Environmental and Financial Evaluation of

Opportunities for Electrical Energy Conservation in a

Petroleum Refinery

Lamiaa Abdallah Tarek El-Shennawy

Alexandria Higher Institute of Engineering & Technology Alexandria National Refinery & Petrochemicals Co.
Alexandria, Egypt Alexandria, Egypt
Lamiaa_Abdallah@yahoo.com tshennawy@yahoo.com

Abstract—Egypt is facing challenges concerning energy, economy
and environment that can threaten its vision for development by
2030. Industry in Egypt consumes about 27% of the electrical
energy, and this figure is expected to increase each year due to the
planned development goals. This imposes a huge burden on the
electricity sector to build new power plants each year to match the
rising demand, with more and more foreign currency crisis and
environmental impacts. Energy prices are rising each year and this
will impose another burden on industries in a very competitive
world. Some energy efficiency opportunities are presented based
on the best available technologies in the developed countries.
These opportunities are examined on financial and environmental
basis. They are prioritized financially according to the shortest
payback period and environmentally according to the largest CO2
quantity not emitted to the atmosphere because of applying such
solution. The electrical loads of a refinery in Alexandria, Egypt is
taken as a case study to illustrate the procedure with real data.
Installing VSDs to motor loads and replacing standard motors
with higher efficient ones are superior solutions from both
perspectives, followed by switching outdoor lightings to LED.
Installing PV solar systems is a good solution from the
environmental view; however, this solution has a long payback
period. Applying the proposed procedure in industry can decrease
Egypt’s needs to build new power plants, save foreign currency
needed to import fuels, cut CO2 emissions and reduce energy bills
to the individual industries.
Index Terms—Energy Management, Energy Conservation,
Energy Audit, Financial Evaluation, Environmental Evaluation,
CO2 Emissions.
B. Industrial Energy Efficiency in Egypt
Egypt announced its 2030 Vision in March 2016. Energy is
the main driver for the planned vision [3]. To achieve its goals
of development, Egypt is building new power plants to reach 80
GW of generating capacities (now 45 GW as of October 2018).
This imposes a huge burden on the electricity sector to build new
power plants each year to match the rising demand, with
increased foreign currency crisis and environmental impacts [4].
Industry is responsible for 27.4% of Egypt’s electricity
consumption in the fiscal year 2016-2017, as shown in Fig. 1
[5]. Energy efficiency has always been a low priority of the
industry due to relatively low energy prices supported by
subsidies, and preference for cheap initial cost equipment. The
final energy consumption per unit of output (i.e. specific energy
consumption) in the most important industries of Egypt is 10 to
50% higher than the international average. In other words, the
Egyptian industry could have produced the same output with
almost 10 to 50 % less energy [6]. Improving energy efficiency
in industry represents a significant opportunity for energy
savings as a way to bridge the gap between expected energy
demand and energy supply in the country and could be a key
player for Egypt’s action plan to achieve its 2030 goals [7].

I. INTRODUCTION
A. Global Concerns of Energy & Environment
In September 2015, the United Nations (UN) adopted 17
Sustainable Development Goals (SDGs) to mobilize efforts to
end all forms of poverty, fight inequalities and tackle climate
change by 2030. Goal 7 is specifically about providing clean and
affordable energy to all [1].
Following the declaration of the SDGs, the 21st Conference
of the Parties (COP21) established the Paris Agreement in 2015
to address the urgent challenge of global climate change, Fig. 1. Egypt Electricity Consumption (2016-2017).
presenting concrete plans and targets for climate change
mitigation and adaption actions by 2030 [2].
C. Environmental Impact E. Apply Organization’s Constraints
The energy mix for generating electrical energy in Egypt Each organization may have certain constraints such as
during the fiscal year 2016-2017 is shown in Fig. 2. About 91% funding problems (limit the application of high investment
from the total energy generated is from fossil fuel (natural gas projects), need to comply with laws (prefer environmental
and oil), 8% from hydropower and 1% renewables [5]. projects even if not economically feasible), time zone limit
Approximately 50% of CO2 emissions in Egypt (112,000 (prefer projects with short implementation period), etc.
tons of out of 227,000 tons) are from the electricity generation
sector. The emission rate of 0.6 kg CO2 / kWh of energy due to
the current energy mix in Egypt is reported. This means that for
every 1 kWh of energy saved, an equivalent 0.6 kg of CO2 will
be reduced [8].
