Seminar on Promotion of Energy Efficiency and

Conservation
(PROMEEC) for Major Industry in Southeast Asia

Energy Efficiency and Conservation Best

Practices at PT. Krakatau Steel-Indonesia

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Contents

• Company Background
• Energy Profile
•Energy Issues
•Energy Management & Conservation
•R & D and Future Planning
•Government Programs on EE&C
•Conclusions

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 PT. Krakatau Steel

‰ State Owned Company (Established: August 31,1970 )

‰ The first integrated steel plant in Southeast Asia
‰ Responsible for fulfill the steel demand domestic and
abroad
‰ As a backbone of industrial development in the country
‰ Meet the national and international quality standard
such as JIS, ASTM, DIN, ISO9001:2000, ISO 14001,
ISO 17025
‰ Production capacity : 2.000.000 MT per year
‰ Supported by more than 6000 employees
‰ Located in Banten Province, on the westernmost of the
Java Island
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Production Process at PT Krakatau
Steel

Pellet:
Slab Steel Plant Hot Rolling Mill Cold Rolling Mill
Iron ore
(2,000,000 t/y) (850,000 t/y)
(2,200,000 t/y)

Direct Reduction Plant

Billet Steel Plant Wire Rod Mill

(600,000 t/y)
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 DIRECT REDUCTION PLANT
IRON ORE
CO2

FUEL H2O REACTOR

O2

STEAM

NATURAL H2O
GAS

REFORMER GAS
H2O HEATER

DRI
WATER FUEL
NATURAL
GAS
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 SLAB STEEL PLANT

SCRAP

SLAB
DRI LADLE
ELECTRIC ARC FURNACE
FURNACE

CONTINUOUS CASTING
MACHINE
HBI PIG IRON
RH-VACUM
DEGASSING

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 HOT STRIP MILL

SLAB SIZING PRESS

REHEATING FURNACE ROUGHING MILL FINISHING MILL

LAMINAR COOLING
HOT ROLLED COIL DOWN COILER

SHEARING LINE SLITTING/RECOILING LINE SKIN PASS MILL

SHEET AND PLATE SLITTED AND RECOILED HOT ROLLED COIL

RECOILED

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 COLD ROLLING MILL

BATCH ANEALING FURNACE

CONTINUOUS ELECTROLYTiC
HOT ROLLED COIL TANDEM COLD MILL CLEANING LINE
PICKLING LINE
CONTINUOUS
ANEALING LINE

COLD ROLLED COIL

TEMPER MILL COLD ROLLED COIL

SLITTING/RECOILING LINE
SLITTED/RECOILED

SHEARING LINE
SHEET

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 PT. K S - Products

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Product Applications

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
Energy Cost Segmentation at PT.
KS

10%

30%
60%

Electricity Natural Gas Oil Fuel

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Energy Cost Structure (Crude
Steel) at PT. KS

Fix Cost, 12% Energy, 22%

Others, 12%

Raw Material,
54%

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Electricity Consumption Segment at PT. KS
6%
18%

76%

Iron making Steel Making Rolling Mill

Natural Gas Consumption Segment at PT. KS

15%
6%

79%

Iron Making Steel Making Rolling Mill

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Distribusi Daya Listrik PT. KS

K 87 %
D 400 Steel Making
L MVA
95 %
PT KS
P
L 13 %
Others
N 200
MVA
5% Subsidiary
Company

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Energy Conservation Group Organization
President Director

Director Director of Planning & Technology Director Director

G M Research & Technology

Mgr Research & Development of Mgr Technology Mgr Research & Mgr Product
Process & Energy Conservation Planning. Development Services Development

Chief Engineer

Senior Eng. Energy Senior Eng. Process Senior Eng. Raw Mat’l
Conservation & Waste

Engineer Energy Engineer Process Engineer Raw Mat’l &

Conservation Waste

Technicians Technicians Technicians

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
Energy Issues:
„ High Energy Price (especially oil
fuel)

„ Energy Supply Limitation (Natural

Gas)

„ Energy inefficiency

„ Environmental Issue
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Energy Saving Potential at PT. KS Plants

Unit Potential Projects

Fuel oil substitution
„
Rolling
„ Slab hot charging (1,5x1011 Kcal/y)
Mills
„ Waste Heat Recovery

DR „ Boiler fuel substitution

„ Scrap pre-heating
EAF „ Oxygen lancing (9x107 Kwh/y)

„ Dedusting Optimation EAF 5&6 (1,5x107 Kwh/y)

Power „ Fuel oil substitution

Plant „ Waste heat Recovery
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Countermeasures

