asset integrity -...

Asset Integrity - Management

Biofuels Production Facilities

125 N. First Street, Colwich, KS 67030 | (316) 927-4290 | www.erisolutions.com

Thank you!

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2018 EHS Summit


Objectives

Benefits of Asset Integrity Testing & Inspection

How to Get These Benefits

Why You Should Manage Your Assets Effectively

Sample Replacement Cost/Lead Time

Sample Equipment Comparison from ERI’s AIM

Standard API approach vs RBI

Questions & Answers

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Benefits of Asset Integrity Testing & Inspection

Asset LossesPolitical Issues

Legal Issues

Customer RetentionRegulatory ComplianceLoss ControlEfficiencies

Strategic Operational

Hazard Financial

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How Do You Reap These Rewards?

• Do NOT file the reports on a shelf and wait for a regulator to show up asking for them!

• Do review the reports thoroughly and develop action plans, or at least address all observations and recommendations from the experts you hired!• Not following up on identified deficiencies could be grounds for

willful violations

• Develop or purchase a system to manage your assets for the long term – predicting failure can save enormous amounts of money vs having unexpected failure during high margin times

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Why Not Just Wait For Failure?

• We all have insurance, right!? - True – I would guess every single one of you has property insurance that includes business interruption!• Do you know what it covers or what it could really cost you?

• Typical 100MMGPY facility, producing at 120MMGPY, great margins, say from 2014, you might be making ~335,000 gallon of ethanol/day at $300,000/ day.

• With a typical 7 day deductible, you’re left with a pretty substantial loss on the order of $2M, not to mention any additional revenue you may lose from by-products, which can be fairly substantial for some facilities

• Not only that, you have to find the equipment and get it replaced/installed!

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Typical Lead Time and Equipment Cost

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Example - 190P Condenser cost is ~ $470k with an 18 week lead time!


What Are Some Recent Issues

• Cracks in fermenter floors/shells

• Cracks in slurry tanks

• Numerous issues with cracks in sieve bottle heads, not only welds

• Tube failures and excessive thinning in various tube and shell exchangers

• Internal floating roof seals and IFRs in general (bolting, leaking pontoons, torn roof material, etc) can lead to excessive emissions reporting requirements

• Cracks in Deaerator welds/shells/heads which can sometimes grow with attempted repair (only $230k and a 16 week lead time)

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How Does Your Equipment Compare?

Screenshot of sample customer equipment Useful Life and as well as an average of all other customer’s useful remaining life for the same equipment

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Even If You Are Already This Far, What Could Go Wrong

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Standard API Codes Follow The P-F Methodology

• Standard API 510 Inspection times• 5 year external• 10 year internal• Both limited to ½ remaining life

• Standard API 653 Inspection times• 5 year external• 10 year initial internal• 20 year follow up internal max (Still likely have to do your 10 year

floating roof inspections per your air permit)• External required at ¼ remaining shell life• Next internal also limited by remaining floor life

• Standard API 570 Inspection times• Based on piping classification, but generally if PSM covered, it’s

going to be an external visual and thickness every 5 years max, limited to ½ remaining life

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Are There Other Options

• Of course, there are some possible scenarios to decrease inspection frequency!• Risk Based Inspection – API 580 / 581

• Requires some engineering analysis of a multitude of factors

• Requires in depth understanding of your potential damage mechanisms

• Requires in depth understanding of the effectiveness of the various inspection and NDT method

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Are There Other Options

• Similar service – API 510

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Recommended Path Forward

• Perform and in depth risk analysis of your assets• Financial, Regulatory, Customer related, Employee related burden

of loss• Probability of failure, maybe of each type of loss

• Assemble your existing records in such a way that you can compare similar vessels in your facility at a minimum, or other similar facilities if possible – if you haven’t done inspections to date, now would be a great time to start

• Understand your potential damage mechanisms and ensure your NDT professionals are doing the best type of inspection possible to identify damage to your specific equipment

• Evaluate resources to assist in RBI analysis and planning and/or evaluations/documentation of similar service

• Be PROactive rather than Reactive!

• The biofuels industry is VERY young – we have a lot to learn

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Need More Information?

Name: Jay Beckel CSP, CHMM, API 510, 570, 653, STI-SP001

Title: Senior Vice President – Client Services

Contact Info:(316) 927-4288 – Office(316) 249-4486 – Mobile [email protected] - Email

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mailto:[email protected]

Your Risk Is Our BusinessSM

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