savings schemes
S. No.
Scheme Expected energy savings
MKCal/MT Urea
A. AMMONIA PLANT
1 Heat Exchange Reformer (KRES) 0.32
2 Additional cell in cooling tower 0.04
3 Chiller at synthesis gas compressor suction 0.02
B UREA :
1 High Efficiency Combined (HEC) process for Urea or 1st stage heat recovery