Excellence in Energy Management

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1 TATA STEEL PROCESSING AND DISTRIBUTION LIMITED, PUNE BUSINESS UNIT Content Presented BY: Excellence in Energy Management (Hyderabad International Convention Centre, 30 th August to 1st September 2017) Mr. Jayadev Chand (Chief of Operations & SCM and Energy Manager ) Mr. K Kunal (Manager, SCM) Mr. Tonmoy Paul (Manager, Operations) 1. Company Profile 2. Business Model 3. How Close to Global best in SEC 4. Reduction in SEC in last 3 years 5. Innovation in Projects Implemented 6. GHG Inventorisation 7. Energy Saving Projects Implemented 8. Team work in Encon, Monitoring & Reporting, Implementation Methodology 9. Implementation of ISO 50001, GreenCo certification, % investment for energy conservation projects on turnover 10. Utilisation of renewable energy sources 11. Utilisation of waste material as fuel 12. Amount of replication arising out of Best Practices implemented on energy front in Green Supply Chain Company Profile Tata Steel Processing and Distribution Limited (TSPDL) was set up in 1997 as Tata Ryerson Ltd, a JV between Tata Steel of India and Ryerson Inc. of USA. In 2009, It became a 100% subsidiary of Tata Steel. 1. Company Profile PRODUCERS OF STEEL TSPDL was created to bring steel service centre solutions for the first time to the value-seeking Indian Industrial customers with a mission to be a trusted and irreplaceable bridge between steel producers and steel consumers. TSPDL presently operates from ten world class Steel Processing Centres and thirteen Sales and Distribution locations across India. Value Addition Steel Processing Customized Sizes in Small & Large lots Supply Chain Management Stocking Just - In - Time Delivery 3 FINAL CONSUMER 4 1

2 2. Business Model Product Offerings Market Definition Relative Proportion Products: HR, HRPO, HRSPO, CR, GA, GP Slit Coils and Blanks. Tolling Distribution TSPDL sells its processing services (Slitting, Blanking, length, Pickling & Oiling and 78% of Total Volume Corrugation) as job work where 8% of Total Revenue c customers own the material. TSPDL processes & sells steel to end users as per the agreed specification, delivery schedule and commercial terms where raw material is owned by TSPDL. 22% of Total Volume 92% of Total Revenue 3. How Close to Global Best in SEC Comparison Between TSPDL, Pune and Metal One, Japan KWh/MT 8.96 Road Map to achieve Benchmark / National Best TSPDL-Pune vis-a-vis Global Best 1) Improving Productivity by 20% in next 3 years, through automation / digitalization FY-15 FY-16 FY-17 TSPDL Metal One Corp. 5 2) Modify Stand alone processes into combi-processes : (i) CR Slit + CTL by 2019, (ii) HR Slit + CTL by Reduction in SEC Y-o-Y Year Reduction in SEC (KWH/MT) 8.96 FY-13 FY-14 FY-15 FY-16 FY-17 SEC (KWh/MT) Change in SEC from Last Year 9.57 Major actions taken to reduce Energy consumption Fy % Energy audit and right sizing of drives. 11% reduction Fy % Installation of VFDs in place of Conventional Drives. Replacement of conventional motors with energy efficient motors. Fy % SEC increased in Fy-16 as processing of surface critical skin panel material started which requires 100% online surface inspection at slow speed. Migration of Auto customers to lower thickness high tensile material. Fy % Stoppage of idle running of drives through automation, Increase in campaign size through engagement with end users and effective production planning, Replacing HPSV Lamps with LED Lamps Innovation Projects Implemented VFD Installation in Water Pumps And Hydraulic Power Pack BEFORE AFTER Electric Energy Consumption (KWH) in Pumps,Power Packs, Compressors, etc Details Power Consumption/Saving KWh Consumption in a year before VFD installation 5,83,652 VFD Installation in Processing Lines VFD Installed for Water Pumps, Hydraulic Power Pack Motors, Compressors, etc. Elect Energy saving per Year : 99,927 KWH KWh Consumption in a year after VFD installation Yearly saving in KWh Yearly Saving in Rs. (@Rs. 8.5/KWh) 4,83,725 99,927 8,49,380/- Annual Saving Rs 8,49,380/- 8 17% reduction

