AUTOMAATIOSEURAN VOIMALAITOSJAOKSEN KEVÄTSEMINAARI, 31.5.2018

Industry demand side energymanagement in Pulp&PaperCase TMP energy optimization

Jukka Kostiainen, Product Manager

How to Get Savings in Energy Costs

Production output

Total Energy ConsumedEnergy ConsumptionMWh / Units

Unit Energy Cost $

Production UnitsEnergy CostEffectiveness (eE)Units / e$

Price you pay$ / MWh

Decrease

Reduce

Increase

Average Unit PriceEnergy consumption

eE is a KPI = Units per energy dollar

Energy Efficiency / Energy Cost

Usage Optimization

Price Optimization

May 28, 2018 Slide 2

High energy intensiveindustries

iDSM: industrial Demand Side ManagementBackground and Motivation

Demand Side Management

Market LiberalizationRenewables Expansion Demand & Supply

Variable electricity prices (2)Smart

grid

windsolar

GRID STABILITY AND RELIABILITY ENVIRONMENTAL IMPACTS AND INVESTMENTCOSTS

Need for peak load (1)

HIGH ENERGY COSTS

Sources: (1)Pina et. Al, 2012;(2) EPEX SPOT ,2012

Energy Efficiency Load Management

May 28, 2018 Slide 3

New opportunities of industrial demand side management (iDSM)Saving cost with intelligent planning

iDSM allows important cost savings

Shifting loads of energy intensive process steps tolow cost times

Using process flexibility for iDSM

0 €10 €

20 €30 €

40 €50 €

60 €

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

EEX Day Ahead Price 17.3.2015

May 28, 2018 Slide 4

Prerequisites for demand side management (DSM) in industryFlexibility in energy intensive production steps enables demand side management

DSM offers saving potential in many industries

Elektrolysis

Cement mills, paper mills, …

Electric Arc Furnaces

Refrigeration (cold storage houses, …)

Heating (heaters, furnaces, steam, …)

Compressors, pumps

…

All energy intensive processes not running 24/7.

Metalls Cement

Pulp and paper Electrolysis

Process flexibility enables DSM

…

May 28, 2018 Slide 5

Industrial demand side management in pulp and paper industry

May 28, 2018 | Slide 6

Storages and tanks offer flexibilities for industrial demand side management

Typical (simplified) pulping process in an integrated pulp and paper mill

Woodchips

Pulp refiner

Pulp refiner Reject pulprefiner

Pulp tank PapermachinePulp tank Bleaching

Big electricity consumer

Storage for intermediateproduct

Co-ordination of production planning and energy management

16. April 2015

Industrial demand side management in pulp and paper industryCoordination of production planning and energy management

Continuous production withintermediate storages

Pulp production is highly integratedwith other parts of paper plant

Paper output of plant is not reduced

Pulp production

0

10

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80

t1 t5 t9 t13

t17

t21

t25

t29

t33

t37

t41

t45

t49

t53

t57

t61

t65

t69

t73

t77

t81

t85

t89

t93

t97

t101

t105

t109

t113

t117

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Elec

tric

ityPr

ice

[€/M

Wh]

Time [hours]

Spot Market Hourly Prices

Reduced pulpproduction

0

1

2

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t1 t5 t9 t13

t17

t21

t25

t29

t33

t37

t41

t45

t49

t53

t57

t61

t65

t69

t73

t77

t81

t85

t89

t93

t97

t101

t105

t109

t113

t117

t121

t125

t129

t133

t137

t141

t145

t149

t153

t157

t161

t165

Running Tasks with iDSM

Slide 7

Production Process:

• Two board machines

• RMP plant (Refined Mechanical Pulp),10 MWe power, feeds board machines

• Reserve pulper for purchased pulp

• Storage tank between RMP plant andboard machines

Objectives:

• Minimize the electricity costs byoptimizing the RMP operation accordingto electricity spot price

• Provide power consumption forecast forelectricity purchase

Case Mill, RMP Optimization

May 28, 2018 Slide 8

Production Process and Objectives

Processarea

Site

Enterprise

Cloud Cloud based applications

Plant or corporate process data lakeLocal applications

Site level datacollectors

Ability hybridcloud solution

General architecture

Increase data symmetry byconsolidating process datato one place

Applications increasing awarenessIntelligent applications optimizingperformance

ABB Ability, cpmPlus Energy Manager

May 28, 2018 Slide 8

• RMP stock level 0 … 100 %

• RMP to BM1

• RMP to BM2

• RMP power

• Electricity spot price(-20 … +100 EUR/MWh)

• RMP plant must run with fullspeed when pulp need is high. Thetime when the process can beoptimized is shown with greenarrows.

Industrial Demand Side Management (iDSM) in Mechanical Pulping Process

May 28, 2018 Slide 10

Results – Weeks 37 Before and Week 49 After Start-up

Before (wk 37/2017)

• Spot price is not followed

• Stock level is constantlyhigh

After (wk 49/2017)

• Spot price is followedquite well

• Stock is utilized and levelgoes up/down withindefined limits

• RMP stock level 0 … 100 %

• RMP to BM1

• RMP to BM2

• RMP power

• Electricity spot price(-20 … +100 EUR/MWh)

• Time when optimization ispossible (OP)

• Time when optimization ispossible and followed (OPF)

Industrial Demand Side Management (iDSM) in Mechanical Pulping Process

May 28, 2018 Slide 11

Results – Weeks 49 and 51 After Start-up

Week 49/2017:

• OPF period:6.12. 07:00 – 7.12. 7:00

• Savings during this period= 7.3 % (*

Week 51/2017

• OPF period:19.12. 04:00 – 21.12. 12:00

• Savings during this period= 16.0 % (*

Total savings of the twoOPF periods = 14.5 % (**

(***

*) Savings calculated comparing the actual cost vs. the cost with average spot price during the OPF period

**) Weighed balance

***) 24.12.2017 00:00 – 07:00 Electricity spot price was -55.47 … -85.73 EUR/MWh