Sustainability in Cement Industry

Rakesh Bhargava
Chief Climate & Sustainability Officer
Shree Cement Ltd.
 Introduction
Indian Cement Industry - A Snap Shot

• World’s largest producer after China
• Installed Capacity: Mar’13~ 336 Mn Ton
• Capacity grew at a CAGR of 11.5% from
179 Mn Ton FY07 to 336 Mn Ton in FY13
• Employs more than 1.2 lakh
people
• Produces more than 3000 MW of
Captive Power
• Low Per Capita Consumption 190
kg vs 514 kg for World.
 World Cement Production 2012
3.6 Billion Tonnes

India 6.6%
of World
production

Source: IMF World Economic Outlook 2013, April 2013

Growth of Indian Cement Industry

*Estimated

Source: CMA
Production Capacity Share : Major Groups
 Sustainability in Cement Industry
Continually working towards sustainable cost advantage

Energy Self driven agenda within Cement Sector:

Consumption To Promote Sustainable and Responsible Manufacturing
Water
Consumption

Material & Efficiency

Resource Matrices
Management across the
value
GHG & other chain
emissions

Waste
management
& Reuse

Collaborative Agenda Across the Value Chain

Suppliers Manufacturers & Distributors Customers

Manufact Mktg &

Raw Materials Logistics Storage Usage Disposal
uring Sales
 Sustainability in Cement Industry
Presentation Sequence
G • Generating Green Power

R • Reducing reliance on Fossil Fuel

E • Enhancing share of Alternate Raw Material

E • Enabling Water Conservation

N • New Benchmarks in Energy Efficiency

C • Contributing to Social Development

E • Effective Transparent Reporting

M • Membership of Global Sustainability Initiatives

E • Environment/Biodiversity Protection, R&D Initiatives

N • Negating Impact of Global Emissions

T • Targets of Sustainability for 2050

 Sustainability Initiative
Green Power (Waste Heat Recovery Power Plant)
Clinker process generates waste heat.

Using waste heat Waste Heat Recovery power plants

(WHRP) can
• Generate green power without fuel
• Conserve fossil fuels and water
• Reduces CO2 emissions

WHRP are highly capital intensive: Rs 9-10 Cr/MW

Indian Cement industry committed to low carbon

economy
• Installed 140 MW WHRPs
• Achieved CO2 reduction: 385000 Ton
• Potential to generate 1000 MW power

Shree has installed largest WHR based Power plant, in 8 Contd.

World Cement Industry after China
 Sustainability Initiative
Alternative Fuels
 Cement production an energy intensive process.

 Reliant on coal from Coal India, no new coal linkage

post 2007.

 Alternate Source : Use of AFR, Petcoke, Coal Import.

 R&D : On compatibility of AFR material.

 Successfully developed Petcoke- A refinery waste as a

strong alternative of Coal.

 Results: Conservation of fossil fuels and overcome

disposal problem of petcoke.

Shree was first to pioneer the use the Pet-coke in Kilns

 Sustainability Initiative
Cement Industry: Best option for Co-processing wastes

About 7.66 million tonnes per annum hazardous

waste generated from about 40,722 industries of
which

 Landfillable – 3.39 Mn TA
 Recyclable – 3.61 Mn TA
 Incinerable – 0.65 Mn TA

Hazardous waste are Paint Sludge, Refinery

waste , ETP sludge, Tar, Refused derived fuel etc

Source: CPCB
 Sustainability Initiative
Alternative Fuels: Energy from any Waste

 Kilns are the best sustainable solution for disposal of

hazardous waste.

 Use of Hazardous waste for co-processing can potentially

save 0.43 Mn tonne of Coal yearly.

 Municipal Waste alone can generate 9 Mn Tonne of Residue

Derived Fuel (RDF) to replace 4.5 Mn Tonne of coal for
cement plant operation.

Pioneers in AFR utilization: Holcim & Utratech

 Sustainability Initiative
Alternative Raw Material
 Indian Cement Industry a major consumer of fly ash. Out of 160 Mn T fly ash
generated annually, only 92 Mn T (57.5%) is recycled, and cement industry
consumes nearly 50 Mn. T (31% of the generated) fly ash annually.

 Consumes the entire quantity of granulated BF Slag generated – More than 10

MnT annually.

 Increased use of Blended Cements (PPC & PSC) over the years.

• From 18% of Total Production in 1989 to 70% in 2011-12

 Consumes 90% fluro and phospho- gypsum waste from fertilizer industry
exceeding 3.5 Mt.

 Uses waste materials as fuel including those from other industry – eg. Petcoke,
rice husk, bagasse, cut tyres & MSW
 Sustainability Benefits
Alternative Raw Material : Resource Conservation

Source: CMA
 Sustainability Initiative
Alternative Raw Material : Synthetic Gypsum

 Industry dependent on Natural Gypsum

 Flue Gas Desulphurization plants in CPP

captures SOx Emissions and produces

Synthetic Gypsum.

