ArcelorMittal’s steel plant in Saldanha, the single largest electricity consumer in the Western Cape, recently participated in an Industrial Energy Efficiency Improvement Project that has resulted in a R90-million energy bill savings in one year.
The upcoming African Utility Week, to be hosted in Cape Town from 14 to 16 May, will give a unique insight into the challenges of large power users, including an exclusive site visit to ArcelorMittal’s Saldanha Works.
The Saldanha Works is a flat rolling integrated steel facility that produces 1,2-million hot rolled coils (HRC) per annum. HRC from Saldanha is mainly exported, with approximately 20% sold on the local market.
There are three main areas within the plant – iron making (producing liquid iron and direct reduced iron); steel making that has two converter arc furnaces (CONARC); and rolling with a hot strip mill and a temper mill.
To save energy, water and waste at the plant, Saldanha launched a focussed energy management strategy in 2010, says Dhesan Moodley – GM of ArcelorMittal’s Saldanha Works.
“Resources were allocated both in terms of people and capital expenditure. Initially the potential was determined through an existing project list and doing an energy audit on the plant to determine further possible savings.
“ISO 50001 was implemented and energy management is now part of our daily routines. The energy saved in terms of baseline value of 160MW was 10,6MW or 6,6% and the equivalent of R90-million in 2012.”
Moodley says they also implemented various VSD (variable speed drive) projects that delivered greater savings than expected.
“This has proved to be sound technology given the correct application. We are also very proud of our waste heat project at the Roller Hearth Furnace where waste heat was used to replace a diesel heater at the Air Separation plant. We have also done some optimisation projects at the water plant on pump systems that required no capital expenditure.”
According to Moodley, introducing energy savings is relatively easy. He explains the main lessons the steel plant learnt.
“You need to assign resources if you are really serious about energy savings. You need to train people – a good technical person still needs to be trained in energy savings and the NCPC/UNIDO program (supported by the DTI and DOE) is really an affordable way to train your staff to think and implement energy savings initiatives.  Introducing savings is relatively easy.
“Sustaining these savings can be quite difficult especially if it is achieved by changing human behaviour. You need to incorporate it in your management infrastructure and implement a system such as ISO 50001 to entrench and sustain such savings.”
Large power users are under increasing pressure with rising energy tariffs and the impending implementation of a carbon tax.
Moodley says the increased energy tariff and carbon tax is a significant risk for the plant.
“We are focussed on the export market, specifically in Africa and we are competing against China and India. These countries do not experience any of the cost increases mentioned. The viability of export facilities is at risk with these increases. This obviously has significant potential impact on the economy, not just local, but also on the fiscal balance.”