Use of Low Cost Electrical Power in Petrochemical...

Department of Chemical and Biological EngineeringDepartment of Chemical and Biological Engineering

Illinois Institute of TechnologyIllinois Institute of Technology

Use of Low Cost Electrical Use of Low Cost Electrical PowerPower in Petrochemical in Petrochemical Processing UnitsProcessing Units

Donald J. Chmielewski, Jianyuan Feng and Avery Brown Illinois Institute of Technology

Dennis O’Brien Jacobs Consultancy



Generators Consumer Demand Transmission

Renewable

with Storage

Generator Dispatch

Smart Homes

Commercial Buildings

Smart Manufacturing

Smart Grid OpportunitiesSmart Grid Opportunities

http://www.google.com/imgres?imgurl=http://www.netl.doe.gov/technologies/coalpower/gasification/pubs/images/nippon_lg.jpg&imgrefurl=http://www.netl.doe.gov/technologies/coalpower/gasification/pubs/photo.html&usg=__jHfd6seyi1QunoX4aIOKfKOONEs=&h=387&w=500&sz=230&hl=en&start=18&zoom=1&itbs=1&tbnid=katIb-VZwTD8rM:&tbnh=101&tbnw=130&prev=/images?q=IGCC&tbnid=EdexGueWvIH62M:&tbnh=0&tbnw=0&hl=en&gbv=2&tbs=isch:1



MotivationMotivation

4

Historic data from the PJM, Day-Ahead prices: Jan 1-10, 2005

http://www.pjm.com/markets-and-operations/energy/day-ahead/day-ahead-historical.aspx

0 1 2 3 4 5 6 7 8 9 10

0

20

40

60

Pri

ce o

f E

lect

rici

ty($

/MW

hr)

Day of the year



Objectives of the Study Objectives of the Study

5

• Analyze the operating cost savings of a simple

smart grid scenario within a chemical plant

• Consider the equipment costs

• Utilize historic prices of electricity and natural gas

• Determine the payback period of the smart grid

opportunity



Hot Oil Utility

P1

P2

P3

P4

Hot Oil Based

Utility Plant

Electric Grid

Utility Plant Configuration Utility Plant Configuration

6



Hot Oil Utility PlantHot Oil Utility Plant

7

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)



Utility Plant with Electric Power OptionUtility Plant with Electric Power Option

8

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)



Utility Plant with Thermal Energy StorageUtility Plant with Thermal Energy Storage

9

Molten Salt

Energy Storage

--------------

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Electric

Heater

Heat Exchanger



Presentation OutlinePresentation Outline

10

Motivation and Objective

Electric Heater Configuration

Heater With Energy Storage






o Optimal Operation

o Historic Energy Data

o Capital Costs and Payback Period


11



Baseline OperationBaseline Operation

12

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Heat to Oil is 300MMBTU/hr = 88MW

Furnace Efficiency is 75%

Fuel is 400MMBTU/hr = 117 MW



Electricity Augmented Operation Electricity Augmented Operation

13

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Heater Efficiency is 98%

Max Furnace Turndown is 40%

Max Electric Power is 35MW



Cost Optimal Operation Cost Optimal Operation

14

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Pevf

eeff Pcc min

MWPef 8898.075.0

MWPe 350



Restated Optimization Problem Restated Optimization Problem

15

eeff Pcc min

75.0/)98.088( ef P

MWPe 350

eRPCmin

MWPe 350

75.0/98.0feR ccC

MWPef 8898.075.0



Optimal Operating Policy Optimal Operating Policy

16

035

00

R

R

eCifMW

CifP

75.0/98.0feR ccC

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Pevf






o Optimal Operation




17



Energy Costs in 2005Energy Costs in 2005

18

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2005

Electricity

Natural Gas

75.0/98.0ff cc




19

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2008

Electricity

Natural Gas

75.0/98.0ff cc




20

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2012

Electricity

Natural Gas

75.0/98.0ff cc



Energy CostsEnergy Costs –– Three Sample YearsThree Sample Years

21

0 100 200 300

0

50

100

150

Day ofthe Year

En

ergy C

ost

($/M

Wh

r)

