An Energy Management initiative for the Calcium Compound Processing Industry

7th IFAC Conference on Manufacturing Modelling, Management, and Control International Federation of Automatic Control June 19-21, 2013. Saint Petersburg, Russia

An Energy Management initiative for the Calcium Compound Processing Industry Jayaseelan, N¹ ,². Faieza, A.A². Baharudin BTHT². M.A.M. Radzi3. Mathew NKT¹.Chin KH4. 

¹Plantmac Engineering Consultant, 58200Kuala Lumpur, Malaysia info@ plantmac.com ²Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, 43400 Serdang,Malaysia 3 Department of Electrical and Electronic Engineering, Universiti Putra Malaysia, 43400 Serdang, Malaysia 4 Syarikat Elektrik Chee Lee, 58200Kuala Lumpur, Malaysia Abstract: Malaysian industries in general, are plagued with their own day to day problems and activities. Engineers are called upon not only to identify, but also to resolve technical and non-technical issues. Energy management is therefore deemed a burden and non-profitable to the organization as a whole. Energy management initiatives are also viewed as a Cost-Centre than as a Profit-Centre. A well-structured and engineered approach, however, if well-presented can be acceptable to industry. The presentation could include the objectives of energy management; past, present and future energy tariffs; roles and responsibilities; significant-energy-users; time-line for the energy project to be implemented; specialist and precision measuring equipment to be used; data collection, analysis and finally the report format and submission. The results also indicate a progressive increase in energy tariff is inevitable and that EM should be holistically viewed meant to also increase productivity, reduce breakdowns etc. This paper will entail an energy management proposal submitted to industry for their acceptance. The contents are based on the input and requirements from the engineers in industry.The objectives of this paper are to develop a framework for a presentation on EM to the calcium compound processing industry and also predict the potential increase or decrease in energy costs based on current and previous tariffs Keywords:Education, energy management systems, energy expenditure, efficiency enhancement, estimation, measurement accuracy. 

1. INTRODUCTION Calcium compound processing plants consume large amounts of electricity and Natural Gas (NG) to operate their kilns, hydration and wastewater treatment equipment etc. The number of pumps, compressors, mixers and crushers involved in the extraction, processing and manufacture of the calcium compound are enormous. Inefficientconsumption of the various energy sources can result in high utility bills, frequent breakdowns and wastage [1]. Established in 1995, the said company is 100% owned by its parent company, which is based in Germany. Based in Kuala Ketil, which is the industrial zone of the northern state of Kedah DarulAman, 400 kilometres northwest of the national capital of Kuala Lumpur, Malaysia, it produces high quality precipitated calcium carbonate and highly reactive calcium hydroxides using the highest technology, with customers being world-wide leaders in various range of applications from paper, toothpaste, paint and plastics to pharmaceuticals, oil refinery processes and waste treatment. The company has established a fully automatic production process to produce high quality calcium products. Malaysia is a rapidly developing country in the Asian region and is currently adopting the sustainable agenda. The development in Malaysia is progressing very rapidly. The 978-3-902823-35-9/2013 © IFAC

government of Malaysia has looked forward to improving the quality of living of its citizens through its development planning and monitoring systems as stated in the Economic Transformation Program, ETP. Emphasis should be given to improving the quality of living, promote sustainable production and consumption, protect the environment and finally enhance institutional and infrastructure capacity. 2. ENERGY MANAGEMENT In Malaysia, on the other hand, the identification of energy efficiency, conservation and management (EECM) projects is still in the infant stage. The lack of these has led to poor designs, resulting in ineffectiveness of energy usage. This paper will therefore indicate an EECM presentation presented to the company and the initiatives taken by them. The authors have therefore embarked on this project to evaluate, investigate, discover and discuss the various opportunities available to achieve the above mentioned . The objectives will have to be clearly defined, especially entailing to the requirements of the specific industry [2]. These could include, amongst others, identifying the quality and cost of various energy inputs [3], assessing present pattern of energy consumption in different cost centers of operation [4], relating energy inputs and production output[5], identifying potential areas for thermal and electrical energy economy [6],

