Lu’an Chemical Group: Playing a Strategic Game in Dual Control of Energy Consumption to Lay a Solid Foundation for High-Quality Development

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Luan An Chemical Group: Playing the strategic game of dual control over energy consumption to foster high-quality development Author/Source: Luan An Zhengyuan Group Date: 2022-05-16 Clicks: 10 At the second session of the group’s workers’ congress in 2022, Luan An Chemical Group set new requirements for the full implementation of measures related to **dual control over energy consumption**. In the face of the new circumstances and developments, various departments and units have set standards, defined directions, and outlined paths to accelerate the implementation of energy-saving technological upgrades in coal chemical enterprises, promote the development and application of green and low-carbon technologies in the chemical industry, and further advance efforts to control energy consumption. As a result, the overall energy consumption in the first quarter was 148,000 tons of standard coal less than the planned target. Conducting thorough assessments to establish standards: Implementing dual control over both the intensity and total amount of energy consumption is an important institutional measure aimed at fulfilling the requirements of ecological civilization construction, promoting energy savings and reduced consumption, and fostering high-quality development. How to fully tap into potential for energy savings, mobilize key resources, and carry out comprehensive dual-control measures for energy consumption is an important challenge facing the group’s efforts in energy conservation and environmental protection. To this end, the group has defined the overall development goals for energy consumption control during the 14th Five-Year Plan period, as well as annual energy consumption budget targets. By setting benchmarks, comparing performance, meeting standards, improving efficiency, and exploring ways to enhance performance, the group strives to raise the energy efficiency levels of its various energy-consuming units. Good top-level design is necessary to guide grassroots development. The relevant departments of the group conducted a systematic assessment of the energy consumption, coal consumption, and carbon emissions of those corporate entities within the group that are capable of independent accounting, as well as those units that function as legal entities. These were classified by industry and region, with efforts focused on improving energy efficiency in a targeted manner. The \"Lu’an Chemical Group Energy Consumption Control Plan (2021–2022)\") was issued, and through special meetings and other means, efforts were made to unify thoughts and raise awareness, thereby launching comprehensive energy consumption control initiatives across the entire group. Based on the actual situation of the group’s energy consumption management, the relevant departments of the group focused on the management of energy consumption in the electricity and coal processing sectors. They formulated action plans for reducing energy consumption in the electricity industry as well as plans for implementing dual-control measures for energy consumption in the coal processing industry. Additionally, they established management regulations for such dual-control measures and improved the standards related to their implementation in both the electricity and coal processing sectors. At the same time, building on the \"five ones\" working mechanism established by the special task force for dual control of energy consumption in Shanxi Province, the group has developed its own \"seven ones\" working mechanism: a special task force, an energy consumption distribution map, an online energy consumption monitoring system, a regular scheduling mechanism, a regular reporting system, a customized work plan for each enterprise, and a standard management system. All energy-consuming entities are required to adhere to the \"six fixed\" requirements of specifying projects, funds, networks, dedicated teams, responsibilities, and evaluation methods. Energy conservation and consumption reduction efforts should be carried out in three areas: management-based energy savings, technology-driven energy savings, and structural energy savings. This approach provides a solid foundation for building an energy-efficient industrial system and advancing the development of first-class energy-related enterprise groups with high-quality operations. Energy-saving upgrades improve efficiency. After receiving the group’s notice regarding the \"standards for establishing a standardized management system for dual control of energy consumption,\" the Coal-based Synthetic Oil Company also made significant efforts in terms of technical upgrades. Through analysis of the energy consumption structure and the energy used in production processes, the company determined that coal and electricity account for the majority of energy consumption, comprising around 95% of it. Among them, in the production process, gasifiers and boilers consume a significant amount of energy. Therefore, the company focuses on saving coal in gasifiers and boilers as well as improving the efficiency of motors to carry out energy-saving and consumption-reduction efforts. Firstly, the coal-based synthetic oil companies made fine adjustments to the gasifier process, making precise adjustments ranging from the composition of the coal fed into the furnace to the oxygen-to-gas ratio, as well as regarding the proportion of alternative coal fuels used. Through these adjustments, it was possible to reduce the amount of standard coal required; the standard coal consumption per 10,000 cubic meters of transformed gas decreased by 1.4% compared to December 2021. At the same time, an assessment was conducted of the operating load factors of all motors in the plant. For those motors with low load factors, efficiency improvements were implemented by adjusting the opening degrees of valves and return valves, reducing the number of pumps in operation, and adjusting the frequency of frequency converters. As a result, the average daily power consumption decreased by 16,500 kWh compared to December 2021; the efficiency improvement of the motors was significant, leading to energy savings. After the conversion and renovation, the coal-based synthetic oil company entered a new operating mode. Without the need for significant capital investment, by tapping into existing potential and carrying out energy-saving upgrades, it identified areas where energy savings could be achieved by comparing the two operating modes, thereby eliminating the situation of using overpowered equipment for tasks that require less power, and **improving energy efficiency levels. In the first quarter, the company’s total energy consumption was 8,038 tons of standard coal less than the budgeted figure. Precise management yields results; the rational development and utilization of coal is a key aspect in achieving dual control of energy consumption. To truly achieve low-carbon and energy-efficient energy development and utilization, the group’s various coal-related entities have, in light of actual production conditions, defined the directions and approaches for controlling energy consumption. They implement classified management and precise control measures, continuously improve the management of coal mining processes, enhance the quality of washed coal, and seize the opportunities presented by the transition to a new energy paradigm. Fangcun Coal Mine focused on the overall goal of dual control over energy consumption, taking a comprehensive approach while paying attention to detailed aspects. In the first quarter, it not only fulfilled its assigned targets but also reduced its total energy consumption by 2,619 tons of standard coal compared to the planned target; it also met the requirements regarding specific energy consumption per unit and energy consumption per 10,000 yuan of output value. The completion of target tasks relies on a solid foundation for management and control, outstanding lean management capabilities, as well as the optimization and upgrading of production organization. Changcun Coal Mine divides its energy consumption into different categories in order to implement classified management and precise control. At the same time, improve the allocation of energy metering devices, further refine the measurement ranges and hierarchical metering systems, to ensure that energy consumption management moves toward a more standardized and precise approach. Aiming to reduce energy consumption, optimizations were carried out in various systems such as mining, mechanical and electrical equipment, ventilation, and auxiliary transportation, including improvements in production processes, production organization, on-site management, and technological innovation. This created a combined effort to control energy use effectively, resulting in a significant reduction in the overall energy consumption associated with coal production. By optimizing production organization and establishing a lean measurement system, testing and analysis system, and standardization management system for coal washing, standardized management of energy consumption in coal washing was implemented. This approach enabled an increase in coal washing output and efficiency while reducing energy consumption losses, thus achieving cost savings and improved efficiency. Seize the momentum and grow stronger through it. Through the joint efforts of all employees in the first quarter, the group successfully met all the targets set for energy consumption control, and began to accelerate this process further. By employing precise analysis, proactive forecasting, and coordinated actions, the group is able to effectively manage energy consumption, thereby promoting high-quality and sustainable development. This lays a solid foundation for the group to fulfill its energy consumption control objectives during the 14th Five-Year Plan period.