Connect with us

Concrete

Electrifying the Decarbonisation Process

Published

on

Shares

Max Tschurtschenthaler, Global Business Unit Manager, Cement, Process Industries, ABB and Joonas Rauramo, CEO, Coolbrook, explore the potential of an innovative technology venture set to be deployed in India to replace traditional fossil fuels with renewable electricity in cement production, ultimately reducing carbon emissions and satisfying customer demands.

As the second largest cement producer in the world, the demands on India from the domestic and global markets see a constant surge as cities and countries grow and population rises. Meanwhile, the opportunities for high productivity and sustainable manufacturing are also there for forward-thinking operators.
From India’s infrastructure focus to a higher allocation for affordable rural housing under the Pradhan Mantri Awas Yojana – Gramin (PMAY-G), multiple factors are pushing demand for cement in India. Rating agency Crisil has estimated this demand will lead to an incremental sales volume increase of 30-35 million tonnes (Mt) in the 2023-24, taking the total volume to roughly 425 Mt per year. Globally, the cement industry contributes to CO2 emissions of 7–8 per cent, yet its outputs are essential to modern built environments. It is well-known that reducing carbon emissions in cement production is a challenge, as the kiln’s high temperatures and chemical reactions during limestone calcination make it a complex process to decarbonise.
Between 2015 and 2021, the International Energy Agency (IEA) saw the CO2 intensity of cement production witness an annual increase of about 1.5 per cent. To achieve the net zero emissions globally by 2050 target set by IEA, this intensity needs to be reduced by 3 per cent each year until 2030.
Unfortunately, there are huge costs associated with decarbonising the cement industry. According to the Council on Energy, Environment and Water (CEEW), given that the cumulative CO2 emissions from manufacturing 337 Mt of cement were estimated to be around 218 Mt in 2018-19, India will need approximately $334 billion in capital expenses and another $3 billion in annual operating costs
to decarbonise India’s existing cement production. As a result, the IEA has called for dedicated efforts to reduce carbon emissions in the cement industry, which could include the reduction of clinker-to-cement ratio (including through greater uptake of blended cement) as well as adopting pathbreaking technologies such as electric kilns, carbon capture, utilisation and storage (CCUS) and clinkers made from alternative raw materials.

RotoDynamic Heater technology
However, there is an upside to these challenges. On the one hand, at the recent COP28, major Indian cement companies reiterated their commitment to reducing emissions in their journey to becoming net zero by relying on CCUS. The Global Cement and Concrete Association (GCCA) also suggested that CCUS is expected to contribute around 36 per cent of net emission reduction in the cement industry by 2050 under the global roadmap to net zero. Similarly, the Indian cement sector is expected to follow suit.
On the other hand, technological innovation makes decarbonisation in the cement industry possible and helps to accelerate development. Specifically, ABB and Coolbrook, a technology and engineering company, have partnered to advance technology to help decarbonise the chemicals, cement and steel industries. These industries are responsible for 70 per cent, or 6000 Mt annually, of industrial CO2 emissions. The cooperation aims to develop innovative solutions to reduce CO2 emissions in these industries, which will help combat climate change.
The said innovation involves Coolbrook’s proprietary RotoDynamic technology, which replaces the burning of fossil fuels in high-temperature industry processes with renewable electricity as the energy source, with ABB’s motors, power electronics and process automation for optimised energy efficiency and operational processes. By developing and scaling up RotoDynamic technology for use in emission-heavy industries such as cement manufacturing, Coolbrook and ABB aim to cut carbon emissions annually by up to 2400 Mt.
Reaching higher temperatures through electrification
The cement production process involves the chemical reaction of limestone with multiple components to produce clinker, which is responsible for around 60 per cent of CO2 emissions. The remaining 40 per cent of emissions are caused during the activation of the chemical process by burning fossil fuels. Heavy industry currently relies on these polluting fuels since traditional electric heaters cannot generate the high temperatures required for the process, which can reach up to 1700°C.
The RotoDynamic Heater (RDH), developed by Coolbrook, can achieve temperatures of up to 1700°C, powered by electricity and without using fossil fuels. This makes it an attractive alternative to fossil-fired furnaces and kilns for producing cement, iron, steel, and chemicals. Unlike traditional electric heating solutions, the RDH is a turbo machine that can internally increase the gas temperature, significantly increasing the temperature. The gas is accelerated to supersonic velocity and then decelerated very quickly in a diffuser, converting electric energy first into kinetic and finally into thermal energy. The acceleration/deceleration process can be performed multiple times, resulting in higher temperatures than existing electric heaters.
Unlike traditional electric heating technologies, the RDH is compact in size and can be retrofitted easily in any brownfield industrial process facility, including cement plants. The RDH can be used in multiple applications, such as pre-heating feedstocks and heat provision to the pre-calciner, where most fuel is used. The electrification unit aims to replace the burner in the main kiln, where temperatures exceed 1700°C.

