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Coal imports on the rise

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CARE Ratings expects higher import of coal during FY19 (2018-19) in the range of 225-240 MT v/s 208 MT in FY18.

Total coal production in India during April-August 2018 was 264 million tonne (MT) and recorded a growth of 10 per cent y-o-y. It was mainly aided by 12 per cent growth in production by Coal India (216 MT) during the first five months of FY19. The two largest state-run coal miners (CIL and SCCL) produced 240 MT of coal, accounting for 90.5 per cent of total production in the country.

Imported Coal Volume up
Coal imports grew by 13.9 per cent during the April-August 2018 period, at 95.2 MT. Share of coal from Australia, Indonesia and South Africa stood at 21.8 per cent, 41.8 per cent and 14.8 per cent respectively. Coal from USA more than doubled y-o-y for the period and constitutes 8 per cent of the total coal imported by India.

Coal import trend is expected to continue as power, cement and steel industry are expected to witness improvement in demand and capacity utilisation. India is the second largest producer and second largest importer of coal behind China,’ leading rating firm CARE Ratings said in an update released in October 2018.

Performance of demand driving sectors
April-August 2018 period witnessed sustained demand for steam coal from power sector with electricity generation reporting 5.3 per cent growth year-on-year (y-o-y), while other sectors like cement and steel, which use thermal coal as feedstock and coking coal as raw material, reported steady growth in production. Steel production has been growing steadily and reported 3.4 per cent growth in FY18. Cement production grew by 14.7 per cent during April-August 2018, said the report, prepared by a team led by Madan Sabnavis, Chief Economist, CARE Ratings.

Thermal power plants in the country reported capacity utilisation above 60.5 per cent after having touched 59 per cent levels in 2017-18. Thermal power plants under CEA reported a marginal drop in receipt of imported coal from 23 MT for April-Aug 2017 v/s 22.5 MT for April-August 2018. This indicates captive power users and others industries are major drivers of demand for imported coal.

Domestic coal shortage has been widely reported especially for thermal power plants. The state-run miner (CIL) on its part has been trying to address the issue of coal shortage at power plants. CIL and SCCL together reported 9 per cent growth in offtake and 10.6 per cent growth in production during April-August 2018. Besides, supply chain issues due to inadequate rail-connectivity for coal evacuation and rake availability continue to be a major factor impacting availability of coal.

Shortage of coal has impacted spot market and merchant power tariffs, hitting Rs 18 per unit levels. Between January-August 2018, coal prices have been in the range of $100-125 with prices hitting the peak average price of $125 in April 2018. Global steam coal prices have been on a steady rise after having touched a low of $50 per tonne in May 2016.

The price fluctuation has been on account of change in policies and supply bottlenecks in Indonesia, which contributes to two-third of the thermal coal imports to India. Increase in demand for thermal coal from China has been another major factor for increase in global coal prices.

Domestically, CIL was planning to introduce a new pricing methodology based on energy content of coal starting April 1, 2018. The implementation of the same has been postponed and is still under discussion. CARE Ratings expects the same to be implemented in the coming quarters of FY19.

Domestic production & imports
Coal India Limited and Singareni Collieries Company Limited are the two largest coal miners in the country. The two companies together produced 240 MT of coal which includes largely thermal coal and limited quantity of coking coal. ‘India’s largest coal producer CIL has been unable to meet its production target but we expect the same to improve in the following quarters as mining operations improve post monsoon, says CARE Ratings.

Capex achievement by CIL and NLC stood at 19 per cent of the Rs. 17,150 crore planned capex during the year. ‘In order to meet their production targets, the mining companies need to achieve their capex targets, focusing on improving production and productivity through mechanisation and automation,’ CARE Ratings adds.

India imported 95 MT of coal (coking and non-coking), recording a growth of 13.9 per cent y-o-y. India imports most of its thermal coal from Indonesia. Coking coal used in the steel industry is imported from Australia. Indonesia (39.8 MT), Australia (20.8MT), South Africa (14.2 MT) and USA (7.6 MT) are the largest source of imported coal by volume between April-August 2018.

Roughly 80-85 GW of thermal power capacity in India is partially or fully dependent on imported coal for fuel. Imported coking coal fulfils 65-70 per cent of the total coking coal demand from steel industry. Around three-fourth of India’s coking coal imports come from Australia, and the remaining from Canada, USA, Russia, Indonesia, etc.

Outlook
Total domestic coal production may remain stagnant with 2.5-3.5 per cent of growth in FY19 at 705-712 MT. Realisation is expected to increase especially on the back of shortage and implementation of the new coal pricing policy by CIL, says CARE Ratings. It expects higher import of coal during the year in the range of 225-240 MT vs 208 MT in FY18. Improved capacity utilisation in power (captive and non-captive users), cement and steel would be major drivers of coal import, the rating agency believes.

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Concrete

Pacific Avenue Completes Acquisition of FLSmidth Cement; Rebrands as Fuller Technologies

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The acquisition of FLSmidth Cement by Pacific Avenue Capital Partners marks a new phase of focused growth and innovation.
Rebranded as Fuller® Technologies, the company will continue delivering world-class solutions with renewed investment and direction.

Pacific Avenue Capital Partners (“Pacific Avenue”), a global private equity firm, has completed its acquisition of FLSmidth Cement following the fulfillment of all customary closing conditions and regulatory approvals. The transaction includes all of FLSmidth Cement’s intellectual property, technology, employees, manufacturing facilities, and global sales and service organizations.

As Fuller Technologies, the company will continue to seamlessly support its customers while advancing its robust portfolio of capital equipment, digital solutions, and service offerings. With a sharpened focus on Pyro and Grinding technologies, alongside core brands such as PFISTER®, Ventomatic®, Pneumatic Conveying, and Automation, Fuller Technologies aims to deliver enhanced value and reliability across the cement and industrial sectors.

Under Pacific Avenue’s ownership, Fuller Technologies will benefit from increased investment in people, products, and innovation. The dedicated management team will work to optimize operations and strengthen customer relationships, ensuring continuity and excellence during this exciting transition.

“We are proud to be the new owner of FLSmidth Cement, now Fuller Technologies, a global leader with a rich history of providing mission-critical equipment and aftermarket solutions in the cement and industrial sectors. We will continue to build upon the Company’s legacy of being at the forefront of technological innovation, service delivery, and product quality as we support our customers’ operations,” says Chris Sznewajs, Managing Partner and Founder of Pacific Avenue Capital Partners.

Pacific Avenue’s deep experience in executing complex industrial carve-outs and guiding standalone businesses into their next growth phase will be instrumental in shaping Fuller Technologies’ future. With a proven track record in building products and capital equipment industries, Pacific Avenue is poised to help Fuller Technologies optimize performance, accelerate growth, and create long-term value for its customers and stakeholders worldwide.

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Concrete

The primary high-power applications are fans and mills

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Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how plants can achieve both cost competitiveness and sustainability by lowering emissions, reducing downtime and planning for significant power savings.

As one of the most energy-intensive industries, cement manufacturing faces growing pressure to optimise power consumption, reduce emissions and improve operational reliability. Technology providers like Innomotics India are enabling this transformation by combining advanced motors, AI-driven digital solutions and intelligent monitoring systems that enhance process stability and reduce energy costs. From severe duty motors built for extreme kiln environments to DigiMine AI solutions that optimise pyro and mill operations, Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how the company is helping cement plants achieve measurable energy savings while moving closer to their sustainability goals.

How does your Energy Performance Contracting model typically reduce power consumption in cement plants—e.g., MWh saved?
Our artificial intelligence-based DigiMine AI Pyro and Mill solutions developed specifically for the cement industry, supports our customers in improving their process stability, productivity and process efficiency. In Pyro, this is achieved by optimising fuel consumption (Coal / AFR), reducing Specific Heat Consumption and reduction in emissions (CO2, SOx and NOx) through continuous monitoring of thermodynamics in pyro and recommending set-points of crucial parameters in advance for maintaining stable operations.
Within the mill, this is achieved by improving throughput, reduce energy / power consumption and maintaining stable operations on a continuous basis. Our ROI-based value proposition captures the project KPIs like reduction of coal usage, increase of AFR, reduction of specific heat consumption (Kcal / Kg), reduction of specific power consumption (KWH / tonne), reduction of emissions, etc., by a specific percentage. This gives clarity to our customers to understand the investment vis-à-vis savings and estimate the recovery time of their investment, which typically is achieved within one year of DigiMine AI Pyro and Mill solutions implementation.