3 5. Innovation Projects Implemented Right- Sizing of Electric Motors/Drives after Energy Audit by Eco Energies BEFORE AFTER Right - Sizing of Motors after Energy Audit Total KW Reduced KW Location Plant Connected Load (KW) % reduction Motor Rating (KW) before audit CRWCTL Feed Roll CRWCTL Pinch Roll 30 0 CRNCTL Feed Roll CRS Hydraulic Power Pack CRNCTL Stacker 4 0 HRNCTL Hydraulic Power Pack CRWCTL Un-coiler Boiler Modulation Blower Motor Rating (KW) after right-sizing 9 5. Innovation Projects Implemented Reduction in idle running of Motors in Processing Lines Reduction in Idle running of Motors : PLC Program Modified to stop/warn in case of idle running of drives. Audio Visual alarm system and temperature controllers installed in Processing Lines and Utility equipments. Electricity Energy saving per annum : 3,72,022 KWH. Energy Cost saving p.a. :Rs.29,76, Electricity Consumption per MT of Production (KWH/MT) 9.95 Details 9.09 Average KWh from Apr-15 to Dec-15 (KWh/MT) 9.95 Average KWh from Oct 16 to Mar 17 (KWh/MT) 8.36 KWh Saving per MT 1.80 Average Monthly Production Monthly KWh Saving 31,002 16% reduced Fy.16 H1 Fy.16 H2 Fy.17 H1 Fy.17 H2 Power Consumption GHG Inventorisation Inventorisation of Scope 1,2,3 Emission 7. Energy Saving Projects Implemented Energy efficient LED Lamps installation in place of HPSV Lamps Specific Emissions (CO2 Scope -1) tco2e/t FY 14 FY 15 FY 16 FY Specific Emissions (CO2 Scope-2) tco2e/t FY 14 FY 15 FY 16 FY Elect Consumption per Yr. in Lighting (KWH) considering 14 hrs a day (HPSV) Earlier (HPSV Lamps) 59% reduction (LED) Now (LED Lamps) Wattage of each luminaire 400 Wattage of each luminaire Specific Emissions (CO2 Scope-3) tco2e/t Scope Type UOM Reduction Total no of lamps both in CR & HR Plant 108 No of lamps changed FY 14 FY 15 FY 16 FY 17 Scope 1 Fuel TCO2e/MT 69.6% Scope 2 Electricity TCO2e/MT 5.3% Scope 3 Logistics TCO2e/MT 7.3% 11 LED Luminaires installation in place of HPSV Lamps Total 165 Watt, 108 no. LED Luminaires installed. Energy saving per Yr : 1,29,940 KWH Annual Saving Rs.11,04,490/- Working hours of each lamp/day Energy consumption per day (KWH) 14 Working hours of each lamp/day 605 Energy consumption per day (KWH) Tariff (Rs./KWH) 8.5 Tariff (Rs./KWH) 8.5 Elect Energy Cost/ day (Rs.) 5,143 Elect Energy Cost/ day (Rs.) 2,117 Elect Energy Cost/Year (Rs.) 18,77,013 Elect Energy Cost/Year (Rs.) 7,72,

4 7. Energy Saving Projects Implemented Day Light Harvesting BEFORE Energy Policy Elect Consumption in Day time Lighting (KWH) p.a. considering 10 hrs per day Comply Regulations AFTER % reduction Shed light details Improve Technology Minimize Losses Renewable Energy Create Awareness Wattage of each luminaire considering LED Lamp 165 Poly Carbonate Translucent Sheets installed for day light harvesting in both HR & CR Plants Total Electricity saved per Yr. : 51,794 KWH. Annual cost saving : Rs.4,40,245/- Total no. of lamps put off = 86 Working hours of each lamp in day time 10 Total Electricity Consumption saved per day (KWH/day) 142 Total Elect Consumption saved per Yr (KWH/Yr.) Energy Management Cell Jayadev Chand Prithviraj Toge (Manager, Electrical Maintenance) Team Member Chief of Operations & SCM and Energy Manager Strategic Level Chetan Patni (Sr. Manager, Maintenance) Implementation Coordinator Tonmoy Paul Implementation Level K Kunal (Manager, Production) (Manager, Supply Chain Management) Team Member Team Member Energy Management Cell Strategic Level Provide Direction Set Targets Identify Improvement Projects Allocate Resources Review Status of various projects Review KPI trends Approach Roles and Responsibility of Team Implementation Level Monitoring Energy consumption at equipment level. Installation of Energy Efficient Drives & Luminaires Monitor energy consumption Monitor trends of specific energy consumption & take corrective measures Implementation of energy saving projects Identify & Monitor performance of energy intensive equipment in plant Take actions to ensure energy efficiency of equipment Training & Creating awareness among workforce on energy saving measures. Use of best available technology (Retrofit, Modernization, Automation, Capacity Enhancement) Optimizing Processing Lines Performance (Line & Speed Utilization) Minimization Idle Running of Equipments Awareness amongst Operation crew 4