Egypt is identified as one of the most vulnerable regions to
climate change such as sea level rise, temperature rise, alteration
of weather patterns, fresh water resources evaporation, and
agricultural crop deficiency. A rise in sea levels, perhaps the
most direct effect of global warming, can have drastic effects on
Egypt’s coastal cities and the densely populated agricultural Nile
Delta. Alexandria for example, is one of the cities most
threatened from rising sea level [9].
D. Work Motivation Fig. 2. Energy mix in Egypt (2016-2017).

Alexandria National Refining and Petrochemicals

Company (ANRPC) is one of the largest refineries in
Alexandria, Egypt. The company aimed to apply an Energy
Management System (EnMS) as per ISO 50001:2011 Standards
[10]. The company signed a memo of cooperation with
Alexandria higher Institute of Engineering and Technology
(AIET) to conduct a preliminary (first stage) energy audit
together with the company’s energy team. The energy audit
should conclude with recommended opportunities for energy
conservation. This paper is the first part of this report, focusing
on electrical energy. The second part of the report, focusing on
thermal and mechanical energy will be presented in another
paper. The joint research group had conducted an energy audit
as discussed in [11-12].
II. PROPOSED PROCEDURE
A. Data Collection & Energy Review Figure 3. ANRPC Production Units (part).
Data of interest shall include as a minimum the electricity
bills for at least 12 months, electricity contract, load analysis
including motors, lighting, air conditioning, electric heaters,
office equipment and other loads.
B. Identification of Energy Conservation Opportunities
Based on the collected data and benchmarking with best
available technologies in similar industries, a list of energy
conservation opportunities should be prepared.
C. Energy (Environmental) Evaluation
Each opportunity will be evaluated in terms of energy saving
and its equivalent CO2 reduction. Opportunities with high
energy saving will be assigned a high priority.
D. Financial Evaluation
Each opportunity will be financially evaluated using simple
Pay Back Time (PBT). Opportunities with shorter PBT’s will be
assigned a high priority. The price of the replaced (old)
equipment is considered to be zero. Figure 4. ANRPC Administrative Building.
 III. CASE STUDY Almost 95% of the motor life cycle costs are attributed to
Alexandria National Refining and Petrochemicals Company energy costs. Only 5% of the total costs are due to initial
(ANRPC) is one of the largest refineries in Alexandria, Egypt. (purchasing) cost plus maintenance costs.
The company started production in 2000. Part of the production Standards define three energy efficiency classes for motors:
units is shown in Fig. 3, and the company’s administrative Standard efficiency, High efficiency, and Premium efficiency.
building is shown in Fig. 4. Premium efficiency motors are more expensive than other
The petroleum refining industry is providing inputs to motors, but it payback its investment in months [14].
virtually all economic sectors, including the transportation 2) Install Variable Speed Drives (VSDs) to motors with
sector and the chemical industry. Refineries typically spend 30% variable loads
to 50% of cash operating costs (i.e., excluding capital costs and Variable Speed Drives (VSDs) are electronic devices that
depreciation) on energy. Energy is a major cost factor and an match the speed of the motor to the driven machinery, as shown
important opportunity for cost reduction. Energy use is also a in Fig. 5. Typical applications that benefit from a VSD include
major source of emissions in the refinery industry, making most fans and pumps. This application is perfect for varying
energy efficiency improvement an attractive opportunity to loads or loads working in the range of 50% ~ 80% of its normal
reduce emissions and operating costs [13]. power. Less than 50% loading means that the motor is much
A. Data Collection & Energy Review oversized and it is better to downsize the motor. More than 80%
The load pattern differs largely from production units to loading will gain little saving, as shown in Fig. 6.
administrative buildings. The production units work 24 hours According to the Affinity Laws of the hydraulics, the flow is
per day, 7 days per week with non-stop policy except for an directly proportional to the speed, the pressure is directly
annual shutdown of 15 days for major maintenance activities. proportional to the square of the speed and the power is directly
Almost 80% of loads in the production units are motor driven proportional to the cube of the speed. Therefore, if the motor
loads. 10% of the loads are heating and furnace loads and 10% runs with 70% of its speed (using VSD), then the power will be
are for outdoor lighting and other loads. (0.70)3 or 34% its rated power [15].
