INDIA

By
M. K. Singhi
Executive Director, Shree Cement Ltd.

&

R. Bhargava
Chief Climate Officer
1
Jan 2010 New Delhi

Shree Cement, India Workshop on International comparison of Industrial Energy efficiency on 27-28

CONTENTS
INDIA

Overview of Indian Cement Industry Cement Sustainability Initiative Sustainable Initiatives Indian Cement Industry
Energy Management Alternative Fuels Clean Development Carbon Sequestration

Research & Development Motivation for Sustainability

2 Shree Cement, India

Overview of Indian Cement Industry

Current Status
Worlds Second Largest Producer (233 Mn Ton).

INDIA

146 Large plants

97% plants use energy efficient dry process technology Comply all environmental regulations

3 Shree Cement, India

Overview of Indian Cement Industry

Installed Capacity & Production ( of Large plants)
220

INDIA

206.7 198
200

190.45

Installed Capacity

180

Million Tons

157.5 9
160

165.4 155.6 6

168.3

Production

151.6 8 136.9 7 144.3 6 127.5 7 117.5 141.8 1

140

120

111.3 5

4
100

Shree Cement, India

'02-'03

'03-'04

'04-'05

'05-'06

'06-'07

'07-08

'08-09

Cement Sustainability Initiative

INDIA

CSI Global Response to Global Issues Cement Sustainability Initiative was formed to help the cement industry to address the challenges of sustainable development. Started in 1999 Initiated by 10 major cement companies in 2002. 21 companies have joined CSI. Is developing the basis for a global Sectoral Approach with stakeholders to enable more rapid, equitable and economical GHG mitigation The Cement Sustainability Initiative aims to increase both our contribution to sustainable development and the public's understanding of that contribution.
5 Shree Cement, India

CSI Participants (with headquarters country)

INDIA

Ash Grove Cement (USA)* CEMEX (Mexico) Cimentos Liz (Brazil)* Cementos Molins (Spain) Cimpor (Portugal) CRH (Ireland)* Grasim Cement (India)* HeidelbergCement (Germany) Holcim (Switzerland) Italcementi (Italy) Lafarge (France) Portland Valderrivas (Spain) Secil (Portugal)*

Shree Cement (India)*

Siam Cement (Thailand) Taiheiyo (Japan) Titan (Greece)* Votorantim (Brazil) 6

Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

INDIA

CSI participants in India Name of the Company Capacity 9.10 19.64 1.07 3.09 40.71

Indian
Shree Cement Grasim Cement MNC in India Cimphor Heidelberg Cement Holcim

Italcementi
Lafarge

3.39
6.55

38 % of Cement Industry is represented at CSI

7 Shree Cement, India

Cement Sustainability Initiative

INDIA

The Key areas

Climate Protection
Fuels and raw materials use Employee health and safety

Activities

Emissions reduction
Local impacts on land and communities Communications and progress reporting

Concrete
Develop CDM methodology Implementation of Getting the Number Right project

Develop Cement Technology Roadmap

Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Business Overview

Triple Bottom-line : A metaphor for Corporate Sustainability

Wealth & Opportunity Creation
Shareholder values Resource efficiency Innovative products Product standards Emission trading rules Waste fuel policies Access to resources

Economy

Public Policies & Management Practices

Resource & Ecosystem Preservation

Quarry management Emissions control Protection of Climate

Environment

Society

Quality of Life & Social Equity

Employment Health & Safety Community well being

Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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-Role of Business Cement industry acted at five main drivers:

Alternative fuels
More flyash & slag

Increase efficiency

Waste Heat Recovery Shree Cement, India

10 Carbon Sequestration and Afforestation

Sustainability Initiatives - Indian Cement Industry

INDIA

Fuel Requirement

Quantum of energy inputs

Coal consumption Power Consumption Total Energy Bill : : : 29.64 Million T/ Year 16.312 Billion units/ Year 195 Billion INR

Total MJ (Fuel + Power) :