Energy efficiency and emissions
Coolbrook’s RotoDynamic Heater unit has an exceptional efficiency of up to 95 per cnet in converting electricity to heat, resulting in negligible losses from excess heat generation. The absence of combustion eliminates the need to burn fuel, thereby minimising sulphur oxide, nitrogen oxide, and particle emissions produced during manufacturing.
Reducing the carbon footprint of hard-to-abate sectors like cement requires investment in specific technologies and integrating clean energy into emissions-heavy processes. Coolbrook’s RDH solution generates heat powered by renewable energy sources, reducing dependence on imported fuels and bypassing supply chain and logistics issues, thereby reducing operational expenses.
KPMG has estimated that Coolbrook’s technologies could reduce CO2 emissions by over 2000 Mt annually, equivalent to about 7 per cent of human-made CO2 emissions or approximately 30 per cent of industrial CO2 emissions. The RDH project aims to replace the burning of industrial fossil fuels globally. Testing of the technology began at Coolbrook’s pilot facility in the Netherlands in December 2022 and during 2023 completed the first test phases and demonstrated the technology’s capabilities for industrial use in high-temperature process heating. The technology is now moving forward to industrial scale projects at customer sites. The tests exceeded the level of 1,000°C, which is already several hundred degrees above the temperature range of conventional resistive heaters.

Performance management
While Coolbrook’s RotoDynamic technology offers the potential for decarbonising cement industry processes, ABB brings a range of expertise to such partner relationships; automation, electrification, digital solutions, motors, drives. As the turbine technologies generate more heat the faster they run, they require particular controls over speed. ABB can enable stable temperatures throughout the cement production process with variable speed drives and motors that can be adapted to the size and application of each RDH unit, as well as a control system that can be seamlessly integrated into the existing cement plant’s system and provide advanced data analytics.
Preventing unscheduled downtime is also critical to maximising asset life and optimising production and quality control. ABB’s motor and drive solutions are connected to monitoring equipment that continually assesses performance and alerts the operator to potential failures, facilitating predictive maintenance.

Making progress on the journey
According to a cement sector-specific report by the Delhi-based think tank Centre for Science and Environment, CCUS is being recommended as one of the pathways for reducing emissions in the Indian cement sector. This is why India is already interested in the ABB/Coolbrook RDH solution, even as we see a push to develop domestic wind, solar and hydropower capacity to reduce reliance on fossil fuels and promote energy independence.
This strategy focuses on reducing CO2 emissions in the long run instead of prioritising short-term cost savings. Customers are willing to pay more upfront for electrification solutions that meet environmental targets and the growing demand for CO2-free products. Hence, ABB and Coolbrook’s pre-engineered and pre-fabricated electrification technologies can potentially revolutionise the decarbonisation of heavy industries.
In conclusion, these technologies replace polluting fossil fuels with renewable electricity, leading to cleaner, safer, and more efficient production of essential materials like concrete. Manufacturers can use these technologies to meet emissions targets, protect their license to operate, and meet the growing demand for green cement.

Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

Published

on

By

Shares



India’s cement sector is set for further consolidation in the near-to-medium term, according to a recent report. With increasing competition, rising input costs, and the need for economies of scale, companies are expected to explore mergers and acquisitions (M&A) to strengthen their market positions. As the industry faces various challenges, including high energy costs and fluctuating demand, consolidation is viewed as a strategic move to drive growth and sustainability.