„ Energy efficiency and conservation

programs
„ Energy diversification / substitution

„ Sufficient NG supply security

„ Plant improvement and

modification
„ Cleaner production program

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Energy Conservation Activities at PT KS
1. Examples of Options Successfully Implemented
ƒ Burner Control System in Ladle Drying and Preheating
ƒ Steam Traps & Leaks Survey, Repair and Replacement
ƒ Neuro Furnace Controller implementation
ƒ Partial Oxidation
2. Examples of Options Potentially Implemented
ƒ Electricity Saving by Power Reduction of Recirculating
Pumps
ƒ Generate Power from Excess High Pressure Natural Gas
through Turbine Expansion & Electrical Generator.
ƒ Recovering Waste Heat through Billet & Slab
Transportation System Modification (Hot Charging)
3. Examples of Options Others Succesfully & Potentially
Implemented
ƒ Implementation Network ECC
ƒ Fuel Oil Substitution

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Burners Control System for Ladle Drying and
Preheating Process in Slab Steel Plant
Otomation in LADLE & TUNDISH HEATING SYSTEM
Save Natural Gas : 9 Nm3/Ton (56%) Before: 16 Nm3/Ton
2 heat treatment periods
EAF 09 EAF 10 After : 7 Nm3/Ton of the Ladle & Tundish :
Signal Power On Time
ò òSignal Power On Time 1. Preheating
ø ø
2. Drying

Natural Gas
Result:
PLC MMI + Monitoring
Shorter heating time, reduce
fuel consumption significantly
LD 01
from 1244 NM3 / heat to 499
TDH 01
NM3/heat.

LD 02 LP 01 LP 02 TDH 02

EAF: Electrical Arc Furnace LD : Ladle Drying LP : Ladle Preheating TDH : Tundish Heating

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Slabs Hot Charging
Basic Concept

„ Cold Charging
± 30 oC
RHF

„ Hot Charging
Potential Saving: ± 530 oC
1.5 x 1011 Kcal/year RHF

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Recovering Waste Heat through Billet
Transportation System Modification
BILLET STRAND CASTER
350 cm

CUTTER
T = 900 °C
Billets

Mechanical 150 cm
Transport
System
1 st COOLINGBED
T = 450 °C
CUTTER
t = 1 Hour
COOLING BED PIPE
25 cm 8 cm
V = 6 m/s, RH = 65%
2nd COOLINGBED Insulation
T = 130 °C AIR: T = 39 °C
CUTTER
Refractory

Goal : to minimize heat loss during transferring time from BSP to WRM
by performing modification / optimation on Billet Transportation
System
PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 COKEOVEN CDQP
DRPLANT

EAF EAF
KDL
(PowerPlant)
PLN
Design of Energy Control
Centre Network
PANT ANT
(SSP1&2) (BSP)
KDL
HEADCOMPUETER
(gasstation
PRODUCTION-LAN
ECC CONFIGURATION
SINTERING STEELPLANT
APPLICATION Optimizing Controlling Analyzing Reporting WAN–Connectionto
PLANT (fuelgasholder) Energy
remoteSystem
ENERGYCONTROLCENTER Cont rol –and
BLAST I nf ormat I on
(ECCforthenetworkof water, steam, MixGas
FURNACE
fuelgases,technicalgases, Aplication-BUS Syst em
incl.PCI Station
electricity,compressedair,
observingtheenergy–contract) HUB2
BOF Substitute
PLANT fuelgasses Monitor2 Monitor6
Server1 Monitor1 DataTrans
station CONTROL Archive Emergency
Monitoring
Gateway
Controlling
HSM
Monitoring Monitoring
Compressed Controlling Controlling
Redundant Control
Air SystemBusses

CRM HUB2
Technical
Gasses
WRM (O2,Ar,N2) HUB1

WATER STEAM MeteringGas Gateway1

Pgi& Gateway2
TREATMENT BLOCKS Station PERTAMINA DATA DataTransmission
AirLiquid DataTransmission
ACQUISITION
PLC-BUS

ECC COMUNICATION SYSTEM concentrator concentrator concentrator concentrator concentrator

PLC PLC PLC PLC PLC
1 2 3 4 5

ToPLcin ToPLcin ToPLcin ToPLcin

productionplant productionplant productionplant productionplant

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Neuro Furnace Controller
(Reduce Electricity Consumption at the Steel Making Plant)

Before : 669 Kwh/TLS

After : 634 Kwh/TLS
Save : 35 Kwh/TLS ( 5 %)

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 HyL-3 Partial Oxidation Process
(Save Natural Gas)
Iron T1 = Before Inject O2
cooler
48,000 Ore
Ton/h
H2O T2 = After Inject O2
water
CO2
N.G.
absorber Cap.: 1,5x106 T/y
20,000 Nm3/h