What role do digitalisation and motor monitoring play in overall plant energy optimisation?
Motors are being used extensively in cement production, and their monitoring play crucial role in ensuring continuous operation of applications. The monitoring system can automatically generate alerts for any anomaly / abnormalities in motor parameters, which allows plant team to take corrective actions and avoid any major equipment damage and breakdown. The alerts help maintenance team to plan maintenance schedule and related activity efficiently. Centralised and organised data gives overview to the engineers for day-to-day activities. Cement is amongst the top energy intensive industries in comparison to other industries. Hence, it becomes critically important to optimise efficiency, productivity and up-time of plant equipment. Motor monitoring and digitalisation plays a vital role in it. Monitoring and control of multiple applications and areas
within the plant or multiple plants becomes possible with digitalisation.
Digitalisation adds a layer on top of OT systems, bringing machine and process data onto a single interface. This solves the challenges such as system silo, different communications protocol, databases and most importantly, creates a common definition and measurement to plant KPIs. Relevant stakeholders, such as engineers, head of departments and plant heads, can see accurate information, analyse it and make better decisions with appropriate timing. In doing so, plant teams can take proactive actions before machine breakdown, enable better coordination during maintenance activities while improving operational efficiency and productivity.
Further using latest technologies like Artificial Intelligence can even assist operators in running their plant with minimal requirement of human intervention, which allows operators to utilise their time in focusing on more critical topics like analysing data to identify further improvements in operation.

Which of your high-efficiency IEC low-voltage motors deliver the best energy savings for cement mills or fans?
Innomotics India offers a range of IEC-compliant low-voltage motors engineered to deliver superior performance and energy savings, particularly for applications such as cement mills, large fans, and blowers. Innomotics has the complete range of IE4 motors from 0.37kW to 1000kW to meet the demands of cement industry. The IE5 range is also available for specific requirements.

Can safe area motors operate safely and efficiently in cement kiln environments?
Yes, safe area motors are designed to operate reliably in these environments without the risk of overheating. These motors have ingress protection that prevents dust, moisture ingress and can withstand mechanical stress. These motors are available in IE3 / IE4 efficiency classes thereby ensuring lower energy consumption during continuous operation. These motors comply with relevant Indian as well as international standards.

How do your SD Severe Duty motors contribute to lower emissions and lower cost in heavy duty cement applications?
Severe duty motors enhances energy efficiency and durability in demanding cement applications, directly contributing to lower emissions and operational costs. With high-efficiency ratings (such as IE3 or better), they reduce power consumption, minimising CO2 output from energy use. Their robust design handles extreme heat, dust and vibration—common in cement environments—ensuring reliable performance and fewer energy losses.
These motors also lower the total cost of ownership by reducing downtime, maintenance and replacement frequency. Their extended service life and minimal performance degradation help cement plants meet sustainability targets, comply with emissions regulations and improve overall energy management—all while keeping production consistent and cost-effective.

What pump, fan or compressor drive upgrades have shown approximately 60 per cent energy savings in industrial settings and can be replicated in cement plants?
In the cement industry, the primary high-power applications are fans and mills. Among these, fans have the greatest potential for energy savings. Examples, the pre-heater fan, bag house fan, and cooler fans. When there are variations in airflow or the need to maintain a constant pressure in a process, using a variable speed drive (VSD) system is a more effective option for starting and controlling these fans. This adaptive approach can lead to significant energy savings. For instance, vanes and dampers can remain open while the variable frequency drive and motor system manage airflow regulation efficiently.

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Concrete

We conduct regular internal energy audits

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Shaping the future of low-carbon cement production involves integrating renewables, digitalisation and innovative technologies. Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, gives us a detailed account of how.

In an industry where energy consumption can account for a significant portion of operating costs, cement manufacturers are under increasing pressure to adopt sustainable practices without compromising efficiency. Nuvoco Vistas has taken a decisive step in this direction, leveraging digitalisation, renewable energy and innovative technologies to drive energy efficiency across its operations. In this exclusive conversation, Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, shares its approach to energy management, challenges of modernising brownfield plants and its long-term roadmap to align efficiency with India’s net-zero vision.

