Effective Energy Effective Energy Management Information S Tysem

Development of a Cost- Effective Energy Management Information StSystem

Presented by Alvaro Rozo on behalf of Katherine van Nes – Hatch Ltd.

Presentation Topics Hamilton East • Project Background • Approach • Components of an EMIS Montreal • Components of the AMHE EMIS Project Cost Effectiveness Highlights

5% Sustaining CitlCapital • Approximated 15% 30% Energy Operational Costs Labour (Mining) 20% Consummables

30% Other

• Part of ArcelorMittal Long Carbon North America • Produces variety of steel wire products • Renown for cold heading products and oil-tempered wire

© Copyright 2014 OSIsoft, LLC. 4 © Copyright 2014 OSIsoft, LLC. 5 Project Drivers • Small facility • Several million on natural gas and electricity costs • Natural Gas (including steam))g accounting for 85% of energy consumption (GJ) • Electricity disproportionately accounting for 50% of overall cost

Expected savings 5 – 8 %

• Benchmarked AMHE energy management ppgpyractices via ISO50001 gap analysis • Identified and ranked preliminary energy savings opportunities • Preliminary energy models created • Energy drivers determined • Preliminary implementation plan and architecture (cost assessment) • Feasibility of EMIS examined • Paid for via OPA Industrial Accelerator program

$ Savings Note

WP 01 - WP02 - WP03 - WP04 - Foundational Energy Metering EMIS EMIS Activities Stage Gate •Energy metering Implementation Commissioning •Foundational Review specification, and Testing and Handover activities to set basis •Budget procurement and •Configuration •System foopeetatoor implementation of installation •Schedule •Internal Testing Commissioning EMIS •Site data collector •Implementation •User Acceptance •User Training Resource Reqts (iTi) •Networking to site Testing •System Handover and RASCI update data collector •Configuration and testing of tags in CtlidHitiCentralized Historian

Plan Review Implement $ Savings Note

© Copyright 2014 OSIsoft, LLC. 9 Components of an EMIS • Energy Account Centers • Meters and Inputs • Data Capture and Integration • Data Analysis and Reporting • Management Systems, People and Procedures Source: Natural Resources Canada’s “Energy Management Information Systems Planning Manual and Tool”

© Copyright 2014 OSIsoft, LLC. 11 Energy Account Centers Energy Account Centre (EAC): “The organization level at which energy performance sho uld be managed” EAC Definition Principles: • Combined (i.e. all energy sources) • Process Areas as starting point • General mapping to finance cost centers • Target largest AMHE energy drivers • Maximum information / minimum cost

$ Savings Note

Primary Energy Secondary Energy Account Primary Energy Secondary Energy Account Account Centre Centre Account Centre Centre 1 ‐ Mining Drilling 3 – Mill Processing Grinding Blasting Gravity Recovery Excavation Screening & Thickening Transport Leach/Carbon‐in‐Leach Handling of waste rock Carbon Stripping Dewatering Cyanide Destruction 2 – ChiCrushing & PiPrimary ChiCrushing Ta ilings RliReclaim Conveying Pebble Crushing 4 – Surface Camp Water & HVAC Conveying Facilities Water Treatment Plant Oxygen Plan t

Meter Identifier Location Description 61‐frame East 1 Substation 'C' 61‐frame West • Meters are expensive 62‐frame • Strategic planning in 63,64,65,66 ‐ Frames 2 Substation 'C' Oil Temper identified derived and Stabilizer Drive / Strander needed meters 3 SbSubstati on '''D' 23,24 ,2 5,26 ,2 7,28 ,55‐ Frames Stabilizer Heating 4 Substion 'A' Wire Mill South (30,31,34 ‐ frame) Surface Furnace & Rx Gen 5 Old Boiler Room Kaeser Compressor Main Natural Gas Meter 13‐Frame 6 Substation 'B' #1 Cleaning line 7 Substation 'B' 14‐Frame $ Savings Note 8#2 Cleaning Line #2 Cleaning Line & #3 Crane

• 10 separate process areas • O50tiOver 50 active energy consumers • Electricity, natural gas, steam • Minimal plant floor data collection • Equipment independently controlled • PI System infrastructure in AMM/ Contrecouer (No PI components in AMHE) • Existing Ekho installation in Contrecouer

$ Savings Note

© Copyright 2014 OSIsoft, LLC. 17 PI Infrastructure • No additional onsite physical infrastructure • Connection to sub-metering (no PLCs) • Bring back all available variables • Detailed variable analysis • Calculations – Derived meters (today and future) – Totalizations in required contexts (kW to kWh, flow to scf/lbs) – Conversion (steam to natural gas)

© Copyright 2014 OSIsoft, LLC. 18 PI Infrastructure – Future Opportunities • Leverage Asset Framework and Asset Framework TltTemplates • Leverage Enhanced Calculation Engine and Templates Element Attriutes

1. Reduced base load 2. RdReduce d var ibilitiability (against energy drivers) 3. Increased efficiency (via operationa l opportunities)

Phase 2

Phase 1

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PERFORMANCE MANAGEMENT, KPI’S, OEE • Operational Management PRODUCTION DOWNTIME QUALITY and Intelligence ENERGY HEALTH & MAINTENANCE Software SAFETY MANAGEMENT

FOUNDATION MODULES

© Copyright 2014 OSIsoft, LLC. 28 Wrap Up Cost Effective EMIS Development • Audit • Options analysis Funding • Stage gate review following Ontario Power Authority Industrial planning Accelerator Program • EAC de fin ition - AditfiAudit finance d • Meter placements - Horizon Utilities • Meter selection 80% up to $75,000 • Architecture - Union Gas • Functional Requirements 50% up to $100,000 definition geared to need

• [email protected] • Information Management Consultant / Project Manager • Hatch Engineering