331.2

Captive Power Generation capacity Diesel : 1154.81 MW

Thermal
Wind Energy Total
Shree Cement, India

: 1573.34 MW
: 84.30 MW
11

: 2812.45MW

Sustainability Initiatives - Indian Cement Industry

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Alternate Fuels

Conventional v/s Alternate fuels

Thermal energy accounts for 20-25% of the cement production cost. To minimize Green house gas emission and dependence on coal, it is necessary to use alternate fuels of sufficient combustible value. All types of hazardous , non hazardous, combustible and non combustible waste can be co-processed in cement kilns.
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Sustainability Initiatives - Indian Cement Industry

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Alternate Fuels Potential alternate fuels in India

Hazardous waste such as Paint sludge, Refinery waste, ETP

sludge, Tar etc. Refuse derived fuels like MSW

Bio-mass wastes including fruit of Jatropha Carcus, Pongamia

Pet coke

India is closely associated for deployment of cost effective & efficient technologies for utilization of hazardous wastes with Asia Pacific Partnership countries for CO2 emission reduction.
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Sustainability Initiatives - Indian Cement Industry

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Alternate Fuels

Hazardous waste availability - State wise

West Bengal 4% U.P. 249300 A.P. TN 124650 2% 8% 4% 498600
249300

Rajasthan 4%
249300

Chattisgarh 4% Gujarat 249300 28% J&K 12465 1745101 0.2% Karnataka 62325 M.P. 1% 124650 2% Kerala 1% 62325

Punjab 1%
62325

Orissa 1%
62325

Others* 10%
922411

Maharashtra 25%
1558126

Shree Cement, India

Total HW generation 6.23 MillionTonnes from 36,165 Units Source: CPCB, 2008

14

Sustainability Initiatives - Indian Cement Industry

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Alternate Fuels

Refuse Derived Fuels (RDF) from Municipal Solid Waste (MSW)

Expected MSW generation by 2010 : 55 MTPA

Dumping sites constantly release methane gas, which contributes to environmental degradation & global warming.

New technologies developed can be adopted for converting MSW to RDF.

A project for efficient processing and use of MSW in cement kilns is proposed for APP approval.

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Sustainability Initiatives - Indian Cement Industry

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Alternate Fuels

Plants using Alternate Materials in Kiln :

Grasim Industries Shree Cement Holcim

Lafarge
Binani Cement

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Sustainability Initiatives - Indian Cement Industry

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Alternate Fuels

Task ahead for Hazardous Waste management

Periodic Review of hazardous waste inventory to be carried out.
Waste Exchange Banks by the Industry Associations to be developed.

Inter-state transportation of recyclable hazardous wastes.

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Sustainability Initiatives - Indian Cement Industry

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Energy Management

Energy Conservation Efforts

Improvement in energy performance has been possible largely due to: Better operational control and optimization. Conversion to modern technology. Better monitoring and management information system. Active participation of employees and their continued training. Participation in benchmarking studies Increase in production of Blended Cement
18 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Energy Management

Adoption of operational control & optimization measures

Plugging of leakages in Kiln & Preheater circuit, Raw mill Reducing idle running Effective utilization of hot exit gases Optimization of cooler Redesigning of raw mix Installation of capacitor banks for power factor improvement Replacement of over-rated motors with optimally rated motors

19 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Energy Management

Energy consuming plant Energy efficient plant

Dry, 1% Semi Dry, 5%
Wet, 61% Dry, 33%

1960
Wet, 94%

1980
Semi Dry, 6%

Wet, 21%

Semi Dry, 1%

Wet, 2%

1990
Dry, 76%

Semi Dry, 3%
Dry, 97%

2009

Process wise CO2 emission

Process Specific gross CO2 (kg CO2/t clinker) %CO2 reduction w.r.t. wet process Shree Cement, India Dry process 1,132 33.81 Semi dry process 1,483 13.35 Wet process 1,711 --20

Sustainability Initiatives - Indian Cement Industry

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Energy Management

Conversion from Old to Modern efficient technology

Modern technology Plants Pyro Processing Dry -5/6 stage Pre heater -High Efficiency Cooler Multi Channel burner Old technology Plants Wet, Semi Dry ,Dry - 4 stage Preheater - Conventional Cooler - Single channel burner

Grinding Crushing Blending & Storage

Shree Cement, India

VRM's ,Roll Presses with Ball mills with /without dynamic classifiers conventional classifier Single stage Continuous Blending Silos Two Stage Batch Blending Silos
21

Contd.

