Energy Efficiency Opportunities (EEO) Program
Report for period 1 July 2010 to 30 June 2011
BlueScope Steel is a participant in the Federal Energy Efficiency Opportunities program. Under the program, detailed assessments of energy use and the potential for savings were carried out to schedule at a number of key plant departments at the Port Kembla Steelworks, Springhill and Western Port sites. Energy use assessed included consumption of utilities and liquid fuels. During FY2010-2011 the energy use assessed represented around 4.9% of BlueScope Steel’s total energy use in Australia, representing 6.1 PJ of energy consumption. These assessments build on work completed under the program since its inception in FY2007-2008 and over 99.6% of BlueScope Steel’s energy consumption has now been assessed.
Summary of Assessed Energy Use 1 July 2010 to 30 June 2011
| Key Activity Area Assessed* | Energy Consumption ** 2010-2011 | Proportion of Total BlueScope Steel Energy Use in Australia 2010-2011 |
|---|---|---|
|
Port Kembla Steelworks |
5.2 PJ |
4.2% |
|
Port Kembla Steelworks |
0.16 PJ |
0.1% |
|
Springhill Works |
0.033 PJ |
0.03% |
|
Western Port Works |
0.68 PJ |
0.6% |
| Total for Assessments 2010-2011 | 6.07 PJ | 4.9% |
|
Total for all key activities assessed to date under the Energy Efficiency Opportunities program (Period Jan. 06 – Jun. 11) |
123.33 PJ |
99.6% |
|
Total Energy Use in Australia 2010–2011 |
123.83 PJ |
100% |
* Assessments were carried out throughout the period July 2010 to June 2011.
** Metering of purchased energy sources is to an accuracy of +/- 5%. Energy consumption for key activity areas is internally monitored on all sites to an accuracy of +/- 10% to meet operational requirements.
Completed assessments have identified a range of possible ideas to save energy that in some cases also have the potential to save greenhouse gases. Utilising BSL’s capital investment review procedures each idea or concept will undergo a thorough technical and financial feasibility assessment to confirm its viability. This review process is ongoing and viable projects are progressed to implementation where appropriate.
A number of plant departments involved in the EEO program have been impacted by changes to the company resulting from its withdrawal from the steel export market announced on 22 August 2011. A review of projects and opportunities identified and reported previously in these areas will be undertaken during FY2012.
Case studies of ideas under investigation or implemented and the overall results of assessments are provided below.
CASE STUDIES OF PROJECTS UNDER INVESTIGATION
Port Kembla Steelworks
Sinter Plant - Ignition Hood Upgrade Project
In a sinter plant small particles of iron ore are heated to between 1100-1200oC and coalesce to form larger particles which can then be processed more efficiently in a blast furnace. Coke is mixed with the small iron ore particles and ignited, using a gas fired ignition hood, to provide the heat for the sintering process. A new natural gas fired ignition hood has been installed, replacing, the original coke ovens gas ignition hood, which imparts more heat into the sintering process and reduces the amount of coke required. The reduction in coke required has provided a significant energy saving and reduction in CO2 emissions.
Estimated Capital Cost: $18 Million
Energy Savings per Annum: 274,930 GJ
Springhill Works
Crane Bay Lighting
The Springhill site operates a number of overhead cranes that require high bay lighting to move products and equipment safely and efficiently around warehouse buildings. Most of these cranes operate on a 24 hour basis and therefore require lighting to be operating at all times in their work areas. Two crane bay areas for automated cranes were identified as requiring lighting for only three hours per day. The high bay warehouse lights in these areas can potentially be switched off during any idle periods saving over 87% of the electricity consumption.
Estimated Capital Cost: $20,000
Energy Savings per Annum: 1,103 GJ
Western Port Works
Demineralisation Plant Upgrade
Western Port site operates natural gas fired boilers to generate process steam. To enable the boilers to run efficiently they require very clean feedwater, cleaner than potable water. This is because dissolved minerals in potable water build up and form scale which can build up on the inside of boiler tubes. The thicker the scale build-up in the boiler tubes the less efficient is the heat transfer to the boiler. Thus a more effective demineralisation system was installed increasing the energy efficiency of the boilers. Two demineralisation systems were replaced with a single more effective system.
Estimated Capital Cost: $1.837 Million
Energy Savings per Annum: 11 200 GJ
ASSESSMENT RESULTS FROM 2010 - 2011
2010 – 2011 Port Kembla Steelworks – Energy Services
Opportunities assessed to an accuracy of ±30% or better
| Status of Opportunities Identified | Number of Opportunities 0 – ≤4 Years Payback Period | Estimated Energy Savings Per Annum By Payback Period (GJ) | Total Estimated Energy Savings Per Annum (GJ) | ||
|---|---|---|---|---|---|
| 0 – <2 Years | 2 – ≤4 Years | ||||
|
Outcomes of assessment |
Total Identified |
3 |
157680 |
0 |
157680 |
| Business Response | Implemented | 1 | 31536 | 0 | 31536 |
| Under Investigation |
2 |
126144 |
0 |
126144 |
|
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities
|
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ)
|
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
2010 – 2011 Port Kembla Steelworks – Services and Administration
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities
|
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ)
|
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
3 |
244 |
0 |
244 |
| Business Response | Under Investigation | 0 | 0 | 0 | 0 |
| Implemented | 3 | 244 | 0 | 244 | |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities
|
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ)
|
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
1 |
931 |
0 |
931 |
|
Business Response |
Under Investigation |
1 |
931 |
0 |
931 |
2010 – 2011 Springhill Works – Services and Administration
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities
|
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ)
|
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
|||||
| Total Identified |
1 |
1656 |
0 |
1656 |
|
| Business Response | Under Investigation | 1 | 1656 | 0 | 1656 |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
2010 – 2011 Western Port Works – Services and Administration
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
3 |
– |
25292 |
25292 |
|
Business Response |
Under Investigation |
1 |
– |
92 |
92 |
| Implemented | 2 | – | 25200 | 25200 | |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
UPDATE ON ASSESSMENTS COMPLETED PRIOR TO 2010 - 2011
Review of potential energy efficiency opportunities identified in assessments prior to FY2011 has been ongoing through the year. The following tables provide a summary of the progress to date.