Key Points:
Market Consolidation: The Indian cement industry has already witnessed significant consolidation over the past few years, with several large firms acquiring smaller players to enhance their market share. The trend is expected to continue, driven by the need to optimize operations, cut costs, and gain better pricing power. Consolidation helps companies to expand their geographic reach and strengthen their portfolios.

Rising Costs and Challenges: One of the primary drivers of consolidation is the rising cost of inputs, particularly energy and raw materials. With costs of coal and petroleum coke (key energy sources for cement production) soaring, companies are looking for ways to maintain profitability. Smaller and medium-sized players, in particular, find it challenging to cope with these rising costs, making them more likely targets for acquisition by larger companies.

Economies of Scale: Larger cement companies benefit from economies of scale, which help them absorb the impact of rising input costs more effectively. Consolidation allows firms to streamline production processes, reduce operational inefficiencies, and invest in advanced technologies that improve productivity. These efficiencies become critical in maintaining competitiveness in an increasingly challenging environment.

M&A Activity: The report highlights the potential for more mergers and acquisitions in the cement sector, particularly among mid-sized and regional players. The Indian cement market, which is highly fragmented, presents numerous opportunities for larger companies to acquire smaller firms and gain a foothold in new markets. M&A activity is expected to accelerate as firms seek growth through strategic alliances and acquisitions.

Regional Focus: Consolidation efforts are likely to be regionally focused, with companies looking to expand their presence in specific geographic areas where demand for cement is strong. Infrastructure development, government projects, and urbanization are driving demand in various parts of the country, making regional expansions an attractive proposition for firms looking to grow.

Impact on Competition: While consolidation may lead to a more concentrated market, it could also intensify competition among the remaining players. Larger firms with more resources and market reach could dominate pricing strategies and influence market dynamics. Smaller firms may either merge or struggle to compete, leading to a reshaping of the competitive landscape.

Demand Outlook: The near-term outlook for the cement industry remains uncertain, with demand being influenced by factors such as construction activity, infrastructure projects, and government initiatives. The report notes that while urban demand is expected to remain stable, rural demand continues to face challenges due to slow construction activities in those areas. However, the long-term outlook remains positive, driven by ongoing infrastructure developments and real estate projects.

Sustainability Focus: Companies are also focusing on sustainability and environmental concerns. Consolidation can provide larger companies with the resources to invest in green technologies and reduce their carbon footprint. This focus on sustainability is becoming increasingly important, with both government regulations and market preferences shifting toward greener production practices.

Conclusion:
The Indian cement industry is poised for further consolidation in the coming years, driven by rising costs, competitive pressures, and the need for economies of scale. M&A activity is likely to accelerate, with larger firms targeting smaller and regional players to strengthen their market presence. While consolidation offers opportunities for growth and efficiency, it could also reshape the competitive landscape and influence pricing dynamics in the sector.

Continue Reading

Concrete

Cement Companies May Roll Back Hike

Cement firms reconsider September price increase.

Published

on

By

Shares



Cement companies in India might be forced to reverse the price hikes implemented in September due to weakened demand and pressure from competitive market conditions, according to a report by Nuvama Institutional Equities. The recent price increase, which was expected to improve margins, may not hold as demand falls short of expectations.

Key Points:
Price Hike in September: Cement firms across India increased prices in September, aiming to improve their margins amidst rising input costs. This was seen as a strategic move to stabilize earnings as they were grappling with inflationary pressures on raw materials like coal and pet coke.

Weak Demand and Pressure: However, demand has not surged as expected. In some regions, particularly rural areas, construction activity remains low, which has contributed to the tepid demand for cement. The combination of high prices and low demand may make it difficult for companies to maintain the elevated price levels.

Competitive Market Forces: Cement manufacturers are also under pressure from competitors. Smaller players may keep prices lower to attract buyers, forcing larger companies to consider rolling back the September hikes. The competitive dynamics in regions like South India, where smaller firms are prevalent, are likely to impact larger companies’ pricing strategies.

Nuvama Report Insights: Nuvama Institutional Equities has highlighted that the September price hikes may not be sustainable given current market conditions. According to the report, the demand-supply imbalance and weak construction activities across many states could push cement companies to reconsider their pricing strategies.

