Maximising Refinery Margin with Minimum Capex: Foster Wheeler s Energy Management Solution

Transcription

1 Maximising Refinery Margin with Minimum Capex: Foster Wheeler s Energy Management Solution Asia Technology Forum, Bangkok 10 th 11 th October 2012 Damon J Hill Mike Whitling Vice President Global Refining Manager Asset Operations & Consultancy

2 Energy Management Agenda Objectives Reduce energy consumption, improve energy performance Methodology Development of energy management options Screening of options and engineering development Improving operations Case study results Reduced Energy Consumption = Improved Refining Margins 1

3 Energy Management An Holistic Methodology for Energy Management A complete Energy Management picture Data Collection Understand Current Situation Set Objectives Develop Options Evaluate & Develop Roadmap Implement DEFINE DEVELOP DELIVER Minimise energy consumption within capital cost limits 2

4 Energy management What does it mean? It can mean all of these and more Increasing insulation and repairing steam leaks Ensuring best practice energy performance every day Optimising the utilities Buying cheaper (feedstocks and spares by improved planning) Adding a new heat exchanger to improve energy performance Build / increase cogeneration Typical questions How am I performing relative to my peers? Which opportunities are available for my plant? How do I evaluate and prioritise these opportunities? What target for improvement makes sense for me? How do I collate all the opportunities into a coherent strategy with appropriate plan and timeline? What resources will I need? Where are the important quick wins? Foster Wheeler

5 Objectives What do we want to achieve? Reduce refinery energy consumption Through improvements in heat recovery and heat integration Energy utilisation and recovery of low grade heat Improve Solomon Energy Intensity Index (EII TM ) Headline figure which has industry-wide attention Reduce carbon emissions Can provide additional incentives in some cases Implement projects with short payback times Appropriate investment level Consider construction issues / risks 4

6 Methodology Three-phased approach 1. Development of energy management options Data collection, energy workshop Modelling of key process units Benchmarking, energy targeting and pinch analysis Development of a range of options 2. Screening of options and engineering development Equipment sizing and costing Economic evaluation and ranking of opportunities Energy improvement road map 3. Operations impacts takes the energy programme a step further Operational review, key performance indicators and their effectiveness Organisation competencies, methodologies, effectiveness Functional specialist operations group, performance assurance Performance and plant management, strategic plans Maintenance, turnarounds, equipment, reliability 5

7 Development of energy management options Time horizons approach Energy management workshop Interactive comparison of current energy management versus best-in-class Uses time horizons approach Response Time Years Months/Weeks Days Hours Building Planning Scheduling Operations Energy Efficiency Event New plant designs Retrofits for energy reduction Feedstock selection Maintenance planning Operating plan Utilities contracts with suppliers Equipment selection Utility nominations Process/Utility equipment loading Operating set up Best practice performance Load shedding / scheduling Contract monitoring/penalty avoidance The best companies incorporate energy management into everything they do Minutes Control APC / RTO APC = advanced process control. RTO = real time optimisation. 6

8 Options investigation Equipment and Design Studies and Improvement Opportunities Energy and the link to CO 2 Fired heater air preheat Air cooling versus water cooling Potential studies Advanced process control systems Steam and power system optimisation High pressure/ low pressure interfaces CDU / VDU pinch analysis Inter-unit integration (hot rundowns) Low grade heat recovery study 7

9 Screening of options and engineering development Typical options Low or non-investment options Changed operating conditions Stream re-routing, steam / power balance changes Operating procedures, monitoring KPIs, real time optimisation Investment options might include Preheat train reconfiguration, sometimes with additional surface Reactor unit feed / preheat exchanger Recovery of waste heat New column feed location Consider New / revamped equipment sizing, tie-ins Constructability (equipment lifts / movement) & plot location (lines, layout) Project implementation (turnaround schedule, delivery times, down-time) Cost estimates and economic analysis Ranking the opportunities 8

