BHP Oil and Gas Pipe plant set to save $9,240 a year by changing its production process

01 Jan 2000Archived News Energetics in the News


The BHP Oil and Gas Pipe plant in Wollongong is set to save $9,240 a year by changing its production process, and is set to accrue a massive internal rate of return as a result.

Seam annealers are long bar magnets with their polarity changing at high frequency. This constant change causes friction in the steel, which generates heat. Annealers are used to heat-treat the seam weld area of pipes, to ensure strength and durability, before they are straightened and cut to length.

The project involved reducing the gap between the pipe and the annealer output stage by 10mm, on the premise that the larger the gap, the more power is required to maintain the correct temperature.

The reduction cost BHP Oil and Gas Pipe just $500, amounting to an impressive 850% internal rate of return, which will save 554GJ of energy each year. Additionally, thanks to some lateral thinking, the simple process will reduce the company's CO2 emissions by 142 tonnes/yr.

BHP Oil and Gas Pipe undertook the project as part of SEDA's Energy Smart Business program, assisted by Energetics.

  • Energy Manager No 58, page 3
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