Energy Management. Global Refining Summit, Rotterdam. Pre-conference workshop 18 May 2011

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1 Energy Management Global Refining Summit, Rotterdam Pre-conference workshop 18 May 2011 David Gibbons, Principal Process Consultant, Business Solutions Group Mike Whitling, Manager Asset Operations and Consultancy

2 Energy Management Agenda Introduction Foster Wheeler and AspenTech Objectives Reduce energy consumption, improve energy performance Methodology Development of energy management options Screening of options and engineering i development Improving Operations Case study results

3 Introduction Foster Wheeler Foster Wheeler Leading FEED / EPC contractor and power equipment supplier Around 12,000 people with permanent offices in 28 countries worldwide FW Business Solutions Group Pre-FEED feasibility and conceptual studies Energy management and optimisation is a key business line

4 Introduction Foster Wheeler and daspentech -combining i to add value AspenTech (AT) World leader in provision of business improvement systems for the process industries Provides a broad range of energy management and optimisation products and services Covering both the design and operation of individual process units as well as site-wide energy optimisation FW + AT, together, Provide a full one-stop shop for energy management solutions The team combines the skills of both companies Energy study, modelling and systems experience EPC, commissioning, start-up and operational management expertise Expertise in layout & piping, construction, estimating & planning Can fully implement the selected solutions

5 FW + AT combined Recent collaboration successes South-East Asia Grassroots EII TM reduction study China Grassroots EII reduction study UK CDU expansion France - Three total sites Benelux - Total site Middle East - Total site Scandinavia Waste heat recovery Scandinavia i Total site, most major units Preem Lysekil Energy improvement study EII is a registered trade mark of Solomon Associates

6 Energy management What does it mean? It can mean all of these and more Increasing insulation and repairing steam leaks Ensuring best practice energy performance every day Optimising the utilities operation Buying cheaper Adding a new heat exchange to improve energy performance Build / increase cogeneration Typical questions How am I performing relative to my peers? Which opportunities are the best for my plant? How do I evaluate and prioritise these opportunities? What target for improvement makes sense for me? How do I collate all the opportunities into a coherent strategy with appropriate plan and timeline? What resources will I need? Where are the important quick wins?

7 Objectives What tdo we want tto achieve? Reduce refinery energy consumption Through improvements in heat recovery and heat integration Improve Energy Intensity Index (EII TM ) Headline figure which has industry-wide attention Reduce carbon emissions Can provide additional incentives in some cases Implement projects with short payback times Appropriate investment level Ease of investment

8 Methodology Three-phased h approach 1. Development of energy management options Data collection, energy workshop Modelling of key process units Benchmarking, energy targeting g and pinch analysis Development of a range of options 2. Screening of options and engineering development Equipment sizing i and costing Economic evaluation and ranking of opportunities Energy improvement road map 3. Operations impacts Operational review, key performance indicators and their effectiveness Organisation competencies, methodologies, effectiveness Functional specialist operations group, performance assurance Performance and plant management, strategic plans Maintenance, turnarounds, equipment, reliability

9 Development of energy management options Data collection and workshop Data collection Standard forms, PFDs, test-run data, interviews with energy engineers Energy management workshop Interactive comparison of current energy management versus best-in-class Use time horizons approach Response Time Years Months/Weeks Days Hours Minutes Building Planning Scheduling Operations Control Energy Efficiency Event New plant tdesigns The best companies incorporate Retrofits for energy reduction Feedstock selection Maintenance planning Operating plan Utilities contracts t with suppliers Equipment selection Utility nominations Process/Utility equipment loading Operating setup Best practice performance Load shedding / scheduling Contract monitoring/penalty avoidance APC / RTO energy management into everything they do

10 Benchmarking, energy targetting and pinch analysis Simulation modelling Base case models Heat / mass balanced, fit for purpose with no reactor modelling Steam / power and fuel systems to calculate marginal values Winter / summer, multiple modes as required Pinch technology Unit by unit, and grand composite curves Column grand composite curves Provides targets for reducing energy consumption Unit reviews Energy and yields are interrelated; are yields optimal? Is best use being made of excess energy? Is up-to-date technology applied where appropriate? p Can the unit be de-bottlenecked economically?

