Seminar on Promotion of Energy Efficiency andConservation(PROMEEC) for Major Industry in Southeast Asia

Energy Efficiency and Conservation BestPractices at PT. Krakatau Steel-Indonesia

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Contents• Company Background• Energy Profile•Energy Issues•Energy Management & Conservation•R & D and Future Planning•Government Programs on EE&C
•Conclusions
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

PT. Krakatau Steel State Owned Company (Established: August 31,1970 ) The first integrated steel plant in Southeast Asia
 Responsible for fulfill the steel demand domestic andabroad As a backbone of industrial development in the country Meet the national and international quality standard
such as JIS, ASTM, DIN, ISO9001:2000, ISO 14001,ISO 17025
 Production capacity : 2.000.000 MT per year Supported by more than 6000 employees
 Located in Banten Province, on the westernmost of theJava Island
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Production Process at PT Krakatau
SteelPellet:
Iron ore

Slab Steel Plant

Hot Rolling Mill
(2,000,000 t/y)(2,200,000 t/y)

Direct Reduction Plant

Billet Steel Plant

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Wire Rod Mill(600,000 t/y)Cold Rolling Mill(850,000 t/y)

DIRECT REDUCTION PLANT
IRON ORE

CO2FUEL

H2O

REACTORO2STEAM

NATURALGAS

H2O
REFORMER

WATER

GAS
HEATERH2O

FUELPT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

DRI
NATURALGASSLAB STEEL PLANT

SCRAP

DRI

ELECTRIC ARCFURNACE

SLAB

LADLE
FURNACECONTINUOUS CASTING
MACHINE

HBI PIG IRON
RH-VACUMDEGASSINGPT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

HOT STRIP MILLSLABREHEATING FURNACESIZING PRESS

HOT ROLLED COIL

SHEARING LINESLITTING/RECOILING LINESHEET AND PLATESLITTED AND
RECOILEDPT KRAKATAU STEELCilegon-Indonesia www.ks.co.id

ROUGHING MILLDOWN COILERFINISHING MILLLAMINAR COOLING

SKIN PASS MILLRECOILEDHOT ROLLED COIL

COLD ROLLING MILLBATCH ANEALING FURNACEHOT ROLLED COIL

CONTINUOUS
PICKLING LINE

TANDEM COLD MILLELECTROLYTiC
CLEANING LINECONTINUOUS
ANEALING LINETEMPER MILLCOLD ROLLED COIL

COLD ROLLED COIL
SLITTING/RECOILING LINE

SHEARING LINEPT KRAKATAU STEELCilegon-Indonesia www.ks.co.idSLITTED/RECOILEDSHEETPT. K S - Products

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Product Applications

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Energy Cost Segmentation at PT.
KS10%30%
60%

Electricity

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Natural Gas

Oil FuelEnergy Cost Structure (CrudeSteel) at PT. KS

Fix Cost, 12%
Others, 12%

Energy, 22%

Raw Material,
54%

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Electricity Consumption Segment at PT. KS
18%

6%

76%

Iron making

Steel Making

Rolling MillNatural Gas Consumption Segment at PT. KS
15%6%

79%
Iron Making

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Steel Making

Rolling MillDistribusi Daya Listrik PT. KSKDLPL
N

87 %
400
MVA

Steel Making
95 %PT KS
13 %Others

200
MVA

5%PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Subsidiary
Company

Energy Conservation Group Organization
President Director

Director

Director of Planning & Technology

Director

Director

G M Research & Technology

Mgr Research & Development ofProcess & Energy Conservation

Mgr TechnologyPlanning.

Mgr Research &Development Services

Chief Engineer

Senior Eng. EnergyConservation

Senior Eng. Process

Senior Eng. Raw Mat’l& Waste

Engineer Energy
Conservation

Engineer Process

Engineer Raw Mat’l &Waste

Technicians

Technicians

Technicians

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Mgr ProductDevelopment

Energy Issues:
 High Energy Price (especially oilfuel) Energy Supply Limitation (NaturalGas) Energy inefficiency
 Environmental Issue
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Energy Saving Potential at PT. KS Plants
UnitRollingMillsDR

Potential Projects
 Fuel oil substitution
 Slab hot charging (1,5x1011 Kcal/y) Waste Heat Recovery
 Boiler fuel substitution
 Scrap pre-heatingEAF

 Oxygen lancing (9x107 Kwh/y) Dedusting Optimation EAF 5&6 (1,5x107 Kwh/y)PowerPlant