Port Kembla Steelworks – Plate Mill – Assessed 2009 – 2010
Energy use during 2010-2011: 1.3 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
1 |
0 |
3096 |
3096 |
| Business Response | Implemented | 1 | 0 | 3096 | 3096 |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
Springhill Works – Metal Coating – Assessed 2009 – 2010
Energy use during 2010-2011: 1.0 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified |
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment
|
Total Identified |
5 |
77444 |
0 |
77444 |
| Under Investigation |
5 |
77444 |
0 |
77444 |
|
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
Westernport Works – Painting – Assessed 2009 – 2010
Energy use during 2010-2011: 0.9 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
4 |
18023 |
62567 |
80590 |
|
Business Response
|
|||||
| Under Investigation |
4 |
18023 |
62567 |
80590 |
|
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
Port Kembla Steelworks – Steelmaking – Assessed 2008 – 2009
Energy use during 2010-2011: 2.8 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
4 |
32242 |
39744 |
71986 |
| Business Response | Implemented | 1 | 2766 | 0 | 2766 |
| To be Implemented | 1 | 29476 | 0 | 29476 | |
| Under Investigation | 2 | 0 | 39744 | 39744 | |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
2 |
2784 |
4092 |
6876 |
| Business Response | Not to be Implemented |
2 | 2784 | 4092 | 6876 |
Port Kembla Steelworks - Hot Strip Mill– Assessed 2008 – 2009
Energy use during 2010-2011: 5.2 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
6 |
455000 |
138600 |
593600 |
| Business Response | Under Investigation | 1 | 0 | 3600 | 3600 |
| Not to be Implemented | 5 | 455000 | 135000 | 590000 | |
Springhill Works – Painting – Assessed 2008 – 2009
Energy use during 2010-2011: 0.3 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
5 |
93047 |
3053 |
96100 |
| Business Response | Implemented | 1 | 46200 | 0 | 46200 |
| Under Investigation | 4 | 46847 | 3053 | 49900 | |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
Western Port Works – Cold Rolling and Metal Coating – Assessed 2008 – 2009
Energy use during 2010-2011: 1.3 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
9 |
49414 |
25604 |
75018 |
| Business Response | Under Investigation | 3 | 22198 | 25604 | 47802 |
| To Be Implemented | 1 | 16005 | 0 | 16005 | |
| Implemented | 5 | 11211 | 0 | 11211 | |
Opportunities assessed to an accuracy outside ±30%
|
Status of Opportunities Identified
|
Number of Opportunities
|
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
7 |
10606 |
0 |
10606 |
| Business Response |
Not to be Implemented |
7 |
10606 |
0 |
10606 |
Port Kembla Steelworks – Cokemaking, Assessed 2007 – 2008
Energy use during 2010-2011: 20.3 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
2 |
16345 |
0 |
16345 |
| Business Response | Under Investigation | 1 | 15873 | 0 | 15873 |
| Implemented | 1 | 472 | 0 | 472 | |
Opportunities assessed to an accuracy of outside±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
1 |
0 |
295650 |
295650 |
| Business Response | Not to be Implemented |
1 | 0 | 295650 | 295650 |
Port Kembla Steelworks – Ironmaking, Assessed 2007-2008
Energy use during 2010-2011: 80.8 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
9 |
1524785 |
969680 | 2494465 |
| Business Response | Under Investigation | 5 | 751879 | 969680 | 1721559 |
| Implemented | 4 | 772906 | 0 | 772906 | |
Opportunities assessed to an accuracy of outside±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
1 |
274500 |
0 |
274500 |
| Business Response | Not to be Implemented | 1 | 274500 | 0 | 274500 |
Springhill Works – Cold Rolling, Assessed 2007 – 2008
Energy use during 2010-2011: 0.4 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
4 |
37800 |
14928 |
52728 |
| Business Response | Under Investigation | 4 | 37800 | 14928 | 52728 |
Opportunities assessed to an accuracy of outside±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
0 |
– |
– |
– |
Western Port Works – Hot Strip Mill, Assessed 2007 – 2008
Energy use during 2010-2011: 2.9 PJ
Opportunities assessed to an accuracy of ±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
2 |
234000 |
0 |
234000 |
| Business Response | Implemented | 2 | 234000 | 0 | 234000 |
Opportunities assessed to an accuracy of outside±30% or better
|
Status of Opportunities Identified
|
Number of Opportunities |
Estimated Energy Savings |
Total Estimated Energy Savings Per Annum (GJ) |
||
|---|---|---|---|---|---|
|
0 – <2 Years |
2 – ≤4 Years |
||||
|
Outcomes of assessment |
Total Identified |
1 |
0 |
31000 |
31000 |
| Business Response | Not to be Implemented |
1 | 0 | 31000 | 31000 |
The information included in this report is, to the best of my knowledge, correct and in accordance with the requirements of the Energy Efficiency Opportunities Act 2006 (Cth) and the Energy Efficiency Opportunities Regulations 2006 (Cth). I attest that the Board of Directors of BlueScope Steel Limited has reviewed and noted this report.
Signed
Paul O'Malley
Managing Director and Chief Executive Officer
Note: Energy efficiency opportunities are subject to ongoing investigations and review. Potential savings in this report are current estimates that may be higher or lower than previously reported data.
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