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Circular economy – the Promise of Green Transition

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Anders Josefsen, Senior Vice President and Head of Projects and Upgrades, FLSmidth, discusses the evolving role of cement plants in society – from producing a key ingredient in building critical infrastructure to enabling a circular economy.

The role of cement is evolving. The industry has always been a pillar in the communities in which it operates – as an employer and as the producer of one of the world’s most widely-used products. But it has not always been the most popular of neighbours. It has had to work hard to win the trust of locals, to ensure that the benefits of its presence outweigh the disadvantages – and that those disadvantages are reduced year by year. Today, the fact remains that the industry continues to be one of the world’s largest emitters of CO2, and initiatives to decarbonise need to go beyond traditional energy savings and optimisation.
No stone is left unturned in the quest to minimise the environmental impacts from cement production, and one area in which the industry is making progress is as a valuable outlet for waste. Because of the high temperatures required to produce clinker, cement’s key ingredient, as well as the stringent regulations controlling emissions, the cement plant is well suited to co-process municipal and industrial waste, which cannot otherwise be recycled, thereby displacing traditional fossil fuels – mostly coal. In fact, we see more and more cases of producers, encouraged by local authorities, playing a beneficial role in disposing of waste that would otherwise prove problematic – including hazardous medical waste, and even solvents.

Not waste incineration, but co-processing
In waste-to-energy plants where waste is incinerated to produce electricity, there is a by-product: residues that need dealing with. In a cement plant, waste is burned in the kiln or calciner, producing the heat needed for calcination, and the remaining residues become part of the end-product. This – together with the advanced air pollution control technology and the fact that you do not need to invest in new incineration plants – is why waste-derived fuels work well in the cement industry.
In Europe, co-processing of alternative fuels such as biomass, meat and bone meal and household waste, is common practice, representing nearly 50 per cent of the fuel used in cement production. It is made easier by the availability of the required infrastructure to sort, manage and optimise waste streams, backed by sophisticated EU waste legislation. However, in regions where waste management infrastructure is not well developed, the cement industry can play an important role by helping to build waste-to-energy partnerships and address the mounting waste challenge.
This has been demonstrated recently in countries like Indonesia, where INDOCEMENT is investing in technology to co-process alternative fuels that would otherwise be landfilled. Similarly, in Vietnam, a partnership has sprung up between waste handling start-up TONTOTON and FLSmidth to help Vietnamese cement producers utilise non-recyclable plastic waste in their process. Equipment like our HOTDISC® Combustion Device enables such waste to be burned without pre-processing, significantly broadening the horizons on what can be fired in a kiln or calciner, and reducing the costs involved.

Reduce, reuse, recycle
It is true that co-processing of waste is not a magic bullet. Depending on the composition of the waste, it emits CO2 when used as a fuel. However, it does provide a useful path for non-recyclable waste that would otherwise be landfilled, littered, or burnt in the open air, as happens in many countries, causing a litany of environmental and health hazards for local communities.
The sheer quantities and varieties of non-recyclable waste are astounding – by-products from agriculture, mining, power generation, and even from construction. According to the United Nations, greenhouse gas emissions from plastics are projected to increase to approximately 6.5 gigatonnes in 2050. That represents 15 per cent of the whole global carbon budget.1
With 23 per cent of the world’s waste generation, the East Asia and Pacific region leads the statistics, reports the World Bank in their ‘What a waste 2.0’ report. The Middle East and North Africa region is producing the least in absolute terms, at six per cent. But, especially for low-income countries, materials that could be recycled account for only 16 per cent of the waste stream.2
Solid waste management is also a financial burden to municipalities in low-income countries, which are estimated to spend about 20 per cent of their budgets on waste management, on average. Yet over 90 per cent of waste in low-income countries is still openly dumped or burned.3

Closing the loop in concrete
Construction and demolition waste is one of the largest sources of waste by volume. At an annual growth rate of four per cent, it is projected to be a $143 billion business by 2028. In this lies an opportunity to close a loop. Why make more of something when you can reuse what you already have? Scientists and companies in the cement value chain, including FLSmidth, are exploring ways to break concrete down into its core components, including a fine cement paste concentrate suitable for making eco-friendly cementitious binders. This would help reduce the clinker factor – the amount of clinker that needs to be produced to meet cement demand – as well as provide a new pathway for old concrete. An economical and environmental approach to manufacturing.
According to the International Energy Association, the integration of emerging technologies such as lowering the clinker-factor in cement and carbon capture, will provide some of the largest cumulative CO2 reductions in the 2-degree Celsius Scenario (2DS).
Today, an office building has an expected lifespan of 20 years, and a residential building a lifespan of 30-50 years. That is extremely short and underlines the need for upcycling. If the industry is to support accelerating urbanisation, the winners of the construction industry will be the ones who see opportunities in waste that can be used again and again. And they will be the ones getting the building-licences from government authorities.

