Energy efficiency in Steel Rerolling Mills (SRRM) in India. K. Shanmuganathan Project Assistant (Technical) UNDP

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1 Energy efficiency in Steel Rerolling Mills (SRRM) in India K. Shanmuganathan Project Assistant (Technical) UNDP 06/09/2014

2 Indian Steel Scenario World steel production 1,607 million tonnes India ranks 4 th in steel production with 81.2 million tonnes per year Average per capita consumption of steel in India 60kgpercapitaperperson India is expected to be 2 nd largest steel producer very soon Around 65% of finished products are from secondary steel sector 1,797SRRMsareinoperationinSMEsector

3 UNDP-GEF Steel Project Need for energy efficiency: Riseinfueldemandanditscost Uncontrollable GHG emissions Energy cost 30% of conversion cost Launched in the year 2004 C a p i t a l C o s t Project M partners: a i n t e n a n c e C o s t Ministry of Steel, Government of India Global Environment Facility United Nations Development Programme SN Key parameters [energy use, production/ productivity] E n e r g y C o s t Barriers in implementing EE technology in secondary steel sector: Low awareness Lack of incentives& technical guidance Outdated technologies and practices High investments towards EE options Unit Status in the beginning of the project, 2004 Carbon D I E Oxide Target/expected due to project intervention in model units 1 Oil consumption in the reheating furnace l/t 42 to 45 <30 2 Coal consumption[pulverized] kg/t 80 to to 65 3 Gasconsumption Nm 3 /t Productivityoffurnace kg/m 2 /h 120 to to Scale loss % 2.5 to 3.5 <1 6 Power consumption kwh/t 90 to to 80 7 Yield % 89 to to 95 8 Utilization of mill % 65 to to 85

4 SRRM process layout 30% Energy share Thermal Electrical 70%

5 Reheating furnace SN Technology package Estimated energy saving in High efficiency metallic recuperator with improved furnace Improved furnace design to attain proper heat distribution[5%] 1.2 Usage of improved refractory and insulation material[5%] 1.3 High efficiency recuperator[10%] 1.4 Automation/control system[5%] 25 2 Biomass gasifier 10 3 Use of Coal Bed Methane 10 4 Use of lump coal to generate producer gas 35 5 Eco-tech options and technology packages Use of pulverized coal 5.1 Modified pulverizor with improved combustion system[10%] 5.2 High efficiency recuperator[10%] 5.3 Automation and control system[5%] 6 Regenerative burner system 30 7 Hot charging 40 8 Top and bottom firing 20 9 Oxy-fuel combustion Walking hearth/beam furnace Direct rolling Over 50 % 25 SN Rolling mill Energy efficiency measure Estimate d power saving in % 1 Crop length optimization 5 2 Roller guides 4 3 Universal couplings 5 4 Antifriction roller bearing 4 5 Y-roller table 3 6 Stationery drop tilter 2 7 Tilting tables 3 8 Quenching and tempering Nil 9 Oval repeaters 2 10 No twist blocks Slit rolling Computerized roll pass 5 13 Centralized lubrication 2 14 Cast in carbide rolls Pre-stressed housing less stands Endless rolling Reactive power compensation 4 18 Energy efficient drives 4 19 High voltage[ht] AC motors 4

6 Adoption of technology & Baseline vs Post implementation Technology adoptions - reheating furnace 34 model units were S N commissioned. Baseline vs post implementation - summary Parameters Unit Baseline Post implemen tation 1 Production tph SFC (The rmal ) F.O. l/t Coal kg/t Coal gasifier kg/t Biomass kg/t Natural gas Nm 3 /t SPC (electrical) kwh/t Oxy fuel combustion 1 Unit code Direct rolling 3 High efficiency recuperator 9 Best achieved: Energy source Modified pulverized coal fired system 13 Biomass 3 Producer gas based plant 5 Savings M1 Furnace oil 18.2 l/t (692 MJ/t) M12 Coal kg/t (2,382 MJ/t) M6 Electrical kwh/t (515 MJ/t)

7 Consolidation of average savings from 34 model units SN Parameter Reheating furnace Rolling section Total 1 Average Specific energy 2,150 MJ/t 1,302 MJ/t 3,452 MJ/t consumption[baseline] [56 liters of furnace oil] [110 kwh/t] 2 Interventions One of the options from A set of options - identified technology from identified EE tech options 3 Investments by units Rs 1,42,76,594 4 Investment by GEF and MoS Rs 24,25,203 5 Total investments Rs 1,67,01,798 6 Specific energy consumption [post commissioning interventions] 1,307 MJ/t 1,047 MJ/t 2,354 MJ/t of steel 7 Average reduction per tonne of steel 843 MJ/t [22.2 liters of furnace oil] 255 MJ/t [21.7 kwh/t] 1,098 MJ/t of steel 8 Average reduction of GHG emissions per tonne of steel tco 2 /t tco 2 /t tco 2 /t 9 Average steel production per year 29,987 t/y 10 Averageenergyreductionperyear 20.9 TJ/y [5,50,347 liters of furnace oil] 11 Average reduction in energy cost per year 7.29 TJ/y [6,19,897 kwh] TJ/y Rs117 lakhs Rs31 lakhs Rs148 lakhs 12 Average payback on investment 14 months 13 AverageGHGreductionperyear 2,041 tco 2 /y 559 tco 2 /y 2,600 tco 2 /y

8 Direct rolling a revolution in SRRM sector 3 units: M/s Shri BajrangPower & Ispat Ltd. M/s Real Ispat & Power Ltd. and M/s Indus Smelters Pvt. Ltd. Now, many units have started to replicate direct rolling Pros: Eliminates the usage of reheating furnace Fuel savings and GHG emission reduction Cons: Can be employed only in composite mills

