ABB and LKAB, together to achieve energy efficiency in a new pelletizing plant

Published 2010-01-28 09:19:38 | Updated 2010-01-28 10:22:36

In November 2004, the management of LKAB decided to invest SEK 2.6 billion in a new pelletizing plant (MK3) at its Malmberget iron ore mine in northern Sweden above the Arctic Circle. The decision to raise LKAB’s annual production of pellets by about 2.5 million tonnes to a total of 25 million tonnes was made in order to maintain market shares with some of its important international customers as well as to be a stable supplier to Scandinavian steelworks.

Project executed in record time

With the increase of its annual production of pellets in mind, the management of LKAB attached great importance to the quick realization of the project, not only because of the return on investment but also to meet the enormous worldwide demand for steel at that time. ABB was awarded the contract for the supply of the complete electrical equipment and process automation systems thanks to the long-standing working relationship, customer orientation and quality service as well as the know-how of ABB with regard to such large plants. Together with LKAB, ABB completed this project in a record time of only 18 months from the date of award. As a result, LKAB obtained the complete electrical and control scope from one supplier.

Electrical and process control equipment from ABB

ABB is responsible for the complete project management, engineering, customer training, erection supervision and commissioning. State-of-the-art products and systems from ABB are found at every turn in the new MK3 pelletizing plant:

• High-voltage switchgear for the expansion of the 145 kV substation at Malmberget
• Medium and low-voltage switchgear
• Low voltage  filter equipment
• Medium voltage power compensation equipment
• Emergency power supply system
• MNS INSUM intelligent low-voltage distribution and MCC’s
• Electric motors and drive systems including low and medium-voltage drives with a total of 140 frequency converters to increase the efficiency of large process fans
• Instrumentation for flow, level, pressure, temperature measurement etc., all connected to intelligent bus systems
• Upgrading of the existing process control system for the ore concentrator, which separates iron ore concentrates and tailings
• Equipment for the railway loading/unloading station close to the Malmberget mine
• Industrial IT control based on AC 800xA automaton system with 22 800M controllers for the process control

The AC800xA automation system and the intelligent peripheral units provide LKAB’s new pelletizing plant with state-of-the-art technology, ensuring higher productivity and better quality of the products.

Focus on energy efficiency

An important goal for LKAB for many years has been to improve energy efficiency and lower energy costs. Electric motors can be a major consumer of electrical energy in bigger plants. A pelletizing plant needs a large number of motors for driving mills, pumps, fans, etc.

About ten years ago LKAB decided to purchase only high-efficiency electric motors. Even if the purchase price may be higher, the lifetime cost of a high-efficiency electric motor is substantially lower than for a conventional motor. ABB has been a major supplier of high-efficiency motors to LKAB for their various facilities and they are also included in the delivery for the new pelletizing plant.

Focus on cooperation

At the special request of LKAB, a completely new way of working, ‘Partnering’, has been adopted for the pelletizing plant project. LKAB and ABB worked closely together in a joint project planning organization. The parties involved worked with open reporting of the costs, and with incentives instead of penalties. This required more active participation of all those involved in the project. This new way of working is a great challenge, but at the same time it opens the way to a new business culture. The execution of such a major project in a comparatively short time has required comprehensive resources. ABB’s strong local presence, the solid technical competence as well as the long-standing relations and cooperation with LKAB have played a vital role in the success of this project.

Record in the first year

According to a reliable source, LKAB was able to establish a record in the very first year of production with the MK3 pelletizing plant in Malmberget. The plant capacity utilization of 92.2% meant that MK3 was in all probability the most productive pelletizing plant ever built.

By Kenneth Olsson and Kjell Svahn (shortened and revised for Swedish Rocky Journal)