Concrete
Double Tap to Go Green
Published
6 months agoon
By
adminAppropriate sourcing of alternative fuels and raw materials (AFR) has long since been a bone of contention in the cement industry. As net-zero emission becomes a concrete target, every stakeholder in the cement supply chain is exploring green substitutes. Indian Cement Review discovers how collaborative efforts with other industries and innovators is proving to be a boon for the Indian cement sector.
Cement manufacturing is a major contributor to global environmental challenges, primarily due to its significant carbon dioxide (CO2) emissions. The production process is inherently carbon-intensive, involving several stages that each contribute to the overall environmental impact. The primary chemical reaction in cement production is the calcination of limestone (calcium carbonate), which produces lime (calcium oxide) and CO2.
This process alone is responsible for approximately 60 per cent of the total CO2 emissions from cement production. Additionally, high temperatures (around 1450°C) are required in the kilns to facilitate the chemical reactions necessary for clinker formation. This heat is traditionally generated by burning fossil fuels such as coal, petroleum coke, and natural gas, contributing around 30-40 per cent of the CO2 emissions.
At present, the installed capacity of cement in India is 500 MTPA with production of 298 million tonnes per annum. Majority of the cement plants installed capacity (about 35 per cent) is located in the states of south India. In PAT scheme, total installed capacity of cement in India is 325 MTPA, which contributes to 65 per cent coverage of total installed capacity in India. With the increase in growth of infrastructure, the cement production in India is expected to be 800 million tonnes by 2030, according to the Bureau of Energy Efficiency, India.
Moreover, cement manufacturing is energy-intensive, and significant amounts of electricity are consumed during the grinding of raw materials and clinker, as well as in other processes. If the electricity comes from fossil fuel-based sources, it adds to the CO2 footprint. Emissions are also generated from the transportation of raw materials to the plant and the distribution of finished cement products, further contributing to the industry’s overall carbon footprint.
In addition to CO2 emissions, cement plants emit dust and particulate matter, which can cause respiratory problems and other health issues for nearby communities. The combustion process releases nitrogen oxides (NOx) and sulphur oxides (SOx), which contribute to air pollution and acid rain. Large quantities of natural resources, including limestone, clay, and other materials, are extracted, leading to landscape alteration and ecosystem disruption.
According to the World Economic Forum report ‘Net-Zero Industry Tracker 2023’, absolute CO2 emissions declined by less than 1 per cent over the last four years amid increases in global production. Emissions intensity remained static over the same time period despite a 9 per cent rise in the clinker-to-cement ratio. The average ratio is currently
72 per cent, while the proposed GCCA target is 56 per cent. The twin forces of urbanisation and population growth are driving cement consumption in China (51 per cent global demand) and India (9 per cent global demand), which necessitates accelerated action to decarbonise the sector to mitigate the impacts of increased production.
To address these environmental challenges, the cement industry is exploring several mitigation strategies. Utilising biomass, waste-derived fuels, and other renewable energy sources can reduce reliance on fossil fuels and lower CO2 emissions. Incorporating industrial by-products like fly ash and slag can reduce the amount of clinker needed, thereby cutting emissions. Advances in kiln efficiency, carbon capture and storage (CCS), and the development of low-carbon cements are crucial in reducing the industry’s carbon footprint. Implementing energy-efficient practices and technologies throughout the production process can significantly lower overall emissions.
The Ministry of Statistics and Programme Implementation states that there is a high potential for generation of renewable energy from various sources like wind, solar, biomass, small hydro and cogeneration bagasse in India. The total potential for renewable power generation in the country as on 31.03.2023 is estimated at 2,109,654 MW This includes solar power potential of 7,48,990 MW (35.50 per cent), wind power potential of 1,163,856 MW (55.17 per cent) at 150m hub height, large hydro power of 133,410MW (6.32 per cent), SHP (small-hydro power) potential of 21,134 MW (1 per cent), Biomass power of 28,447 MW (1.35 per cent) and 13,818 MW (0.66 per cent) from bagasse-based cogeneration in sugar mills.
AFR – Need of the hour
The urgency of reducing the carbon footprint in cement manufacturing has become a pressing issue due to the industry’s significant contribution to global CO2 emissions. As the world strives to meet climate goals and mitigate the impacts of climate change, there is an increasing demand for more sustainable practices within all sectors, including cement production.