CO
H2

Nat. Gas
OXYGEN FLOW :
fuel
O2 Injection
Rate : 800 NCMH, Press. = 14 Bars
Process Gas Temperature
Before: 360 Nm3/Ton Before Inject O2 (T1): 933 C
After : 340 Nm3/Ton After Inject O2 (T2) : 980 C
Save : 20 Nm3/Ton (5,5%) DRI

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Total Energy Saving

‰ Natural Gas (saving from: Partial Oxidation,

Steam leaks reparation and Ladle & Tundish
Heating Automation):
= 60 x 106 Nm3 /y = US$ 5,610,326 / y

‰ Electricity (saving from: Neuro Furnace

Controller and others):
= 80 x 106 Kwh /y = US$ 3,804,347 / y

‰ Total Saving = US$ 9,414,674 / y

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 PARTNERSHIP PROGRAM ON EE&C FOR INDUSTRY
AND COMMERCIAL BUILDING

ƒ Partnership program is the government program on energy

conservation focused on energy efficiency improvement for
energy intensive industries and commercial buildings

ƒ Government support e.g. Energy Audit (Free of Charge);

Training; Technical Assistance and Seminar/ Workshop

ƒ Parties involved in the program which started in 2003 are

Government, State-owned Electricity Company, Financial
Agency, Industry and Commercial Building

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 PARTNERSHIP PROGRAM ON EE&C FOR
INDUSTRY AND COMMERCIAL BUILDING

ƒ In 3 years committed industries and buildings report to

government every 6 (six) month about the progress
implementation of the energy audit recommendation.
ƒ In this year, there are 32 industries and building
participate in partnership program
ƒ Energy Audit in industries and buildings will be expanded
to almost 250 objects (industries and buildings) next year
under government budget.

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 ENERGY AUDIT RESULT - INDUSTRY
ENERGY SAVING POTENTIAL
INDUSTRY
(%) US$/Year

IRON AND STEEL

Ispatindo,
Ispatindo, East Java 6.76 2,080,441
Roda Mas Baja Inti,
Inti, South Sulawesi 10.75 11,280
Barawaja,
Barawaja, South Sulawesi
20.6 9,745
TEXTILE

Roda Vivatex – West Java 2.6 272,554

Bhineka Karya Manunggal 1 - West Java 15.74 64,385

Bhineka Karya Manunggal 2 - West Java 3.99 493,250

Vastex Prima - West Java 7.58 69,200

Indah Jaya Textile – Banten 13.74 77,921

FLOUR MILLS

Berdikari Sari Utama,

Utama, West Java 22.2 195,179

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 ENERGY AUDIT RESULT - BUILDING
ENERGY SAVING POTENTIAL
BUILDING
(%) US$/Year

COMMERCIAL BUILDING
¾ Graha Pangeran,
Pangeran, East Java 9.83 18,386

¾ Sarana Jaya, Jakarta 10.10 43,400

¾ Dharma Niaga,
Niaga, Jakarta 10.86 14,109

¾ Bimantara,
Bimantara, Jakarta 11.09 49,225
¾ Plaza Permata,
Permata, Jakarta 15.08 33,386

¾ Ina Bali Beach Hotel, Bali 10.74 113,692

¾ Fantasi Mall, East Kalimantan 19 30,967
GOVERNMENT OFFICE

¾ Bank of Indonesia, South Sumatera 1.92 34,875

¾ R&D Oil and Gas, Jakarta 0.7 848
¾ Training Center MEMR, Jakarta 9.71 5,041

¾ DGEEU, Jakarta 24 13,120

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 OVERSEAS COOPERATION ON EE&C
I. GREENHOUSE GAS EMISSION REDUCTION from INDUSTRIES in ASIA and
PACIFIC (GERIAP) – UNEP

ƒ Enhancing energy efficiency improvement for mitigating GHG emission

ƒ Energy Audit for intensive energy industry :
- Cement - Pulp & Paper
- Fertilizer - Iron & Steel

II. PROMOTION on ENERGY EFFICIENCY and CONSERVATION (PROMEEC), ASEAN

– ECCJ/METI JAPAN

ƒ Promoting energy saving implementation for industry and building in ASEAN

region
ƒ Energy Audit/Energy Management, Database, Benchmarking for industry and
building :
- Industry (2005) : Pulp & Paper Mills, Spinning
- Commercial building (2004) : Hotel - 2 (two) five star class

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id
 Conclusion

• The energy conservation efforts have reduced

energy consumption rate and production cost
and at the same time contribute to create
better environmental condition.
• Supported by the management and all
employee, these efforts have been
implemented succesfully and continuously.

PT KRAKATAU STEEL
Cilegon-Indonesia www.ks.co.id