5 Energy Score Card Energy Performance is recorded and is one of the major KRAs of Plant officers Identification of Energy Captains in each workstation, training & mentoring and implementation of Energy Score card. Operation Officers KRA_Fy.17 Aspect F i n a n c e Soumyajyoti Chakrabortty Sr.Manager - Elect KRA Electricity Consumption < 8.5 KWH/MT Weightage Implementation of ISO 5001, GreenCo Certification, % Investment on Energy Conservation on Turnover Green Co Rating TSPDL Pune Scorecard Vis-a-Vis Industry Benchmark HIGHLIGHTS Energy Policy, Energy Management Cell, VFDs, Stoppage of equip. idle running, T5 lamps, Natural Roof lighting, Right sizing of motors 61.84% Renewable Energy Briquette Fired Boiler Scope 1,2 & 3 Emissions Inventorisation, 63.5% Reduction in TCO2e Water Policy, Water Management Cell, Water Balancing, 47% reduction in specific water consumption ZLD Unit ETP, STP, Acid Regeneration Systematic Monitoring (SAP & Excel based tools), Specific Consumption Reduction Reuse of Packaging Material Green Procurement Guideline, Awareness Creation, Audit & Recognition Programme for suppliers Innovation Framework & Innovations - Laser Encoder at CRWCTL, Analog Loop Sensor, Return Line Filter at PKL etc. TSPDL Pune has been rated as GreenCo Gold. It is the maximum points scored by any GreenCo rated company in 18 Building & Engineering Sector. 9. Implementation of ISO 5001, GreenCo Certification, % Investment on Energy Conservation on Turnover GreenCo Rating TSPDL Pune Scorecard Vis-a-Vis Industry Benchmark Structure of Budget Allocation for Innovation Projects R & M Budget Minor Improvement Projects are funded through R & M budget. Lead Time for approval- 7 days. Total turnover of Pune Unit FY16-17 Amount Invested in Encon Projects FY16-17 Financial Resource Allocation Innovation Council Framework New ideas and suggestion sorted out through innovation council. Lead Time for approval- 15 days. Budget Allocation Investment %, w.r.t Turnover 0.29 % 2400 Million INR 7.14 Million INR Minor Capex Major EE Projects Budgetary approval is given for capital investment. Lead Time for approval- 30 days. 19 Solar Water Pre-Heater For Boiler Boiler fuel consumption reduced by 14 % through usage of Solar Water Heater 10.78% of Overall Plant Energy substitution through Solar Water Heater Annual Energy Cost saving : Rs.24,48,720/- Energy Substitution - Solar Water Heater Details Consumption/Savings UOM Monthly LDO saved by pre-heating Boiler Feed Water 4081 Litre Yearly Mega Joules Saved MJ Total Energy Consumed in Yr MJ Total Energy would have been Consumed in Yr.2014 if Solar heater had not been installed Energy Substitution by implementing Solar water heater MJ % Reduction of Boiler Fuel Consumption by using Solar Water Heater Details Rate UOM LDO Saving after installation of solar preheater 1.14 Lt/MT Avg Monthly Pickling Production 3580 MT LDO saving per month 4081 Litre Fuel Cost saving per month after installation of solar preheater 2,04,060 Rs. 20 5

