GSK Sydney rev01 - armstronginternational.com...Qnet = NCV of fuel at constant pressure = 10986.4 kcal/m3 3 Loss due to unburned gases in flue gases (L3) 2 net = 0.06 % where k1 =

GlaxoSmithKline 82 Hughes Avenue

Locked bag 3, Ermington

NSW 3155 - Australia

STEAM AND CONDENSATE AUDIT REPORT

Audit Date: 9th

to 13th

July 2012

PROJECT 90181-AUS-SYD

1 Emission S. Raikar P. Provot 16/08/2012 Item Description Established Checked out Date

STEAM AND CONDENSATE AUDIT

90181-AUS-BOR

GlaxoSmithKline, Ermington, Australia Date: 16/08/2012

Page 2 of 24

To the attention: Mr. Dean Benke Established by

S. Raikar

Acknowledgement

An Engineering Audit is a venture between Energy Experts and Plant Experts to define

opportunities for optimization. The contribution of the plant’s team is extremely important in this

venture. We sincerely acknowledge the contribution of the following dignitaries and site

engineering personnel whose co-operation helped to conclude to the quality of the data analysis

and conclusions.

� Mr. Phillip L Osborne - Environmental Sustainability Cluster Head

� Mr. Dean Benke – Facility & Sustainability Manager

We are also thankful to the all other staff members who were actively involved while collecting the

data and conducting the field trials.


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S. Raikar

TABLE OF CONTENTS

ACKNOWLEDGEMENT________________________________________________02

1. EXECUTIVE SUMMARY________________________________________________04

2. STEAM BUDGET AND SUMMARY OF POTENTIAL SAVINGS_______________________06

3.1 OPTIMIZATION PROJECT NO1___________________________________________12

RECOVER FLASH STEAM FROM CONDENSATE PUMP RECEIVER TO PRE HEAT BOILER FEED

WATER


INSULATE ALL IDENTIFIED UN-INSULATED VALVES, STRAINERS, PRV’S ETC TO REDUCE

DISTRIBUTION LOSSES


REPLACE ELECTRICAL HEATER OF COMPRESSOR AIR DRYER BY STEAM HEATER

4.0 COMPLETE CHECK LIST OF ALL VERIFICATIONS DONE DURING THE AUDIT ___________ 21

5.0 CONCLUSION AND RECOMMENDED NEXT STEP______________________________ 23


90181-AUS-BOR


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S. Raikar

1 Executive summary

GlaxoSmithKline is a world-leading, research-based pharmaceutical company operating in

more than 100 countries and employing more than 100,000 people world-wide. It is a global

research-based pharmaceutical and healthcare company with a mission to improve the quality

of human life by enabling people to do more, feel better and live longer.

In Australia GSK have improved people’s wellbeing by delivering the highest quality

medicines, vaccines and over-the-counter healthcare products since 1886. GSK provide

about 1600 skilled jobs across the country, working with researchers and doctors to discover

new ways of treating and preventing disease. In 2011 GSK invested $58 million a year in local

research and development, and made significant contributions to Australia’s $4.2 billion

pharmaceutical and medicinal exports.

GlaxoSmithKline’s site at Ermington, in Sydney’s north, manufactures and markets consumer

products that are sold in pharmacies and supermarkets. Many of GSKs most well known

products are manufactured at the facility, including Panadol and Macleans. Each year the

plant produces more than 50 million packs of Panadol, 10 million bottles of paediatric liquids

and 22 million tubes of toothpaste. Products are exported to 15 different countries.

In 2006 GSK celebrates 50 years of Panadol in Australia, and the popular pain relieving drug

has been manufactured at Ermington since 1959.

As a part of the energy conservation activity, Armstrong has conducted an Energy audit of

Steam and Condensate network from 9th

to 13th

June 2012.

The energy audit covers the 4 parts of the steam loop: boiler house, steam distribution, steam

consumption and condensate return.

As decided after the first day on site, the initial issue we concentrated on boiler house to

check the efficiency. Based upon our measurements and calculations during the audit, the

overall boiler house efficiency is 88.56% on Lower Heating Value.


90181-AUS-BOR


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S. Raikar

One boiler of capacity 2000 kW was operated to cater steam and hot water demand of the

plant. Boiler stack oxygen is measured in the range of 2.9 – 3.4% which is best compared to

industry standard. Boiler is provided with economizer. Stack temperature after economizer is

measured in range of 89°C – 94°C which is low compared to industry standard.

