Energy Improvement- Making Value Added Choices. S.Chatterjee March 4, 2010

Transcription

1 Energy Improvement- Making Value Added Choices S.Chatterjee March 4, 2010

2 Company Profile

3 Leading positions and extended geographic presence 2007 Revenues Including JVs ROW JVs Europe North America Global Rated Capacity Position Legacy Basell Manufacturing Sites and JVs Legacy Lyondell Manufacturing Sites and JVs Global geographic diversity Significant presence in fast growing Asian markets Well positioned to access cost advantaged feedstock in the Middle East Chemicals Propylene Oxide #1 Fuels Oxy Fuels #2 Polymers Polyolefins #1 Technology & R&D Polyolefin Licensing #1 Polyolefin Catalysts #1 Source: LyondellBasell Industries and CMAI Based on 100% of JV capacity. Rankings based on CMAI information except for Polyolefins ranking which is based on internal LyondellBasell Industries information 3

4 FUELS CHEMICALS POLYMERS TECHNOLOGY & R&D Products Gasoline Diesel Oxyfuels Olefins Feed Products Ethylene Propylene Propylene & Ethylene Oxide Styrene Monomer Products Polyethylene Polypropylene Compounds Catalloy Process Resins Products Process Licensing Catalyst Sales Technology Services New Ventures Acetyls Polybutene Customer End Uses Automotive Fuels Aviation Fuels Heating Oil Customer End Uses Insulation Home Furnishings Coatings Adhesives Textiles Consumer Products Customer End Uses Food Packaging Automotive Appliances Coatings Flexible Hot Water Piping Customer End Uses Polypropylene and Polyethylene Manufacturers Petrochemical Manufacturers 4

5 World-scale diversification and vertically integrated portfolio Wellhead Crude NGLs Refining Olefins Olefin Derivatives Second Level Derivatives Propylene Ethylene Polyethylene Polypropylene Polybutene Acetyls Oxide Styrene Oxide Technology Fuels Aromatics Advanced Compounds Refining Olefins Crackers Glycols Glycol Ethers Butanediol Glycols Glycol Ethers Olefins Oxy Fuels Capturing Value Along the Chain Fuels Chemicals Polymers Technology & R&D 5

6 Energy Efficiency - Highlights

7 Energy Reduction Goal Company commitment established in 2006 Reduce Energy consumption by 10% in five years at 2% per year 7

8 Path to Energy Efficiency Awareness/ Recognition Work Practice Alignment Evaluate Performance Drive Improvements Analyze Monitor Organizational Structure Corporate Commitment 8

9 Initial steps Current Operation Measurement Opportunities Improvement Define energy components Extract component data from Data Warehouse Compile data by component, site, region, global Develop site energy usage- Pareto Prioritize implementation plan Standardized EI KPI Product line complexity Process complexity Monthly reporting Performance data base Drill down capabilities Tracking and trending Gap analysis Lost opportunities Utilize DOE ESA Tool Steam Motor Compressed Air Process Heating Pinch analysis engg. study Energy Management Systems (On-Line) Controller performance monitoring Energy management assessment Low hanging fruit Minor capital Major process enhancement Capital hurdles Project prioritization 9

10 Implementation Phase - Central Role by Site Energy Leads 27 Manufacturing sites, 6 Product Lines Mfg. Sites Site Energy Leads Energy Champions Manufacturing Site Energy Plan Accomplishments Corporate Energy Management Team Enabling Tools Capital Prioritization High Return Program Energy Program Funding Special Focus Areas Regular data base updates 10

11 Energy Footprint Percentage of Total Energy Europe 25.4% Asia-Pacific 1.1% Africa-Middle East 0.0% South America 0.2% North America 73.3% 11

12 Energy use by business Percentage of Total Energy CHEMICALS Polymers 11% Fuels 16% FUELS Chemicals 73% POLYMERS 12

13 LyondellBasell Energy Use By Site 30% 25% 20% 24% 100% 90% 80% 70% 60% 15% 13% 50% 10% 5% 9% 7% 7% 6% 5% 4% 4% 3% 2% 2% 2% 1% 1% 8% 40% 30% 20% 10% 0% 0% 13

14 Highlights of Accomplishments: manufacturing sites, 6 product lines Opportunity : 750 opportunities identified Energy reduction opportunity ~16% of Total Actual Results 383 opportunities implemented by end of trillion Btu reduced Cumulative energy reduction 7%, million metric tons per year carbon emissions reduced Equivalent to 266,000 cars off the road Award Winners 2008 DOE Save Energy Now 2009 IETC Energy award 14

15 Cumulative BTU Savings Savings in Millions MMBTU/yr Jan 07 Apr 07 Jul 07 Oct 07 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Cumulative Energy Savings Incremental Energy Savings Target Energy Savings 15

16 Energy Intensity Trends BTU/lb YTD 3Q08 4Q08 1Q09 2Q09 May 09 Jun 09 Jul 09 Aug 09 16

17 LyondellBasell Opportunity Profile (MBtu/Yr) 17 Air Com pressors Condensate Electrical Fired Heaters Refractory Insulation Lights Operational Other Adv Proc Ctrl Instrum entation Other Proc Ctrl Rotating Equ Stationary Equ Steam Leaks Steam Traps Other Steam Turbines Other Utilities Unassigned

18 Opportunity Curves 0 0 % Savings 20.0% 17.5% % $ Savings 12.5% 10.0% 7.5% Cumulative % Energy Savings 0 0 Cost 5.0% 2.5% - Opportunity Sorted 0.0% Undefined Potential In Progress Complete Energy Savings % Energy Savings 18

19 Energy Projects - Cost Efficiency Light Elec Oper Trap Leak PC Util Other Insul Stm Other Air Rot Equ Other Sta Equ Condensate Compressor Fired Heaters Turbine Dollars/ MMBtu

20 High Efficiency Focus Areas Significant opportunities: Energy Maintenance Program Steam Leak Management Steam Trap Program Heat Conservation Process Control ( APC) Flare Operation and Optimization 20

21 Developing A Compelling Case Normal Project Financials: Cost / Benefit analysis Metrics: PB, IRR, NPV Cash Flow Defining Elements : Garnering key senior leadership support by : Combining common themes across multiple sites Linking the benefits to Company strategic objectives Connecting improvements to P&L, Product Margins Defining Environmental benefits Defining targeted future state 21

22 New Funding Programs Created Energy Maintenance Funding Program Limited time funds for surveying, identifying, evaluating and repairing Steam leaks Steam traps Heat Conservation High Return Energy Funds Expense Projects that require minor process upgrades Cash neutral for the budget year Strategic Capital Planning 22

23 Benefits Realized Corporate wide funding and resource alignment: Energy Maintenance Program Extremely successful Steam Leak management largest pay back ( avg. 9 weeks) Overall PB ~ <5 mos. High Return Energy Funds Process Improvements Typical simple PB ~ < 3mos. Flare Operation and Optimization 15 assessments completed Average simple PB ~ 3mos Process Control APC implementation plan Yield improvements overshadow energy benefits 23

24 Disclaimer All information contained herein is provided without compensation and is intended to be general in nature. You should not rely on it in making any decision. LyondellBasell accepts no responsibility for results obtained by the application of this Information, and disclaims liability for all damages, including without limitation, direct, indirect, incidental, consequential, special, exemplary or punitive damages, alleged to have been caused by or in connection with the use of this Information. LyondellBasell disclaims all warranties, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose, that might arise in connection with this information. 24