Chalmers University of Technology, Goteborg Sweden, March, 2013 Practical Energy Analysis Needs of the Forest Products Sector

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1 Chalmers University of Technology, Goteborg Sweden, March, 2013 Practical Energy Analysis Needs of the Forest Products Sector Paul Stuart and Philippe Navarri

2 Outline Context Canada s Process Integration community Objective: Practical Energy Analysis Needs of the Forest Products Sector NRCan Programs: PI Incentive program IFIT program Biorefinery Design: Energy Analysis Perspective Selected Topics: EPM Bridge Method NRCan Modified Network Pinch Approach Conclusions 2

3 Context Pulp and Paper Mill energy superintendents are the poor cousin Many pinch-based energy studies in retrofit have been commissioned by forest product companies: Larger engineering consulting firms Boutique consultants With mixed results some great successes, and: Not many new (practical) energy-savings projects Confirmed ideas that the mill already had.. Difficult to justify in the pool of capital spending requests Too incremental to be important This is unfortunate 3

4 Context Pulp and paper mill energy superintendents are not energy analysis experts from the perspective of systems analysis tools The successful studies are being done by those who are knowledgeable expert about energy analysis, and who are using state-of-the-art techniques These experts understand and use the tools well, but also recognize practical issues in their application, including realistic project implementation costs (auxiliary mechanical equipment, structural etc), process operation complexities etc 4

5 Context There is a significant opportunity associated with the potential transformation of the forest products sector: In conjunction with biorefinery implementation using a global design perspective Finally, a competitive advantage for Canada s older, smaller capacity mills: energy inefficiency! What is the opportunity for additional project value from energy optimization of transformative projects, where new products are made at a substantial production level? What is the appropriate strategic and practical approach that companies should use? 5

6 Presentation Objective To provide an overview of Process Integration activities in Canada, Underlining the emerging energy analysis needs of Canadian forest product companies in a practical context As this sector seeks to transform to more profitable business models. and link this to energy analysis needs and process systems analysis tools 6

7 Outline Context Canada s Process Integration community Objective: Practical Energy Analysis Needs of the Forest Products Sector NRCan Programs: PI Incentive Program IFIT program Biorefinery Design: Energy Analysis Perspective Selected Topics: EPM Bridge Method NRCan Modified Network Pinch Approach Conclusions 7

8 PI market transformation A federally led initiative, in collaboration with provinces and universities, to encourage the adoption of Process integration: Develop an energy efficiency culture in industries Build PI capacity: professionals and graduate students Accelerate industry acceptance and corresponding impacts Reduce emissions, cut operating costs and improve profitability Awareness Information Demonstration Capacity building INTEGRATION Software Training Technical support Support Support to Policy and Programs - Incentives for studies - Support to programs definition and delivery - Results and Impacts 8

9 NRCan s PI Incentive Program Participants by Industry Sector Pulp and paper 24 Food and beverage 15 Petrochemicals* 4 Fertilizer Mining and metals % of all PI studies performed in two industries: 45% pulp and paper, 28% food and beverage Chemicals 2 Other 2 Total 53 PI studies funded * Includes petroleum refining, bitumen upgrading, petrochemicals Number of PI studies performed Some participating companies 9

10 Canadian Experience with Process Integration NRCan s PI Incentive Program Increase Renewable Electricity 50 MW GHG Reductions Equivalent to 100,000 cars Actual Fuel Savings 6.6 PJ/year Implementation rate: 55% Enough to heat 100,000 family homes Key partnerships Other Benefits Water Savings Production Increase Total 53 PI studies performed between 2004 and 2010, several recently completed or underway Average Payback: 1.4 Years 10

11 NRCan s PI Incentive Program Successful Implementations Prepare long term energy reduction plans At Kruger PI has been adopted corporately and has become a key aspect of energy conservation Studies performed in 7 out of their 10 mills with large cost-effective energy savings identified, and several measures implemented shortly PI serves as backbone of their 5-year energy reduction plan Support strategic investment decision At Zellstoff Celgar and Domtar Kamloops, PI determined ways to reduce process stream usage and showed significant potential for increasing electricity generation, creating additional revenue streams from "green power" 11

12 12

13 IFIT Program 13

14 IFIT Program 14

15 Outline Context Canada s Process Integration community Objective: Energy Analysis Needs of the Forest Products Sector NRCan Programs: PI Incentive Program IFIT program Biorefinery Design: Energy Analysis Perspective Selected Topics: EPM Bridge Method NRCan Modified Network Pinch Approach Conclusions 15

16 Biorefinery Implementation Risks The leadership of most forestry companies understands what the biorefinery is, and likes the idea of revenue diversification However management doesn t know how to go about defining the company strategy, and is concerned about risks to the core business 16

17 Strategic Approach for Implementing the Biorefinery to Mitigate Risk Implementation: Capital spending concrete and steel Phase I Lower Operating Costs: Replace fossil fuels at mill (natural gas, Bunker C), and/or Produce building block chemicals Lower risk technologies Compete internally for capital Phase II Increase Revenues: Manufacture of derivatives Market development for new products Higher process complexity and technology risk Partners essential Select the most sustainable product platform and partner(s) Phase III Improve Margins: Knowledge-based manufacturing and production flexibility Business flow transformation Product development culture Off-shoring, Outsourcing, etc Company culture transformation SCM key to success Strategic Vision: Phases II-III determine Phase I 17