Sustainability Initiatives - Indian Cement Industry

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Energy Management

Conversion from Low efficient to Modern efficient technology

Modern technology Plants
Process Control Mining & Material Handling Packing & Dispatch Conveying of Limestone Material Transport Plant Size, TPD
Shree Cement, India

Old technology Plants

Relay logic/ Hard Wired/ PLC Conventional

DDC, Fuzzy logic expert system Computer aided

Bag, Bulk Belt conveyors Bucket Elevators 3000-10000

Bag Dumpers/Ropeway /Tippers Pneumatic Conveying System 300-1800

22

Sustainability Initiatives - Indian Cement Industry

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Energy Management

Energy monitoring & management system

Monitoring Daily: -Equipment wise , Section wise& Unit wise specific power consumption
Monthly: -Performance review comparison with target/Benchmark. -Trend analysis -ENCON scheme review Awareness programme Training Brain Storming Suggestion Scheme

Survey/Audits

Idea/information sharing with other industries/manufacturers

Action Plan &Target Setting

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Sustainability Initiatives - Indian Cement Industry

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Energy Management

Industry is benchmarked by
S. No. 1. Organization/Institution Bureau of Energy Efficiency, Ministry of Power, Govt. of India & Confederation of Indian Industry National Council for Cement & Building Materials Area Energy

3.

Energy, Quality, Environment

4.
5. 6. 7. 8.

Cement Manufacturing Association

Bureau of Indian Standards The Energy Resource Institute (TERI) Institute of Directors & Greentech Foundation Whitehopleman U.K.

Energy, PlantPerformance
Quality Performance Environmental Social Responsibility Environmental Excellence Energy efficiency, Environment Impact, Plant performance

24

Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

INDIA

Clean Development

GHG Mitigation- Substitution of Raw Materials by Flyash & slag:

YEAR Fly Ash Used (Million Tonnes) 1.56 2.01 4.35 12.81 17.11 23.23 29.97 Slag Used (Million Tonnes) 2.32 2.59 4.32 5.55 5.64 6.96 7.73 Total GHG Mitigation (Million Tons) 4.81 5.24 9.54 17.33 20.08 26.17 32.23
25 Shree Cement, India

1990 1995 2000 2004 2005 2006 2007

Contd.

Sustainability Initiatives - Indian Cement Industry

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Clean Development

Increase in PPC production 1 % by utilization of 25% fly ash leads to saving of :

Clinker : (Million ton) Thermal energy : (Million Kcal) Electrical energy : (Million KWh) CO2 emission : (Million tons) 0.40 297.20 113.20 0.36

26 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Clean Development

Specific Electrical Energy Trend:

85

81
80

80

79

79
76.7

75

kWh/t Cement

70

65

60

55

50

'05-'06

'06-'07

'07-08

'08-09

Shree Cement

Weighted average of 30 energy efficient dry process cement plants

27 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Clean Development

Mode Shift of goods from road to rail

Year Rail (MT) Road (MT) Percentage of Rail share 37.62 38.15

2007-08 61.66 2008-09 67.45

95.85 104.23

36 % emission reduced (ton/Km by rail share)

28 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Clean Development

Waste heat recovery system

Potential to generate 1000 MW power from the waste heat of Preheater & Cooler gases.

1 MW WHR project reduces 5321 ton CO2 emission per annum.

Saving of water Fuel reduction

Leads to clean environment

Shree Cement, India

Contd.

29

Sustainability Initiatives - Indian Cement Industry

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Clean Development

Waste Heat Recovery plants in India

Plants Capacity in MW CO2 Reductions

India Cement
Birla Corp JK Cement KCP

7.7
7.5 13 2.5

40970
39905 69169 13302

Ultra Tech Tadipatri

Shree Cement

4.5
40

23943
255190

Calculation is based on 322 Running Days, 90% Plant Load Factor, 10% Auxiliary Consumption and Emission Factor 0.85tCO2/MWh.

