This document summarizes efficiency improvements and cost optimizations made at Shriram Fertilisers & Chemicals in Kota, India. The plant adopted several approaches to increase capacity utilization and reduce costs as the plant aged, including identifying and addressing bottlenecks, equipment replacements, feedstock substitutions and conservation efforts. Specific modifications included replacing reformer catalyst tubes, installing additional heat recovery equipment, and converting the plant's fuel source from naphtha to natural gas between 2006-2009. These changes helped improve the plant's competitiveness and reduce production costs as energy costs constitute the majority of urea production costs.
This document summarizes efficiency improvements and cost optimizations made at Shriram Fertilisers & Chemicals in Kota, India. The plant adopted several approaches to increase capacity utilization and reduce costs as the plant aged, including identifying and addressing bottlenecks, equipment replacements, feedstock substitutions and conservation efforts. Specific modifications included replacing reformer catalyst tubes, installing additional heat recovery equipment, and converting the plant's fuel source from naphtha to natural gas between 2006-2009. These changes helped improve the plant's competitiveness and reduce production costs as energy costs constitute the majority of urea production costs.
This document summarizes efficiency improvements and cost optimizations made at Shriram Fertilisers & Chemicals in Kota, India. The plant adopted several approaches to increase capacity utilization and reduce costs as the plant aged, including identifying and addressing bottlenecks, equipment replacements, feedstock substitutions and conservation efforts. Specific modifications included replacing reformer catalyst tubes, installing additional heat recovery equipment, and converting the plant's fuel source from naphtha to natural gas between 2006-2009. These changes helped improve the plant's competitiveness and reduce production costs as energy costs constitute the majority of urea production costs.
This document summarizes efficiency improvements and cost optimizations made at Shriram Fertilisers & Chemicals in Kota, India. The plant adopted several approaches to increase capacity utilization and reduce costs as the plant aged, including identifying and addressing bottlenecks, equipment replacements, feedstock substitutions and conservation efforts. Specific modifications included replacing reformer catalyst tubes, installing additional heat recovery equipment, and converting the plant's fuel source from naphtha to natural gas between 2006-2009. These changes helped improve the plant's competitiveness and reduce production costs as energy costs constitute the majority of urea production costs.
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Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Efficiency Improvement and Cost Optimization in Fertiliser Plant- A Case Study
Shriram Fertilisers & Chemicals : Kota
( A Unit of DCM Shriram Consolidated Ltd.) FAI Programme: 28th Feb, 2012
Contents Introduction Need for efficiency improvement and cost optimization Approach adopted at SFC Kota Modifications / up-gradations implemented Feedstock changeover to Natural Gas Conclusion 2
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Introduction
Kota Complex Shriram Fertilisers & Chemicals Shriram Vinyl Chemicals Shriram Cement Works Fenesta Building Systems Shriram Polytech
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Location 475 km from Delhi on the main western broad gauge line line from Delhi to Mumbai
235 km from Jaipur on the NH 12 From Jaipur to Jabalpur
Ammonia Plant based on Haldor Topsoes steam reforming process Urea plant based on Stamicarbons total recycle process with crystallization route for urea finishing Ammonia plant modified to use Natural gas in 2006 Plant running fully on NG since May,2009
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Need for Efficiency Improvement and Cost Optimization
Need Bath - tub curve approach to plant lifecycle
No. of Breakdowns
Wear & tear
Initial Defects 5 10 15 20 No. of Years in operation
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Need Challenge is to negate the impact of efficiency loss and equipment wear due to aging
No. of Breakdowns
10
15
20
25
30
35 11
No. of Years in operation
Approach adopted at SFC Kota
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FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Approach adopted at SFC Kota Approach adopted at SFC Kota
Increasing capacity utilization Re-look into original design of equipment Feedstock conservation and substitution Steam conservation Water conservation Benfield system chemicals
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Approach adopted at SFC Kota
Increasing capacity utilization Identification of process bottlenecks
Incorporation of available retrofits Systematic equipment replacement plan Reduction in shutdown frequency and duration
Re-looking into original design of equipment
Modifications in equipment Redesign of boilers and exchangers Simplification of piping and replacement to decrease P Change of packings 14
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Approach adopted at SFC Kota
Feedstock conservation and substitution Heat recovery from flue gases from furnaces Packing gas recovery Better leakage class of vent valves Use of steam for heating instead of Naphtha / Natural Gas
Steam conservation Use of steam at right temperature Steam Trap management Online leak sealing 15
Approach adopted at SFC Kota
Water conservation Reuse and recycle of water Cooling water treatment
Benfield system chemicals
Re-oxidation cooler for V2O5 Better house keeping and maintenance practices.
