Concrete

A cement plant is a high energy intensive unit

Published

1 year ago

October 19, 2023

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Pankaj Kejriwal, Managing Director, Star Cement, delves into the importance of optimising refractories to make cement manufacturing more cost efficient and eco-friendly.

Tell us about the role of energy in the manufacturing of cement? What is the volume of energy consumption?
A cement plant is a high energy intensive unit. For manufacturing of cement, both thermal energy and electrical energy is required. In the year 2022-23, thermal energy consumption was 27.50 lakh mKcal (82 per cent of total energy) and electrical energy consumption was 5.97 lakh mKcal (18 per cent of total energy). In the cement industry, about 60 kWh of electrical energy is consumed to produce one ton of cement.
The power consumption pattern is as follows:

What are the various modes of energy sources used by your organisation for its manufacturing needs?
The electrical power is taken from various sources such as IEX through open access from state electricity grid and our own captive coal/biomass fuel based thermal power plant, bamboo chips and AFR like RDF is also being used in our plants. We have recently commissioned a 12.3 MW waste heat recovery system (WHRS) plant, and another 12.5 MW WHRS plant is in the pipeline. We are also installing about 15 MW of solar power plant.
The thermal energy is produced by coal in kiln. Linkage coal is utilised in kiln along with various local or purchased coal.

Which of the said energy sources yields maximum productivity for the plant and which yields the least?
Coal, pet coke and electricity are the dominant energy sources used in cement plants, although plants will burn a variety of other fuels, including tires, biomass, RDF and other waste fuels.
As per the mentioned energy sources, WHRS with CPP is our first priority whereas grid (IEX) power is the least priority energy source. As an AFR, we are using bamboo chips, bamboo briquettes and waste plastic bags in our plant. The green energy sources have large impact on the productivity and cost of cement manufacturing. It reduces the carbon emission. As a cost impact, it reduces power cost by 12 per cent in CPP and 1.5 per cent in process plant approximately.

What are the alternative energy sources that are being adapted by the cement industry and your organisation?
The main alternative fuels used in cement industry are residue oil and solvents, contaminated garbage, process waste from food industry / pharma industry, used tires and rubber waste, plastic waste, sewage sludge and waste animal meal. Star Cement uses alternative energy sources such as biomass like municipal waste, bamboo chips and are also installing a 15 MW solar energy plant.

What is the impact of greener energy sources on the productivity and cost of cement manufacturing?
Alternative fuels utilisation in cement industry reduces the production cost and also reduces the coal requirement, coal handling/grinding etc.

How does automation and technology help in optimising the use of energy in cement plants?
By leveraging the power of automation and AI-driven analytics, the cement industry can reduce maintenance costs, enhance equipment reliability, and achieve higher energy efficiency, ultimately leading to improved productivity and profitability.
We are also focusing on automation and technology up gradation to optimise the use of energy in cement plants. To achieve this, various steps has been taken towards energy conservation and technology absorption, few are as mentioned below:
• Installed VFD in Primary Air blower by which control the rpm of blower as per process requirement and saved the energy 86,000 kWh per year.
• Optimisation of RABH purging operation. Total power saving is 2,80,000 kwh per year.
• VFD installed in VRM bag filter of 55 Kw motor, by which saving achieved 7920 kWh per year.
• Increased clinker production and optimised
the running of the different circuits, by which specific power consumption is reduced by 1.08 kwh/MT clinker.
• Optimised the coal firing system and higher clinker production reduced the specific heat consumption by 7 Kcal/kg clinker.
• Installed tertiary crusher in raw mill circuit, thereby increasing ball mill output and reducing power consumption b 2 KW / tonne of raw meal.

What are the major challenges your organisation faces in managing the energy needs of cement manufacturers?
The major challenges for our organisation in managing the energy needs for the cement manufacturing process is the less availability of alternative fuels in plant locality. The segregation of waste is yet to improve and also the Polluter Pay Principle is not being implemented effectively,
thereby increasing the cost of alternative fuel at our factory gate.
Cement industry have a long way to go as far as alternate fuel and raw material usage is concerned.
In spite of several policy, regulatory or technological barriers that industry is facing, now is the opportune time for the Indian cement industry to focus all its efforts in furthering AFR utilisation in its processes.