From trash to treasure…
Mine tailings are also an area of interest. This waste product – the leftovers after the most valuable minerals are extracted during the mining process – is a significant environmental and economic burden to mine operators, and a safety risk to them and their local communities. Great pools of these tailings are left wherever mines are or have been in operation – adding up to some 282 billion tonnes worldwide that could contaminate local soils and groundwater. However, as the old adage goes, ‘one man’s trash is another man’s treasure’, and mine tailings could prove to be a valuable opportunity for cement producers.
Research suggests that tailings may hold some of the same properties as traditional supplementary cementitious materials (SCM). This would not only make a significant impact on waste in our communities, but would also save the extraction of the raw materials usually used in cement production.
The cement industry has provided a similar pathway for waste from coal-fired power generation. Fly ash has been used as an SCM for decades. Even now, as coal-fired power plants are phased out, there is the opportunity to harvest stored fly ash – that was previously landfilled – to both relieve the environmental burden and reap the benefits of a lower clinker factor and improved cement strength.

…and from pollutants to new building materials
Carbon capture is essential to achieving a sustainable global cement industry. The development of new solutions is progressing rapidly. Some are ready for deployment now; others require additional research and development. However, one solution that is already on shelves today is Carbon8 Systems’ Accelerated Carbonation Technology (ACT), which FLSmidth offers to the cement industry. The containerised system – the CO2ntainer – captures CO2 direct from process gases and combines it with cement bypass dust to form a lightweight aggregate. The solution contributes to the decarbonisation of a plant while valorising the residues produced and saving the associated landfill costs. It is a circular decarbonisation solution.
The cement industry has a lot to offer to society, both now and well into the future. This push to decarbonise combined with increasing opportunities to contribute to circularity in society is an exciting journey that will fundamentally change the way the industry will operate and be perceived. Ensuring all these opportunities are pursued will require a number of regulatory changes and financial incentives. A worthwhile investment in light of clear benefits to society.

1 https://news.un.org/en/story/2021/10/1103692
2 https://datatopics.worldbank.org/what-a-waste/
3https://openknowledge.worldbank.org/handle/10986/30317

Concrete

The primary high-power applications are fans and mills

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Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how plants can achieve both cost competitiveness and sustainability by lowering emissions, reducing downtime and planning for significant power savings.

As one of the most energy-intensive industries, cement manufacturing faces growing pressure to optimise power consumption, reduce emissions and improve operational reliability. Technology providers like Innomotics India are enabling this transformation by combining advanced motors, AI-driven digital solutions and intelligent monitoring systems that enhance process stability and reduce energy costs. From severe duty motors built for extreme kiln environments to DigiMine AI solutions that optimise pyro and mill operations, Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how the company is helping cement plants achieve measurable energy savings while moving closer to their sustainability goals.

How does your Energy Performance Contracting model typically reduce power consumption in cement plants—e.g., MWh saved?
Our artificial intelligence-based DigiMine AI Pyro and Mill solutions developed specifically for the cement industry, supports our customers in improving their process stability, productivity and process efficiency. In Pyro, this is achieved by optimising fuel consumption (Coal / AFR), reducing Specific Heat Consumption and reduction in emissions (CO2, SOx and NOx) through continuous monitoring of thermodynamics in pyro and recommending set-points of crucial parameters in advance for maintaining stable operations.
Within the mill, this is achieved by improving throughput, reduce energy / power consumption and maintaining stable operations on a continuous basis. Our ROI-based value proposition captures the project KPIs like reduction of coal usage, increase of AFR, reduction of specific heat consumption (Kcal / Kg), reduction of specific power consumption (KWH / tonne), reduction of emissions, etc., by a specific percentage. This gives clarity to our customers to understand the investment vis-à-vis savings and estimate the recovery time of their investment, which typically is achieved within one year of DigiMine AI Pyro and Mill solutions implementation.

