ArcelorMittal (Dunkerque)
A very particular challenge
ArcelorMittal wanted to replace the ageing unit that used gases from iron and steel production to generate electricity on their Dunkirk site.
This involved increasing the energy and industrial efficiencies of the site whilst limiting pollution emissions and improving the environmental impact.
An adaptive solution
Two identical generating units, each with a generating capacity of 394 MWe and consisting of:
- a GT13 E2 type gas turbine, provisioned exclusively with natural gas,
- a boiler capable of burning the post-combustion gases from the Arcelor steel-making process and/or natural gas,
- a condensation steam turbine rated at 230 MWe,
- a 225 kV step-up transformer.
Tangible benefits
Flexibility
Greater flexibility is obtained by being able to burn gases from iron and steel production or natural gas or both at the same time. This is an effective method to adapt to the speed of production, thanks to the implementation of this genuinely "adaptive energy" solution.
Environment
The installation is particularly clean, allowing for the ArcelorMittal industrial gases to be treated with very few emitted pollutants.
Performance
An excellent rate of return is possible thanks to a particularly competitive and economic system producing a significantly cheaper KWe.
Economy
Risks are minimised and kept within upper limits because of the Tolling Contract signed between ArcelorMittal and GDF Suez Global Energy.
The total investment has been in the order of €450 million. The station was started up in the spring of 2005.
Nedstaal BV
Nedstaal BV: a partnership with GDF SUEZ Global Energy to manage energy risks
Located in Alblasserdam, to the east of Rotterdam, Nedstaal BV specialises in the customised production of high-strength steel for national and international customers. Nedstaal steel is used in the production of cars, trucks, ships, heavy machinery and power stations. Nedstaal celebrated its 70th anniversary in 2008.
The viewpoint of Reinier van Wijck, Manager Energy & Environment: “In these times of economic crisis, we need an exceptional energy partner to reduce the risks for our energy portfolio.”
Annual energy consumption:
- 160 GWh of electricity
- 20 million m³ of natural gas
The company is one of the main consumers of energy in the Netherlands.
Requirements
Given the volumes consumed and the daily movements on the energy market, risk management is playing an increasingly important role in buying energy. Faced with energy price volatility, Nedstaal was looking for a powerful strategic partner.
A new approach
Over the past two years, Nedstaal has become more professional in the way it purchases energy in order to adjust more accurately to its requirements.
Solutions
Nedstaal selected GDF SUEZ Global Energy as its
- supplier of electricity until 2011,
- supplier of gas until 2012,
- adviser on managing price risk,
- partner to guarantee energy supplies that are tightly geared to its consumption profile
The advantages of the partnership
“It is essential to stay abreast of movements in prices. GDF SUEZ Global Energy is flexible and provides us with customised work. We are able to obtain energy supplies in the most efficient way from them, based on our consumption at any particular moment,” states Reinier van Wijck.
Added value
Purchasing energy flexibly means being able to seize opportunities on the market to cover risks. “We need GDF SUEZ Global Energy to reduce the risks in our energy portfolio,” stresses Reinier van Wijck. “The economic crisis has changed our consumption profile considerably. Only by having a strong collaboration can we offset the effects. GDF SUEZ Global Energy is the partner that finds the right solutions.”
Managing the future
Nedstaal plans to intensify its collaboration, particularly in the area of energy savings. “We want to invest far more in sustainability. This is a major challenge for our sector, which is a primary industry. GDF SUEZ Global Energy can also play an essential support role in this area,” concludes Reinier van Wijck.
“Energy has become one of our main cost centres. This means that risks are involved. To control those risks, we examine ways of purchasing in the wisest way and at the best price. We try to take advantage of the most favourable times on the market.”
Reinier van Wijck
Manager Energy & Environment
Tata Steel
Tata Steel selects GDF SUEZ Global Energy for flexible and dependable energy supplies
The viewpoint of Bart Bartelds, Account Manager Energy: “Reliability of supply is vitally important for Tata Steel. So we were looking for strong partners in the gas and electricity sector.”
Energy consumption
The production process at Tata Steel releases large quantities of gas. This gas is then recovered and recycled in industrial processes and is also used for the production of electricity. Despite this, Tata Steel still needs to consume some 3 TWh of natural gas a year.
