Financial Viability and Barriers for Implementing AFR Project An Industry Perspective
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1 Financial Viability and Barriers for Implementing AFR Project An Industry Perspective Ulhas Parlikar Dy Head, Geocycle India ACC Limited 2014 Holcim Technology 2014 Ltd
2 About Geocycle For a zero-waste future Geocycle is the waste management brand of Holcim. In Geocycle, the service of waste coprocessing in cement manufacturing process is provided. Holcim is the promoter of both ACC Limited and Ambuja Cements Limited (ACL). Brand was created in 2007 as the dedicated identity used to brand waste management solutions in the Holcim Group We apply the highest health, environment and safety standards in all our operation complying to relevant regulation
3 The Geocycle Approach Waste assessment We undertake complete survey of the various kinds of wastes and full assessment of their suitability for coprocessing. Waste analysis We have dedicated laboratory facilities to analyze the various physico-chemical characteristics of wastes that are liquid, Solid or sludges. We also undertake extensive OHS assessment so as to ensure their safe disposal. Waste transportation We provide a seamless service ensuring the waste is transported in appropriate packaging with required labelling and documentation. The waste is carried by operators with required skills, qualifications and permits. Pre-processing We set up and implement extensive facilities to blend liquids, shred solid materials and homogenise wastes into Alternative Fuels and Raw materials (AFRs) prior to their usage in kilns Co-processing AFRs are then safely co-processed in our cement kilns.
4 Waste management through cement kiln coprocessing While undertaking waste management through cement kiln coprocessing, wastes have to go through several operational stages such as assessment, storage, handling, preprocessing and coprocessing etc. Reasonable investment is required to implement the above activities in an environmentally sound and operationally safe manner. For successful management of wastes in cement kilns, these investments have to be financially viable. A lot of stake holder perceptions act as barriers in getting coprocessing implemented in a successful manner. 4
5 Financial Perceptions Cement plants benefit from the Calorific & Material Value present in waste Wastes have calorific and material value present in them but there is considerable variation from lot to lot. For gainful utilisation of this energy and material value, cement plants need to implement relevant facilities. The energy and material replacement value alone cannot provide acceptable payback for these investments. Tipping fee for the disposal of wastes is essential. Cement plants must undertake waste coprocessing as a CSR initiative For cement plants to extend waste management activities in a sustainable manner, the coprocessing initiative has to be undertaken in a business mode. 5
6 Technical Perceptions Coprocessing of wastes involves release of obnoxious gases from kiln stack Very high temperature of operation, long residence time, counter current flow of waste & hot gases, alkaline environment with highly active lime etc., ensure that there are no obnoxious emissions from the kiln stack. More than 70 coprocessing trials of different kinds of wastes, having varying concentration of different parameters, conducted in different cement plants in India have demonstrated that there is no influence on emissions due to coprocessing. Waste can be fed as it is in the kiln Wastes need to be preprocessed and feed at relevant feed points depending upon their physical and combustion characteristics. Proper quality control of the input material is essential for producing right quality cement. Cement kilns can coprocess all kinds of wastes in any proportion Cement kilns can coprocess different kinds of wastes only to the extent that their raw material chemistry and design permits. All wastes can be coprocessed in cement kilns A large number of wastes can be coprocessed in the cement kilns except those that are determined as banned wastes. 6
7 Global Experience Coprocessing is a recovery operation and hence is higher in the waste management hierarchy over landfill and incineration options of disposal. Coprocessing helps reduce the GHG emissions. It is feasible for cement plants to extend coprocessing solution to manage large quantum of wastes in a win-win manner. In almost all cases, wastes gets disposed at a cost that is cheaper than the other disposal costs such as landfill or incineration. (Advantage to the waste generator). Large amounts of fossil fuels and raw materials get replaced at reduced costs thereby reducing the production cost of cement. (Advantage to cement plants) Reduces drastically the environmental load that is likely to be caused into the environment. (Advantage to society) 7
