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The demand was created by the economic reforms that started in early 1990s

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Sumit Banerjee, Vice Chairman, Reliance Cementation, discusses the cement industry from its infancy to growth, prospects of value-added products, environmental issues and future in an interview with Indian Cement Review.What was the major impact of decontrol? The most favourable impact of decontrol was that it pushed the industry’s growth to a higher trajectory. The process began in 1982 with partial decontrol and by 1989 the industry was completely out of government control. Had the industry been under control, prices would have still remained administered and, it would have not grown enough.Post-delicensing what course did the cement industry take in terms of capacity and demand? The capacity build-up happened in the 1990s, which was necessary to meet the increasing demand generated by liberalisation of the Indian economy. The buoyant economic growth and step up in investments created enormous demand for cement, which attracted investment into the cement industry. Increasing number of players and market determined pricing resulted in greater competitiveness, higher efficiency and increased productivity. The economies of scale expanded. The industry started setting up of one million tonne capacity plants, which was a complete novelty at that time. On hindsight, one could say that the industry did not do much for promoting demand. One more interesting thing that has emerged from decontrol is that India today is the second largest cement producer in the world and also the most efficient producers in terms of blended cement and therefore, of fuel and energy consumption.What were the factors for attracting investments in cement? The first point is the demand. Post delicensing, the cement industry could generate surplus cash, which they reinvested in setting up new capacities. Money was spent on state-of-the-art plants, innovation, expansion, etc. However, the demand was created by the economic reforms that started in early 1990s. Cement is one of the industries that made most of this opportunity.What is the comparative cost of production viz-a-viz other countries like China, given the increase in mining lease, royalty, coal prices in recent years?To compare costs of cement production across geographies, one should consider the differences in cost of labour, power, interest, taxation inherited by different economies. Hence the comparison should really be done considering two parameters – one cement price and, the other profitability of the cement industry in those economies. Prima facie, going by the efficiency of large cement plants, India should be in the top quartile of cost planet globally. There would be very few countries where the cost could be lower. China is one of those countries, where the comparative cost would be lower. But of course there are few reasons to it. Firstly, the interest cost is much lower and second there is a lot of inland water transportation there. Nevertheless, profitability of many Chinese cement companies is much lower as compared to India. Indonesian cement companies are quite profitable and so are the companies in New Zealand which are even more profitable. But the highest cement prices are in New Zealand although the market there is quite small.In India, there are certain things that work against the industry. Here, tax incidence is very high and logistic efficiency is low. In China and USA, cement is hardly hauled by road over long distances. There cement is transported in bulk, by waterways and, only the last mile is by road. So logistics cost, which is one of the large components of the cost structure in India, is lower in these countries, on apple to apple basis.What about input costs?Regarding energy, the Indian cement companies have somehow managed to resolve the problems. For example, look at the captive power plants. Nowhere in the world, power plants of 30 MW or 60 MW are set up for captive use. Indian cement companies have time and again been able to justify captive power plants on the twin considerations of cost & reliability. To address the issue of high coal cost, high power cost, the industry has found solutions in other areas of the cost structure. For example, India has reduced cost through adoption of blended cement. India is the highest amongst the major cement producing countries in terms of blending ratio, and is the lowest in the clinker factor. Blended cement, both fly-ash and slag blends, have been very well accepted in many applications. Ash blending can go up to 35 per cent while in case of slag it can go up to 55 per cent.What about composite cement, are they cheaper than blended?Composite cement is a blend of both flyash and slag. The Bureau of Indian Standards as of now, has approved only blends of either flyash-based PPC or slag-based PSC cement. In Europe, America and in some of the Asian countries, composite cement has already been approved, with controls on the proportion of blending depending on the properties required for different applications.Bureau of Indian Standards is a body where all the stake holders come from different spheres comprising of users, manufacturers, technical experts, etc. So far, in BIS, there is no unanimity on introduction of composite cement. But I guess it will be only a matter of time when composite cement will also be introduced in India.What are the growth drivers for cement in coming years? I think the growth drivers would be