Economy & Market

Innovating Energy

Published

7 months ago

September 11, 2025

admin

Energy optimisation is a cornerstone of a smart cement plant, as it helps in lowering costs and cutting carbon. ICR delves into the different aspects that make a cement plant more energy efficient, accountable and sustainable.

The cement industry is among the most energy-intensive sectors globally, representing a critical frontier for energy efficiency gains. According to the International Energy Agency, global cement production today consumes roughly 100 kWh of electricity per tonne of cement, alongside thermal energy intensity of about 3.6 GJ per tonne of clinker. This energy intensity must fall to below 90 kWh and 3.4 GJ respectively by 2030 to align with Net-Zero trajectories.
India’s cement sector already stands out as relatively energy efficient. According to the OECD, the national average thermal energy consumption hovers at 725 kcal per kg of clinker (˜3.04 GJ/t), and electrical energy usage averages about 80 kWh per tonne of cement, both notably lower than the global averages of approximately 934 kcal/kg clinker and 107 kWh/t cement.
Still, there’s significant room for improvement. The Confederation of Indian Industry’s latest benchmarking shows that while average electrical energy consumption in the Indian cement sector has fallen from 88 kWh/tonne in 2014 to 73.75 kWh/tonne in 2023, the best-performing plants have pushed that down even further—to about 56 kWh/tonne of cement, and 675 kcal/kg of clinker in thermal terms. These figures spotlight the potential—and the urgency—for the rest of the industry to accelerate its energy efficiency trajectory.

Need for Energy Efficiency
Global energy efficiency is rightly dubbed the ‘first fuel’ in the clean-energy transition. According to the International Energy Agency, enhancing energy efficiency is the single most cost-effective and fastest route to cut CO2 emissions while lowering operational costs and strengthening energy security. Efficiency gains alone could fulfil up to 40 per cent of the greenhouse-gas reductions needed to meet Paris Agreement goals, making them indispensable for sectors like cement that are poised for long-term infrastructure growth.
Speaking about the need for cement manufacturers to invest in energy efficiency solutions, MM Rathi, Joint President, Power Management, Shree Cement, says, “Because it directly reduces operating costs, ensures compliance with tightening regulations, and strengthens carbon credentials at a time when financing and markets reward low-carbon players. With mature technologies and strong incentives available, delaying only increases both cost and risk.”
Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, explains, “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.”
Alex Nazareth, Whole-time Director and CEO, Innomotics India, expounds, “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.”
In cement manufacturing, energy footprint looms large: production of this indispensable material accounts for 7–8 per cent of global CO2 emissions due to energy-intensive processes and raw-material calcination. A recent report by Reuters confirms that over half of cement’s emissions stem from clinker production, highlighting how inefficient
thermal operations translate directly into climate and cost concerns. In this context, every percentage
point of energy saved not only cuts fuel and electricity costs but also contributes meaningfully to decarbonisation efforts.
With regards to innovations in energy efficiency, Dr Avijit Mondal, Deputy General Manager (DGM), NTPC Energy Technology Research Alliance (NETRA), NTPC, exemplifies, “Cement manufacturing is among the most energy-intensive industrial processes, with continuous high loads from kilns, grinding mills, crushers and conveyors. Integrating a hybrid behind-the-meter microgrid offers a powerful solution to improve energy efficiency, reduce power costs and enhance operational resilience. A typical integrated cement plant can deploy a hybrid system comprising 8-15 MWp of rooftop and ground-mounted solar PV, 8-25 MW of waste heat recovery (WHR) capacity, and a Battery Energy Storage System (BESS) sized for 15-30 minutes of peak plant load. In this configuration, solar PV supplies the daytime base load for processes like grinding and material transport, WHR delivers steady baseload power for kiln and cooler exhaust, and BESS handles ramping and flicker control.”

Barriers to Adoption
Rathi points out that the single biggest barrier is the high upfront capital cost and longer payback periods. According to a study published in PubMed Central, capital limitations are the third most significant barrier to sustainability transformation in the sector—particularly given the hefty investment and slow payback associated with energy projects such as waste-heat recovery systems (WHR) and captive power plants. The report highlights costs of approximately US$2.4 million per MW for WHR systems and US$1 million per MW for captive
power, making rapid returns challenging for many manufacturers.
Suryam shares, “Adopting energy-efficient technologies in brownfield cement plants presents a unique set of challenges due to the constraints of working within existing infrastructure. Another major challenge is minimising production disruptions during installation. Since brownfield plants are already operational, upgrades must be planned meticulously to avoid affecting output.”
Raman Bhatia, Founder and Managing Director, Servotech Renewable Power System, states, “Deploying large-scale solar solutions, comes with unique challenges that require careful planning and execution. One of the primary hurdles in such projects is the structural readiness of industrial rooftops, as they must be able to support the weight and scale of the installation while ensuring long-term safety and durability.”
Beyond financial constraints, there remains a glaring awareness and information gap across the industry. A 2017 report by the International Finance Corporation (IFC) identifies several non-financial barriers, including regulatory uncertainty, lack of project-level knowledge, limited access to sustainable energy financing and internal misalignment of priority between expansion projects and energy efficiency initiatives. Despite the strong long-term returns, energy-saving measures are often overshadowed due to lack of clarity, understanding or management focus within cement organisations.
Finally, the skills deficit stands is a major drag on energy efficiency deployment—not just in renewables but across industrial sectors including cement. According to Reuters, India’s clean energy ambitions are being undermined by an acute shortage of skilled professionals. In the solar industry alone, there’s a shortfall of around 1.2 million trained workers, a gap expected to grow by 2027. Without robust technical know-how—whether for installation, operations, digital monitoring or maintenance—cement plants struggle to implement and sustain efficiency technologies effectively.