 Conserves Natural Gypsum

 Provides consistency in quality & process

 Sustainability Initiative
Water Conservation- Air Cooled Condensers

 Innovation: Replacing Water Cooled Condenser

(WCC) of Captive Power Plants with Air Cooled
Condensers (ACC).

 Achieved: Similar performance efficiency as

WCC’s.

 Water Conservation: Reduced water consumption

to 1/10th of WCC plants.

Shree has installed largest Air Cooled Condensers in India

 Sustainability Initiative
Energy Efficiency- Using Best Available Technology
Cross belt analyzer, Multi stage crushers and wobblers, Mine planning
Mines software, Radio controlled mines machinery monitoring system, Operator
Independent Truck Dispatch System (OITDS)
Vertical Roller Mills, Mechanical recirculation system, Adaptive predictive
Milling
control for mill operation, Gravimetric feeding system

Six stage preheater, Low NOx calciner with adequate residence time,
Preheater
Cyclones with high efficiency and low pressure drop

Multi-channel burner, High strength insulation bricks, high peripheral speed

Kiln
(up to 6 – 7 RPM), VFD control for shell cooling fans

High efficiency aerofoil bladed cooler fans with VFD, Latest generation
Cooler
coolers with a total loss of less than 100 kcal/kg clinker
Dust Control
Pulse-jet bag houses with membrane bags for all process applications
Equipment
Adaptive predictive control system, Online NOx control, Online flame
Control
control, Online free-lime (CaO) control, Flow measurement with advanced
System
techniques
 Sustainability Initiative
Energy Efficiency- Global Comparison
Comparison of Energy Consumption with selected countries
Specific Electrical Energy Specific thermal
Country Consumption energy Consumption
kWh / t of Cement Kcal/Kg clinker
India 82 725
Spain 92 836
Germany 100 836
Japan 100 836
Brazil 110 884
Italy 112 908
China 118 956
Mexico 118 1003
Canada 140 1075
USA 141 1099
World Average 100-110 850-860
Source: Indian Cement Review ,Sep ‘13
 Sustainability Initiative
Energy Efficiency- Setting New Benchmarks
PAT- A market-based mechanism to enhance cost effectiveness of improvements in
energy efficiency among Designated Consumers through certification of tradable
energy savings

Energy
Intensive
Sectors

Cement-Baseline Energy Consumption : 15 Million tonnes of oil equivalent (mtoe)

No. of Designated Consumers as of date : 85
Reduction target for DC's : 3.99-6.88%
Targeted reduction for cement sector : 0.815 mtoe (Tentative)
 Sustainability Initiative
Social Development
Total community prosperity

Construction
Employee Employee Training &
Skills Training Community Mother & Child
Volunteering Awareness Health
Engagement Institute Development

Text

Education &
Community Vocational
Working on Employee
Health Centre
Wellness
Text
Bonding Training
 Sustainability Initiative
Transparency in Reporting- CSR Reports

GRI A+ rated
reports by leading
players
 Sustainability Initiative
GRI G4 Guidelines and Supply Chain Focus

The Supply Chain Focus

► G4 is the fourth generation of
Sustainability Reporting Guidelines
developed by GRI
► It was developed through a global
multi-stakeholder process involving
representatives from all sectors.
► It consists of two parts:
Part A: Reporting Principles and
Standard Disclosures
Part B: Implementation Manual
► GRI requires that all reports published
after 31 December 2015 should be
prepared in accordance with the G4
Guidelines
The G4 Guidelines places an
emphasis on disclosure related to
the supply chain of the
organization, including:
►Description of the supply chain
►Significant changes in the
supply chain since last
reporting.
►Actual and potential negative
impacts on environmental,
labor aspects, human rights,
society in the supply chain.
Many aspects of the supply chain
feature in Standard Disclosures
guidance.
 Sustainability Initiative
Adopting Sustainability Strategy for Supply Chain
Manufacturing organizations often have a symbiotic
relationship with their suppliers.
Large responsible organizations can potentially play
an active role in ensuring the sustainability of their
supply chain.
Engaging with suppliers on issues such as energy,
environment, and social aspects, pays off in the
long term, by ensuring efficiency and quality are
percolated down the supply chain.
Supply chain sustainability criteria which may be
evaluated
►Resource efficiency of suppliers
►Social Impact of supply chain
►Environmental impact of supply chain
Implementing a supply chain sustainability
strategy
Identification of key supply chain
sustainability criteria to evaluate
Stakeholder consultation with supply chain
representatives
Development of detailed data collection
and audit plan
Data collection and gap analysis
Recommendations for improvement of
supply chain sustainability performance
and development of supply chain
sustainability strategy
Identification of financing options and/or
incentives for implementation of strategy
Development of monitoring framework
 Sustainability Initiative
Membership of Global Sustainability Initiatives- CSI
Cement Sustainability Initiative (CSI) Members in India

