EU SUSTAINABLE ENERGY WEEK JUNE Prof. Dr Ozren Ocić. 22 June Energy

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EU SUSTAINABLE ENERGY WEEK 18-22 JUNE 2012 Prof. Dr Ozren Ocić 22 June 2012 Energy

ENERGY EFFICIENCY in OIL PROCESSING INDUSTRY Prof. Dr Ozren Ocić, Chem. Eng. Faculty of Management E-mail: oocic@eunet.rs 2

Importance of Energy for Crude Oil Processing in Oil Refineries Oil processing industry - one of the main energy generators and a significant bearers of energy in final consumption and at the same time a great energy consumer. The importance of oil processing industry is one of the main pillars of national energetic, obligates it to process crude oil in a conscientious, economical way. Oil refineries mostly use their own energy-generating products, but it does not free them from obligation to consume these energy carriers rationally Rational consumption should start at the very source, in the process of oil derivative production and it should be manifested in a reduction of own energy consumption in the oil refineries A refinery, itself, can ensure all the utilities required for its operation by means of more or less complex energy transformation, using a part of the products obtained by crude oil processing Crude oil for a refinery presents, not only a feedstock, but also the main source of energy, required for crude oil processing 3

Importance of Energy for Crude Oil Processing in Oil Refineries Energy utilization efficiency in crude oil processing can be presented by a special indicator, i. e. by the inlet crude oil amount used by a refinery for its own energy requirements in crude oil processing Proportional part of energy equivalent of crude oil in the total quantity of crude oil processed is usually observed as an indicator In oil refineries, the share of energy equivalent of crude oil used for own energy consumption is in the range of 4 to 8%, depending on the refinery complexity level Complexity, i. e. a depth of crude oil processing is increased as the range of products and the number of so-called secondary units is enlarged 4

5 Graph represents the dependence of specific energy consumption on complexity level and oil refinery efficiency, taking 28 US oil refineries as example.

It can be clearly seen that the level of energy requirements is increased by the level of complexity and that the oil refineries with the same level of complexity can have low and high level of energy efficiency The difference between energy efficient oil refineries (line b) and energy inefficient oil refineries (line a), is a real possibility for rationalization of the energy consumption in energy inefficient refineries 6

Inefficient refineries can decrease their own energy consumption by 20-30% by using more efficient technological, energy and organizational solutions These percentages are not small, considering the share of energy costs in total costs of crude oil processing This can be illustrated in the following manner: a refinery whose share of crude oil energy consumption is 5%, must operate 16 days per year to meet its own energy requirements For example: Oil refinery, midle-level complexity, capacity 5 million t/y, has decreased own energy consumption from 10 to 7%. Total many saving (with crude oil price of 700 USD/t) is 105 million USD/y 7

The most important causes of inefficiency that can be eliminated by corresponding technological and organizational solutions are as follows: Inefficient preheating of combustion air by using the heat of flue gases in the process heaters Energy non-integration of the process units Non-economical and non-energy optimal combustion in the process heaters Non-energy optimal cooling system Inefficient feedstock preheating system 8

Many refineries were built in the cheap energy time - investors did not devote much attention to the costs of energy Leading oil companies suggested energy saving programs, in 1970 s These energy saving programs consist of the following actions: 1. Continuous monitoring of energy costs 2. Identifying the places of irrational energy consumption and preparing the energy saving projects 3. Modernization of equipment and introduction of DCS (Distribution Control System) 4. Reconstruction of existing equipment and intensification of the preventive maintenance process 5. Arranging continuous professional training of operators and increasing motivation and responsibilities of employees 6. Improvement of process management and direct engagement in rationalization of energy consumption, etc. 9

First results of these energy saving program were obtained in 1970 s: energy costs were decreased by 7.8% in 1974 and by 8.9% in 1975 as compared to 1972, when the energy saving program was implemented 10

