Heat Recovery Technology Applied to Direct Reduction (DR)-Process, Challenges and Benefits

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SCHMIDTSCHE SCHACK Division of Former ARVOS-GROUP ALSTOM Power Energy Recovery GmbH Heat Recovery Technology Applied to Direct Reduction (DR)-Process, Challenges and Benefits S. Taghavi /M. Larin Kish Island/Iran, 14-16 September, 2015

AGENDA Introduction ARVOS -Group SCHMIDTSCHE SCHACK Division (former ALSTOM Power Energy Recovery GmbH) Technologies and capabilities for industrial energy recovery applied to various processes Product line and services for Direct Reduction processes Case study Further steps & conclusion Seite 2

ARVOS GROUP / COMPANY HISTORY obtained Ljungström license 1934 REKUPERATOR SCHACK GmbH founded 1931 Schmidt sche Heissdampf Gesellschaft-mbH founded in 1910 ABB Abgastechnik GmbH 1995: founding of SHG Schack GmbH end of 2001 Alstom Power Energy Recovery GmbH April 2014: Alstom sold Steam Auxiliary Components to private equity company Triton September 2014: ARVOS Group was founded by Triton consisting of 3 divisions 23.09.2015 Seite 3

NEW OWNER & NEW (OLD) NAME TRITON (a German / Scandinavian private equity company) took over the ALSTOM Auxilliary Components Group with three divisions and about 1,500 employees with revenues of about 500 Mio. EUR/a on March 31, 2015. Seite 4

ARVOS GROUP 3 DIVISIONS ALSTOM Power Steam Auxilliary Components ARVOS Group Industrial Mills RAYMOND BARTLETT SNOW Heat Transfer Solutions SCHMIDTSCHE SCHACK Air- and Gas Preheater LJUNGSTRÖM ALSTOM Power Energy Recovery GmbH ARVOS GmbH Seite 5

SCHMIDTSCHE SCHACK DIVISION BUSINESS OVERVIEW & PRODUCTS Transfer Line Exchangers Waste Heat Steam Generators High Temperature Products Double Tube / Oval Header Schmidt sche TLEs for Ethylene Plants Multitubular Round Type TLEs Linear Type TLEs Bathtub Type TLEs Process and Flue Gas Cooling Systems for Reformer Plants WHSG for Chemical and Metallurgical Plants Cooling Systems for Ammonia Combustion Partial Oxidation Components for Coal and Liquids Gasification Recuperators Radiation Type Convection Type Shell & Tube Type Heat recovery system for various processes, e.g. DR-Process Fired Heaters Combustion Systems for LCV Gases Quick Quencher Type TLEs Advanced Systems Thermal Oxidizers 23.09.2015 Seite 6

FROM KASSEL, WORLDWIDE SUCCESSFUL ARVOS GmbH SCHMIDTSCHE SCHACK Division 430 employees, order intake more than 200 Mio. Kassel Headquarter & Workshop SCHMIDTSCHE SCHACK Düsseldorf SCHMIDTSCHE SCHACK Kobe, Japan SCHMIDTSCHE SCHACK Wexford, PA SCHMIDTSCHE SCHACK Heidelberg Holding Fabrication in Kassel & Lohfelden, Germany 23.09.2015 Seite 7

SCHMIDTSCHE SCHACK ARVOS LEADER IN TECHNOLOGY Specific competences in process heat transfer for high temperature and high pressure applications e.g. DRI, Steam Reforming, Ethylene production Proven Schack design applied to DR heat recovery system Own technology platform, Oval header/ Double Tube design applied to transfer line exchangers Suplex tube sheet design, applied to steam reforming gas cooling system Schack Air preheater applied to carbon black process Our equipment are key components of production processes. 23.09.2015 Seite 8

PRODUCT PORTFOLIO Industry Segment Steel Industry Process DRI Others Equipment Convection Recuperators WHRS Radiation Recuperators WHRS Services Revamp activities Re-Design, Up-grade Inspection during shut-down Assistance through local team Seite 9

