1. Energy Efficiency Analysis Gerdau – St. Paul Intern: Daniel Sundberg MnTAP Advisor: Mick Jost Gerdau Advisor: Richard Elkins

2. Company Overview Global Steel Manufacturing Company Began Operations in 1901 Operates in 14 Countries Worldwide Largest Producer of Long Steel in the Americas Leader in Steel Recycling in North America Strong Mission and Values

3. Company Overview Saint Paul, Minnesota – Steel Mill Shredder Melt Shop Roll Mill / Reheat FurnaceEnd Product

4. Motivations for Change Utility Rates are Rising Sustainability Concerns Pollution Reduction Quality and Reliability Remain Competitive

5. Approach Work with Employees to Determine Areas of Possible Improvement Gather Process Data Research More Efficient Options Quantify Savings Potential Determine Implementation Costs Relay Results and Attempt to Move Forward

6. Projects Electrical Savings Water Savings Natural Gas Savings Waste Reduction

7. Combustion Air Supply Electrical ReductionReheat Furnace

8. Combustion Air Supply (cont.) Electrical ReductionReheat Furnace Current Proposed

9. Shear Clutch Cooling Electrical ReductionShear Unit

10. Shear Clutch Cooling (cont.) Electrical ReductionShear Unit

11. Compressor Intake Air Electrical ReductionMain Compressor

12. Compressor Intake Air (cont.) Electrical ReductionMain Compressor

13. Compressor Cooling Water ReductionMain Compressor

14. Compressor Cooling (cont.) Water ReductionMain Compressor

15. North Ladle Pre-Heater Natural Gas Reduction Ladle Pre- Heaters

16. North Ladle Pre-Heater (cont.) Natural Gas Reduction Ladle Pre- Heaters

17. Leak Testing Waste ReductionGas Systems

18. Leak Testing (cont.) Waste ReductionGas Systems Proposed System –Prioritize Leak Fixes –Install Leak Testing Solution Stations Estimated Cost ~ $1,000

19. Summary Recommendation Annual Reduction Annual Savings Payback Period Status Install VFD Units on Combustion Air Fans 640,000 [kWh] $49,0001.6 YearsRecommended Install Electric Blower for Shear Clutch Cooling 94,000 [kWh $6,8002.8 YearsRecommended Duct Cooler Air to Main Compressor 78,000 [kWh] $5,6009 MonthsRecommended Install Dry Cooler for Compressor Cooling 3,100,000 [gallons water] $19,7003.9 YearsRecommended Install Recuperator on Ladle Pre-Heater 82,000 [therms] $43,5003.2 YearsRecommended Fix Identified Gas Leaks$9,800ImmediateCompleted

20. Additional Analysis Required Post Heater Process –Possible Temperature Control Shredder Motor Idle Avoidance –Motor Shutdown

21. Personal Benefits Communication Skills Experience in an Industrial Setting Gained Knowledge through Real-World Engineering Problems Experience Writing Reports

22. Questions?