Economy & Market
Double Tap to Go Green
Appropriate 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
Praveen Vashistha, Founder, Gxpress Solutions, speaks about building a holistic logistics network that encompasses latest technology and current challenges faced by logistics service providers.
Logistics may seem to only entail transporting a package from one location to another. However, there is more to this term than just that. Logistics refers to the entire process of controlling all movement, transfers and decisions in the correct way at the right time and cost and with the desired level of visibility.
People nowadays want to receive more than just the delivery. They want quick, efficient, reliable and transparent logistics service. On the other hand, companies are facing higher operating costs, broken supply chains, congested cities, changing habits of consumers and growing complexity of logistics services. In this situation, a full logistics package is gaining importance not only as a competitive advantage but also as a necessity for a successful business.
The main challenge lies in uniting the first mile, the middle mile and the last mile into one seamless process.
The journey begins before the package moves
First-mile logistics may be the least recognised part of the logistics chain, but they have a crucial influence on all that follows.
This stage starts from the moment the shipment leaves the manufacturer, supplier, farm, warehouse or distribution centre. Depending on the industry, first-mile logistics may involve grouping shipments from multiple suppliers, compiling paperwork and checking the inventory before sending the shipments to a central hub.
Flaws in first-mile logistics produce effects later down the supply chain. Delays in cargo pickup can affect warehouse operations; improper packaging can damage goods in transit; and incorrect inventory information may cause stockholding or unnecessary replenishments.
This is why building a reliable network involves simplifying the operations done at the beginning of the supply chain.
Companies require accurate demand forecasts, supplier visibility, standard procedures, and software to capture information from the moment a shipment enters the supply chain. Route planning and fleet management are also important at this stage, especially as it may involve contacting multiple suppliers.
The main goal is simply to make the first mile predictable.
The middle mile: Where scale meets complexity
When products leave the original site, they travel through the ‘middle mile,’ which connects fulfilment centres, warehouses, sorting centres, and regional distribution points. In this phase, logistics networks begin operating on a large scale. A shipment can pass through several facilities before reaching the final destination. Each additional transfer entails the risk of delay or damage and information losses. Accordingly, the ideal solution is not to minimise the number of transfers but rather to optimise them. The use of hub-and-spoke networks, regional distribution centres, and strategically placed distribution centres can help companies shorten transportation routes and optimise distribution costs. Besides, data can be used to determine the optimal placement of inventories.
For instance, a retailer may find that it takes more time and is more expensive to deliver goods to customers if everything is stored in a central warehouse. Meanwhile, regional distribution helps meet the customer’s needs quicker and more efficiently.
The last mile is where the customer judges you
When it comes to the logistics experience, the customer experience comes down to the delivery. While the last mile might comprise a small part of the entire journey in actual distance, it could also entail expensive and difficult processes. Delivery runs through densely populated cities, through traffic jams, through unsuccessful delivery attempts, and through changing consumer preferences and narrowed time frames.
Customers want to have control over their delivery. Delivery means that customers expect to know the exact moment when their order is delivered. They need to receive current updates about their orders and the ability to decide whether they want scheduled deliveries, or whether they want their order to be dropped off at a designated location far from their house.
As a result, last-mile logistics must incorporate both efficiency and experience. The technology may be used to ensure timely and accurate delivery, through such products as route optimisation and real-time delivery tracking.
However, technology is not enough to guarantee success in terms of last-mile delivery. Knowledge of the local area is still an important aspect that contributes to successful delivery.
One network, not three separate operations
First, the common mistake that organisations can make is treating the first mile, the middle, and the last mile separately.
An effective first mile of logistics does not matter much if the shipment waits in a hub for many hours. A perfectly working warehouse does not make a happy customer if the last-mile delivery fails. Therefore, even the fastest last-mile delivery can become an expensive operation if the supply is not well geographically positioned.
The three moments should work together as one whole system.
This implies having a common view on inventory, transport capacities, shipment statuses and demand. The Transportation Management System, Warehouse Management System and order management system should give information to each other instead of acting like separate islands.
That is where real-time information comes into play!
If something happens, such as a vehicle gets delayed, the company has to know that from the start. If not, someone from Customer Service should be informed about the situation.
Visibility is the new infrastructure
Previously, companies had to rely on physical assets, such as warehouses, trucks, and sorting facilities, to create their logistics networks. Today, they have an additional layer of technology providing visibility.
Command-and-control systems now include GPS tracking, Internet of Things devices, bar-coding, RFID, cloud computing, artificial intelligence, and analytics, which allow companies to know what the goods are doing, how well they are doing, and what is going to happen next.
Predictive analytics reveal possible delays. AI-powered forecasting increases availability. Digital dashboards enable the manager to monitor all operations in one place. The efficiency of such technologies is not measured in the amount of information they gather, but rather in their capability of converting data into knowledge.
Logistics managers should be able to answer the following questions: Where is it? When is it supposed to arrive? What causes the delay? What impact does it have? Can it be delivered some other way? How much will it cost?
The sooner the answers are given, the more resilient the logistics system is.
Resilience must be designed into the network
The events of recent years have highlighted the vulnerability of interconnected supply chains. Geopolitical tensions, bad weather, a lack of labour, poorly developed infrastructure and an unexpected spike in demand are some events that can cause problems for logistics systems without prior notice. Thus, companies should create an end-to-end network not just for normal times but also capable of functioning quickly in problematic situations. In order to create such a network, it is necessary to find alternative suppliers, use several means of transportation, create several routes of delivery, and establish inventory. It is also important to use scenario planning to define what to do if the main hub becomes unavailable or any means of transportation is blocked.
Sustainability: Part of the delivery equation
The future of logistics will also be shaped by environmental considerations.
As delivery volumes rise, businesses are under increasing pressure to reduce emissions without compromising service. Better route planning, load optimisation, electric vehicles, alternative fuels, renewable-energy-powered warehouses and consolidated deliveries can all contribute. The most sustainable shipment is often the one that does not require unnecessary movement in the first place.
Better demand forecasting and inventory placement can reduce empty miles and avoid repeated transportation. Consolidating deliveries can improve vehicle utilisation. Reverse logistics can ensure that products, packaging and materials return efficiently instead of becoming waste.
Sustainability, therefore, should not be treated as a separate initiative. It should be incorporated into network design itself.
The future belongs to connected logistics
An end-to-end logistics network ultimately seeks to close existing gaps between various processes.
Every mile of the process should be interconnected with the other miles. Warehouses should be aware of the restraints imposed by transportation. Delivery crews should be able to know at every moment the inventory at their disposal. Clients must have access to this useful information.
Companies that will be successful in this area will not necessarily be the ones with the biggest fleets or the most warehouses. They will simply be the ones that can employ their resources in the most effective manner.
The future of logistics will be represented by an ecosystem consisting of the combination of the physical aspect, digital intelligence, and personnel decisions. Every mile in the process of delivery is important. However, the key advantage here is getting those miles to work together.
For companies, it means having minimal resistance, enhancing their efficiency and improving customer care. For clients, it means simply having the right product delivered at the right time.
About the author: Praveen Vashistha, Founder, Gxpress Solutions,
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