What role do digitalisation and motor monitoring play in overall plant energy optimisation?
Motors are being used extensively in cement production, and their monitoring play crucial role in ensuring continuous operation of applications. The monitoring system can automatically generate alerts for any anomaly / abnormalities in motor parameters, which allows plant team to take corrective actions and avoid any major equipment damage and breakdown. The alerts help maintenance team to plan maintenance schedule and related activity efficiently. Centralised and organised data gives overview to the engineers for day-to-day activities. Cement is amongst the top energy intensive industries in comparison to other industries. Hence, it becomes critically important to optimise efficiency, productivity and up-time of plant equipment. Motor monitoring and digitalisation plays a vital role in it. Monitoring and control of multiple applications and areas
within the plant or multiple plants becomes possible with digitalisation.
Digitalisation adds a layer on top of OT systems, bringing machine and process data onto a single interface. This solves the challenges such as system silo, different communications protocol, databases and most importantly, creates a common definition and measurement to plant KPIs. Relevant stakeholders, such as engineers, head of departments and plant heads, can see accurate information, analyse it and make better decisions with appropriate timing. In doing so, plant teams can take proactive actions before machine breakdown, enable better coordination during maintenance activities while improving operational efficiency and productivity.
Further using latest technologies like Artificial Intelligence can even assist operators in running their plant with minimal requirement of human intervention, which allows operators to utilise their time in focusing on more critical topics like analysing data to identify further improvements in operation.

Which of your high-efficiency IEC low-voltage motors deliver the best energy savings for cement mills or fans?
Innomotics India offers a range of IEC-compliant low-voltage motors engineered to deliver superior performance and energy savings, particularly for applications such as cement mills, large fans, and blowers. Innomotics has the complete range of IE4 motors from 0.37kW to 1000kW to meet the demands of cement industry. The IE5 range is also available for specific requirements.

Can safe area motors operate safely and efficiently in cement kiln environments?
Yes, safe area motors are designed to operate reliably in these environments without the risk of overheating. These motors have ingress protection that prevents dust, moisture ingress and can withstand mechanical stress. These motors are available in IE3 / IE4 efficiency classes thereby ensuring lower energy consumption during continuous operation. These motors comply with relevant Indian as well as international standards.

How do your SD Severe Duty motors contribute to lower emissions and lower cost in heavy duty cement applications?
Severe duty motors enhances energy efficiency and durability in demanding cement applications, directly contributing to lower emissions and operational costs. With high-efficiency ratings (such as IE3 or better), they reduce power consumption, minimising CO2 output from energy use. Their robust design handles extreme heat, dust and vibration—common in cement environments—ensuring reliable performance and fewer energy losses.
These motors also lower the total cost of ownership by reducing downtime, maintenance and replacement frequency. Their extended service life and minimal performance degradation help cement plants meet sustainability targets, comply with emissions regulations and improve overall energy management—all while keeping production consistent and cost-effective.

What pump, fan or compressor drive upgrades have shown approximately 60 per cent energy savings in industrial settings and can be replicated in cement plants?
In the cement industry, the primary high-power applications are fans and mills. Among these, fans have the greatest potential for energy savings. Examples, the pre-heater fan, bag house fan, and cooler fans. When there are variations in airflow or the need to maintain a constant pressure in a process, using a variable speed drive (VSD) system is a more effective option for starting and controlling these fans. This adaptive approach can lead to significant energy savings. For instance, vanes and dampers can remain open while the variable frequency drive and motor system manage airflow regulation efficiently.

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Concrete

We conduct regular internal energy audits

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Shaping the future of low-carbon cement production involves integrating renewables, digitalisation and innovative technologies. Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, gives us a detailed account of how.

In an industry where energy consumption can account for a significant portion of operating costs, cement manufacturers are under increasing pressure to adopt sustainable practices without compromising efficiency. Nuvoco Vistas has taken a decisive step in this direction, leveraging digitalisation, renewable energy and innovative technologies to drive energy efficiency across its operations. In this exclusive conversation, Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, shares its approach to energy management, challenges of modernising brownfield plants and its long-term roadmap to align efficiency with India’s net-zero vision.