10 Added value from Engineering input Constructability and layout review 9

11 Meeting your Hydrogen Needs Hydrogen Management Approach Hydrogen management is the control and awareness of opportunities and issues relating to the supply and demand of hydrogen The hydrogen management approach requires: A thorough knowledge of the existing refinery hydrogen balance and the operating scenarios of the refinery, including start-up and shut-down scenarios. Appropriate tools such as process optimisation software, LP modelling and hydrogen pinch to assist in short- and long-term planning decisions. Ability to identify and evaluate potential projects over a future time frame. Consideration of future hydrogen requirements. 10

12 Meeting your Hydrogen Needs Hydrogen Management : A structured approach by FW Study basis / site hydrogen balance Current refinery balance (LP model) Project targeting / identification Hydrogen recovery from various refinery off-gases Integrated off-gas utilization Future hydrogen demand Technology developments Hydrogen pinch Revamp opportunities Project evaluation ROI Capex / opex cost reduction Plot limitation Shutdown timing Minimum investment (maximize existing equipment) Project execution Operability / constructability Safety / schedule 11

13 The man machine interface Operational impact Man machine interface sounds like a snappy catch phrase! The machine is only as good as the person who runs it! During periods of low margins and limited capital investment, owners seek low-cost and quick-payback performance enhancement opportunities Historically, as part of a longer-term asset performance enhancement process, many owners seek structural organisational savings based upon de-manning over a longer period of time The challenge for achieving shorter-term performance enhancement is to selectively assess operations practices and restructure the operator workforce to place accountability for specific performance areas directly with selected operators on a 24-hour per day basis 12

14 The man machine interface Operational impact Fringe benefits of operator buy-in and proactive commitment to energy improvement: Improved housekeeping Competency enhancement Improved management skills Above all.... pride 13

15 The man machine interface Operational impact Operational review Current energy optimisation tools and procedures, and their effectiveness Traffic light indicators / flue O2 / exchanger k values / steam / fuel etc Objectives and targets, including key performance indicators (KPIs) Real time performance management / unit specific KPIs Current energy initiatives Organisation competencies Skills and training Make energy efficiency a core training topic Operator involvement Mentoring of less experienced operators Organisation structure and responsibilities Energy management roles and include energy in job descriptions 14

16 The man machine interface Mechanical impact Maintenance review Philosophies and strategies preventive, condition-based, prioritisation Procedures repair or replace Turnaround planning Maintenance records Quality of records Analyse for repeat failures Persistent failures root cause analysis Equipment Criticality rank based on energy impact? Include energy in risk ranking matrices Reliability impact on efficiency for example, pump drive efficiencies when switching pumps on routine basis etc 15

17 The man machine interface High-level assessment Strategic plan Energy management system strengths and weaknesses Strategy to deliver business management improvement Address the robustness and value of refinery energy management systems: are they fit for today s purposes, not a legacy from the last time energy efficiency really mattered? Functional specialist operations groups Selectively restructure operator workforce & create groups in each shift Accountable for specific performance areas on 24 hour focus eg antifoulant / corrosion inhibitor additive optimisation Maintenance performance Philosophies & strategies include energy considerations Criticality include energy in ranking process Reliability impact of efficiency (e.g.. pump drive efficiencies) 16

18 Optimising Assets Recent Case Studies Huge Savings Typical Payback in Less than a Year CNOOC Limited Optimize energy consumption in the Guang-Dong grassroots refinery during design stage Final refinery improved design achieved EII = 65.3 (from initial EII = 71) Reduction of EII by 6 points equivalent to $16 million/year in energy costs Final design is capital neutral Samsung / Total General Chemicals Existing asset built in 1997 huge increase in energy costs Ideas developed across whole complex, including series of minor capital projects Over $12 million/year in energy savings Investment of only $9.1 million in minor projects 17

19 Case Study Preem AB I-Energy Improvement Study Preem s objective is to be one of Europe s most efficient refinery systems Site Energy Improvement Study Foster Wheeler and AspenTech combined their operational, design and simulation knowledge to study the advantages that cultural change, facility revamp or design of new equipment would provide. The projects combined realised savings: Refinery energy reduction of 10 % Total benefit US$ 35m year on year Payback periods all <18 months Preem s projects progressed to BED / FEED phase: These projects have been awarded to Foster Wheeler CDU heat exchanger reconfiguration Offgas redirections to HPU Packinox replaces shell and tube on CCR HDT preheat feed to furnaces 18

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