 Fuel oil substitution

 Waste heat Recovery
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Countermeasures Energy efficiency and conservation

programs
 Energy diversification / substitution
 Sufficient NG supply security
 Plant improvement andmodification
 Cleaner production program
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Energy Conservation Activities at PT KS
1. Examples of Options Successfully ImplementedBurner Control System in Ladle Drying and Preheating
Steam Traps & Leaks Survey, Repair and Replacement
Neuro Furnace Controller implementation
Partial Oxidation

2. Examples of Options Potentially ImplementedElectricity Saving by Power Reduction of Recirculating
Pumps
Generate Power from Excess High Pressure Natural Gas
through Turbine Expansion & Electrical Generator.
Recovering Waste Heat through Billet & SlabTransportation System Modification (Hot Charging)

3. Examples of Options Others Succesfully & PotentiallyImplemented

Implementation Network ECC
Fuel Oil Substitution

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Burners Control System for Ladle Drying andPreheating Process in Slab Steel Plant
Otomation in LADLE & TUNDISH HEATING SYSTEM
Save Natural Gas : 9 Nm3/Ton (56%)
EAF 09

òø

EAF 10Signal Power On Time

Before: 16 Nm3/Ton
After : 7 Nm3/TonòSignal Power On Timeø

2 heat treatment periodsof the Ladle & Tundish :1. Preheating
2. Drying

Result:Natural Gas

MMI + Monitoring

PLC

LD 01

LD 02

EAF: Electrical Arc Furnace

TDH 01

LP 01

LD : Ladle Drying

LP 02

TDH 02

LP : Ladle Preheating TDH : Tundish Heating

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

Shorter heating time, reduce
fuel consumption significantly
from 1244 NM3 / heat to 499
NM3/heat.

Slabs Hot Charging
Basic Concept
 Cold Charging± 30 oC
RHF

 Hot Charging
Potential Saving:
1.5 x 1011 Kcal/year

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id± 530 oC
RHF

Recovering Waste Heat through Billet
Transportation System Modification
BILLET STRAND CASTER
350 cmCUTTERT = 900 °C

Billets
150 cmMechanicalTransport
System
1 st COOLINGBED
T = 450 °C
CUTTERt = 1 HourCOOLING BED PIPE

25 cm

8 cm

V = 6 m/s, RH = 65%
2nd COOLINGBEDCUTTERT = 130 °C AIR: T = 39 °C

Insulation

Refractory

Goal : to minimize heat loss during transferring time from BSP to WRM
by performing modification / optimation on Billet Transportation
SystemPT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

DRPLANT
COKEOVEN
PANT

CDQP
ANT

EAF(SSP1&2)

KDL
EAF(BSP)PLN(PowerPlant)
KDL

HEADCOMPUETER(gasstation

Design of Energy Control
Centre Network

PRODUCTION-LANECC CONFIGURATIONSTEELPLANTSINTERING
PLANT(fuelgasholder)

ENERGYCONTROLCENTERBLAST
FURNACEincl.PCI(ECCforthenetworkof water, steam,fuelgases,technicalgases,
electricity,compressedair,observingtheenergy–contract)

MixGasStationAPPLICATION

Optimizing

Controlling

Server1

Monitor1

Analyzing

Reporting

Aplication-BUS

WAN–Connectionto
EnergyremoteSystem
Cont rol –andI nf ormat I on
Syst em

HUB2

BOF
PLANT

Substitutefuelgasses
stationArchive

CONTROL

HSM

Monitor6
Monitoring
Controlling

Monitoring
Controlling

Compressed
Air
CRM

Monitor2

Monitoring
Controlling

DataTrans
Emergency
Gateway

Redundant Control
SystemBusses

HUB2
TechnicalGasses(O2,Ar,N2)

WRM
WATERTREATMENTSTEAMBLOCKS

MeteringGas
StationPgi&
PERTAMINA

AirLiquid

HUB1
Gateway1

DATA
ACQUISITION

Gateway2

DataTransmission

DataTransmission

PLC-BUSECC COMUNICATION SYSTEMPT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

concentrator

concentrator

concentrator

concentrator

concentrator

PLC
1

PLC
2

PLC
3

PLC
4

ToPLcinproductionplant

ToPLcinproductionplant

ToPLcinproductionplant

ToPLcinproductionplant

PLC
5Neuro Furnace Controller(Reduce Electricity Consumption at the Steel Making Plant)

Before : 669 Kwh/TLS
After : 634 Kwh/TLS
Save : 35 Kwh/TLS ( 5 %)PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

HyL-3 Partial Oxidation Process(Save Natural Gas)
48,000Ton/hwaterN.G.