infrastructure, industrial, commercial and housing. Urban housing will not show magical growth while industrial and commercial growth will be tardy. Our big hope is pinned on infrastructure and rural housing. A good monsoon this year and year on year, will also generate demand growth for rural housing.What is the proportion of branded and unbranded cement?Cement is a branded commodity in India because 80-85 per cent is still sold in bags. Cement is sold in retail, thus it has to be branded. Even bulk buyers prefer branded cement. The buyers trust a given brand for quality and are therefore ready to pay premium price for top brands. There are some national brands which are lesser known in some regions while there are localised brands which perform well since they are regional leaders. There is brand hierarchy in every market, but in the retail segment there is no cement without a brand name.What about value-added products? Are they catching up?Apart from ready-mix concrete (RMC) the demand for value-added products are very low in India. Prefab which includes concrete pavements, concrete hume pipes, railway sleepers, etc are termed as concrete products. Currently, the market size of these concrete products is very small but has tremendous potential to grow. There are countries like Netherlands, that are leaders in concrete products, where the houses are completely built using prefab concrete whereas, in India most constructions are still made using on-site concrete.Are cement companies foraying into prefab business, especially RMC? Cement companies are not that keen on investing in the prefab business because of its small current market size. Ultimately, the concrete product will become a value-added product and will have to be made nearer to the consumption point. Therefore, smaller players will develop this segment, like in case of RMC. RMC industry has grown faster than cement consumption. If cement consumption is growing at 5-9 per cent, RMC is growing at 25-30 per cent, particularly in larger cities. Other value-added segments are insignificant today.RMC is a low capital industry but profit margins are absolute wafer thin. An RMC plant can be set up by investing Rs 1.5 crore to Rs 5 crore. There is no entry barrier at this cost. In terms of the growth, the future is bright. Today the RMC penetration has just touched 10-15 per cent. The returns will maximize when this grows beyond 50 per cent, and also industry consolidation happens.What are the environmental issues facing the cement industry? Cement industry, globally has got a bad name in the climate change debate, because it generates 4-5 per cent of the CO2 globally. This apart, the most important environmental benefit of cement manufacturing is the possibility of incineration of hazardous materials. In Europe, the debate is intense and companies are keenly looking at alternative sources of disposal of these hazardous materials. So, with the pressure of CO2 and the urgent need for safe disposal of hazardous material, European companies have recognised that cement kiln is a better way to dispose hazardous wastes instead of an incinerator and this has been technically verified. In Europe, rules on hazardous waste disposal are very stringent. In India, the rules are inadequate, but they will become tough over time, opening up this as a great opportunity for the cement industry.What about use of green energy in cement industry? To begin with ‘Green Energy’ is a debatable subject because of its unclear definition. For example, I would state that bio-fuel is not green. Green energy will rather include all those sources that can substitute fossil fuel or non-renewable sources, like wind, solar and, hydel power. They are green because they serve two purposes. Firstly, they are non depleting natural resources, and secondly they do not generate CO2. In case of cement industry, green energy will be used only when there is permitting and regulatory environment which will incentivise its use. The beginning has been made but in a small way. We have few examples of companies like ACC and Madras Cement, which have set up wind farms.In Europe, there are cement companies completely running on non-conventional fuels and many plants have substituted conventional fuels to the extent of 25-30 per cent. In India, the substitution rate has just reached 1-2 per cent.Many of the upcoming projects have captive power plant? Will there be cases where wind/solar power plants will come up meet all the energy needs? Unless the permitting and regulatory environment nudges investment in that direction, nothing magical will happen. There will only be stray cases of green energy usage in cement plants. In a smaller move, a legal requirement is being introduced wherein any power generator using conventional sources will have to generate a certain percentage of power from green sources or, will have to buy credit from other green generators. To make this smoother, there has to be a market for credits of green power generation. There is huge investment potential in solar power and when these plants come up, the credit market for green power could open up.About Reliance Cement Reliance Cement is setting-up its first two cement plants – one each in Madhya Pradesh and Maharashtra with a combined capacity of 10 million tonnes a year with satellite grinding plants. Financial closure for one has been achieved. Land has already been acquired and, letters of intent for the major & critical equipment issued. The construction work will begin in the current financial year and will be completed by 2013.