8 Infrastructure for coprocessing For responsible and environmentally sustainable coprocessing, different infrastructure is required to be created in the cement plant. An appropriate laboratory for waste characterisation. Storage & handling facility, Properly designed AFR feeding facility at the relevant feed points such as main burner, kiln intel or calciner etc. Fire fighting facility Proper business processes & qualified manpower to deal with the hazards and vagaries of wastes. Depending upon the volume of waste / AFR handled, coprocessing facility can be a manually operated starter kit or a fully automated standard facility. 8
9 Infrastructure for Preprocessing Since there is considerable variation in the quality of wastes received for coprocessing, preprocessing of them into a uniform quality material is essential. This also requires relevant facilities to be created. Laboratory Segregated storage for different kinds of incoming wastes and outgoing AFRs Properly designed equipment and machinery for shredding, impregnation, blending, mixing, screening, segregation etc. meeting specific standards to deal with the hazards associated with the different kinds of wastes. Fire fighting facility Proper business processes & qualified manpower to deal with the hazards and vagaries of wastes. Every cement kiln has different acceptability criteria depending upon the operating chemistry and the preprocessed waste needs to be tuned to match that. Depending upon the volume of waste / AFR handled, preprocessing facility can be a manually operated or a fully automated facility. Preprocessing facility can be implemented within the cement plant or can be implemented at the waste generation location. 9
10 Financial Considerations INCOME ITEMS 1. Tipping Fees from waste generator 2. Substitution benefit derived due to the replacement of traditional raw materials and fuels by wastes. EXPENDITURE ITEMS 1. Waste identification 2. Laboratory assessment 3. Handling and storage 4. Manpower cost 5. Coprocessing cost 6. Preprocessing cost 7. Production impact 8. Fuel usage impact 9. Interest, Depreciation and other costs Coprocessing initiative will be viable when income from coprocessing of wastes in cement kiln is higher than the expenditure incurred. There can be different business models for management of Industrial and segregated MSW fractions for the consideration of the cement plants. 10
11 Industrial Wastes
12 Different models for preprocessing and coprocessing of IW Third Party Assessment QA / QC Industrial Wastes Collection Preprocessing Assessment QA / QC Collection Preprocessing Co-processing Cement Plant 12
13 MSW is garbage and cannot be directly co-processed! 13
14 Current MSW Model in India Proposed as Fuel for cement plant/wte Combustible Fraction 40% ++ 25% 10% Sorting (manual+me chanical) Recycling 25% Landfill 14 14
15 Adaptable Business Model in India (integration with existing option) Key driver in the market is the appropriate tipping fee to make the economics work - Co-Processing Pre-processing shredding and blending Combustible Fraction 40% 25% 10% INR/T Sorting (manual+me chanical) Recycling 25% Landfill 15
16 Different Models for RDF Preprocessing and Coprocessing Third Party with support from ULB s Third Party /cement Plants MSW Collection Segregation Combustible Recyclables Bio-degradable Composting Pre-processing RDF Model 1 Model 2 Model 3 Pre-processing QA / QC Co-processing Cement Plants 16
17 Regulatory framework Global scenariio Coprocessing, being a technology that leaves zero waste for future concern, is practiced on large scales in many EU and other developed countries. Holcim and GTZ through a Strategic alliance Proposed international guidelines for the co-processing of waste materials in the cement production Secured the public acceptance of these guidelines Finalized them in July 2006 From those guidelines, specific legal frames on coprocessing are under implementation in around 15 countries
18 Global regulatory framework Basal Convention Basal Convention has reviewed and approved technical guidelines on coprocessing To offer objective information about co-processing of waste in the cement industry To offer objective information about coprocessing of waste in the cement industry To offer links to organizations, institutions, and companies active in the field of co-processing and to propose ways and means for capacity building. Document Number UNEP/CHW.10/6/Add.3 Available in: For facilitating governmental authorities globally in formulating guidelines for coprocessing of wastes