IronOrecooler
CO2

T1 = Before Inject O2
T2 = After Inject O2

H2O

absorberCap.: 1,5x106 T/y20,000 Nm3/h
COH2

OXYGEN FLOW :fuel

Rate : 800 NCMH, Press. = 14 Bars

Before: 360 Nm3/Ton
After : 340 Nm3/Ton
Save : 20 Nm3/Ton (5,5%)
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

O2Nat. Gas
Injection
Process Gas Temperature
Before Inject O2 (T1): 933 C

DRI

After Inject O2 (T2) : 980 C

Total Energy Saving
 Natural Gas (saving from: Partial Oxidation,Steam leaks reparation and Ladle & Tundish
Heating Automation):= 60 x 106 Nm3 /y = US$ 5,610,326 / y Electricity (saving from: Neuro FurnaceController and others):= 80 x 106 Kwh /y = US$ 3,804,347 / y

 Total Saving
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id= US$ 9,414,674 / yPARTNERSHIP PROGRAM ON EE&C FOR INDUSTRYAND COMMERCIAL BUILDING

Partnership program is the government program on energy
conservation focused on energy efficiency improvement forenergy intensive industries and commercial buildings
Government support e.g. Energy Audit (Free of Charge);
Training; Technical Assistance and Seminar/ Workshop
Parties involved in the program which started in 2003 areGovernment, State-owned Electricity Company, FinancialAgency, Industry and Commercial Building

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

PARTNERSHIP PROGRAM ON EE&C FOR
INDUSTRY AND COMMERCIAL BUILDINGIn 3 years committed industries and buildings report togovernment every 6 (six) month about the progress
implementation of the energy audit recommendation.
In this year, there are 32 industries and building
participate in partnership program
Energy Audit in industries and buildings will be expanded
to almost 250 objects (industries and buildings) next year
under government budget.

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

ENERGY AUDIT RESULT - INDUSTRY
INDUSTRY

ENERGY SAVING POTENTIAL(%)

US$/Year

Ispatindo,Ispatindo, East Java

6.76

2,080,441

Roda Mas Baja Inti,Inti, South Sulawesi10.75

11,280

20.6

9,745

Roda Vivatex – West Java2.6272,554

Bhineka Karya Manunggal 1 - West Java

15.74

64,385

Bhineka Karya Manunggal 2 - West Java3.99493,250

Vastex Prima - West Java

7.58

69,200Indah Jaya Textile – Banten

13.74

77,921

22.2

195,179

IRON AND STEEL

Barawaja,
Barawaja, South Sulawesi
TEXTILEFLOUR MILLS
Berdikari Sari Utama,Utama, West JavaPT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

ENERGY AUDIT RESULT - BUILDINGBUILDING

ENERGY SAVING POTENTIAL(%)

US$/Year

COMMERCIAL BUILDING¾Graha Pangeran,Pangeran, East Java

9.83

18,386¾

Sarana Jaya, Jakarta

10.10

43,400¾

Dharma Niaga,Niaga, Jakarta

10.86

14,109¾Bimantara,Bimantara, Jakarta

11.09

49,225¾

Plaza Permata,Permata, Jakarta

15.08

33,386¾Ina Bali Beach Hotel, Bali

10.74

113,692¾

Fantasi Mall, East Kalimantan

1930,967

GOVERNMENT OFFICE¾

Bank of Indonesia, South Sumatera

1.9234,875¾

R&D Oil and Gas, Jakarta

0.7848¾

Training Center MEMR, Jakarta

9.71

5,041

¾

DGEEU, Jakarta

2413,120

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id

OVERSEAS COOPERATION ON EE&CI.

GREENHOUSE GAS EMISSION REDUCTION from INDUSTRIES in ASIA andPACIFIC (GERIAP) – UNEP

Enhancing energy efficiency improvement for mitigating GHG emission

Energy Audit for intensive energy industry :- Cement- Fertilizer

II.

- Pulp & Paper- Iron & SteelPROMOTION on ENERGY EFFICIENCY and CONSERVATION (PROMEEC), ASEAN– ECCJ/METI JAPAN

Promoting energy saving implementation for industry and building in ASEANregion

Energy Audit/Energy Management, Database, Benchmarking for industry andbuilding :- Industry (2005)- Commercial building (2004)

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id: Pulp & Paper Mills, Spinning: Hotel - 2 (two) five star classConclusion• The energy conservation efforts have reduced
energy consumption rate and production costand at the same time contribute to create
better environmental condition.
• Supported by the management and all
employee, these efforts have been
implemented succesfully and continuously.
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id