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2013 IFAC MIM June 19-21, 2013. Saint Petersburg, Russia

highlighting wastage’s in major areas [7], recommending appropriate energy conservation, operation, and maintenance procedures [8], note current and potential health and safety problems and how they may be affected by proposed changes, implementation of measures for energy conservation and realization of savings, and change management within the organization etc. 3. JUSTIFICATION FOR ENERGY MANAGEMENT The engineers at the said plant are very concerned about the progressive rise in energy costs over the years [9]. The proposal therefore will have to indicate this very clearly. In Malaysia, industries have experienced the following; over the years the average electricity tariff increased by7.12% in 2011, an average of 5.12% increase was due to the 28% upward revision of natural gas prices to the power sector from RM10.70/MMBTU to RM13.70/MMBTU, and an average of 2.0% increase was to partly recover for the increase in cost of electricity supply since the last base tariff revision in June 2006[8]. This tariff review package also provides special rates and discounts; the Government will impose a 1% as Feed-in-Tariff for the renewable energy (RE) Fund, effective December 2011. The fund will be utilized for promotion and development of RE projects; industrial consumers will experience an average increase of about 8.35% (ranging from 6.2% to about 10%). The main rationale for the tariff increase is contributed by the increase in NG prices to the power sector by 28% from RM10.70/MMBTU to RM13.70/MMBTU with effect from June 2011; the increase in NG price is based on the government’s NG pricing mechanism. Price is periodically reviewed in tandem with market price trends. NG cost constitutes around 50% of the total fuel cost mix (FY2010); the additional fuel cost incurred due to the gas price revision is reflected via the increase in end-use electricity tariff; coal, which is the major cost component of TNB’s fuel cost (i.e. around 48.3% of the total fuel cost mix in FY2010); inefficient consumption by consumers is widespread. TNB encourages its consumers to use electricity efficiently. For instance, consumers could use energy-efficient light bulbs and electrical appliances. Large power rating appliances such as for heating, air-conditioning and industrial motors should also be used prudently to conserve energy. Consumers are also advised to opt for high-efficiency appliances. Special Industrial Tariff (SIT) consumers experience slightly higher tariff increase as compared to normal Industrial consumers since this is in line with the Government’s effort to gradually reduce subsidies to industries [9]. Even with this increase, SIT consumers will continue to enjoy discounted tariff rates as compared to the rates for normal Industrial consumers. Comparison of industrial tariff rates in regional countries shows that TNB’s new Industrial tariff is still competitive.

4. ADVANTAGES OF ENERGY MANAGEMENT Engineers involved in energy management, energy efficiency and conservation related works will agree that energy management is definitely a profit centre [10]. It inculcates improved maintenance activities, especially in planned preventive maintenance (PPM)and predictive maintenance (PdM) related activities, it is a well-structured and engineered approach, it improves teamwork, performance and organizational reputation, ensures proper documentation and control and structured reporting, encompasses all areas of operations, production, maintenance, QA/QC etc and implementation of ISO 50001(Energy management systems)can be performed simultaneously with the implementation of ISO 9001, ISO 14001 etc. sincesome of the requirements are very similar, e.g. the training and documentation components [11]. 5. METHODOLOGY INVOLVED Implementing a successful EM program in industry involves teamwork. Therefore it is imperative that the roles and responsibilities are clearly defined. The bulk of the work should be performed by the energy consultant (EC) and not by the engineer’s from industry. Otherwise there is a very strong probability that the proposal could be rejected if it indicates that much of the engineers’ time will be involved.Moreover the duration involved should be kept short. Consideration will have to be made of the particular engineer’s expertise, past and present experience, qualifications, years with the Company and availability. Amongst the roles and responsibilities of the EM team will be to ensure that energy management operations are supportive of the plant’s operations, maintain liaison with the maintenance/operations department while reducing energy consumption levels,recommend sound policies directed toward energy conservation, develop long-term plans for implementing innovations, assist in evaluating maintenance staff to ensure effectiveness,develop training options and/or improvement plans to ensure the best operation in the area of equipment maintenance, assume responsibility for compiling, maintaining, and filing all energy reports, billings, and other documents required, maintain a continuous activity schedule for all equipment in order to coordinate efficient usage, identify energy conservation measures, compile utility budgets and energy conservation measure cost estimates based upon documented program needs, pursue funding for equipment retrofits, maintain liaison with suppliers to conduct bidding process for equipment upgrades and retrofits, monitor all facilities design and construction activities as relates to energy management, review and recommend maintenance supply and equipment purchases to ensure energy efficient replacements are being specified, review and negotiate energy purchase agreements and make recommendations regarding fuel selection, implement the policies established in the area of energy conservation, provide regular reports as to the overall effectiveness of the energy management program, take the initiative to develop needed professional skills appropriate

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to job assignments, demonstrate behaviour that is professional, ethical, and responsible and serve as a role model for all staff, articulate the mission and goals in the area of energy management, solicit support in realizing the mission, demonstrate awareness of needs and initiate activities to meet those identified needs and demonstrate the use of appropriate and effective techniques for staff involvement.

