Renewable energy resources and waste heat recovery are measures that are paramount for cement players to minimise the impact of cement manufacturing on the environment. We explore waste heat recovery systems and its processes that cement makers are utilising in a bid to reduce their carbon footprint.
Concerns about global warming, rising fuel and material costs are challenging industries to reduce their greenhouse gases emission and to improve efficiency on their sites. Waste Heat Recovery (WHR), as an alternative source of energy, plays an important role in this regard for industry processes that are targeting the reduction of fuel consumption and harmful emissions. By definition, ‘Waste Heat Recovery’ is the process of ‘heat integration’, that is, reusing heat energy that would otherwise be disposed of or simply released into the atmosphere. Industrial waste heat is the energy generated out of a chemical process that otherwise is lost or dumped in the environment. By recovering waste heat, plants can reduce energy costs and CO2 emissions, while simultaneously increasing energy efficiency. Sources of waste heat can be heat loss during transfers, conduction, convection or combustion processes. This lost heat can be classified as high temperature, medium temperature and low temperature grades. High temperature waste heat goes greater than 400 degree Celsius medium temperature waste heat ranges from 100 degree to 400 degree Celsius while low waste heat is for temperatures below 100 degree Celsius. A different kind of waste heat recovery system is applicable for each grade of waste heat.
The method of waste heat recovery includes transferring the waste heat from a process with a gas or liquid to derive an extra source of energy. Conventionally, higher the temperature of the heat wasted or recovered, the better quality of an energy source it is. The waste heat power plants installed in cement plants use heat generated from the rotary kilns preheaters and exhaust gases for the generation of power. According to a study conducted by Kawasaki Heavy Industries in Japan, the waste heat recovery system in cement industries can cover approximately 30 per cent of the total electric consumption of the plant. The Japanese have spearheaded the introduction of waste heat recovery plants in their cement industry since as early as the 1980s and are the leaders in this technology instalment.
Cementing the impact Cement manufacturing is an energy intensive process. It requires a large amount of energy to function which is primarily derived from coal. That however, is a non-renewable source of energy as well as a large contributor towards carbon emission. Energy consumption also contributes to approximately 40 per cent of the cement manufacturing costs. The industry as a whole is fighting these challenges and that is where the waste heat recovery plants come as a saviour. According to Sanjay Kumar Khandelwal, Head – Power Plants, JK Cement Ltd., “WHRS utilises hot gases emitted both from preheater as well as clinker cooler to generate power without the usage of any additional fuel. In other words, we are able to generate power without utilising any fossil fuels; which not only reduces overall carbon footprints but also restricts hot gases from entering into the atmosphere.” “This system results in reducing the overall cost of production by reducing Overall Power Consumption cost followed by a reduction in cost through optimum power mix (maximum usage of WHRS and renewable power sources and least usage of grid and CPP power) through effective power management,” he adds.
Processing heat energy Globally in cement plants there are three processes for functionality of Waste Heat Recovery plants, namely, Steam Rankine Cycle System (SRC), Organic Rankine Cycle System (ORC) and Kalina-based system. The mostly widely used system in India is the SRC. “There is a vast potential for power generation from waste heat across the world. The installation of cement WHR based power plants in China is over 80 per cent, much ahead of India. Similarly, Europe, the USA, and Latin America plan to implement WHR in their cement plants. It is observed that waste heat recovery-based power plants are emerging as an excellent value addition to the existing captive power plants. Other than reducing energy costs significantly, it can also be a reliable source of power,” says Arun Mote, Executive Director, Triveni Turbine Limited. The most common raw material used for cement manufacturing is limestone. Depending on the type of cement that needs to be produced, other raw materials like fly ash, clay etc., are added to limestone and are then ground in a fired rotary furnace to form the clinker. Once the clinker production process is complete, it is transferred to coolers and the exhaust gases and hot air are left outside of it. According to a study published in the International Journal of Engineering Research and Technology (IJERT), these exhaust gases from the preheater are on average at 361 degree Celsius and the temperature of the air discharged from the cooler stack is 268 degree Celsius. They are then passed to the waste heat recovery boiler. Water is circulated through the waste heat recovery boiler. Latent heat from the hot gas is transferred to the water and it is converted to steam. This steam is then expanded in the turbine and is condensed. The condensed water is passed through the WHRG and the process repeats. The electricity generated in this process, offsets a portion of the purchased electricity, thereby reducing the electrical energy demand in cement plants. With the results obtained from these processes, the efficiency of the waste heat achieved is 22.7 per cent of the total power generation which results in a large amount of costs being saved in the long run for cement plants.
