Seminar PROMEEC - on Energy Efficiency
and Conservation for Industries
EE Improvement Case Studies in SteelIndustries
Ghazali Talib
Principal EngineerPusat Tenaga MalaysiaThailand
17 November 2006

OutlineBackground
2. EE Best Practices Implemented
1.

zzzz

Company Profile
Project Main Areas InvestigatedPotential Energy Savings (No, Low Cost)
Future Projects (High Cost)BACKGROUND

THE MALAYSIAN INDUSTRIAL ENERGY EFFICIENCY
IMPROVEMENT PROJECT (MIEEIP)

The MIEEIP is a project which is jointly
funded by the Government of Malaysia, theGlobal Environment Facility (GEF), theUnited Nations Development Program(UNDP) and the Malaysian private sector.
The Ministry of Energy, Water andCommunications is the executing agency
for the project and Pusat Tenaga Malaysia
is the implementing agency

MIEEIP OBJECTIVES
The MIEEIP was developed to improve energy efficiency (EE) in Malaysia's
industrial sector by removing barriers to efficient industrial energy use.
The objectives of the MIEEIP are: To implement and demonstrate the effectiveness of energy saving
technologies together with the financial incentives.
To provide skilled energy audit and engineering services, project financing,training and information to plant managers and operators.
To implement energy efficiency program by strengthening the institutional
capacity for energy program design and implementation, monitoring andevaluation.
To build the capacities of PTM and other existing organizations in order toprovide energy management advisory services, and energy engineering andservices.
To create sustainable follow-up program after the completion of the projectthat will build on the achievements and experiences gained, and wherenecessary, improve the activities and deliverables.
(4/17)

OBJECTIVES ENERGY TECHNOLOGY DEMONSTRATION PROGRAM(ETDP)
 To replicate the demonstrated energy efficiency

technologies in other industrial facilities
 To demonstrate the applicability and feasibility (technicaland economic) of proven energy efficiency technologies
 Able to realize an energy cost savings of 10% or more To document and disseminate information on theapplications and benefits of energy efficiency
technologies in local industry settings
 To provide the technical and financial assistance toindustrial energy users

STAGES OF ETDP PROJECT IMPLEMENTATIONShow of interest by host sites

SelectProjects &Host Sites•Host commits interest to MIEEIP by signing an MoA with PTM•PTM/MIEEIP team conduct energy audit and/or pre-feasibility
studies and investment grade audit (IGA)•Project cost > RM500K and justify 10% cost savings•Groundwork byMIEEIP team
•50% financing ofproject up toRM1.4million

INVESTMENT GRADE AUDIT (IGA)

Conduct
Investment GradeAudit (IGA)

Detailed Audit

Conceptual Design• Description of existing plant• Establish baseline• Energy consumption & cost
• O & M cost
• Cost savings• Technical & financial analysis
including assessment of risk

• Detail description
and conceptual
design of thedemonstration
project

Implementation, Installation, Testing & Commissioning

ProjectImplementation,Installation, Testing &Commissioning• Engineering design and specification• Prepare tender documents and floating of tenders• Project planning and execution• Budget/payment plan
• Price scheduling for variation works

Performance monitoring & evaluation

Monitoring &Verification• MIEEIP & the host will come up with a monitoring plan
• Performance evaluation to be carried out on a regular basis•IGA will be carried out byMIEEIP project team incollaboration with the host
•MIEEIP engaged local andinternational consultantsand experts for theexecution of this work
•Consensus on IGA reportwith Host•To be carried by Hostcompany•Upon request from theHost the MIEEIP team will
provide technical advise
during this phase•Will be carried out until theinvestment cost is recovered by
the MIEEIP team in collaboration
with the Host(11/17)

ETDP PROJECT TEAM
Ê Chief technical coordinator (PTM)Ê Factrory management (Factory)Ê Project Manager (PTM/Factory)

Overall co-ordinationand support

PTM TeamFactory TeamÊ Task manager and coordinator (PTM)Ê Energy manager or counterpart

Ê MIEEIP project team (PTM)

Ê Chief engineer (case by case)Ê International consultants (PTM/Fichtner)

Ê Engineers & Technicians(12/17)

Auditing Process
PREPARATION
Marketing, Kick-off meeting, Walk-through and Documentation Study

ON-SITE ACTIVITIES-Data verification thru discussions and field study/measurements- Discussions of findings

ANALYSIS AND REPORT WRITING-Macro and micro analysis of the collected and measured data
-Preparation of a draft report

PRESENTATION-Draft report presentation and discussion

REPORT REVIEW (By Factory)-Factory shall review the presented report for any comment

FINALIZATION OF REPORT-Factory reply the comment or consent about the report-Production of final report

IMPLEMENTATION & FOLLOW-UP-Factory implement energy savings ideas-Report the outcome to PTM

THE EE BEST PRACTICESIMPLEMENTEDCOMPANY PROFILE
1961 – Malayawata was incorporated as a private limited
company, the result of a Malaysian-Japanese joint venture.
Malayawata, coined from the word `Malaya’ and `Yawata’,
became the first integrated steel mill in Malaysia as well as South
East Asia.
Today – Listed in KLSE
• 1 Electrical Arc Furnace Steel Making Plant annual
capacity of 700,000 tons/year• 3 Rolling Mills with the capacity of 550,000 tons/year• Electricity bill amounted to RM 6 million monthly

