Energy Optimization with specific reference to the Metals and Mining Industry

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Energy Optimization with specific reference to
the Metals and Mining Industry

• A Different Approach to
• Bottom-line results through systems and knowledge
  integration

Presented by Gustav Radloff
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Agenda

• Introduction to Energy Cybernetics.
• Energy Management we are entering a new
  phase...
• Energy Management and Production is there a
  conflict?
• Energy Management - a natural home for
  integration of information.
• PEO a systematic process for unlocking value.
• Questions/Discussion.

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Energy Cybernetics - Introduction

• South African company
• Established in 1998 in our 10th year.
• Offices in Pretoria and Potchefstroom.
• Staff includes 25 Engineers.
• Electrical
• Mechanical
• Industrial
• Electronic
• Chemical
• We have formed strong strategic partners both
  locally and internationally
• Well known players in the field of Energy
  Management in Southern Africa.

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Clients
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Clients
DEBSWANA
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Energy Management we are entering a new
phase...

• Reserve margin is around the 8-6 mark (Best
  practice is around 15).
• Electricity price escalation above inflation
  for the first time expected to stay there.
• Long lead times to build the next base-load
  station.
• GDP and load growth above expectation (high
  growth scenario).

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Energy Management we are entering a new
phase...
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New Phase....
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A Brief History of Energy Management

• Power factor correction.
• Tariff selection/optimisation.
• Maximum Demand Control.
• Energy Measurement Systems (Metering).
• Demand Side Management and load shifting.
• Equipment Efficiency Improvement.
• Energy and Process integration the next step to
  increase efficiencies.

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Energy Management and Production Is there a
Conflict...?

• There is (unfortunately) a perception of
  conflict.
• Is this conflict genuine, are there legitimate
  reasons?
• Depends on how and what a project does.
• Energy Management done right, should enhance
  production not constrain it.

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What We believe about our Clients and Energy
Management

• Our clients are more interested in profits than
  simply reducing energy consumption.
• Energy should be used as (an additional) tool to
  make money.
• Energy usage is not inherently good or bad.
• Optimisation of all resources is better than
  conventional conservation approaches.
• The focus should be on improving client profits
  Nothing else.

Never compromise on product quality or
production to save energy!!
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ENERGY COSTS
OFTEN, WE ONLY SEE THE TIP OF THE ICEBERG
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ENERGY COSTS
EQUIPMENT EFFICIENCY
OPTIMISE SUPPLY
ENVIRONMENTAL RESPONSIBILITY
MINIMISE MATERIALS
EFFECTIVE OM
SYSTEM PERFORMANCE
PRODUCT QUALITY
PRODUCTION CAPACITY
PLANT HEALTH
LABOUR KNOW-HOW
MANAGEMENT SKILLS AND INFORMATION
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The key is to integrate...

• Production Optimization and Energy Management
  (Optimization) should not be viewed as separate
  issues they are intimately linked.
• Production conditions should drive energy usage.
• Sub-optimal production conditions typically
  results in sub-optimal energy usage solving one
  typically solves the other.
• Often the energy view is required to unlock
  production breakthroughs.

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Energy Monitoring System (EMS)
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SCADA System
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One of the first steps

• Integration required between Energy SCADA and
  Production SCADA

PEO
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Integrating Plant Information Systems.
Plant
EMS
Control
Reports
Analysis
Control
Reports
Analysis
Control
Process Data
Energy Data
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PEO - A Systematic Approach to Unlock Value

• The purpose of PEO is quite simply to
• Maximize yield/production while
• Minimizing production costs and resource costs
  like energy and water.
• This is done without violating process
  constraints or any abuse of production equipment
  (i.e. issues such as startups, cycling, etc. are
  taken into account).

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Foundations of PEO

• The PEO approach is an integration of
• The Theory of Constraints.
• Traditional energy management and process
  improvement practices.
• Proprietary energy analysis and process
  diagnostic tools and techniques.
• In-house operational staff manage to achieve
  optimal performance and/or process stability some
  of the time
• PEO ensures that optimal performance and/or
  process stability is maintained most of the time

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PEO Philosophy
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Cause Analysis
Use Data-Mining and process insight to identify
causes for good and poor operation
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PEO Implementation Philosophy
2.7 MWh/tonne
6 MWh/tonne
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Measurement and Verification
Pre Implementation
Post Implementation
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Quantification of Savings
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In a Nutshell

• IRR 74.
• Payback 1.45 years.
• Reduction in carbon emissions 6 126 t.

• Equivalent to removing 2187 cars off the roads.

• 3 Tanker trucks of pure Sulphuric acid (H2SO4).
• 2 Tanker trucks of pure Nitric acid (HNO3).

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Specific Benefits of PEO

• Reduce production instabilities.
• New information or insights are often gained.
• Take a fresh look at the plant and its
  operation.
• Analyses the flow of both energy and materials.
• Use actual data of what is really happening in
  the plant.
• Different from what is supposed to happen and
  also from what people perceive to be happening.
• Knowledge and experience of the plant personnel
  are incorporated and used to enhance the
  solution.
• Offers excellent return on investments(ROI)
• IRR typically 50 and more
• IRR gt 100 is not uncommon
• Leverages previous investment in IT and SCADA
  systems through seamless integration.

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Questions/Discussion?
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Thank you

• Gustav Radloff 083 44 11 094
• gustav_at_energycybernetics.com