PROJECT PROPOSAL

Energy Assessment for Thiess Coal

Mining Utilities and Operational
Facilities

Prepared to:
PT.Thiess
PT.Thiess Contractor Indonesia

Prepared by:

PT Energy Management Indonesia (Persero)

July, 2015
 Project Proposal
Energy Assessment for Thiess Coal Mining Utilities and Operational Facilities 1-10

Company Services
At a Glance

PT Energy Management Indonesia (Persero), founded in 1987 as PT

KONEBA (Persero) a state-owned company, was established with the intention
of actively contributing in the government’s program of conserving energy
through the provision of consultancy services in the whole sectors of energy
related, such as; Industries, Power Plant, Mining, Buildings/Commercials,
Transportations, etc.

PT EMI (Persero) combines its technical staff’s industrial, manufacturing and

system engineering skills with measurement and assessment tools to provide
effective solution to energy related problems. It offers services, which range
from implementation of energy management system, feasibility studies for
energy conservation and diversification, retrofits or operational improvements to
detailed design, procurement, installation and project/risk management. The
company also provides, consulting, education and training services in energy
management and energy conservation technologies.

Serving a wide range of clientele with a view of enhancing energy utilization

efficiency in an environmentally acceptable manner, at present, PT. EMI
(Persero) become the only company in Indonesia with an extensive experience
and technical skills, good instruments and track record to provide energy
conservation, energy management and environmental protection services.

The company also has the ability to assemble experienced multi-disciplinary

teams to examine and perform all aspects of energy-oriented undertakings. It
associates with reputable local and foreign consulting firms and consultants in
providing comprehensive services. Its associates include Chiyoda, Imperial
Chemical Inc. (ICI), RCG Hagler and Bailly Inc., ASEAN-EC Energy Management
Training and Research Centre (AEEMTRC), Asian Institute of Technology (AIT),
Raytheon-Ebasco Overseas Ltd., PT. Citaconas, Mitsubishi Research Institute
(MRI), Asean Center for Energy (ACE), New Energy Development Organization
(NEDO), Japan Energy Conservation Center (JECC), KEMA Power Generation,
Japan International Cooperation Agency (JICA) and United Nations Economic
and Social Commission for Asia and the Pacific (UN-ESCAP), etc.

PT. Energy Management Indonesia’s track record of energy engineering services

can be tapped by industry and commerce to optimize productivity whilst
providing efficient and effective use of energy, which this aim is surely a catalyst
that will contribute to the enhancement of economic growth.

PT. Energy Management Indonesia (Persero) July 2015

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 Project Proposal
Energy Assessment for Thiess Coal Mining Utilities and Operational Facilities 2-10

1. Background
Predictions of energy shortages and the realities of recent increases in fuel cost
have brought the country to the immediate need to conserve energy and to
expand the domestic energy base. In order to manage this successfully, the
Government has been released several law and regulations, i.e; Keppres No.43
Tahun 1991, about energy conservation; Inpres No.10 Tahun 2005, about
procedures to implement energy conservation; Perpres No. 5 Tahun 2006,
about National Energy Policy; UU. 30 Tahun 2007 article 25, about responsibility
of central and regional Government for the implementation of Energy
Conservation Program and also Government incentive and disincentive.

Following those national energy policy and regulations, Thiess Indonesia as one
of a subsidiary Thiess Pty. Ltd., has an energy management program which is
committed to develop plan regarding various efforts to manage energy
utilization by conserving energy and also to reduce emission for each
operational facilities and energy utilities.

Energy Assessment for Thiess Coal Mining Utilities and Operational

Facilities is intended to guide the company in identifying energy conservation
opportunities and appropriate methods in developing the strategic framework
for feasible implementation. By performing energy assessment/audit, it could
also find emission reduction opportunities inline with company’s green house
gas program.

2. Aim and Objectives

The aim of this assessment is to identify where and how much energy is
facilitated and used in each facilities, what is the characteristics of plant energy
supply and utilization, how is the performance of main production equipment
and utilities, and the most of them is to determine energy saving opportunities
which is technically and economically feasible to implement.

The objectives of this assessment / audit are as follows;

1. Provide a clear mapping of plant energy supply and utilization through

developing an energy cost center and distribution structures.
2. Define specific facilities in production area and utility area which is
consumed more energy than other areas.
3. To get an actual data by measuring several parameters that is representing
equipment’s and system’s performance or efficiency.

PT. Energy Management Indonesia (Persero) July 2015

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 Project Proposal
Energy Assessment for Thiess Coal Mining Utilities and Operational Facilities 3-10

4. To observe and evaluate the present situation of the plants in regards with
energy consumption, process efficiency or performance and emission
reduction opportunities.
5. Provide options based on a set of feasibility criteria and select the most
promising options for implementation.
6. Provide recommendations and action plans in order to optimize energy
utilization and plant efficiency, and therefore also reducing emission rate
for mining operating facilities by implementing energy conservation and/or
diversification, and possibility to recover energy waste.

