With Iron and Steel industry being the 2nd largest energy consuming industrial sector, it is important to analyze and take measures for reducing energy consumption in steel plants as well as increasing productivity and improve bottom line. This presentation describes what Energy Management process is and provides tips for execution.

1. Optimized energy management and
planning tools for the iron and steel
industries
Klaus Lachmann
Steel Solutions Director
Schneider Electric

2. 2
Index
●The energy dilemma
●Energy Management Information System
●Reference Case
●Conclusion
●Q & A

3. 3
The energy dilemma
vs
Energy demand
By 2050
Electricity by 2030
CO2 emissions to
avoid dramatic climate
changes by 2050
The facts The need
Source: IEA 2007
Source: IPCC 2007, figure (vs. 1990 level)
Power outages
Rising
energy prices
Climate change
Conflicts for
resource access
& control

4. 4
New regulations and standards
everywhere

5. 5
Energy
Management
Program
Iron & Steel industry under pressure
●2nd largest energy consuming industrial sector
● Cost of Energy versus production costs
●Serious GHG footprint
●Business and operational challenges
●Increasing production
●Increasing plant availability and flexibility
●Reducing energy consumption per ton
●Reducing the cost of energy per ton
●Taking control of emissions

6. 6
Energy
Management
Information
System
A comprehensive energy
management program
●Strategy: Holistic strategy and action plans covering
complete industrial operation
●People: Energy efficiency and energy management as
company culture, empowerment
●Processes: Plan-Do-Check-Act Cycle, continuous
improvement initiatives, accountability
●Information technology: visibility of energy,
ability to compare, analyze and benchmark

7. 7
Energy Management Information
System (EMIS)
●Goals
●Relevant information to key individuals and departments
●Enables energy performance and operation
improvement
●Detection of energy related opportunities and anomalies
●Main characteristics
●Sensors, energy meters, other related hardware
●Software support for performance monitoring, data
analytics and decision making
●Energy and sustainability reporting capabilities
●Data verification and long term data storage

8. 8
Often heard issues
● Insufficient contextual data on individual assets
● Spreadsheet culture with disparate data
● Manual data collection into a number of systems
● Lack of detailed KPIs relating to Sustainability
● Disconnect between people and asset information
● Legal liability, compliance and environmental
standards
● Misconception that reducing energy consumption
means reduced production
● Solutions to address WAGES

9. 9
EMIS functional requirements
A closer look (1/2)
●Near Real Time Operation
●Monitor energy consumption and any other factors that affect energy
use, such as type of finished product, shift and operator changes
●Data aggregation from disparate data sources by work centre, site, etc
for online energy balance
●Calculation of sustainability KPI’s, kWh/t, GJ/t or m3 water/t
●Alert sudden changes in energy use patterns in specific process
configuration, such as over consumption,
●Analyze
●Energy usage and cost analysis by product, media and process
●Benchmark the energy use to previous periods and target performances
and industry best-practices
●Establish of optimal energy consumption target for each section of the
process

10. 10
EMIS functional requirements
A closer look (2/2)
●Enable
●Forecasting and planning of energy consumption based on certain
parameters such as type of production
●Cost allocation to the relevant cost center’s, processes and products
●Energy procurement support and utility bill verification
●Report
●Near real time energy consumption reporting by media and process
through web portals and customizable dashboards
●Periodic or triggered reports: energy, consumption, emission data and
sustainability KPI’s (shift, daily, monthly, media, process, area, …)
●Environmental and regulatory
compliance reporting One version of truth
• Same information for everyone
• Centralized energy information storage
• Data integrity, data verification and audit
mechanisms

11. 11
EMIS architecture
Simplified
Enterprise HMI:
Data display,
analysis,
reports
Enterprise data management:
Enterprise data aggregation and
KPI calculation
ERP
WAGES
Process automation
Plant data management:
Data aggregation and
KPI calculation
Process data
acquisition
Metering architecture
Rolling Mill
Plant HMI:
Data display,
analysis,
reports
MeltshopCoke plant
Sinter plant
Power Plant
…
Site B
Aggregation of information
from different plants at company
level for an enterprise-wide
picture of total energy usage,
costs, and performance.
Energy &
Sustainability
KPIs