6 Briquette Fired Boiler Renewable Energy Substitution Renewable Energy Substitution implementing Briquette Fired Boiler Project Details Yearly Mega joules saved in thermal energy after implementing Briquette Fired Boiler Project Consumption / Saving UOM MJ Plant Electricity Consumption KWh Solar Water Heater installed in Dec-2014 Renewable Energy Substitution Conversion of Boiler from LDO fueling to Briquette in Plant Electricity Consumption (MJ) MJ 100% substitution of fossil fuel into renewable energy - Biomass Fuel for Boiler. Total Energy Consumed Energy Substitution by MJ % Achieved 61.84% Renewable Energy substitution. implementing Briquette Fired Boiler Project Fuel cost saving p.a. : Rs.35 Lac Renewable Energy Substitution(in %) w.r.t Plant overall Energy consumption Non Renewable Energy Implementation of Solar Energy as Renewable Energy Using Solar Energy for Plant Operation. 11. Utilization of Waste Material as Fuel Flue Gas used as Fuel PROJECT INITIATED : Installation of 750 KWp Grid Interactive Non Battery based Solar Power Generation Plant Boiler Flue Gas Stack Project Status : Power Purchase Agreement (PPA) signed off with Clean Max Enviro Energy Solutions Pvt. Ltd Largest market share in BOOT Model The plant shall harvest 10,50,000 KWH Solar Energy per Year, It will improve our position in safeguarding Environment and increase Renewable energy consumption level from 61% to 81%. It will lead to saving of Rs.40 Lac p.a. in BOOT Model. Expected completion date : PPA/M.O.M. Biomass fuel, Briquette is used as Boiler Fuel. Flue gas was exhausted at 210 deg. cent. temp. Briquette consumption : 26.5 Kg/MT of Pickling Production. Water Pre-heater unit jointly designed with Thermax Ltd for using Exhaust Flue gas in pre-heating of Boiler Feed- Water. It works on Heat Exchanger principle and thus reduces irreversibilities involved in steam generation and therefore improves the thermodynamic efficiency of the system. Briquette consumption : 21.9 Kg/MT of Pickling Production

7 12. Amount of replication arising out of best practices implemented on energy front in Green Supply Chain. Few initiatives taken by Suppliers towards Green measures, ITW India Pvt. Ltd., Andhra Pradesh. 12. Amount of replication arising out of best practices implemented on energy front in Green Supply Chain. Benefits achieved through Vehicle wheel pressure check at TSPDL Transporter :- Rajmudra Transport Corp. Solar Cell Used For Street Lights Initiatives Description Increase 20% green belt in Plant surroundings by taking initiatives, in year 2016 Conversion of conventional street lights of plant into solar street lights. Reduce water consumption by introducing STP & usage of treated water for gardening. Nil 5 out of 15 lights are solar in 2015 Requirement : 220 KL/Month 25% of Green Belt in surrounding in out of 15 lights are solar in Requirement reduced to 160 KL/Month in Tree Plantation Future Plan Description Increase green belt of plant from 25% to 45% All 15 Street lights to be converted to solar lights. Target Fy.17 Dec-2017 Initiatives Made the transporter to set up tyre air pressure checking infrastructure in our premises before releasing vehicles after loading. Frequency of checking air pressure not followed by Drivers. Resulted in 6.7% improvement in mileage Amount of replication arising out of best practices implemented on energy front in Green Supply Chain. Benefits achieved through Green Supply Chain initiatives STP ETP Acid Regeneration Plant (ARP) Water Balancing Year Project Taken Water Consumption Fy-14 Identification of Water wastage through water balancing, Installation of STP and reuse of Sewage treated water Water Consumption Benefits 250 KL/Day 160 KL/Day 90 KL/Day Fy-15 Re-use of ETP Treated Water 160 KL/Day 155 KL/Day 5 KL/Day Fy-16 Re-use of RO Rejected Water in Process 150 KL/Day 140 KL/Day 10 KL/Day Fy-17 Zero Liquid Discharge 140 KL/Day 100 KL/Day 40 KL/Day Fy-18 Rain Water Harvesting project to be completed by Jul 18 Water Saving in last 4 years : 150 KL/Day Specific fresh water Consumption reduced from 0.36 m3/mt to 0.19 m3/mt of Production