Best Practices in Energy Efficiency at ITC Limited - Paperboards & Specialty Papers Division

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1 Best Practices in Energy Efficiency at ITC Limited - Paperboards & Specialty Papers Division Knowledge Exchange Platform Initiative 21 August 15, New Delhi

2 ITC Strategy Adopt low carbon growth path To address depletion of natural resources which is restricting economic growth and business sustainability, volatility in energy prices, energy security and meet current and future regulatory requirements like RPO, RGO etc. Operational efficiency To address future regulatory pressure like carbon tax, additional requirement under PAT & REC and others. Life cycle assessment based approach in the design and development of products To address energy issues across value chain of products and services which are beyond the operational control

3 ITC Energy Consumption (in %) Personal Care & others Printing & Packaging Foods Hotels Energy from Renewable, 43.1 Energy from State Uty, 3 Energy from Fossil Fuel, 53.9 Tobacco 3.6 Paper & Paperboards 89.6 Energy from Fossil Fuel Energy from State Uty Energy from Renewable To adopt low carbon growth, ITC has set a goal of 50% renewable by To achieve the goal, Paper & Paperboards business need to adopt energy efficiency to reduce total energy consumption to improve renewable energy percentage for same total energy consumption (or) create new renewable energy assets to switch from fossil.

4 PSPD Energy Performance Energy Performance in GJ per tonne Bhadrachalam Kovai Tribeni Contributing Factors for PAT Bhadrachalam: Higher biomass generation and utilization, reduction in heat rate, reduction in specific steam & power Kovai: Reduction in heat rate due to wind power, reduction in specific steam and power Tribeni: Reduction in heat rate due to new high pressure cogeneration plant and reduction specific in steam and power

5 PSPD Approach Energy Efficiency at PSPD is majorly driven through New Projects Adopting energy efficient & cleaner technologies for process, high pressure & temperature Cogeneration to improve generation efficiency, creating renewable energy generation sources to reduce carbon emissions Capital Schemes Meant for improving the operational efficiencies through retrofits, new equipment, to adopt current technologies etc. majorly to reduce energy demand Operational excellence Adopting automation tools, Target setting & monitoring, increasing employee involvement at shop floor operations to improve productivity

6 Unit Tribeni: Cogeneration Plant 2 x 30t/h capacity boilers at 26kg/cm2 & 350 Deg C. Stoker fired with B grade & AFBC with F grade coal. 2 x 5 MW TGs to meet steam and power demand Installed 1 x 72t/h AFBC at 87kg/cm2 and 520 Deg C Designed for F grade coal. 1 x 12 MW TG with investment of INR 112 Cr. Reduction in heat rate of the Cogeneration plant F grade/washery rejects coal is used Total energy cost reduced by INR 18 Cr per annum

7 Turbo Blower The multi stage blower replaces 6-7 nos. conventional liquid ring vacuum pumps and caters to the entire vacuum requirement. Advantages It reduces the energy consumption to cater to the vacuum requirement The sealing water requirement (for running the conventional liquid ring vacuum pumps) is reduced by 97% There is steam saving since the exhaust air from the turbo blower which is more than 150 degree C can be used for the Hood and PV system. Space is saved due to the compact design of the turbo Blower Different vacuum levels can be achieved from the same source Easy maintenance.

8 Unit Bhadrachalam Stripper Plant Evaporator foul condensate is passed through the stripper column where it is heated by countercurrent flow of LP steam. Condensable and non condensable vapors are passed through heat exchanger where non condensable vapor are extracted. Condensate is re-used at CSP as process water DM water is used at heat exchanger to pickup heat NCG is fired at limekiln

9 Employee Participation No. of Kaizens per Month (Bhadrachalam) Employees Managers Others (Trainees, Badlis) Group Kaizens Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar No. of Individuals Contributed per month Managers Employees Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15