Almost 70% of the motors and outdoor lighting fixtures in There are also several air coolers (fans) with anopportunity
the production areas of are Explosive Proof (Ex), since they are of installing VSDs to control the airflow temperature and to save
located in hazardous areas. Only 30% are located in safe areas energy.
like water treatment units, boilers, cooling water towers and
other utilities. Ex equipment cost several times that of normal
equipment. Ex equipment will not be included in this initial
energy conservation plan. However, these opportunities are
reserved for new projects where the choice can be made between
Ex standard equipment and Ex energy-efficient equipment. In
such comparisons, the capital (purchase) cost should not be the
only factor when taking the decision of purchasing. Instead, a
Life Cycle Analysis (LCA), a Total Cost of Ownership (TCO)
or any other similar approach should be used.
The administrative buildings exhibit a completely different
pattern; the building works 8 hours per day from 7.30 am to 3.30
pm, 5 days a week. The building is shutdown during weekends
and national and religious vacations. The effective operating
hours of the building are in the range of 2000 hours annually. Fig. 5. Variable Speed Drive (VSD).
The HVAC loads consumes about 40% of the building energy,
the indoor lighting consumes about 30% of the energy and the
office equipment and other loads consume the remainder 30%.
Starting from July 2018, the price of 1 kWh of electrical
energy is approximately 1 L.E. The annual electricity bill of the
company is in the range of 120 Million L.E. The exchange rate
is 1 USD = 18 L.E. approximately.
B. Identifying Energy Saving Opportunities
1) Replace old non-efficient motors with high efficient ones
Most motors are installed in 1999 (and probably
manufactured before that). They have efficiencies below 90%.
They represent a good opportunity for energy saving by
replacing these motors near the end of their life (after
approximately 18 years of operation) by new motors of higher
efficiencies. Fig. 6. Affinity Laws and power saving due to VSD.
 3) Replace outdoor lighting lamps with LED
Outdoor lighting consists of Ex flora lighting fixtures (250
Watt) in production units and normal flora lighting fixtures in
safe areas. Street lighting fixtures contain sodium lamps (400
Watt). These lights are controlled with photocells or timers. On
average, they work 12 hours daily (4400 hours annually).
LED Lighting Technology had emerged in the last years,
with large opportunities for energy saving. Extra benefits
include higher life intervals. LED lifetime is 30,000 ~ 50,000
hours compared to 4,000 ~ 8,000 hours of conventional lamps
[16].
4) Replace indoor lighting fixtures in the administrative
building with LED panels
The administrative building contains indoor fluorescent
lighting fixtures. Each fixture contains 4*20 Watt fluorescent
tubes. The power of the lighting fixture is 80 Watts. The annual
working hours are approximately 2000 hours.
LED technology can play a key role in replacing fluorescent
lamps or fixtures with new LED tubes or panels.
In addition to longer life of LED tubes or panels compared
to fluorescent lamps, LED lamps are free from mercury and are
thus environmentally friendly. No special requirements are
needed when disposing LED tubes or panels as compared to
fluorescent lamps [17].
5) Install Photo-Voltaic (PV) Solar System at the rooftop of
the administrative building
Photo-Voltaic (PV) solar systems convert sunlight into
electric power. The generated power is dc, hence, we need an
inverter to invert this dc power into ac. In addition, to produce a
sufficient amount of solar power, we need to connect several
panels together and charge controllers are required to adjust the
currents and voltages before this connection.