Digital Transformation of Energy
Digital transformation is reshaping the cement industry, turning traditional analogue plants into data-driven operations. Internet of Things (IoT) and Industrial IoT (IIoT) systems are being deployed across operations to capture real-time data from kilns, mills, conveyors, and control systems. This information integrates into Energy Management Systems (EMS) that monitor consumption, optimise equipment use and quickly flag inefficiencies. Automation tools like VFDs, smart MCCs and sensors enable not just monitoring, but also proactive control of power-intensive assets—unlocking substantial energy savings through real-time adjustments.
Artificial Intelligence (AI) is adding another layer of sophistication. According to industry estimates, AI in cement manufacturing can reduce energy consumption by up to 15 per cent and cut electricity usage by approximately 28 per cent, thanks to real-time monitoring and feedback loops. Moreover, smart cement plant research indicates that AI implementation can lower overall energy use by 22.7 per cent, reduce downtime by 75 per cent and improve clinker consistency by nearly 12 per cent. These gains underline how machine learning and process-optimisation algorithms can deliver both cost and carbon dividends in one go.
Referring to energy-efficient technologies as vital, Rathi states, “They will lower operating costs, enable decarbonisation and accelerate the shift toward digital, circular and low-carbon manufacturing, making energy efficiency the backbone of competitiveness and sustainability.”
Beyond AI, the rise of digital twins and advanced modelling is giving plant managers unprecedented foresight. Simulated virtual replicas of cement lines let operators test energy-saving scenarios without risking real-world performance. According to a report by Ramco, predictive quality analytics and kiln-fuel blending driven by machine learning enable optimal resource utilisation, lowering both energy consumption and emissions. These systems are especially promising where alternative fuels or clinker substitutes are used—helping ensure consistency and efficiency in challenging process conditions.
Citing the example of modern mineral processing with digital technology, Karen Thompson, President, Haver & Boecker Niagara’s North American and Australian Operations, referred to Artificial intelligence (AI) as a practical tool that’s reshaping how quarries operate. “One of the most impactful applications is in predictive analytics. Unplanned downtime not only disrupts production but also leads to increased energy use, emergency repairs and premature equipment disposal — all of which have environmental consequences. Predictive maintenance technologies help mitigate these risks. Tools like condition monitoring and vibration analysis use wireless sensors to continuously assess equipment health,” she states.
Smart energy management tools powered by IIoT are bridging operations, maintenance, and strategic dashboards. ABB’s Ability™ Knowledge Manager, for instance, allows integration of production, downtime, quality, energy, and emissions data into a unified platform—and deliver insights even via mobile access. A leading Indian cement producer implemented the suite across multiple plants, achieving ROI in just eight months, cutting costs by 3-5 per cent and extending asset lifecycles—demonstrating how digital tools are central to modernising
energy management.

The Green Route
In an industry where energy constitutes up to 40 per cent of production costs, unlocking free sources of power can be a game-changer. Waste Heat Recovery Systems (WHRS) tap into high-temperature exhaust—like kiln preheater gases—and convert up to 30 per cent of a plant’s electricity needs into usable power, using steam turbines or Rankine cycles. A report by the Ministry of New and Renewable Energy mentions that the Indian cement sector possesses a WHRS potential of nearly 1.3 GW, which could annually reduce coal use by approximately 8.6 million tonnes and cut 12.8 million tonnes of CO2 emissions.
Commenting about viable renewable energy solutions, Ghosh says, “Cement industry is a continuous process industry with high power intensity. It requires green, reliable and cost-effective power solutions. Historically, cement plants have preferred the group captive model given the scale of power requirement. From a green power solutions perspective, round-the-clock solutions with a mix of solar, wind and battery storage (or PSP storage) are best suited to meet the power needs of the cement industry. With reduction in battery CAPEX and further learning curves, we see the cost effectiveness of RTC solutions continues to improve in the near term. An important element to make this competitive is to size the configuration based on very granular analytics, such as optimisation of the battery cycling rate through the life of the plant.”
“Most energy efficiency measures are also value accretive. In fact, if you were to draw the marginal abatement cost curve – you will find that >50 per cent of measures to reduce carbon footprint also being in cost reduction, which is a win-win. This is true not just for cement plant operations but across the value chain including logistics. For example, reducing the per tonne per kilometre (PTPK) costs also help in significant carbon footprint reduction which can be achieved by improving packing efficiencies, route optimisation, etc. Hence, energy efficiency helps improve the cost competitiveness in heavy industries and is not contrarian in nature,” he added.
Narrowing down on solar energy, Bhatia shares, “Our patented peak-shaving technology is designed to optimise energy usage efficiency by reducing costly demand spikes that are common in energy-intensive operations. In industries like cement manufacturing, where power consumption can suddenly surge due to heavy machinery, these peaks often translate into higher demand charges on electricity bills. By intelligently managing when and how energy is drawn from the grid and dispatching battery energy storage (BESS) during peak grid usage, we ensure smoother load profiles, lower costs and mitigate tariff exposure.”
Despite its promise, WHRS adoption isn’t universal. A report by ICRA indicates that Indian cement producers plan to invest around Rs.1,400–1,700 crore by FY2022 to add 175 MW of WHRS capacity, which brings the cumulative installed base to 520 MW—covering only about 16 per cent of their power needs. However, the low marginal power cost from WHRS—at just around Rs.1-1.5 per kWh compared to Rs.4.5–5 for captive thermal power—delivers an estimated 14-18 per cent reduction in power expenses, boosting operating margins by 1.1-1.4 percentage points.
Parallel to WHRS, alternative fuels and raw materials are creating dual efficiencies by cutting both energy demand and raw-material inputs. According to CMA, India’s sector-wide Thermal Substitution Rate (TSR) has grown from 0.6 per cent in 2010 to 4 per cent in 2017, with some plants achieving TSR levels of 25-35 per cent using Refuse-Derived Fuel (RDF), agro-waste, sludge and other residues. These co-processing strategies lower dependence on fossil fuels and reduce environmental impacts — moving both raw materials and energy into a more circular usage cycle.
Looking ahead, the synergy between efficiency gains and circular economy gains positions cement firms for long-term competitiveness. WHRS delivers an immediate reduction in operational cost and carbon footprint, while alternative fuel and raw-material integration opens pathways for regulatory resilience, lower input costs and brand differentiation in a sustainability-conscious market. Yet realising their full potential requires overcoming technical challenges, scaling effective logistics and embracing policy frameworks that support both waste valorisation and energy innovation.

Energy Audits
Energy audits serve as foundational tools in the pursuit of operational efficiency within the cement sector, spotlighting precisely where energy is being wasted and where savings can be unlocked. A detailed study by the National Council for Cement and Building Materials (NCB) revealed that kilns are sometimes operated with heat consumption as high as 850 kcal/kg clinker, whereas the industry’s best-performing plants function around 675-685 kcal/kg clinker. Energy audits helped bridge this gap by pinpointing inefficiencies like cooler losses and false air entry—in one case, a reduction of just five kcal/kg clinker yielded annual cost savings of approximately Rs.45-50 lakh for a 1 Mtpa plant. A report by NCB underscores this: energy audits can deliver substantial returns by diagnosing hidden inefficiencies and guiding corrective actions.
Complementing audits, benchmarking empowers cement producers to realistically gauge their energy performance against industry leaders. According to the latest CII benchmarking manual, while
average electrical consumption stands at 73.75 kWh/MT cement, the top 10 plants operate at an impressively efficient 56.14 kWh/MT. Similarly, thermal benchmarks show a gap—from the sector average of 726 kcal/kg clinker to best-in-class levels around 675 kcal/kg. These metrics allow companies to set ambitious yet achievable targets, fostering continuous improvement and motivating strategic investments in efficiency technologies.
Data plays a crucial role in this process.
Debabrata Ghosh, Head of India, Aurora Energy Research, states, “Advanced analytics has several use cases to enhance cement plant performance in improving quality, increasing throughput and reducing cost thereby improving margins/ realisations. Use cases differ by part of the process. Availability of granular and high-quality data captured real time through effective information systems is the primary requisite. Typically, use cases with low effort and high impact should be prioritised to capture low hanging fruits. Structural, big-ticket solutions typically bring about medium term impact on either/ all the three metrics.”

Skill Development for Efficiency
India’s hammering of energy efficiency in manufacturing hinges critically on skilled manpower—a resource that remains alarmingly sparse. According to a Reuters report titled ‘Skills shortage hobbles India’s clean energy aspirations,’ the renewable sector faces a skill gap of approximately 1.2 million workers, projected to rise to 1.7 million by 2027, severely impacting deployment and operational effectiveness of technologies like solar, wind and energy-efficient systems. As clean-energy integration grows, this shortage threatens to stall progress across sectors—including cement—where specialised knowledge in automation, digital monitoring and system optimisation is increasingly indispensable.
Within the cement industry itself, the urgency for upskilling is clear. A recent industry snapshot by ZIPDO Education reveals that 48 per cent of workers feel unprepared for the digital transformation of their plants, while 53 per cent lack basic digital literacy, and 58 per cent report shortages in AI and data analytics skills. However, the same report also signals momentum: 72 per cent of cement firms anticipate expanding digital training programs by 2025, and 80 per cent deem reskilling essential to meet sustainability goals. These figures underscore both the magnitude of the gap and the growing recognition that skill development is no longer optional—but foundational to staying energy-competitive.

OEMs, EPCs and Cement Producers Collaboration
Strategic collaboration between Original Equipment Manufacturers (OEMs), Engineering-Procurement-Construction (EPC) firms and cement producers is proving to be a game-changer in operational efficiency. For instance, a case highlighted in Indian Cement Review recounts how JK Cement’s switch to Mobil SHC™ 632 premium lubricants—not just designed but optimised in coordination with OEM partners—enhanced gearbox efficiency by about 0.8 per cent, saved 263 litres of oil, and delivered cost savings of US$18,764 (Rs.13.1 lakh) annually. This partnership model underscores how nuanced inputs from technical suppliers, paired with operational insights from plant engineers, can translate directly into energy and cost gains.
Similarly, EPC collaborations are demonstrating real traction in energy optimisation. At a leading cement producer’s site in Rajasthan, EPC partner Thermax implemented a blend of operational and capital interventions—like Variable Frequency Drives (VFDs) and auto-control flow logics—for both captive power and WHRS. The results were tangible: cost savings of Rs.7.24 million from capex and Rs.1.88 million from opex in the captive plant, plus Rs.870,000 and Rs.190,000 respectively in the WHR facility. This affirms how EPC-led evaluation and targeted upgrades can yield substantial efficiency returns.

Long Term ROI
In the long run, energy-efficient systems are not merely cost-saving tools—they are strategic investments with powerful paybacks. According to an ICRA report, Indian cement companies planned to deploy 175 MW of Waste Heat Recovery Systems (WHRS) by FY 2021–22, involving a total investment of Rs.1,400–1,700 crore. This investment is expected to widen operating margins by 1.10-1.40 per cent, as WHRS-powered electricity costs just Rs.1.3-Rs.1.5 per kWh, compared to Rs.4.5-Rs.5 per kWh for conventional captive thermal power. Furthermore, Global Cement’s market analysis reveals that WHRS-generated power typically comes in at just US$0.02/kWh, significantly lower than the ~US$0.70/kWh from coal-based captive plants, which allows for around 15 per cent savings in power costs when covering 25 per cent of capacity.
Beyond direct savings, integrating energy-efficient technologies like WHRS or advanced refractories contributes materially to carbon footprint reduction, bolstering ESG performance and potentially unlocking regulatory or market advantages. A detailed case study published by Indian Cement Review in 2024 notes that upgrading kiln burning zones with high-insulation refractories can reduce fuel consumption by 6 per cent, translating into annual savings of roughly `3.5 crore for a 6,000 TPD kiln. The switch also results in an estimated 0.1 tonne of CO2 reduction per tonne of clinker, highlighting how operational efficiencies can create both cost and carbon dividends.

Conclusion
Energy efficiency in cement manufacturing is no longer just a choice—it is an imperative for competitiveness, compliance, and climate responsibility. From waste heat recovery systems to digital transformation and advanced refractories, the sector has already demonstrated that operational savings and carbon reductions can go hand in hand. According to ICRA, WHRS investments alone can expand operating margins by 1.10-1.40 per cent for Indian cement players, showing that the financial case for efficiency is robust. These tangible benefits are proving that efficiency measures are not incremental improvements but transformative enablers for long-term resilience.
At the same time, the industry must overcome barriers such as high upfront costs, limited awareness and skill gaps. Energy audits, benchmarking practices and collaborations between OEMs, EPC contractors and cement producers are emerging as essential tools to bridge these gaps. As noted in multiple case studies, even relatively modest upgrades—such as switching to high-performance refractories—can yield significant savings in fuel costs and emissions reductions. These wins create a strong foundation upon which deeper decarbonisation strategies can be built.
Looking ahead, the integration of emerging technologies—AI, IoT and smart energy management—will further optimise cement operations. Combined with alternative fuels, raw materials and large-scale carbon capture, these innovations are positioning the industry to drastically lower its energy intensity and carbon footprint. The pace of adoption will determine how quickly the sector transitions from incremental efficiency gains to systemic decarbonisation. With India expected to double its cement demand by 2030, scaling these solutions is both a necessity and an opportunity.
The future of cement lies in aligning energy efficiency with the global net-zero agenda. By 2050, achieving net-zero cement production will require a mix of aggressive efficiency measures, deep electrification, large-scale use of alternative fuels and breakthrough technologies such as CCUS. The journey is complex, but the direction is clear: energy efficiency is not only the first step but also the cornerstone of a sustainable cement industry. Those who act decisively today will not only cut costs and carbon but also secure their place as leaders in a net-zero future.– Kanika Mathur

Up Next

Gst Cut Sets the Stage for Growth

Don't Miss

Cementing Circularity: From Waste to Value

Economy & Market

SEW-EURODRIVE India Opens Drive Technology Centre in Chennai

Published

2 weeks ago

March 25, 2026

admin

The new facility strengthens SEW-EURODRIVE India’s manufacturing, assembly and service capabilities

SEW-EURODRIVE India has inaugurated a new Drive Technology Centre (DTC) in Chennai, marking a significant expansion of its manufacturing and service infrastructure in South India. The facility is positioned to enhance the company’s responsiveness and long-term support capabilities for customers across southern and eastern regions of the country.

Built across 12.27 acres, the facility includes a 21,350-square-metre assembly and service setup designed to support future industrial growth, evolving application requirements and capacity expansion. The centre reflects the company’s long-term strategy in India, combining global engineering practices with local manufacturing and service capabilities.

The new facility has been developed in line with green building standards and incorporates sustainable features such as natural daylight utilisation, solar power generation and rainwater harvesting systems. The company has also implemented energy-efficient construction and advanced climate control systems that help reduce shopfloor temperatures by up to 3°C, improving production stability, product quality and working conditions.

A key highlight of the centre is the 15,000-square-metre assembly shop, which features digitisation-ready assembly cells based on a single-piece flow manufacturing concept. The facility also houses SEW-EURODRIVE India’s first semi-automated painting booth, aimed at ensuring uniform surface finish and improving production throughput.

With the commissioning of the Chennai Drive Technology Centre, SEW-EURODRIVE India continues to strengthen its manufacturing footprint and reinforces its long-term commitment to supporting industrial growth and automation development in India.

