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Concrete

Sustainability audits and process optimisation

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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)

Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

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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.

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Concrete

Cement Companies May Roll Back Hike

Cement firms reconsider September price increase.

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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.

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Concrete

Bridge Collapse Spurs Focus on Stainless Steel

Climate change prompts stainless steel push.

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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.

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