There are several methods for utilizing solar power [18]:
i) Grid-tied (on-grid), where the generated power from the
solar system is used to supply part of the facility power and the
electricity grid of the electricity company will supply the other
part. In this case, we do not need batteries. This system is useful
for facilities already connected to the grid and to administrative
buildings that do not work at night.
ii) Stand-alone (off-grid), where the generated energy from
the solar system is stored in dc batteries and then inverted to ac
at night to supply the customer loads. Here we need batteries
(with additional cost to the system). This system is suitable for
facilities that are far from the electricity service.
iii) Hybrid system, where we can use the on-grid system
equipped with batteries, such that the energy stored in the
batteries can supply part of the load during power failures. This
is the most expensive system.
Photo-Voltaic (PV) solar systems can supply part of the
building loads during the shining envelope, which coincides
with the working time. The net area of the rooftop of the building
(after subtracting the areas occupied by services) is 200 m2. For
generating 1 kWh of solar energy, we need 10 m2. Therefore, the
available area can host a 20 kW solar station. We can install the
grid connected type of solar systems (without batteries) since
there is no need for lighting during night times, and also to
reduce the cost of the solution.
C. Evaluating Opportunities
Opportunity (1):
The plant contains more than 300 motors, ranging from 0.25
kW and up to 2500 kW. We will take an example to replace a
mid-size 37 kW motor (90% efficiency) with high-efficiency
motor (95% efficiency)
- The motor runs with 70% loading
- Input power = 0.70*37/0.90 = 29 kW.
- The motor works 8400 hours per year.
- The annual consumed energy = 242,000 kWh
- The annual cost of energy = 242,000 L.E. (~13,400 USD)
- The new motor will cost 2,000 USD.
- Input power = 0.70*37/0.95 = 27 kW.
- The annual consumed energy = 229,000 kWh
- The annual cost of energy = 229,000 L.E. (~12,700 USD)
- The annual energy saving = 13,000 kWh
- The annual CO2 reduction = 7.8 ton
- The annual money saving = 700 $
- PBT = 3 years.
Opportunity (2):
Motors with variable loads include most fans and some
pumps. Again, we will choose a mid-size 37 kW motor (similar
to the above motor) and install a VSD to control its speed.
- Cost of VSD (with control panel) = 10,000 USD.
- The input power = (0.70)3*37/0.90 = 14 kW.
- The annual consumed energy = 118,000 kWh
- The annual cost of energy = 118,000 L.E. (~6,600 USD)
- The annual energy saving = 124,000 kWh
- The annual CO2 reduction = 75 ton
- The annual money saving = 6,800 $
- PBT = 1.5 years.
Opportunity (3a):
Production units contain more than 1000 Ex flora lighting
fixtures (250 Watt) and about 400 normal flora lighting fixtures
(250 Watt). We will replace 100 of these lighting fixtures with
equivalent LED Fixtures (70 Watt) that give the same lumens.
- The cost of 100 LED fixtures is 20,000 USD.
- The power saving from 100 fixtures = 100 * 180 = 18 kW.
- The annual energy saving from 100 fixtures = 18 kW *
4400 hours = 80,000 kWh
- The annual CO2 reduction = 48 ton
- The annual money saving = 80,000 L.E. (4,400 $)
- PBT = 4.5 years.
Opportunity (3b):
The company has more than 400 street lighting fixtures with
sodium lamps (400 Watt). We will replace 100 of these fixtures
with equivalent LED Fixtures (160 Watt).
- The cost of 100 LED fixtures is 20,000 USD.
- The power saving from 100 fixtures = 100 * 240 = 24 kW.
- The annual energy saving from 100 fixtures = 24 kW *
4400 hours = 106,000 kWh
- The annual CO2 reduction = 64 ton
- The annual money saving = 106,000 L.E. (6,000 $)
- PBT = 3.5 years.
 Opportunity (4): TABLE I. FINANCIAL RANKING.
The administrative building contains some 800 recessed
Capital PBT
fluorescent lighting fixtures. We will replace 100 of these Rank Opportunity
Cost ($)
fluorescent fixtures (80 Watt) with LED panels (40 Watt) that 2) Installing VSD to a 37 10,000 1.5 years
give the same lumens. 1 kW motor (with
- The cost of 100 LED panels is 5,000 USD. cabinet, . . .)
