Product development
The raw material dilemma
Published
6 years agoon
By
adminThe refractory industry is looking for a favourable mining policy to reduce import dependency, even as it is skeptical about the quality of domestic raw materials.
India is majorly dependent on imports for finished and unfinished refractories. Steel, chemical, cement and glass are the primary consumers of refractory materials. The total size of the Indian industry is estimated to be anywhere between Rs 6,500-Rs 8,000 crore. And cement industry accounts for 10 per cent of the total. Refractory materials are used for refractory lining in furnaces, kilns, incinerators, and reactors. Refractories are materials that have a high melting point (greater than 1,520 degree Celsius). The two major products of refractories that are commonly used are non-clay refractory and clay refractory. Steel, chemicals, cement, ceramic are glass are the major end-users of refractories. Refractory materials can be made from both, natural and synthetic materials that are generally non-metallic, or combinations of compounds and minerals like alumina, bauxite, fireclays, dolomite, chromite, silicon carbide, magnesite and zirconia.
Market Research Future (MRFR), a market research firm, in its recent report says, "The global refractories market is poised to touch $30,820 million by 2025 at an impressive 4.08 per cent CAGR during the period 2018-2025.
The report continues, "The steep ascension in demand for non-ferrous metals used to manufacture castings for different industries is one of the primary factors contributing to upscaling of the global refractories market. Another vital factor pushing the global refractories market is the extensive use of refractory materials in cement production. Further, augmenting infrastructural developments across the globe is also encouraging the global refractory materials market to capture new heights on the growth chart."
Mordor Intelligence, one of the research analysis firms, says, "The market for refractories is anticipated to register a CAGR of 4.94 per cent during 2019-2024. The growing production of non-ferrous materials, increasing construction activities in emerging markets, and demand coming from the glass industry are the factors driving the market growth."
Mordor Intelligence report also cautions about the hurdles that can hinder the growth. "The increasing environmental awareness, government agencies, and environmental agencies, across the world, are laying down the guidelines regarding the usage and disposal of refractories. This is likely to hinder the market growth."
In terms of consumption, Asia-Pacific is currently the largest consumer of refractories in the iron and steel industry, followed by Europe and North America. China dominates the refractories market in terms of consumption and production, due to the local availability of raw materials, such as magnesite and alumni. Additionally, they are available at cheaper costs, as compared to other producers.
However, another research firm, TechNavio’s analysts, forecasted the Refractory Material market in India to grow at a CAGR of 9.85 per cent over the period 2013-2018.
The industry more or less achieved the forecasted numbers in growth rate. The domestic industry experts expect that in the coming year, India may touch double-digit in growth in the refractory segment. The annual refractory capacity of India is pegged at 1.5 million tonne.
India setting the goal of being a $5 trillion economy clearly indicated that the growth would remain strong for the next few years. Apart from this, the Steel Ministry has increased the production target to 300 million tonne by 2030, and the Cement industry is expected to grow to 700 million tonne.
With government through its Budget 2019 announcements have to give major thrust on infrastructure development. The roadmap till 2022 is laid down with much clarity and significant allocations. The government over the next five years has earmarked allocation of Rs 1 lakh core for infrastructure. The spiralling effect would be seen in steel, cement and allied industries.
Unavailability of raw materials in India and undercutting by Chinese manufacturers are the two main reasons why India imported refractories from China. India is majorly dependent on imports to meets its refractory material demands. China dominates in supplying refractories to India. While the steel industry being the primary consumer, takes 70 per cent of the refractories. Cement accounts for around 10 per cent of the refractories consumption in India.
Sameer Nagpal, CEO, Dalmia OCL said, "Refractory is a critical input with high-temperature application in the manufacturing of iron and steel, cement, glass and non-ferrous metals. Iron and steel account for roughly 70 per cent of the market. The total market size for of refractories in India is estimated to be around 8,000 Cr and cement accounts for around 10 per cent of that."
