Low Carbon Roadmap Technology For

Indian Cement Industry

2nd Annual Meeting of Innovation for Cool Earth Forum (ICEF)

Tokyo, Japan

October 7-8, 2015

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Dr. S.K. Handoo Advisor(Tech.),

Cement Manufacturers’ Association

Overview of Cement Industry

Global scenario World’s total production :

• Cement production – 4,180 MTPA (2014)

• Clinker capacity- 3,570 MTPA (2014)

• Cement production accounts for ~ 5% of global CO2 emissions.

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Source: USGS, Mineral Commodity Summaries, January 2015 Source: JRC 2014 Report- Trends in global CO2 emissions- BACKGROUND STUDIES

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Source: JRC 2014 Report- Trends in global CO2 emissions- BACKGROUND STUDIES

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Source: JRC 2014 Report- Trends in global CO2 emissions- BACKGROUND STUDIES

Future Growth Projections - Global

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Source: CSI Data

2nd largest Cement producer in the world

Current installed capacity is more than 380 MTPA

Current cement production about 272 Million Tonnes/year

Average Kiln Capacity is about 4500 TPD

Approx. 7% of India’s man-made CO2 Emissions

India Scenario

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Specific Electric and Thermal Power Consumption of Selected Countries

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Country Specific Electrical Energy

Consumption (KW/ton of Cement)

Specific Thermal Energy Consumption

(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 : CII Publication - Status paper on AFR Usage in Indian Cement Industry , May 2015

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Indian Cement Industry – Change in Pattern of Technology and Energy Efficiency

Year

1950-60 1970 1980 1990 Post 2010

Kiln Capacity

(Tonnes/Day) 300 - 600 600 – 1200 2400 – 3000 3300 – 6000 4500 – 12000

Heat

Consumption

(Kcal/kg

Clinker)

1300 - 1600 900 – 1000 800 – 900 650 – 750 650 – 750

Power

Consumption

(Kwh/Tonne

Cement)

115 - 130 110 - 125 105 - 115 95 - 106 70 - 90

Proactive Cement Industry constantly improves Energy Consumption.

Some plants have become global benchmarks in energy consumption, next

to Japan.

Indian Cement Industry on High Trajectory of Growth

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(Million Tonnes)

2010* 2050

Low Demand Scenario 217 780

High Demand Scenario 217 1361

Cement Demand in various Scenario

10 * Actual Source: CSI Data

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Key Levers Expected Kg CO2 Reduction / T of Cement

1% Reduction of Clinker Factor 7.5 – 9

1% AFR TSR Increase 2 – 3

2.4 kCal/kg Cl of Thermal Energy saving < 1

1 kWh/T Electrical energy reduction ~ 1

Other Levers:

WHR Potential to be fully exploited

Development of new Cements with very low clinker factor

Carbon Capture and storage technologies Source: CSI Data

Levers of Emission Reduction

(Million Tonnes)

Scenario 2010*

2050

Anticipated CO2

emissions in

Business as

usual scenario

Targeted

Performance after

implementation of

all CO2 reduction

levers

Low Demand Scenario 137 493 275

High Demand Scenario 137 860 480

GHG Emissions - Projection

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* Actual Source: CSI Data

Roadmap 2050

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Source: Technology roadmap- Low carbon technology for Indian cement industry- WBCSD/IEA

AFR Usage

Electrical Energy

14 Source: CSI Data

Key Indicators

Clinker Factor

Thermal Energy

15 Source: CSI Data

Key Indicators

Alternative Fuel Resource

• Total Substitution Rate (TSR) of Indian cement industry is about 0.5-1.0% In comparison to some developed countries where it is about 60%.

• For year 2014 - Total Available Raw Material and Alternate Fuel- 436.68 Tonnes

• AFR through Co-processing

• Examples of AFR • Hazardous waste

• Refuse Derived Fuel from Municipal Solid Waste

• Tyre chips

• Biomass

• Industrial plastic

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•About 123 million tyres were produced in year 2013-14.

