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The cement industry must lead the sustainable journey

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Umashankar Choudhary, Unit Head, JK Cement throws light on the alternative fuels and raw materials that can be used in the production of cement which can lead to a significant reduction in energy and fuel consumption and also meet the organisation’s goals of achieving a lesser carbon footprint in the environment.

What are the raw materials and fuels currently used by your organisation in the cement manufacturing process?
In the process of cement manufacturing, the major constituent is clicker which we produce in our plants. Major raw materials for this clinker production are limestone which contributes to 97 to 98 per cent and the rest are additives. Mainly we use the DCP dust which is added around 2 per cent. This is also an alternative raw material because we are focusing on alternative raw material as well as alternative fuels for the clinker manufacturing.
In cement, we add additives like on gas, slag, and gypsum. Gypsum is of two types, namely, chemical and mineral. We use both chemical and mineral gypsum as per their availability and cost economy. As we speak about fuels, the major fuel is coal. However, now we want to maximise the use of alternative fuels, so we have started using RDF, MSW, hazardous industrial waste in the form of RDF which constitutes to about 70 to 80 per cent of the alternative fuel mix.

Please tell us more about the constitution of these alternative fuels and why they are chosen as alternative fuels.
Alternative fuels are chosen because they are available in abundance. Our plant is located in Karnataka and Goa is also nearby. We collect MSW, mainly the plastic waste and RDF in collaboration with the municipalities of the nearby areas. Goa is a hub of industries. We take all types of pharmaceutical wastes, bio medical waste from Karnataka, Goa and overall, a vicinity of 200 kilometers from our plant. Our contribution is about 77 to 80 per cent of plastic waste, consisting of mainly RDF and MSW. And rest of the waste is industrial waste which we get from various industries.

Except for limestone, which other raw materials can be used for clinker production?
As I mentioned earlier that we have to move towards maximising the use of alternative raw materials, lime mud that comes from the paper industry becomes and alternative raw material for us. It works well in place of limestone because of its higher lime content. Sometimes we even get about 45 to 55 per cent lime also. And at the same time, we have to promote low grade limestone with which we create a lighter clinker.
This low energy clinker hires 35 per cent lesser heat consumption than the conventional clinker production. It also contributes to huge reduction of carbon dioxide emission in terms of calcination and fuel reduction. This energy limestone in which MGO content is 13 to 15 per cent is being used as mineralizer. This material cannot be used in conventional cement manufacturing process. This high MGO limestone reduces the fuel consumption also.

What steps is your organisation taking to reduce the carbon footprint created by it?
The Confederation of Indian Industry (CII) is taking a good initiative for green gold ratings. Our Muddapur, Karnataka plant has received the Green Gold rating from CII in 2020. In this rating all sustainability goals are being included under various articles.
The major activities done to reduce the carbon footprint are energy efficiency, water conservation, renewable energy use, green house gases emission reduction, waste management, material conservation, recycling of materials, green supply chain, green ecology and infrastructure too.
For promoting of these activities, we are focusing our efforts on how to increase the production of blended cement up to 60 to 65 per cent of our total cement production. We are increasing additives up to the maximum permitted limits in blended cement like PPC. We are working on how to maximise the flag edition.
We have developed a new type of premium blended cement in place of Ordinary Portland cement (OPC) because we want to maximally promote the blended cements. This premium brand shall replace the OPC cement as it will be increasing the use of alternative fuels up to 30 per cent as compared to the current operation in the kiln which is 20 per cent alternative fuels. With this we have a clear roadmap of achieving 30 per cent GSR in the near future. Alongside a waste recovery system is also under progress.
We are targeting our energy roadmap to reach 55 unit per tonne of cement, an activity under progress, which is the national benchmark. We are adopting a shortest route for internal as well as external transport to minimise the greenhouse gas emissions.
Our organisation is focusing on all these activities to reduce the carbon footprint from the environment.

Tell us more about the role of technology and automation in the reduction of
carbon emission.

As I have mentioned that we are achieving a 20 per cent GSR. Furthermore, the cement plant is not able to cope up because the chloride per centage is more. What we shall now do is to utilise a chlorine bypass system that will help to further increase the GSR and take it up to 50 per cent GSR.
Once this is established, we are also proposing the installation of standard combustion system also to increase the utilization of alternative fuels, wastage recovery system, solar power plants and windmills as alternative sources of electronic energy. Also proposed is a system where we can produce low energy clinker and work with clay calcination
which can serve as an alternative to conventional clinker. We are now working on LC3 cement, which is a global standard technological innovation in the cement industry.

What happens to the waste generated by the cement manufacturing process in your organisation?
Generally, in cement industry there is no waste. However, some cement manufacturing processes have zero discharge, therefore there is no wastage. Agro waste and inhouse wastes are also processed in our pyroprocessing systems.
Our plants also use fly ash in the cement manufacturing process to make PPC as well as premium grade PPC cement also. There are some wastes produced such as electronic waste or medical waste which are further given to authorised recyclers to scrap properly.

Tell us more about the steps taken towards contributing towards the circular economy by your organisation?
The concept of circular economy has been applied in the cement industry for decades. Utilising byproducts of other industries and other secondary materials, we are a playing major role of ulitising more than 40 types of waste from various industries and we are using them as alternative fuels and raw materials in the cement manufacturing process.
A cement plant can be considered synonymous to Lord Shiva. It has the capability to inhale and hold waste of all types and can be use that with certain changes in our raw mix and cool mix. We have started using alternative fuels and raw materials in our cement plants since 2016. Now we are co-processing more than 1.25 lakh tonnes per year of alternative fuels. Last year we co-processed over 75 thousand tonnes and this year we have achieved 1.3 to 1.4 lakh tonnes of alternative fuels. Co-processing reduces the consumption of carbon intensive fuels as well as contributes towards the circular economy that can be used waste materials which would otherwise end up in landfills.
Supplementary cement materials such as fly ash from coal fired powered station, blast furnace slag and waste from the steel industry we are using as raw materials in the clinker manufacturing process.

What are the technological innovations or alternatives the organisation could opt for in future to ensure environment sustainability?
Our organisation is already in the process of working on the chlorine bypass system and combustion system. Other than this we have also aligned our business model with the UN 2030 agenda for sustainable development. We have committed a Science Based Target Initiative (SBTI) for business ambition to a well below 2 degree Celsius. Our company has also joined UN CC 2050 race to zero campaign under BCCA to achieve net zero emission for cement
and concrete.
Our target is to reduce specific thermal energy which is 704 by 2030. Specific power consumption that is around 65 by 2030. We have to increase our WHR capacity for efficiency improvement to 45 kilowatts per hour per tonne of clinker. To have to also increase green power mix use up to 75 per cent by 2030.
We are working on a road to green transportation. This is a transition to a greater use of electrical energy and renewable resources. Our target is to achieve a clinker ratio of 65 per cent by 2030. We are also working on increasing blended cement and how to minimise the use of exhaustible resources and move towards alternative resources.

By when is your organisation expected to achieve Net Zero and how much carbon emission has been reduced by 2021?
Our company has aligned itself to the UN mission of achieving Net Zero. We have been continuously working towards achieving that goal and our target is to achieve 80 per cent of that by 2030. As mentioned earlier, we have targeted to achieve thermal energy consumption of 704 for the whole organisation and not an individual plant.
For individual plants, like this, Muddapur plant, we are running on with a 685 specific heat and the total power is 62 to 65. In the totality of the whole organisation, we have taken up the target of 2030 and will achieve the same. Net zero achievement shall be around 2050.
What I would also like to add on here is that the cement industry in the future is only going to survive on alternative fuels and raw materials. We have to source, utilise and promote the use of alternatives as in India, the average thermal rate is only 4 to 5 per cent. We have to identify the plants where it is only 2 to 3 per cent and start from there and take it up to 20 to 30 per cent. The Indian average should be 20 per cent to achieve a sustainable environment. Plants that are using alternative fuels and alternative raw materials have to work hard to achieve this thermal substitution rate.
These are natural resources, and the reserves will deplete after some years. We have to consciously think about the next generation and make an effort. Cement industry has to take a lead to towards a sustainable journey. They must move forward and take certifications on a global scale for greener methods and processes too.

Kanika Mathur

Concrete

WCA President Emphasises Major Changes in Global Cement Industry

In contrast, cement production in India is rapidly expanding, with more than 200 million tons produced.

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The President of the World Cement Association (WCA), Wei Rushan, addresses members to highlight the significant transformations shaping the global cement industry. Emphasising the need for innovation, sustainability, and collaboration, he called on industry stakeholders to embrace the evolving economic, regulatory, and geopolitical challenges ahead.

“The cement industry is experiencing profound changes, with businesses managing overcapacity and upgrading, balancing sustainable development with short-term survival, and weighing social responsibility against shareholder returns,” stated Rushan. “While each region faces unique challenges, our shared focus remains on driving sustainable growth, embracing technological advancements, and tackling climate change.”

As outlined in the WCA’s recent White Paper, global cement demand is expected to decline by 22 per cent by 2050. In established markets like Europe and North America, price increases are expected to persist, while in some emerging markets, prices may experience a short-term decline. However, from a long-term perspective, we expect emerging market to remain dynamic and resilient.

Key regional developments

Multinational companies are adjusting their strategies and scaling back cement business, focusing instead on North America. Meanwhile cement production in Europe continues to decline due to strict CO2 regulations and necessary capacity reductions, driving up cement prices. Efforts to address overcapacity in China and Japan have led to significant consolidation and restructuring.

