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Green Fuel for Thought

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Ganesh W Jirkuntwar, Senior Executive Director and National Manufacturing Head, Dalmia Cement (Bharat) talks about technology and alternative fuels, which are important tools in the cement industry’s march towards reduction of carbon footprint.

Dalmia Cement Bharat has evolved to create a distinct identity for itself that is synonymous with sustainability and growth. The philosophy of ‘Clean and Green is Profitable and Sustainable’ has helped the company deliver on the expectations of its stakeholders. As a champion of blended cement, it is rapidly gaining popularity as a ‘green’ alternative to the traditional Ordinary Portland Cement in the construction sector. Three levers are being used to decarbonise the cement. Uses of supplementary cementitious materials like fly ash and slag have reduced clinker consumption and hence reduced carbon footprint in cement. Alternative fuels (green fuel) like industrial wastes, renewable biomass, municipal wastes etc., have reduced consumption of fossil fuel facilitating in achieving carbon neutrality. Increased dependence on renewable power sources like solar, waste heat recovery systems, wind power etc., is also helping the company achieve its goal of becoming the second green cement manufacturer.
Alternative fuels to the tune of 20 per cent by heat substitution are being used, putting it far ahead of any other Indian cement manufacture in uses of alternative fuel. Dalmia Cement Bharat wants to lead and drive the industry’s shift towards a sustainable use of alternative fuel in cement production by investing in requisite technology and machineries, and setting an ambitious target of achieving 35 per cent TSR by FY25. It uses industrial wastes, municipal wastes, agricultural wastes etc., as alternative fuel, which otherwise goes either into a water source or landfill and creates environmental issues. The use of these industrial wastes is a great example of a circular economy ecosystem.

Reducing the Carbon Footprint
Uses of alternative fuels and raw materials is helping the company fast-track its journey of achieving carbon negative. Dalmia carbon footprint at 467 kg CO2/tonne of cement (specific net CO2) is one of the lowest in the cement sector globally. Since the announcement of the carbon negative ambition in 2018, the specific carbon footprint has reduced by more than 9 per cent in the Scope 1 category and it is currently at 12.55 million tCO2/year. By reducing the scope 1 GHG emissions to 32 per cent per ton of cementitious material by FY ’34, they have also reduced overall scope 2 emissions by 30 per cent and are targeting to reduce scope 2 GHG emissions to 61.9 per cent per tonne of cementitious material by FY’34. Both these are on FY ’19 as base year and within the same timeframe validated by SBTi.

Role of Technology
Technology plays a pivotal role in determining the quantum of alternative raw materials and fuels to be used without compromising properties of cement. Online sampling, online particle size analyser, robotic lab etc., are great enablers for determining composition of alternative raw materials and fuels to be used. Nowadays digital technology is also facilitating in generating lots of insights from process data, which is helping in taking real-time basis decisions on desired composition of alternative raw materials and alternative fuels for achieving targeted quality of clinker and cement.
Cement making process has not undergone major overhaul since inception of dry cement making process, therefore basic chemistry and machinery are pretty much standardised across the industry. Cement composition is decided based on end uses and does not depend on plant machinery per say. Plant machineries are upgraded for switching to newer and efficient designed machines, replacing the old and obsolete machines etc. Plant machinery upgradation is a situational call in Dalmia and is decided based on group guidelines for reliability, technology adoption, ROA etc.

Alternative Fuels and Profitability
Cement producers worldwide are striving to lower their production costs. One effective method of achieving this end is the use of alternative fuels. Use of low-grade alternative fuels such as sewage sludge, biomass fuels such as wood products, agricultural wastes, etc. in precalciners is a viable option because combustion in a precalciner vessel takes place at a lower temperature.
Alternative fuel uses have been quite beneficial for us not only in terms of improving bottom-line but also helping gain tall recognition at the international stage. During peak fossil fuel prices, its uses helped reduce the spend on fuel to great extent and optimise variable cost of cement. Despite having a handicap of regional presence, Dalmia Cement Bharat could beat pan India cement players on cost front as result of substantial uses of alternative fuels.
Usages of alternative fuels lead to marginal increase in overall heat consumption. In case preheater fans and other equipment are being used at its full capacity, usage of alternative fuels may result in marginal reduction of clinker throughput.
Similarly, uses of alternative raw materials may impact cement quality, if not proportioned carefully.
Alternative fuel uses in Indian cement kilns is at the cusp of transformational change. Almost all cement players are adopting traditional technology and installing necessary infra for using alternative fuels in kilns. Uses of alternative fuel in kilns are limited by its chloride and ash contents. These issues are being taken care of by industry wide research and piloting of technologies, which has potential to reduce chloride and ash contents from alternative fuels. Various technologies for preprocessing of alternative fuels like pyrolysis, pyrorotor etc. are being piloted in India.
Government bodies, academia, industry bodies etc. are also doing extensive research on uses
of alternative raw materials for decarbonising cement.

ABOUT THE AUTHOR:
Ganesh W Jirkuntwar, National Manufacturing Head (Sr Executive Director) and EXCOM Member – Dalmia Group,
comes with 27 years of experience in cement plant and manufacturing, operations and management, logistics, planning, quality and team management. He is also well-versed with lean management, TPM, Six Sigma and ISO 9000, 14000 and 18000. standards.

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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