According to an article in the International Journal of Sustainable Engineering, Volume 14, 2021, In 2017, China and India, the world’s biggest producers, together produced 64 per cent of the world’s cement, or 2.61 million tonnes of cement out of 4.05 million tonnes. In 2018, these countries together estimated production of 2.66 million tonnes of the total 4.10 million tonnes, or 65 per cent of the world’s total. In the Middle East, Saudi Arabia, the region’s major cement producer, manufactured 0.47 and 0.45 million tons for 2017 and 2018, respectively. In comparison, in the same years, the United States produced 0.86 and 0.88 million tonnes of cement.
Economic and regulatory pressures further drive the need for alternative fuels and raw materials. Governments and international bodies are implementing stricter environmental regulations and carbon pricing mechanisms to curb greenhouse gas emissions. These policies create financial incentives for companies to reduce their carbon footprint and penalise those that fail to comply. Additionally, consumers and investors are becoming more environmentally conscious, favouring companies that adopt sustainable practices.
Adopting alternative fuels and raw materials offers numerous benefits for the cement industry. Utilising waste-derived fuels and industrial by-products can lower production costs by reducing reliance on expensive fossil fuels and virgin raw materials. This shift not only helps in minimising environmental impact but also supports the circular economy by recycling waste materials. Furthermore, improving energy efficiency and incorporating innovative technologies can enhance the overall competitiveness of cement manufacturers by reducing operational costs and future-proofing against potential regulatory changes.
Anirudh Dani, Manufacturing Head – White Cement Division, JK Cement, states,“Safety and quality are key for co-processing of AFR. We have implemented various key safety initiatives specifically for the handling, storage, feeding, and operational processes related to AFR. We ensure the quality and safety of alternative fuels and raw materials by conducting thorough assessments, adhering to strict handling protocols, providing comprehensive
staff training, and implementing regular monitoring and testing throughout the production process.
We have created dedicated storage with all safety measures to store the AFRs with relevant environmental compliances.”
He adds, “For all AFR, we conduct a comprehensive analysis that includes calorific value, chloride content, proximate and ultimate analysis, major and minor oxides, and heavy metals. To ensure safety, we also perform compatibility tests and flash point analysis. Additionally, for all liquid AFRs, we measure pH and viscosity.”
Technological innovations
Tushar Khandhadia, Senior General Manager – Production, Udaipur Cement Works Limited (UCWL), says, “In general, 65 per cent of CO2 generated during clinker formation is through process emission, which comes from the calcination of limestone and 35 per cent is through burning of fuel. The AFR contributes to reducing the CO2 emitted from fuel combustion. Generally, at every 1 per cent increase in TSR, there is reduction of around 2kg CO2/T of clinker. As there is no substitute to the limestone for the clinker formation, increasing the TSR in clinker formation is the only option to reduce CO2 emission during clinker formation.”
Technological innovations and advanced processes play a crucial role in reducing the environmental impact of cement manufacturing. One key area of progress is advances in kiln technology and fuel efficiency. Modern kilns are designed to operate at higher efficiencies, reducing the amount of fuel required to produce clinker. Innovations such as pre-calciner technology and improved heat recovery systems contribute significantly to lowering energy consumption and CO2 emissions. Additionally, alternative fuels, such as biomass and waste-derived fuels, can be utilised more effectively in these advanced kiln systems.
Carbon capture and storage (CCS) and utilisation (CCU) technologies represent another major technological advancement. CCS involves capturing CO2 emissions from cement plants and storing them underground to prevent their release into the atmosphere. CCU goes a step further by finding ways to use captured CO2 in industrial processes, turning it into useful products like synthetic fuels or construction materials. These technologies have
the potential to drastically reduce the carbon footprint of cement manufacturing, making it a more sustainable industry.
Jigyasa Kishore, Vice President – Enterprise Sales and Solutions, Moglix, says, “Green procurement directly tackles environmental challenges by minimising resource depletion, lowering carbon emissions and protecting ecosystems. Choosing energy-efficient equipment, recycled materials and local suppliers all contribute to a smaller ecological footprint for the business.”