9 Awards & Recognition All 34 units were awarded by MoS(GoI), GEF & UNDP with energy efficiency certificate. M/s MPK Steel Pvt. Ltd received Rajasthan Energy Conservation Award (RECA) by the Department of Energy, Government of Rajasthan for year M/s Pulkit Steel Rolling Mills received Energy Conservation Award from Government of Puducherry for adopting bio-mass technology. M/s Shree Prithvi Steel Rolling Mill has received the following awards: Rajasthan Energy Conservation Award for year National Energy Conservation Award for year

10 Our journey continues Launch of Upscaling Steel Project -- 25/11/2013. In aiming: Replication energy efficiency measures in 300 SRRM units Piloting energy efficiency in induction furnaces [15 nos.] Piloting second generation energy efficiency measures in SRRM units No. Partners Budget 1 Ministry of Steel, (GoI) 2 Australian aid program $ 2,000,000 $ 675,000 3 UNDP $ 950,000 Total $ 3,625,000

11 Cluster details No Cluster Total number of units Target units 1 Mandi Gobindgarh Ludhiana and Kalamb Raipur Nagpur & Indore Coimbatore, Palakkad Wada, Nashik, Goa, Silvasa Bhavnagar, Ahmedabad, Sihor, Kutch Jalna, Aurangabad Kolkata, Durgapur, Giridh, 9 Jamshedpur, Bokaro Chennai, Hosur, Salem Guwahati, Shillong New Delhi, Jaipur, Bhiwadi, Ajmer, Muzzafarnagar, Haridwar Total 1,

12 Project design Submission of EoI& Affidavit Approval of committee Conduction of baseline study Implementation of EE tech option/package Conduction of post implementation study Award of financial incentive and energy efficient award

13 Benefits provided (Technical & Financial) Technical assistance Baseline measurements Customised solutions Technical assistance for implementation including support to vendor selection, supporting the unit when implementing EE measures Training on SOP/SMP and 5S lean manufacturing Post commissioning measurements Financial assistance Financial incentive of Rs2 lakhs for group 1 [very low cost] and group 2[low to moderate cost] interventions for replication category Upto Rs5 lakhs for interventions of direct rolling Upto Rs40 lakhs for piloting EE in Induction furnaces Upto Rs20 lakhsfor piloting EE as second generation interventions in SRRM 5 groups of technology were designed. 3 groups of technologies are identified. (20 eco-tech options / packages) Group 1 A -11nos. low end equipments Group 1 B 7no. low end packages. Group 2 1 no. scrap based unit Group 3 1no.high end technology 2 groups are yet to identified.

14 Developments so far Around 310 affidavits are generated 300 units were approved EE tech packages booklet was developed 110 baseline studies were conducted 20+ units initiated the commissioning of EE technologies 8baselinestudieswereconductedinIFunits Scouting of 2 nd generation technologies and induction furnace technologies are under process Cluster Level Agencies(CLA) are appointed A e-network created to disseminate the project progress and other details Furnace drawings are uploaded in our website

15 Project deadline 30/06/ days left

16 SAVE ENERGY SAVE EARTH THANKYOU

17 No Categor y GROUP 1A SRRM - Low end EE tech equipme nt GROUP 1B SRRM Low end EE technol ogy package GROUP 2 SRRM Low end EE technol ogy GROUP 3 SRRM - High end technol ogy EE Technology Sh ell in sh ell type recuperator for pulverized coal firing system M odified pulverized coal firing system Energy efficient pulverizor Installation of automation & control system (Proportional Integrated Derivative [PID] based for reheating furnace air-fuel ratio control system) High efficient U-tube cross flow type metallic recuperator (for furnace oil / gas fired reh eating furnaces) Variable Voltage Variable Frequency (VVVF) drive Universal spindles & coupling s Antifriction roller bearings Installati o n of Y- roller table in 3- Hi mill stands of rolling mills Installati o n of tilting table for 3- Hi mill stand Energy efficient drives for rolling mills R eplaceme nt of existing furnace with new energy efficient furnace Conversio n of fossil fuel to CBM based reh eating furnace Conversion of fossil fuel to biomass based producer gas re-heating furnace R evamping / modernisatio n of pulverized coal fired re- h eating furnace Revamping existing furnace with energy efficient top fired re-heating furnace R evamping of rollin g mill R evamping furnace with new insulatio n & refractory lining R evamping of mini scrap based rolling mill Direct rolling Inv estm ent esti mat e INR 3 15 lakhs INR 1 2 crores INR upto 15 lakhs INR crores Saving potenti al Implem entati o n peri od Savings in specific fuel consumpti on by 5-15% 2 3 month s Savings in specific power consumpti on by 2-10% Savings in specific fuel consumpti on by 20-35% 4 8 Savings in month s specific power consumpti on by 10-15% Savings in specific energy consumpti on by 5 15% Savings in specific fuel consumpti on by % Less than 6 month s 6 8 month s Financial incentive 20% of capital cost 20% of capital cost or consulta n cy fee or both 20% of capital cost or consulta n cy fee or both 20% of capital cost or consulta n cy fee or both Maxi mum per unit INR 2 lakhs INR 2 lakhs INR 2 lakhs INR 5 lakhs

18 GHG emission reduction No. Parameter Unit Baseline Post implementation Reduction 1. Reheating furnace (39.21%) 2. Rolling mill kgco 2 /t (19.58%) 3. Total ( 31.85%)

19 SAVE ENERGY FOR A GREEN FUTURE