Benchmarking  
  Audit  
  Energy Rating  
  Promotion  
  ESCO Support  
  Demonstration
Projects
 
  Local Equipment Manufacturers  
  EE Financing  
 
 

 
 
Malayawata Steel Berhad saves RM 322,000 per annum in energy costs

 

Measure Implemented

bullet Repair of compressed air leakages
bullet Rolling Mill 2 Reheating Furnace (RF)-furnace door a d j u s t m e n t
bullet Replacement of old piston type air compressors with new screw type air compressors
bullet Installation of Variable Speed Drives (VSD)
bullet Power factor improvement
bullet Timer Control for Air conditioning and lighting – Production and Main offices

Benefit

bullet Total annual energy savings of 6581 GJ/yr .
bullet Total annual cost savings of RM 322,000 /an., and
bullet Annual CO2 reduction – approximately 1256 tonnes/an.
bullet Simple payback period of 1.5 years

Summary

In November, 2001 the MIEEIP team carried out an energy audit exercise at Malayawata Steel Berhad . The objective of the audit was to identify energy savings, energy cost savings and reduction of C02 emission opportunities. During the audit the MIEEIP team together with factory personnel identified several no-cost, low-cost and high-cost energy saving measures.

Recognising the cost-effectiveness of the audit recommendations, the company has invested more than RM 400,000 for the implementation of some of the measures, and has recorded:

bullet Energy savings of 6581 GJ/yr,
bullet Energy cost savings of RM 322,000 /yr., and
bullet C02 reduction of 1256 tonnes/yr.

In addition to the measures proposed by the MIEEIP team the Company has identified other measures on its own, and successfully implemented them.


Company and Plant Overview

Malayawata Steel Berhad was incorporated in June 1961. It has been listed on the Main Board of the Bursa Saham Kual a Lumpur since 1967. Malayawata is a pioneer in the Malaysian steel industry and was the first integrated steel mill in South East Asia .

The factory’s core output is the production of steel bars and wire rods, where close to a million tonnes of steel bars and wire rods were produced for the year 2004. In its early days, Malayawata an integrated steel producer, started with one ch a rcoal based Blast Furnace, one 15 tonnes Basic Oxygen Furnace and one Rolling Mill producing some 40,000 to 50,000 tonnes of steel bars for reinforced concrete. The company has expanded over the years, taking advantage of new and more efficient developments in steel making technology.

Presently, Malayawata has a new electric arc furnace replacing the old blast furnace. They also have expanded their production with a second rolling mill plant. At Malayawata, the iron and steel making processes are d ivided into two distinct parts namely Steel making and Rolling mill. The Steel making plant (SM2) converts steel scrap into billets. The steel making process starts with the transport of scrap using cranes and buckets from a huge scr p yard to the plant, where it is discharged into the DC Electric Arc Furnace (EAF).

The EAF operates in a batch melting mode producing batches of molten steel of approximately 80 tonnes of molten steel e a ch. Upon achieving the desired steel composition and temperature (approximately 1600°C) in the EAF, a tap-hole is opened and the steel is poured into a pre-heated ladle, which will then be transported using a ladle car to the AC ladle furnace (LF) station. At the LF heat energy is supplied via three AC electrodes to control steel temperature. During the process, alloys such as SiMn, Lime, Coke, FeSi, FeMn etc. are added into the LF in order to control the steel chemical composition based on analysis and the steel grade to be produced (customer specification).The ladle containing refined molten steel is then transported by over-head cranes to the casting plant.


The casting plant operates as a continuous casting process, converting molten steel to billets. Here, the billets are cooled in the storage area before being transported to the rolling mills. Billets need to be heated from atmospheric temperature to about 1300°C before being rolled in the mill. The reheating process is divided into two or three zones namely the heating zones and soaking zone. Heat is provided for each zone by a series of fuel oil burners (diesel oil, supported by atomizing medium) located across the furnace. The flue gas produced from the combustion exits the furnace at about 600°C. At the Rolling mill the billets are converted into finished products such as deformed bars and wire rods.



Simplified Process Flow Diagram of the steel making and Rolling Mill process


malayawata

Project Overview

During the energy audit exercise numerous potential no-cost, low-cost and high-cost measures were identified. In addition to these measures the company has also identified and implemented other energy saving measures. The following measures have been implemented during the years 2003- 2004 .