Impact on Margins: If companies are compelled to roll back the price hikes, it could hurt their profit margins in the near term. Cement firms had hoped to recover some of their input costs through the price increases, but the competitive landscape and slow demand recovery could negate these gains.

Regional Variations: Price rollback might not be uniform across the country. In regions where infrastructure development is picking up pace, cement prices may hold. Urban areas with ongoing real estate projects and government infrastructure initiatives could see a sustained demand, making price hikes more viable.

Future Outlook: The outlook for the cement sector will largely depend on the pace of recovery in construction activity, particularly in the housing and infrastructure sectors. Any significant recovery in rural demand, which is currently subdued, could also influence whether the price hikes will remain or be rolled back.

Strategic Adjustments: Cement firms may need to adopt a cautious approach in the near term, balancing between maintaining market share and protecting margins. Price adjustments in response to market conditions could become more frequent as companies try to adapt to the fluctuating demand.

Conclusion:
The September price hikes by cement companies may face reversal due to weak demand, competitive pressures, and market dynamics. Nuvama’s report signals that while the increase was aimed at margin recovery, it may not be sustainable, particularly in regions with low demand. The future of cement pricing will depend on construction sector recovery and regional market conditions.

Continue Reading

Concrete

Bridge Collapse Spurs Focus on Stainless Steel

Climate change prompts stainless steel push.

Published

on

By

Shares



The Ministry of Road Transport and Highways (MoRTH) is turning its attention to the use of stainless steel in bridge construction to counteract corrosion, an increasing issue linked to climate change. With recent bridge collapses highlighting the vulnerability of existing infrastructure to corrosion and extreme weather events, the ministry is promoting the adoption of durable materials like stainless steel to ensure the longevity and safety of India’s critical transport infrastructure.

Key Points:

Bridge Collapse and Climate Change: Recent incidents of bridge collapses across the country have raised alarm over the durability of current construction materials, with corrosion cited as a leading cause. Climate change, leading to harsher weather patterns and increased moisture levels, has accelerated the deterioration of key infrastructure. This has prompted MoRTH to consider long-term solutions to combat these challenges.

Corrosion: A Growing Concern: Corrosion of structural materials has become a serious issue, particularly in coastal and high-moisture regions. The Ministry has identified the need for a more resilient approach, emphasizing the use of stainless steel, known for its resistance to corrosion. This shift is seen as crucial in ensuring the longevity of India’s bridges and reducing maintenance costs over time.

Stainless Steel for Bridge Construction: Stainless steel, while more expensive initially, offers long-term savings due to its durability and resistance to environmental factors like moisture and salt. The Ministry is advocating for the material’s use in future bridge projects, particularly in areas prone to corrosion. Stainless steel is seen as a solution that can withstand the pressures of both natural elements and increasing traffic loads.

Government’s Proactive Steps: The government, through MoRTH, has started consulting with experts in the field of metallurgy and civil engineering to explore the expanded use of stainless steel. They are considering updates to construction standards and specifications to incorporate this material in new and rehabilitated infrastructure projects.

Economic Considerations: Although the initial investment in stainless steel may be higher than conventional materials, the reduced need for repairs and replacements makes it a cost-effective option in the long run. This approach also aligns with the government’s push for sustainable infrastructure that can withstand the test of time and climate change effects.

Future of Indian Infrastructure: With the push for stronger, more durable infrastructure, the Ministry’s move to adopt stainless steel for bridge construction marks a shift towards building climate-resilient structures. The use of this material is expected to not only enhance the safety and longevity of bridges but also reduce the financial burden on the government for constant repairs.

Industry Perspective: The stainless steel industry sees this shift as an opportunity to expand its market, particularly in the infrastructure sector. Stakeholders are engaging with the government to demonstrate the benefits of stainless steel, advocating for its increased use not just in bridges but across various infrastructure projects.

Conclusion: In response to the growing threat of climate change and its impact on infrastructure, the Ministry of Road Transport and Highways is prioritizing the use of stainless steel in bridge construction to combat corrosion and ensure the long-term durability of critical transport structures.

Continue Reading

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds