Development of a Cost- Management Information System. Presented by Alvaro Rozo on behalf of Katherine van Nes Hatch Ltd. Copyright 2014 OSIsoft, LLC.

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1 Development of a Cost- Effective Energy Management Information System Presented by Alvaro Rozo on behalf of Katherine van Nes Hatch Ltd. Copyright 2014 OSIsoft, LLC.

2 ArcelorMittal Hamilton East (AMHE) Energy Management Information System Presentation Topics Project Background Approach Components of an EMIS Components of the AMHE EMIS Hamilton East Montreal Project Cost Effectiveness Highlights Copyright 2014 OSIsoft, LLC. 2

3 Focus on Energy Approximated Operational Costs (Mining) 20% 15% 5% 30% Sustaining Capital Energy Labour Consummables 30% Other Copyright 2014 OSIsoft, LLC. 3

4 ArcelorMittal Hamilton East Part of ArcelorMittal Long Carbon North America Produces variety of steel wire products Renown for cold heading products and oil-tempered wire Copyright 2014 OSIsoft, LLC. 4

5 Copyright 2014 OSIsoft, LLC. 5

6 Project Drivers Small facility Several million on natural gas and electricity costs Natural Gas (including steam) accounting for 85% of energy consumption (GJ) Electricity disproportionately accounting for 50% of overall cost Expected savings 5 8 % Copyright 2014 OSIsoft, LLC. 6

7 Energy Management Audit Benchmarked AMHE energy management practices via ISO50001 gap analysis Identified and ranked preliminary energy savings opportunities Preliminary energy models created Energy drivers determined Preliminary implementation plan and architecture (cost assessment) Feasibility of EMIS examined Paid for via OPA Industrial Accelerator program Copyright 2014 OSIsoft, LLC. 7

8 EMIS Audit Options $ Savings Note Copyright 2014 OSIsoft, LLC. 8

9 Project Approach WP 01 - WP02 - WP03 - WP04 - Foundational Activities Energy Metering Foundational activities to set basis for implementation pe e tato of EMIS Stage Gate Review Budget Schedule Implementation Resource Reqts (iti) and RASCI update Energy metering specification, procurement and installation Site data collector Networking to site data collector Configuration and testing of tags in Centralized Historian i WP03 EMIS Implementation and Testing Configuration Internal Testing User Acceptance Testing WP04 EMIS Commissioning and Handover System Commissioning User Training System Handover Plan Review Implement $ Savings Note Copyright 2014 OSIsoft, LLC. 9

10 Components of an EMIS Energy Account Centers Meters and Inputs Data Capture and Integration Data Analysis and Reporting Management Systems, People and Procedures Source: Natural Resources Canada s Energy Management Information Systems Planning Manual and Tool Copyright 2014 OSIsoft, LLC. 10

11 Energy Account Centers Metering and Inputs Copyright 2014 OSIsoft, LLC. 11

12 Energy Account Centers Energy Account Centre (EAC): The organization level at which energy performance should be managed EAC Definition Principles: $ Savings Note Combined (i.e. all energy sources) Process Areas as starting point General mapping to finance cost centers Target largest AMHE energy drivers Maximum information / minimum cost Copyright 2014 OSIsoft, LLC. 12

13 Typical Mining EACs Primary Energy Secondary Energy Account Account Centre Centre 1 Mining Drilling Blasting Excavation Transport Handling of waste rock Dewatering 2 Crushing & Pi Primary Crushing Conveying Pebble Crushing Conveying Primary Energy Secondary Energy Account Account Centre Centre 3 Mill Processing Grinding Gravity Recovery Screening & Thickening Leach/Carbon in Leach Carbon Stripping Cyanide Destruction Tailings Reclaim 4 Surface Camp Water & HVAC Facilities Water Treatment Plant Oxygen Plant Copyright 2014 OSIsoft, LLC. 13

14 A Note on Metering Meter Identifier Location Description 1 Substation 'C' 61 frame East 61 frame West Meters are expensive 62 frame 63,64,65,66 Frames Strategic planning in 2 Substation 'C' Oil Temper identified derived and Stabilizer Drive / Strander needed meters 3 Substation 'D' ' 23,24,25,26,27,28, Frames $ Savings Note 4 Substion 'A' Stabilizer Heating Wire Mill South (30,31,34 frame) Surface Furnace & Rx Gen 5 OldBoiler Room Kaeser Compressor Main Natural Gas Meter 6 Substation 'B' 13 Frame #1 Cleaning line 7 Substation 'B' 14 Frame 8 #2 Cleaning Line #2 Cleaning Line & #3 Crane Copyright 2014 OSIsoft, LLC. 14

15 Data Capture and Integration Copyright 2014 OSIsoft, LLC. 15

16 AMHE Site Characteristics 10 separate process areas Over 50 active energy consumers Electricity, natural gas, steam Minimal plant floor data collection Equipment independently controlled PI System infrastructure in AMM/Contrecouer (No PI components in AMHE) Existing Ekho installation in Contrecouer Copyright 2014 OSIsoft, LLC. 16

17 Resultant Architecture $ Savings Note Copyright 2014 OSIsoft, LLC. 17

18 PI Infrastructure No additional onsite physical infrastructure Connection to sub-metering (no PLCs) Bring back all available variables Detailed variable analysis Calculations Derived meters (today and future) Totalizations in required contexts (kw to kwh, flow to scf/lbs) Conversion (steam to natural gas) Copyright 2014 OSIsoft, LLC. 18

19 PI Infrastructure Future Opportunities Leverage Asset Framework and Asset Framework Templates Leverage Enhanced Calculation Engine and Templates Element Attriutes Copyright 2014 OSIsoft, LLC. 19

20 Data Analysis and Reporting Copyright 2014 OSIsoft, LLC. 20

21 AMHE Key Functionality 1. Reduced base load 2. Reduced d variability (against energy drivers) 3. Increased efficiency (via operational opportunities) Copyright 2014 OSIsoft, LLC. 21

22 Specific Functionality Geared to AMHE Phase 1 Phase 2 $ Savings Note Phase 1 Copyright 2014 OSIsoft, LLC. 22

23 Ekho Functionality PERFORMANCE MANAGEMENT, KPI S, OEE Operational Management and Intelligence Software PRODUCTION HEALTH & SAFETY DOWNTIME MAINTENANCE QUALITY ENERGY MANAGEMENT FOUNDATION MODULES Copyright 2014 OSIsoft, LLC. 23

24 Management Dashboard Copyright 2014 OSIsoft, LLC. 24

25 Energy Consumption Copyright 2014 OSIsoft, LLC. 25

26 Energy Conservation Measure Copyright 2014 OSIsoft, LLC. 26

27 Energy Intensity and Baseline Calculation Copyright 2014 OSIsoft, LLC. 27

28 CUSUM Analysis Copyright 2014 OSIsoft, LLC. 28

29 Wrap Up Cost Effective EMIS Development Audit Options analysis Funding Stage gate review following planning EAC definition iti A dit fi Meter placements Meter selection Architecture Functional Requirements definition geared to need Ontario Power Authority Industrial Accelerator Program - Audit financed - Horizon Utilities 80% up to $75,000 - Union Gas 50% up to $100,000 Copyright 2014 OSIsoft, LLC. 29

30 Katherine van Nes, P.Eng, PMP Information Management Consultant / Project Manager Hatch Engineering Copyright 2014 OSIsoft, LLC. 30

31 Brought to you by Copyright 2014 OSIsoft, LLC.

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