11 Options investigation Equipment and Design Studies and Improvement Opportunities Energy and the link to CO 2 Fired heater air preheat Air cooling versus water cooling Potential studies Advanced process control systems Steam and power system optimisation High pressure/ low pressure interfaces CDU / VDU pinch analysis Inter unit integration (hot rundowns) Low grade heat recovery study

12 Screening of options and engineering development Typical options Low or non-investment options Changed operating conditions Stream re-routing, steam / power balance changes Operating procedures, monitoring KPIs Investment options might include Preheat train reconfiguration, sometimes with additional surface Reactor unit feed / preheat exchanger Recovery of waste heat New column feed location Consider New / revamped equipment sizing, tie-ins Constructability (equipment lifts / movement) & plot location (lines, layout) Project implementation (turnaround schedule, delivery times, down-time) Cost estimates and economic analysis Ranking the opportunities

13 Energy Improvement Road Map EII reductions identified d

14 Example of pinch analysis results Hydrocracker unit

15 Added value from Engineering input Constructability t and layout review

16 The man machine interface Operational impact Man machine interface, sounds like a snappy catch phrase! The machine is only as good as the man who runs it! During periods of low margins and limited capital investment, owners seek low-cost and quick-payback performance enhancement opportunities Historically, as part of a longer-term asset performance enhancement process, many owners seek structural organisational savings based upon de-manning over a longer period of time The challenge for achieving shorter-term performance enhancement is to selectively assess operations practices and restructure the operator workforce to place accountability for specific performance areas directly with selected operators on a 24-hour per day basis

17 The man machine interface Operational impact Fringe benefits of operator buy-in in and proactive commitment to energy improvement: Improved housekeeping Competency enhancement Improved management skills Above all.... pride

18 The man machine interface Operational impact Operational review Current energy optimisation tools and procedures, and their effectiveness Traffic light indicators / flue O2 / exchanger k values / steam / fuel etc Objectives and targets, including key performance indicators (KPI s) Real time performance management / unit specific KPIs Current energy initiatives Organisation competencies Skills and training Make energy efficiency a core training topic Operator involvement Mentoring of less experienced operators Organisation structure and responsibilities Energy management roles and include energy in job descriptions

19 The man machine interface Mechanical impact Maintenance review Philosophies and strategies preventive, condition-based, prioritisation Procedures repair or replace Turnaround planning Maintenance records Quality of records Analyse for repeat failures Persistent failures root cause analysis Equipment Criticality rank based on energy impact? Include energy in risk ranking matrices Reliability impact on efficiency for example, pump drive efficiencies i i when switching pumps on routine basis etc

20 The man machine interface Strategic t plan High-level assessment Energy Management System strengths and weaknesses Strategy to deliver business management improvement Address the robustness and value of refinery energy management systems, are they fit for today s purposes, not a legacy from the last time energy efficiency really mattered Functional specialist operations group Selectively restructure operator workforce Accountable for specific performance areas Create groups within each shift for 24-hour focus Eg. Antifoulant / corrosion inhibitor additive optimisation Performance assurance programme Separate from day-to-day monitoring tasks Concentrate on improving energy performance

21 Energy Improvement Studies What can typically be achieved? FW / AT Inputs Site Improvements Simulation Pinch Analysis, HYSYS Design Equipment Design, Layout, Constructability, Project Management, Project Planning, Cost Estimation Operability System Analysis, Process Unit Monitoring, APC Systems, Operations Management, Operating Systems, Maintenance Planning, Cultural Analysis Energy Yield System Culture

22 Case Study Preem AB I-Energy Improvement Study Preem s objective is to be one of Europe s most efficient refinery systems Site Energy Improvement Study Foster Wheeler and AspenTech combined their operational, design and simulation knowledge to study the advantagesthatthat cultural change, facility revamp or design of new equipment would provide. The projects combined realised savings: Refinery energy reduction of 10 % Total benefit US$ 35m year on year Paybackperiods all <18 months Preem s projects progressed to BED / FEED Phase: (These projects have been awarded to Foster Wheeler) CDU heat exchanger reconfiguration Offgas redirections to HPU Packinox replaces shell hlland tube on CCR HDT preheat feed to furnaces

23 Thank you any y questions? Please visit our stand to ask any further questions that may arise over the coming days david_gibbons@fwuk.fwc.com ibb f michael_whitling@fwuk.fwc.com hitli f refining@fwc.com