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Approach adopted at SFC Kota
Cost optimization Import substitution Local vendor development In house NDT Vibration monitoring Reclamation and reuse of old parts Replacements on condition monitoring results
Reclamation of Lubricating Oil Use of Aspen for process analysis and design
Modifications / upgradations Reforming Section Reformer catalyst tubes MOC changed from original HK 40 to Manuarite in 2000. With this ID of tubes increased from 115 mm to 131.6 mm A water spray tower was installed in 1980 at the downstream of the waste heat boilers to maintain HTS inlet temperature by adding BFW The primary reformer induced draft fan was also replaced with a higher capacity one so that proper excess air of 2.5% O2 could be maintained In order to reduce the heat duty of fired preheater upstream of primary reformer, a steam fired heater was installed A convection section was added in direct fired preheaters to utilise waste heat from flue gases Additional heat recovery from the Reformer convection zone by addition of extra rows of tubes in air and steam coils
18
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Modifications / upgradations Carbon dioxide removal and beyond 25 mm Metallic (SS) Pall rings were installed in the top two beds and 38 mm rings were installed in the bottom two beds in place of ceramic rings In order to reduce gas velocities at the CO2 Absorber outlet an additional Separator was installed in 1979 itself . This helped in avoiding liquid carryover to the Methanator To reduce the temperature of the bottom to top potassium carbonate solution a larger size HPC cooler had to be installed in 1983 The synthesis gas compressors which are motor driven reciprocating machines posed a bottleneck in achieving full plant loads. The cylinder bores of 1st stage were increased from 289 to 305 mm as there was some margin in the motor. This enabled a capacity increase of 9 % 19
Modifications / upgradations Installation of a radial Ammonia Converter basket The original TVA Type Axial Flow Ammonia Converter Basket was due for replacement in 1992 A radial flow converter was installed as replacement of old axial flow basket This has made the running of smaller 120 TPD Ammonia Synthesis loop unnecessary Since the loop did not have any waste heat boiler, the energy was being wasted to the cooling tower. This could be avoided with the installation of the radial converter
20
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
10
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Modifications / upgradations Period between turnarounds Earlier the plant turnarounds were taken on annual basis. However, the IBR later allowed operation of waste heat boilers upto two years. With judicious planning of the overhauling of the reciprocating compressors the turnaround are now taken up once in two years. This has improved availability of plant
21
Feed stock conversion from Naphtha to Natural Gas
22
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
11
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Conversion to Natural Gas
Why change to Natural gas Energy cost constitutes about 80% of total cost of production of urea After removal of APM from naphtha, its prices touched a very high value of Rs. 55,000/MT Gas is a clean fuel as compared to naphtha Gas is cheaper as compared to naphtha Reduced cost of production leads to improved competitiveness Favourable government policy for feedstock changeover Reduced subsidy outgo
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Conversion to Natural Gas
Modifications done Replacement of all 252 burners from self aspirating naphtha fired burners to forced draft Natural gas / Naphtha fired burners Installation of a Combustion Air preheater Installation of a new feed Natural Gas preheater Installation of new FD Fan and ID Fan at ground floor Installation of fuel NG preheaters Replacement of Steam Naphtha Coil and inlet distribution headers for steam naphtha mixture going to the catalyst tubes Removal of BFW Coil from convections section of primary reformer furtnace 24
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
12
