Energy Efficiency in the Thai Steel Sector : S Efficiency Action Plan By Mr. Hin Navawongse Advisor Iron and Steel Institute of Thailand
Content Part 1 Energy conservation in the Past of Iron and Steel Industry Thailand (1997 to 2010) Part 2 Energy conservation in the Future (2014-2019) 1
Part1 Energy conservation in the Past of Iron and Steel Industry Thailand (1997 to 2010) 1. Awareness of energy Conservation of Iron and Steel Industry in Thailand since 1997 2. Survey of Specific Energy Consumption (SEC) of Steel Sector during 1990-2004 and 2005-2010 3. Reduction of SEC of interval 12 years 2
1. Awareness of energy Conservation of Iron and Steel Industry in Thailand since 1997 Energy Conservation in Iron and Steel Industry in Thailand has been implemented after the financial Crisis in 1997. Many energy conservation measures and research work have been done by the Iron and Steel Institute of Thailand () and Iron and Steel Club, Federation of Thai Industry. has carried out the survey of the energy consumption of the Steel Sector in 2 intervals of 6 years each, from 1999 to 2004 and 2005 to 2010. 3
2.Survey of Specific Energy Consumption (SEC) of Steel Sector during 1990-2004 and 2005-2010 3.Reduction of SEC of interval 12 years The survey covers 15 processes. Average value of SEC each internal shows that most processes have decreased (MJ/ton-product). Table below shows the SEC (MJ/t) of each interval and percentage decrease item Process SEC (MJ/t) Av. For 1999-2004 Av. For 2005-2010 Reduction % decrease 1 Re bar with EAF 5059 5019-76 -1.49 2 Re bar without EAF 2075 1736-339 -16.33 3 Wire-rod with EAF 6442 4791-1651 -25.6 4 Wire-rod without EAF 3212 2303-909 -28.3 5 Section with EAF 6051 4771-1280 -21.15 6 Section without EAF hot formed 2886 NA - - 4
Part 1 item Process SEC (MJ/t) Av. For 1994-2004 Av. For 2005-2011 Reduction % decrease 7 Hot-Rolled Coil with EAF 4710 4857 +147 +3.1 8 Hot-Rolled Coil without EAF 2246 2438 +192 +8.5 9 Cold-Rolled Coil 1787 1968 +181 +10 10 Hot-Dip Galvanized steel sheet 1439 1262-177 -12.3 11 Electro-Galvanized steel sheet 1300 1217-83 -6.3 12 Tin-Plate, Tin-Free 876 685-191 -21.8 13 Cold-formed section 21 NA - - 14 ERW Pipe 235 240 +5 +2 15 Galvanized Pipe 1670 2182 +512 +30.6 5
Part2 Energy Conservation in the Future (2014-2019) Thailand steel industry structure Energy consumption in Thai Steel Industry Plan for energy conservation Energy management in steel industries in Thailand 6
Thailand steel production Thailand production route today Source : World Steel Association 7
Thailand steel industry structure Iron making Steelmaking Long Product Finishing & Coating Forming End Users Scrap Hot-Rolling Cold-Drawing 1,000 Mills recycle 1 Mill TATA (Mini- Blast Furnace No-operation 16 Mills TATA G Steel GJS SYS TRIUMP Etc. Production:4.2 m T Import:3.7 m T Export:0.2 mt Demand:7.7 m T Import Russia, Ukraine, Turkey, Brazil Export Vietnam, Philippines, India, Taiwan Source: Iron and Steel Institute of Thailand ~ 50 Mills TATA Sahaviriya Tycoon Etc. Production: 3.7 m T Import: 1.7 m T Export: 0.8 m T Demand: 4.7 m T Flat Products Hot-Rolling Cold-Rolling Coating 3 Mills SUS TCRSS Bluescope 5 Mills G Steel GJ Steel Sahaviriya LPN Production: 3.9 m T Import: 3 m T Export :0.3m T Demand : 4.2 m T Import Japan, S. Korea, Australia, China Export Vietnam, Malaysia, Laos ~ 100 Mills Production: 1.7 m T Import:0.7 m T Export: 0.1 m T Demand: 1.6 m T Import Japan, S. Korea, Taiwan, China Export China, India, Italy, Indonesia ~ 15 Mills Bluescope Thai Tin Plate Production: 0.8 m T Import: 2.2 m T Export: 0.1m T Demand: 2.9 m T Import Japan, S. Korea, Taiwan, China Export Vietnam, Laos, Myanmar, Hong Kong Machining Bending Cutting Welding Forging Heat Treatment Etc. Construction 54% Automobiles and parts 16% Machinery and Industrial Products 13% Electrical Appliances Packaging 12% 5% 8
Content Thailand steel industry structure Energy consumption in Thai Steel Industry Potential for energy conservation Energy management in steel industries in Thailand 9
Cost Structure of Thai Steel Industries Long products Flatted products Other Source: Iron and Steel Institute of Thailand 10
Structure of iron industry in energy consumption in Thailand Source: Iron and Steel Institute of Thailand 11