19 Regulatory framework Indian Scenario The HWM rules recognized co-processing under chapter III, Rule 11. It states the following: The Utilization of Hazardous Wastes as a Supplementary Resource or for Energy Recovery, or after processing shall be carried out by the units only after obtaining approval from the Central Pollution Control Board Current Framework for Hazardous Waste Coprocessing in Cement Kilns Trial Run for new HW stream Approval from CPCB for regular coprocessing Authorization from SPCB for regular coprocessing CPCB Guidelines on Co-processing in Energy Intensive Industries was published in February 2010 On similar lines, Guidelines for Co-processing of Spent Wash generated from Distillery Units was also published
20 Barriers in the present regulatory framework Every waste has to be demonstrated as suitable for coprocessing. Highly time consuming process of permitting Landfill and Incineration are still preferred options for disposal in the HWM Rules Regulatory framework does not specify standards on infrastructure required for undertaking preprocessing or coprocessing. Emission standards for coprocessing in cement kilns are not defined. Regulatory framework does not provide clarity on application process for permitting preprocessing facilities. 20
21 What needs to be done to ensure large scale use of environmentally friendly coprocessing technology in Clean India Drive. The current regulatory framework in India provides generic permit to manage the waste through land fill and incineration process. Although coprocessing technology has superior environmental performance over incineration or landfill operations, cement plant has to obtain coprocessing permit per waste stream. That too after demonstrating the suitability of each one of them in the cement kiln through an elaborate coprocessing trial. This waste by waste permitting process is a very slow permitting process requiring about one year for each of the waste stream. There is need therefore to modify the existing waste management rules in favor of coprocessing so that cement kilns can have generic permit to coprocess all kinds of suitable wastes. Since coprocessing leaves zero waste for future concern, in the current Clean India drive in the country, cement kilns can contribute substantially in treating large amounts of hazardous and non-hazardous wastes in safe and environmentally sound manner. 21
22 How are we (geocycle) contributing to waste management Waste management is undertaken in all the clinkering plants of ACC and Ambuja Setting up seven preprocessing platform of global standards in different parts of the country. 22
23 Skilled professional with State of the art infrastructure to handle waste streams Highly competent team Dedicated lab for waste evaluation Waste transportation Waste Pre-processing platforms to bring Homogeneity from various waste streams
24 Co-processing Deliverables to customers Waste managed responsibly with no waste residue Zero Liability once the waste is accepted at Geocycle Safe, secure and environmentally sound way of waste disposal Full compliance with local environmental regulations and the setting of best practices Rigorously monitored environmental and safety standards Optimized asset utilization, eliminating unnecessary onsite waste storage Co-processing Complete documentation is, therefore, a local of waste & desired disposal route activities to manage wastes with zero Locally liability, available environmental solution impact addressing all concerns of sustainable development
25 AFR projects that we are building at several locations
26 What are we striving for? Recognition Recognition of co- processing as a preferred technology for waste management Regulatory framework Hassle free Interstate movement of wastes and clear guidelines to avoid any disputes Mandate in MSW Rules for producing RDF suitable for cement plant co-processing Generic permissions Generic Permit for Co-processing to cement plants adhering to Pre-qualification criteria Uniform permitting procedure for Hazardous and non-hazardous wastes at all SPCBs
27 Business cells from market perspective defined Geocycle has access to 14 facilities across India North North central Geocycle has made more than 60 trial burns in India with various types of waste streams East The wide spread presence across the country gives the flexibility to provide seamless solutions to our customers West Business cells with one platform each and sometimes delimited South by state Central borders due to limitations in free waste transportation. South * Depending on way forward
28 Geocycle s Global Presence Co-processing activities in over 39 countries with over 4500 customers 28 pre-processing facilities More than 10 million tons of AFR coprocessed in 2011 Treated about 20,000 waste streams
29
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