Preliminary Meeting SCOPE Familiarization Audit Training, Stage1 Detailed Audit Energy consumption measurement using specialist equipment Energy Consumption data analysis Preparation of comprehensive report Submission report SKMSB

PIC EC MD/ WM/ ME/ EE WM/ ME/ EE/ EC PIC ME/ EE/ EC EC

FREQUENCY Initial Stage Only Initial Stage Only

FREQUENCY Initial Stage Only

REMARKS Done (23 July, 2012)

Bi-Monthly

Scheduled for 05 October, 2012 Scheduled for Week 4, October, 2012 Only on selected SEU equipment.

EC

Only Once

EC

Only Once (Depends on acceptance by company) Only Once (Depends on acceptance by company) Only Once (Depends on acceptance by company) If necessary

of to

EC

Presentation of report findings

EC

Resubmission of report

EC EC

Only Once

Table 2: Tariff E2s – Special Industrial Tariff (for consumers who qualify only)

Completed

Done (23 July, 2012)

Only Once

At the said plant, 40% of the total monthly utility billing is on electricity.

The tariff is the special industrial tariff, E2S.

REMARKS Completed

Initial Stage Only

EC/ ME/ EE EC/ ME/ EE

6.1 Electricity

6.1.1 Introduction

Table 1: Roles and Responsibilities SCOPE Prepare Proposal Seek approval of EP

6. PREDICTION ON POTENTIAL INCREASE OR DECREASE IN ENERGY PRICES

DESCRIPTION MD* (RM/KW)

2006 21.00

Energy (cents /kWh)-Peak Energy (cents/kWh)-OP

21.5 21.5

2009 25.2 (+20%) 25.8 (+20%) 14.7 (+20%)

2011 27.7 (+10%) 28.3 (+10%) 16.1 (+10%)

FUTURE x₁ x₂ x₃

RM (Ringgit Malaysia) is the Malaysian currency. From Table 2, the trend indicates there is an increase in tariff from 2006 onwards, at an interval of 2 to 3 years. The next increase can only be estimated by extrapolation. This method is not accurate, but it is indicative of the quantum of the next increase in tariff. For Maximum Demand (MD) 21-25.2 = 25.2-27.7 21-27.7

Only on selected SEU’s Based on data collated

25.2-x₁

x₁= RM 30.78 For Peak Energy kWh (kilowatt-hour) consumption:-

Hard and Soft Copies

21.5-25.8 = 25.8-28.3

Data, findings, analysis etc.

x₂ = 29.75 cents

21.5-28.3

25.8- x₂

For Off-Peak (OP) kWh

Based on the feedback

14.7-21.5 = 16.1-14.7

Managing Director (MD), Works Manager (WM), Mechanical Engineer (ME); Electrical Engineer (EE), significant energy users (SEU), Energy Consultant (EC).

16.1-21.5

x₃-16.1

x₃= 17.21 cents

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6.1.2 Findings It can be deduced that there is a progressive increase in the electricity tariff, since 2006, at a rate of 10%, the minimum. The next tariff review could result in a maximum hike of 10%. The 20% hike occurred in 2009, followed by 10% in 2011. 6.2 Natural Gas At the said plant, 55% of the total monthly utility billing is on natural gas. 6.2.1 Introduction From Table 3, the trend indicates there is an increase in tariff from 2011onwards. Therefore the next increase will probably be in 2013 and the quantum can only be estimated by extrapolation. This method is not accurate but indicative of what the next increase in tariff could be.

Table: 3- Natural Gas Tariff (RM/MMBTU) Description

RM/MMBTU

2010

10.70

2011

13.70 (+28%)

2012

22.06 (+61%)

Future

x₁

One way to account for these changes is to develop an energy and production-dependent regression model of pre-retrofit energy use. The savings can then be calculated as the difference between the post-retrofit energy consumption predicted by the pre-retrofit model and measured energy consumption during the post-retrofit period. Savings measured using a baseline model, are called “adjusted” savings, when the baseline model is adjusted to account for the energy and production conditions in the post retrofit period. Adjusted savings are more accurate than unadjusted savings, and should be used whenever the energy data used to measure savings is production dependent. Figure 1 shows an example of a regression analysis performed for the precipitated calcium carbonate (PCC) plant of the said factory. An R² value of 0.70 and greater indicates a high correlation between the energy consumption (y-axis) and the production output (x-axis). In this case it is 0.818. 7.2 Other Models Other models and statistical techniques have also been used to describe facility energy use. For example, neural network models have been shown to accurately capture non-linear relationships and cross-correlation among multiple independent variables. Principal component analysis has been used to handle multi co-linearity associated with time series data [13]. Other examples of empirical modeling of industrial energy use include the application of a productivity index to the container glass sector to understand productivity, efficiency and environmental performance [14]. In addition, Boyd applied a variation of best-fit multivariable regression modeling techniques to identify best practices in industrial sectors. Although these methods all have appropriate applications, they were not selected for this approach.

