6_cmi_thermline_boyer_en.pdf

Competitiveness and resource efficiency in

furnace technology

Michel BOYER CMI Industry February 14th, 2011

Disclaimer:This presentation does not engage CMI or EUnited or reflect their opinions. It may contain material that is confidential and privileged. Any review, reliance or distribution by others or forwarding without express permission is strictly prohibited. CMI and EUnited herewith exclude any liability for third-party information recognizably contained in this presentation. Third-party information does not necessarily reflect the opinion of CMI and EUnited.

14th February 2010[Michel BOYER]

Objectives

n Present and appreciate technological status and trends

n Propose technical and other policy solutions to achieve energy savings & lower environmental impact (example from steel industry).

n Using Case Studies from steel industry(CS):n Short term:

n Improvement of energy efficiency of existing equipments: implementation of Best Available Technologies (B.A.T.) for revamping. (CS#1 to CS#3)

n Medium term:n Application of new developments (CS#4)n Global approach (CS#5)

n Medium/long term:n R&D (CS#6)

APPLICABLE to all energy intensive industries producing materials.

CMI: a member of EUnited - European Engineering Industries Association


Furnaces design in steel industry: chronologyCMI: a member of EUnited - European Engineering Industries Association

1950 1960 1970 1980 1990 2000 2010…

Kyotoprotocol

Oil crisisPost warhigh steel market

expansionMetallurgy

developments

Computer simulation

Oil at 100$/barrel,EnvironmentalPressure,

Electricity marketliberalisation

World Crisis

Focus on productivity

First energy savings

considerationsMore flexible

furnaces

Energy savings+

Environmental pressure

Intensive Cost cutting

+Technology

breakthroughs


Short term: B.A.T. for revampingBackground

n From 2006 a significant part of furnace revampings in Europe integrated energy savings & lower emissions as parameters in economic evaluation, requiring implementation of Best Available Technologies (B.A.T.) for combustion & energy recovery due to :n Necessity to minimize the environmental impact of existing furnaces,

n Necessity to reduce operational costs, mainly fuel consumption and maintenance costs.

n But in all cases this was not the unique goal of the revampings motivated by the necessity to adapt the furnaces operating conditions to the new world context and justifying short payback:n Flexibility increase,

n Product quality increase,

n Productivity increase (*).(*) Productivity increase is no longer a driving force due to the foreseen long term overcapacity

In Europe.



Short term B.A.T. for revamping: CS # 1Regenerative burners in radiant tubes furnace

n Objective:n To increase performances of one Continuous Galvanizing Line (C.G.L.) furnace (fce.):

n Capacity increase,n Consumption savings.

n Solution:n Implementation of regenerative burners,n Existing radiant tubes are unchanged to limit the modification time and to limit CAPEX.

n Results:n The savings for maximum yearly output (450,000 tons per year) of the furnace are:

10.6 GWh or approx. 1,000 T.O.E. (Tons of Oil Equivalent)1,300 tons of CO2 saved24 tons of NOx avoided

Benchmark: Provided extensive study for each furnace, this technology could be applicable for :n 105 furnaces for Continuous Galvanizing Lines (C.G.L.) in E.U. (from which only one under construction will

be fully equipped with regenerative burners)

n 65 furnaces for Continuous Annealing Lines (C.A.L.) in E.U. – no one is equipped with regenerative burners



Short term: B.A.T. for revamping: CS # 2Regenerative & flameless burners in rotary hearth fce.

n Objective:n To increase productivity, to improve the efficiency, to decrease Nox emissions

& to comply with norms for a rotary hearth furnace

n Solution : Implementation of flameless regenerative burners

n Results:n The savings for maximum yearly output of the furnace (90000 tons per year) are

the following:

8.1 GWh or ~800 T.O.E. 33,000 tons of CO2 saved

1 ton of NOx avoidedBenchmark: Provided extensive study for each furnace, this technology could be applicable for :

n About 20 similar furnaces in E.U. not equipped with regenerative burners. (Not taken into account the walking beam furnaces, annealing and tempering furnaces involved in tube manufacturing process where same order of magnitude of savings can be also reached).


NO

x em

issi

ons FlamelessConventional


Short term: B.A.T. for revamping: CS # 3New generation of Math. Model for Annealing fce

n Objective:n Management in full automatic mode of Continuous Annealing Line (C.A.L.) furnace

dedicated to produce tin plate to increase capacity, increase product quality & decrease consumptions (gas, N2 & H2)

n Solution:n Implementation of new generation of mathematical modelto replace old control

n Results:n Line productivity was increased: approx. 7% in line average speed,n Yearly consumption gain at maximum output are :

67 T.O.E. (Direct + impact on final product)

Benchmark: Provided extensive study for each furnace, this technology could be applicable for :n 170 furnaces for Strip Processing Lines (C.G.L. & C.A.L.) in E.U. (1/3 have already old generations of

mathematical models which could be replaced as per explained in this C.S., 2/3 are not equipped with mathematical models – for which gains can be multiplied by 3 to 5 ).