Concrete

Material Flow Efficiency

Published

3 weeks ago

March 18, 2026

admin

We explore how material handling systems are becoming strategic assets in cement plants, enabling efficient movement of raw materials, clinker and finished cement. Advanced conveying, automation and digital technologies are improving plant productivity while supporting energy efficiency and sustainability goals.

Material handling systems form the operational backbone of cement plants, enabling the efficient movement of raw materials, clinker and finished cement across complex production networks. With India’s cement industry producing over 391 million tonnes of cement in FY2024 and possessing an installed capacity of around 668 mtpa, according to the CRISIL Research Industry Report, 2025, efficient material logistics have become critical to maintaining plant productivity and cost competitiveness. At the same time, cement production is highly energy intensive and contributes around 7 per cent to
8 per cent of global CO2 emissions, making efficient material flow and logistics optimisation essential for reducing operational inefficiencies and emissions states the International Energy Agency Cement Technology Roadmap, 2023. As plants scale capacity and integrate digital technologies, modern material handling systems, ranging from automated conveyors to intelligent stockyards, are increasingly recognised as strategic assets that influence plant stability, energy efficiency and environmental performance.

Strategic role of material handling
Material handling is no longer viewed as a secondary utility within cement plants; it is now recognised as a strategic system that directly influences production efficiency and process stability.
Cement manufacturing involves the continuous movement of large volumes of limestone, clay, additives, clinker and finished cement across multiple production stages. Even minor disruptions in conveying systems or storage infrastructure can lead to kiln feed fluctuations, production delays and significant financial losses. According to Indian Cement Industry Operational Benchmarking Study, 2024, unplanned downtime in large integrated cement plants can cost between Rs.15–20 lakh per hour, highlighting the economic importance of reliable material handling systems.
Modern cement plants are therefore investing in advanced mechanical handling systems designed for high throughput and operational reliability. Large integrated plants can process over 10,000 tonnes per day of clinker, requiring highly efficient conveying systems and automated stockyards to maintain continuous material flow, suggests the International Cement Review Industry Analysis, 2024. Efficient material handling also reduces spillage, minimises dust emissions and improves workplace safety. As cement plants become larger and more technologically advanced, the role of material handling is evolving from simple transport infrastructure to a critical operational system that supports both productivity and sustainability.

From quarry to plant
The transport of raw materials from quarry to processing plant represents one of the most energy-intensive stages of cement production. Traditionally, limestone and other raw materials were transported using diesel-powered trucks, which resulted in high fuel consumption, dust generation and increased operational costs. However, modern plants are increasingly adopting long-distance belt conveyors and pipe conveyors as a more efficient alternative. These systems allow continuous material transport over distances of 10–15 kilometres, significantly reducing fuel consumption and operating costs while improving environmental performance, states the FLSmidth Cement Industry Technology Report, 2024.
Milind Khangan, Marketing Manager, Vertex Market Research & Consulting, says, “Efficient and enclosed handling of fine materials such as cement, fly ash and slag requires modern pneumatic conveying systems. By optimising the air-to-material ratio, these systems can reduce energy consumption by 10 per cent to 15 per cent while ensuring smooth material flow. Closed-loop conveying further minimises dust loading and improves the performance of bag filters, supporting cleaner plant operations. In addition, flow-regulated conveying lines help prevent clogging and maintain reliable dispatch performance. Overall, automation in pneumatic conveying delivers immediate operational benefits, including improved equipment uptime, lower energy use, reduced material spillage and more stable kiln and mill performance.”
Pipe conveyor systems are particularly gaining traction because they provide a completely enclosed transport system that prevents material spillage and dust emissions. According to global cement engineering studies, conveyor-based transport can reduce energy consumption by up to 30 per cent compared to truck haulage, while also improving operational reliability. Several cement plants in India have already implemented such systems to stabilise quarry-to-plant logistics while reducing carbon emissions associated with diesel transport.

Stockyard management and homogenisation
Stockyards play a critical role in maintaining raw material consistency and stabilising kiln feed quality. Modern cement plants use advanced stacker and reclaimer systems to ensure efficient storage and blending of raw materials before they enter the grinding and pyroprocessing stages. Automated stacking methods such as chevron or windrow stacking enable uniform distribution of materials, while bridge-type or portal reclaimers ensure consistent extraction during kiln feed preparation. These systems are essential for maintaining stable chemical composition of raw meal, which directly influences kiln efficiency and clinker quality. The Cement Plant Operations Handbook, 2024 indicates that advanced homogenisation systems can reduce raw mix variability by up to 50 per cent, significantly improving kiln stability and energy efficiency. Integrated stockyard management systems also incorporate sensors for monitoring bulk density, moisture levels and stockpile volumes, enabling real-time control over material blending processes.

Clinker and cement conveying technologies
Once clinker is produced in the kiln, it must be efficiently transported to storage silos and subsequently to grinding and packing units. Modern cement plants rely on high-capacity belt conveyors, bucket elevators and pneumatic conveying systems to manage this stage of material flow. Steel-cord belt bucket elevators are now capable of lifting materials to heights exceeding 120 metres with capacities reaching 1,500 tonnes per hour, making them suitable for large-scale clinker production lines, states the European Cement Engineering Association Technical Paper, 2023.
For fine materials such as cement, fly ash and slag, pneumatic conveying systems provide a reliable and dust-free solution. These systems transport powdered materials using controlled airflow, ensuring enclosed and contamination-free movement between grinding units, silos and packing stations. Optimised pneumatic systems can reduce energy consumption by 10 per cent to 15 per cent compared to older conveying technologies, while also improving plant cleanliness and environmental compliance, according to the Global Cement Technology Review, 2024.

Automation and digitalisation
Digitalisation is transforming material handling systems by introducing real-time monitoring, predictive maintenance and automated control. Advanced sensors and Industrial Internet of Things (IIoT) platforms enable plant operators to track conveyor health, stockpile levels and equipment performance in real time. Predictive maintenance systems analyse vibration patterns, temperature fluctuations and equipment load data to detect potential failures before they occur. According to McKinsey’s Industry 4.0 Manufacturing Report, 2023, for heavy industries, digital monitoring and predictive maintenance technologies can reduce equipment downtime by up to 30 per cent and increase productivity by 10 per cent to 15 per cent. Digital control centres also integrate data from conveyors, stacker reclaimers and dispatch systems, enabling centralised management of material flows from quarry to dispatch.

Handling of AFR
The growing adoption of Alternative Fuels and Raw Materials (AFR) has introduced new challenges and opportunities for material handling systems in cement plants. AFR materials such as refuse-derived fuel (RDF), biomass and industrial waste often have irregular particle sizes, variable moisture content and lower bulk density compared to conventional fuels. As a result, specialised storage, dosing and feeding systems are required to ensure consistent kiln combustion. According to the Cement Sector Decarbonisation Roadmap published by NITI Aayog in 2026, increasing the use of AFR could enable India’s cement sector to achieve thermal substitution rates of around 20 per cent in the coming decades. To support this transition, plants are investing in automated receiving stations, shredding units, drying systems and precision dosing equipment to stabilise AFR supply and combustion performance.

Energy efficiency and dust control
Material handling systems also play a crucial role in improving plant energy efficiency and environmental performance. Modern conveyor systems equipped with variable speed drives and energy-efficient motors can significantly reduce electricity consumption. Permanent magnet motors used in conveyor drives can deliver 8 per cent to 12 per cent energy savings compared to conventional induction motors, improving overall plant energy efficiency according to the IEA Industrial Energy Efficiency Study, 2023. Dust control is another major concern in cement plants, particularly during material transfer and storage operations. Enclosed conveyors, dust extraction systems and advanced bag filters are widely used to minimise particulate emissions and improve workplace safety.

Future trends in material handling
The future of material handling in cement plants will be shaped by automation, digitalisation and sustainability considerations. Emerging technologies such as AI-driven logistics optimisation, autonomous mobile equipment and digital twins are expected to further improve plant efficiency and operational visibility. Digital twin models allow engineers to simulate material flow patterns, optimise stockyard operations and predict equipment performance under different operating conditions. According to the International Energy Agency Digitalisation and Energy Report, 2024, the adoption of advanced digital technologies could improve industrial energy efficiency by up to 20 per cent in heavy industries such as cement manufacturing. As cement plants expand capacity and adopt low-carbon technologies, intelligent material handling systems will play a critical role in maintaining productivity and reducing environmental impact.

Conclusion
Material handling systems have evolved from basic transport infrastructure into strategic operational systems that directly influence plant efficiency, reliability and sustainability. From quarry transport and automated stockyards to digital dispatch platforms and advanced conveying technologies, modern material handling solutions enable cement plants to manage large production volumes while maintaining process stability.
As India’s cement industry continues to expand to meet infrastructure and urban development demands, investments in advanced material handling technologies will become increasingly important. By integrating automation, digital monitoring and energy-efficient systems, cement manufacturers can improve operational performance while supporting the industry’s long-term sustainability and decarbonisation goals.

Kanika Mathur

Concrete

Modernise to Optimise

Published

3 weeks ago

March 18, 2026

admin

Cement plant modernisation is reshaping the industry through upgrades in
kilns, energy systems, digitalisation, AFR integration and advanced material
handling. We explore these technologies that improve efficiency, reduce
emissions, strengthen competitiveness, while preparing the industry for India’s
next phase of infrastructure growth.

India’s cement industry, the world’s second-largest, is undergoing a rapid transformation driven by infrastructure demand, decarbonisation targets and technological advancement. The sector’s installed capacity stood at approximately 668 million tonnes per annum (mtpa) in FY2025 and is projected to reach 915–925 mtap by 2030, supported by large-scale capacity expansions and infrastructure investment cycles, suggests CRISIL Intelligence Industry Report, 2025. At the same time, cement production remains highly energy intensive and contributes about 6 per cent to 7 per cent of India’s total greenhouse gas emissions, making efficiency improvements and modernisation critical for long-term sustainability as stated in CareEdge ESG Research, 2025. As a result, cement manufacturers are investing in advanced kiln technologies, digital monitoring systems, waste heat recovery, alternative fuels, and modern material handling infrastructure to enhance productivity while aligning with global decarbonisation pathways.

Need for modernisation
The need for plant modernisation is closely linked to the sector’s rapid capacity expansion and rising operational complexity. India’s installed cement capacity has grown significantly in the last decade and is expected to exceed 900 mtpa by 2030, driven by demand from housing, infrastructure and urban development projects, as per the CRISIL Intelligence Industry Report, 2025. However, increasing scale also places pressure on energy efficiency, logistics, and production stability. The report also suggests that the cement plants must upgrade equipment and processes to operate at higher utilisation rates, which are projected to reach 75 per cent to 77 per cent by the end of the decade, compared to around 72 per cent to 74 per cent in FY2026.
Environmental imperatives are another major driver of modernisation. Cement manufacturing is responsible for a significant share of industrial emissions because clinker production requires high-temperature processes that depend heavily on fossil fuels. According to CareEdge ESG research, the cement sector contributes 6–7 per cent of India’s total greenhouse gas emissions, with approximately 97 per cent of emissions arising from direct fuel combustion and process emissions in kilns. Consequently, plant modernisation initiatives now focus not only on productivity improvements but also on reducing emissions intensity, energy consumption, and reliance on conventional fuels.
“One of the most impactful upgrades implemented at Shree Cement in the last five years has been the adoption of advanced data management platforms that provide real-time visibility across major process areas. This digital advancement has strengthened plant automation by enabling faster and more accurate responses to process variations while improving the reliability of control loops. Real-time dashboards, integrated analytics and automated alerts now support quicker, data-driven decision-making, helping optimise kiln and mill performance, improve energy control and detect deviations early. By consolidating data from multiple systems into a unified digital environment, the company has enhanced operational consistency, reduced downtime and improved both productivity and compliance. This shift towards intelligent automation and real-time data management has become a key driver of operational excellence and future-ready plant management,” says Satish Maheshwari, Chief Manufacturing Officer, Shree Cement.

Kiln and pyroprocessing upgradation
The kiln remains the technological heart of cement manufacturing, and modernisation efforts often begin with upgrades to pyroprocessing systems. Many older plants in India operate with four- or five-stage preheaters, while modern plants increasingly adopt six-stage preheater and pre-calciner systems that significantly improve heat efficiency and clinker output. These systems enhance heat transfer, reduce fuel consumption, and stabilise kiln operations under high throughput conditions.
Professor Procyon Mukherjee suggests, “Cement manufacturing is, at its core, a thermal process. The rotary kiln and calciner together account for energy consumption and emissions. The theoretical thermal requirement for clinker production is around 1700–1800 MJ per tonne, yet real-world plants often operate far above this benchmark due to inefficiencies in combustion, heat recovery and material flow. Modernisation, therefore, must begin with the
kiln system, and not peripheral automation or
isolated upgrades. The shift from wet to dry process kilns, combined with multi-stage preheaters and precalciners, has already delivered step-change improvements, making dry kilns nearly 50 per cent more energy efficient.”
Recent investment programmes across the industry have included kiln cooler upgrades, advanced burners, and improved refractory materials designed to increase operational reliability and reduce specific heat consumption. Such upgrades are essential because cement production remains highly energy intensive, and continuous efficiency improvements are required to meet global decarbonisation targets. According to the International Energy Agency (IEA) Cement Tracking Report, 2023, the cement sector must achieve annual emissions intensity reductions of around 4 per cent through 2030 to align with global net-zero scenarios.

Energy efficiency and WHRS
Energy efficiency remains one of the most important areas of modernisation in cement manufacturing, given the sector’s heavy reliance on thermal and electrical energy. Modern plants deploy advanced process controls, efficient grinding systems, and improved combustion technologies to reduce specific energy consumption. The adoption of energy-efficient technologies is particularly important in India, where energy costs account for a large share of production expenses. As demand grows and plants expand capacity, improving energy performance becomes essential to maintain competitiveness.
Waste Heat Recovery Systems (WHRS) have emerged as a key solution for improving plant energy efficiency. During cement production, large volumes of high-temperature gases are released from kilns and coolers. WHRS technology captures this waste heat and converts it into electricity, thereby reducing reliance on external power sources. According to energy benchmarking studies for the Indian cement industry, installed waste heat recovery capacity in the sector has reached approximately 840 MW, with an additional potential of around 500 MW states the Green Business Centre, Energy Benchmarking Report, 2023. Several leading producers have already implemented large WHRS installations; for example, UltraTech Cement has deployed systems with around 121 MW of waste heat recovery capacity, reducing carbon emissions by nearly 0.5 million tonnes annually according to the Energy Alternatives India Case Study, 2024.

Integration of AFR
The integration of Alternative Fuels and Raw Materials (AFR) is another critical dimension of cement plant modernisation. AFR refers to the use of industrial waste, biomass, refuse-derived fuel (RDF), and other non-fossil materials as substitutes for conventional fuels such as coal and petcoke. Increasing the use of AFR helps reduce fossil fuel consumption while simultaneously addressing waste management challenges. According to the NITI Aayog Decarbonisation Roadmap, 2026, scaling the use of RDF and other alternative fuels could enable the sector to achieve thermal substitution rates of around 20 per cent in the coming decades.
However, integrating AFR requires significant plant modifications and operational adjustments. Waste-derived fuels often have inconsistent calorific values, higher moisture content, and heterogeneous physical properties compared to traditional fuels. As a result, modern plants invest in advanced fuel preparation systems, dedicated feeding equipment, and automated dosing technologies to ensure stable kiln operation. These upgrades allow plants to maintain consistent clinker quality while increasing the share of alternative fuels in their energy mix.