10.7-13.7 = 13.7-22.06 10.7-22.06

and post-retrofit periods is caused solely by the retrofit. However, energy consumption in most industrial facilities is frequently influenced by weather conditions and the quantity of production—both of which may change between the preand post-retrofit periods. If these changes are not accounted for, savings determined by this simple method will be erroneous. Because direct comparison of pre- and postretrofit energy consumption does not attempt to adjust the preretrofit model to account for these changes; savings measured using this method are called “unadjusted” savings [12].

13.7-x₁

x₁= RM 45.32

6.2.2 Findings It can be deduced that there is a progressive increase in the NG tariff, since 2010 at 28% and then doubling in 2012 at 61%. The next tariff review will probably be in 2013 and the percentage increase can only be ascertained by extrapolation. 7.0 METHODS FOR MEASURINGENERGY SAVINGS 7.1 Regression Method Perhaps the simplest method of measuring retrofit energy savings is to directly compare energy consumption in the preand post-retrofit periods. This method implicitly assumes that the change in energy consumption between the pre-retrofit

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periods of time. It is estimated that improving process controls could save 2 to 4% of electrical energy use [15]. Many calcium compound processing plants have make-up air and ventilation systems in place to comply with a safe workplace environment and to control emissions of dust and other air contaminants. Several resources discuss the evaluation and proper sizing of pumps, fans, and electric motors. Improvements to pump, fan, and motor components could conserve up to 8% of electrical energy use [16].

Figure 1- An example of a regression analysis 8.0 LIMITATIONS AND RECOMMENDATIONS The goal of this research is to describe anenergy management proposal and a transparent method for measuring industrial energy savings, which still account for major sources of error associated with unadjusted savings, and can be applied by the industrial community. Unfortunately, the complexity of applying and interpreting many of the models and methods were not discussed. Whilst energy conservation and energy efficiency both ultimately have the same goal they are significantly different. Each mechanism faces different barriers to success. Energy efficiency needs to solve the energy efficiency gap. Energy conservation will always be limited by the presence of consumer surplus. Improving energy efficiency deployment may require increased subsidization and other forms of resources. Based on the figures presented above, it is inevitable that there will obviously be another increase in tariff for both electricity and NG. It is therefore imperative that industry commence to take the necessary steps to reduce their energy consumption. Some of the recommended steps could include using Light Emitting Diodes (LED), T5 or T8 Compact Flourescent Lamps (CFL) instead of the conventional incandescent light fittings, where appropriate to use Variable Speed Drives (VSD) for their centrifugal pumps, replace conventional motors with High Efficiency Motors (HEM), perform data-logging using Supervisory Control and Data Acquisition (SCADA) systems, flow-meters, power meters and others to determine the trend in energy consumption with respect to production output. A significant opportunity for energy conservation is process control optimization. If calcium compound processing plants are manually controlled, it is common practice to be operated well within the company’s product specifications. Chemicals can be over-processed, resulting in increased time and energy required to manufacture the product. Automating simple tasks can yield significant energy savings because process operators are less effective at routine control tasks than a control system is. Another process control issue involves scheduling and shut down of equipment which is not being used or idle for long

