Energy Saving and Plant Performance Improvement

Energy Savingand

Plant Performance ImprovementSymposium on Japan - Czech future comprehensive cooperation of Energy and Environment Sector 4ｔｈMay ,2009,at Hilton Prague

Reliability NO.1 Your partner for success

1Chiyoda Corporation, may 2009

Contents

1. Introduction of Chiyoda Group2. Challenge of Japanese Industrial Sectors ;

Refinery/Chemical Plants and Chiyoda's Assistance2-1. Overview2-2. Energy Optimization by Pinch Technology


1. Name of Company Chiyoda Corporation

2. Date of Establishment January 20, 1948

3. Description of Company Integrated Engineering &Construction Service Provider

4. Name of President Takashi Kubota

5. Number of Employees Approx. 6,600 (Global Basis)

6. Capital ￥43.4 Billion

7. Revenues ￥603.6Billion (FY2007)

8. Head Office 2-12-1 Tsurumi-chuo Tsurumi-ku

Yokohama, Japan

Corporate InformationChiyoda Group (1/6)


Business FieldChiyoda Group (2/6)

Gas Value Chain

Gas upstreamLNG(liquefaction, receiving

terminals)Synthesis gasGTL

Petrochemicals & Chemicals

OlefinsAromaticsMethanolFertilizer

Pharmaceuticals

Metals &Mining

General Industry

Environmental Protection

Refineries

Upstream

Electronic materialsFood processing

Flue gas desulfurizationAcid gas/CO2 capture and storageEnergy conservation


Business Model

Operation and Maintenance service

By CLIENT

• Operator Assignment

• Start Operation

• MasterPlanningApproval

• BudgetApproval

• SpecificationApproval

• Drawing,CalculationApproval

• Attending ProgressMeeting

• Inspection • Attending ProgressMeeting

• Inspection

• Procedure Approval

• Basic Concept• Market Research• etc.

OPTION(If Required by Client)

FINANCE ARRANGEMENT• Investor Research• Official Development Assistance• Export Credit Agency• Other Funds

Research & Developmentfor Applied Mechanics, PollutionControl Technology, etc.

By CHIYODA

• Basic Operation,Logistics Concept

• Market Research

• Future Program

• Feasibility Study

• etc.

• Site, CapacityDetermination

• Basic Data• Master

Schedule• Manning

Schedule • Budget

Estimation• Other Client’s

Requirement• etc.

• Basic Design• Review of

Equip.• Review of

Material, Heat & Other Balance

• Construction CostEstimation

• Budget Allocation

• etc.

• Basic DesignSchedule

• Specification for subcontracting

• Quotation• Evaluation of

Sub-Contractor• Detail Design• etc.

• Procurement Detail Schedule

• VendorSelection

• Purchase Order

• Machine/Equip. Fabrication

• Inspection• etc.

• Construction Detail Schedule

• Temporary Work• Notification to

Authorities• Selection of

Subcontractor• Subcontracting• Construction under

Quality, Safety, Cost,Schedule Control

• Inspection• Preparation for

Commissioning• etc.

• Power -In• Machine

& Equip.Start-Up

• PipeFlushing

•etc.

• Training ofOwner’s Operator

Project Concept Master

Planning Basic Design Engineering

(Detail Design)Procurement

ConstructionCommissioning

TrainingOperation

Maintenance

EPC/EPCm EPC/EPCm O&MO&M

Plant Lifecycle EngineeringPlant Lifecycle Engineering

FEED*FEED*Project PlanningProject Planning

Decommissioning

DecommissioningDecommissioning

*Front-End Engineering Design

Chiyoda Group (3/6)


Asset Integrity Management ServiceChiyoda Group (4/6)

Maintenance Maintenance ManagementManagement

InspectionInspectionManagementManagement

RiskRiskManagementManagement

EconomicEconomicManagementManagement

HSEHSEManagementManagement

InformationInformationManagementManagement

Safe & Stable Operation Safe & Stable Operation Safe & Stable Operation

Asset Management Strategy

Asset Management Strategy

High Performance Operation

EquipmentReliability

EquipmentReliability

DiagnosticsDiagnosticsAdvanced Eng.Advanced Eng.

