HELLENIC FERTILIZERS AND CHEMICALS ELFE s.a.

“Energy Saving and High Efficiency Cogeneration in an Industrial Complex: The Case Study of HELLENIC FERTILISERS AND CHEMICALS ELFE S.A.” HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. Dr. Theodora Kouloura Strategic Planning, Regulatory Affairs and Management Systems Dep. Manager

3 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 3 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura OVERVIEW  The Greek Fertilizers Company  The energy system  Basic and On-going Energy Saving Measures  The high efficiency cogeneration Unit  Legislative difficulties in energy saving  Conclusions

4 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 4 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura HELLENIC FERTILIZERS AND CHEMICALS ELFE s.a. The Greek Fertilizers Company (1/5) Initially, the final products were compound NPK fertilizers for domestic use. Over the next decades, the existing plants were substantially upgraded or replaced by new ones, while new plants were added. ELFE (formerly Phosphoric Fertilizers Industry) established in 1961

5 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 5 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura HELLENIC FERTILIZERS AND CHEMICALS ELFE s.a. The Greek Fertilizers Company (2/5) The ELFE site at Nea Karvali, Kavala, consists of the following production plants and facilities: Ammonia Plant (capacity MTPY) designed and constructed by KTI Holland (now Technip) Nitric Acid Plant (capacity MTPY) classical Dual Pressure process, AN-solution Plant (capacity MTPY), both of them designed and constructed by UHDE Nitrogenous Fertilizers (AN/CAN) Plant (capacity MTPY) designed by UHDE and constructed under the license from NORSK HYDRO (High temperature Pan Granulation process) Phosphoric Acid Plant (capacity MTPY P 2 O 5 ), SIAPE–CHEMIEBAU- PRAYON technology

6 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 6 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura HELLENIC FERTILIZERS AND CHEMICALS ELFE s.a. The Greek Fertilizers Company (3/5) Two (2) Sulphuric Acid Plants (total capacity MTPY), one using HUGO PETERSEN and the second DAVY McKee technology Three (3) Compound (NPK) Fertilizers Plants (total capacity MTPY). Two plants are using PEC technology/TVA process and the third is using UHDE – STAMICARBON technology Ammonia sphere (nominal capacity MT, usable MT) Atmospheric pressure Ammonia tank (capacity MT) (UHDE design) Four (4) turbogenerators (installed power 21,218 MW) Various facilities for storage of raw materials and final products Two (2) bagging stations for NPK's and AN/CAN fertilizers respectively Autonomous private port for loading/discharging final products and raw materials

7 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 7 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura HELLENIC FERTILIZERS AND CHEMICALS ELFE s.a. The Greek Fertilizers Company (4/5) Operation Overview

8 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 8 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura HELLENIC FERTILIZERS AND CHEMICALS ELFE s.a. The Greek Fertilizers Company (5/5)

9 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 9 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: THE ENERGY SYSTEM NATURAL GAS (1/3) 9 NG AS RAW MATERIAL FOR AMMONIA PRODUCTION PLANT (~95%) NG AS FUEL FOR NPK PRODUCTION PLANTS (~ 5%)

10 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 10 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura 10 The Fertilisers Sector is an energy intensive one (ELFE’s electricity consumption ~ MWh/yr) 4 turbogenerators installed (~22MW) High Efficiency cogeneration from waste heat (waste heat from exothermal chemical reactions without using fuel) Annual Electrical and Mechanical Secondary Energy Production ~ 750 TJ Annual Thermal Secondary Energy Production ~ 1200 TJ Annual Primary Energy Saving ~ 4000 TJ ELFE: THE ENERGY SYSTEM ELECTRICITY (2/3)

11 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 11 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: THE ENERGY SYSTEM THERMAL AND ELECTRICAL ENERGY (3/3) TYPICAL THERMAL AND ELECTRICAL ENERGY BALANCE

12 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 12 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: Basic and On-going Energy Saving Measures (1/3) Installation of a Cogeneration unit (Thermal and Electrical energy) since 1965 (between the first cogeneration unit in operation) using waste heat from Sulphuric Acid Production Unit. Progressively, energy saving investments focused on reduction of primary energy use New ammonia plant installation, using as raw material NG instead of oil, with a very low specific energy consumption (among the 10% of the most efficient plant of the world), including cogeneration unit

13 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 13 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: Basic and On-going Energy Saving Measures (2/3) The old sulphuric acid plant replaced by a modern one with a higher energy saving efficiency Installation and operation of 3 additional turbogenerators (saving the 2/3 of electricity used and about 100% of thermal energy used) Installation and operation of a turboset (machine train) using the off gas and the waste heat from Nitric Acid Production Plant producing significant amount of mechanical energy and saving primary energy

14 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 14 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: Basic and On-going Energy Saving Measures (2/3) …… (lot of common energy saving investments e.g. recycling condensates from the process, saving steam from blow down water of boilers, installing economizers etc.) An Energy Management System according to ISO 50001:2011, including all the industrial activities of ELFE’s Complex, will be finalised and certified by an accredited Certification Body, in the near future

15 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 15 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: The high efficiency cogeneration Unit Simplified Diagram (1/4)

16 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 16 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: The high efficiency cogeneration Unit Calculations (2/4) Fc=0, THERMAL EFFICIENCY >>80% Fc=0, ELECTRICAL EFFICIENCY >> 80% Fc=0, PESR=1 PRIMARY ENERGY SAVING = 100%

17 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 17 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: The high efficiency cogeneration Unit The basic equipment (3/4) G2 turbogenerator The turboset (machine train)

18 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 18 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: The high efficiency cogeneration Unit The basic equipment (4/4) G3 turbogenerator G1 turbogenerator G4 turbogenerator

19 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 19 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura ELFE: Legislative difficulties in energy saving 1.Excise Duty in NG used as Raw Material (must be excluded according to EC Directive) 2.Extremely high comparative price of NG (above the mean value in Europe) 3.Excise Duty, RES and taxes applied to the own produced electricity (provision for exclusion according to EC Directive) 4.High comparative price of electricity from the grid 5.Absence of State Aid for CO 2 cost from indirect emissions (Norway, UK, France, Belgium, Germany etc. have already proceed on)

20 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 20 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura Conclusions A. HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. is the last Greek fertilisers producer which -investes in energy saving since the beggining of its operation -applies the Best Available Techniques in energy saving B.Although ELFE achieves very attractive energy performance indicators, the company suffers from Excise Duties, RES and Taxes in energy due to the governmental legislation C.The European countries recognising the importance of energy adopted the principles of a common policy for NG and electricity and applied measures for supporting the industrial sector. Relatively masures have to be adopted by the Greek government in the framework of European competition rules.

21 HELLENIC FERTILIZERS AND CHEMICALS ELFE S.A. 21 H.A.C.I. “Energy Efficiency Management in Chemical Industry Sector”, Thessaloniki 2 nd of June 2014 Dr. Th. Kouloura THANK YOU ELFE is not only an industrial complex ….. … following BAT and producing energy from waste heat … … ELFE is the only Greek fertilizers Company, producing and exporting high quality competitive products.