Energy Costs 2012

Electricity

Natural Gas

0 100 200 300

0

50

100

150

Day ofthe YearE

ner

gy C

ost

($/M

Wh

r)

Energy Costs 2008

Electricity

Natural Gas

0 100 200 300

0

50

100

150

Day ofthe Year

En

erg

y C

ost

($

/MW

hr)

Energy Costs 2005

Electricity

Natural Gas



Operating Profiles in 2005Operating Profiles in 2005

22

55 56 57 58 59 60 61 62 63 64 65

0

50

100

150

Day ofthe Year

En

ergy R

ate

(M

W)

or

Cost

($/M

Wh

r)2005

Electricity Cost Fuel Cost Electric Power Fuel Usage

0 1 2 3 4 5 6 7 8 9 10

0

50

100

150

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r) 2005




Operating Profiles in 2012Operating Profiles in 2012

23

0 1 2 3 4 5 6 7 8 9 10

0

50

100

150

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r) 2012

Electricity Price Fuel Price Electric Power Fuel Usage



Comparison of 2008 and 2012Comparison of 2008 and 2012

24

0 1 2 3 4 5 6 7 8 9 10

0

50

100

150

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r) 2012


170 171 172 173 174 175 176 177 178 179 180

0

50

100

150

Day of the Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r) 2008




2005 2008 2012

Baseline $37.4 $32.9 $18.8

With Electric

Heater $33.7 $30.3 $18.3

Savings $3.7 $2.6 $0.5

Percent Savings 9.9% 7.9% 2.7%

Annual Operating Costs (in millions)Annual Operating Costs (in millions)

25



2005 2008 2012

Baseline $37.4 $32.9 $18.8

With Electric

Heater $33.7 $30.3 $18.3

Savings $3.7 $2.6 $0.5

Percent Savings 9.9% 7.9% 2.7%


26




27

2005 2008 2012

Baseline $37.4 $32.9 $18.8

With Electric

Heater $33.7 $30.3 $18.3

Savings $3.7 $2.6 $0.5

Percent Savings 10% 8% 3%






o Optimal Operation




28



Electric Heaters Electric Heaters

29

http://www.armstrong-chemtec.com



Cost of Electric Heaters Cost of Electric Heaters

30

Cost of 5MW electric heater is $1.1 million

Installed cost of 5MW heater is $3.3million

If economy-of-scale is linear, then

o 35MW installed is $23.1 million

If economy-of-scale is 0.6 rule, then

o 35MW installed is $10.6 million



PaybackPayback PeriodPeriod

31

2005 2008 2012

Savings from

electric heater $3.7 $2.6 $0.5

Heater Cost

(Linear EOS) $23.1 $23.1 $23.1

Payback (years) 6.2 8.8 46

Heater Cost

(0.6 Rule EOS) $10.6 $10.6 $10.6

Payback (years) 2.8 4.1 21







32



Utility Plant with Thermal Energy StorageUtility Plant with Thermal Energy Storage

33

Molten Salt

Energy Storage

--------------

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Electric

Heater

Heat Exchanger

f

eP

SESQ



Optimal Operation using Economic MPC Optimal Operation using Economic MPC

34

max

1

max

max

1

0

0

0

350

8898.075.0

..min

SkS

kSkekSkS

eke

SkS

kSkf

N

kkekekfkf

EE

QPEE

PP

MWQQ

MWQ

tsPcc

Molten Salt

Energy Storage

--------------

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Electric

Heater

Heat Exchanger

f

eP

SESQ




35

max

1

max

max

1

0

0

700

350

8898.075.0

..min

SkS

kSkekSkS

eke

SkS

kSkf

N

kkekekfkf

EE

QPEE

MWPP

MWQQ

MWQ

tsPcc

Molten Salt

Energy Storage

--------------

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Electric

Heater

Heat Exchanger

f

eP

SESQ




36

MWhrEE

QPEE

MWPP

MWQQ

MWQ

tsPcc

SkS

kSkekSkS

eke

SkS

kSkf

N

kkekekfkf

2000

700

350

8898.075.0

..min

max

1

max

max

1

0

Molten Salt

Energy Storage

--------------

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Electric

Heater

Heat Exchanger

f

eP

SESQ



10 11 12 13 14 15 16 17 18 19 20

0

20

40

60

80

100

120

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r)

