print mail ENERGY EFFICIANCY AT THE BALLSH REFINERY ALBANIAN REFINERY MARKETING OIL COMPANY (ARMO)

The objective of the proposed project activity is to reduce GHG emissions by introducing different energy efficiency measures to the Ballsh Refinery of ARMO (Albanian Refinery Marketing Oil Company). The emission reductions are ought to be achieved by increasing energy efficiency through reducing heavy fuel oil and electricity consumption in the oil chain industry with a very high energy intensity.

The Ballsh and the Fier are currently the only operating refineries, but due to some difficulties, e.g. decline in crude oil production, only 30% of their capacity is operational. The Ballsh refinery, commissioned in 1978, is the only complex refinery in the country that is composed of old plants, which produce a large range of oil by-products. Although the refinery was built in 1978, the technology used dates from ’60. It should be underlined that the parameters for many technological processes, such as oil desalination or water cleaning, do not comply with the environmental requirements and there is an evident need for rehabilitation of the refinery.
At the moment, there are only two TPPs in the country operating partly as cogenerations plants: the Fier and the Ballsh. The TPP Ballsh has two units with a total installed capacity of 24 MW and about 65 MW. The Ballsh power plant hasn’t been producing electricity for the grid since 1996. It only serves the nearby refinery. Both power plants are old and in very poor operating conditions. The maximum continuous power outputs of generating units are significantly lower than their rated power.
The refinery electricity consumption last year was 46 GWh/year and therefore ERE gave to Albanian Refinery Marketing Oil Company sh.p.k status of eligible customer. However, the company still hasn’t taken the advantage of this status.The Refinery commenced operations in 1978. The theoretic processing capacity is estimated to be around 1.000.000 tons of crude oil per year.
The refinery is made up from the following units:
  • Atmospheric distilation unit
  • Hydrogen production unit
  • White products hydro-cleaning unit
  • Catalystic reforming unit
  • Gas filtration and sulphur production unit
  • Oil gas filtration unit
The main outputs produced are: Gas oil (accounts for 28% of production), Coke Coal (15.6%), Gasoline (11%), Solar Fuel (14%), Masut (11%). Actually the refinery is operating in reduced capacity due to lack of raw material. In order to achieve technical readiness for full capacity realization, continuous reparations and investment are necessary.
For its activity, the refinery consumes:
  • Electricity,
  • Heavy fuel oil.
  • The electricity consumption last year was 46 GWh and the amounts of HFO, used in the steam generation for producing very high process heating, for the year 2005 were 65.000 ton.
Introducing the energy efficiency measures and CHP technology in the Ballsh Refinery, reductions of 22% in electricity consumption would be achieved. By improving burners in residual fuel oil furnaces, fuel consumption would be reduced up to 30 - 33%.
 
Possible energy savings measures which could be undertaken in the above mentioned units are as follows:
IMPROVING ELECTRICAL ENERGY EFFICIENCY AND IMPROVING ENERGY EFFICIENCY OF BURNER SYSTEMS
Based in the preliminary estimations the improvement of electricity system could reduce electricity consumption by 10-12%. In order to optimize the burning process, control of O2 flow rate and analyzer of waste gasses have been envisaged. The preliminary assessment showed that improvement of burners would reduce HFO consumption by 10-12%.
THERMAL INSULATION OF ALL DISTRICT HEATING PIPES
The thermal energy is generated at the thermal power plant, which is currently working in the heat-only mode and it is being used for process heating needs of refinery. All the underground pipes are very bad thermally insulated and covered with concrete tiles.Thermal losses are enormous (the maximum accepted is 12-15 % for the networks of several km). So, by reducing thermal losses in the pipelines, 10-15% of energy savings could be achieved.
REHABILITATION OF THE BALLSH REFINERY
During the period 1960-1980, Combine Heat and Power Plants (CHP) in Albania have been more developed than Heat-Only Boilers (HOB), which from their side are used only in hospitals, Student City, industry, institutional buildings and in any other small places.
The CHP Ballshi is a plant working in the heating only mode and provides heat only to the respective refinery. Through rehabilitation of this CHP, total electricity and fuel consumption would be reduced by 15%-20%.
SUMMARY OF ENERGY SAVINGS AND GHG REDUCTIONS
As it was mentioned there are three groups of energy saving measures in the whole Ballshi Refinery. Total annual GHG emission reductions, which would result from these measures, accounts for 70.000 tons of CO2eqv.

Applied methodology

The above mentioned energy saving measures could be divided in the two project activities. First one could be the bundling of two first measures: improving efficiency of electrical energy consumption and thermal insulation of all district heating pipes, and second rehabilitation of existing CHP plant. Therefore, in both cases the methodology for the small scale project "Energy efficiency and fuel switching measures for industrial facilities" II.D could be applied.

GHG offset

It is estimated that the project has a capacity to avoid emission of app. 700.000 tCO2eq for the period 2008-2018 (with the steady production intensity).

Sustainability

The project will contribute to sustainable development of the local area by mitigating negative effects related to high energy consumption and GHG emissions per unit of production, through increased energy efficiency in the refinery.

Current status

Winner of tender process:
Mwh Ambiente e sicurezza (www.mwh-ambienteesicurezza.it)

Estimated investment cost

NA

Local Partners

The Ballsh Refinery of ARMO (Albanian Refinery Marketing Oil Company).