STATUS OF ALTERNATE FUELS & RAW MATERIALS USAGE IN INDIA- Industry Perspective. Dr. S.K. Handoo

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1 STATUS OF ALTERNATE FUELS & RAW MATERIALS USAGE IN INDIA- Industry Perspective INTERNATIONAL CONFERENCE ON ENHANCED USAGE OF ALTERNATE FUELS & RAW MATERIALS CO-PROCESSING IN CEMENT PLANTS Dr. S.K. Handoo Advisor (Technical) Cement Manufacturers Association 7 th August 2013 Le Meridien, New Delhi 1

2 Global Cement Production Global Cement Production Mt Year Source: Global Cement Report

3 World Cement Production 2012, by Region and Main Countries 3.6 Billion Tonnes Source: IMF World Economic Outlook 2013, April

4 Growth of the Indian Cement Industry ( To ) Capacity addition Production 83 Years Capacity Capacity addition Next 100 Mt. took Capacity addition Next 100 Mt.. took about 11 years Years Years * * * Estimated nd Largest Industry in World in Capacity & Production 4

5 Progressive Reduction in Energy Consumption by Indian Cement Industry Year Dry 90% Post 2000 (Dry 96%) Predominant Technology/ Process Wet 96% Semi-Dry Dry-4 Stage Preheater (PH) Precalciner (PC) 85% Dry-5/6 Stage PH/PC, Vertical Roller Mill (VRM) & Pre-Grinders, Advanced Coolers Double-Stream PH, Pyrostep Coolers, High Pressure Grinding Rolls, Advanced Kiln Control System, IT based Plant Operation Capacity (Tonnes/ Day) Heat Consumption (K.Cal/Kg. Clinker) Power Consumption (Kwh/Tonne Cement (663/734) * (63/89) * * (Best/Average) Source: NCB and CMA Database 5

6 Waste Management Indian Cement Industry a major consumer of flyash. Out of 160 Mt. fly ash generated annually, only 92 Mt. (57.5%) is recycled, and cement industry consumes nearly 50 Mt. (31% of the generated) fly ash annually. Consumes the entire quantity of granulated BF Slag generated more than 10 Mt. annually. Increased use of Blended Cements (PPC & PSC) over the years. From 18% of Total Production in 1989 to 70% in Consumes 90% fluoro and phospho-gypsum waste from fertilizer industry exceeding 3.5 Mt. Uses waste materials as fuel including those from other industry e.g., Pet Coke, Rice Husk, Bagasse, Cut Tyres and MSW. 6

7 Increasing Fly Ash based Cement Production OPC PPC PBFS Others (%age) (%age) (%age) Currently, 85% of recycled Fly Ash is utilized by the Cement Industry. 7

8 Steep Decline in Linked Coal Availability Linked coal supply dropped from 71% in FY03 to 38% in FY12. Progressive %age increase in the procurement of imported coal, e- auction/open market and pet coke costing times the cost of linked coal. Uncertainty about availability of fuel even from these costly sources. No new coal linkages being sanctioned to additional capacities/expansions. Source: CMA Data 8

9 Alternate Fuel Use In Cement Kilns Country % TSR by AFR Country % TSR by AFR Netherlands 83 Sweden 29 Switzerland 48 Luxemburg 25 Austria 46 Czech Republic 24 Norway 35 Japan 10 France 34 United states 25 Belgium 30 India Less than 1 Germany 42 Source: CEMBUREAU TSR = Thermal Substitution Rate AFR = Alternate Fuel & Raw Material 13

10 Utilisation of Wastes Generated in India Can Replaces 4.5 Mt. of Coal Type of waste Quantity Mt. Quantity Mt. Municipal waste Hazardous waste A+B+C 6.72 A recyclable 3.37 B Land fillable 2.82 C Incenerable 0.49 Total Municipal waste alone can generate 9 mil T of Residue Derived Fuel (RDF) to replace 4.5 Mil T of coal for cement plant operation. Does not include other non hazardous waste 14

11 Scenario Comparison for India Parameters Base year (2009) 2050 * Cement production, Mt. 170 (World 2774) Cement consumption, Kg/cap 151 (World 420) Clinker-to-cement-ratio Energy use (Mtoe) Energy intensity, Gj/t cement SOURCE: International Energy Agency (IEA), Jan.2011 * As per Base Line w.r.t. Base-Year (2007) 15

12 Typical Fuel Mix in European Kiln Fuel % of TSR Alternate Fuel % of TSR Coal 10 Pet coke 10 Lignite 20 Tyres 10 Waste fuels 50 ETP sludge / MSW 10 Plastics 10 Animal waste 10 solvents 10 Others 10 16

13 India Cement Production Projections* Cement Production projected to increase between 3.6 and 6.3 fold between 2010 and 2050 By 2050, India s Cement Production is expected to be around 20% to 30% of Global production Cement Road Map for India - WBCSD & IEA 17

14 Key findings Industry achieved CO 2 emission levels of 719 kg in 2010 from 1120 Kg in 1996 In absence of appropriate technological/ policy measures, CO 2 emissions are projected to reach 488 Mt CO2 (LD) and 835 Mt CO 2 (HD). Technologies, policy framework and investment needs outlined in roadmap could limit the CO 2 emission to 275 Mt CO 2 (LD) and 468 Mt CO2 (HD) Achieving Milestones would enhance energy security by saving 377 PJ to 485 PJ energy by 2050 Additional investment needed to reach target emission envisioned in the roadmap is between USD 29 and USD 50 billion Social acceptance, Political will, Policy development and Financial support is key to ensure widespread deployment and implementation 18

15 Per Capita Cement Consumption Still Low Despite being the 2 nd largest producer, the per capita cement consumption in India ranks very low at 191 kg. compared to world average of 513 kg. A long way for India to catch up World s average per capita cement consumption Major thrust being given by Govt. of India for Infrastructure Development 19

16 12th Five Year Plan Working Group ( ) Estimated Cement Demand Projections & Way Forward Year High Scenario Cement Capacity Cement Production (Mt.) 20

17 Challenges Ahead Indian Cement Industry Level of substitution with Alternative Fuels very small less than 1% Barriers & Constraints to overcome for improvements: - Technical issues - Regulatory issues - Economics of usage - Health & Safety issue - Liability & risk mitigation - Fixed control & monitoring - Supply/Logistics/Transport issues - Stake holder s perception & communication 21

18 Levers of CO2 Reduction LEVER Expected Kg CO2 Reduction/T of Cement 1% Reduction of Clinker Factor % AFR TSR Increase MJ / T of Thermal Energy Saving < 1 Reduction of 1 KwH Energy

19 Journey to realize our vision by 2050 Parameter Clinker Factor Electric Intensity of Cement Production (KwH/T of Cement) High Demand Case Thermal Intensity of Clinker Production (Kcal/kg Clinker) Alternative Fuels use (asa share of thermal energy consumption) (%) T CO2/T of Cement

20 Vision Develop Low-Carbon Technology Roadmap for the Indian Cement Industry by identifying the key levers, technologies, necessary policy and financial support so that it could lead to direct emissions reduction from 0.63 t CO2/t of Cement (excluding emissions from CPP) in 2010 to 0.35 t CO2/t of Cement in 2050.

21 Thank you It is towards.. 25

22 Thank you Yes, it is towards.. 26