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Regulatory and compliance challenges play a significant role

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Piyush Joshi, Associate Vice President – Systems and Technical Cell, Wonder Cement, shares their strategies and initiatives aimed at enhancing energy efficiency in cement production, showcasing their commitment to sustainability through innovation and advanced technology.

Can you provide an overview of your company’s current initiatives and strategies to enhance energy efficiency in cement production?
At Wonder Cement, our commitment to energy efficiency is integral to our operational philosophy, encompassing every facet of our production process. One of our cornerstone initiatives is the deployment of Vertical Roller Mills (VRMs), which are recognised for their superior energy efficiency compared to traditional ball mills. These VRMs are equipped with high-efficiency separators, significantly reducing the energy required for cement grinding while maximising output.
We have also invested substantially in Waste Heat Recovery Systems (WHRS) across our facilities. These systems effectively capture waste heat from our kilns, converting it into usable electricity. This approach not only diminishes our dependency on external energy sources but also supports our sustainability objectives by curbing greenhouse gas emissions. Additionally, we have optimised our operational processes through the implementation of energy-efficient lighting, the utilisation of variable frequency drives (VFDs) on motors, and the execution of regular energy audits to identify and mitigate inefficiencies. Our unwavering dedication to innovation and the adoption of cutting-edge technology ensures that Wonder Cement remains a leader in energy efficiency within the cement industry.

What are the key challenges your company faces in implementing energy-efficient practices in the cement manufacturing process?
While our energy efficiency efforts have yielded significant results, the implementation of such practices within the cement manufacturing process presents several challenges. Chief among these is the substantial capital investment required to upgrade existing infrastructure to more energy-efficient alternatives. Integrating new energy efficient systems with existing infrastructure can be technically challenging and may cause temporary disruptions in production processes. Although the long-term benefits of these upgrades are evident, the initial financial outlay can be substantial, particularly when applied across multiple production sites.
Another persistent challenge is the variability in raw material quality, which can directly impact the efficiency of our kilns and mills. Fluctuations in the chemical composition of raw materials necessitate frequent adjustments in our processes, potentially leading to suboptimal energy consumption. Furthermore, the inherently energy-intensive nature of cement production, especially during the clinkerisation process, means that achieving significant reductions in energy use often requires comprehensive overhauls of traditional methods rather than incremental improvements.
Regulatory and compliance challenges play a significant role. Ensuring that our energy efficiency measures align with both local and international environmental standards is a complex process, particularly in regions with stringent regulations. Despite these challenges, Wonder Cement is steadfast in its commitment to overcoming obstacles through continuous innovation, strategic collaboration, and a focus on sustainable practices.

How do advancements in technology contribute to improving energy efficiency in your cement plants? Can you provide some examples?
Technological advancements are pivotal in enhancing energy efficiency within Wonder Cement plants. One of the key innovations we have embraced is the integration of automation and digitalisation throughout our production processes. By implementing advanced process control (APC) systems, we can monitor and optimise our operations in real-time, ensuring the most efficient use of energy at all times. These systems leverage data analytics and machine learning algorithms to predict and address energy inefficiencies proactively, resulting in substantial energy savings.
Another significant technological advancement is the incorporation of alternative fuels within our kilns. By utilising waste-derived fuels, such as refuse-derived fuel (RDF) and biomass, we reduce our reliance on traditional fossil fuels. This not only lowers our carbon footprint but also enhances the energy efficiency of our kilns by maintaining a consistent energy input with minimal fluctuations. The adoption of smart sensors and Internet of Things (IoT) devices has further augmented our energy management capabilities. These technologies provide real-time insights into energy consumption across various stages of production, enabling rapid identification and resolution of inefficiencies. For example, our predictive maintenance programs, powered by IoT, allow us to foresee equipment failures and schedule maintenance proactively, thereby reducing downtime and ensuring continuous, efficient operations.

What role does renewable energy play in your overall strategy for energy efficiency, and how is it integrated into your cement manufacturing operations?
Renewable energy is a fundamental component of Wonder Cement’s broader energy efficiency strategy. We have integrated renewable energy sources, such as solar and wind power, into our manufacturing operations to reduce our reliance on non-renewable energy. Our solar power plants, strategically positioned across our manufacturing sites, contribute significantly to our overall energy needs. By generating clean energy on-site, we not only reduce our electricity costs but also achieve substantial reductions in carbon emissions, underscoring our commitment to sustainability.
In addition to on-site renewable energy generation, we have entered into power purchase agreements (PPAs) with renewable energy providers. These agreements guarantee a consistent supply of green energy to our plants, further diminishing our reliance on grid power derived from fossil fuels. Moreover, our participation in carbon credit markets, facilitated by the integration of renewable energy, has opened up additional revenue streams while reinforcing our role as a responsible corporate citizen.
Our approach to renewable energy extends beyond electricity generation. We are actively exploring the potential of renewable fuels for our kiln operations. Through partnerships with research institutions and technology providers, we are investigating the viability of hydrogen and other renewable energy sources to further reduce our carbon footprint and enhance energy efficiency.