Short term: B.A.T. for revamping: Conclusion

n Performing technologies for energy saving or emissions lowering are existing on the market but not always used. n In the previous case studies the main driving force was not environment or

consumption (leading alone to >> 5 years payback) but:n Productivity increase (8 to 22%) (no more considered in EU overcapacity)n Product quality improvement

n If B.A.T. implementation is imposed by E.U. for environment or consumption, the additional cost/ton of final product will jeopardize European producers competiveness with risks of relocation outside E.U.

n Some foreign countries (China for instance) are far more advanced for B.A.T. technologies implementation:n CAPEX payback is not always considered in state owned companies (indirect

subsidies)

n Premium for technology transfer to local suppliers is generally admitted

n Industry needs financial support (direct or indirect via third-party investors) to demonstrate and implement customized energy savings and emissions lowering solutions (3 to 6 months pre-studies required for each project) while keeping global competitiveness.



Medium term - Application of new developments Heat recovery from low t° sources: CS # 4

Application of heat recovery from low temperature sources for reheating furnaces for slabs:nEg.: Organic Rankine Cycle (ORC) not yet used in this industry: the low temperature heat is converted into useful work, that can itself be converted into electricity.

Note: The liberalization of electricity market opens a window toextend this technology to other intensive energy industries


Results:n Out of 11 MW lost by the fumes of the furnaces, 6 are recovered to produce 1.2

MW of electricityThis would represent yearly:

Approx. 1,100 T.O.E.2,500 tons of CO2 saved

550,000 € of electricity produced (*)(*) Hypothesis on the electricity price : 80 €/MWh (Belgium)

Benchmark: n Installed capacity in E.U. represents approx. 200 times above figures if ORC is installed on all reheating fces.


Medium term - Global approach Introduction

n A global pluri-disciplinary approach is necessary in medium term to evaluate & optimize energy in a specific industrial site by placing sources in front of sinks:n Use in efficient way

n Recovery from any & all sources

n Storage & transformation if any

n Distribution to any potential users

For one industrial unit (process unit), one industrial plant or one industrial area involving several plants.

n Such approach is under investigation for one industrial unit and involves already several partners:n Energy providers

n Equipment suppliers (for B.A.T. implementation)

n Industrial Customers (for investment & best operating practices)

n Banks



Medium term - Global approach Project of steel processing line furnace: CS#5

n Potential results:n For a 180.000 tons/year processing line, the following results on yearly energy

savings have been calculated:Available water at 123°C for plant or urban utilities :

20 GWh / year or 2000 T.O.E.Saving on Natural gas :

8 GWh / year or 800 T.O.E


Natural gas

heating soaking cooling

Hot waste gases : LOST

Cooling gas

Hot water : LOST

Conventional

heating soaking Cool 1 Cool 2 Cool 3preheat

Hot rolls

Cold water : 20°Water at 123°C for plant or urban utilities70°C132°C

403°C

330°C

386°C450°C

Natural gasHot waste gases : LOST

Global approach


Medium term – New developments & global approach Conclusion

n Medium term future:n Necessity to find and convince industrial partner to have an industrial pilot project:

n Industrial risk must be shared between supplier & customern Financing scheme must be developed and should involve end users, third-

party investors, banks, incentives (green certificates, others…)n Above global approach should be extended in a medium-long term:

n To all potential users such as:n Others plants in industrial areasn Energy providers & distributorsn Local communities (urban heating for instance)n Etc…

n To all potential actors:n Energy providersn Equipment suppliers (for B.A.T. implementation)n Industrial Customers (for investment & best operating practices)n Investorsn Political decision-makers at local, national & European level to support & give

incentivesn Environmental & energy standardization committees



R&D, new developments: CS # 6New patented cooling for steel processing linesn Objective:

n A breakthrough in strip cooling process to produce high resistance steels required for automotive with less energy consumption (target 4 times less) & emissions.

n Action plan for the development (5 years)n Theoretical development (PhD thesis) Finished(2007-2010)

n Development of the design tools Finished (end 2009)

n Industrialization process Finished (mid 2010)n Fluids diagramsn Mechanical designn Standardsn Process control

n Experiments at semi-industrial scale In progress mid 2010

n Industrial commercialization From end 2011

n Needs:n Necessity to finance development action plan

n Necessity to find and convince industrial partner to have an industrial project:n Industrial risk must be shared between supplier & customern Financing scheme must be developed and should involve end users, third-

party investors, banks, incentives (green certificates, others…)



Conclusions: main gains in energy and resource efficiency are coming and will come from INDUSTRY – but EC has a crucial role to play

Recommend ECn Acknowledge the role of multiple

actors and seek coherency n e.g. HIGH standards of ‘Best Available

Technology’ PLUS financing mechanisms

n Promote industrial cooperation (global approach) also in R+D

n Integrated Pollution Prevention and Control (IPPC) directive (under review)

n Support from ISO standards (in progress)

n Look to disseminate best practicesn Anticipate key levers such as

regulatory reporting (transparency and incentives) e.g. from Greenhouse Gas & Emissions Trading Scheme (GHG ETS).

n Time to impact = SHORT

Don’t recommend ECn Unfocused and inappropriate measures

proposed under EuP (Eco design Directive) (2009/125/EC)

n General measures from the “product”perspective won’t cover complex plants or systems like industrial furnacesn Too heterogeneous as vast majority of

furnaces are custom built and vary according to available fuel, application, large variety of processes, input materials, temperatures, atmospheres….

n Difficult standard extrapolation of CS scenario

n Components approach. is difficult to implement (same reasons)

n Time to impact = Fairly LONG (contrary to the Commission expectations)


Thank you for your attention


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