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Concrete

We track our energy consumption and water usage

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Nitin Jain, Unit Head – Integrated Plant, Nimbahera, Wonder Cement talks about how they are setting new standards for environmental stewardship in the industry.

Can you provide an overview of your company’s current circular economy initiatives and how they are integrated into the cement manufacturing process?
In recent years, the manufacturing sector has made significant progress in various areas. However, there’s an ever-increasing demand for solutions that are both environmentally responsible and economically viable. This is where Wonder Cement has carved out a distinctive niche. Wonder Cement has positioned itself as an industry pioneer, offering products that redefine quality standards in cement manufacturing. Their cement is engineered to deliver exceptional strength and durability, while also incorporating sustainable practices in its production. This combination of high performance and environmental consciousness sets Wonder Cement apart in a competitive market.
By focusing on innovation, we are not just meeting current industry needs, but actively shaping the future of sustainable construction. Their approach demonstrates how forward-thinking companies can drive positive change in the building materials sector, paving the way for more resilient and eco-friendly infrastructure. Wonder Cement is actively adopting circular economy strategies to reduce its ecological footprint and lead the way in sustainable cement production. By implementing innovative recycling and resource efficiency measures, the company is working to transform its manufacturing processes and promote environmental stewardship in the industry.

Utilisation of Alternative Fuels (AF) plays a pivotal role in advancing the circular economy within the cement industry. Wonder Cement is utilising waste materials such as plastics, RDF, MSW, Pharma waste, FMCG products, Hazardous industrial by-products, and biomass into the production process, thereby significantly reducing its reliance on traditional fossil fuels.
Utilisation of alternative raw materials in the cement industry is a key strategy for enhancing sustainability and resource efficiency. Wonder Cement has substituted traditional raw materials like limestone with industrial by-products such as fly ash, marble slurry, chemical gypsum, red mud, mine telling reject, alumina slat, iron sludge, etc. Wonder Cement not only reduces its reliance on natural resources but also mitigates environmental impacts.
Wonder Cement has embarked on a pioneering endeavour by integrating a Waste Heat Recovery System (WHRS), epitomising the circular economy paradigm. By harnessing the excess thermal energy generated during the clinkerisation process, the WHRS ingeniously repurposes this residual heat to produce electricity. This innovative closed-loop system significantly amplifies energy efficiency, substantially diminishes reliance on external power sources, and exemplifies a beacon of sustainability in the cement industry.
Low-carbon cement production is an innovative approach by Wonder Cement aimed to reduce the carbon footprint associated with traditional cement manufacturing. This process involves several strategies to minimise CO2 emissions, which are typically high due to the energy intensive nature of clinker production. The production of blended cement, Portland Pozzolana Cement (PPC) involves mixing clinker with supplementary materials like fly ash. This not only reduces CO2 emissions but also enhances the durability and performance of the cement.
Recycling and reuse: Wonder Cement is managing wastewater, ensuring environmental protection, and promoting sustainable practices by Effluent Treatment Plant (ETP) and Sewage Treatment Plant (STP). Also, bed ash and fly ash generated from Captive Power Plant are used as a raw material for cement production.
Sustainable mining practices: Wonder Cement has adopted fully mechanised opencast limestone mining, utilising advanced technology which provides a highly efficient and environmentally responsible method for resource extraction. State-of-the-art machinery enables controlled blasting, effective vibration management, and noise reduction, significantly minimising the environmental impact of mining operations.
Research and development: Wonder Cement is making significant investments in research and development to find alternatives to traditional fossil fuels such as coal and pet coke etc. as well as to explore substitutes for raw materials like limestone, mineral gypsum etc. used in clinker and cement production. These initiatives aim to enhance sustainability by reducing dependency on non-renewable resources and minimising the environmental impact of cement manufacturing. By developing innovative solutions and alternative materials, Wonder Cement is paving the way for a more eco-friendly and efficient approach to cement production.
Digital technologies: Advance technologies are transforming the cement industry by enhancing efficiency, reducing costs, and improving sustainability. In Wonder Cement, we have developed advanced predictive maintenance for equipment monitoring. With the help of predictive maintenance system AI/ ML algorithms analyse data from sensors on machinery to predict potential failures before they occur.

This helps in scheduling maintenance activities proactively, reducing downtime and extending equipment life.
Wonder Cement has introduced AI technology to optimise operations in cement kiln, raw mill and cement mill. By integrating AI technologies into cement kilns, raw mills, and cement mills, Wonder Cement has achieved greater operational efficiency, improved product quality and enhanced sustainability. AI-driven insights and automation help in optimising processes, reducing energy consumption, and maintaining equipment reliability, leading to a more efficient and environmentally friendly production process.
Wonder Cement recognises the critical role of Operational Technology (OT) in enhancing efficiency and productivity within the manufacturing sector. Understanding that the importance of robust OT cybersecurity measures cannot be overstated, we are actively working to safeguard our complex industrial processes from potential threats. By implementing a comprehensive security strategy and adhering to best practices, Wonder Cement positions itself as a future leader in protecting its operations, employees, and data, thereby ensuring uninterrupted production and resilience against the growing threat of cyberattacks.
The company leverages cutting-edge automation in its state-of-the-art robotic laboratory, enabling the complete automation of processes from sample collection through to the analysis of the final product, effectively eliminating the need for manual intervention. Additionally, Wonder Cement’s integration of an advanced cross-belt analyser system represents a strategic initiative aimed at achieving circular economy objectives by enhancing the efficiency and sustainability of natural resource utilisation.
Apart from the core technical prowess, our organisation has set a new benchmark in the cement industry by leading the way in digital transformation. By pioneering the use of advanced technology, the company has successfully implemented paperless systems across logistics, inventory management and financial accounting, establishing a new standard for operational excellence and efficiency.

What are the main challenges you face in implementing circular economy practices in the cement industry, and how are you addressing them?
Implementing circular economy practices in Wonder Cement involves navigating several challenges.