Requirements
Good environmental performance is a major part of the way Tata Steel operates, for its commitment to Corporate Social Responsibility and also to guarantee the continuity of the company. Modern production methods and the recycling of waste have made it possible to reduce the environmental impact significantly.
Over a period of 20 years, the company has reduced its consumption of energy for every ton of steel produced by almost 30%. Tata Steel is one of the world’s ten most economical producers of steel and aims to make savings of a further 15% between now and 2020.
Within this context, Tata Steel needed a partner that was not only a supplier of electricity and gas, but also an adviser on managing the environment and controlling price risk.
An evolving relationship
Tata Steel has been working for some time with GDF SUEZ Global Energy for the supply of electricity. New contracts were also signed recently for a large proportion of its gas supply requirements.
Solutions
Today, GDF SUEZ Global Energy partners Tata Steel in the following areas:
- Supply of electricity
- Supply of gas
- Technical support
- Advice in managing energy prices
The advantages of the partnership
The importance of supply reliability meant that Tata Steel had to go looking for strong partners in the gas and electricity sector. “By opting for GDF SUEZ Global Energy, we have selected a stakeholder with whom we are building a strategic cooperative relationship,” states Bart Bartelds.
Added value
Flexibility is essential. The supply of energy is now adjusted to fit in with the variable pattern of consumption that is characteristic of the IJmuiden site. The quality of processes at Tata Steel also depends on the reliability of energy supply.
Prospects for the future
Tata Steel requires tailor made solutions, support and advice from its collaboration with GDF SUEZ Global Energy. The aim is to help the company remain among the world’s best in the steel industry. In the opinion of Bart Bartelds, GDF SUEZ Global Energy is already contributing towards achieving that ambition.
Doubs paper mill
Doubs paper mill: the switch to natural gas with GDF SUEZ Global Energy
Located at Novillars, 10km from Besançon in eastern France, the Doubs paper mill annually produces 72,000 tons of unbleached recycled paper, for the manufacture of corrugated cardboard. It is particularly known for the production of 3.3m-wide rolls. The company has been part of the Belgian group SOENEN since 2009.
According to Eric Gravier, the Deputy Director, “GDF SUEZ Global Energy has also provided solutions that comply with our approach to environmental issues.”
Requirements
The Doubs paper mill, which mainly worked using heavy fuel, needed to convert its installations to natural gas, as part of its modernisation process, combining environmental concerns with economic interests.
Behind the request
Taken over in 2009 by the Belgian group SOENEN, the company had to think about changing energy following a request from the parent company, which uses natural gas in Belgium and which is aware of the economic and environmental benefits. Thus, in November 2009, the Doubs paper mill contacted GDF SUEZ Global Energy to ask for information and support with this process. The energy firm called on its experts to steer this project.
The contract for the supply of 170GWh per year was signed on 28th January 2010 to come into effect on 1st April. Compliance with this tight schedule and the adaptation of the offer to the company’s changing needs over the start-up period was possible due to the reactivity of the different subsidiaries and entities called upon, and their performance was the deciding factor.
The solutions
The Doubs paper mill opted for a combined gas/oil boiler and is thus able to operate with both types of energy. This technical solution gives it a great deal of flexibility.
The customer has also chosen a contract including an interruptibility clause, which authorises the supplier and/or carrier to reduce or temporarily interrupt gas deliveries, after a short period of notice. This kind of interruption could occur in the event of insufficient gas transport capacities (due to climatic conditions, network maintenance, incidents, etc.) or to maintain the balance between consumption and gas available. The customer receives compensation in exchange for their acceptance of this clause.
The benefits of the partnership
The conversion from heavy fuel to natural gas encountered various technical difficulties, such as connection to the network and the conversion of the burners. The input from ExpertGaz Energy in its role as network, combustion and regulatory advisor, helped the customer make some pertinent choices, the most significant being the decision to use two sources of energy.
The added value
The technical support and the interruptible offer were two decisive factors. The customer’s previous electricity supplier could not offer them, which tipped the balance in GDF SUEZ Global Energy’s favour.