Impediments
The import from China was impacted when the country revised its mining policy with stricter green norms. The impact was that the import cost of refractories shot up in no time.
Nagpal continued,"Refractories based on magnesia accounts for a lot of imports, as the raw material sources are located outside India. However, as India’s growth ramps up, domestic manufacturers like us are putting up infrastructure to make those also in India."
Mohammed Ismail, DGM Process, Bharathi Cement, said, "the lead time is higher when we are importing from any other country. This could be anywhere between four to six months. The domestic supply can bring down this time to 2-3 weeks." That is not all, he added, "The quality of supplies in the domestic market is yet to come to the level of imported ones. Sure of the quality, the cement players still prefer importing."
Domestic Market
In 2017-18, the refractory industry had seen imports jumped sharply by 40 per cent to Rs 25.29 billion. This is against Rs 18.04 billion registered in 2016-17. This was due to the unavailability of domestic raw materials. However, the sudden development in China has triggered the necessity of developing a domestic supply market for refractories. The price, according to the market experts have seen a spiralling of 30 to 50 per cent, while the raw material cost has escalated by up to 150 per cent. The domestic refractory industry is looking for policy-level interventions and support to grow: import duty exemption, funds for research and development. At the policy level, the industry feels that concerns like uncertain environmental regulations, regulatory duplication, a confusing legal and taxation regime and trade barriers need attention on priority.
Way Forward
Indian refractory industry definitely hopes for a favourable mining policy that will encourage mining in India. This eventually will reduce dependence on China for raw materials. As Nagpal pointed out "A favourable mining policy and revision in duty structure for refractory raw materials can help reduce dependence on imports and build a robust refractory industry in India which can support aggressive growth targets of the Government."
Ease of environmental clearance, land rights simplification and clarity on major and minor minerals for scientific and ecologically sustainable mining is what the refractory industry is looking for co-develop a suitable industry.
– LIZA V
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Indian cement industry is well known for its energy and natural resource efficiency
Published
2 years agoon
November 18, 2022By
adminDr Hitesh Sukhwal, Deputy General Manager – Environment, Udaipur Cement Works Limited (UCWL) takes us through the multifaceted efforts that the company has undertaken to keep emissions in check with the use of alternative sources of energy and carbon capture technology.
Tell us about the policies of your organisation for the betterment of the environment.
Caring for people is one of the core values of our JK Lakshmi Cement Limited. We strongly believe that we all together can make a difference. In all our units, we have taken measures to reduce carbon footprint, emissions and minimise the use of natural resources. Climate change and sustainable development are major global concerns. As a responsible corporate, we are committed with and doing consistent effort small or big to preserve and enrich the environment in and around our area of operations.
As far as environmental policies are concerned, we are committed to comply with all applicable laws, standards and regulations of regulatory bodies pertaining to the environment. We are consistently making efforts to integrate the environmental concerns into the mainstream of the operations. We are giving thrust upon natural resource conservation like limestone, gypsum, water and energy. We are utilising different kinds of alternative fuels and raw materials. Awareness among the employees and local people on environmental concerns is an integral part of our company. We are adopting best environmental practices aligned with sustainable development goals.
Udaipur Cement Works Limited is a subsidiary of the JK Lakshmi Cement Limited. Since its inception, the company is committed towards boosting sustainability through adopting the latest art of technology designs, resource efficient equipment and various in-house innovations. We are giving thrust upon renewable and clean energy sources for our cement manufacturing. Solar Power and Waste Heat Recovery based power are our key ingredients for total power mix.
What impact does cement production have on the environment? Elaborate the major areas affected.
The major environmental concern areas during cement production are air emissions through point and nonpoint sources due to plant operation and emissions from mining operation, from material transport, carbon emissions through process, transit, noise pollution, vibration during mining, natural resource depletion, loss of biodiversity and change in landscape.
India is the second largest cement producer in the world. The Indian cement industry is well known for its energy and natural resource efficiency worldwide. The Indian cement industry is a frontrunner for implementing significant technology measures to ensure a greener future.