Tell us about the compliance and standards followed by you to maintain energy use and efficiency in the organisation?
Our organisation is a designated consumer under PAT cycle 2 and 3. We are following all the compliance and standards as per BEE guidelines to achieve our Specific Energy Consumption targets as directed by Bureau of Energy Efficiency, Ministry of Power, Government of India.
As per BEE guidelines Mandatory Energy Audit, monitoring and verification audits are conducted to ensure optimum use of energy after every three years. We have also conducted detailed energy audit by CII, Hyderabad, in May 2023 as an additional exercise.

What kind of innovations in the area of energy consumption do you wish to see in the cement industry?
Use of solar power, hydrogen fuel and maximising the use of AFR are the areas of innovations, we wish to see in the cement industry in near future. Also increasing the efficiency of WHR boilers will help in better recovering the waste heat.
Along with cheaper and greener fuel sources, we would like technology to further reduce the
energy consumption in the grinding process.
Usage of alternative materials, which reduce the overall clinker component in blended cement like LC3 will also go a long way in reducing the
energy requirements.

-Kanika Mathur

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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.

Published

3 days ago

January 28, 2025

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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

Concrete

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.

Published

3 days ago

January 28, 2025

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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

Concrete

NUVOCO Vistas Sales Volume Grew by 16% YoY for Q3 FY25

Consolidated revenue from operations stood at Rs 24.09 billion

Published

4 days ago

January 27, 2025

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Nuvoco Vistas Corp, a leading building materials company in India, announced its unaudited financial results for the quarter ended December 31, 2024. With 25 MMTPA of combined installed capacity, Nuvoco Vistas Corp. Ltd. is the 5th largest cement group in India and amongst the leading cement players in East India. The company is on track to achieve 31 MMTPA cement capacity1 by Q3 FY27 after emerging as the Successful Resolution Applicant for Vadraj Cement (VCL). A Letter of Intent has already been issued. The VCL facility comprises of 3.5 MMTPA clinker unit in Kutch and a 6 MMTPA grinding unit in Surat and reflects the company’s drive for growth and diversification.

The company’s consolidated cement sales volume registered a strong growth of 16% YoY to 4.7 MMT in Q3 FY25. Consolidated revenue from operations stood at Rs 24.09 billion during the same period. Consolidated EBITDA for the quarter stood at Rs 2.58 billion.

The cement industry has witnessed a recovery following a challenging first half of FY25. After facing subdued demand, the industry is showing signs of improvement, supported by favourable market dynamics. In response, the Company undertook several initiatives to drive strong volume growth during the quarter. While cement prices remained muted for majority part of the quarter, they recovered toward the end. Meanwhile, the Company has continued to focus on operational excellence. The company has achieved the lowest blended fuel cost in the last 13 quarters, at Rs. 1.45 per Mcal. Nuvoco’s power & fuel cost continues to be amongst the lowest in the industry.

In the RMX business, “Concreto Uno Concrete”, launched during the year, is seeing volume traction across regions. The MBM business introduced “Tile Adhesive T5”, “Tile Glitter” and “Tile Bonder” under the brand ZERO M to strengthen the product portfolio. The company continues to strengthen its commitment to sustainability with lowest carbon emissions in the industry, with 457 kg CO2 per ton2 of cementitious materials.

Commenting on the company’s performance, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., stated, “The Company proactively seized demand opportunities to bolster its position in the market and delivered strong volume growth during the quarter. Price increases in the recent period continue to reflect a positive trend, while sustained improvements in demand should support prices as well. Strategic priorities for the company remain centered on driving premiumisation, optimising geo- mix, enhancing fuel mix efficiency, strengthening brand presence, and maintaining cost excellence. The company is confident in its expansion strategy and ability to execute on growth plans pertaining to Vadraj Cement, which will diversify its market footprints in the Western India, thereby supporting long-term growth ambitions and further consolidating its position as the 5th largest player in India.”