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Conversion to Natural Gas
Control system upgradation 35 year old pneumatic controls required frequent maintenance and were facing obsolescence More accurate control helps in better optimization of plant parameters Temperature scanner was also error prone and inaccurate Plant interlocks were relay based Pneumatic controls replaced by latest Digital Control System This has enabled Centralised Operation Monitoring Process behaviour analysis Monitoring of Alarm management Process history storage 25
Conversion to Natural Gas
DCS Chosen is Emersons Delta V system Plant safety interlocks have been implemented in integrated Delta - V SIS which is TUV approved system for SIL3 applications. Salient features are 1100 Nos I/Os Ease of operation Trends , process history, alarms available. Built on commercially available personal computers as work station and engineering stations. Windows platform Proven ethernet communication technology Scalable to add more controllers and operating stations as required 26
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
13
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
Conversion to Natural Gas
SIL 3 safety system Latest Foundation field bus technology foundation field bus has been used for temperature signals and few pressure and flow monitoring requirements. Asset management system Delta V AMS suite has been installed for centralised configuration , diagnostics, maintenance and history record for HART and FF field devices. Operator interface 5 Operating stations with 19 LCD monitors in a control room Screens interchangeable in all respects Operator can scroll through the entire plant seamlessly.
27
Conclusion
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FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
14
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
Old pneumatic controls 3replaced by state of the art Digital control System in 2006 8 .4 8 .3 8 8 .3 5 8 .2 5 8 .19 8 .15 8 .2 8 .0 9 7.9 7 7.8 5 7.8 8 7.8 5 7.779 7.714 7.4 4 7 7.3 2 5
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Focus on reducing R & M Cost
20 18 16 14 12 10.7
R & M Cost contained to below inflation rate Reduction in real terms
Avg. inflation rate during last 7 years Growth rate R & M Cost during last 7 years 5.18% per year 0.5% per year 12.9 11.5 12.9 13.1 14.84 13.85
Rs.Crs/Yr.
10 8 6 5.2 4 2 0
Old pneumatic controls replaced by state of the art Digital control System in 2006 7.5 5.8 5.7 4.7 7.5
10-11 10 -11 (P )
8 8 -8 9
8 9 -9 0
9 0 -9 1
9 1 -9 2
9 2 -9 3
9 3 -9 4
9 4 -9 5
9 5 -9 6
9 6 -9 7
9 7 -9 8
9 8 -9 9
9 9 -0 0
0 0 -0 1
0 1 -0 2
0 2 -0 3
0 3 -0 4
0 4 -0 5
0 5 -0 6
0 6 -0 7
FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
0 7 -0 8
15
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
First Prize in Technical Article for FAI Newsletter in 2008
First Prize in Safety Performance FAI Annual Seminar for Safety in 2009
British Safety Councils Sword of Honor for Safety Performance at International level for four consecutive years ( 2007 2011)
2nd Prize in Energy Conservation in Fertilizer Sector by Bureau of Energy Efficiency ( BEE ) in 2011
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FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
1 0 - 1 1 (P )
0 8 -0 9
0 9 -1 0
16
Efficiency improvement and cost optimization in Fertiliser Plant- Case Study
K M Tandon and Ashwani Kaul
The way forward - Energy savings schemes
S. No. Scheme Expected energy savings MKCal/MT Urea A. 1 2 3 B 1 AMMONIA PLANT Heat Exchange Reformer (KRES) Additional cell in cooling tower Chiller at synthesis gas compressor suction UREA : High Efficiency Combined (HEC) process for Urea or 1st stage heat recovery Evaporation route for Urea Plant Additional cell in cooling tower Natural Draft prilling tower DCS and N/C Metering for urea plant Total (A+B) 0.16 0.32 0.04 0.02
2 3 4 5
0.073 0.04 0.02 0.01 0.683
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Thank you
ashwanikaul@dscl.com
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FAI Programme on Business Intelligence, Forecasts and Planning for the Fertiliser Sector 27th Feb. 1st March, 2012
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