2005

Electricity Cost Fuel Cost

Operation with Energy StorageOperation with Energy Storage

37

Molten Salt

Energy Storage

--------------

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Electric

Heater

Heat Exchanger

f

eP

SESQ

10 11 12 13 14 15 16 17 18 19 20

0

20

40

60

80

100

120

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r)

2005

Electricity Cost Fuel Cost Electric Power

10 11 12 13 14 15 16 17 18 19 20

0

20

40

60

80

100

120

Day ofthe Year

En

erg

y R

ate

(M

W)

or

Co

st (

$/M

Wh

r)

2005




Annual Operating Costs (in millions)Annual Operating Costs (in millions) with 200MWhr Storage and 70MW Heater with 200MWhr Storage and 70MW Heater

38

2005 2008 2012

Baseline $32.9 $37.4 $18.8

Cost with

Storage and

Electric Heater

$27.5 $33.3 $17.8

Savings $5.4 $4.1 $1.0

Percent Savings 16% 9% 6%



Molten Salt Thermal Energy Storage Molten Salt Thermal Energy Storage

39

http://www.flowserve.com/Products/Pum

ps/Vertical/Wet-Pit/Molten-Salt-VTP-

Pump,en_US

http://csmres.co.uk/cs.public.upd/article-images/1-88434.JPG

Assume all this equipment is

zero cost



Payback PeriodPayback Period

40

2005 2008 2012

Savings $5.4 $4.1 $1.0

70MW Heater Cost

(0.6 Rule EOS) $16.1 $16.1 $16.1

Payback (years) 3.0 3.9 16.1

With Zero Cost Energy Storage



Payback PeriodPayback Period (in years)(in years)

41

2005 2008 2012

without storage 2.8 4.1 21

with storage >3.0 >3.9 >16.1

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Pevf

Molten Salt

Energy Storage

--------------

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)

Electric

Heater

Heat Exchanger

f

eP

SESQ



Alcoa Alcoa and Aluminum Smelting and Aluminum Smelting

42

• 40% of Costs to Produce Aluminum is Electricity

• Production is Directly Proportional to Power Input

• Process Focused Demand Response – Not Aux. Load



Evolution of Alcoa Demand ResponseEvolution of Alcoa Demand Response

43

Dynamic Demand

Response

300

350

400

450

500

550

May 31, 2011 - 70 MW's of Direct Load Control

300

350

400

450

500

55024 Hrs of Traditional Operations (470 MW)

Base Load Consumption

Smelting provides

steady 24/7 grid load

Limited collaboration

with energy system

0

100

200

300

400

500

600

24 Hr Load Profile with Reliability Interruption

Traditional Demand

Response

Alcoa provides emergency

shutdown capability

Smelter a last resort

ancillary service

MISO remotely controls 75

MW of smelter load in real

time

Enables dynamic grid

regulation



Utility Plant with Electric Power OptionUtility Plant with Electric Power Option

44

Electric

Heater

Furnace

Hot Utility Oil

(to the process)

Fuel

Cold Utility Oil

(from the process)

Electric Power

(from the grid)



45

AcknowledgementsAcknowledgements

Current and Former Students:

Benjamin Omell

David Mendoza-Serrano

Oluwasanmi Adeodu

Ming Yang, PhD (Taiwan Electric)

Personal Communications:

Jeff Siirola (CMU/Purdue)

Kiran Sheth and Don Bartusiak (ExxonMobil)

Funding:

National Science Foundation (CBET – 0967906)

Wanger Institute for Sustainable Engineering Research (IIT)



ConclusionsConclusions

Electric heater can provide 3-10% savings in energy

costs

Strongly dependent on gas and electricity prices

Electric heaters are expensive!!

Payback period 2-40 years

Thermal Energy Storage provided little benefit

Did not consider revenue from ancillary services

46

Use of Low Cost Electrical Power in Petrochemical...

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