Structure of iron industry in energy consumption in Thailand Terminology referring to the 15 process Semi-finished products = Product from EAF to produce Billet+Bloom+Slab HR long products = Re-bar without EAF +Wire-rod without EAF +Section HR flat products = HR-Coil without EAF CR flat products = Cold-Rolled Coil Coated sheet = Hot Dip Galvanized steel sheet +Electro Galvanized steel sheet +Tin Plate, Tin Free Galv. Pipe = Galvanized Pipe Pipe + Cold formed = ERW Pipe +Cold Formed Section Source: Iron and Steel Institute of Thailand 12
Demand for steel in Thailand Thailand apparent steel use ( 000 Tonnes) Steel market has increased 4.5% from year 2012 20,000 18,000 16,914 16,000 14,000 12,000 10,000 8,000 12,661 13,876 12,154 12,718 13,528 10,644 13,871 14,411 17,676 6,000 4,000 2,000-2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f Production Import Export Apparent steel use Source: Iron and Steel Institute of Thailand 13
Forecasting the demand for steel consumption in Thailand (2011-2031) 30,000,000 25,000,000 24,998,627 20,000,000 15,000,000 10,000,000 14,538,239 9,793,655 16,133,592 8,865,035 5,000,000 4,744,584 0 Long product Flat product Total steel demand Source: Iron and Steel Institute of Thailand 14
Content Thailand steel industry structure Energy consumption in Thai Steel Industry Plan for energy conservation Energy management in steel industries in Thailand 15
Action to reduce energy use in the steel industry, Thailand. 1. The master plan for managing the energy consumption in the steel industry of Thailand 2. The action plan for energy conservation in Thailand steel industry in the short term of 5 years (2014-2019) Opportunity of energy reduction Roadmap Technology catalog for energy conservation 16
2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E Energy Consumption (ktoe) The master plan for managing the energy consumption in the steel industry of Thailand Energy Consumption: Master Plan Forecast for 20 year 1,300 1,200 1,100 1,000 Actual Energy Consumption of Thai Iron & Steel Industry BAU, According to Master Plan 2012 Energy Consumption Target, According to Master Plan 2012 2012: Drawing Master Plan Nowadays 1144 30 16 1087 1215 97 57 1066 175 100 1275 985 290 ktoe 900 901 800 700 Actua l 833 Master Plan Semi-finished Production Hot rolled Production Cold rolled Production Coated Production Piped Production 17
Opportunities to reduce energy consumption in steel industry in Thailand KTOE 450 400 350 300 250 200 150 100 50 0 Energy Consumption classified by group (KTOE) 381 408 Opportunity of reduced Energy Consumption by Group (KTOE) Cold Rolled 4% Hot Rolled 47% Steel Making Hot Rolled Cold Rolled Coated Other 78 Coated 1% Energy consumption (ktoe) 22 Other 0.32% Steel Making 48% 5 Group Cal. Final Energy Opportunity of reduced Energy Consumption (%) Steel Making 28.78% Hot Rolled 25.93% Cold Rolled 10.99% Coated 8.00% Other 14.00% Total 25.34% First priority processes to tackle with are EAF-melting and Hot-rolling Ref: The survey of energy consumption in the steel industry in Thailand. 18
Energy Saving Opportunity for Thai Iron & Steel Industry OTHER 86 10 4 COATED 92 3 5 COLD ROLLING 89 5.5 5.5 2012 Best Practice Energy Management New & Emerging Technology HOT ROLLING 74 10 16 STEEL MAKING 71 5.5 23 0 20 40 60 80 100 Opportunity for Energy Saving (%) 19
Energy Consumption (ktoe) The action plan for energy conservation in Thailand steel industry in the short term of 5 years Energy Consumption of Thai iron and steel industry: BAU and Energy Saving target 1400 1,291 BAU based on MP Production Growth: 2014 1200 1000 800 1,111 1,149 1,082 855 Energy Saving Target based on MP Production Growth: 2014 Start drawing Master Plan 920 937 955 971 907 909 915 930 901 697 711 982 937 45 ktoe (4.6%) 600 Start drawing 5 yearaction Plan 400 200 Actual Forecast 0 Note MP : Master Plan 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 20
SEC improvement goal by Group of Process Period (5 years) Group Ref SEC % [MJ/ton] [MJ/ton] reduction Semi-finished Product 3,374 3,269.4 3.10% HR, Long Product 1,967 1,820.6 7.44% HR, Flat Product 2,367 2,264.7 4.32% CR, Flat Product 1,963 1,911.57 2.62% Gal.sheet (HDG+EG) 1,008 956 5.16% Galv.pipe 1,670 1,475.8 11.63% Pipe 235 188 20.00% 21
Catalog of energy saving technologies in Thailand steel industry. 22