Main areas investigated- Furnace (Reheat, Induction, EAF)
- Compressed Air System- Boiler & Steam System- Electricity Supply & Consumption- Cooling water system

Observation•The Reheating furnace have low combustion
efficiency (might due to sulphur deposit, design of therecuperator does not allow it to reach higher eff. –one stage), furnace in-leakages, excess air adjustment
is done by the operator by monitoring the smoke
coming out from the furnace inlet door.
•Compressed air system- no integration on piping line,
old piston type, air leakages•Cooling water pump- quenching system cooling water
were controlled manually by throttling valve.

Parameter

Billetoutput100x100x3040
weight 240,21kg
Combustion air before recuperator
temperature
after recuperator
waste gas
Flue gas
before recuperator
after recuperator
Flue gas
before recuperator
analysis

Atomizing air

*3

*3

*2

Combustionin zones*1

Temperatures
analysis

MEASUREMENT POINT*1 FLUE GAS ANALYZER*2 POWER ANALYZER*3 PORT. TEMP. METER

Place*1Recuperator
internal leakage
Operating hours
Fuel input

ItemUnitpiecesweightheat

1/ht/h
GJ/hControlroom0CC0C0C0C
O2%
CO2%
COppm
O2%
CO2
after recuperator%COppmcombustion air flow Nm3/hr
heatingzone
fuel flowl/hr
0temperature
Csoaking
fuel flowl/hr
0temperaturezone
C0gas/air average Dt
Crecuperator
0Pinch pointC
1
before recuperator
air excess
after recuperator
air excess
10h/yrGJ/h%Heat losses%flue gas%incomplete combust.
other losses%
furnaceHeat output
after furnacebillet sensible heat%
Net furnace efficiency%
Based on measurements taken on 3.10.2000 from 4.05 p.m to 6.05 p.m.
into furnace

Audit
Calculated
measurefigures
ment
64
15,4
7,3
30,8
283

664
701,6
539,6
7,5
9,9
2
10,7
7,6
675
289
1153
354
1334
495
257
1,6
2,1
8016
24,38
100
34
0,004
3630
30
33-RM1RF-resultCompressor Station-installed with two stations
supplying for RM and RF respectively. Leakage
test and load test were conducted at thesestations.
•Possibilityofintegratingthesetwodistribution system together.
•A fair amount of air leakages is occurred.
Item

Parameter

Unit

Flow rate
Rated pressure
Compressor power
Motor
Measured Pressuremax
compressor adjusted
mincapacity Air flow
Poweroper.
idle
Actual Total air consumpt.
system Leakage
Effective (Tot.-leak.)Pressuremax
variation min% ofoperation
time
idlingElectricity consumpt.
Operating hours

m3/h
barg
kWkW
barg
barg
m3/h
kWkW
m3/h
m3/h
m3/h
barg
barg
%%
kWh/hh/yr

Platereading

RM air system
CommonairairCompressor Nosystem system
12377578

77578
26Furnace air system
air Compres. Nosyst.
12894
720
7777575757878
78
42,9265,7
50,35
54,4
69
17,6
28
0,18 0,05 0,05

6,4
5,854
46
39,4

6,5
572
28
43,249,1
28
0,23

8016

0,18

50
50
36,24753
47

8520
33-RM2-CA1

POTENTIAL ENERGY SAVINGS MEASURES
Repair ofcompressed
air leakages

Cooling waterflow
reduction
Combustion
air excess
resettingCompressed
air press.
readjustment

RF burner fuelatomization

LLow CostNo CostCompressorinlet air cooler
installation
Cooling watertemperature
controlFuelpreheating
using flue gas
Coolingtower fancontrol

Furnace dooradjustment

Quenching –linepressure drop
improvement

VSD applicationand comb. airfan

POTENTIAL ENERGY SAVINGS MEASURES

RM1-RF two stage recuperator installation
Combustion air

Annual Potential Savings
Fuel : 452 ton
Amount : RM 213 000
Capital Expenditure

2ndFluegases

RM 400 000
Payback Period

stage
1st exist.stage

1.9 YEARYear

POTENTIAL ENERGY SAVINGS MEASURES

POWER CALCULATION BETWEEN PISTON & SCREW TYPECOMPRESSORS BASED ON REQUIREMENT OF 1570 M3/hr
Piston Type

Screw TypeCapacity= 1860m3/hr ( 31m3/min )1968m3/hr ( 32.8m3/min )Capacity After
Correction

1860m3/hr x 70% = 1302m3/hr(21.7m3/min)

1968m3/hr ( 32.8m3/min )Total Power250 KW

SpecificPower250 ÷ 1302

Produce
1570m3/hr

0.192 x 1570 = 301.44 KW= 0.192 KWH/m3

209.8KW
209.8 ÷ 1968 = 0.106
KWH/m30.106 x 1570 = 166.42 KW

POTENTIAL ENERGY SAVINGS MEASURESVSD For Rolling Mill Cooling Water Pump Process-The System is designed to control the water flow.