DR-PROCESSES AND LICENSORS Shaft Furnace Processes dominate by over 90% PERED Direct Reduction Process Seite 10

PRODUCT LINE FOR DR PLANTS ARVOS Scope of Supply Combustion air heater Feed gas heater Process natural gas preheater Furnace natural gas and fuel gas preheater Steam generator (HYL, PERED Process) Steam superheater (HYLIII Process) Top gas heater (HYL III Process) Engineering of interconnecting pipes Engineering of additional equipment (process gas mixer, dilution air mixer, ejector stack, etc.) Seite 11

KNOWLEDGE & SKILLS Basic & Detail Engineering Thermal Design Mechanical Design Numeric Modeling Value Engineering Integrated Services Redesign & Revamp Improving heating surfaces Replacement services Field services, Supervision, Inspection & Training Seite 12

PRODUCT LINE FOR DR PLANTS Schack Waste Heat Recovery System (WHRS) Scope of deliverable equipment: Main air recuperators (hot) Main air recuperators (cold) Feed gas heat exchanger Natural gas heater Top gas fuel heater Scope of additional engineering: Basic and detail engineering of casing Basic and detail engineering of refractory Detail design of the interconnecting pipework Engineering of steel structure Engineering of ducts within the battery limit Seite 13

SCOPE OF SUPPLY FOR DR-PROCESS GENERAL Waste Heat Recovery System (WHRS) Conventional design Conventional design arrangement Heat recovery system installed on foundations All ducts are connected from the top In case of maintenance of bundles all ducts need to be removed Up-side down design arrangement Up-side down design Heat recovery system is installed on steel structure All ducts are connected from the down side. In case of maintenance the bundles can be pulled out from the top without removing the ducts, time saving maintenance!! Seite 14

INSTALLED CAPACITIES AND REFERENCES DIRECT REDUCTION IRON (DRI) SCHACK references for DR-Plant in Iran Miyaneh Shahid Kharazi I Shahid Kharazi II Khorasan I Khorasan II Ghaenat ZamZam I ZamZam II KSC Revamp I Shadegan Ghadir Arfa Baft Neyriz South Kaveh SKS Hormozgan HSCO Saba HBI Seite 15

SUCCESSFUL COLLABORATION Yek Dast Seda Nadare (One Hand Can't Clap!) Basic Engineering Detail Engineering Material Supply Pre-fabrication Logistics & Delivery Supervision Material Supply Manufacturing Logistics & Delivery Installation Construction Long-lasting relationship, more than 15 years Seite 16

AGENDA Introduction ARVOS Group SCHMIDTSCHE SCHACK Division (former ALSTOM Power Energy Recovery GmbH) Technologies and Capabilities for Industrial Energy Recovery Applied to Various Processes Product Line and Services for Direct Reduction Processes Case Study Further Steps & Conclusion Seite 17

CASE STUDY Introduction Problems: After a few years of operation repair work has been done in the following bundles of a waste heat recovery system for a DRI plant (1.7 Mio t/a): Hot combustion air preheater Top gas fuel preheater Cold combustion air preheater Objectives: Evaluation of current operating data for a period of at least 3 months Verification of thermal design for different load cases Modification and optimization of heat exchanger design Delivery and installation of modified bundles Seite 18

FAILURE ANALYSIS Failure / damages (typical pictures for Hot APH U-type design ) Tube cracks on sides of bends Collision traces on tubes Ovaling / flattening of the tube bends Collision traces on rear floor brick wall Seite 19

FAILURE ANALYSIS How to approach? Simulations and investigations needed to be done by: thermal analysis Tube wall temperature mechanical analysis All investigations were based on the design and operating data sets for existing heat recovery system by applying proven in-home methods. All data provided by end user. First focus on high value bundle (Hot APH) for further investigation, however, thermal design of the whole heat recovery system was re-calculated. Seite 20