Outlook
The synergy between the paper mill and GDF SUEZ could move up to the next level soon. Since the takeover, the Doubs paper mill has been modernising and a number of projects are underway. The company, which is highly aware of environmental issues, has its own waste water treatment plant that uses rushes in its tertiary treatment process. It is in fact registered with the LPO (French bird protection league). Its modernisation takes this into account and GDF SUEZ Global Energy is helping with this approach by offering technical support as the company continues to reflect on their energy mix.
“Beyond the negotiations, we appreciated the support from GDF SUEZ throughout the whole project. It felt like a partnership rather than the usual customer/supplier relationship. The offer of technical support, along with the attentiveness of the sales staff and the customer service, convinced us that we’d made the right choice. The first real benefit is a saving of 25% on our energy bill. GDF SUEZ is continuing to work with us, offering advice and proposals, which is important for an organisation like ours.”
Eric Gravier
Deputy Director
DuPont de Nemours International Sàrl
End November 2010: GDF SUEZ Global Energy becomes DuPont's gas supplier for its production sites in Germany, Spain and the Benelux countries
DuPont is an international chemical group whose turnover is 26.1 billion euros. A front-runner in the development of plastics and other polymers, DuPont designs scientific solutions for various industrial sectors.
DuPont was looking for a competitive market-oriented offer that was tailored to its flexibility requirements for the supply of natural gas to its sites in Germany; Spain and the Benelux countries. A total gas volume of 4.4 TWh over 2 years (2011-2012) was at stake.
What are the key factors that led to this success?
- Internally; a close collaboration: the Sales, Trading and Marketing teams worked together to design a bespoke offer in line with DuPont's organisation.
- Externally, a partnership spirit: the GDF SUEZ Global Energy and DuPont teams worked together to find the best solution to meet the company's requirements.
Solutions
DuPont chose GDF SUEZ Global Energy as:
- gas supplier
- partner guaranteeing energy provision tailored to consumption profile
The advantages of the partnership
"For DuPont, a deciding factor in choosing GDF SUEZ for the supply of energy to its major consumption sites in Germany, the Netherlands, Spain , Belgium and Luxemburg was the flexibility of our offer, coupled with transparency in terms of market price.
A pan-European agreement, consisting of the removal of volume constraints at a local level and in the pooling of quantities on a pan-European level, gave added value to our proposal above our competitors.
All involved parties within the GDF SUEZ group took part in designing this bespoke offer.
The appointment of a unique coordinator (i.e. the Key Account Manager) reflected the client structure which is organised around a single and centralised purchasing department.
After five months' negotiation, we had been able to develope a sense of"partnership" that became reality through developing a sales offer that was acceptable to the customer. This offer gave both DuPont's local production sites and central purchasing team (in Geneva) the possibility of optimising the various contracts that fell within the scope of the pan-European agreement."
Christophe Baugnet
Lead Key Account Manager, GDF SUEZ Global Energy
The management of the future
"DuPont greatly appreciated the open approach and the efficiency of exchanges during the negotiation phase with GDF SUEZ. Having a single contact within GDF SUEZ significantly and favourably contributed to our exchanges, which were quick and very well coordinated as a result.
From the outset, DuPont very clearly stated its requirements in terms of the type and structure of its future (2011-2012) gas contract. We were looking for an innovative, pan-European solution that was market-based (and not on traditional oil products), benefiting from appropriate flexibility in terms of price and volume determination.
GDF SUEZ responded to these requests and changed its first offer in order to provide the structure that was essential to DuPont to respond to very demanding market conditions. DuPont has several lines of business that operate on each production site, with differing strategies and operating models. We were therefore particularly impressed with GDF SUEZ’s capacity for adaptation.
We therefore hope that this new relationship with GDF SUEZ, will enable us to manage and optimise our energy supply costs for our various production sites across Europe.
This innovative agreement signals the beginning of a new type of contract for the supply of gas, both for GDF SUEZ and for DuPont in Europe.
The first step is complete. We must now both extract value from the next step in our partnership and its innovative and flexible solutions".
GDF SUEZ is present in numerous other fields and we expect such partners to provide us with competitive offers that are integrated and adapted to our needs throughout Europe, thanks to excellent coordination.
Petr Vanous
Senior Energy Buyer, DuPont de Nemours International Sàrl
