Rakesh Bhargava
Chief Climate & Sustainability Officer
Shree Cement Ltd.
Sustainability in Cement Industry
Indian Cement Industry - A Snap Shot
Introduction
• World’s largest producer after China
• Installed Capacity: Mar’13~ 336...
World Cement Production 2012
3.6 Billion Tonnes
Source: IMF World Economic Outlook 2013, April 2013
India 6.6%
of World
pr...
Growth of Indian Cement Industry
*Estimated
Source: CMA
Production Capacity Share : Major Groups
Suppliers Manufacturers & Distributors Customers
Raw Materials Logistics
Manufact
uring
Storage
Mktg &
Sales
Usage Disposa...
• Generating Green PowerG
• Reducing reliance on Fossil FuelR
• Enhancing share of Alternate Raw MaterialE
• Enabling Wate...
8 Contd.
Green Power (Waste Heat Recovery Power Plant)
Sustainability Initiative
Clinker process generates waste heat.
U...
Alternative Fuels
Sustainability Initiative
 Cement production an energy intensive process.
 Reliant on coal from Coal I...
Cement Industry: Best option for Co-processing wastes
Sustainability Initiative
About 7.66 million tonnes per annum hazard...
Alternative Fuels: Energy from any Waste
Sustainability Initiative
 Kilns are the best sustainable solution for disposal ...
Alternative Raw Material
Sustainability Initiative
 Indian Cement Industry a major consumer of fly ash. Out of 160 Mn T f...
Alternative Raw Material : Resource Conservation
Source: CMA
Sustainability Benefits
Alternative Raw Material : Synthetic Gypsum
Sustainability Initiative
 Industry dependent on Natural Gypsum
 Flue Gas De...
Sustainability Initiative
Water Conservation- Air Cooled Condensers
 Innovation: Replacing Water Cooled Condenser
(WCC) o...
Sustainability Initiative
Energy Efficiency- Using Best Available Technology
Mines
Cross belt analyzer, Multi stage crushe...
Sustainability Initiative
Energy Efficiency- Global Comparison
Country
Specific Electrical Energy
Consumption
kWh / t of C...
Energy
Intensive
Sectors
PAT- A market-based mechanism to enhance cost effectiveness of improvements in
energy efficiency ...
Employee
Engagement
Text
Community
Development
Text
Construction
Skills Training
Institute
Mother & Child
Health
Community...
Transparency in Reporting- CSR Reports
Sustainability Initiative
GRI A+ rated
reports by leading
players
► G4 is the fourth generation of
Sustainability Reporting Guidelines
developed by GRI
► It was developed through a global
...
Manufacturing organizations often have a symbiotic
relationship with their suppliers.
Large responsible organizations can ...
Membership of Global Sustainability Initiatives- CSI
60% of production
Sustainability Initiative
Cement Sustainability Ini...
Environment & Biodiversity Protection
 Installed state of art ESP / bag house for dust control
 Environmentally sound te...
Occupational health & safety
 Implementation of best practices through
sharing and learning.
 Companies are implementing...
Clean Development Mechanism (CDM) Projects
Sustainability Initiative
So far 21 CDM project has been registered in Indian C...
Targets of Sustainability for 2050
AFR Usage
Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry
Targets of Sustainability for 2050
Electrical Energy Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry
Targets of Sustainability for 2050
Thermal Energy
Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry
Targets of Sustainability for 2050
Clinker Factor
Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry
Low Demand Case
Parameter 2010 2020 2030 2040 2050
Clinker Production 161 290 382 429 449
Cement-to- clinker ratio 0.74 0....
High Demand Case
Parameter 2020 2030 2040 2050
Clinker Production 342 544 713 794
Cement-to- clinker ratio 0.70 0.64 0.60 ...
The cement industry needs an
environment that incentivizes
companies to adopt mature
sustainability strategies, and
facili...
 In coming years, in order to survive & grow, rapid modernization and
adoption of energy efficient & environmental friend...
You Green
Company Green
Globe Green
Thanks !
www.shreecement.in
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Sustainability in Cement Industry | Rakesh Bhargava, Chief Climate & Sustainability Officer, Shree Cement Ltd.

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Sustainability in Cement Industry | Rakesh Bhargava, Chief Climate & Sustainability Officer, Shree Cement Ltd.

