Recovery & Utility Management

Transcription

1 Recovery & Utility Management Jim Brewster Mill Manager Irving Pulp & Paper, Limited Saint John, New Brunswick, Canada Tappi Kraft Recovery Short Course St. Petersburg, FL, January 7-10, 2008 Recovery & Utility Management Risk Management Interdependence of Unit Operations Team Work 1

2 Capital Intensity Greenfield 1500 ADMT Softwood Mill Recovery Boiler Power Boiler, TG Feedwater System Recaust & Lime Kiln Evaporators & Strippers SUB TOTAL Recovery & Utilities Fiberline Cooking Bleaching Pulp Dryer Water Supply Effluent Systems Site Development & Infrastructure SUB TOTAL TOTAL % of Capital Cost % 2

3 Capital Intensity Incremental Expansion Difficulty Physical Hearth Area Furnace Volume Steam Drum Size Incremental Expansion Difficulty Regulatory Permits 3

4 Capital Intensity Incremental Expansion Difficulty Best Firing Practices Capital Intensity Incremental Expansion Difficulty Best Firing Practices Value of Incremental Production Concept of Contribution 4

5 Concept of Contribution 1. CONTRIBUTION DEFINITION Net Revenue Variable Cost Concept of Contribution 1. CONTRIBUTION DEFINITION Net Revenue Variable Cost 2. VARIABLE COSTS Wood and Bleaching Chemicals 5

6 Concept of Contribution 1. CONTRIBUTION DEFINITION Net Revenue Variable Cost 2. VARIABLE COSTS Wood and Bleaching Chemicals 3. FIXED COSTS Concept of Contribution 3. FIXED COSTS Labour Maintenance Materials Energy Asset Taxes Insurance Cost of Capital Interest Dividends Depreciation 6

7 1000 ADMT Mill Example NET REVENUE VARIABLE COSTS FIXED COSTS CONTRIBUTION Net Revenue Less Variable Costs $550 / ADMT $250 / ADMT $ 90 M / YR $550 / ADMT $250 / ADMT $300 / ADMT TOTAL FIXED COSTS = Breakeven Volume Contribution / Unit 90 M / YR = 300,000 ADMT / Year $300 / ADMT PROFIT = (50,000 ADMT) ($300 Contribution /ADMT) = $15 Million 1000 ADMT Mill Example Fixed Cost Line Contribution Line Volume Breakeven Point This Example Variable Costs 45% of Revenue Annual Pretax Profit Margins of 7.8% Breakeven point is 86% of volume 7

8 Impact of 5% Production Increase 1,000 ADMT / Day 1,050 ADMT / Day Annual Volume 350,000 ADMT 367,500 ADMT Contribution $ 300 / ADMT $ 300 / ADMT Fixed Costs $90 M $90 M Breakeven Volume 300,000 ADMT 300,000 ADMT Volume Above Breakeven 50,000 ADMT 67,500 ADMT PROFIT $15 M $20.3 M Benchmarks Total Available Time 365 days / yr Annual Outage 7 days Upper Utilization Limit 98% Very Good Mills Achieve 95% TWO FACTORS: Increasing the Instantaneous Rate Reducing Time Off Peak Rate 8

9 Thermal Efficiency Historical Trends Thermal Efficiency % Thermal Efficiency % 63% 67% 68.5% 70% % BLS to DCE 62% BLS PFR 70% BLS HSC 75% BLS HSC 80% BLS SC 9

10 s BTU / lb BLS Heat to Steam % 62% 70% 75% 80% BLS to BLS BLS BLS BLS DCE PFR HSC HSC SC % of Steam Generation Steam Provided From Recovery Market Pulp Mill

11 Back Pressure Power Generation per 1000 ADMT s Recovery Capacity Mwe PSIG o F MP Extraction Mwe % % % HP Steam Conditions HP Steam Conditions 45% % LP Exhaust 40% 45% 50% 55% 65% 11

12 Thermal Efficiency Historical Trends Competitive Position Develop and use a Heat & Material Balance for your Boiler Formulate Improvement Opportunities Thermal Efficiency Historical Trends Competitive Position Develop and use a Heat & Material Balance for your Boiler Formulate Improvement Opportunities Sell the Investment Opportunities Technical Knowledge Financial Understanding Salesmanship 12

13 Thermal Efficiency Benchmarks Eliminate Direct Contact Evaporators Minimum 70% BL Solids from Concentrators Maximum 8% Sootblowing Steam Usage Indirect Final Liquor Heating Thermal Efficiency Benchmarks Maximum 2% O Furnace Outlet Maximum 400 o F Exist Gas Temperature Maximize Combustion Air Temperature 13

14 Recovery & Utility Management Risk Management Interdependence of Unit Operations Team Work Risk Management Smelt Water Explosions Pressure Part Deterioration Fireside Thinning Feedwater Quality Excursions Near Drum Corrosion Membrane Cracking Attachment Weld Cracking Cold Side Corrosion 14

15 Risk Management Fossil Fuel Explosions Human Factors Insurance Costs Recovery & Utility Management Risk Management Interdependence of Unit Operations Team Work 15

16 Interdependence of Unit Operations Chemical Interactions Thermal Interactions Inventory Interactions Interdependence of Unit Operations Chemical Interactions Reduction Efficiency Causticizing Efficiency White Liquor TSS Liquor Cycle Make-up N.P.E. Control Digester Residual Alkali 16

17 Interdependence of Unit Operations Chemical Interactions Thermal Interactions Warm & Hot Water Systems Boiler Feedwater Preheating Condensate Returns Steam Loads Machine Breaks Planned Unit Outages Plant Modifications & Improvements Interdependence of Unit Operations Chemical Interactions Thermal Interactions Inventory Interactions Liquor Inventories Unit Process Rates Effective Bottleneck Management 17

18 Interdependence of Unit Operations How can the myriad of interactions be effectively managed? Teamwork Technical Excellence + Teamwork! 18

19 The Team Teamwork Maintenance Engineering CRU Manager Operations Financial Human Resources Technical Leadership Teamwork Structure Style 19

20 Leadership Structure must: Teamwork Facilitate frequent interaction of the team Assure common goals Quickly resolve conflicts Assure accountability Provide support Style must: Leadership Teamwork Be technically oriented (data driven) (sound science) Foster co-operation Motivate to excellence Build mutual respect and trust Take care of the people 20

21 Recovery & Utility Management Risk Management Interdependence of Unit Operations Team Work FINAL WORDS. FINAL WORDS Learn all you can Strive for technical excellence Study leadership with the same intensity Be a good team player 21