Putere. Performanta. Pasiune.®

© 2014

Energy efficiency and innovation by industrial co-generation within Holcim RomaniaWaste heat recovery from exhausted gases in cement plants

2014-10-30

© 2014

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

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Cement production

Clinker

1. 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)

Fuels

1 2 3

Limestone and clay/marl

MIC

Cement

� 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

Holcim Romania - 17 years with best available techniques…

Before

After

4© 2014

© 2014

17 Years of modernization and increased efficiency…

2001:

2 kilns (small) - wet5 kilns (small) – dry, stage

preheater

2012:

2 kilns (large) – dry, stage preheater and

precalciners

2,000

3,000

4,000

5,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Sp

ecif

ic t

herm

al

co

nsu

mp

tio

n

[MJ/t

clk

]

95

105

115

125

135

Sp

ecif

ic e

lectr

ic c

on

su

mp

tio

n

[kW

h/t

cem

]

~25% of specific energy consumption

Thermal energy consumptionElectric energy consumption

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…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

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Energy consumption in the cement production process

Raw naterial � Raw meal

Calcination of raw meal � Clinker

Clincker + mineral compenonets � Cement

Consum energie electricaElectric consumption, from which:~ 30% for clinker production

~ 70% for grinding ( raw materials preparation and

cement production)Thermal consumption

~ 20%~ 80%

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Waste heat recovery system from Alesd: How it works?

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• This energy efficiency increasing process is known as industrial co-generation (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.. 900 such systems in cement industry

worldwide (mostly in Asia), 98 % of them using conventional steam

for the waste heat recovery.

Industrial co-generation

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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

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0

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

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• 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 2011-2012 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

Project implementation

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• 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)

Innovation effects (1)

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• 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

Innovation effects (2)

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• 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

Legislative inertia – main barrier for multiplying the industrial co-generation (1)

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• 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 - Perpetummobile???

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

Legislative inertia – main barrier for multiplying the industrial co-generation (2)

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• 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

Holcim activities for overcoming the barriers

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Holcim contribution to achieving the EU targets:20-20-20 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

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Thank you and kind invitation to ….

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……COLLABORATION in order

to solve the present and

furture - national, European

and global challenges!

www.holcim.rooana.dicu@holcim.com