Serbian Oil Processing Industry Current State 20% own crude oil production and about 80% is import Serbia has two oil refineries: 1. Pancevo Oil Refinery (Midle-level conversion refinery), design capacity 4.8 million t/y 2. Novi Sad Oil Refinery (Low-level conversion refinery-hydroskimming refinery), design capacity 2.5 million t/y Oil processing industry actively participates in attaining the objectives of energy and economy policy Oil derivatives participate with more than one third in the final energy consumption, the same as crude oil in available primary energy This proves that crude oil and oil derivatives are still main pillars of Serbian industry and oil processing industry, one of the main branches in energetics 11

DETERMINING THE ENERGY EFFICIENCY FOR ALKYLATION UNIT THE EFFICIENCY AND OPTIMIZATION ANALYZED THROUGH THE COST PRICE OF HIGH PRESSURE STEAM MEDIUM PRESSURE STEAM LOW PRESSURE STEAM POSSIBLE MONEY SAVINGS CAN BE REALIZED BY ELIMINATING DIFFERENCES BETWEEN TARGET STANDARD AND SPECIFIC ENERGY CONSUMPTION. average energy consumption standards of Western European refineries 12

TECHNOLOGICAL CHARACTERISTICS OF THE ALKYLATION UNIT ALKYLATION OF ISO-BUTANE WITH OLEFINS, HYDROCARBON ISOMERS IN THE BOILING RANGE OF GASOLINE ARE OBTAINED SULPHURIC ACID AS A CATALYST LIQUID PHASE REACTION. A HIGH-OCTANE COMPONENT - RAW ALKYLATE - IS PRODUCED, USED IN MOTOR GASOLINE BLENDING, LIGHT ALKYLATE, BASIC AVIATION GASOLINE COMPONENT, obtained by separation. 13

TECHNOLOGICAL CHARACTERISTICS OF THE ALKYLATION UNIT 14

ENERGY CHARACTERISTICS OF THE ALKYLATION UNIT Alkylation - exothermic reaction. High pressure steam - for main pump and compressor drive, through the high-pressure steam condensing turbines. Medium pressure steam - to heat auxiliary column, through heaters, and to drive pumps and compressors, through medium pressure steam turbines. Low pressure steam (LpS) is obtained by reduction of medium pressure steam (MpS) on the medium pressure steam turbines. Total amount of steam is used for heating of tubes, equipment and other requirements. Electric energy is used to drive pumps, fans and other equipment. 15

ENERGY CHARACTERISTICS OF THE ALKYLATION UNIT 16

BLOCK ENERGY FLOW SCHEME OF THE ALKYLATION UNIT 17

Senky's Diagram of Energy Flows of Alkylation Process, in TJ/y. High pressure steam consumption is 80 000 t or 258 TJ. Medium pressure steam consumptionis 140 000 t or 419 TJ. Own generation of low pressure steam, used for own consumption.is 20 000 t or 55 TJ 18

DETERMINING THE STEAM COST PRICE COST PRICES OF HIGH PRESSURE STEAM HpS (CONSUMPTION) High pressure steam generation (HpS) Item Elements for calculation Annual q'ty Cost price no. Total in US$ in t US$/t 1 2 3 4 5 1 HP steam supplied from Refinery Power Plant 80 000 10.83 866 400 Medium pressure steam generation (MpS) Elements for calculation Annual q'ty in t Cost price US$/t Total in US$ 1 2 3 4 5 Item no. 1 COST PRICES OF MEDIUM PRESSURE STEAM MpS (CONSUMPTION) MP steam supplied from Refinery Power Plant 120 000 9.66 1 159 200 19

COST PRICE OF LOW PRESSURE STEAM (PRODUCTION-CONSUMPTION) Item. no. Elements for calculation Annual q ty in t LpS production (US$) Cost price US$/t Total in US$ LpS for own consumption 1 2 3 4 5 6 1 MP steam supplied from Refinery Power Plant 20 000 9.66 193 200 193 200 LP steam by reduction of 193 200 2 MP steam 20 000 9.66 193 200 3 Depreciation 35 453 35 453 4 Current and investment maintenance 4 145 4 145 5 Insurance premium for equipment 2 763 2 763 6 Total (2-5) 20 000 11.78 235 561 235 561 7 Quantity in t 20 000 20 000 8 Cost price in US$/t 11.78 11.78 20

high and medium pressure steam from Refinery Power Plant at 10.83 US$/t, i.e. 9.66 US$/t low pressure steam is generated on the Alkylation Unit, by reduction of medium pressure steam and used for own consumption. 21