1. Rolling Mill 1 (RM1) -Repair of compressed air leakages

The audit team carried out an air leakage test at RM1 compressed air system using the opportunity of RM1 roller size change, and found that substantial leaks exist in the compressed air system. The team recommended that the air leakages are identified and repaired.

Measures Implemented
Investment
(RM)
Total Annual
(RM) Cost Saving
Rolling Mill 1 - Repair of compress air leakeges NIL 322,000
Rolling Mill 1 - Replacement of old piston type air compressors RM 80,000
Rolling Mill 2 - Replacement of old piston type air compressors RM 300,000
Rolling Mill 2RF - Furnace door adjustment RM 8,000
Rolling Mill 2 Steel quenching pumps, installation of VSD RM 54,000
Rolling Mill 2 colling blower fan for mill drive installation of VSD RM 54,000
Power factor improvement NIL
Timer control for air conditioner and lighting (load management) 100


Measure Implemented

Malayawata undertook an exercise to identify and reduce leakages in the compressed air system of RM1, this measure is a no-cost measure (needing no capital investment from the company).

It is not possible to eliminate all leakages in a compressed air system. For a medium size network a 5-7% leakage is acceptable. Common locations of compressed air leakage are :

bullet Air using equipment left connected when not required,
bullet Leaking pipes and joints,
bullet Leaking hoses and couplings,
bullet Leaking pressure regulators,
bullet Shut off va l ves left open, and
bullet Mistreatment of air guns.

It is important to note that compressed air is an expensive s o u rce of energy and leakages in a compressed air system can lead to significant energy losses and energy cost escalation .

2. Rolling Mill 1- replacement of 2 old piston type air compressors with 1 new screw type air compressor

During the MIEEIP energy audit the team noted that the compressor station supplying the rolling mill with compressed air consists of 3 compressors. Demand for compressed air in the rolling mill line is met by running only one compressor. The main consumer of this station is the rolling mill line especially the hydraulic actuators at the packing area. As, the operating pressure of this air system is similar to RM1 Reheating Furnace (RF) compressed air system, the possibility of integrating these two systems together was investigated. Leakage test and load test was conducted at this site.

Malayawata conducted a study on the workings of the compressors and found that maintaining three air compressor units was energy inefficient and also costly.

Measure Implemented

The company replaced the old piston type air compressors with one new screw type compressor; and this enabled the company to run plant operations with just one 75kW compressor instead of two 75kW compressors as previously done.

3. Rolling Mill 2RF furnace door adjustment

During the audit it was noted that under-pressure is maintained in the RF, while the front part of the furnace is slightly over pressurized to ensure that the temperature of billets is maintained when they are discharged onto the rolling mill train. The audit team found that both the discharging door and the manipulation door of the RF showed signs of leakage.

The team proposed that the following changes are made:

bullet Setting the overpressure to a minimum
bullet Adjusting the outlet door downer position 200 mm lower
bullet Repairing the support of the manipulation door so that the inclination of the door is avoided

Due to the high temperature of the leaking flue gases and relat ively high speed of the leak caused by low flue gas density at that temperature, the savings from this measure are expected to be high.

Measure Implemented


The energy management team at Malayawata implemented two out of the three above mentioned recommended measures. As per the MIEEIP audit recommendations the team adjusted the outlet door downer position to 200 mm lower and they also repaired the support of the manipulation door so that the inclination of the door was rectified.

4. Rolling Mill 2 (RM2) replacement of 3 old piston type air compressors with 1 new screw type air compressor

RM2 consisted of three piston type air compressor units; however, compressed air was supplied by only one out of the 3 compressors. The working compressor was operating at its full capacity, while the second compressor was idling continuously and was kept in operation for safety reasons. The third compressor was kept in stand-by mode. Malayawata conducted a study on the workings of the compressors and found that maintaining three air compressor units was energy inefficient and also costly

Measure Implemented

In June 2004, the company replaced all 3 old piston type air compressors with one new screw type compressor at a cost of RM 300,000/- ; this exercise enabled the company to run plant operations with just one compressor instead of two previously. The change resulted in a 28% reduction in p ower consumption from 380 kW to 275 kW.