  • Consistent quality of waste materials: Securing high-quality waste materials that meet rigorous standards is challenging due to variability. We address this by implementing stringent quality control measures and developing strong partnerships with suppliers to ensure reliability.
  • Financial constraints: Adopting circular economy practices often requires significant investment in new technologies and processes. We focus on projects that provide substantial economic and environmental benefits to manage financial constraints.
  • Regulatory challenges: Strict regulations around the use of certain waste materials can pose obstacles. We proactively collaborate with regulatory authorities to ensure compliance and advocate for supportive policies that facilitate the transition to circular economy practices.

How does your company incorporate waste materials and by-products into the cement production process to promote resource efficiency?
Wonder Cement integrates a diverse array of waste materials and by-products into its cement production process to boost resource efficiency. We incorporate various waste materials, including plastics, Refuse-Derived Fuel (RDF), Municipal Solid Waste (MSW), pharmaceutical waste, FMCG by-products, hazardous industrial residues, and biomass. This approach significantly reduces our dependence on conventional fossil fuels. Additionally, Wonder Cement has partially substituted traditional raw materials like limestone, mineral gypsum etc. with industrial by-products such as marble slurry, chemical gypsum, red mud, mining reject, alumina slat, iron sludge etc. This strategy not only lessens our reliance on natural resources but also mitigates environmental impacts. The use of fly ash in Portland Pozzolana Cement (PPC) is a key example, supplementing clinker to lower CO2 emissions while enhancing the durability and performance of the cement.

Can you discuss specific projects or partnerships your company has undertaken to advance circular economy principles in cement manufacturing?
Wonder Cement is leading the way in advancing circular economy principles through several innovative projects and partnerships. We have collaborated with local municipalities to use municipal solid waste (MSW) as an alternative fuel in our kilns. Additionally, we have teamed up with pharmaceutical and FMCG companies to process waste material as alternative fuels into our kilns. These partnerships help divert waste material, convert it into energy, and reduce our dependence on traditional fossil fuels. These collaborations are crucial in developing new materials and technologies that further enhance the sustainability of our operations.

What role do recycling and reuse of materials play in your circular economy strategy, and can you provide examples of successful implementations?
Recycling and reuse are key components of Wonder Cement’s circular economy strategy. We prioritise the integration of recycled industrial by-products and waste materials, including fly ash, marble slurry, chemical gypsum, red mud, mining rejects, alumina salt, and iron sludge. Additionally, we manage wastewater through our Effluent Treatment Plant (ETP) and Sewage Treatment Plant (STP), ensuring environmental protection and promoting sustainable practices. Bed ash and fly ash from our Captive Power Plant are also utilised as raw materials in our cement production process.

How do you measure the impact and success of your circular economy initiatives, and what key metrics are used?
Wonder Cement measures the impact and success of our circular economy initiatives using a variety of environmental, operational, and financial metrics. Key performance indicators include the percentage of alternative raw materials and fuels used in production, reductions in CO2 emissions per tonne of cement and the amount of waste diverted from landfills through recycling and reuse. We track our energy consumption and water usage to evaluate the efficiency of our resource management practices. Our integrated management systems provide real-time data and insights on these metrics. Regular audits and assessments help us gauge the effectiveness of our initiatives, identify areas for improvement, and refine our strategies. The insights gained from these evaluations guide the setting of new sustainability targets and the continuous enhancement of our practices.

What innovations or technologies are being developed or utilised by your company to support circular economy practices in cement production?
Advanced technologies are revolutionising the cement industry by improving efficiency, lowering costs, and boosting sustainability. At Wonder Cement, we have implemented advanced predictive maintenance software for equipment monitoring. Our predictive maintenance system uses AI/ ML algorithms to analyse data from machinery sensors, enabling us to predict potential failures before they occur. This proactive approach helps schedule maintenance activities, reduce downtime and extend equipment life. Additionally, we have integrated AI technology to optimise operations across kiln, raw mill and cement mill. This integration has led to improved operational efficiency, enhanced product quality, and greater sustainability. AI-driven insights and automation optimise processes, reduce energy consumption, and ensure equipment reliability, contributing to a more efficient and environment friendly production process.

Looking ahead, what are your company’s strategic priorities for enhancing circular economy practices, and what future projects or goals do you have in this area?
Wonder Cement is committed to enhancing circular economy practices through several strategic priorities. We plan to increase the use of alternative raw materials and fuels in our production processes and expand our collaborations with industries that produce compatible by-products. Our goal is to develop new products with higher recycled content, such as eco-friendly cement blends, to deliver additional environmental benefits. We are conducting research and development to explore the possibility of synthetic gypsum as a substitute of mineral gypsum and many more such alternative raw materials. By focusing on these priorities, we aim to lead the cement industry in circular economy practices and contribute to a more sustainable future.