Benchmarking of SEC for World Best Practice, Thailand Item Process SEC, Final Energy (GJ/t-product) World BPT Thailand (Avg) 1 Electric Arc Furnace 2.40 3.30 2 Continuous casting 0.10 3 Hot rolling strip 1.60 1.97 4 Hot rolling Bars 1.80 5 Hot rolling Wire 2.10 2.37 6 Hot rolling Section 7 Cold rolling 1.50 1.96 8 Coated sheet 1.01 9 Galvanized pipe 2.18 10 Pipe & Cold form 0.06 23
Content Thailand steel industry structure Energy consumption in Thai Steel Industry Plan for energy conservation Energy management in steel industries in Thailand 24
Thailand s Existing Policy & Measures to support the Energy Efficiency Improvement Mainly focused on the Financial Support & Voluntary Program Source: The Department of Alternative Energy Development and Efficiency (DEDE) is the government agency responsible for implementing EE under the ENCON Act. 25
Training Information Regulation Standard Practice Tax Incentive Soft Lone ESCO Demonstration Dissemination DSM Bidding Research & Project Implement Most important Important Less important 2558 2559 2560 2561 2562 Energy management Process improvement High efficiency technology Investment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Efficient Ladle & Tundish Preheater Scrap Preheating o o o o Using C from Plastic and Tires Scrap Management o o o o o o Neural Network o o o Slag Foaming o o o o Continuous Scrap Feeding o o Ladle EAF Synchronization o o o o 27 26
Training Information Regulation Standard Practice Tax Incentive Soft Lone ESCO Demonstration Dissemination DSM Bidding Research & Project Implement Most important Important Less important 2558 2559 2560 2561 2562 Energy management Process improvement High efficiency technology Investment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Direct Rolling and Hot Charge o o o o High Efficiency recuperator o o Advance Descaling Nozzle Combustion Setting o o o o o Emulsion Fuel o o o Insulation of Furnace o o Air Compressor for Atomize air o o Oxygen Enrichment o o o Biomass Thermal gasification o o o Roller water cooling bottom furnace o o Emisspro o o Process Control o o o o 28 27
Training Information Regulation Standard Practice Tax Incentive Soft Lone ESCO Demonstration Dissemination DSM Bidding Research & Project Implement 2558 2559 2560 2561 2562 Energy management Process improvement High efficiency technology Investment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Combine line (Coated & Colour coated) o o o Solid State Welding o o o Solar Water Heater o o Submerged Combustion Burner o o o Turbulent Pickling o o o Ball Blowing Type o o Most important Important Less important 29 28
Training Information Regulation Standard Practice Tax Incentive Soft Lone ESCO Demonstration Dissemination DSM Bidding Research & Project Implement Most important Important Less important 2558 2559 2560 2561 2562 Energy management Process improvement High efficiency technology Investment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cooling Tower o o o o Oxy-Fuel Burner o o o Regenerative Burner o o o Boiler o o o o Compressed Air Management o o o o Combustion Setting o o o High Efficiency Recuperator o o o VSD AC, CT, Chiller, Pump o o o o Pump Management o o Solar PV o o o o LED Light o o o o Biomass Boiler o o o o Waste Heat Recovery o o o o 30 29
Tech Verification Survey Analysis & Synthetic Engineering M&V Process improvement Research and development program to increase energy efficiency (The action plan for energy conservation in Thailand steel industry in the short term of 5 years) Item Project Name Budget (Million-Baht) Duration (month) Implementation Year 2558 2559 2560 2561 2562 Scope of Work 1 Scrap Management (Improve scrap quality) 10 28 2 Neural Network for EAF 10 24 3 CONSTEEL Optimization 6 24 4 Slag Foaming 12 48 5 Ladle EAF Synchronization 9 18 6 Heat balance & Combustion setting 10 60 7 Direct Rolling and Hot Charge 18 36 8 BATs & Emerging for Steel Making & Hot Rolling 4 60 9 SOP for Utility management 4 60 10 Database & Evaluation of Energy saving (Iron and Steel) 8 60 11 Combine line (Coated & Colour coat) 18 36 12 Heat Recovery 30 60 13 Submerged Combustion Burner 10 24 14 Oxygen Enrichment 6 24 15 Energy Conservation Expert for Steel Industry 6 24 16 Gasified for replace of NG or HFO 6 36 31 30
To be Driven Continuously Working Together Towards a Common Goal 31
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