The developments on the energy market that have been set in train by the energy transition and amplified by Russia’s war of aggression against Ukraine are affecting the energy-intensive process industry so severely that energy savings and the associated improvements in efficiency are no longer just sound economic policy but, given the current energy supply situation, have become the decisive management factor. The exorbitant costs are forcing companies to act. The best-practice example of new energy management at Raffinerie Heide shows how strategic and operational considerations result in significant improvements – in respect of both the costs as original economic factor as well as CO₂ emissions and the associated issue of public reputation.

Natural gas is a key energy source that is required at Raffinerie Heide for the provision of electricity and process heat. Due to the dynamic market trend, natural gas prices in the first quarter of 2022 crossed the threshold of 100 euros per megawatt hour, thereby surging to three to four times the average level of previous years. In a parallel development, the prices for CO₂ certificates increased from 20 to over 80 euros per tonne of CO₂ emissions. Both price trends are having a major impact on the refinery’s margins.

The sustainable investment perspective was covered by the program’s first pillar: strategic energy management. Based on a top-down analysis, promising investment projects were identified and evaluated. For each project, the team of experts scrutinized a specific business case with price trends and funding options and analyzed both potential and feasibility. The evaluation was based on previously defined criteria and served as the basis for the introduction of potential solutions into the program.

The second pillar of the program covered operational energy management. To secure the maximum level of expertise, cross-functional energy management teams consisting of process engineers, advanced process controllers, production specialists and refinery experts from Horváth were set up. An agile approach to the task sharpened the focus and accelerated the implementation to the required speed. The optimal team was determined for each system-specific sprint. Based on production data, statistical evaluations were carried out to identify dependencies and find new states of equilibrium in respect of energy usage. Previously determined optimization measures were validated by operational trials. Once the optimizations had been confirmed in practice, the new insights and findings were firmly anchored in the production system. With this approach, measures were established in the organization for the long term.

In collaboration with the Horváth team, Raffinerie Heide was able to anchor energy management as a strategic element even more securely in the organization. The company managed to make significant savings even before the project was concluded. The success which quickly became apparent motivated the project team to plan further improvement measures and gave the project as a whole and all those involved in it the required visibility in the organization. The results achieved contributed to both the economic and ecological goals.

Thanks to the comprehensive support of Horváth – from the analysis and goal setting through to program development and implementation – our experts were free to focus one hundred percent on their own strengths. The project governance brought in and the project management also allowed us to use metrics to follow the achievement of our goals. The perspective from outside was especially valuable. We benefited from the fact that the Horváth refinery experts questioned old thought patterns, allowing us to follow new approaches.

Cross-functional teams queried the existing limit values that were blocking the optimization of our energy usage and put them to the test. Adapting the plant operation systems enabled us to exploit CAPEX-free potentials. The coaching offered by the Horváth refinery experts introduced our staff to new methods for identifying and realizing new savings potentials.

By adapting return flow conditions in columns or reducing oven temperatures, we optimized the energy consumption of individual systems without needing to make major changes to product exploitation structures. These kinds of savings were very quick to implement, at no expense and with long-term success to boot.

Together with Horváth we’re going to fill our program for the long term with projects and measures to ensure that we achieve our energy management program goal by 2030. This will allow us to stay competitive in the market.

About Raffinerie Heide

Raffinerie Heide GmbH is Germany’s northernmost crude oil refinery. On a site measuring 134 hectares, the company processes some 4.5 million tonnes of crude oil per annum. A good 70 percent of the crude oil is used to make fuel. A significant share of the petrol and diesel used in Schleswig-Holstein thus comes out of the company’s refinery. Raffinerie Heide also makes aviation fuel, the bulk of which is supplied to Hamburg Airport. Alongside fuel production, the refinery in Hemmingstedt also produces roughly 450,000 tonnes of petrochemical products annually.