60% of production
 Sustainability Initiative
Environment & Biodiversity Protection
 Installed state of art ESP / bag house for dust control
 Environmentally sound technologies for minimizing
NOx ,SO2 and CO2 emissions
 Adopted ISO 14001 Environmental Management
System
 Significant progress achieved on restoration plans for
quarries
 Installation of Continuous Emission Monitoring System
 Sustainability Initiative
Occupational health & safety
 Implementation of best practices through
sharing and learning.
 Companies are implementing OHSAS 18001
 CSI member companies are implementing
CSI Driving/Contractor Safety Guidelines
 Monitoring of worker health and safety
conditions, including noise levels.
 Impart regular trainings

 Performs Safety Audits

 Improved methods to measure and ensure
worker safety, including the handling of
wastes.

 Adoption of 5 S concept.
 Sustainability Initiative
Clean Development Mechanism (CDM) Projects

• Total number of registered CDM projects in cement industry around the world: 171
• For clinker substitution projects (fly ash / slag blending), India leads with highest number of
registered CDM projects.
• India lags behind China in CDM registration of WHR projects for the following reasons:
• High cost of grid power (and escalating grid import prices) make it difficult to prove
additionality in India, despite high capital investment required for WHR
• Grid power is relatively cheaper in China.

So far 21 CDM project has been registered in Indian Cement Industry, resulting in annual CO2
emissions reduction of 21,02,656 tonnes
Targets of Sustainability for 2050

Source: WBSCD / CSI Low-Carbon

AFR Usage Technology Roadmap for Cement
Industry
Targets of Sustainability for 2050

Source: WBSCD / CSI Low-Carbon

Electrical Energy Technology Roadmap for Cement
Industry
Targets of Sustainability for 2050

Source: WBSCD / CSI Low-Carbon

Thermal Energy Technology Roadmap for Cement
Industry
Targets of Sustainability for 2050

Source: WBSCD / CSI Low-Carbon

Technology Roadmap for Cement
Clinker Factor Industry
 Targets of Sustainability for 2050
Low Demand Case

Parameter 2010 2020 2030 2040 2050

Clinker Production 161 290 382 429 449

Cement-to- clinker ratio 0.74 0.70 0.64 0.60 0.58

Electric intensity (KWh/kg cement) 80 76 73 72 71

Thermal intensity (Kcal/ Kg clinker) 725 709 694 685 680

Alternative Fuels use (as a share of thermal 0.6 5 19 24 25

energy consumption (%)

% carbon capture 0 1 9 17 25
 Targets of Sustainability for 2050
High Demand Case

Parameter 2020 2030 2040 2050

Clinker Production 342 544 713 794

Cement-to- clinker ratio 0.70 0.64 0.60 0.58

Electric intensity (KWh/kg cement) 75 72 71 70

Thermal intensity (Kcal/ Kg clinker) 703 690 682 678

Alternative Fuels use (as a share of thermal energy 5 19 24 25

consumption (%)

% carbon capture 2 10 20 28

*Source: CSI Low – Carbon Technology for the India Cement Industry
 Targets of Sustainability for 2050
Sustainable Development: Enabling Levers
The cement industry needs an
environment that incentivizes Architect
companies to adopt mature
sustainability strategies, and
Strategic
facilitate transition of cement Differentiator
companies towards becoming
architects of sustainable business Level of
Operational
Response
solutions. Differentiator

• Fiscal incentives for investment in low- Risk Mitigator

carbon technologies and products
• Amending policies for trans-boundary
movement of industrial waste
Compliance
• Enforcement of RPO for promoting
renewable energy
• Government support for R&D initiatives Value Protection Value Add
• Revision of product standards to allow for
additional utilization of alternative raw
materials
 Conclusion
 In coming years, in order to survive & grow, rapid modernization and
adoption of energy efficient & environmental friendly technologies will be
prime need for viability of the cement industry.
 Cement industry can play a vital role in the sustainable development of the
country by consuming most of the country’s industrial waste.
 Cement companies need to have an increased focus on reporting of supply
chain sustainability and adopt GRI G4 guidelines.
 A supportive policy environment is required to incentivize cement industry to
adopt mature sustainability strategies.
 Indian cement industry is one of the most energy-efficient in the world.
 Indian cement industry needs to catch up with global cement industry for
utilization of alternative fuels – policy support may be required for this.
 To implement Low Carbon Technology Roadmap to reduce the direct emission
from 0.63 t CO2/t of Cement to 0.35 CO2/ t of cement in 2050.
 Thanks !

Globe Green

Company Green

You Green www.shreecement.in