12. 12
The need for analytical tools

13. 13
Sustainability KPIs
Tailored for User Groups
●Scalable real time or near real time information
●Plant operators and Plant supervisors
●Energy And Energy Efficiency manager
●Top Management
●Key Performance Indicator
●kWh/t, GJ/t, m3 water/t
●Emission / t
●Energy costs / t
●...

14. 14
EMIS architecture
Software and modules
Real time monitoring
Modeling Workflows
Performance
Management
Reports &
Dashboard
Knowlegde
Man.
Applications (Balance, Prediction, Alarming,
Optimization, …)
Information

15. 15
Information tools
Visualisation and Reporting
Dashboards (samples) Reports
(samples)
Role based capability to monitor and improve daily operations, to analyze and drill to detail according to individual needs. Triggered or
automatic reports in standardized or customized format.

16. 16
Efficiency improvements
Energy and Cost
●Major cost impact
●Intra-site benchmarking of KPIs, comparing similiar assets
like blast furnaces, sinter plants or crews
●Enhanced capabilities to manage and utilize blast furnaces
and coke ovens gas
●Identification of process irregularities and equipment
performance issues
●Additional cost impact
●automated metering processes
●simpler internal energy cost administration
●easier sustainability reporting

17. 17
Results
Worldsteel presentation,
published November 2012

18. 18
Reference case
China
●Large scale vertically integrated mill
●13+ mtpa
●numerous high quality long and flat products
●Major production equipment
●8 Coke Batteries
●7 Sinter Machines
●6 Rotary Kilns, Shaft & Rotary Hearth Furnaces
●9 Blast Furnaces
●9 Basic Oxygen Converters
●16 Casters, Rolling and Processing lines

19. 19
Why the investment in an EMIS?
Areas of Improvement
●Competitive cost pressure
●Visibility and decision making capability
●Energy and carbon data, energy costs
●Disparate sets of data
●Energy operation
● Planning of energy consumption and generation
●Optimize energy use, procurement and sale
●Benchmarks, continuous improvement strategy
●Environmental compliance, reporting mandate

20. 20
EMIS Scope
Equipment
●Metallurgical and processing equipment, mill power
plant
●25 different energy media
●100+ major energy equipments
●Top gas Recovery Turbines (TRT),
●Cogeneration
●Gas distribution systems
●water booster stations, water wells
●steam and gas boilers

21. 21
EMIS Scope
Main features
●Online and near real time functions
●Energy consumption by media,
●Online Energy Balance
●Sustainability KPIs,
●Alarming system
●Analytical functions
●Energy usage and cost analysis by product, media and
process, based on equipment and operator performance
●Trending analysis (actual, historical)

22. 22
EMIS scope
Main features
●Forecasting and planning functions
●Energy Forecast and Load
Balance for Gas, Oxygen,
Nitrogen and Argon
●Multi-energy balance
●Short and long term forecast
●Reporting functions
●Online (intranet), customizable dashboards, periodic and
triggered reports
●Centralized and redundant data storage

23. 23
Conclusion
●The industry is challenged by energy, emissions and the
increasing need for sustainable manufacturing
●To manage and optimize energy, emissions and production
effectively, manufacturers must establish an energy
management strategy
●Energy Management Information Systems (EMIS) have a
key role in the continuous improvement process
●Modern EMIS solutions provide
●Real-time visibility of energy and cost
●Planning and purchasing support
●KPIs to facilitate decision making

24. 24
Klaus LACHMANN
Steel Solutions Director
Schneider Electric
Thank You
Phone: +49 (0) 2102 / 404 ext. 9368
Mobile: +49 (0) 172 / 211 94 87
Email: klaus.lachmann@schneider-electric.com

25. 25
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