•Recycling – a small scale option

•High TSR (Upto 50%) can be achieved by co-processing tyre chips in the precalciner

•The calorific content value of tyres is between some 6450kCal/kg and 8000kCal/kg

•1 tonne of coal= .6-.95 tonne of tyre

Tyre chips

•Surplus biomass- 150 MT (2014)

•Easy availability and about 3 times the coal used in Indian cement industry

•Calorific Value Varies From 3000 -4000 KCal/Kg

Biomass

•Plastic consumption in India is about 8 MTPY, out of which, 70% i.e. 5.6 MTPY transforms to waste.

•Effectively destroys non-bio-degradable materials without any additional environmental issue

Industrial plastic

http://www.indiratrade.com/UploadResearch/635522563529111250_Sector%20Report_TYRES_.pdf http://www.cemfuels.com/articles/318-tyres-as-an-alternative-fuel (SOURCE: Action Plan for Enhancing the use of alternative fuels and raw materials in the Indian cement industry) 17

• The National Action Plan on Climate

Change was released by Prime Minister

of India in June 2008

• The Action Plan Outlines 8 Missions

including National Mission for

Enhanced Energy Efficiency (NMEEE)

• The basic objective of the NMEEE

mission is to ensure a sustainable

growth by an approximate mix of 4 E’s,

namely-Energy, Efficiency, Equity and

Environment

National Mission for Enhanced Energy Efficiency (NMEEE)

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2001 2014-2015

Energy Conservation Act enacted

National Action Plan on Climate Change released

Sector studies Commenced to identify DCs

Baseline data collection begins

Financial outlay of over US$20 million approved

National Mission for Enhanced Energy Efficiency (NMEEE) Approved by Ministry of Power

Nation wide Consultation Workshops organised; consultation continues through 2012

NMEEE approved by Prime Minister's Council on Climate Change

Energy Conservation Act amended to make provisions for issue of energy saving certificates, imposition of penalty for non compliance and trading Of ESCerts

Perform, Achieve and Trade (PAT) scheme came into effect; first compliance period begins (2012-2015)

2008 2009 2010 2011 2012

Perform, Achieve and Trade (PAT)

Overview and Elements

Covers 478 plants in 8 energy intensive industry ( Aluminium, Cement, Chlor-alkali, Fertilizer, Iron &

Steel, Paper & Pulp, Textile and Thermal Power Stations), and gate to gate boundary concept adopted.

Energy consumption of these plants was about 1/3rd of the total energy consumed in India in the

baseline year (2009-10).

Large variations in energy intensities of different units in almost every sector

Key Goal :Mandate Specific Energy Consumption improvement

Energy Intensity reduction target for each unit based on its current efficiency in base line (2009-10)

Multi- cycle process –First PAT cycle till 2014-15

Design based on extensive consultations over 2010-12

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Base line Studies completed, Draft PAT Rules prepared and feed back sought on draft targets

Assessment year of First PAT Cycle

Gaining Energy Efficiency

Successful implementation of PAT

CYCLE -1 (2012-15)

Under BEE’s PAT Scheme, Plants

with > 30,000 MTOE of Annual

Energy Consumption covered in the

First Cycle

85 Cement Plants were identified as

Designated Consumers (DCs),

to achieve the Energy Reduction Targets within a

period of 3 years.

The best thermal and electrical energy consumption presently achieved in India is 663 kcal/kg clinker and 59 kWh/t cement which are comparable to the best figures of 650 kcal/kg clinker and 65kWh/t cement in a developed country like Japan.

Overall Target for all 85 DCs is 4.8% Energy Reduction

w.r.t. the Base Level

First Cycle (2012-15) period already completed on 31

March 2015.