Other renewable sources India ranks third, behind the US and China, among 40 countries with renewable energy focus, on the back of strong focus by the government on promoting renewable energy and implementation of projects in a time bound manner. The annual energy consumption by the cement industry contributes close to 10 per cent of the total energy consumed in the entire industrial sector. According to the Cement Manufacturers’ Association, modern cement plants consume 68-93 units to produce a ton of cement while the older ones use up 110-120 units of electrical energy. Most cement plants in India are located in hot and dry areas and are subjected to high heat and solar radiations. This presents an opportunity of utilising solar power as an energy source for the cement manufacturing process. Solar plants have a lifetime of 25 years and that is a one-time cost for cement plants to expense. By installing these panels, they can not only substitute energy cost, but can also lower their carbon footprint. Major players in the market such as Dalmia Cement, Birla Cement, UltraTech Cement are using solar energy to meet their sustainability goals. Researchers Aristeides Tsiligiannis and Christos Tsiliyannis in their study for Anion Environmental Ltd. have found solid biofuel, derived from household food waste (food residue biofuel, FRB) as a potential bioenergy source in cement manufacturing. Some of the key issues in cement plant operations issues have been quantitatively assessed by them where the findings have resulted in showing that food residue biofuel can substitute 20 per cent of the thermal energy requirement of a cement plant. This finding can greatly impact waste food disposal as well as make a positive impact on the environment where carbon footprint is concerned for cement plants. To secure and safeguard the environment and to bring out the cement production costs, it has become imperative for cement manufacturing plants to make an investment in the renewable energy sources and systems that allow the cement plants to harness that energy, which is readily available and does not emit carbon dioxide. Reducing their carbon footprint is a challenge every cement organisation has taken up. This can be a major step in achieving the same and fulfilling the sustainability goals determined by the policy makers of the country.
Major cement manufacturers reported a decline in margins for the September quarter, primarily due to lower prices, which led to decreased sales realization.
With the exception of three leading cement producers—UltraTech Cement, Ambuja Cement, and Dalmia Bharat—smaller companies, including Nuvoco Vistas Corp, JK Cement, Birla Corporation, and Heidelberg Cement, experienced a drop in both topline and sales volume during the second quarter of the current fiscal year.
The industry encountered several challenges, including an extended monsoon season, flooding, and a slow recovery in government demand, all contributing to weak overall demand.
Despite these challenges, power, fuel, and other costs largely remained stable across the industry. The all-India average cement price was approximately Rs 348 per 50 kg bag in June 2024, which represented an 11 per cent year-on-year decrease to Rs 330 per bag in September, although it saw a month-on-month increase of 2 per cent.
In the first half of FY25, cement prices declined by 10 per cent year-on-year, settling at Rs 330 per bag. This decline was notable compared to the previous year’s average prices of Rs 365 per bag and Rs 375 per bag in FY23, as reported by Icra.
Leading cement manufacturer UltraTech reported a capacity utilization rate of 68 per cent, with a 3 per cent growth in volume. However, its sales realization for grey cement declined by 8.4 per cent year-on-year and 2.9 per cent quarter-on-quarter during the July-September period.
In response to a query regarding cement prices during the earnings call, UltraTech’s CFO Atul Daga indicated that there had been an improvement in prices from August to September and noted that prices remained steady from September to October. He mentioned that the prices had risen from Rs 347 in August to approximately Rs 354 currently.
Steel companies in India are facing a significant challenge as they contend with an inventory crisis valued at approximately Rs 89,000 crore. This situation has arisen due to a notable increase in steel imports, which has put pressure on domestic producers struggling to maintain sales in a competitive market.
The surge in imports has been fueled by various factors, including fluctuations in global steel prices and increased production capacities in exporting countries. As a result, domestic steel manufacturers have found it difficult to compete, leading to rising stock levels of unsold products. This inventory buildup has forced several companies to reassess their production strategies and pricing models.
The financial impact of this inventory crisis is profound, affecting cash flows and profitability for many steel firms. With domestic demand remaining volatile, the pressure to reduce prices has increased, further complicating the situation for manufacturers who are already grappling with elevated production costs.
Industry experts are urging policymakers to consider measures that can support local steel producers, such as imposing tariffs on imports or enhancing trade regulations. This would help to protect the domestic market and ensure that Indian steel companies can compete more effectively.
As the steel sector navigates these challenges, stakeholders are closely monitoring the situation, hoping for a turnaround that can stabilize the market and restore confidence among investors. The current dynamics emphasize the need for a robust strategy to bolster domestic production and mitigate the risks associated with excessive imports.
JSW Group has signed a Memorandum of Understanding (MoU) with South Korea’s POSCO Group to develop an integrated steel plant in India. This collaboration aims to enhance India’s steel production capacity and contribute to the country’s growing manufacturing sector.
The agreement was formalized during a recent meeting between executives from both companies, highlighting their commitment to sustainable development and technological innovation in the steel industry. The planned facility will incorporate advanced manufacturing processes and adhere to environmentally friendly practices, aligning with global standards for sustainability.
JSW Group, a leader in the Indian steel industry, has expressed confidence that the joint venture with POSCO will bolster its position in the market and accelerate growth. The project is expected to attract significant investments, generating thousands of jobs in the region and contributing to local economies.
As India aims to boost its steel output to meet domestic demand and support infrastructure projects, this partnership signifies a crucial step toward achieving those goals. Both companies are committed to leveraging their expertise to develop a state-of-the-art facility that will produce high-quality steel products while minimizing environmental impact.
This initiative also reflects the increasing collaboration between Indian and international firms to enhance industrial capabilities and foster economic growth. The MoU sets the stage for a promising future in the Indian steel sector, emphasizing innovation and sustainability as key drivers of success.