– Kanika Mathur

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Concrete

Energy costs and supply are volatile

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Vikas Garg, Energy Manager, Udaipur Cement Works Ltd (UCWL), discusses sustainability, cost reduction and meeting regulatory requirements while maintaining high production standards.
Provide an overview of your company’s current initiatives and strategies to enhance energy efficiency in cement production.
Enhancing energy efficiency in cement production is crucial for reducing costs, minimising environmental impact, and meeting regulatory requirements. Our company is adopting various initiatives and strategies to improve energy efficiency like:
  • Substitution of fossil fuels and raw material with alternative fuels like waste derived fuels and industrial by-products.
  • Implementation of ML/AI based process optimisation systems to optimise the kiln and grinding operations.
  • Implementing EMS for identifying areas for improvement, and ensuring energy efficiency goals are met with.
  • Improvement in kiln efficiency by upgrading or retrofitting kilns with more efficient preheaters and pre-calciners to reduce the amount of fuel required, leading to energy savings.
  • Energy efficient grinding technologies by replacing traditional ball mills with vertical roller mills and using high-efficiency separators in grinding circuits.
  • Focus on increasing blended cement.
What are the key challenges your company faces in implementing energy-efficient practices in the cement manufacturing process?
Implementing energy efficient practices in the cement manufacturing process presents several challenges. Here are some of the key challenges our companies often face:
  • The upfront costs for adopting energy-efficient technologies can be substantial. For companies with tight budgets or operating in low-margin markets, capital investment can be prohibitive.
  • Retrofitting existing equipment to accommodate new technologies may require extensive modifications, leading to downtime and additional costs
  • The regulatory landscape for energy use and emissions is constantly changing.
  • Energy costs and supply are volatile, making it difficult to predict the return on investment for energy-efficient initiatives.
  • Measuring the actual energy savings and verifying the effectiveness of new technologies are sometimes complex.
  • Maintaining energy efficiency measures without compromising production in high demand periods is challenging.
How do advancements in technology contribute to improving energy efficiency in your cement plants? Can you provide some examples?
Advancements in technology play a crucial role in improving energy efficiency in cement plants. Here are some ways in which these
technologies contributed:
  • Implementation of ML/AI based process optimisation system helped in optimising kiln and grinding operations
  • Waste Heat Recovery (WHR) systems help in reducing energy cost and dependency on grid, replacing old ball mills with a VRM reduced energy consumption in the grinding process by up to 30 per cent.
  • IoT-enabled sensors monitor energy use across different processes and automatically adjust operations to minimise energy waste, such as reducing power to idle equipment or optimising lighting and HVAC systems.
  • The use of multi-channel burners, which optimise the mix of primary and secondary air, improved combustion efficiency in the kiln, reducing energy use and emissions.
  • EMS provided an integrated platform for monitoring, analysing, and optimising energy use across the entire plant. It helped in identifying energy-saving opportunities and track the performance of implemented measures.
  • Floating solar technology improved overall renewable energy integration.
What role does renewable energy play in your overall strategy for energy efficiency, and how is it integrated into your cement manufacturing operations?
Renewable energy plays a significant role in enhancing energy efficiency and reducing the carbon footprint in cement manufacturing. Integrating renewable energy into cement operations aligns with broader sustainability goals and helps in mitigating the environmental impact of the industry. We have reduced our needs of electricity from the grid up to 50 per cent by utilising renewable energy.
Can you discuss any specific projects or upgrades your company has undertaken to reduce energy consumption and increase efficiency in your cement production facilities?
Cement companies have undertaken various projects and upgrades to reduce energy consumption and increase efficiency in their production facilities. Here are some specific examples of such initiatives:
  • Alternative Fuels and Raw Materials (AFR)
  • Installation of Vertical Roller Mills (VRM)
  • Modifications in Preheater and Kiln Burners.
  • Energy Management Systems (EMS)
  • Clinker Substitution Projects
  • ML / AI based Digitalisation and Automation Projects
  • Solar Power Integration
  • Modifications in Waste Heat Recovery (WHR) Systems to increase generation.
How do you measure and monitor energy efficiency in your cement manufacturing processes, and what metrics are most critical for your company?
Measuring and monitoring energy efficiency in cement manufacturing is essential for optimising operations, reducing energy consumption, and minimising environmental impact:
  • Energy Management Systems (EMS): EMS track energy consumption at different stages of cement production, identify inefficiencies, and suggest corrective actions.
  • Key Performance Indicators (KPIs)
  • Critical KPIs:- Specific Energy Consumption (SEC):
  • kWh/tonne of cement, kcal/kg of clinker
  • – CO2 emissions per tonne of cement
  • Fuel mix ratio
  • Clinker factor
  • Energy audits and benchmarking audit results are compared with industry benchmarks to evaluate performance and set improvement targets.
  • Data analytics and reporting: Data collected from various monitoring systems is analysed to generate detailed reports on energy performance.
  • Energy performance certificates and certifications such as ISO 50001.
  • Energy forecasting and planning.
What partnerships or collaborations has your company engaged in to promote and enhance energy efficiency within the cement industry?
UCWL is engaged in partnerships and collaborations to promote and enhance energy efficiency within the industry.
  • Collaborations with technology providers of ML/AI based process optimisation systems.
  • Global cement and concrete association (GCCA).
  • National cement associations: collaborating with national cement associations allows companies to contribute to and benefit from industry-wide efforts to improve energy efficiency through shared knowledge, resources and advocacy.
  • Supply chain collaborations like green procurement practices and efficient transportation networks.
  • Collaborating with academic institutions for educational programs, workshops, and research can help develop the next generation of energy-efficient technologies and practices in the cement industry.
  • Carbon trading and offset programmes.
How does your company balance the need for energy efficiency with maintaining high production levels and meeting market demands?
Balancing energy efficiency with maintaining high production levels and meeting market demands is a critical challenge for cement companies. Achieving this balance involves strategic planning, process optimisation, and continuous improvement.
  • Optimising production processes by using sensors and automation systems to monitor and adjust real time operation.
  • Flexible energy management by participating in demand response programs which can help manage energy use during peak periods and using energy storage systems to manage fluctuations in energy supply.
  • Balancing production and efficiency targets by setting key performance indicators (KPIs) for both production output and energy efficiency ensuring that both goals are tracked and managed effectively.
  • Employee training and engagement.
  • Implementing best practices and industry standards.
  • Strategic production planning using forecasting tools to predict market demand and adjust production schedules accordingly.
Looking ahead, what are your company’s strategic priorities for further improving energy efficiency, and how do you plan to address future energy challenges in the cement industry?
UCWL is likely to focus on several strategic priorities to further improve energy efficiency and address future energy challenges. These priorities typically align with broader sustainability goals and emerging trends in technology and regulation such as:
  • Expanding renewable energy integration because increasing the use of renewable energy sources helps reduce reliance on fossil fuels and lower carbon emissions.
  • Accelerating technology adoption by integrating digital tools, automation and energy-efficient equipment
  • Enhancing waste heat recovery and improving waste heat recovery systems can significantly reduce energy consumption.
  • Researching and producing low-carbon cements that require less energy to produce and reduce overall emissions.
  • Improving energy efficiency in existing operations by energy audits and energy management systems.
  • Adopting circular economy principles by implementing practices to recycle and reuse materials within the production process, such as
  • using industrial by-products as supplementary cementitious materials.
  • Strengthening regulatory and industry collaborations working with industry peers and organisations to share best practices, collaborate on research, and develop common standards for energy efficiency.
  • Addressing future energy market dynamics by developing flexible energy procurement strategies to manage cost fluctuations and ensure stable energy supply.
– Kanika Mathur

