ArcelorMittal Dofasco

ArcelorMittal Dofasco
- Leadership Opportunities Through Partnering
Canadian Manufacturers and Exporters
- Energy 2015
November 23rd 2015
ArcelorMittal Dofasco
• Canada’s largest producer of
advanced flat-rolled steels for
automotive, energy,
construction/infrastructure,
appliance and packaging markets.
• 103 year history in Hamilton
• Over 5,000 employees
• Support over 20,000 indirect jobs
• Purchases of >$3 billion/yr, with
over $2.5 billion/yr in Canada, $1.6
billion in Ontario and $1.4 billion in
Hamilton region
ArcelorMittal Dofasco is Canada’s largest integrated steel producer located in Hamilton, Ontario.
ArcelorMittal Product Applications
ArcelorMittal participates as a supplier to the automotive, construction, white goods,
packaging and energy markets.
Electricity Current Prices and Forecast by Country
USD / MWh 2015 median forecast*
140
120
USD / MWh
100
Abstract from Ontario
Government’s recent
Industrial Price Forecast
80
60
40
20
-
• Ontario is a high cost jurisdiction for electricity consumers.
• Forecasted cost is estimated to rise by ~30% over the next 5 years.
Electricity – A significant cost component
of steel production
• Electricity accounts for ~10%
of total manufacturing costs to
produce steel, excluding raw
material costs
• Electricity cost mitigation is a
focus for AM Dofasco
Energy intensive manufacturers are at competitive cost disadvantage relative to
neighbouring jurisdictions.
Cost Management
Available Programs:
•
Industrial Conservation Program, ICI (Global Adjustment)
•
Industrial Accelerator and SaveOnEnergy Incentive Programs
•
Demand Response, DM
•
Industrial Electricity Incentive Program, IEI
The Province has offered a number of programs to mitigate electricity cost.
Partnering
A few examples….
•
Industrial Gas Infrastructure - Partnership effort between Air Liquide, AMD, Horizon
Utilities and City of Hamilton
•
IESO embedded Energy Manager and Opportunity Accelerator programs
•
IESO - Industrial Accelerator Program - Adoption of project portfolio approach to
improve approvals administration efficiency and speed to completion
Significant opportunity exists in the “white spaces”. Waste reduction, increased efficiency
and productivity improvement can be found by looking at systems holistically.
AMD Electricity Conservation Portfolio
MW
Reduction
80
70
60
50
40
30
20
10
0
Phase 0
Phase 1
Pre - Industrial
Accelerator
Phase 2
Phase 3
OPA Industrial Accelerator
Pre-Industrial
Accelerator
(completed)
Phase 1
(complete)
Phase 2
(active )
Phase 3
(active)
• 8 MW (82 projects)
• 11 MW (8 Projects)
• 17 MW (4 projects)
• 35MW (3 projects)
AMD has developed a portfolio of projects to significantly reduce site demand, eliminate
waste and improve our competitiveness.
Example: #3 Temper Mill Lighting Upgrade
Before
Objective:
• Replace metal halide light fixtures and wiring with LED
fixtures at the 3Temper Mill.
Benefits:
• LDC SaveOnEnergy incentive enabled
• Conservation of 1300 MWh/yr
• Improved area illumination and control
• Lower life cycle costs
• Financials: 2 year payback
After
Typical efficiency retrofit enabled by incentives to provide a competitive business case.
Example: Energy Efficient Technology Upgrade
Objective:
• Technology change to reduce power
requirement by 99%.
• Motor driven conveyor system replaces
pneumatically operated shaker table system.
•
Benefits:
• IESO IAP incentive enabled
• 5,000 MWh/yr reduction
• Lower O&M
• Financials: 2 year payback
Project enabling technology update with improved performance.
Example: Valorizing Byproduct Gases - Turbo Generator
Objective:
• Install a refurbished 12 MW turbine generator
to generate electricity using excess by-product
gases.
• Leveraging existing boiler system capacity to
generate steam from byproduct fuel for
conversion into electricity
• IESO IAP incentive enabled
Benefits:
• IESO IAP incentive enabled
• 49,000 MWh/yr in generation for internal use
• Financials: 1.5 year payback
System efficiency upgrade leveraging existing infrastructure.
In Summary…
•
Structural changes in Ontario electricity rates will sustain high Provincial pricing.
•
At AM Dofasco energy conservation and efficiency improvements are strategic
to corporate competitiveness.
•
Incentive programs are a critical enabler to meet corporate project investment
objectives.
•
Significant opportunity exists in the “white spaces”. Waste reduction, increased
efficiency and productivity improvement can be found by looking at systems
holistically.
•
A number of ArcelorMittal Dofasco conservation projects have benefited from
partnership and incentives provided by the IESO and Horizon Utilities.
End