Case study: Hoa Sen Steel Sheet Co., Ltd. – Binh Duong

Case study: Replacing the low-efficiency coal-fired boiler with the high-efficiency biomass fluidized bed boiler at Hoa Sen Steel Sheet Co., Ltd. – Binh Duong

Hoa Sen Hoa Sen Steel Sheet  Co., Ltd. (formerly Hoa Sen Hoa Sen Steel Sheet Joint Stock Company) was established on November 9, 2006, operating in the field of manufacturing and trading cold rolled steel products. Hoa Sen Steel Sheet Co., Ltd (the Company) is the first subsidiary of Hoa Sen Group.

With continuous efforts in production and business development, the Hoa Sen Group has been maintaining the number one position in the steel sheet market in Vietnam with more than 30% of that market share, more than 20% market share of steel pipes nationwide; and is a leading steel sheet exporter in Southeast Asia, presence in more than 70 countries and territories around the world, worthy of being a global growth company of the world economic forum. Hoa Sen cold corrugated iron products are produced on the most advanced surface-cleaning technology of NOF (Non-Oxygen Furnace) in the world, environmentally friendly technology, complying with the following standards: USA Standard: ASTM A792/A792M; Australia Standard: AS 1397 and Europe Standard: EN 10346.

Image of the Company’s products

In addition to production development activities and market share development, the Company is also interested in solutions to reduce production costs and to protect the environment such as saving energy, especially steam systems, in which stable and environmentally friendly boiler operation is the top concern of the Company.

With this goal, the Company has decided to cooperate with the Kim Tuong Phuc Company to implement a project on replacement of low-efficiency coal-fired boiler with the high-efficiency biomass boiler. In this project, the Kim Tuong Phuc Company will be the investor who will install a new biomass boiler and sell the steam to Hoa Sen Steel Sheet Company.

During the period from December 15, 2018 to March 10, 2019, one national expert who was trained by the Project “Promotion of Energy Efficient Industrial Boiler Adoption and Operating Practices in Vietnam” of the Ministry of Industry and Trade (MOIT) and The United Nations Industrial Development Organization (UNIDO) has conducted a preliminary assessment, consultancy provision and monitoring the installation of new boiler as replacement of the old boiler.

Evaluation of preliminary assessment was conducted by the national expert of the UNIDO Project

According to the survey and preliminary assessment of the national expert, the old boiler system of the Company has the following features:

  • The company’s steam supply system has only 01 coal-fired chain grate boiler with a capacity of 10 tons of steam/hour, while the average actual operating capacity of the boiler is very low and it is at only 2.5 ton/hour, equal to ¼ of its designed capacity.
  • The boiler is fully equipped with equipment to recover waste heat from stack, but with very low operating load, the efficiency of old boiler is still low, equal to 70% by direct calculation method.

Based on the above assessments, the consultant advised the Company to buy steam from Kim Tuong Phuc Company at a low cost in comparison with the cost of steam produced by operating their old coal-fired boiler.

Image of old boiler

Evaluating benefits of replacing the old coal-fired boiler with the biomass boiler done by UNIDO Project Expert

Kim Tuong Phuc Co., Ltd. has decided to install a new biomass-fired boiler with a designed capacity of 4 tons/hour in order to meet the average steam demand of 2.5 tons/hour of Hoa Sen Steel Sheet Company instead of installing a new boiler with a capacity of 10 tons/hour as the old boiler of Ton Hoa Sen Company.

The replacement of the old coal-fired boilers, which always operate at the low-load level, with the biomass-fired boiler operating at stable loads that is greater than 60% of the designed capacity, has the following benefits for the Company:

  • The energy efficiency of the boiler has increased from 70% to 80%, resulting in the specific energy consumption of producing one ton of steam decreased from 3.49 GJ/ton to 3.07 GJ/ton of steam. In case, the investor is the Hoa Sen Company, this investment project can help the company save 1,848 million VND of fuel cost annually; with the total investment for the replacement of the boiler is 4,350 million VND, the payback period of this investment project is 28 months.

The conversion of fossil fuel from coal to biomass has helped to improve the Company’s working environment and reduce greenhouse gas emissions of 6,237 tons of CO2 yearly, contributing to the response to the global climate change.

Image of the new boiler’s monitoring screen

Project Management Unit.