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Cement Sector: Baseline and Targets - An Example

Energy Transition for Industry: India and the Global Context, IEA, Jan 2011

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Although Indian

Cement Sector

being at par with

the World best

energy intensity,

but still has agreed

for energy saving

targets of 0.85

million ton of oil

equivalent energy

under PAT

Japan

India

National Target of Energy Saving among all Sectors

S.NO. Sector No. of

Identified DCs

Annual Energy

Consumption (Million

toe)

Share Consumpti

on (%)

Apportioned Energy

Reduction For PAT Cycle-1

(Million toe)

1 Power (Thermal) 144 104.56 63.38% 3.211

2 Iron & Steel 67 25.32 15.35% 1.486

3 Cement 85 15.01 9.10% 0.815

4 Aluminium 10 7.71 4.67% 0.456

5 Fertilizer 29 8.20 4.97% 0.478

6 Paper & Pulp 31 2.09 1.27% 0.119

7 Textile 90 1.20 0.73% 0.066

8 Chlor- Alkali 22 0.88 0.53% 0.054

Total 478 164.97 100.00% 6.686

Total EE Projects planned in 2012-15: 2057

Total anticipated investment : US$ 3095 million

The direct benefit for the participating industries in this period is reductions

in input costs related to energy of approximately US$ 1250 million.

Sectoral Share in Energy Saving Target (%)

(2012-15)

Reduction in India's CO2

emissions by 24 million tons /

year in 2014-15.

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Concept of Target, Compliance, ESCerts & Penalty

If any DC fails to achieve targets, it shall be liable to a

penalty which shall not exceed U$ $ 16000 ( INR 1.0

Million) and, in the case of continuing failure, with an

additional penalty which shall not be less than the price

for every metric ton of oil equivalent of energy ( Appx.

US $ 160) ,that is in excess of the prescribed norms.

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Conclusion

• Energy Savings Potential :

Introduction of Perform, Achieve and Trade (PAT) Scheme for Energy Intensive Industries – improves energy efficiency

– facilitates cost effectiveness by certifying energy saving that could be traded due to its market based mechanism

• Benefits : At the end of first phase of PAT Cycle (2012- 2015) – Energy saving potential of 6.686 million toe for 478 Designated

Consumers

– Reduction in India’s CO2 emissions

» 24 million tons per year in 2014-15

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Waste Heat Recovery

OVERVIEW

Explored potential of WHR in Indian Cement Industry is around 500MW

Approx. Present installed capacity of WHR is around 300 MW.

More than 20 plants have installed WHR , rapid installation by other plants in progress

Up to 22 kWh/t clinker or about 20% of the power consumption of a cement plant can be met by using currently available waste heat recovery technologies without significant changes in kiln operation.

ADVANTAGES

Effective utilization of waste heat, that is otherwise lost in atmosphere.

Saves fuel (coal) & reduces CO2 emissions to significant levels.

Should be credited under Renewable Energy Sector.

Source: Technology Compendium on Energy Saving Opportunities -Cement

Sector report by Shakti foundation, CII and BEE- 2013

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Key Policy Issues

• Energy Efficiency − Incentivizing Super Energy Efficient products

• Alternate Fuel Utilization − Landfill of wastes still prevalent (MSW, Haz and non Haz waste)

− Preprocessing of waste needs encouragement

− Surplus Biomass burnt in the Fields to be used as AF

• Newer types of cement − Composite Cement, Increased substitution in PPC / PSC

• Waste Heat Recovery − High capital cost and no policy support

− According RE status for faster adoption

• Carbon Capture and Storage R&D − Soft financing, innovative financing models, GCF funds

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Key messages

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• Roadmap outlines possible transition path for Indian cement industry to support global goal of halving CO2 emissions by 2050

• BAU: 488 Million tonnes (Mt) CO2 and 835 MtCO2 by 2050 [represents 255% (low demand case) to 510% (high demand case) increase compared to 2010 emissions]

• Roadmap projections: Reduction of direct CO2 emissions intensity to 0.35 tonnes (t) of CO2/t cement in 2050 - about 45% lower than 2010 levels, a saving of between 212 MtCO2 (100% growth) and 367 MtCO2 (240% growth) compared to BAU scenario

• Attainable only with supportive policy framework, technology development and appropriate financial resources invested over long term

• Key levers: Energy efficiency, clinker substitution, alternative fuels and raw materials, Waste Heat Recovery, new technologies (including CCS)

Contact:

Cement Manufacturers’ Association

E-mail: sk.handoo@cmaindia.org, cmand@cmaindia.org

Website: www.cmaindia.org