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Energy Efficiency Program

Energy Efficiency Program. July 2013. By Greg Chaplin. Bradken Overview. Bradken ® is a leading global manufacturer and supplier of differentiated consumable and capital products to the mining and construction, rail and transit, energy and general industrial markets

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Energy Efficiency Program

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  1. Energy Efficiency Program July 2013 By Greg Chaplin

  2. Bradken Overview • Bradken®is a leading global manufacturer and supplier of differentiated consumable and capital products to the mining and construction, rail and transit, energy and general industrial markets • As a leading heavy engineering company, Bradken can manufacture fully machined cast iron and steel products from a mass of 0.5kg to over 25 tonnes • Bradken is a publicly listed Company on the Australian Stock Exchange (BKN) • Founded in 1922 in Alexandria, Sydney (AUS) – Leslie Bradford & Jim Kendall won money on a horse “Jack Findlay” and used the winnings to establish Alloy Steel Syndicate to build the foundry. • Global Corporate Centre located in Newcastle, NSW (AUS)

  3. Bradken – Environmental Basics • All Bradken’s major facilities in Australia & UK are independently certified to ISO14001, other sites at implementation stage. • Bradken’s steel foundries account for 90% of the Company’s total energy usage • Electricity ~ 60% and Natural Gas ~ 40% • Australian energy use ~ 1.15 Peta Joule & 139,300 t CO2e • Australian energy costs ~ 5-8% of costs • Approximately 92% of all cast products are produced from scrap steel • Product Stewardship – Buy Back Scheme • Foundry sand used up to 10 times • Used foundry sand often used by other industries (beneficial reuse)

  4. Foundry Processes • Bradken foundries use a range of modern technologies including: • CAD/CAM • 3D Modelling • Discrete Element Modelling • Dynamic Simulation Analysis • Finite Element Analysis • Virtual Prototyping • Casting simulation • Robotic Manufacturing

  5. EEO First Round • Bradken identified it used more than 0.5 PJ, registered and submitted the assessment plan • Bradken used four separate energy consultants to audit seven of its foundries with the intention of ending up with four different sets of recommendations.Overall, the ideas were very similar: • Savings in GJ and tons CO2e identified were very similar between auditors • Upgrade cost estimates varied significantly (up to a factor of five) • Savings of 10-17% in GJ and costs were identified

  6. Factors affecting first round • Age of equipment • Retrofitting costs & difficulty • Training & awareness • Accuracy of estimates • Sub metering • GFC • Company growth • International competition & Value of the Australian dollar • Productivity, quality and safety improvements • Environmental demands - NIMBY

  7. Bradken Growth - 2006 to 2013 • Bradken has experienced significant growth through: • The acquisition of existing foundries in the Australia, UK, USA, Canada, Malaya and New Zealand • New fabrication facilities in China • Commissioning new foundry in China

  8. Energy Performance overall GJ/t - Australia • Changes in overall energy use per tonne of product

  9. EEO Round 2 - Key Element 1 & 2 – Leadership & People For the second round of EEO audits Bradken has: • Updated Environmental Policy in 2011 • Added Energy & GHG Policy in 2011 • Updated Corporate Environmental Goals to include specific goal to reduce energy use per ton of product by 2% per year. • Consistent with UK Climate Change Agreement • US sites set goal at 2.5% - US DoE “Better Buildings, Better Plants Program” • Utilised internal and external resources to develop internal knowledge, awareness and skills.

  10. EEO Round 2 – Key Elements 3 & 4 - Assessment & Identification • Internal audits where practical – combine energy, raw material & waste audits • Developed own checklists & utilise US DoE tools • Purchased thermal image cameras, flue gas analysers, compressed air leak detection equipment for internal use • Update previous audits with better monitoring • Utilise extensive publicly available information from • US DoE & AFS - various • UK Carbon Trust & DEFRA & CTI - various • Environment Canada - various • European Commission “Best Available Techniques in the Smitheries and Foundries Industry” • Bring in external specialist consultants eg. arc furnace specialists (July 2012) where needed • Benchmarking across Bradken’s 19 foundries

  11. EEO Round 2 – Key Elements 3 & 4 – DATAINTERNATIONAL COSTS

  12. EEO Round 2 – Key Elements 3 & 4 – DATABENCHMARKING

  13. EEO Round 2 – Key Elements 3 & 4 – DATA - GAS • Gas use ~40 % of total GJ - 80 to 93% in heat treatment • Heat Treatment has specific quality requirements – heat castings to specific temperatures for specific amounts of time. • Thermal imagery used to identify hot spots. • New ovens 30% more efficient with recuperative burners & pulse firing than same sized oven with conventional burners & controls

  14. EEO Round 2 – Key Elements 3 & 4 – DATA - GAS • Ladle Heaters use 7 to 20% of site gas • Heated to as hot as practical to carry molten metal from furnace to moulds and pour metal into moulds. • “State of the art” – oxy fuel burners – up to 50% gas savings (ref FOUNDRYBENCH – Europe) – one installed OS that demonstrates these savings.

  15. EEO Round 2 –– DATA - Electricity • Equipment Electricity use

  16. EEO Round 2 – DATA - Furnaces • Melting Furnace Efficiency Factors • Operators, Tap to tap times • Furnace size, Alloys, Scrap Quality • Age of furnaces - 1930s to 1990s • “Furnace Whisperer”

  17. EEO Round 2 – Key Elements 3 & 4 – DATA - Furnaces • Different steel alloys have different melting efficiencies • Product design affects Yield • Starting from cold - 20% extra

  18. EEO Round 2 – DATA – Compressed Air • Compressed electricity use while compressed air leaks are fixed.

  19. Factors Affecting Decisions • New foundry in China • Sub metering • International Competition • Clean Technology Food & Foundry Program – 33% • Sub metering & power factor • US Funding – Tacoma Compressed Air Project • Cost $765k – Incentive $536k => 70% • Annual Saving $130k and 3,148,285 KWh • Energy Costs and Carbon Tax

  20. Carbon Tax • UK Carbon Tax • Tax on electricity offset by Climate Change Agreement (reduce energy use per ton by 2% per year) • Low CO2e t/KWhr factor • Low impact – (site managers) – changes may come • New Zealand Carbon Tax • Increase in LPG costs • Not detectable in electricity - low CO2e t/KWhrfactor • Australian Carbon tax (plus transmission charges) • Estimated $3.5 million • To date price rises for electricity 8 to 34% • LRECs, SRECs also a carbon tax • July 2014 ???

  21. EEO Round 2 – KE 6 - Communicating OutcomesBradken Eco-Efficiency Games - 2012 • Bradken benchmarked all 18 steel foundries KPIs against each other and ranked performances • KPIs were: • Energy => GJ/t, $/t, GHG/t • Key resources => t/t (scrap metal, alloys, sands, water, manhours/t) • Waste => t/t, $/t product, $/t waste • Gave overall performance levels and winners were: • GOLD MEDAL => Adelaide, SA • SILVER MEDAL => Mont Joli – Quebec, Canada • BRONZE MEDAL => Henderson, WA USE LESS, WASTE LESS, COST LESS

  22. USE LESS, WASTE LESS, COST LESS • THOSE WHO DO NOT LEARN FROM HISTORY ARE DOOMED TO REPEAT IT (??) • DO NOT RE-INVENT THE WHEEL • BENCHMARKING • TRAINING & AWARENESS

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