How has your company improved energy efficiency over the past five years?
Over the past five years, we have prioritised energy conservation by enhancing operational efficiency and scaling up renewable energy adoption. Through strategic fuel mix optimisation, deployment of cleaner technologies, and greater integration of renewables, we have steadily reduced our environmental footprint while meeting energy needs sustainably.
Technological upgrades across our plants have further strengthened efficiency. These include advanced process control systems, enhanced trend analysis, grinding media optimisation and the integration of solar-powered utilities. Importantly, grid integration at our key plants has delivered significant cost savings and streamlined energy management.
A notable milestone has been the expansion of our solar power capacity and Waste Heat Recovery Systems (WHRS). Our solar power capacity has grown from 1.5 MW in FY 2021–22 to 5.5 MW, while our WHRS capacity has increased from 44.7 MW to 49 MW, underscoring our commitment to sustainable energy solutions.

What technologies or practices have shown the highest energy-saving potential in cement production?
One of our most significant achievements in advancing energy efficiency has been the successful commissioning of a 132 KV Grid Integration Project, which unified three of our major manufacturing units under a single power network. This milestone, enabled by a dedicated transmission line and a state-of-the-art Line-In Line-Out (LILO) substation, has transformed our energy management and operational capabilities.
With this integration, we have substantially reduced our contract demand, eliminated power disruptions, and enhanced operational continuity. Supported by an optical fibre network for real-time communication and automation, this project stands as a testament to our innovation-led manufacturing excellence and underscores Nuvoco’s vision of building a safer, smarter, and sustainable world.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation plays a transformative role in driving energy efficiency across our operations. At Nuvoco, we are leveraging cutting-edge technologies and advanced digital tools to enhance productivity, optimise energy consumption and strengthen our commitment to sustainability and employee safety.
We are developing AI-enabled dashboards to optimise WHRS and kiln operations, ensuring maximum efficiency. Additionally, our advanced AI models evaluate multiple operational parameters — including fuel pricing, moisture content and energy output — to identify the most cost-effective fuel combinations in real time. These initiatives are enabling data-driven decision-making, improving operational excellence and reducing our environmental footprint.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
As part of India’s climate action agenda, the cement sector has laid out a clear decarbonisation roadmap to achieve net-zero CO2 emissions by 2070. At Nuvoco, we view this as both a responsibility and an opportunity to redefine the future of sustainable construction. Our long-term strategy focuses on aligning energy efficiency with decarbonisation goals by embracing innovative technologies, alternative raw materials and renewable energy solutions.
We are making strategic investments to scale up solar power installations and enhance our renewable energy mix significantly by 2028. These initiatives are a key part of our broader vision to reduce Scope 2 emissions and strengthen our contribution to India’s net-zero journey, while continuing to deliver innovative and sustainable solutions to our customers.

How do you measure and benchmark energy performance across different plants?
We adopt a comprehensive approach to measure and benchmark energy performance across our plants. Key metrics include Specific Heat Consumption (kCal/kg of clinker) and Specific Power Consumption (kWh/tonne of cement), which are continuously tracked against Best Available Technology (BAT) benchmarks, industry peers and global standards such as the WBCSD-CSI and CII benchmarks.
To ensure consistency and drive improvements, we conduct regular internal energy audits, leverage real-time dashboards and implement robust KPI tracking systems. These tools enable us to compare performance across plants effectively, identify optimisation opportunities and set actionable targets for energy efficiency and sustainability.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
Adopting energy-efficient technologies in brownfield cement plants presents a unique set of challenges due to the constraints of working within existing infrastructure. Firstly, the high capital expenditure and relatively long payback periods often require careful evaluation before investments are made. Additionally, integrating new technologies with legacy equipment can be complex, requiring significant customisation to ensure seamless compatibility and performance.
Another major challenge is minimising production disruptions during installation. Since brownfield plants are already operational, upgrades must be planned meticulously to avoid affecting output. In many cases, space constraints in older facilities add to the difficulty of accommodating advanced equipment without compromising existing layouts.
At Nuvoco, we address these challenges through a phased implementation approach, detailed project planning and by fostering a culture of innovation and collaboration across our plants. This helps us balance operational continuity with our commitment to driving energy efficiency and sustainability.

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Concrete

Digitalisation is pivotal in driving energy efficiency

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As energy costs continue to dominate the cement industry, efficiency and sustainability are proving to be vital components. MM Rathi, Joint President, Power Management, Shree Cement, explains the company’s long-term strategy is focused on cutting emissions while powering growth with renewable energy solutions.

Energy efficiency has always been a cost-saving lever for the cement industry. Today, it is the backbone of sustainability and competitiveness. Cement manufacturers are under growing pressure to optimise consumption, diversify power sources and align with decarbonisation targets. Shree Cement has been at the forefront of this transformation, significantly scaling up its green power capacity and embedding advanced technologies across operations. In this exclusive conversation, MM Rathi, Joint President – Power Management, Shree Cement, shares insights on the company’s approach to energy efficiency, challenges in brownfield modernisation and long-term strategies for achieving net zero alignment.

