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Innovation in sustainability

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Sustainable development is a way of organizing society so that it can exist for long. This means taking into account both the imperatives present and those of the future, such as the preservation of the environment and natural resources or social and economic equity.

The production of cement is not an environmentally friendly process. It requires very high temperatures (usually above 1,500?C) and the consumption of large amounts of non-renewable raw-materials. It is estimated that 5??% of all carbon dioxide generated by human activities is derived from cement fabrication. Also many important pollutants are usually generated, such as dioxins and heavy metals, among others. The clinker manufacturing process cannot be substituted as there is no practical alternative to replace limestone.

Engineers use to say that concrete is the second component mostly used by man, just after water. Cement, as a technological material, is very successful, as everyone knows. Many characteristics can be easily cited. First of all, it works very well at room temperature. It is simple to use, easy to shape, and within few hours, renders an ??rtificial??rock, having numberless applications. Cement is used to build simple houses, highways, bridges and more complex systems as dams or nuclear power plants. In fact, it is almost impossible to imagine the world without cement or concrete. Despite such popularity, cement industry faces many challenges due to environmental concerns.

Moreover, large amounts of non-renewable materials are consumed in the process. Many efforts have been made to minimize the impact of these issues. Governments,

industrial sector, researches and other organizations are dealing seriously to improve the sustainability of cement industry.

In the last one hundred years, world has changed enormously in terms of life standards and infrastructure, due in part to cement-based materials.

There is no signal that this trend will change in the forthcoming future.

Present situation

In the 2016 Paris agreement, it was agreed to keep the global temperature increase below 2?C. To achieve this, CO2 emissions will have to be reduced by 80??0% by 2050. As a result, the cement industry faces increasing pressure. The Swedish activist, Greta Thunberg, who has stimulated global concern about climate change, made clear the urgency for action now at the 2019 United Nations (UN) Climate Action Summit. Also one of Europe?? largest insurers has started to insure only companies whose energy consumption uses less than 30% generated from fossil fuels. The insurance company has informed clients that if they do not comply, they may no longer be eligible for cover within the next few years.

Progress so far

The cement industry is conducting significant research to reduce CO2 emissions. According to the International Energy Agency/Cement Sustainability Initiative Technology Roadmap 2018, reducing emissions by approximately 24% by 2050 would be needed to meet the 2?C target.

To keep global warming below 1.5?C, a CO2 reduction of 45% would be necessary. Conventional technical progress, such as thermal efficiency, fuel switching and the reduction of the clinker-to-cement ratio, will not suffice. The key technology required is carbon capture and storage (CCS); more recently, first steps in carbon capture and usage (CCU) have complemented CCS.


Greta Thunberg

Carbon reduction opportunities

  • Energy efficiency: The industry has already reached the numbers beyond which it is not possible to improve further.

  • Alternate fuels: Sufficient margins are there for improvement. Industry is attempting to go to higher substitution rate.

  • Clinker factor: There is scope for improving the Global average of 0.65 to 0.60 to meet the Paris goals.

  • Novel cement and innovative carbon capture technologies: Developments are underway to manufacture next-generation cements that have significant carbon reductions. Also known as green cement, they are produced by implementing a carbon-negative manufacturing process and using renewable electricity. Advanced carbon capture and storage methods also have the potential to decarbonize the cement industry. These emerging technologies can provide approximately 48% of cumulative CO2 emission savings by 2050.

While talking on sustainability in this anniversary issue we have covered a case study on Shenzhen city where the entire public transport runs on electricity. China?? huge investment in electric transport comes on the back of a wider drive to reduce smog. Air quality in big Chinese cities often reaches hazardous levels. In 2014, the country ??eclared war??on pollution, halting the construction of new power plants and investing heavily in renewable energy as well as green technology.

In Shenzhen, diesel buses accounted for 20% of the city?? transport emissions. By introducing electric buses, the city could reduce CO2 emissions by an estimated 48%, compared to diesel buses, and up to 100% of other local pollutants.

Other cities, such as New York and London, are also following the electric bus route. London plans to make all its single-decker buses emission-free by 2020, and all its double decker hybrid by 2019. New York plans to make its bus fleet all-electric by 2040. It?? not clear, however, whether other cities in China will achieve Shenzhen?? feat of electrifying its whole fleet. The government plans to withdraw subsidies by 2020, and without them, electric buses could be too expensive to introduce. Indeed, profits at BYD, China?? largest electric bus manufacturer, are expected to fall as a result of the scaling back of subsidies as well as increased competition in the sector.

Headache of renewable

We would like our readers to know the negative side of sustainable power generation in Germany. The growing mismatch between Germany?? renewables capacity and the strength of its electricity network is leading to curtailment, crazy pricing and challenges for neighboring nations. Although Germany is generating record amounts of clean energy in the north, its grid is too weak to transport all the power down to load centers in the south ??a longstanding challenge for the country that is only getting worse.

One of the most visible effects of this renewable energy saturation on the German grid is negative wholesale electricity prices, times when consumers are effectively being paid to use excess power. As favorable weather conditions pushed renewable energy up to almost 43 percent of the power supply mix in 2019, ??here was an increase in the number of hours with negative prices due to high generation from renewables,??according to Agora Energiewende, a German think tank.

The simplest option is to curtail renewable energy output. But the latest available figures show that curtailment of German wind has actually fallen in real terms.

Source: In house contribution

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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