5. Rolling Mill 2 steel quenching pumps Variable Speed Drive (VSD)

The system is designed to use throttle valves to reduce the high pressure of quenching water to the required pressure. The actual efficiency of the quenching pumps is low due to wear and tear from the high number of operating hours and
infrequent overhauling. As VSDs can give considerable savings, the audit team recommended for the company to conduct a more detailed energy audit in which the
characteristics of the quenching pumps and the piping are measured so that exact figures may be used in the calculation to evaluate the cost-effectiveness of installing VSDs. The team proposed to equip one 200 t/hr and another 400 t/hr quenching pump with frequency inverters.

Measure Implemented
For the period between November, 2003 and January, 2004, the energy management team at Malayawata installed three variable speed drives at the water plant pumps. Two units of 160 kW VSDs and one unit of 225 kW VSD were installed.
The team found that the ave rage power consumed by each unit was 120 kW as against 160 kW previously consumed, thus giving a saving of 25%.

6. Rolling Mill 2 cooling blower fan for mill drive motor

The cooling process takes place after the rolling process. The finished sections are sheared and delivered onto the cooling bed. Here the bars/rods are cooled through a bed by blower fans that blows air from the bottom. RM2 is equipped with 3 units of cooling blower fans in order to control the cooling temperature profile of the bars/rods. All
these fans were driven by a motor at a constant speed.

Measure Implemented

After looking at the advantage of variable speed drives at the quenching system, the energy management team decided to install variable speed drives at each unit of the cooling blower fans so that the speed of the motors can be controlled at an optimum setting without any interruption to the production. The motor speed for 2 units of 37 kW motor is reduced from 975 rpm to 800 rpm resulting in a reduction
of power consumption from 30 kW to 24 kW and for motor speed of 75 kW motor is reduced from 785 rpm to 700 rpm resulting in a reduction of power consumption from 45 kW to 39 kW.

7. Power Factor Improvement

Industrial power users have to pay a low power factor (pf) penalty if the pf of their installation is lower than 0.85. Rectifying the pf to a value higher than 0.85 eliminates the pf penalty. Such initiatives are cost-effective and have a very short pay back period

Measure Implemented

Between December, 2003 and May, 2004 the company improved its power factor from 0.7 to 0.9. This was a chieved by adding 1 MVAR capacitor bank at the Steel
Making Plant (SMP) 11kV and SMP Water Plant. This resulted in a 22% reduction of the apparent power drawn from the power system.

8. Timer Control for Air conditioner and lighting

In early 2003 the company carried out renovation works to the main office and production office. To maintain good house-keeping the company decided to include the installation of a timer control for the air conditioning and lighting system for both the main office and production office areas. The energy management team found that with the installation of the timer control system human errors can be prevented, as the air conditioner and lights will automatically shut off at the programmed time. Conversion from the use of diesel to natural gas The company is currently making final arrangements to sw i t ch from the use of diesel and light fuel oil to natural gas due to the competitive gas price. Another motivating factor
for the sw i t ch is the fact that natural gas is the cleanest of all the fossil fuels. The combustion of natural gas releases very small amounts of sulphur dioxide and nitrogen oxides, virtually no ash or particulate matter, and lower levels of carbon dioxide, carbon monoxide, and other reactive hydrocarbon s .

Management - driven commitment towards EE

The success of EE activities in any factory relies heavily on the attitude and far sightedness of the top management in realizing the benefits of EE. At a recent interview, Malayawata Division Head Mr Ye ow Kheng Kooi and Section Manager En Wan Ali Wan Ismail explained that the company is now able to implement EE measures in the factory due to the setting up of an energy management team, this team was instrumental in analyzing and implementing the measures proposed by the MIEEIP audit team. The energy management team is also actively seeking
for ways to further improve the ove rall energy performance of the factory

They also explained that though the company realised the potential benefits of EE , aspects such as availability of budget , the efficiency of old machines, interruption to
op e rating processes and factory personnel getting used to new machines and systems will need to be looked into. Malayawata understands that by implementing EE measures a company can increase its competitiveness through operating cost reduction and improvement in machine performance. Demonstrating the qualities of a good corporate citizen the company also considers the social and environmental benefits when implementing EE measures.