The cement industry is an energy intensive and significant contributor to climate change. Cement production contributes greenhouse gases directly and indirectly into the atmosphere through calcination and use of fossil fuels in an energy form. The industry believes in a circular economy by utilising alternative fuels for making cement. Cement companies are focusing on major areas of energy efficiency by adoption of technology measures, clinker substitution by alternative raw material for cement making, alternative fuels and green and clean energy resources. These all efforts are being done towards environment protection and sustainable future.
Nowadays, almost all cement units have a dry manufacturing process for cement production, only a few exceptions where wet manufacturing processes are in operation. In the dry manufacturing process, water is used only for the purpose of machinery cooling, which is recirculated in a closed loop, thus, no polluted water is generated during the dry manufacturing process.
We should also accept the fact that modern life is impossible without cement. However, through state-of-the-art technology and innovations, it is possible to mitigate all kinds of pollution without harm to the environment and human beings.
Tell us about the impact blended cement creates on the environment and emission rate.
Our country started cement production in 1914. However, it was introduced in the year 1904 at a small scale, earlier. Initially, the manufacturing of cement was only for Ordinary Portland Cement (OPC). In the 1980s, the production of blended cement was introduced by replacing fly ash and blast furnace slag. The production of blended cement increased in the growth period and crossed the 50 per cent in the year 2004.
The manufacturing of blended cement results in substantial savings in the thermal and electrical energy consumption as well as saving of natural resources. The overall consumption of raw materials, fossil fuel such as coal, efficient burning and state-of-the-art technology in cement plants have resulted in the gradual reduction of emission of carbon dioxide (CO2). Later, the production of blended cement was increased in manifolds.
If we think about the growth of blended cement in the past few decades, we can understand how much quantity of , (fly ash and slag) consumed and saved natural resources like limestone and fossil fuel, which were anyhow disposed of and harmed the environment. This is the reason it is called green cement. Reduction in the clinker to cement ratio has the second highest emission reduction potential i.e., 37 per cent. The low carbon roadmap for cement industries can be achieved from blended cement. Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Composite Cement are already approved by the National Agency BIS.
As far as kilogram CO2 per ton of cement emission concerns, Portland Slag Cement (PSC) has a larger potential, other than PPC, Composite Cement etc. for carbon emission reduction. BIS approved 60 per cent slag and 35 per cent clinker in composition of PSC. Thus, clinker per centage is quite less in PSC composition compared to other blended cement. The manufacturing of blended cement directly reduces thermal and process emissions, which contribute high in overall emissions from the cement industry, and this cannot be addressed through adoption of energy efficiency measures.
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Presently, our focus is to improve efficiency of zero carbon electricity generation technology such as waste heat recovery power through process optimisation and by adopting technological innovations in WHR power systems. We are also increasing our capacity for WHR based power and solar power in the near future. Right now, we are sourcing about 50 per cent of our power requirement from clean and renewable energy sources i.e., zero carbon electricity generation technology. Usage of alternative fuel during co-processing in the cement manufacturing process is a viable and sustainable option. In our unit, we are utilising alternative raw material and fuel for reducing carbon emissions. We are also looking forward to green logistics for our product transport in nearby areas.
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What are the current programmes run by your organisation for re-building the environment and reducing pollution?
We are working in different ways for environmental aspects. As I said, we strongly believe that we all together can make a difference. We focus on every environmental aspect directly / indirectly related to our operation and surroundings.
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UCWL has invested capital in various environmental management and protection projects like installed DeNOx (SNCR) system, strengthening green belt development in and out of industrial premises, installed high class pollution control equipment, ground-mounted solar power plant etc.
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We are proud to say that JK Lakshmi Cement Limited has a strong leadership and vision for developing an eco-conscious and sustainable role model of our cement business. The company was a pioneer among cement industries of India, which had installed the DeNOx (SNCR) system in its cement plant.
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Published
2 years agoon
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