3. Scope of Work
The energy assessment/audit scope of work shall include, but not limited, to
activities as follow:

3.1 Walkthrough/Preliminary Survey:

Conduct interview and collecting general information

(questionnary interview), including;
 Plant and Facility description,
 Rate of mining production
 Raw material and Production description,
 Design data for major energy consuming equipments, i.e.; motor
driven devices, heavy vehicles, power generator, prime mover,
other heat consuming and producing devices, etc.,
 Existing energy management procedure and systems.

Identify and collect actual process and production data,

including;
 Actual raw material utilization recorded (daily, monthly and
yearly report),
 Actual process and production recorded (daily, monthly and
yearly report),
 Existing operation and maintenance procedure,
 Actual parameters of major process and production equipment
by conducting on-site measurement (load survey,etc.).

Identify and collect utilities data, including;

 Utilities supply and utilization characteristics (electrical, heat,
water and compressed air),

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 Project Proposal
Energy Assessment for Thiess Coal Mining Utilities and Operational Facilities 4-10

 Actual utilities operation recorded (daily, monthly and yearly),

 Existing utilities operation and maintenance procedure and data
recorded,
 Actual parameters of major utilities equipment, by conducting
on-site measurement (load survey,etc.).

Data Verification and Discussion;

 Analyzed the collecting data and make an appropriate
verification,
 Conduct a discussion with counterpart.

Conducting data analysis, including;

 Analyzed the collecting data to determine the plant energy
waste/lossess,
 Analyzed energy waste/lossess from major process and utilities
equipment,
 Determine energy conservation and/or diversification
opportunities (in general),
 Classified and summarizing the ECO’s based on techno-economic
pre-feasibility (in general),
 Determine which area and equipment/system have to be focus
for further detail assessment.

Reporting, Discussion and Presentation;

 Develop a preliminary energy assessment report,
 Conduct a discussion with counterpart team,
 Conduct a presentation for the preliminary assessment results.

3.2 Performing a Comprehensive Energy Assessment:

Completing Data at the Focus Areas/Equipments, including;
 Collecting more specific and actual data for each equipments and
system in the focus area or unit of production and/or utilities,
 Conduct a stationary measurement for total electricity
consumption in an appropriate days of operation,
 Conduct a comprehensive on-site measurement of specific
equipment performance and energy consumption in various
operation load in the focus area/unit,
 Collecting a complete process/production data recorded during
measurement,

PT. Energy Management Indonesia (Persero) July 2015

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 Project Proposal
Energy Assessment for Thiess Coal Mining Utilities and Operational Facilities 5-10

 Identify and measures the idle running of process/production

hour by hour operation,
 Identify the operating procedure of idle running equipments,
 Identify and measures the specific energy consumption for each
focus production areas and equipments,
 Identify and measures the specific energy consumption for each
focus utilities areas and equipments,
 To provides a criteria of measures which improvements could be
implemented.

Data Verification and Discussion;

 Analyzed the collecting data and make an appropriate
verification,
 Conduct a discussion with counterpart.

Comprehensive Analysis, comprising of;

 Comprehensive analysis for plant energy performance and
energy management,
 Comprehensive energy conservation analysis in focus process /
production and/or utilities, mainly in mining area
 Comprehensive energy performance analysis for identified
process / production and/or utilities equipments or systems,
 Determined the list of feasible energy conservation and/or
diversification potentials,

Recommendations, comprising of;

 Provide recommendations on energy conservation and/or
diversification for plant improvement planning program,
 Provide recommendations on energy management system for
company management planning program.

3.3 Reporting and Presentation:

Data Collection and Measurement Report,
Preliminary Report,
Draft Final Report,
Presentation,
Final Report.

PT. Energy Management Indonesia (Persero) July 2015

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 Project Proposal
Energy Assessment for Thiess Coal Mining Utilities and Operational Facilities 6-10

4. Outcomes
Expected outcomes from the energy assessment/audit followed by energy
management programs, primarily are as follows:

4.1. Establish energy intensity baseline and other key performance

indicator (KPI) of plant energy utilization,
4.2. Plant energy and cost intensity reduction, with a similar reduction in
baseline greenhouse gas emissions,
4.3. Develop energy criteria (measures) to identify and evaluate poor
performing facilities for immediate improvement,
4.4. List of energy conservation recommendations which is comprising of;
a. Energy conservation and cost saving that can be achieved with
little or no capital expenditure,
b. Energy conservation and cost saving with intermediate or high
capital expenditure.
4.5. Energy management improvement recommendations, which is
including; structures, procedures, energy accounting, energy
monitoring, and energy reporting.