THERMAL ANALYSIS Operating data heat & mass transfer Hot APH (165 t DRI/h): calculation operation deviation v FLUE GAS 64000 Nm³/h 61500 Nm³/h +4.0% T FLUE GAS, INLET 1050 C 1035 C +1.5% T FLUE GAS, OUTLET 795 C 790 C +0.6% v COMB. AIR 45200 Nm³/h 46200 Nm³/h -2.0% T COLD AIR, INLET 200 C 200 C T HOT AIR, OUtLET 650 C 650 C Combustion air leakage is detected and confirmed. Seite 21

MECHANICAL ANALYSIS Thermal expansion of tube (U-tube design) The change in the tube length (DL) is calculated as follows: Cracks of tubes and flattening of bends are caused by the difference in thermal expansion of the outer and inner tubes of U-bundles starting at a certain length of tubes. g < 90 < b Dl << DL Challenging for plant capacity increase Seite 22

MECHANICAL ANALYSIS Finite Element simulation (U-tube design) Start-up / shut down overheating Maximum Stress Intensity ~ 4250-4750 psi Allowable Stress of Material ~ 3500-5300 psi Seite 23

MECHANICAL ANALYSIS Simulation vs. practice (U-tube design) Locations of real cracks for the tubes of hot combustion air preheater coincide with calculated points of the maximal stress intensity. Seite 24

DESIGN REVIEW / SCALE-UP Transfer of experience for steam reforming plant Successful transfer of experience needs: similar application environment comparable bundle dimensions ARVOS SCS designed, constructed and supplied heat recovery systems for steam reforming plants, such as ammonia, hydrogen and methanol. These heat recovery systems operate with larger dimensions than the ones for DRI plants. Typical dimensions of flue gas duct: (w) 5.4 m x (h) 7.9 m (H 2 plant) (w) 3.3 m x (h) 4.8 m (DRI 2.0 Mio t/a) Seite 25

DESIGN REVIEW CFD / FEM simulations Design review is a multi-step and iterative process Tasks: Evaluation of fluid flow streamlines and temperature distribution by Computational Fluid Dynamics (CFD) analysis Identify additional potential for increasing of heat transfer efficiency by CFD analysis Schack design Mechanical assessment by Finite Element Methods (FEM) analysis Seite 26

DESIGN MODIFICATION Optimised construction Achieved by: Optimized secondary heating surfaces (type & locations) Alternative tube materials (overheating scenarios) Customized design (operation philosophy) Schack design Heating surface area remains unchanged. Seite 27

DESIGN MODIFICATION CFD / FEM simulations Design modification is a multi-step and iterative process Results: Decreasing tube wall and bottom box wall temperatures Optimized air flow distribution Improved heat transfer Schack design More uniform thermal stress distribution Seite 28

DESIGN MODIFICATION CFD / FEM simulations (tube wall temperature distribution) Lower temperature range (~ 30 C) than for original design Original design: hot areas at 1st pass Modified design: reduction of hot areas at 1st pass Seite 29

ACHIEVEMENTS Operating data new vs. old Hot APH (165 t DRI/h): after revamp before revamp deviation v COMB. AIR 43000 Nm³/h 46200 Nm³/h -7.0% T COLD AIR, INLET 200 C 200 C T HOT AIR, OUTLET 660 C 650 C +10 C v FLUE GAS 57000 Nm³/h 61500 Nm³/h -7.3% T FLUE GAS, INLET 1050 C 1035 C +1.4% T FLUE GAS, OUTLET 765 C 790 C -3.2% Achieved higher thermal efficiency (1-2%), accordingly reduced operation costs (natural gas / electric power consumptions). Seite 30

FURTHER STEPS FOR YOU Collaboration with us! 1. Contact ARVOS (customer) Submitting your inquiry / requests Defining objectives Providing operating data sets 2. Target evaluation (ARVOS) According to process & design parameters Determining the main equipment parameters 3. Technical discussion & clarification (customer & ARVOS) 4. Customized solution (ARVOS) Seite 31

Well done is better than well said. All you need is confidence and success is sure! LET S GET STARTED! Thank you for your attention www.schmidtsche-schack.com ARVOS Group I SCHMIDTSCHE SCHACK Division