Digitalisation and smart plant operations
Digitalisation is rapidly transforming cement plant operations by enabling data-driven decision-making and predictive maintenance. Industry 4.0 technologies such as IoT sensors, artificial intelligence (AI), and advanced analytics are now used to monitor equipment performance, optimise process parameters, and anticipate maintenance requirements. These digital tools enable plant operators to detect early signs of equipment failure, minimise unplanned downtime, and improve operational efficiency. Predictive maintenance systems, for example, analyse vibration, temperature, and acoustic signals from rotating equipment to identify potential faults
before they escalate into major breakdowns. Digital twins and integrated control systems further allow operators to simulate plant performance under different scenarios and optimise production strategies. Such technologies are becoming increasingly important as cement plants operate at larger scales and higher levels of process complexity.
Maheshwari also adds, “Plant modernisation is also increasingly central to the global competitiveness of Indian cement manufacturers. As cost pressures rise across energy, logistics and regulatory compliance, modern plants offer the structural efficiency required to operate reliably and competitively over the long term. Technologies such as AI-driven Advanced Process Control (APC) integrated with real-time data systems are emerging as essential investments for the future. These platforms use predictive algorithms, machine learning and live process inputs to optimise kiln, mill and utility operations with greater precision than traditional control systems. By continuously analysing variations in feed chemistry, temperature profiles, energy demand and equipment behaviour, APC enables stable operations, lower specific energy consumption, reduced emissions and improved product consistency. As regulatory expectations tighten and plants pursue higher efficiency with lower carbon intensity, AI-enabled APC will play a crucial role in strengthening automation, enhancing decision-making and ensuring long-term operational resilience.”

Modern material handling and logistics
Material handling systems play a critical role in ensuring smooth plant operations and efficient logistics. Modern cement plants rely on advanced conveying systems, automated stockyards, and digital dispatch platforms to manage the movement of raw materials, clinker, and finished cement. Long-distance belt conveyors and pipe conveyors are increasingly replacing truck-based transport between quarries and plants, reducing fuel consumption, dust emissions, and operational costs. Automated stacker-reclaimers ensure consistent blending of raw materials,
which improves kiln stability and clinker quality. Meanwhile, advanced packing and dispatch systems equipped with high-speed rotary packers and robotic palletisers enhance throughput and reduce manual labour. These technologies allow cement plants to optimise logistics efficiency while supporting higher production capacities.

Emission control and environmental compliance
Environmental compliance has become a central focus of cement plant modernisation as regulators and investors place greater emphasis on sustainability performance. Modern plants deploy advanced emission control technologies such as high-efficiency bag filters, electrostatic precipitators, and selective non-catalytic reduction systems to reduce particulate matter and nitrogen oxide emissions.
Sine Bogh Skaarup, Vice President, Head of Green Innovation and R&D, Fuller Technologies says, “One of our key focus areas is decarbonisation. We help cement producers reduce CO2 and overall carbon emissions. We offer alternative fuel solutions and calcined clay technologies to enable the production of LC3 cement, which play a significant role in decarbonising the cement industry. By combining alternative fuels and calcined clay solutions, CO2 emissions can be reduced by up to 50 per cent, making this a highly impactful approach for sustainable cement production.”
Continuous emission monitoring systems are increasingly used to track environmental performance in real time and ensure compliance with regulatory standards. In addition to air pollution control, cement companies are also investing in water recycling systems, renewable energy integration, and carbon reduction initiatives. These measures are essential for aligning the sector with national climate goals and improving the environmental footprint of
cement manufacturing.

Economic benefits and future outlook
Beyond environmental and operational advantages, cement plant modernisation also delivers significant economic benefits. Energy efficiency improvements, digital process optimisation, and advanced material handling systems reduce operating costs and improve asset utilisation. Waste heat recovery and alternative fuels help lower fuel expenditure and reduce exposure to volatile fossil fuel markets. As the industry expands capacity to meet growing demand, modernised plants are better positioned to achieve higher productivity and maintain profitability. The long-term outlook for the sector remains positive, with India expected to continue large-scale infrastructure investments in roads, housing, railways, and urban development.
Milan R Trivedi, Vice President – Projects, Prod & QC, MR, Shree Digvijay Cement, says, “The main focus in case of modernisation projects drives through the investment decision, which is mainly based on IRR and impact on overall efficiency improvement, cost optimisation and improvement in reliability. However, there are certain modernisation, which has high impact on environmental impact, statutory requirements, etc. has higher priority irrespective of ROI or payback period.”
“The energy efficiency and reliability investment projects generally provide fast return on investment whereas strategic, digitalisation and environmental investment projects provide long term and compounded benefits. Typical modernisation investment projects are decided with IRR of about > 20 per cent, payback period of typically 2-3 years for fast-track projects,” he adds.
In this context, modernisation will remain a key strategic priority for cement manufacturers seeking to maintain competitiveness in an increasingly sustainability-focused market.

Conclusion
The modernisation of cement plants is no longer a purely technical upgrade but a strategic transformation that reshapes how the industry operates. As India’s cement sector expands capacity toward the next growth cycle, improvements in energy efficiency, digitalisation, alternative fuels and advanced logistics will determine the competitiveness of individual plants. Modern technologies allow producers to operate at higher productivity levels while simultaneously reducing energy consumption and emissions intensity.
Looking ahead, the pace of technological adoption will play a decisive role in shaping the future of
the cement industry. Companies that successfully integrate modern equipment, digital systems, and sustainable production practices will be better positioned to meet rising infrastructure demand while aligning with global climate commitments. In this evolving landscape, plant modernisation stands as the cornerstone of both operational excellence and environmental responsibility.