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Concrete

Renewable energy is a cornerstone of our strategy

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MM Rathi, Joint President – Power Plants, Shree Cement, speaks about their comprehensive approach to sustainability, which includes renewable energy and cutting-edge technologies.

Can you provide an overview of your company’s current initiatives and strategies to enhance energy efficiency in cement production?
At Shree Cement, we are committed to advancing energy efficiency in cement production through a comprehensive and forward-thinking strategy. We recognise that energy efficiency is crucial not only for reducing operational costs but also for minimising our environmental impact. To this end, we have undertaken several initiatives and adopted innovative strategies to enhance energy efficiency across our cement production processes. We have progressively integrated the use of alternative fuels, such as biomass and waste-derived fuels, into our production process. This not only reduces our dependence on traditional fossil fuels but also lowers greenhouse gas emissions.
Moreover, at the project stage itself, we select and implement energy-efficient drives and key equipment, including fans, compressors and
other critical components, to optimise performance and reduce overall energy consumption. Through advanced data analytics and real-time monitoring, we have optimised key processes such as clinker production, raw material grinding and cement milling, which has led to significant reductions in specific energy consumption.
We conduct Computational Fluid Dynamics (CFD) analysis for our plants right before project execution as a best practice to optimise energy efficiency and ensure informed decision-making in our energy-saving initiatives. We also implement regular energy audits to continuously assess and optimise our energy consumption. These audits help identify areas for improvement, track progress and ensure that our energy efficiency measures are effective.
We are proud to have achieved a renewable energy share of 55.9 per cent in FY 23-24, the highest among Indian cement industries. This achievement underscores our commitment to reducing our carbon footprint and reliance on non-renewable energy sources. Our total power generation capacity is 1 GW, with 50 per cent derived from solar, wind and Waste Heat Recovery (WHR), 30 per cent from Independent Power Producers (IPP), and the remaining 20 per cent from coal-based captive power plants. We have invested in Waste Heat Recovery (WHR) systems with a total capacity of 245 MW across several of our plants. These systems capture waste heat from the production process and convert it into electrical energy, reducing our overall energy consumption and enhancing efficiency. Further, we are exploring emerging technologies i.e. battery energy storage, pumped hydro energy storage, electric trucks etc.
As part of our long-term sustainability goals, we have joined the RE100 initiative, pledging to achieve 100 per cent renewable electricity by 2050. This commitment reflects our dedication to leading the industry in transitioning to a low-carbon future. In alignment with global climate goals, we have set ambitious targets to reduce our Scope 2 emissions by ~27-28 per cent and Scope 1 emissions by ~12-13 per cent by 2030, compared to 2019 levels. These targets highlight our proactive approach to mitigating climate change.