Although the steam distribution system is old and oversized, during audit, insulation surface

temperature was found within good operating practice. Few uninsulated valves were identified

in the plant. Insulating these uninsulated valves fuel consumption can be reduced by1.7%.

Leaking steam traps are already being taken care of by other companies and are therefore

not covered in this audit.

Presently all recoverable condensate from the process is recovered. During the audit, it was

observed that flash steam from the plant is not recovered and is vented to atmosphere.

Recovering this flash steam for pre heating boiler feed water 2.1% fuel saving can be

achieved.

In compressor house, replacing electrical heater used for dryer regeneration by steam heater

operating cost can be reduced substantially.

We estimate the potential energy savings of at least 3.8% of the current yearly steam

budget of 106 632 $, which represents a yearly saving of about 4 081 $. In addition to this

4 607 $ operating benefits can be achieved by replacing electrical heater of air dryer by steam

coils.

This amount 136.32 MWh energy and 46.9 tons of CO2 savings with payback period of 4.9

years


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S. Raikar

2 Steam budget and summary of potential savings

Total yearly steam consumption (in 2011): 2 760 059 kWh

Total yearly steam budget (in 2011): 106 632 $/year

During the audit, one (2000 kW) boiler was operated continuously to cater plant steam and

hot water demand. Natural gas is used as fuel. Average steam generated by the boiler is 383

kg/hr at 655 kPa g pressure. Hot water at 165 °C is also supplied by boiler to process area to

cater plant hot water requirement. Average hot water demand is estimated as 83.6 kWh.

Since separate gas flow meter was not installed for boiler house, boiler house gas

consumption is estimated using boiler indirect efficiency. Gas consumption for boiler is

estimated as 30 m3/hr. Low pressure steam is injected in feed water tank to maintain boiler

feed water temperature at 80 deg C.

Boiler heat load variation with time


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S. Raikar

As most of the processes in the plant are of batch type, steam and hot water demand varies

considerably. During audit average plant heat load was measured as 383 kWh with peak of

659 kWh.

Boiler Efficiency – Indirect method

Flue gas analysis result

Boiler – 2000 kW 1 2 3 4 5 6 7 8 Avg

O2 % 3.1 3.1 3.2 3.3 2.9 3.0 3.3 3.4 3.2

CO2 % 10.74 10.74 10.68 10.62 10.86 10.80 10.62 10.56 10.7

CO ppm 161 146 68 39 206 208 202 53 135.4

Ex Air % 17.3 17.3 18.0 18.6 16.0 16.7 18.6 19.3 17.7

Tstack 94.9 95.0 95.8 96.2 93.0 91.0 94.3 95.7 94.5

EFFICIENCY CALCULATIONS FOR BOILER AS PER BS 845 PART I 1987

Fuel Natural Gas

Moisture in Fuel 1.5 %

Hydrogen in Fuel 23 %

Net Calorific Valve 10986 kCal/m3

1 Loss due to sensible heat in dry flue gases (L1)

= 2.49 %

where

Knet = const based on calorific value of fuel

= 0.39 Siegert constant

t3 = temp of flue gases leaving Boiler

= 86.8 deg C

ta = temp of air entering combustion system

= 18.4 deg C

Vco2 = Volume of CO2 in gases leaving boiler (dry)

= 10.7 %

( )

2

31Vco

tatknetL net

−⋅=

( )

2

31Vco

tatknetL net

−⋅=


90181-AUS-BOR


Page 8 of 24


S. Raikar

2 Loss due to enthalpy in water in flue gases (L2)

= 1.43 %

where

mH2O = moisture in fuel

= 1 %

H = Hydrogen content of fuel

= 23 %

t3 = temp of flue gases leaving boiler

= 86.8 deg C

ta = temp of air entering combustion system

= 18.4 deg C

Qnet = NCV of fuel at constant pressure

= 10986.4 kcal/m3

3 Loss due to unburned gases in flue gases (L3)

= 0.06 %

where

k1 = Constant

= 40

Vco2 =

= 10.7 %

Vco = Volume of CO in gases leaving boiler (dry)

= 0.01354 %

Qnet = NCV of fuel at constant pressure

= 10986.4 kcal/m3

Qgr = GCV of fuel at constant pressure

= 12419 kcal/Nm3

4 Unbrunt Loss (L4)

L4net = For package boiler unbrunt loss are assumed as 0.5%

5 Radiation, conduction & convection losses (L5)

L5net = Boiler Rated Capacity

Boiler Operating Capacity

Qnet

ttHOmHL a

net

)1.22.4210()9(2 32 +−⋅+

=

net

gr

Q

Q

VcoVco

VcoKnetL •

+

⋅=

2

13

Qnet

ttHOmHL a

net

)1.22.4210()9(2 32 +−⋅+

=

net

gr

Q

Q

VcoVco

VcoKnetL •

+

⋅=

2

13


90181-AUS-BOR


Page 9 of 24


S. Raikar

= 6.6 %

Boiler Rated Capacity 2000 kW

Operating Capacity 304 kW

6 Total losses (Lt)

Ltnet L1+L2+L3+L4+L5+Blowdown loss (0.38%)

