Energy efficiency and innovation by industrial co-generation within Holcim Romania

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1 Putere. Performanta. Pasiune. Energy efficiency and innovation by industrial co-generation within Holcim Romania Waste heat recovery from exhausted gases in cement plants

2 Holcim: 102 years od sustainable development in the world 17 years of sustainable development in Romania 2

3 Cement production Limestone and clay/marl Fuels MIC Clinker Cement Extraction and preparation of raw materials (limestone and clay/marl) 2. Clinker production pyro-processing of raw materials 3. Cement production grinding of clinker and mineral components (MIC)

4 Holcim Romania - 17 years with best available techniques Before After Complex modernization programs were implemented, using the best available techniques (BAT) All the investment focused on: Emission reductions Increasing of operational availability Reducing the specific energy consumption per tone of product Rehabilitation of exhausted areas 4

5 17 Years of modernization and increased efficiency 2001: 2 kilns (small) - wet 5 kilns (small) dry, stage preheater 2012: 2 kilns (large) dry, stage preheater and precalciners Specific thermal consumption [MJ/t clk] 5,000 4,000 3,000 ~25% of specific energy consumption Thermal energy consumption Electric energy consumption Specific electric consumption [kwh/t cem] 105 2,

6 and electricity produced without fossil fuels consumption and emissions Implementation of the Waste Heat Recovery System project from exhausted gases within Ciment Alesd 0 fossil fuels used by the new system for producing electricity 0 emissions (CO2, dust, NOx, SO2 etc) produced by the new system 15% of plant electricity consumption is produced by the new system EUR 15 mio. investment 6

7 Energy consumption in the cement production process Raw naterial Raw meal Clincker + mineral compenonets Cement Calcination of raw meal Clinker ~ 20% Electric consumption, from which: ~ 30% Consum for clinker energie production electrica ~ 70% for grinding ( raw materials preparation and cement production) ~ 80% Thermal consumption

8 Waste heat recovery system from Alesd: How it works? 8

9 Industrial co-generation This energy efficiency increasing process is known as industrial cogeneration (simultaneously production of thermal energy for the industrial process - and electrical energy) and can be implemented in energy-intensive industries where process waste heat exist and can be further transformed into electricity Its application in the cement sector is relatively new and was developed mainly in Asia within clean development mechanism projects of Kyoto Protocol, one of the main benefits being the greenhouse gases emissions reductions. Currently there are approx such systems in cement industry worldwide (mostly in Asia), 98 % of them using conventional steam for the waste heat recovery. 9

10 Innovation and sustainability Ciment Alesd first cement world wide installation recovering waste heat both from preheater and clinker cooler using organic Rankine cycle (ORC) ORC proven technology, but not within the cement industry! Increased efficiency of thermal energy recovery at low temperatures: In modern and BAT compliant cement plants, like the ones existing in Holcim Romania cement plants, the temperature of residual gases transporting the waste heat is low. Lower maintenance costs and high operational stability 1 0

11 Waste Heat Recovery Systems: Innovation also in details (recycled aggregates used for concrete) 11

12 Project implementation Project: initiated within Ciment Alesd in 2010 realized and coordinated by engineers from Romania, with the contribution of providers for equipment and services. Construction took place in and in the second half of 2012 technical and industrial trials took place. İn the system construction were involved over 300 persons, out of which over 60% Romanian 12

13 Innovation effects (1) The system generates about 15% of the electrical consumption of the cement plant without consumption of fuels or emissions (of greenhouse gases, dust, NOx, SO2) additional to the clinker producing process and contribute to: Reducing the Romanian society dependence of fossil fuels and increasing the resource efficiency by saving the fossil fuels that would have been used for producing the electricity generated by the system in conventional power plants Achievement of the three 2020 energy climate European targets: (20 % reduction of greenhouse gases emissions, 20% increase of energy efficience and 20% share of renewable in the energy mix) 13

14 Innovation effects (2) Due to the technical results obtained, starting from 2013 it is analyzed the possibility to extend the project, by implementing a waste heat recovery system in Ciment Campulung Application for co-financing (consortium jointly with suppliers of services and equipment) to European Horizon 2020 funds for innovation The only application selected at European level in 2014, in energy efficiency field 14

15 Legislative inertia main barrier for multiplying the industrial co-generation (1) European level: Industrial Emissions Directive: Industrial co-generation included in the BREF for best available techniques for cement industry 2 plants (Sweden, Germany) economical feasibility not obtain without subsidies (co-financing) Energy Efficiency Directive: Requests to analyze the feasibility (when significant rehabilitation is undertaken for an industrial installation) of waste heat recovery from industrial processes only for using for district heating. Co-financing from European funds for energy efficiency 15

16 Legislative inertia main barrier for multiplying the industrial co-generation (2) At national level: Delay of transposition of European Directives and lack of understanding of the whole context of the European energy-climate change package and of the contribution of the industrial co-generation Rigid interpretation of existent legislation in energy production field: Energy producers has to acquire green certificates for supplied electricity, less the own technological consumption (even though the electricity is produced without additional consumption of fossil fuels!) Own technological consumption interpreted as not including the consumption of the equipment already existing in the cement plant (electrical consumption of the source of waste heat = clinkering installation), but only waste heat recovery installation technically impossible - Perpetum mobile??? Lack of incentives (co-finanancing the operation by co-generation bonus) and treatment as conventional power plant (without considering the energy efficiency and the network electricity saved = payment of green certificates for the generated electricity lack of investment economic feasibility 16

17 Holcim activities for overcoming the barriers Increasing the awareness of the existence and the understanding of the technicalities of such energy efficiency projects Colaboration with competent authorities and with various shareholders in order to adapt the national legislation and particulate it for such systems of industrial co-generation, so that: Own technological consumption = electricity consumption for all the equipment needed to produce the electricity NOT ONLY of the equipment additionally installed (waste heat recovery system = ORC + turbine-generator), include the electric consumption of the equipment that produce the waste heat to be recovered (clinkering system) Co-financing the investment, incentivize the operation (co-generation bonus) and adapting the legislation is a MUST for assuring economic feasibility of the industrial co-generation systems 17

18 Holcim contribution to achieving the EU targets: and resources efficiency in Romania Best available techniques (BAT) Waste Co-processing as alternative resources Waste heat recovery 20% green house gases emissions reduction 20% renewables in the energy mix 20% energy efficiency improvement Resources efficiency 18

19 Thank you and kind invitation to. COLLABORATION in order to solve the present and furture - national, European and global challenges! oana.dicu@holcim.com 19

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