De-mystifying GHG Monitoring and Reporting Improved Mass and Energy Balances Using Sigmafine to Achieve Benefits from Compliance Patrick Truesdale Senior Solution Consultant Emerson Process Management Sigmafine Users Conference San Francisco, April 26, 2010 Copyright 2010, Emerson Process Management. 1
Presentation Objectives Industry Challenges Solutions Incentives (Current and Future) Wrap-up and Questions Copyright 2010, Visiant Pimsoft Inc. All rights reserved. 2
Global Warming: Fact or Fiction? 1. Greenhouse dates to Fourier (1824) 2. CO2 is not a pollutant but a plant food; halting all combustion will not measurably affect atmospheric CO2 1 3. 40 CFR Parts 86, 87, 89 et al. Mandatory Reporting of Greenhouse Gases; Final Rule has ca. 275,780 words (ca. 4.5 kg of 1.75 MT CO2e/ton paper 2 ) 4. A $1 gasoline price increase would reduce obesity and save 16,000 lives and $17 billion/year 3 Interesting points for debate BUT reality is that: 1. The largest refinery operating expense (ca 50%) is energy, 2. Major product loss is due to understatement of fuel production consumption 3. Loss Control and Energy efficiency i projects are TRIPLE WINNERS!!! Reduce Costs, Improve Safety, and Aid in Regulatory Compliance 1. Pierre R. Latour PhD. PE 3 rd Industry Forum, Hydrocarbon Processing, Houston, Dec. 3, 2009 2. Jim Ford, Carbon Neutral Paper Fact of Fiction? Climate for Ideas and Environmental Paper Network, 2009 3. Charles Courtemanche, Washington University, St. Louis, Sept. 10, 2007
The GHG MRR Challenge Major facilities: Petrochemical (X), Refineries (Y), Oil and Gas (W) Stationary combustion units (C) H2 units (P) Petroleum Suppliers (MM) Natural Gas Suppliers (NN) Measure CO 2, CH4, N 2 O (GWP = 1, 21, 310, ) Measurement standards and procedures to use Industry Accepted Standards ASTM, API, etc. Can use Mass Balance calculations in special cases Report CO2e (MT) only. Reduction levels to be developed Monitoring started January 1, 2010. First report due March 31, 2011 for CY 2010 Strict QA/QC, documentation and reporting required Penalties (Civil and Criminal) could arise
Emissions Defined What s Important? Combustion Process Fugitive
Meeting the challenge Most economical ways to meet GHR Regulations: 1. Enhance key equipment performance Control loops Measurement systems Identify and repair leaks 2. Improve energy efficiency of key combustion units Furnaces/Heaters Distillation Columns 3. Enhance loss control (business process and procedures) Follow established measurement standards Fiscal Controls and Legal Metrology Customs and Excise (FTZ), ATF (ethanol), etc Mass and energy balances (Sigmafine) Establish and monitoring KPI s
Follow Consensus Industry Standards Tanks Measurements: API MPMS Chapter 2 Tank Calibration API MPMS Chapter 3 Tank (Storage, Tank Cars, Marine Vessels, Hybrid) Gauging Flow Measurements API MPMS Chapter 4, Proving Systems API MPMS Chapter 5, Metering (Displacement, Turbine, Coriolis, Ultrasonic) API MPMS Chapter 6, Metering Assemblies API MPMS Chapter 14, Natural Gas Fluids Measurement Quality Measurements API MPMS Chapter 7, Temperature Determination API MPMS Chapter 9, Density Determination API MPMS Chapter 11, Physical Properties Data (CTPL Factor) API MPMS Chapter 12, Calculation of Petroleum Quantities Other AGA Gas Measurement OIML R117 Hydrocarbon Liquid Metering OIML R137 Gas Metering
Tank Gauging and Temperature Accuracy API Chapter 3.1B requirements API Chapter 7 requirements Lab Installed API Chapter 7 ±0.25 C/0.5 F ±0.5 C/1.0 F ISO 4266 part 4 ±0.25 C/0.5 F ±0.5 C/1.0 F OIML R85* N/A N/A 8
Step 1: Identify Custody Boundaries BOL Load Port Unload Port Load Port Raw Material Production & Supply Shore Ship Transportation Loss Ship Shore Shore Refining Complex Ship Unload Port Consumers Shore Ship Transportation Loss $ The Cash Register plus Upstream Emissions Logistics BOL
Step 2: Define Process Boundaries Example Ethylene Complex: Mass and Heat Balances Feeds (60%) Ethane (C2) Propane (C3) Butane (C4) Naphtha (C5 C12) Gas Oil (C10 C15) Steam (40%) Fuel Gas Quench Tower Quench Water Circuit 80 CC 1.5 bar Cracking Furnaces Fired Heater 350 C 1.5 bar Steam & Waste Heat Stea m 800-900 C 1.5 bar Cracked Gas Compressor Turbo 30 C Compressor Stea m Cold Box Cryogenic Distillation 10 C 1.5 bar -100 C 32 bar Demeth hani zer -10 C 30 bar Deethaniz er 20 C 5 bar 1.5 bar Drying and 10 C Chilling 10 bar Oil / Tar Fractionator Fuel Oil Tar -10 C 30 bar Ethylene and Propylene Refrigeration Systems Distillation 75 C 30 bar 50 C 2 bar Hydrogenation Reactor C2 Hydrogenation Depropan ni zer 70 C 8 bar 45 C 5 bar Debutaniz er -30 C 20 bar C2 Splitter -20 C 20 bar -6 C 20 bar 35 C 16 bar C3 Splitt ter 45 C 16 bar C3 Hydrogenation Hydrogen 1%-9% Methane 6%-28% (fuel) Ethylene 23%-76% Ethane 3%-20% (recycle) Propylene 3%-16% Propane 2%-10% C4s 2%-9% 90 C 5 bar Gasoline <1%-35%
Step 3: Validate/select Measurement Systems With poor instrumentation and procedures: = 1.5-2.5% Mass losses With average instrumentation t ti and procedures: = 0.7 1.5% Mass losses With good instrumentation and procedures: = < 0.5% Mass losses Pacesetter = <0.2% Pacesetter look at Solomon KPI; Others such Shell Global Services, Juran, etc.