What percentage of your total operational cost is attributed to energy consumption?
At Shree Cement, energy is one of the most significant components of production cost, accounting for nearly 30 per cent to 40 per cent of total operational expenses. Within this, thermal energy typically contributes around 20 per cent to 25 per cent, while electrical energy forms about 10 per cent to 15 per cent. The exact share varies depending on factors such as the fuel mix (coal, pet coke or alternative fuels and raw materials), the power source (grid-based or captive like solar, wind or thermal), raw mix quality, and regional fuel and electricity price variations. This makes energy efficiency and the adoption of sustainable power sources a key focus area, both from a cost and sustainability perspective.

How has your company improved energy efficiency over the past five years?
Over the past five years, Shree Cement has consistently invested in enhancing energy efficiency across operations. Our green power capacity, covering wind, solar and Waste Heat Recovery (WHR), has more than doubled from 245 MW in 2020 to 592 MW in 2025. All grinding units are now equipped with biomass firing facilities, reducing dependence on conventional fuels. From the project stage itself, we prioritise efficiency by selecting advanced technologies such as six-stage kilns with integrated WHR, CFD-designed plants, and equipment fitted with VFDs, centrifugal compressors and high-efficiency fans. We also review and upgrade equipment systematically, replacing fans, compressors, blowers, pumps, boilers and turbines with more efficient options. This continuous approach has reduced costs while significantly advancing our sustainability journey.
What technologies or practices have shown the highest energy-saving potential in cement production?
WHR stands out as one of the most effective solutions, offsetting a significant portion of electricity required for clinker production. Hot air recirculation has also proven highly beneficial in reducing heat losses. Additionally, regular energy audits help us identify opportunities for improvement and implement corrective measures in daily operations. Together, these practices play a critical role in optimising energy efficiency and driving sustainable operations.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
The biggest challenge is the significant upfront investment required for upgradation. Retrofitting existing facilities often involves complex civil and structural modifications, which add costs and extend downtime. Integration is another hurdle, as new high-efficiency equipment may not align seamlessly with older kiln systems, fans, mills or automation setups. These factors make the transition in brownfield plants more resource-intensive and time-consuming compared to greenfield projects.

How do you measure and benchmark energy performance across different plants?
We track key performance indicators such as specific heat consumption and specific power consumption for each unit, benchmarking them against internal and external standards. Thermal Substitution Rate (TSR percentage) is another critical metric, measuring the share of alternative fuels in the thermal energy mix. Internally, we benchmark performance across plants to encourage best practice sharing. Externally, we compare against national averages and align with the Bureau of Energy Efficiency’s PAT (Perform, Achieve, Trade) scheme, which sets Specific Energy Consumption (SEC) baselines and targets for cement plants. This multi-layered approach ensures continuous monitoring, improvement, and industry leadership in energy efficiency.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation is pivotal in driving energy efficiency at Shree Cement. IoT sensors integrated with SCADA and DCS systems allow real-time monitoring of parameters like heat consumption and energy use, moving beyond periodic reports. Our digital platforms consolidate plant data, enabling management to compare metrics such as SPC, SHC, kWh per tonne and kcal per kg across units in real time. This visibility supports data-driven decisions, faster corrective actions, and higher operational efficiency.

How do government policies and incentives influence your energy-saving decisions?
Government policies and incentives strongly shape our energy-saving decisions. The Perform, Achieve, Trade (PAT) scheme sets plant-specific SEC targets. Non-compliance incurs penalties, while compliance earns tradable energy-saving certificates. This ensures energy efficiency is both cost-driven and regulatory. Additionally, subsidies and viability gap funding for renewable energy projects in wind, solar and AFR co-processing help reduce payback periods and make energy-saving investments more viable.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
Our long-term strategy aligns energy efficiency with India’s net zero 2070 goals. Key levers include improving efficiency, expanding green electricity, producing more blended cement, and increasing alternative fuel use. Today, more than 60 per cent of our electricity comes from green sources such as solar, wind, and WHR, the highest in India’s cement industry. Our blended cement products, which reduce limestone and fuel consumption, further lower emissions. These products are certified under the GreenPro ecolabel by CII, validating our sustainability practices and environmental standards.

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