What are the key challenges your company faces in implementing energy-efficient practices in the cement manufacturing process?
While we are committed to enhancing energy efficiency, a few challenges persist. For example, the use of alternative fuels is impacted by supply chain issues and resource availability. Fluctuations in alternative fuel supply (quantity and quality) can disrupt the consistent implementation of energy-efficient practices. Also, upgrading infrastructure to incorporate energy-efficient technologies, including the higher costs of battery and pump storage systems, requires substantial capital investment. There could also be technological constraints related to compatibility and operational disruptions when integrating new, energy-efficient technologies into existing plants. Addressing these challenges requires a thorough approach to enhance energy efficiency throughout the cement manufacturing process, which our engineers are constantly endeavoring to find solutions to.

How do advancements in technology contribute to improving energy efficiency in your cement plants? Can you provide some examples?
Technological advancements are crucial for improving energy efficiency at our cement plants. We leverage Industry 4.0 technologies, including centralised data servers and remote data monitoring, to optimise operations. These technologies provide real-time insights and control over plant performance, enabling precise energy management and reducing downtime. Also, ISO 50001-certified energy management systems provide a structured approach to continuous energy performance improvements.
Additionally, our manufacturing plants leverage the latest and state-of-the-art equipment such as waste heat recovery systems, MVDs/VFDs, IE4 motors, centrifugal compressors, etc. Our meticulous planning and adoption of energy-efficient technologies have helped us overachieve the targets that were notified under the various Perform, Achieve and Trade
(PAT) schemes.

What role does renewable energy play in your overall strategy for energy efficiency, and how is it integrated into your cement manufacturing operations?
Renewable energy is a cornerstone of our strategy for energy efficiency and sustainability at Shree Cement. Our commitment to integrating renewable energy is reflected in our energy mix, where renewable sources account for 55.9 per cent of our total energy consumption. This significant share has enabled us to avoid 0.94 million tons of CO2 emissions, demonstrating our impact on reducing greenhouse gasses. Our total power generation capacity is 1 GW, with 50 per cent derived from renewable sources, including solar, wind and WHR.
WHR systems, with a capacity of 245 MW, capture and reuse heat generated during production, converting it into electricity. This integration supports our goal of transitioning away from non-renewable fossil fuels and aligns with our commitment to achieve 100 per cent renewable electricity by 2050.
Our energy management strategy leverages renewable energy to stabilise and optimise our energy supply. We are exploring advanced energy storage solutions, such as battery and pump storage systems, to manage the variability of renewable sources and ensure a consistent energy supply. Renewable energy is pivotal in achieving our sustainability targets, including substantial reductions in Scope 1 and Scope 2 emissions. By increasing our renewable energy share, we have significantly lowered our carbon footprint and contributed to global climate goals.

Can you discuss any specific projects or upgrades your company has undertaken to reduce energy consumption and increase efficiency in your cement production facilities?
Shree Cement has undertaken several strategic projects to reduce energy consumption and enhance efficiency in its cement production facilities. A key focus has been the integration of alternative fuels and raw materials into the production processes. The company has made notable progress by utilising hazardous waste, Municipal Solid Waste (MSW) in the form of Refuse Derived Fuel (RDF), and biomass waste such as crop residue. We have been steadily increasing our replacement of fossil fuels with agro-waste and have replaced over +300 billion kCal in FY24. This shift significantly reduces reliance on traditional fossil fuels and promotes the use of renewable resources in cement manufacturing.
We are the pioneers within the cement industry in implementing WHR system to capture waste heat and convert it into usable electricity. Having proven its success, as a policy, Shree Cement is implementing WHR systems across all the existing and upcoming kilns.
Further, Shree Cement manufactures blended cement by incorporating fly ash and ground granulated blast-furnace slag (GBF slag), replacing clinker. This approach not only reduces the demand for clinker but also conserves essential natural resources, such as limestone, and lowers fossil fuel consumption, aligning with our sustainability goals. Additionally, we have focused on improving energy efficiency in our operations. We have successfully reduced clinker energy use by approximately 12 to 18 Kcal/kg clinker produced.