5. Specific Methodology
The methodology used for a coal mine energy assessment or analysis would be
as shown below, with the example given is generally for an open cut coal mine
(also almost similar with underground coal mine):

5.1. Establish and examine general trends in energy usage for each energy
type (electricity and fuel) over the previous time of operation (one to
three years), and relate this usage to coal production and BCM
movement using statistical techniques.

5.2. Evaluate the energy usage for each major energy consuming process.
This activity will involve on-site measurement, relating energy usage to
production on a process basis and highlighting energy inefficiencies.

The processes to be evaluated include; above ground draglines

operations, diesel powered hydraulic backhoes, conveying of coal,
overburden and coal transport by truck, coal preparation, lighting,
compressed air, pumping, stockpiling and train loading, and
workshop / office / bathhouse energy systems; below ground
continuous miners and shuttle cars operations, mobile crushers,
armoured face conveyors, underground pumping, diesel man and

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 Project Proposal
Energy Assessment for Thiess Coal Mining Utilities and Operational Facilities 7-10

materials transport, ancillary diesel equipment, e.g. u/g grader and

diesel powered front end loaders, ventilation fans, associated
workshop / office / bathhouse energy systems, and major surface
compressors.

5.3. Establish energy performance benchmarks for the mine(s), for major
items of plant and for individual processes at the mine(s). Identify
differences in these benchmarks in comparison with the benchmarks
which we have established at other coal mines and for similar
equipment and processes.

5.4. Establish energy targets based on the energy benchmarks, using both
best practice techniques and implementation of energy projects.

5.5. Identify areas of opportunity for improved energy efficiency and

productivity including strategies to reduce waste. Identify specific
projects, including efficient technologies where relevant. Quantify the
size of avoidable waste and hence saving in energy cost which are
possible through the implementation of energy management
strategies.

5.6. Provide full financial analysis of energy cost reduction projects

including reference to other parameters which may affect the decision
making process where relevant.

5.7. Other matters considered relevant to achieve energy efficiency, e.g.

the use of energy as a management tool, which could result in an
improved culture with a consequent valuable spin off into other areas;
improved productivity for individual mining machinery and equipment.

5.8. Recomendation based on the reduction potential level of each

equipment and refer to technical and financial criteria, recommendation
for improvement measure will be identified which cover alternative
measure to optimize operation, reliability improvement program.

The flowchart of energy assessment / audit methodology are shown in Figure-1.

PT. Energy Management Indonesia (Persero) July 2015

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 Attachment-8

FIGURE-1: ENERGY ASSESSMENT / AUDIT PROCEDURE

KICK OFF
MEETING

Pre-Energy Assessment

Preparation for The Plant Walkthrough Survey Preparation for Detail Energy Assessment

Define the boundaries of each area to be assessed
Define data to be collected
Prepare instruments devices related to the data to
be collected and measured
Prepare questionaire for interview
On-Site Data Collection & Measurement
Facilities general information, layout & metering
Major energy consuming devices data design &
operation (electrical motor, conveyors, pumps,
compressors, hauling, power station, & others)
Material handling/produc. data reports (hourly)
Energy usage & generation data reports (hourly)
On-site measurement on major energy devices.
Data Verifications
Data & information validations
Discussion with counterpart & verifications
Define the boundaries of each focus area to be
assessed
Define detail data to be collected
Prepare instruments & tools for comprehensive
measurement
Prepare on-site method/procedure for data
collection & measurement
Discussion with counterpart
On-Site Detail Assessment
Complete data collection for each focus area and
equipments to be assessed
Comprehensive measurement for each focus
equipments (with several operation loads)
Data management of operation & maintenance
Material & energy data reports (daily, monthly &
yearly)
Energy performance reports (daily, monthly &
yearly)

Data Analysis and Evaluation

Evaluation on the main energy consuming system
Analysed the plant material & energy balance
Evaluation on the plant energy intensity
Analysed major process & utility equipments specific
energy consumption
Analysed equipments actual data measured
Analysed the systems & equipments energy waste
Evaluation on energy saving opportunities
Evaluation on pre-feasibilities of potential energy
saving and/or diversification.
Recommendations for Detail Assessment
Detail Analysis and Evaluation
Evaluation on the main energy consuming system
Analysed the plant material & energy balance
Evaluation on the plant energy intensity
Analysed major process & utility equipments specific
energy consumption
Analysed equipments actual data measured
Analysed the systems & equipments energy waste
Evaluation on energy saving opportunities
Evaluation on pre-feasibilities of potential energy
saving and/or diversification.

P
Potential energy saving with no/low cost
Define the boundaries of each area to be
Potential energy saving with medium/high cost
assessed

P t Presentation & Reporting

Data & information validations

P Detail
Assessment?
yes

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