Resource efficiency in plant structures

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1 Resource efficiency in plant structures Plenary Session 2 Which KPIs for Using Materials Smarter, Less and Longer? World Materials Forum June 2018, Nancy, France President and CEO, Shunichi Miyanaga 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved.

2 Background MHI have partnered with WMF since the beginning. We have discussed on various topics since This time, we would like to discuss on "Which KPIs for Using Materials Smarter, Less and Longer? in other sectors. (WMF2017) Quantitative evaluation KPIs for Use less, longer and smart (WMF2018) Quantitative evaluation KPIs availability in other sectors (WMF2016) Qualitative evaluation Need to speak with data (WMF2015) Overview on issues and opportunities (Conclusion) Need to decouple economic growth and use of materials (Conclusion) Decoupling is not enough, value creation is a must (Conclusion) It was agreed that Less Energy is also effective as KPI in the transportation field 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 2

3 Current list of 9 KPIs The scope of KPIs: decoupling materials efficiency from economic growth while creating value for all stakeholders involved MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 3 Source: WMF & Arthur D. Little analysis

4 Introduction of MHI Group business MHI Group conducts business in various social infrastructure fields such as power generation, steel manufacturing plant and transportation, etc. Case 1 Steel manufacturing plant Case 2 Power plant 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 4

5 Case 1 Background of the steel manufacturing plant industry CO 2 Reduction Ecological & Safe Car Electric Car World Trends Scrap recycling promoted Light & strong steel High-power big Motor Source: Volvo website Source: Mitsubishi Motors website Steel Market Increase of EAF *1 steel *1 Electric Arc Furnace (melt scrap by electricity) Mass production of AHSS *2 & Electrical Steel *3 *2 Advanced High Strength Steel (light and strong steel) *3 Electrical steel (used for motor coil) Solutions Lower Energy Consumption Facility High-productive Facility for green field Use Smarter by Digitalization Digitalization (MHI Group) Quantum EAF ESP (Endless Strip Production) 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 5

6 Case 1 Use Less Energy for melting scrap steel Quantum EAF reuses exhausted heat from molten metal for preheating scrap. As a result, this latest system can reduce energy consumption by 30% compared with the conventional system. Overview of Quantum EAF Scrap yard Preheating system Quantum EAF Preheating Scrap Electricity consumption(kwh) Conventional -30% Reduction Quantum EAF (New Method) Recirculating heat saves thermal energy consumption Electrodes Preheated Scrap Exhausted hot gas Molten metal 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 6 Drop

7 Case 1 Use Less Energy and raw material in rolling process ESP(Endless Strip Production) combines conventional facilities and success continuous production and reduces production cost( /ton) by 37%. Overview of Endless Strip Production(ESP) Temperature(K) ESP ESP (Endless Strip Production) 180m Conventional Facility length(m) 600m Reduces Heating Energy Conventional ESP 180m Conventional Facilities (Casting, Reheating, Hot Rolling) Reduces Material Loss (oxidized steel) Reheating Zone 600m 0 Conventional ESP 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 7

8 Case 1 Use Smarter and Longer by digitalization Digitalization contributes to smart, protecting workers from hazardous environment, enables service parts procurement onsite and reduce downtime by predictive maintenance. Smarter for productivity Condition Monitoring (Robot in severe environment) (Augmented Reality) Increase productivity without waiting Procurement of service parts Reduced downtime by predictive maintenance 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 8

9 Case 2 Key requirement for gas power plant MHI Group contributes to the further evolution of thermal power plants for the society that realizes renewable energy and low carbon emission. Total CO2 emissions (IRENA-IEA study) Total CO2 emissions (Gt CO2/yr) Demand/Supply (MW) Power demand and supply in California (Hourly) Demand Demand + Charging Storage Hydro PV(Solar) Gas Wind (Key requirement for gas power plant) (1) High efficiency gas firing (2) Flexible and reliable operation (3) Low Rare Metal Consumption Hour 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 9 Source: IRENA, IEA study concludes meeting 2 C scenario possible with net positive economics, Green Car Congress

10 Case 2 High efficiency of gas power plants We have announced last year that power generation efficiency of 63% has been achieved, but in reality we have already reached 64% in January By 2022 we will aim for 65%. Once the efficiency of power plants is increased, the amount of usage of resources can significantly be reduced. Thermal efficiency of GTCC (LHV %) Product performance 65 Improve efficiency Turbine inlet temperature( ) Output: 700MW To achieve 65% New materials Advanced aerodynamics Advanced cooling system 1% 27,000 tonco2 Only one 700MW LNG power plant 30km 2 3,000,000 Cedar trees 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 10 Source: Mitsubishi Hitachi Power Systems website

11 Case 2 Use Smart the rapid start up of gas turbines We have developed rapid start-up gas turbine system which can solve the instability of renewable energy such as PV and Wind. This improves availability of gas turbine plants. Previously over 30 minutes 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 11 Source: Asian Energy Outlook and Gas Turbine Development, MHPS,

12 Case 2 Critical raw metal usage reduction in turbine blade We have developed a super alloy MGA1700 which avoids the usage of Rhenium, one of rare metals, and is applied to gas turbine blades. This technology highly contributes to reducing consumption of critical material. Rhenium-free Super Alloy MGA1700 Micro structure of turbine blade (scanning electron microscopy) Usually Rhenium is included between 2.4-6% ( 7,500/kg) Relative Increase of creep durable temperature( ) <Creep strength> +100 Conventional alloy MGA1700 Relative thermal fatigue life <Thermal fatigue strength> Conventional alloy MGA MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 12 Source: IGT AWARD ASME2017 honorably speech, ASME, 2017

13 Conclusion The important factor for the pursuit of resource efficiency of infrastructure products is to improve efficiency and maintain safe and consistent product performance for a long period of time. Buy-to-use Power Plant Steel manufacturing plant Reduces material loss Use Less % of recycled materials End-of-life-recycling Energy Improve efficiency (Use less fuel) Lower energy consumption Use Longer Product lifetime Resale price Improve durability Predictive maintenance % of innovative materials No usage of critical raw metal Use Smarter Product performance / weight Improve efficiency Improve productivity Overall product usage 2018 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 13

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