ENERGY EFFICIENCY OF THE PROCESS Specific consumption of steam related to the amount of feedstock is: 338 kg steam MJ gross: --------------------------- or 939.6 --------------------------- t of feedstock t of feedstock net: 0 kg/t 0 MJ/t 22

TARGET STANDARD OF NET ENERGY CONSUMPTION AND SPECIFIC ENERGY CONSUMPTION IN A TYPICAL ALKYLATION UNIT (QUANTITY OF ENERGY PER ONE TONNE OF FEEDSTOCK) Specific energy consumption in the plant Target standard of Specific gross energy Specific net energy Energy carriers net energy consumption consumption consumption (kg/t) (MJ/t) (kg/t) (MJ/t) (MJ/t) (kwh/t) 1 (kwh/t) per unit total 1 (kwh/t) per unit total Heat carriers 12 394.8 11 455.2 LP steam * - 338 939.6 0 0 MP steam * - 2 370 7 095.3 2 370 7 095.3 HP steam * - 1 354 4 359.9 1 354 4 359.9 Sources of heat 5866.8 - - - 12 394.8 - - 11 455.2 Electric energy 133.2 37 39.0 1 140.4 140.4 39.0 1 140.4 140.4 Energy carriers 6 000 - - - 12 535.2 - - 11 595.6 23

Specific gross energy consumption Q'ty of feedstock FINANCIAL PRESENTATION OF ENERGY CONSUMPTION AND MONEY SAVINGS IN A TYPICAL ALKYLATION UNIT Energy carriers (light residue) US$ 59 053 t Low pressure steam 59 053 t (939.6 MJ/t x 0.0042374 US$/MJ) = 235 117 Medium pressure steam 59 053 t (7 095.3 MJ/t x 0.0032308 US$/MJ) = 1 353 701 High pressure steam 59 053 t (4 359.9 MJ/t x 0.003363 US$/MJ) = 865 855 Sources of heat 59 053 t (12 394.8 MJ/t x 0.0033536 US$/MJ) = 2 454 673 Electric energy 59 053 t (140.4 MJ/t x 0.0167 US$/MJ) = 138 460 Energy carriers 59 053 t (12 535.2 MJ/t x 0.00350309 US$/MJ) = 2 593 133 Specific net energy consumption US$/t Medium pressure steam (7 095.3 MJ/t x 0.0032388 US$/MJ) = 22.980258 High pressure steam (4 359.9 MJ/t x 0.003363 US$/MJ) = 14.662343 Sources of heat (11 455.2 MJ/t x 0.00328607 US$/MJ) = 37.642601 Electric energy (140.4 MJ/t x 0.0167 US$/MJ) = 2.344680 Energy carriers (11 595.6 MJ/t x 0.00344849 US$/MJ) = 39.987281 Sources of heat: Own net energy consumption (11 455.2 MJ/t x 0.00328607 US$/MJ) = 37.64 Target net energy consumption (5 866.8 MJ/t x 0.00328607 US$/MJ) = 19.29 Difference: 18.36 Energy carriers: Own net energy consumption (11 595.6 MJ/t x 0.00344849 US$/MJ) = 39.99 Target net energy consumption (6 000 MJ/t x 0.00344849 US$/MJ) = 20.69 Difference: 24 19.30

CONCLUSION 1 Specific electric energy consumption is close to the target standard. 2 Specific net consumption of process and thermal energy (steam) amounts to 11455.2 MJ/t thus exceeding the target standard (5866.8 MJ/t) by 95%. 3 Total specific net energy consumption is 11596.6 MJ/t being 93% higher than the target standard (6000 MJ/t). Compared with the net energy target consumption, a typical plant has efficiency/inefficiency index of 193. Increased consumption of process and thermal energy in a typical plant is caused by : non economical utilization of high pressure steam for pump and compressor drive, by means of steam condensing turbines, and non economical utilization of medium pressure steam for pump and compressor drive by means of steam turbines. 25