= 11.44 %

6 Thermal Efficiency η

= 88.56 %

LtnetEnet −= 100 LtnetEnet −= 100


90181-AUS-BOR


Page 10 of 24


S. Raikar

Summary of identified energy-saving optimisations and their estimated yearly results:

Optimisation Project Energy

saving in

kWh

Energy

saving in

$.

Decreased CO2

emissions in

ton

Total project

investment

cost in $.

Payback

time in

years

Optimization N˚1

Recover flash steam from

condensate pump receiver to pre

heat boiler feed water

79 310 2 252 14.4 7 150 3.2

Optimization N˚2

Insulate all identified un-insulated

valves, strainers, PRV’s etc to

reduce distribution losses

57 010 1 828 10.0 9 050 4.9

Optimization N˚3

Replace electrical heater of

compressor air dryer by steam

heater

-- 4 607 22.5 26 750 5.8

Total 136 320 8 687 46.9 42 950 4.9


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S. Raikar

Note:

� Values marked as * imply a requirement of in-depth review to ascertain confirm saving potential

� Savings are calculated on only heat recovery basis.

� Savings are based on the data furnished by the plant head and data collected during the study period.

� Investment considered for the payback calculations are based on budgetary prices of the items considered and

may change depending upon implementation time & the prevailing market situation. At an Audit level

investments are calculated with an accuracy of ±25%.

The above investment and saving estimates are developed according to standard engineering

practices and are based on Armstrong’s extensive experience in steam and utility systems.

More accurate investment estimates will be available after the scope of work to be done by

AIPL is defined and jointly agreed upon by GSK and AIPL as well as upon completion of

Detailed Engineering Design.


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Page 12 of 24


S. Raikar

3.1 Optimisation Project N°1:

Recover flash steam form condensate pump receiver to pre – heat boiler feed water

Current System Description and Observed Deficiency

In GSK, all recoverable condensate from the plant is recovered to boiler house. Currently

two steam operated condensate pumps are installed to recover this condensate. However

flash steam generated is not recovered and is vented

off.

During the audit, it was observed that the sizable

quantity of the flash steam is vented off from the

receiver of the condensate pump installed in the

boiler house. Refer photo.

A provision is provided for low pressure live steam

injection into the feed water tank to maintain boiler

feed water temperature 80 - 90°C. The feed water

tank is located in the same building near roof area.

Technical Discussion

When steam heats the process liquid, around 75% of its energy is transferred to process

and steam condenses. Balance 25 % energy is held by the condensed water. The

condensate is distilled water, having almost zero TDS. Condensate when discharged

through steam trap from a higher to a lower pressure. Certain amount of condensate re-

evaporates, and is referred to a Flash Steam.

The proportion that evaporates varies according to the level of pressure reduction between

the ‘steam’ and ‘condensate’.


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S. Raikar

About half of the energy mentioned above is lost through flash steam if it is not recovered.

Flash Steam recovery is therefore an essential part of achieving an energy efficient

system.

Advantage of Recovering Flash Steam

� Flash Steam has high heat content.

� Using flash steam in heating feed water de-aerator or Hot water system will reduce live

steam injection.

� Conserve energy as well as precious water.

Recommended Optimization

Armstrong recommends using this flash steam to preheat boiler feed water using flash

vessel and atmospheric de-aerator head

Estimated Benefits

By recovering flash steam for hot water generation will save $ 2252 annually. The savings

are calculated based on 2011 average steam production and the respective efficiencies.