1) Replacing 37 kW motor 2,000 3 years
- The power saving from 100 panels = 100 * 40 = 4 kW. 2
with high efficient one
- The annual energy saving from 100 panels = 4 kW * 2000 3b) Replacing 100 street 20,000 3.5 years
hours = 8,000 kWh 3
lighting fixtures with LED
- The annual CO2 reduction = 4.8 ton 3a) Replacing 100 outdoor 20,000 4.5 years
4
- The annual money saving = 8,000 L.E. (450 $) lighting fixtures with LED
- PBT = 11 years (not feasible). 5) Installing on-grid PV 20,000 10 years
5
solar system (20 kW)
Opportunity (5): 6
4) Replacing 100 indoor 5,000 11 years
lighting fixture with LED
Install an On-Grid Solar System
- The cost of 20 kW solar system (panels, inverter,
installation, etc. (without batteries)) = 20,000 $.
TABLE II. ENERGY SAVING RANKING.
- Annual energy saving = 20 kW * 6 hours per day * 300
sunny days per year = 36,000 kWh. Annual Annual CO2
- The annual CO2 reduction = 21.6 ton Rank Opportunity kWh not emitted
- Annual money savings = 36,000 LE (2000 $) saving
- PBT = 10 years (not feasible). 2) Installing 2 VSDs to 37 kW 248,000 150 ton
1
motors (with cabinets, . . .)
IV. RESULTS & DISCUSSION 1) Replacing 10 standard 37 130,000 78 ton
2 kW motors with higher
Opportunities that have relatively short PBT include efficient ones
replacing motors with higher efficiency ones (opportunity 1) and 3
3b) Replacing 100 street 106,000 64 ton
installing VSD (opportunity 2) and replacing outdoor lighting lighting fixtures with LED
3a) Replacing 100 outdoor 80,000 48 ton
fixtures with LED (opportunities 3a and 3b). 4
lighting fixtures with LED
Opportunities that involve messages to the stakeholders and 5) Installing on-grid PV solar 36,000 21.6 ton
the employees of the company concerning the top management 5
system (20 kW)
commitment towards energy saving and protecting environment 4) Replacing 400 indoor 32,000 19.2 ton
6
sound attractive to the top management, although these lighting fixture with LED
opportunities have a relatively long PBT. Opportunities that fall
in this category include replacing indoor fluorescent lighting V. CONCLUSIONS
fixtures with LED (opportunity 4) and installing PV solar system In this paper, several opportunities for improving the
(opportunity 5). electrical energy efficiency in industry are presented and
For normalization purposes when evaluating energy saving evaluated. A procedure is proposed that is based on economic
and environmental benefits, a capital cost of 20,000 USD is and environmental aspects of energy conservation methods and
taken as a Lowest Common Multiple (LCM) value. With this prioritize them according to both aspects. The electrical loads of
amount, we can: a refinery in Alexandria, Egypt, is taken as a case study to
- Install two VSDs to motors with variable loads examine the effectiveness of the procedure. The results are
- Replace ten 37 kW motors with higher efficient ones easily presented to the decision makers. The procedure can be
- Replace 400 indoor fluorescent fixtures with LED panels. applied to almost all industries. Installing VSDs to motor loads
Table I summarizes the results of the money saving and replacing standard motors with higher efficient ones give
(financial) analysis, whereas Table II summarizes the results of excellent results, followed by replacing outdoor lightings in
the energy saving (and environmental) analysis. It can be process area and in street lighting to LED. Installing PV solar
deduced from the tables that: systems sounds environmentally good; however, this solution
- Opportunities involving motor loads are very attractive has a long payback period and is not feasible from the financial
from both financial (money saving) and environmental (energy perspective. Replacing indoor lighting fixtures to LED panels
saving) aspects. may communicate the message effectively, although not feasible
- Replacing outdoor lighting loads, although of lower financially. Applying the proposed procedure in industry can
ranking, yet still attractive from both financial and decrease the country’s needs to build new power plants, save
environmental aspects. foreign currency needed to import fuels, can reduce CO2
- Replacing indoor lighting and installing PV solar panels emissions and can reduce energy bills to the individual
are not feasible. However, the company may implement such industries, making them competitive and profitable.
projects to show its commitment to energy conservation and to
environmental protection.
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