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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

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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