WorkManagement

WorkManagement

EAM/CMMSEAM/CMMS Business Process

Consultation

Business Process

Consultation・Material Engineering

& Diagnosis・Lifecycle Engineering

& Risk Consulting

・SystemImplementation

・Data Preparation & Migration

・Business ProcessManagement

System Optimization

System Optimization

Process Performance

Process Performance

・Energy Saving・Process

Optimization


Diagnosis of Existing Facility :Fired Heater

Plant Reliability Improvement by Advanced Eng’g (5/6)

TMT[℃]

Tube Skin Temperature

Upper Tube

Side TubeGas Temperature Flow Pattern

Flue Gas Flow

0.00.10.20.30.40.50.60.70.80.91.01.11.2

0 100 200 300 400 500

輻射部入口からの距離(m)

コーキング速度(-)

Time=720hr

Steam Rate：300kg/hrSteam Rate：600kg/hr

Distance from Radiant Inlet (m)

Cok

ing

Rat

e (-)

0.00.10.20.30.40.50.60.70.80.91.01.11.2

0 100 200 300 400 500

輻射部入口からの距離(m)

コーキング速度(-)

Time=720hr

Steam Rate：300kg/hrSteam Rate：600kg/hrSteam Rate：300kg/hrSteam Rate：600kg/hr

Distance from Radiant Inlet (m)

Cok

ing

Rat

e (-)

Coking Prediction

Coke Volume Distribution (Inside Tube)

Coking Rate

To examine....

- Flue gas flow pattern and temperature

distributions

- Tube heat flux distributions

- Tube skin temperature distributions

- Coking rate inside cracking tube

Coking Simulation

FilmFilm

CBS

CS C*

1)

2)3)ks

X=αC*

4)

Oil Oil PhasePhase

Tube MetalTube Metal

FilmFilm

CBS

CS C*

1)

2)3)ks

X=αC*

4)

Oil Oil PhasePhase

Tube MetalTube Metal

C*BS(

≒0)


Chiyoda Group Companies JAPANChiyoda Corporation

* Yokohama Head Office* Koyasu Research & Development Center

Chiyoda Advanced Solutions Chiyoda KoshoChiyoda Keiso

THE NETHERLAND* The Hague Representative Office

CHINA- Chiyoda Corporation (Shanghai)* Beijing Office

THAILAND- Chiyoda (Thailand) Limited* Bangkok Head Office

NIGERIA- Chiyoda Nigeria Limited

* Lagos Office

SAUDI ARABIA- Chiyoda Petrostar Ltd.

* Al-Khobar Office* Jeddah Head Office

UAE* Abu Dhabi Office

QATAR- Chiyoda Almana Engineering L.L.C.*Middle East Headquarters Doha Office

INDONESIA- P.T. Chiyoda International, Indonesia* Jakarta Office

SINGAPORE- Chiyoda Singapore (Pte) Ltd.* Singapore Human Resources Office

MALAYSIA- Chiyoda Malaysia Sdn. Bhd

MYANMAR- Chiyoda & Public Works

Co., Ltd.

U.S.A- Chiyoda International

Corporation

INDIA- L&T Chiyoda Ltd.

PHILIPPINES- Chiyoda Philippines Corporation

ITALY* Milan Representative Office

RUSSIA- Moscow Office

KOREA* Korea Representative Office

AUSTRALIA- Chiyoda Oceania Pty Ltd.

- Major Overseas Subsidiaries & Affiliated Companies* Overseas Offices

Chiyoda Group (6/6)


Overview (1/5)Challenges: in case of Refineries in Japan: in case of Refineries in Japan

■■ Energy SavingsEnergy Savings＊＊ IndustryIndustry’’s formulated Action Plan to reduce energy use s formulated Action Plan to reduce energy use

by 1by 133% by 2010 was adopted% by 2010 was adopted＊＊ Until 2007, unit energy consumption by 15% was alreadyUntil 2007, unit energy consumption by 15% was already

improvedimproved■■ Production Continuity with an Aged PlantProduction Continuity with an Aged Plant＊＊ Most of Japanese refineries were constructed Most of Japanese refineries were constructed before 880's0's＊＊ Reliable Production Continuity Plan is strongly required Reliable Production Continuity Plan is strongly required

even for aged planteven for aged plant


Methodology for Solution

Overview (2/5)