How do you measure and monitor energy efficiency in your cement manufacturing processes, and what metrics are most critical for your company?
To effectively measure and monitor energy efficiency in our cement manufacturing processes, Shree Cement employs several critical metrics. The primary metric is Specific Energy Consumption (SEC), which quantifies the energy required per unit of cement produced, typically expressed in kWh per ton. Reducing SEC is a fundamental objective for enhancing energy efficiency.
Thermal energy consumption is also closely monitored, focusing on the energy required for pyro processes, especially in the kiln. This helps identify opportunities to improve fuel efficiency and optimise Pyro process. Similarly, electrical energy consumption is tracked across various plant components, such as grinding mills, process fans pumps and conveyors. Monitoring this metric helps identify potential areas for improvement in electrical energy use. Another metric is cooler efficiency, which measures how effectively cooling air is utilised back in the
pyro processing, which is crucial for lowering operational costs.
Additionally, WHR systems are evaluated for their effectiveness in capturing and reusing waste heat, as higher recovery rates from these systems can significantly reduce overall energy consumption.
Lastly, monitoring CO2 emissions per tonne of cement provides insight into the environmental impact of our production activities and helps us align with our sustainability goals.

What partnerships or collaborations has your company engaged in to promote and enhance energy efficiency within the cement industry?
Shree Cement has adopted a proactive approach in promoting and enhancing energy efficiency within the cement industry through various strategic partnerships and collaborations.
One of the key avenues has been our partnership with leading technology providers and equipment suppliers to integrate advanced energy-efficient technologies into our production processes. These partnerships enable us to access the latest innovations in energy management, process optimisation, and waste heat recovery systems. Besides teaming up with tech companies, we engage with government agencies and regulatory bodies to stay informed about and contribute to energy efficiency regulations and policies. Our participation in public consultations and policy development helps shape industry standards and supports our compliance with energy efficiency mandates.
Shree Cement is part of various sustainability networks and forums that focus on energy efficiency and environmental impact reduction. These networks provide opportunities to learn from peers, share experiences and collaborate on industry-wide sustainability projects.
We are also actively involved in industry associations such as the Cement Manufacturers’ Association (CMA) and the Confederation of Indian Industry (CII). Through these platforms, we participate in knowledge-sharing, best practice exchange and collaborative efforts on energy efficiency and sustainability initiatives across the cement sector. Shree Cement has also joined the RE100 initiative, a global platform of businesses committed to achieving 100 per cent renewable electricity. This collaboration aligns with our goal to transition to renewable energy sources and drives collective action toward sustainability in the cement industry.
These strategic alliances are instrumental in advancing our sustainability goals and driving industry-wide improvements.

How does your company balance the need for energy efficiency with maintaining high production levels and meeting market demands?
At Shree Cement, balancing energy efficiency with high production levels and market demands involves a multifaceted approach. One of the methods is process optimisation. We continuously refine our manufacturing processes using advanced control systems and data analytics. This approach enhances our operational efficiency while maintaining our production capacity, allowing us to meet market needs effectively. Additionally, Shree Cement has established strong energy management systems that monitor energy consumption in real time. This helps us identify areas for savings and reduce waste while sustaining production levels, ensuring optimal energy use.
Furthermore, Shree Cement also invests in innovation by adopting new technologies such as more efficient clinker coolers which enhance energy efficiency and production levels. To manage energy costs and support high production levels, we run our cement mills during the day when our solar plants are operational. For the remaining energy demand, we plan to meet it during off-peak times of the day (TOD). This strategic energy use helps us optimise energy costs while maintaining efficient production.

Looking ahead, what are your company’s strategic priorities for further improving energy efficiency, and how do you plan to address future energy challenges in the cement industry?
Shree Cement is focused on several key strategic priorities to enhance energy efficiency and address future energy challenges in the cement industry. We plan to expand our investments in solar and wind energy projects to further increase our renewable energy capacity, enhance our reliance on clean energy sources and reduce our overall carbon footprint. To ensure a stable and reliable supply of renewable energy, we are exploring solar plants integrated with battery storage systems. This will enable us to store excess solar power and use it during periods of low sunlight, improving energy efficiency and continuity.
We are also exploring the development of pump hydro storage plants as a means to balance energy supply and demand. This technology will help us manage fluctuations in renewable energy generation and enhance our overall energy resilience.
To reduce emissions from our logistics operations, we are looking at electric trucks, which will decrease our reliance on fossil fuels for transportation and contribute to our sustainability goals.
Further, we are making investments to establish a comprehensive, end-to-end solid waste feeding system for the consumption of municipal solid waste to substantially enhance the thermal substitution rate through a pilot at one of the locations. Upon success, this shall be replicated in other units as well.

– Kanika Mathur

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