Approximate Amount of Flash Steam

in Condensate

Condensate

85%

Flash Steam

15%

Approximate Amount of Flash Steam

in Condensate

Condensate

85%

Flash Steam

15%

Approximate amount of Energy in Flash

Steam & Condensate

Flash Steam

50%

Condensate

50%

Approximate amount of Energy in Flash

Steam & Condensate

Flash Steam

50%

Condensate

50%


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S. Raikar

Details of calculations

Total recovered condensate 275.76 kg/hr

Steam pressure 6.5 brag

Steam pressure at consumption point 3.5 barg

Flash steam generated 18 kg/hr

Makeup water flow 109 kg/hr

Energy in flash steam 7867 kcal/hr

Makeup water temperature 21 Deg C

Net recoverable heat 7549 kcal/hr

Estimated gas saving 0.78 m3/hr

Estimated Energy Saving 286 GJ/annum

79310 kWh/annum

Estimated water savings 112 KL/annum

Estimated annual monetary savings 2252 $/annum

The CO2 emissions reduction by using flash steam is estimated as 14.4 ton/year

Estimated Investment and Payback

The investment is estimated at $ 7,150. It includes:

� Flash vessel with steam trap and other accessories

� Atmospheric de-aerator head or spargers

� Piping with insulation, Installation and commissioning

� Labour Costs

The payback of this installation is expected to be 3.2 years

* Note - Investment considered budgetary, detail costing has to be taken form supplier


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S. Raikar


Insulate all identified un-insulated valves, strainers, PRV’s etc to reduce distribution losses


During ETS, insulation survey was conducted with infrared thermal imaging camera to

identify the heat losses in distribution network. In the entire plant 31 valves/ strainers were

identified as un-insulated (above 2” globe type, control valve, Pressure Reducing valve,

steam separator, etc). Approximately 50 mts hot water piping 3” found to be un-insulated.

These valves are on high pressure steam line causes heavy radiation losses. The surface

temperature of these valves was measured in the range of 105 to 165 ˚C.

Some of the infra red images of the un-insulated valves are below.


90181-AUS-BOR


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S. Raikar

Photos of un-insulated surfaces


As steam travels in the pipeline it loses heat to the surrounding due to convection and

radiation. The heat loss due to convection and radiation causes steam to condense.

Though insulation cannot prevent this heat loss but proper insulation can reduce this

energy loss to large extent. Reduce distribution losses by insulating all identified un-

insulated valves, strainer, moisture separator and other identified hot surfaces help in

reducing valuable fuel and energy.


Armstrong recommends using insulation jackets to insulate all identified un-insulated

surfaces thereby reducing energy consumption.

Estimated Benefits




90181-AUS-BOR


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S. Raikar


Nos m2 kW/m2 Heat Loss kWh

High Pressure valves 150 °C

Valve DN40 7 0.144 1.66 1.42

Valve DN80 8 0.313 1.66 3.53

Valve DN100 1 0.435 1.66 0.61

Low Pressure valves 105 °C

Valve DN40 14 0.144 0.83 1.42

Valve DN50 1 0.205 0.83 0.14

Estimated energy loss 7.13

6127 kCal/hr

Estimated fuel savings 0.63 m3/hr

Estimated annual savings 1828 $/annum

Estimated Energy Saving 205 GJ/annum

57010 kWh/annum

The CO2 emissions reduction by using flash steam is estimated as 10 ton/year


The investment is estimated at $ 9 050 It includes:

� Insulation jackets for valves and other accessories

� Installation and commissioning

� Labour Costs




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S. Raikar


Replace electrical heater of compressor air dryer by steam heater


In GSK, compressors are provided with desiccant dryer to dry generated compressed air.

During the audit, it was observed that electrical heater was used during regeneration cycle

to generate hot air for regeneration. Dryer regeneration cycle time is 4 hrs and the dryers

are regenerated once a day. Electricity consumption for dryer regeneration was measured

as 121.2 kWh per cycle.

During the audit, it was also observed that the plant is having boiler of 2000kW and is

operated at part load. Natural gas is used as boiler fuel. Boiler operating pressure is 655

kPa g.

Compressor power consumption with and without dryer in operation

Compressor power consumption

with air dryer in operation

Compressor powe consumption

without air dryer operation


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S. Raikar

Current drawn by air dryer


Using steam for generating hot air and using it for dryer regeneration is more economical

compared with electrical heating. This will also help in reducing CO2 emission.


Armstrong recommends using steam heater for generating hot air for dryer regeneration.