-The existing drive to run 160KW pump at its fixedspeed consumes 160KW of energy.

-Used the throttle valve to control water flow.

-VSD shall be able to reduce 20% of its rated speed byfully open the throttle valve to maintain the required
flow rate.

POTENTIAL ENERGY SAVINGS MEASURESTF2COOLING
TOWER

TF1
QL
CNP
NP

QP

TV2
TV1

PP

System of steel quenching pump VSD

Rolling Mill Bar Quenching Pump Process Of VSD Result
Before Installation of VSD

After Installation of VSDNo.

DateTime

Power (KW)

RunningAmp.(A)

DateTime

Power (KW)

Running
Amp.(A)1

11/10/2003

10:40:30

159.00241

2/7/2004

15:44:17

120.90201

211/10/2003

12:40:30

165.60246

2/7/2004

19:44:17

120.90201

311/10/2003

13:40:30

165.60251

2/7/2004

21:44:17

120.80200

411/10/2003

14:40:30

164.70245

2/7/2004

23:44:17

120.80199

5

11/10/2003

15:40:30

165.00248

2/8/2004

2:44:17120.50197

6

11/10/2003

17:40:30

165.30248

2/8/2004

5:44:17120.50199

7

11/10/2003

19:40:30

158.10238

2/8/2004

8:44:17120.50203

811/10/2003

20:40:30

157.50249

2/8/2004

9:44:17119.80197911/10/2003

21:40:30

158.40248

2/8/2004

10:44:17

120.40198

10

11/10/2003

22:40:30

153.00235

2/8/2004

13:44:17

121.70199

11

11/10/2003

23:40:30

157.80247

2/8/2004

14:44:17

120.70200

1211/11/2003

2:40:30

158.40247

2/8/2004

17:44:17

120.60197

13

11/11/2003

3:40:30158.10247

2/8/2004

19:44:17

120.40197

14

11/11/2003

7:40:30

157.50246

2/8/2004

22:44:17

120.50199

15

11/11/2003

9:40:30

163.20251

2/9/2004

1:44:17120.80199

16

11/11/2003

10:40:30

162.600249

120.40197

2/9/2004

Total Power2569.80

1930.20

Average Power160.61120.63

With VSD Achieved 25% SAVING of POWER
Saving per day= 25% of 160 KW x 24 hours= 960 KWH

Electricity cost per KWH = RM 0.17
Therefore saving per day = RM 0.17 x 960= RM 163.20
Saving per month (26 days operating) = RM 163.20 x 26
= RM 4,243.20
Saving per year

= RM 4,243.20 x 12
= RM 50,918.40

Initial investment = RM 60,000.00
Pay back period = RM 60,000.00
RM 50,918.40= 1.18 Year.

SUMMARY OF SAVINGS

Current Situation

Potential Savings

Electricity (Annual)Cons.
: 331,024 MWh
Cost: RM 58.2 million

Electricity (Annual)
Savings: 5479 MWh
Cost saving: RM 963,000

Fuel (Annual)Cons.
: 15,729 t
Cost: RM 7.6 million

1.7 % Cost Savings

13.7 % Cost Savings

Fuel (Annual)
Savings: 2210 t
Cost: RM 1.04 million

CO2 Emissions
3.7 % Reduction

10,622 t

284,667 t

RM 65.7 million

3.0 % Cost Savings

RM 2.0 million

THE FUTURE PROJECTHigh Cost Measure
Scrap Cleaning Systemz The scrap cleaning system consists of two main cleaning mechanisms
namelyz •Vibration mechanism-to separate the fine particles materials suchas dust from the scrapz •Magnetic separation-to separate the non-ferrous material such as
ground, rubber, plastic etczzz

The machine is operated by discharging a dirty scrap into the feeding
hooper and conveyed to the main vibrator feeder. The vibrator may
consist of one or more stages.
At the end of the vibrator, there is a gap between the vibrator plate andthe magnetic drum. The rotating magnetic drum will attract the ironmaterial (ferrous) and discharge the cleaned scrap to the other end.
The non-ferrous material will fall down through the gap between thevibrant feeder and the magnetic drum to another vibrant feeder. All thenon-ferrous material will be discharged to the deposit area.

Non-ferrous
material impurities
discharge

Fine particles
discharge

Summary of Cost Savings

ITEMS
Electricity cost savings
Crude savings
Other savings (outsourcing)
TOTAL
Annual O&M cost
Net savings
CAPEX
Payback

UNIT (Million)
RM/yr
RM/yr
RM/yr
RM/yr
RM/yr
RM/yr
RM/yryrFIG
3.50.40.5
4.4
1.0
3.1
3.0
1.0

Thank You
Pusat Tenaga Malaysia
Level 8, SAPURA@MINES
No. 7, Jalan Tasik
The Mines Resort City
43300 Seri Kembangan
Selangor, Malaysia
Website: www.ptm.org.my
E-mail: info@ptm.org.my