Step 4: Develop KPI Reporting
Where are the Incentives? 10% Reduction: Industry Sector Process Energy: MM BTU/Ton Product $/Ton kg CO2e/Ton 2 (@$7/MMBTU) Petroleum Refining 1 4.4 3.1 23.4 Ethylene 15.0 10.5 80.0 1. Assumes 67.7% for combustion fuel and 25.2% from cat coke 2. For illustration purposes only. Estimated assuming Tier 1 calculations
Improving Accuracy: The Big Benefit Loss Category Measured % 1 Reality % 1. Custody transfer (receipt, shipments) 2. Flare, evaporation, spills/leaks, FCC coke make calculation, carbon dioxide, other 3. Fuel and H2 internal consumption understated not real oil loss but affects overall balances! 0.5 to 0.6 0.4 0.4 to 0.5 0.3 1.1 to 1.5 0.7 Total 2.0 to 2.6 1.4 Note: 1. Mass Basis converted from volume data. 2. 100,000 BPD; 5.8MM BTU/Bbl; $7 MMBTU; Tier 1 Calc; No CO2 trading credits
Measurement Losses: What is it worth? Assume 0.2% Loss Reduction Product Capacity Price Margin Utilization factor Amount Ethylene 900 kmt/yr 1 150 $/t 500 $/t 93% 47 774 $/hr Propylene 450 kmt/yr 1 150 $/t 500 $/t 93% 23 887 $/hr 1 hr $71 $ 661 0.2% $143/hr 1 yr $1 255 500
Energy Savings: Increased H2 Yields Patent: 6,758,101 B2; Jul 6, 2004 Objective: Control S/C ratio as close to 3.2 as possible but avoid going below Disturbance: Fuel gas C1 (77 85%); C2 (6.8 15); N2, CO also fluctuate Test: Std Orifice plus GC max error = 0.2; MMI (Coriolis) max error = 0.02 Benefits: Moving 0.2 ratio closer to limit worth 8 BTU/SCF of H2; 80 MMSCFD plant; $7 MM BTU gas $1.6 MM per year 1 1. Excludes CO2e benefits
Energy Savings: Heater Efficiency/Yields Fee d TI 066 Damper Actuator FIC 101 FIC 102 Draft Pressure FIC 103 PI 365 FIC 104 PIC 360B HIC 353D PIC 360A H306 TI 072 TI 073 PIC 359D TI 043 TI 075 TI 071 AIC 354D AIC 356D FIC 361 PIC 357D CO Analyzer TIC 362D O2 Analyzer Tube Temperature TI 067 TI 069 Key Operating Objectives Constant outlet temp Min excess air Maintain within constraints TI 069 TI 070 BTU AI 360 Product Fuel TIC 361 Pass Balance Multivariable Control Fuel Demand Air Demand Combustion Control
Energy Savings: Fired Heater Benefits Example: 100 mmbtu/hr heater; for illustration assume: Natural Gas = $7/Mscf Apply rule 40CFR 98 Subpart C: Tier #1 CO2e market value = $2/MT CO2e Natural Gas Natural Gas Item (MT/yr) Flow (scf/hr) Flow (Mscf/yr) Before Energy Savings 44,630.9 97,276 817,121 After Energy Savings 44,184.6 96,304 808,949 Delta 446.3 973 8,171 Savings $ 893 $ 6,809 $ 57,198
Energy Savings: Boiler Efficiency Figure 4 Desired O 2 Setpoint vs. Steam Load, f 3 (x), for Boiler 3 Burning Gas % Exce ess O2 16 14 12 10 8 6 4 2 0 0 10 20 30 40 50 60 70 80 90 100 % Steam Flow Original Setpoint New Setpoint Actual Data 125,000 lb/ hr 400 psig steam; 1% Fuel Savings; $140,000 000 per year ($7/ MMBTU)
Oil and Natural Gas Systems Separator Skid Cryogenic Dehydrators Compressor Skid
Future Mass/Energy Balance Risk/Rewards Source: EPA preliminary analysis of Waxman-Markey $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 2015 2020 2030 2040 2050 Small Facility (25,000 tpy) $1,250,000 Value at Risk Large Facility (1,000,000 tpy) $50,000,000 Value at Risk Projected cost of carbon allowances (in 2005 constant dollars)
Summary Process plants have large incentives to reduce losses and optimize energy usage. These two KPI are interrelated, Focus on big picture and longer term vision but go after low hanging fruit, Combine HSE, operations, engineering, and maintenance objectives as team, Leverage existing industry standards, Significant technological improvement in measurement systems has occurred Smart Instruments t and Wireless technology opens additional benefits for the future, Improved accuracy of Production Data (Mass and Energy Balance Reconciliation) impacts many KPI s, Establish and monitor correct KPI s to achieve continuous improvement that sustains benefits, The solution is Green provides significant benefits now both from Loss and Energy efficiency perspective p but future GHG emission perspective. p
Wrap-up Questions/Comments? Thank You.
Thank you Copyright 2010, Visiant Pimsoft Inc. All rights reserved.