In contrast, cement production in India is rapidly expanding, with more than 200 million tons produced. Indian companies are strengthening their domestic leadership, while multinational companies are exiting this high-potential market.

Globally, regional leaders are gaining influence, except in Europe and North America, where European multinationals continue to dominate. Chinese cement producers and other independent companies are aggressively expanding, particularly in Africa and Southeast Asia, solidifying their market presence.

Addressing global challenges

Wei identifies overcapacity as a major challenge facing the industry today. As a global representative for the cement industry, the WCA is willing to work with producers and stakeholders to explore ways to modernise and upgrade outdated plants. “To remain both profitable and environmentally responsible, the cement industry must aim to reduce capacity by 50 per cent, from 4.7 billion tons to 2.3 billion tons within the next decade. This requires focusing on modern, sustainable production units.”

He also noted carbon reduction and carbon neutrality as another key challenge. Although progress has been made through Carbon Capture and Storage (CCS) technologies, Rushan acknowledged the high costs and energy intensity of these solutions.

“Cement plays a crucial role in building sustainable infrastructure,” Mr. Wei continued. “By accelerating innovation, adopting low-carbon technologies, and fostering global collaboration, we can ensure cement remains an environmentally responsible material.”

The WCA urges industry stakeholders worldwide to act now by adopting sustainable practices, embracing innovation, and redefining cement industry norms.

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Concrete

ACC Q3 Net Profit at Rs 10.91 Bn, Revenue Reaches Rs 52.07 Bn

ACC attributed its performance to volume growth, cost optimization, and improved efficiency.

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Cement manufacturer ACC reported a net profit of Rs 10.91 billion for the third quarter ending December 2024, a significant increase from the Rs 5.37 billion profit posted during the same period last year. The company’s revenue from operations reached Rs 52.07 billion in the current quarter, compared to Rs 48.55 billion a year ago.

The results for the quarter are not directly comparable to last year’s figures due to ACC’s acquisition of the remaining 55 per cent of Asian Concretes and Cements (ACCPL) and its step-down subsidiary, Asian Fine Cements. The consolidated financial results for this quarter include those of ACCPL.

Additionally, ACC received a Rs 7.20 billion refund from the government as an excise duty exemption on clinker consumption for the period from May 2005 to February 2013. This refund follows a ruling in ACC’s favour by the Customs, Excise, and Service Tax Appellate Tribunal. Of this amount, Rs 6.36 billion was recognised as income in the current quarter and the nine months ending December 31, 2024.

The company’s total expenses for the December quarter stood at Rs 50.99 billion, while its total income was Rs 65.75 billion. The revenue from the cement business was Rs 56.14 billion, and from Ready Mix Concrete, it was Rs 3.44 billion.

ACC attributed its performance to volume growth, cost optimization, and improved efficiency. The company expects continued growth, driven by demand for premium cement products and a focus on innovation and sustainability.

Looking ahead, ACC anticipates that the cement sector, which experienced modest growth of 1.5-2 per cent during the first half of FY25, will rebound in the fourth quarter as construction activity accelerates in the infrastructure and housing segments. The company projects cement demand growth of 4-5 per cent for FY25, supported by the pro-infrastructure and housing measures in the 2025 Budget and increased government spending on infrastructure projects.
News source: ET Energy

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Dalmia Bharat to Invest Rs 10 Bn in Capex During Q4

In the next six months, the company plans to release a roadmap for the second phase of its expansion, with a target production capacity of 75 million tonnes.

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Dalmia Bharat plans to invest approximately Rs 10 billion in capital expenditure for the quarter ending in March, bringing its total expenditure for the current fiscal year to around Rs 30 billion.

As for the fiscal year 2025-26 (April-March), the company intends to spend between Rs 25 billion and Rs 30 billion on capital expenditure. Dalmia Bharat’s current annual production capacity is 46.6 million tonnes, which is set to increase to 49.5 million tonnes by the end of March.

India, being the second-largest cement producer globally, has seen domestic players aggressively expand capacities through both expansion and acquisitions to meet the anticipated demand driven by the government’s infrastructure push. It is projected that between 2024 and 2028, 150-160 million tonnes of capacity will be added, driven by a combination of organic and inorganic growth. This increase in supply, coupled with heightened competition, is expected to limit the growth of cement prices, as noted in a Crisil report from last year.

Dalmia also mentioned that while optimism surrounding cement prices has risen due to recent price recoveries, the intensifying competition may prevent any substantial price increases. He noted that the current market conditions are marked by aggressive market share pursuits, which, coupled with the lack of demand growth in the first nine months, have added strain to the industry. He pointed out that every industry goes through phases where the focus shifts from market share to prioritizing margins, as beyond a certain point, market share no longer delivers value.

He anticipates that competitive pressure, particularly in the southern markets of India, will persist, alongside ongoing consolidation within the industry.

News source: The Economic Times

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