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Energy Committee MX 2 nd Quarter 2013 May 30 th , 2013

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Energy Committee MX

2nd Quarter 2013

May 30th , 2013

Agenda

2

Introduction

Committee Objectives and Structure

Energy Base Line

Energy Measurement System Assessment

Energy Goals

Energy Projects

Committee Objectives and Structure

3

Energy Committee NMK MTY

All BU will have a member in the Energy Committee

4

Energy Committee:

Project Mgmt. & Measuring System

Leader P3 &P4

Leader P5 & P6

Leader Plant

Service

Leader Melting center

Leader P1 & P2

Leader MVA

Leader SAL

Energy Committee Objectives

Energy Project ManagementIdeas for Energy ProjectsProjects related to the main energy consumers both EE & GNFeasibility Analysis of Energy ProjectsSupport on Energy Project Implementation

Energy Measurement System ManagementEnergy Measuring System AssessmentEnergy Measuring System Expansion (P3.5 + P6 + P2+ MVA? + SAL?)Energy Measuring System Operation

Energy Project & Best Practice DatabaseKnowledge Sharing on Energy Best PracticeEnergy Project Archive

Energy Committee ApproachMTYMVASAL

5

Energy Base Line

6

Energy Base Line (Nemak MX)

All MX sites have high energy intensityBOB MX Head MTY on EE & NG

7

Ideal Target Zone

Projects in development

8

Vital Project YTD2012

Obj. 2013 (M USD)

Impact2013

IQ 13

IIQ 13

IIIQ 13

IQ 14 Notes:

30 min HT cyclereduction

Start Apr 13 10P + 1E Capex +

EBITDABK P2 P3

• S: within variation process• W: Block HF / A356 %E• O: Energy saving / Shutdown furnace / Sustain.• T: Equipment configuration & controls

SRU + Fluidizer bed shut down

Start Apr13 1.1E EBITDA

BK

• S: unrelated to HT process• W: sand reclamation capacity• O: Energy savings / Sustain.• T: Sand reclamation capacity

Heat recovery from holding furnace to HTF 3, 4 & 5

Start Apr 13 1.2 E EBITDA

BK

• S: Wasted heat available• W: Investment• O: Energy Saving + Sustainability approach• T: Temperature control @ HTF

HT Hibernation state during starve +settings conditions

Start Apr 13 0.53 E EBITDA

BK

• S: Parameter change / Starve @ HTF• W: Temperature issues @ Equip.• O: Energy Saving + Sustainability approach• T: Automation cost + maintenance

Optimized HT cycle Pentastar @ HTF6

Start Jan 12

5.4P + 0.38E

Capex + EBITDA

BK

• S: No issues on MP @ Pnst with less time• W: Sand issues @ Equipment• O: Energy Saving + Sustainability approach• T: Sand Issues @ Equipment / HT of BF5.0L

Rev. – Abril 2013Especialista : Tratamiento Térmico

On Schedule Completed In Progress Delay

The scheduled dates are a function of current resources department and assuming the support of all department involved.

Project implemented

10

Alternatives of solution

11

Project: Optimize compressed air in the cleaning of filters in the dust collector of Block

Alternative 1: Perform filter cleaning through PLC (Logic)

Alternative 2: Perform the filter cleaning through a Sequencer (Pressure difference)

A1: Perform filter cleaning through PLC (Logic)

12

Perform filter cleaning through PLC programming sequence.

Conditions Actual cleaning(continuous)

Cleaning through PLC (sequence)

Valve Size 1 Ø 1 Ø

Pulse time 0.25 sec. 0.25 sec.

Pulse interval 10 sec. 10 sec.

Air consumption (scfm) 1.05 1.05

Operation time 24 Hrs. 12 Hrs.

Scfm Conversion to kW 0.193 0.096

Consumption in kW200 installed valves. 38.6 19.3

Annual kwh consumption200 installed valves. 278,452 139,226

Annual Cost(0.69$/kWh) $192,000 $96,000

Savings --- $96,000

A1: Justification energy basics

13

Measurement of consumption for compressed air was made in one complete cleaning cycle, obtaining the following consumptions:

Calculations:

Analysis for a 1 diameter valveCompressed air consumption according to the table:1516 scfm - 60 sec.1.05 scfm - 0.25 sec.

Annual consumption in 7,200 hrs = 454.800 scfm

Energy consumption per table:1516 scfm - 279.1 kW1.05 scfm - 0.193 kW

There are 200 valves installed with an annualconsumption of 278.452 kW.

With the installation of PLC would reduce theconsumption of 139,220 kW = $ 96,000 annual

Avoid generating 91Ton CO2/year

A2: Perform the filter cleaning through a Sequencer (Pressure difference)

14

Perform filter cleaning through pressure difference caused by the fines and dust embedded in the filter element (Bag or cartridge).

Conditions Actual cleaning(continuous)

Cleaning through a Sequencer

Valve Size 1 Ø 1 Ø

Pulse time 0.25 sec. 0.25 sec.

Pulse interval 10 sec. 10 sec.

Air consumption (scfm) 1.05 1.05

Operation time 24 Hrs. 8 Hrs.

Scfm Conversion to kW 0.193 0.096

Consumption in kW200 installed valves. 38.6 11.5

Annual kwh consumption200 installed valves. 278,452 82,958

Annual Cost(0.69$/kWh) $192,000 $57,200

Savings --- $134,800

A2: Justification energy basics

15

Measurement of consumption for compressed air was made in one complete cleaning cycle, obtaining the following consumptions:

Calculations:

Analysis for a 1 diameter valveCompressed air consumption according to thetable:1516 scfm - 60 sec.1.05 scfm - 0.25 sec.

Annual consumption in 7,200 hrs = 454.800 scfm

Energy consumption per table:1516 scfm - 279.1 kW1.05 scfm - 0.193 kW

There are 200 valves installed with an annualconsumption of 278.452 kW.

With the installation of PLC would reduce the consumption of 195,4942 kW = $ 134,000 annual

Avoid generating 128 Ton CO2/year

A2: Justification energy basics

16

Attached Sequencer equipment calibration parameters.Brand: Mecair Model: MCS.

Consultation of suppliers

17

In the last months, we had the visit of various specialist on dust collectors:

With GE company, we had a course in our installations.David Currence was hired by Nemak for advising in problems in differents Sites, with him we had an inspection in the equipment last February

GE Power & Water – Ing. Michael Johnson e-mail: [email protected] Power & Water - Cesar Jimenez, e-mail: [email protected] Power & Water - Arturo Romero e-mail [email protected] – Ing. David Currence e-mail: [email protected]

Financial analyzes of the project

18

Savings $96,000 Mx- Investment $ 104,000 MxThe investment is fullyrecovered in 13 months.

SequencerPLC

Savings $134,000 Mx- Investment $ 139,000 MxThe investment is fullyrecovered in 13 months.Less production of kWh

Cartridge filters

19

1,200 KMx since 2012 to now.700 Filters changed VS 464 installed.

180 KMx since 2012 to now.141 Filters changed VS 80 installed.

Total of 1,380 KMx since 2012 to now.

Possible damages:• Mechanic damage.• Humidity in compressed air• Cleaning Fatigue.• Standard of change in bags.