Advanced Engineering

Plant Performance Improvement

FactFactFindingFinding


Achievements : Energy Savings inJapanese Refineries

Overview (3/5)

0.50

0.60

0.70

0.80

0.90

1.00

1990 2007 2010

Year

1.0

Actual

0.85

Target

0.87


Achievements : Plant Performance Improvement in Japanese Refineries

Overview (4/5)

Source: Agency for Natural Resources and Energy, Current Status of Japanese Refining Industry (2006 )

Country No. of Shutdowns No. of Shutdownsper Crude Throughput

Japan 15 Base (=100)

USA 254 480

UK 10 180


Chiyoda’s Recent Experience in Energy Saving

Overview (5/5)

Refinery 11Petrochemicals 72Power plant 9Steel 8Pharmaceuticals 1Others 10

Total 111

As of Oct.2007 in the past 6 years


Pinch Technology Energy Optimization by Pinch Technology (1/10)

＊Analytical Method to find the best way to utilize heat efficiently＊Expansion of Pinch Application

400

300

200

100

0-400-500 -300 -200 -100 0 100 200 300 400 500

Enthalpy [10^6kcal/h]

Solid: Target Dotted: Actual

Tem

pera

ture

(ºC

)

Optimization of steam level consumed

Optimization of steam level generated

Recovery of Hot Water and its utilization

Recovery of very low pressure steam and its utilization

Heating Media

Cooling Media

HeatingHeatingdemanddemand

CoolingCoolingdemanddemand

Actual

coldcold

hot

hot

RegionalOptimization

Multi-UnitsOptimization

Ene

rgy

Savi

ng

Zer

o E

mis

sion

Present Future

IndividualOptimization

Past

Evolution of Pinch TechnologyAnalysis of Heat-utilization by Pinch Technology


Energy Optimization by Pinch Technology (2/10)

CHIYODA’sExperience of FS for energy sharing

MIZUSHIMA

MIZUSHIMA

10 major industrial areas in Japan

CHIBACHIBA

KAWASAKI

YOKKAICHIOSAKASYUNAN

KASHIMAKASHIMA

UBEUBE

OHITAOHITA

①①

②②

KITA-KYUSYU

Industrial areas in Japan studied with Pinch Technology


How to apply Pinch TechnologyEnergy Optimization by Pinch Technology (3/10)

Pinch Analysis (Ind. area)

30%40%50%60%70%80%90%

100%

0.00 0.50 1.00 1.50 2.00 2.50工場熱電比率 (R)

工場

コージェネ効

率

-1000

100200300400500600700

Tem

pera

ture

[C]

-1000 -800 -600 -400 -200 0 200 400

SourceSinkHot UtilityCold Utility

加熱用役のターゲット

クラスター排熱100

200

300

400

500

600

Tem

pera

ture

[C]

-50 -25 0 25 50 75 100125150Enthalpy [MW]近隣への熱輸送

Ind. AreasAnalysis

Pinch Analysis (Each Site)

Site E

30%40%50%60%70%80%90%

100%

0.00 0.50 1.00 1.50 2.00 2.50工場熱電比率 (R)

工場

コージェネ効

率

0

50

100

150

200

250

Tem

pera

ture

[C]

-100 -50 0 50 100Enthalpy [MW]

コージェネ効率解析

Site D

30%40%50%60%70%80%90%

100%

0.00 0.50 1.00 1.50 2.00 2.50工場熱電比率 (R)

工場

コージェネ効

率

0

50

100

150

200

250

Tem

pera

ture

[C]

-100 -50 0 50 100Enthalpy [MW]


Site C

30%40%50%60%70%80%90%

100%

0.00 0.50 1.00 1.50 2.00 2.50工場熱電比率 (R)

工場

コージェネ効

率0

50

100

150

200

250

Tem

pera

ture

[C]