Can you discuss any specific projects or upgrades your company has undertaken to reduce energy consumption and increase efficiency in your cement production facilities?
Wonder Cement has embarked on several key projects aimed at reducing energy consumption and enhancing efficiency across our production facilities. A prominent example is the installation of high-efficiency clinker coolers, designed to maximise heat recovery from the clinker. This recovered heat is then utilised to preheat raw materials, significantly reducing the energy required for subsequent grinding processes. Another critical upgrade involves the widespread implementation of variable frequency drives (VFDs) across our production lines. VFDs allow us to adjust motor speeds based on real-time load requirements, ensuring that we use only the necessary amount of energy for each operation. This has led to considerable energy savings, particularly in our grinding and milling processes.
We have also modernised our lighting systems by transitioning to LED technology, which is notably more energy-efficient and durable compared to traditional lighting solutions. This transition not only reduces our energy consumption but also lowers maintenance costs. Our commitment to continuous improvement is further demonstrated through regular energy audits and the implementation of advanced energy management systems (EMS) that meticulously track and optimise energy usage across all our facilities.

How do you measure and monitor energy efficiency in your cement manufacturing processes, and what metrics are most critical for your company?
Precise measurement and monitoring of energy efficiency are paramount to achieving our sustainability objectives. We have established a robust energy management system (EMS) that delivers real-time data on energy consumption across every stage of our production process. This system is equipped with advanced metering and monitoring tools that track energy usage at granular levels, enabling us to swiftly identify inefficiencies and implement corrective measures.
Among the critical metrics we monitor are specific energy consumption (SEC), which quantifies the energy required to produce a unit of cement, and thermal energy consumption (TEC), which tracks the energy utilised during the clinkerisation process. By closely monitoring these metrics, we can assess the effectiveness of our energy efficiency initiatives and make informed decisions to further optimise our operations. In addition to continuous monitoring, we conduct regular energy audits to evaluate our performance against industry benchmarks and identify opportunities for improvement. These audits, conducted by both internal teams and external experts, ensure that our energy management practices remain objective, accurate, and aligned with industry best practices. The insights gained from these audits are instrumental in refining our energy management strategies and setting ambitious targets for energy reduction.
To promote energy efficiency through innovations, we are having groups of employees at every
production centre for identification, evaluation and execution of new ideas related to energy efficiency for continual improvement.

What partnerships or collaborations has your company engaged in to promote and enhance energy efficiency within the cement industry?
Collaboration is a cornerstone of Wonder Cement’s approach to enhancing energy efficiency within the cement industry. We actively engage with various stakeholders, including technology providers, industry associations, and research institutions, to promote and advance our energy efficiency initiatives.
Our partnerships with technology providers are instrumental in integrating state-of-the-art solutions into our operations, ensuring that we remain at the forefront of energy efficiency advancements. Additionally, our participation in industry associations and knowledge-sharing platforms enables us to exchange best practices with our peers and stay informed about emerging trends and technologies.
We also collaborate with research institutions to explore innovative materials and processes that can further reduce our energy consumption. These collaborations have led to pilot projects where novel solutions are tested and validated before being implemented on a larger scale across our production facilities. Through these partnerships, we are not only advancing our energy efficiency goals but also contributing to the broader sustainability of the cement industry.

How does your company balance the need for energy efficiency with maintaining high production levels and meeting market demands?
We recognise the importance of balancing energy efficiency with maintaining high production levels and meeting market demands. Achieving this balance requires a strategic approach that integrates energy efficiency into every aspect of our production process without compromising on output quality or quantity.
One of the key strategies we employ is the use of advanced process control (APC) systems that optimise our operations in real-time. These systems enable us to maintain consistent production levels while minimising energy consumption by adjusting process parameters based on real-time data. This ensures that we achieve maximum efficiency without disrupting our production schedules. We also emphasise continuous improvement through the application of lean manufacturing principles, which focus on the elimination of waste and the efficient use of resources. By streamlining our processes and reducing inefficiencies, we can maintain high production levels while minimising energy usage. Additionally, our investment in employee training ensures that our workforce is equipped with the necessary knowledge and skills to operate our facilities efficiently, contributing to both productivity and energy efficiency.

Looking ahead, what are your company’s strategic priorities for further improving energy efficiency, and how do you plan to address future energy challenges in the cement industry?
Looking ahead, Wonder Cement is committed to further advancing our energy efficiency through a combination of technological innovation, process optimisation, and strategic investments. Our primary focus will be on expanding our use of renewable energy sources, particularly solar and wind power, to meet a larger portion of our energy needs. We are also exploring the potential of emerging technologies, such as carbon capture and utilisation (CCU) and hydrogen-based fuels, to further reduce our carbon footprint and enhance energy efficiency.
In addition to technological advancements, we plan to continue our efforts in process optimisation through the implementation of advanced data analytics and artificial intelligence (AI) in our energy management systems. These tools will enable us to identify and address inefficiencies in real-time, ensuring that we maintain optimal energy usage at all times.
We are also committed to expanding our collaborations with industry stakeholders, research institutions, and technology providers to drive innovation and share best practices in energy efficiency. By staying at the forefront of industry trends and continuously challenging ourselves to improve, we are confident that we can meet the future energy challenges of the cement industry while maintaining our position as a leader in sustainability.

– Kanika Mathur

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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