Compressed air systems can account for up to 25% of electrical energy use. There are a number of common energy conservation opportunities for any compressed air system. These opportunities include, leak identification and repair, pressure reduction, control multi-compressor system operation, reduce or eliminate inappropriate uses, reduce or eliminate humidity performance problems, increase receiver storage capacity, waste heat utilization. More costly solutions include sequencing and flow controls, variable speed compressors to handle variable loads, and proper sizing and distribution of the compressed air system. Depending on system complexity, compressor system energy efficiency can be improved by as much as 20-50%. Upgrading thermal oxidizers in chemical manufacturing facilities can result in reductions of fuel use. Such improvements include installing a new burner and valves, refurbishing insulation, and installing an automatic burner management system to maintain efficient combustion. When upgrading, regenerative thermal oxidizers are more efficient than recuperative thermal oxidizers and should be evaluated. Additionally, recuperative catalytic oxidizers and regenerative catalytic oxidizers can further reduce fuel use. Retrofitting thermal oxidizers to include a catalytic system lowers the operating temperature and reduces fuel consumption by 50%. 9.0 CONCLUSIONS Based on the above analysis and findings, it can be concluded that a more scientific and engineered approach be taken when presenting an energy management proposal to top management in the calcium compound processing industry. The proposal is suggested, to include other benefits as well, as stated above. The calcium compound processing industry in general is more receptive to implementing energy management, efficiency and conservation initiatives, especially those initiated by the Asian Development bank, World Bank, United Nations Industrial Development Organizationand others. Effective energy management can help achieve more efficient use of energy without reducing production levels, product quality or employee morale, and without compromising safety and environmental standards. It should not only address higher efficiency generation, energy conversion, distribution and utilization, but also explore lower-cost energy alternatives.

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As energy costs, both economic and environmental, continue to rise, it is important to look for opportunities to conserve energy. Fortunately, there are numerous opportunities available for the calcium compound processing industry to work with to help reduce energy costs by increasing energy efficiency. The expected benefits of energy management, amongst others, include reduction in green house gas emissions, reduction in carbon footprint, reduction in energy consumption, significant improvement in quality of products, significant increase in customer’s confidence level, improved maintenance procedures etc. REFERENCES Anstett, M. and Kreider, J. F., 1993, “Application of neuralnetworking models to predict energy use”,ASHRAE Transactions, Part 1; pp. 505-517 Boyd, G., Tolley, G., Pang, J., 2002, “Plant Level Productivity, Efficiency, and Environmental Performance of the Container Glass Industry”, Environmental and Resource Economics, Volume 23, Number 1, September, Pages: 29 – 43. Carpenter, K. and Kissock, K., 2005, “Quantifying Energy Savings From Improved Boiler Operation”, Industrial Energy Technology Conference, 2005 New Orleans, Louisiana, May 11-12. De Groot, H.L.F., Verhoef, E., and Nijkamp, P., 2001, “Energy Savings by Firms: Decision-making, Barriers, and Policies”, Energy Economics, Vol. 23, Issue 6, pp. 717-740.

Engineering,Materials and Energy(ICFMEME 2012): Unpublished Paper” Kalogirou S.A., 2000, “Applications of artificial neuralnetworks for energy systems”, Applied Energy, Vol. 67, No. 1, September, pp. 17-35(19). Katipamula, S., Reddy, T.A., Claridge, D.E., 1998, “Multivariate regression modeling”, Journal of Solar Energy Engineering, Vol. 120, Issue: 3. Kissock, J.K., 1994. "Modeling Commercial Building Energy Use with Artificial Neural Networks", Intersociety Energy Conversion Engineering Conference, Vol. 3, pp. 1290-1295, Monterey, CA, August. Ramestohl, S., Clases, C., and Prose, F., 1997, “Duplicatingthe Success – From Positive Examples to Socio-economic Marketing Strategies for Greater Energy Efficiency in Industry.”, Proceedings of the European Council for an Energy Efficient Economy (ECEEE) Summer Study, SpindleruvMlýn, Czechia, June 9-14. Sandberg, P. and Söderström, M., 2003, “Industrial Energy Efficiency: The Need for Investment Decision Support from a Manager Perspective”, Energy Policy, Vol. 31, No. 15, pp. 1623-1634. United States Department of Energy, 1996a."North American Energy Measurement and Verification Protocol", DOE/EE-0081, U.S. Department of Energy, Washington, D.C.

Efficiency Valuation Organization, 2002, “International Performance Measurement and Verification Protocol: Concepts and Options for Determining Energy and Water Savings: Volume 1”, www.ipmvp.org. Fels, M. and Keating, K., 1993, “Measurement of Energy Savings from Demand-Side Management Programs in US Electric Utilities”, Annual Review of Energy and Environment, 18:57-88. Haberl. J., Sreshthaputra, A., Claridge, D.E. and Kissock, J.K., 2003. “Inverse Modeling Toolkit (1050RP): Application and Testing”, ASHRAE Transactions, Vol. 109, Part 2. Information on http://www.st.gov.my Information on http://www.schaeferkalk.com.de Jayaseelan.N; Faieza, A.A., 2012, “A Framework for Effective Energy Management Modelling in Industry: SCOPUS ISI Journal, Beijing, China]International Conference on Frontiers of Mechanical

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