18 Strategic Approach for Implementing the Biorefinery to Mitigate Risk Implementation: Capital spending concrete and steel Phase I Lower Operating Costs: Replace fossil fuels at mill (natural gas, Bunker C), and/or Produce building block chemicals Lower risk technologies Phase II Increase Revenues: Manufacture of derivatives Market development for new products Higher process complexity and technology risk Partners essential Phase III Improve Margins: Knowledge-based manufacturing and production flexibility Business flow transformation Product development culture Off-shoring, Outsourcing, etc $$$ Strategic Vision: Phases II-III determine Phase I 18

19 Biorefinery Design Framework Promising Biorefinery Products Product Design Technology Strategy LCA Advanced Thermal Pinch Analysis Large Block Analysis of Processes Process Simulation Set of Preferred Biorefinery Configurations MCDM Supply Chain Management Reconciled Process and Economic Data Process Design Preliminary Engineering

20 Integrated Biorefineries: Design, Analysis, and Optimization CRC Press/Taylor & Francis (2013) Edited by Paul Stuart and Mahmoud El-Halwagi Recommended for Immediate Purchase!! Thore Berntsson Ignacio Grossmann Antonis Kokossis Maryam Mahmoudkhani Denny Ng Douglas Tay 20

21 Case Study: Critical Biorefinery Integration Aspects Biomass Harvesting and procurement Materials handling Process Energy island Waste water treatment Other existing equipment Product Supply chain synergies Revenue diversification Slave Master 21

22 Biorefinery Soft wood Mill Pulp Pulp production Forest Residues Lignol Black Liquor Recovery Boiler Green Liquor Steam Energy Island Topping Turbine 12 MW Electricity (~ MW) Carbon Fiber Lignin Steam & Electricity Hog fuel Power Boiler Back Pressure Turbine Excess Electricity (~ MW) Un-used Power Boiler New Boiler Forest Residues Forest Residues

23 Biorefinery Soft wood Mill Pulp Pulp production Forest Residues Carbon Fiber Lignin Lignol Steam & Electricity Hog fuel Black Liquor Recovery Boiler Green Liquor Power Boiler Steam Energy Island Topping Turbine Back Pressure Turbine 12 MW Electricity (~ MW) Excess Electricity (~ MW) Un-used Power Boiler New Boiler Forest Residues Forest Residues

24 Biorefinery Strategy: Implications to Energy Planning Early-to-market is critical to success for the biorefinery, for low-volume added-value products Market product process Mass and energy balances for the biorefinery processes 24

25 Biorefinery Strategy: Implications to Energy Planning 25

26 Biorefinery Energy Analysis: Some Key Questions What is the most practical energy analysis methodology for exploring the biorefinery? Emphasis on separation processes Retrofit context Simultaneous water and energy use reduction Site-wide analysis Energy planning over time What is the best energy efficiency target in order to create competitive advantage when implementing the biorefinery? The best integration strategy between the new/existing processes? Short-term energy changes for energy use reduction? Site-wide process modifications? 26

27 Outline Context Canada s Process Integration community Objective: Energy Analysis Needs of the Forest Products Sector NRCan Programs: PI Incentive Program IFIT program Biorefinery Design: Energy Analysis Perspective Selected Topics: EPM Bridge Method NRCan Modified Network Pinch Approach Conclusions 27

28 Introducing the Bridge Method for Energy Analysis To reduce the heat consumption in a process implies decreasing the flow rate of heat cascaded from the hot utility to the environment, passing through the heat exchanges and process operations. This analysis is not pinch-based, but is based on thermodynamics and combines MILP, visualization, as well as some heuristics The fundamental sets of heat savings modifications are termed bridges. Bridges can lead to heat savings. The bridges can be identified with an algorithm, a grid diagram, a heat transfer diagram or a network table. A method to enumerate all the bridges has been developed. A network table is proposed to evaluate the heat savings, profit and final topology corresponding to a bridge. 28

29 The Flow Rate of Heat can be Represented on the Heat Transfer Diagram Heat Cascaded Heat (kw) Env HU Cascaded Heat (kw) Env Heat HU Te T ( C) Te T ( C) Process operations HEN Process operations HEN Before HEN retrofit Min heat consumption by HEN retrofit 29

30 Energy Analysis of Furfural Production Process Cascaded Heat (MW) Before retrofit Env Process Distillation C2 H1 H3 Multi Turbine Column HU Heat 2 main bridges T ( C) Cascaded Heat (MW) After retrofit Env Process HU Heat T ( C)

31 CanmetENERGY s INTEGRATION software INTEGRATION: Integrated tool based on PI rules to evaluate heat recovery and operational projects in industrial energy systems and processes 31

32 Modified Network Pinch Approach (NPA) in INTEGRATION software Approach based on original algorithms developed at UMIST Further extended to incorporate important practical design aspects Multiple project options proposed to the user and let him select at each step Flexibility in process streams supply and target temperatures (soft targets) 15 o C 121 o C 120 o C 194 o C 189 o C 368 o C Desalter Pre-flash Atmospheric and Vacuum towers Possibility of linkage between the soft target of a stream with the supply temperature of another stream Possibility to switch utility when a cheaper one can be used Management of forbidden matches and fixed temperatures at a given location in the stream, to handle various process constraints Combining the structural modifications search with the cost optimization stage 32

33 Conclusions Canada is active with PI in the forest sector, especially due to recent government programs that encourage energy efficiency and PI studies, and forest sector transformation As the industry converges to biorefinery implementation, the energy analysis and implemented project needs will change How do we best integrate these new processes? What separation processes should we use? Are back-pressure turbines a design constraint? Two emerging techniques in Canada are: Modified Network Pinch Approach Bridge Method 33

34 Thank You! Chalmers University of Technology, Goteborg Sweden, March, 2013