-100 -50 0 50 100Enthalpy [MW]


Site B

30%40%50%60%70%80%90%

100%

0.00 0.50 1.00 1.50 2.00 2.50工場熱電比率 (R)

工場

コージェネ効

率

0

50

100

150

200

250

Tem

pera

ture

[C]

-100 -50 0 50 100Enthalpy [MW]


Site A

30%40%50%60%70%80%90%

100%

0.00 0.50 1.00 1.50 2.00

2.50工場熱電比率 (R)

統合

エネル

ギー効

率

0

50

100

150

200

250

Tem

pera

ture

[C]

-100 -50 0 50 100Enthalpy [MW]

Co-Gen Analysis

Plant Profile

Establishment of Data Base

Site E

排熱データ蒸気ユーザー

用役バランス用役リスト

Site D



Site C



Site B



Site A

Waste Heat DataSteam User

Utility BalanceUtility List

Multiple sites are condensed into one virtual site that is pinch-analysed

Individual site analysis Area analysis


Potential energy savings :Chiba and Mizushima AreasEnergy Optimization by Pinch Technology (4/10)

① Chiba ②Mizushima Mizushim/Chiba

1) No. of Sites 23 35 1.52) Integrated fuel

Consumption (Fuel + power)2.88 mil.kL 3.50 mil.kL 1.2

3) Theoretical energy saving potential by R-Curve

analysis

0.51mil.kL 0.95 mil.kL 1.9

4) Theoretical energy saving potential by SSSP analysis

0.13 mil.kL 0.30 mil.kL 2.3

Total 0.64 mil. kL 1.25 mil. kL

Domestic crude oil consumption Equiv. to 1day

Equiv. to 2days

Summaryunit：Annual crude oil rate equivalentmil.kL:million kL

Domestic crude oil consumption in Japan: 0.60 million kL/day (approx.)


History of Realization of Energy Saving Energy Optimization by Pinch Technology (5/10)

2002 2003 2004 200520012000

FeasibilityStudy

BasicDesign Engineering

Project Development

Execution①① Chiba areaChiba area

FeasibilityStudy

BasicDesign Engineering Execution

②② MizuhsimaMizuhsima areaareaFuji oil & Sumitomo chemical

FSBasic DesignEngineering

ExecutionKashima areaKashima area

FSBasic DesignEngineering

OhitaOhita areaareaUbe areaUbe area


Map of Chiba Area Energy Optimization by Pinch Technology (6/10)

AnegasakiAnegasaki GoiGoi

Refinery: 1Petrochemical: 3Others: 1

Refinery: 2Petrochemical: 4

Refinery: 1Petrochemical: 11

RoadRoad

2km

15km

N


Energy Saving Project in Chiba AreaEnergy Optimization by Pinch Technology (7/10)

Utility

Fuji OilFuji Oil

Sumitomo Sumitomo ChemicalChemical

Process ProcessPower

generationHeat sharing

Road

2.0km2.0km××2.5km2.5km



The 27th Energy Conserving Machinery Awards, Jan. 2007

Energy Saving:10,500 kL/YrCO2 reduction;28,000 ton/yr

Integrated energy monitoring system


Achievements in Chiba Area : Energy SavingEnergy Optimization by Pinch Technology (8/10)

Temp.℃

Fuji Oil Sumitomo

1200

150100

Utilizing

Area U

tilizing Area

Wasted

Area

LH

Power

Generation

Energy Conservation

4,900kl/y

Energy Conservation

5,600kl/y

CO2 Reduction28,000t-CO2/y

Recent Achievement


Achievements in Chiba Area :Integrated Energy Monitoring System


Data Data

Level 2Area Optimization

Level 1Single Site

Optimization

FujiOil

SumitomoChemical

Boiler water

Shared Energy

Network


Features;Features;1) Secrecy1) Secrecy2) Robustness2) Robustness3) Expandability3) Expandability


Achievements in Chiba Area :Low Heat Power Generation System


VaporizerVaporizer

CondenserCondenser TurbineGeneratorTurbineGenerator

Circulation pump

Circulation pump



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