30 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Clean Development

GHG Emission Reduction

Year Total (Cement ) GHG emission (Million Tonne) 118.86 120.50 Emission (Tonne) Per Tonne Cement 0.94 0.88

2004 2005

2006
2007 2008

132.44
145.06 154.23

0.86
0.85 0.84

31 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Clean Development

Status of Clean Development Mechanism Projects

Sl. No.
1 2 3 4

Type of project

Projects Registered
12 4 3 3

Issued CERs Projects

6 1 0 2

Total CERs Issued

1125018 50348 0 80913

Blended Cement Alternative Fuels Energy Efficiency Waste heat recovery

32 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Clean Development

Captive Power Plant

Installation of Captive Power Plant helps in reducing distribution & transmission losses. Fly ash will be used by cement plant making power plant and cement plant a zero disposal waste system. Also reduces transportation emissions. India biggest CFBC which is based on environment friendly technology to be installed.

Auxiliary Power consumption is 7 % which is lower than industry norms of 9 %.

Adoption of latest technology for power plant performance optimization.
33 Shree Cement, India

Sustainability Initiatives - Indian Cement Industry

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Carbon Sequestration

34 Shree Cement, India

Research and Development

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The role of R & D in the growth of cement industry in India is well known and documented.

Current technologies are not sufficient : A technology breakthrough is needed

More research is needed regarding new cements, nano cement, algal farming, clinker process modifications etc. A few Cement plants with R & D establishments at plants site are : - Shree Cement Limited - Dalmia Institute of Scientific & Industrial Research - Grasim Industries Limited - Madras Cement Limited

- Holcim
Shree Cement, India

35

Motivation for Sustainability

To consider WHR projects as Renewable Energy projects :
Fuel saving by use of waste heat Water savings

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Clean environment
Qualify for CDM Projects

36 Shree Cement, India

Motivation for Sustainability

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Tax exemption on CDM and Renewable Energy projects : Renewable energy and CDM projects are capital intensive Renewable energy and CDM projects should be tax free

This will encourage investment in Renewable energy and CDM projects

More and more application of Renewable Energy and CDM projects will enhance faster connection of these technology for mass application leading to sustainability.

37 Shree Cement, India

Motivation for Sustainability

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Fly ash to be supplied free of cost to cement industry. Encourage construction of concrete roads.

38 Shree Cement, India

Motivation for Sustainability

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Fiscal incentives to invest in renewable energy by private players Long term stability in tariff policies. Energy efficient plants should be duly incentivised under PAT scheme. Incentives should be based on normal industry benchmark. This will encourage efficient industry to become more efficient, or else they will have no motivation for increasing efficiency further. Involve in vigorous R&D to develop innovative technologies.

39 Shree Cement, India

Achievements & Accolades

INDIA

Indian Cement Industry is the 1st to march towards Sustainability Developments: Issuance of CERs.

100% utilization of Petcoke in Kiln & Preheater.

To acquire BS-EN 16001 Energy Management System.

Highest capacity of WHR after China.

40 Shree Cement, India

Recognitions
National Safety Award Awarded by Honble President of India, Smt. Pratibha Patil.

INDIA

Excellent Water Efficient Unit Awarded by CII Golden Peacock Award-2009 For climate security EDGE Award 2009Awarded by Network Computing Magazine for "Top IT Implementations in India"

Energy Conservation Award - First prize for

Energy Conservation by Bureau of Energy Efficiency.

Energy Efficiency Award - Awarded by CII Sustainability Award Commendation Certificate for Strong Commitment for Sustainability by CII
41

Quality Excellence Award By National Council for Cement & Building Material

Shree Cement, India

INDIA

42 Shree Cement, India

Indian Cement Industry

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Conclusion: Environment friendly technologies will be the prime mover for the viability of the industry on the global canvas.

The industry should also increasingly look for other cheaper and cleaner fuel options.
To encourage waste utilisation principle of Polluter Pays has to be adopted. Governments & multinational companies should encourage joint research programmes and transfer of technologies.
43 Shree Cement, India

INDIA

Visit us at: www.shreecementltd.com

Contact us :sclbwr@shreecementltd.com
44 Shree Cement, India