Concrete

Sustainability audits and process optimisation

Published

3 weeks ago

August 23, 2024

Roshna

Sustainability is the key driver for zero carbon footprint.

The cement industry contributes about 7 per cent to global anthropogenic CO2 emissions, making the cement industry an important sector for CO2-emission mitigation strategies. Cement plants have thus far focused on efficiency measures and projects to replace fossil fuels with alternatives and clinker with supplementary cementitious materials. All these are important ways to reduce cement’s carbon footprint and make progress towards net zero – but they won’t be enough to take the cement industry all the way there. To close the gap, the industry will need carbon capture solutions. While these are being trialed at various cement plants around the world, there is no ‘one size fits all’ solution, and the technology is still in the relatively early stages of readiness. While it is evolving, however, there is no need for cement plants to remain idle – there is plenty that can be done to prepare for carbon capture that will help both improve its effectiveness and reduce the cost
of capture.

Paving the way for net zero
FLSmidth Cement India LLP offers a variety of services to support plants on their sustainability journeys, including sustainability audits and specific carbon capture optimisation services. We bring our experience in process design, commissioning, operation, and optimisation of cement plants worldwide to customers seeking to reduce emissions, improve energy efficiency and maximise productivity.

Sustainability audit
Our sustainability audits include process measurements and an operational study, visual inspection, waste mapping and recommendations for green financing. We provide a comprehensive report outlining the suggestions and possible improvements, with a special focus on reducing greenhouse gas emissions, proven solutions for carbon reduction, and the evaluation of scope 1, 2 and 3 CO2 emissions. The report will suggest ways to:

Improve alternative fuel and raw materials utilisation
Increase thermal substitution rate (TSR)
Improve clinker substitution
Optimise waste heat recovery (WHRS)
Enhance thermal and electrical energy efficiency.
Reduce water and energy waste to zero

Case study
Plant A, operating at 4500 tpd, was experiencing significant pressure drop across the downcomer duct of the preheater system. We conducted CFD simulation to gain insight to the flow distribution in the downcomer duct and top stage cyclone. We found a high pressure drop of ~100 mmWG across the downcomer duct due to high turbulence and the swirling motion of the dust laden gas in the duct. The swirling motion from the top stage cyclone continues through the entire downcomer duct. We made modifications to de-swirl the gas flow from the cyclone outlet with the new ‘Tangential Outlet’. After modification, the flow simulation shows uniform across the cross section with tangential outlet compared to the rainbow outlet. The pressure drop was reduced by 45 mmWG after the modification. A reduction in the pressure drop resulted in a 0.4 kWh/t reduction in specific power consumption in the preheater fan, which equates to a 750 tpa reduction in CO2 emissions.

Fig. 1 Preheater downcomer duct CFD to reduce pressure drop
Plant B reported heavy false air ingress in the kiln seals, which results in high preheater fan power consumption. By replacing the damaged kiln inlet seals with new seals, we were able to reduce Specific Power Consumption (SPC) to 0.24 kWh/t of clinker and Specific Fuel Consumption (SFC) to 5.5 Kcal/kg cl. The false air at ambient temperature was reduced from 24 377 kg/hr to 6076 kg/hr, which is equal to 0.074 kg/kg false air reduction. The calculated CO2 emission reduction was 4435 tpa.

Carbon capture optimisation
Our CCUS optimisation service helps prepare your plant for successful carbon capture. We’ll identify the simple, low-risk modifications to your pyro system that can increase the consistency of your gas flow rate and the concentration of CO2 within the process, so you can reduce the CAPEX and OPEX of a capture plant. At the end of this project, we will outline the site-specific modifications/improvements you can implement for best results.

The scope of a CCUS optimisation service includes:

A feasibility study, including false air audit, cooler balance audit, materials/fuels analysis.
A baseline simulation with scenarios analysis in OneCalc (including modelling of e.g., existing component sealing, low-leakage component upgrades, mill bypass HX implementation, CO2 transport gas integration, future fuel mix/bypass changes, and related water demand/effluent production).
CO2 enhancement recommendations for optimal configuration based on the above analysis.
Evaluation and proposal with capture technology providers (as per customer request).
A heat balance assessment and recommendations (primarily plant-side, to maintain heat needed for material/fuel drying, potentially with some integration of reject streams from capture unit).

We’ll use our proprietary process simulation tool to model the modifications and results, and save the plant model for future reference, so if you decide you want to make further process changes, for example O2 enrichment, H2 firing, alternative fuel change, etc. you can evaluate the impact on the process and on your carbon capture plant.
After optimisation, the amount of CO2 to be captured will be the same, but the flue gas CO2 concentration to the carbon capture unit will increase. This will bring the cost of capture down by 15 per cent to 20 per cent, depending on your specific energy costs – a saving that could equate to millions of dollars. There may also be some savings in CAPEX cost, though these may be offset by the cost of the modifications required at site.

Case study
The first pilot CCUS optimisation service project was carried out at a US Cement plant and the projected impact is a ~17 per cent reduction in OPEX, equal to around US$1.7 million per annum. A second project is underway with a European cement producer, where the projected saving is €4 million per annum.