How has your company improved energy efficiency over the past five years?
Over the past five years, we have prioritised energy conservation by enhancing operational efficiency and scaling up renewable energy adoption. Through strategic fuel mix optimisation, deployment of cleaner technologies, and greater integration of renewables, we have steadily reduced our environmental footprint while meeting energy needs sustainably.
Technological upgrades across our plants have further strengthened efficiency. These include advanced process control systems, enhanced trend analysis, grinding media optimisation and the integration of solar-powered utilities. Importantly, grid integration at our key plants has delivered significant cost savings and streamlined energy management.
A notable milestone has been the expansion of our solar power capacity and Waste Heat Recovery Systems (WHRS). Our solar power capacity has grown from 1.5 MW in FY 2021–22 to 5.5 MW, while our WHRS capacity has increased from 44.7 MW to 49 MW, underscoring our commitment to sustainable energy solutions.

What technologies or practices have shown the highest energy-saving potential in cement production?
One of our most significant achievements in advancing energy efficiency has been the successful commissioning of a 132 KV Grid Integration Project, which unified three of our major manufacturing units under a single power network. This milestone, enabled by a dedicated transmission line and a state-of-the-art Line-In Line-Out (LILO) substation, has transformed our energy management and operational capabilities.
With this integration, we have substantially reduced our contract demand, eliminated power disruptions, and enhanced operational continuity. Supported by an optical fibre network for real-time communication and automation, this project stands as a testament to our innovation-led manufacturing excellence and underscores Nuvoco’s vision of building a safer, smarter, and sustainable world.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation plays a transformative role in driving energy efficiency across our operations. At Nuvoco, we are leveraging cutting-edge technologies and advanced digital tools to enhance productivity, optimise energy consumption and strengthen our commitment to sustainability and employee safety.
We are developing AI-enabled dashboards to optimise WHRS and kiln operations, ensuring maximum efficiency. Additionally, our advanced AI models evaluate multiple operational parameters — including fuel pricing, moisture content and energy output — to identify the most cost-effective fuel combinations in real time. These initiatives are enabling data-driven decision-making, improving operational excellence and reducing our environmental footprint.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
As part of India’s climate action agenda, the cement sector has laid out a clear decarbonisation roadmap to achieve net-zero CO2 emissions by 2070. At Nuvoco, we view this as both a responsibility and an opportunity to redefine the future of sustainable construction. Our long-term strategy focuses on aligning energy efficiency with decarbonisation goals by embracing innovative technologies, alternative raw materials and renewable energy solutions.
We are making strategic investments to scale up solar power installations and enhance our renewable energy mix significantly by 2028. These initiatives are a key part of our broader vision to reduce Scope 2 emissions and strengthen our contribution to India’s net-zero journey, while continuing to deliver innovative and sustainable solutions to our customers.

How do you measure and benchmark energy performance across different plants?
We adopt a comprehensive approach to measure and benchmark energy performance across our plants. Key metrics include Specific Heat Consumption (kCal/kg of clinker) and Specific Power Consumption (kWh/tonne of cement), which are continuously tracked against Best Available Technology (BAT) benchmarks, industry peers and global standards such as the WBCSD-CSI and CII benchmarks.
To ensure consistency and drive improvements, we conduct regular internal energy audits, leverage real-time dashboards and implement robust KPI tracking systems. These tools enable us to compare performance across plants effectively, identify optimisation opportunities and set actionable targets for energy efficiency and sustainability.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
Adopting energy-efficient technologies in brownfield cement plants presents a unique set of challenges due to the constraints of working within existing infrastructure. Firstly, the high capital expenditure and relatively long payback periods often require careful evaluation before investments are made. Additionally, integrating new technologies with legacy equipment can be complex, requiring significant customisation to ensure seamless compatibility and performance.
Another major challenge is minimising production disruptions during installation. Since brownfield plants are already operational, upgrades must be planned meticulously to avoid affecting output. In many cases, space constraints in older facilities add to the difficulty of accommodating advanced equipment without compromising existing layouts.
At Nuvoco, we address these challenges through a phased implementation approach, detailed project planning and by fostering a culture of innovation and collaboration across our plants. This helps us balance operational continuity with our commitment to driving energy efficiency and sustainability.

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