Estimated Benefits




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S. Raikar


Present heat load of Air dryer 121.233 kWh/cycle

Cost of operation 20.1 $/day

6646.4 $/annum

35.6 T CO2/annum

Proposed heating with steam

Heat load 104241.6 Kcal/cycle

Steam at 6 barg

Hfg 484 kcal/kg

Amount of steam required 259 kg/cycle

Gas consumption 17 m3/cycle

Cost of operation 6.2 $/cycle

14.0 $/cycle

Energy consumption 258 GJ/annum

Estimated CO2 Emission with steam 13.1 T CO2/annum

Estimated annual monetary savings 4607 $/annum

The CO2 emissions reduction by using flash steam is estimated as 22.5 ton/year


The investment is estimated at $ 26 750. It includes:

� Steam radiator with temperature control valve

� Steam trap with accessories

� Piping with insulation, Installation and commissioning

� Labour Costs




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S. Raikar

4.0 Complete check list of all verifications done during the audit

Potential Optimization Status Comments

Boiler House

Boiler Pressure Setting Appropriate

Feed water temperature to the

boiler

Not okay, to be

improved by

recovering flash

steam for pre-

heating feed water

Measured 78 °C

Stack Temperature Low compared to

standard, may

result in

economizer

corrosion

Stack temperature measured as

85 – 96°C.

Combustion air temperature Okay

Oxygen in boiler stack Good Stack oxygen is measured in the

range of 2.9 – 3.4% at 20% load.

Boiler Sizing Not okay Boiler is oversized

Blowdown rate Okay Slightly above recommended

TDS. Present boiler average

drum TDS is 2150 ppm against

recommended is 2000 ppm

Boiler blow-down recovery Not installed Not economically feasible

Deaerator Pressure Okay No deaerator

Steam metering Okay Steam flow meter is provided on

boiler outlet. Working okay

Gas flow measurement Not okay, A

dedicated gas flow

meter needs to be

provided for boiler

Flow meter not installed


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S. Raikar

Potential Optimization Status Comments

Steam Distribution

External leaks of steam or

condensate from pipes, flanges,

etc.

Good No steam leakages identified in

the plant

Steam Quality Okay No corrosion, erosion problem

reported

Sizing of steam lines Oversized Changing to correct sizing not

economically possible

Steam Pressure drop Good No pressure drop observed in

the plant

Steam pipe insulation Not okay, to be

improved by

providing insulation

Surface temperature checked

and found with permissible limits

however valves, PRV’s, strainers

are not insulated

Pressure reduction Okay All pressure reducing station

found working satisfactory

Steam Consumption

Condensate draining and air

venting for AHU

Okay, to be

improved

Most of the AHU coil found

flooded with condensate

Steam Trap Survey Okay As per plant record trap failure

rate is less than 5%.

Condensate and flash steam Recovery

Condensate recovery Good All recoverable condensate form

the plant and header traps is

recovered back to boiler feed

water tank

Sizing of condensate return line Okay No water hammering observed

Flash steam recovery Not okay, to be

improved

Flash steam from plant to be

recovered for boiler feed water

heating


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S. Raikar

5.0 Conclusions and Recommended Next Steps

The Steam and Condensate Engineering Audit has defined a total potential of $ 8 688 savings

that are summarized in the following table.

Sr.

No Description

Energy

(GJ/Year)

Fuel

(kWh/year)

Water

(KL/Year)

Financial

Savings

($./annum)

CO2

Emission.

Reduction

(Ton/Year)

1

Optimization N˚1

Recover flash steam from

condensate pump receiver to pre

heat boiler feed water

286 79 310 112 2 252 14.4

2

Optimization N˚2

Insulate all identified un-insulated

valves, strainers, PRV’s etc to

reduce distribution losses

205 57 010 -- 1 828 10.0

3

Optimization N˚3

Replace electrical heater of

compressor air dryer by steam

heater

-- -- -- 4 607 22.5

The savings only include utilities savings. Maintenance, safety and process optimizations are not

represented in those numbers. Armstrong would be glad to prepare a proposal for their

implementation. The other projects will need a step of further engineering to define the exact

solution and refine the investments in order to be able to provide a turnkey proposal.


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S. Raikar

Confidentiality Notice

This engineering audit report has been submitted to M/s. GSK Ermington, Australia in confidence

and it contains trade secrets, as well as privileged information, and/or proprietary work product of

Armstrong International Pvt. Ltd. (AIPL), In consideration of the receipt of this report and the

information and data herein, Recipient agrees that it will use this document and the information

contained herein only for internal use and only for the purpose of evaluating a business transaction

with Armstrong Recipient agrees that it will not disclose this report or any part thereof to any third

parties and Recipient may only disclose this document to those employees involved in the

evaluation of a business transaction with AIPL, on a need basis. Recipient may make only those

copies needed for such internal review. Upon conclusion of business discussions, this document

and all copies shall be returned to AIPL upon its or their request.

Documents

GSK Sydney rev01 - armstronginternational.com...Qnet = NCV of fuel at constant pressure = 10986.4 kcal/m3 3 Loss due to unburned gases in flue gases (L3) 2 net = 0.06 % where k1 =