10 Focussed Improvement Project Reduction of Specific Power Consumption in Stock Preparation Background & Reason for selecting the project: The average Specific Power Consumption in Stock Preparation Back & filler street was observed 225 Units/MT during Apr-Sep 13 of Pulp output as against the target of 202 Units/MT resulting in loss of Rs.49.2 Lacs per annum Utilization TREE DIAGRAM ( Potential Causes ) High KW motor running instead of low KW Low consistency operation Logic inadequacy Goal- To reduce Specific Power Consumption in Stock Preparation from 225 Units/MT of Pulp to 202 Units/MT of Pulp A Six Sigma Green Belt Project, Guided by ISI, Bengaluru. High specific power consumption Wastage No logic in DCS Stand by equipment running in parallel Excess throttling of valve Recirculation of pulp Pump Efficiency Low operating efficiency

11 Root Cause Analysis &Solution CTQ Cause Root cause Solution Power saving KWh/day High KW motor running instead of low KW Low consistency operation Logic inadequacy Design Deficiency Suitable sized Motor to be installed 12 no s 548 Operation Not Optimized Not Studied Consistency to be improved in filler liner 4 Screens 1060 Logic to be added as per the process study 11 no s P & A 80 High specific power consumption Stand by equipment running in parallel Excess throttling of valve Inadequate Installation High Capacity Installation Provide adequate Capacity Pump & Stop two pump running 5 Pumps 876 Suitable Pump to be installed as per system head 2 VFD s 300 Recirculation of pulp Capacity Mismatch VFD to be installed 2 VFD s 530 No logic in DCS Low operating efficiency Not Critical For operation Logic to be provided 17 Eqp. 87 Inadequate Measuring Device Audit & Implement Findings. 30 Total savings Units / Day 3511

12 PRESENT STATUS OF CTQ 240 Sampling Period Implementation Control

13 Achievements : Reduction in CTQ from to Units / MT of pulp CTQ Before After Mean Standard Deviation DPMO Sigma Level

14 Solution For Lighting - Plasma Plasma lamps are energy efficient and coverage factor is very high. S/P ratio of plasma lamp is higher (>2), which shows that objects will be much more sharper in plasma lamps at lower energy. Human eye can visualize objects even at low lux levels of Plasma Light Plasma lamps are maintenance free for 5 years. Each Himast was powered with 18Nos of 400W Metal halide lamps Replaced with 5 Nos of 280W Plasma Lamps MH 8.6 KW LEP 1.4 KW 80% Savings

15 Energy Efficient Lighting System Application UOM Before After Energy Savings Qty/Mast 18 Nos 5 Nos 8 Himast Lamp Wattage 400 W MH 280 W Plasma Total Power, W % Units/Annum 3.0 Lacs 0.5 Lacs Qty 52 Nos 18 Nos Hibay Lamp Wattage 250W MH 270W Plasma Finishing Power, W House Units/Annum 0.7 Lacs 0.2 Lacs 69% Hibay Machine Hall Street Light 57 Nos Street Light 30 Nos Qty 18 Nos 9 Nos Lamp Wattage 400W MH 270W Plasma Power, W Units/Annum 0.4 Lacs 0.1 Lacs Lamp Wattage 150 W MH 60 W LED Power, W Units/Annum 0.4 Lacs 0.2 Lacs Lamp Wattage 150 W MH 80W Induction Power, W Units/Annum 0.2 Lacs 0.1 Lacs 72% 63% 52%

16 Avg. Units / Day Lighting Power Consumption : Apr 14 to july 15 3,900 3,700 3,500 3,695 3,736 3,547 3,451 3,300 3,100 2,900 3,120 3,181 3,106 3,219 3,184 3,154 3,109 3,161 3,047 3,112 2,954 2,880 2,700 2, Months

17 Wind Power Utilization of Renewable Wind Power to Eliminate LP Vent & Minimise Cogen Condensing Plant Details 1.5MW X 5 Nos = 7.5MW Windmill Huge amount of Energy is lost in LP Venting due to steam power imbalance Similarly lot of energy is wasted in TG condensing (570Kcal/Kg) Windmill power could able to substitute Power generation thru LP Extraction Vent & Minimized Power generation thru Condensing. 45,000 Tonnes of Lignite consumption reduction per Annum Lac Tonnes of CO2 Emission reduction per Annum Estimated Generation (Lac Units) Gross Consumption Generation (Lac Units) (Lac Units) Lull hrs (Avg Hrs/Yr) M/C Availability Grid Availability PLF % 96.7% % 81.3% % 85.0% 24.7

18 Thank You