Conclusion
Cement plant optimisation projects take many different forms, but wherever there is an improvement in energy performance there is usually a CO2 saving to be found. Cement plants looking to reduce their environmental impact should take advantage of optimisation services to discover productivity improvements and energy savings and to prepare for energy-intensive carbon capture projects.

(Communication by the management of the company)

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Concrete

Steel Ministry Proposes Rs.23.52 Lakh Crore for Decarbonisation

Steel Ministry unveils massive decarbonisation plan.

Published

3 hours ago

September 16, 2024

admin

Decarbonisation Proposal:
The Steel Ministry has outlined a substantial Rs.23.52 lakh crore proposal aimed at decarbonising the steel industry. This initiative is part of the broader sustainability and environmental goals set by the Indian government.

Objective and Goals:
The primary objective of the proposal is to reduce carbon emissions significantly and enhance the environmental performance of the steel sector. This aligns with India’s commitment to climate action and green growth.

Investment Focus:
The proposal will channel funds into advanced technologies, energy-efficient processes, and renewable energy sources. Key areas of investment include electrification, hydrogen-based steelmaking, and carbon capture technologies.

Expected Benefits:
Implementing this plan is expected to lead to major reductions in carbon emissions, improve air quality, and contribute to sustainable development. It will also bolster India’s position as a global leader in green steel production.

Industry Impact:
The steel industry, being a major emitter of greenhouse gases, will undergo a transformation. This shift will require industry-wide adaptation and could influence global steel market trends.

Government Support:
The Indian government is committed to providing policy support, incentives, and regulatory frameworks to facilitate this transition. This includes subsidies for green technologies and research and development funding.

Timeline and Phases:
The implementation will be carried out in phases over the coming years. Short-term goals will focus on immediate emission reductions, while long-term goals will target more comprehensive technological advancements.

Stakeholder Involvement:
Collaboration with industry stakeholders, technology providers, and research institutions will be crucial. Engagement with local communities and environmental groups will also play a role in ensuring the success of the proposal.

Challenges:
The initiative may face challenges such as high costs, technological barriers, and regulatory hurdles. Addressing these challenges will be essential for the successful execution of the decarbonisation plan.

Future Outlook:
The proposal positions India as a key player in the global movement towards sustainable steel production. It sets a precedent for other sectors to follow and supports the country’s broader climate goals.

Conclusion:
The Steel Ministry’s proposal for a Rs.23.52 lakh crore decarbonisation plan represents a significant step towards reducing carbon emissions in the steel industry. With substantial investment in green technologies and strong government support, this initiative aims to drive sustainable growth and position India as a leader in environmental stewardship.

Concrete

New home prices in China fall 5.3% in August 2024

New home prices were down 5.3% from a year earlier.

Published

3 hours ago

September 16, 2024

admin

Official data revealed that China’s new home prices had fallen at their fastest rate in over nine years in August, as supportive measures failed to induce a significant recovery in the property sector. The data showed that new home prices were down 5.3% compared to the previous year, marking the sharpest decline since May 2015, compared to a 4.9% drop in July, based on calculations by Reuters from National Bureau of Statistics (NBS) data. Monthly figures indicated that new home prices had fallen for the fourteenth consecutive month, decreasing by 0.7%, which was the same drop recorded in July.

The property market in China continues to struggle with deeply indebted developers, incomplete apartments, and declining buyer confidence, which is putting a strain on the financial system and threatening the 5% economic growth target for the year. A Reuters poll had forecast that home prices in China would decline by 8.5% in 2024 and by 3.9% in 2025 as the sector struggles to stabilise.

Zhang Dawei, chief analyst at property agency Centaline, mentioned that the property market is still gradually bottoming out, with home buyers’ demand, income, and confidence expected to take some time to recover. He noted that the market was anticipating a stronger policy response. According to the official data released on Saturday, property investment had fallen by 10.2% and home sales had dropped by 18.0% year-on-year in the first eight months of the year.

Chinese policymakers have stepped up efforts to support the property sector, including reducing mortgage rates and lowering home buying costs. These measures have partially revitalised demand in major cities, while smaller cities, which have fewer home purchase restrictions and high levels of unsold inventory, are particularly vulnerable. This situation underscores the difficulties faced by authorities in balancing demand and supply across different regions.

In a research note on Friday, Nomura indicated that with the growth slowdown worsening under new headwinds in the second half of the year, Beijing might eventually need to step in as the “builder of last resort” by directly providing funding to delayed residential projects that have already been pre-sold. According to Bloomberg News, China may cut interest rates on over $5 trillion in outstanding mortgages as early as this month.

To support these mortgage rate cuts, economists at ANZ suggested that a reduction in the five-year Loan Prime Rate was likely in September, along with a 20 basis point cut to the medium-term lending facility (MLF) and a 50 basis point cut to the reserve requirement ratio (RRR).

Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

Published

3 days ago

September 13, 2024

admin

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.