“Green procurement goes beyond the initial purchase. It considers the environmental impact of a product or service throughout its entire life cycle, from raw material extraction and production to use and disposal. Choosing products with recycled content, low energy consumption and easy end-of-life disassembly or recycling options is imperative to make sure that sustainability is built into the entire product journey rather than just the initial stage. Evaluation tools such as Life cycle sustainability assessment (LCSA) can help assess a product’s environmental, social and economic impacts through out its life cycle, from raw materials to disposal,” she adds.
The development of low-clinker and low-carbon cements is also a significant area of innovation. Traditional Portland cement relies heavily on clinker, whose production is highly carbon-intensive. By reducing the clinker content and incorporating alternative materials such as fly ash, slag and pozzolans, manufacturers can produce cements with a much lower environmental impact. Additionally, new formulations of low-carbon cements are being developed that minimise CO2 emissions during production and enhance the durability and performance of concrete.
Implications of AFR
The use of alternative fuels and raw materials in cement manufacturing has significant implications for productivity, cost efficiency, and financial viability. These alternatives can enhance the overall sustainability and economic performance of cement plants.
Radhika Choudary, Co-Founder, Freyr Energy, says, “The average operational expenses towards electricity and fuel for the cement industry ranges between 20 per cent to 30 per cent. By transitioning to solar energy, companies can notably slash these expenses, fostering improved cash flows while demonstrating environmental responsibility. Our customers, who have chosen to go solar, have not only enhanced financial viability but also earned accolades from customers for sustainable practices Commercial and industrial customers can have an ROI of 35 per cent to 40 per cent on their solar asset investment, which means a breakeven period of less than three years, which can be further expedited by leveraging tax benefits. Overall, our energy solutions not only reduce manufacturing costs but also bolster sustainability efforts, leading to enhanced profitability and market competitiveness for our clients.”
Cost efficiency
Alternative fuels and raw materials often come with cost advantages. Waste-derived fuels and industrial by-products are typically less expensive than traditional fossil fuels and virgin raw materials. By reducing reliance on costly conventional fuels, cement plants can achieve substantial savings in fuel expenses. Moreover, utilising local waste materials can lower transportation costs and reduce supply chain disruptions. Enhanced energy efficiency and optimised resource use further contribute to reducing operational costs, making the overall production process more cost-effective.
Economic viability
The financial viability of cement manufacturing is strengthened through the adoption of alternative fuels and raw materials. By diversifying energy and material sources, plants can mitigate the risks associated with price volatility in fossil fuels and raw materials markets. Additionally, many governments offer incentives, subsidies and tax benefits for adopting sustainable practices, which can improve the financial performance of cement plants. Investments in technologies that facilitate the use of alternative fuels and raw materials can yield long-term returns by enhancing competitiveness, reducing environmental compliance costs, and positioning the company as a leader in sustainability.
The use of alternative fuels and raw materials in cement manufacturing enhances productivity, cost efficiency and financial viability. By leveraging these alternatives, cement plants can achieve better operational performance, lower production costs and secure a sustainable economic future.
Conclusion
Incorporating alternative fuels and raw materials in cement manufacturing offers significant benefits in terms of productivity, cost efficiency, and financial viability. Advances in kiln technology and process optimisations enable the efficient use of alternative fuels without compromising product quality, enhancing overall productivity. These improvements not only enhance the economic performance of cement plants but also contribute to a more sustainable and environmentally responsible industry. As the cement industry continues to innovate and embrace these alternatives, it moves closer to achieving long-term sustainability and reduced carbon footprints, ensuring a resilient and economically viable future.
– Kanika Mathur
Concrete
Jefferies’ Optimism Fuels Cement Stock Rally
The industry is aiming price hikes of Rs 10-15 per bag in December.
Published
3 weeks agoon
December 4, 2024By
adminCement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.
JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.
“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”
According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.
The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
(ET)
Concrete
Steel Ministry Proposes 25% Safeguard Duty on Steel Imports
The duty aims to counter the impact of rising low-cost steel imports.
Published
3 weeks agoon
December 4, 2024By
adminThe Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.
Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.
The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.
Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.
The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.
(ET)
Concrete
India Imposes Anti-Dumping Duty on Solar Panel Aluminium Frames
Move boosts domestic aluminium industry, curbs low-cost imports
Published
3 weeks agoon
December 4, 2024By
adminThe Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.
The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.
Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.
India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.
The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.
With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.