  1. 1. Rakesh Bhargava Chief Climate & Sustainability Officer Shree Cement Ltd. Sustainability in Cement Industry
  2. 2. Indian Cement Industry - A Snap Shot Introduction • World’s largest producer after China • Installed Capacity: Mar’13~ 336 Mn Ton • Capacity grew at a CAGR of 11.5% from 179 Mn Ton FY07 to 336 Mn Ton in FY13 • Employs more than 1.2 lakh people • Produces more than 3000 MW of Captive Power • Low Per Capita Consumption 190 kg vs 514 kg for World.
  3. 3. World Cement Production 2012 3.6 Billion Tonnes Source: IMF World Economic Outlook 2013, April 2013 India 6.6% of World production
  4. 4. Growth of Indian Cement Industry *Estimated Source: CMA
  5. 5. Production Capacity Share : Major Groups
  6. 6. Suppliers Manufacturers & Distributors Customers Raw Materials Logistics Manufact uring Storage Mktg & Sales Usage Disposal Energy Consumption Water Consumption Material & Resource Management GHG & other emissions Waste management & Reuse Collaborative Agenda Across the Value Chain Self driven agenda within Cement Sector: To Promote Sustainable and Responsible Manufacturing Efficiency Matrices across the value chain Continually working towards sustainable cost advantage Sustainability in Cement Industry
  7. 7. • Generating Green PowerG • Reducing reliance on Fossil FuelR • Enhancing share of Alternate Raw MaterialE • Enabling Water ConservationE • New Benchmarks in Energy EfficiencyN • Contributing to Social DevelopmentC • Effective Transparent ReportingE • Membership of Global Sustainability InitiativesM • Environment/Biodiversity Protection, R&D InitiativesE • Negating Impact of Global EmissionsN • Targets of Sustainability for 2050T Presentation Sequence Sustainability in Cement Industry
  8. 8. 8 Contd. Green Power (Waste Heat Recovery Power Plant) Sustainability Initiative Clinker process generates waste heat. Using waste heat Waste Heat Recovery power plants (WHRP) can • Generate green power without fuel • Conserve fossil fuels and water • Reduces CO2 emissions WHRP are highly capital intensive: Rs 9-10 Cr/MW Indian Cement industry committed to low carbon economy • Installed 140 MW WHRPs • Achieved CO2 reduction: 385000 Ton • Potential to generate 1000 MW power Shree has installed largest WHR based Power plant, in World Cement Industry after China
  9. 9. Alternative Fuels Sustainability Initiative  Cement production an energy intensive process.  Reliant on coal from Coal India, no new coal linkage post 2007.  Alternate Source : Use of AFR, Petcoke, Coal Import.  R&D : On compatibility of AFR material.  Successfully developed Petcoke- A refinery waste as a strong alternative of Coal.  Results: Conservation of fossil fuels and overcome disposal problem of petcoke. Shree was first to pioneer the use the Pet-coke in Kilns
  10. 10. Cement Industry: Best option for Co-processing wastes Sustainability Initiative About 7.66 million tonnes per annum hazardous waste generated from about 40,722 industries of which  Landfillable – 3.39 Mn TA  Recyclable – 3.61 Mn TA  Incinerable – 0.65 Mn TA Hazardous waste are Paint Sludge, Refinery waste , ETP sludge, Tar, Refused derived fuel etc Source: CPCB
  11. 11. Alternative Fuels: Energy from any Waste Sustainability Initiative  Kilns are the best sustainable solution for disposal of hazardous waste.  Use of Hazardous waste for co-processing can potentially save 0.43 Mn tonne of Coal yearly.  Municipal Waste alone can generate 9 Mn Tonne of Residue Derived Fuel (RDF) to replace 4.5 Mn Tonne of coal for cement plant operation. Pioneers in AFR utilization: Holcim & Utratech
  12. 12. Alternative Raw Material Sustainability Initiative  Indian Cement Industry a major consumer of fly ash. Out of 160 Mn T fly ash generated annually, only 92 Mn T (57.5%) is recycled, and cement industry consumes nearly 50 Mn. T (31% of the generated) fly ash annually.  Consumes the entire quantity of granulated BF Slag generated – More than 10 MnT annually.  Increased use of Blended Cements (PPC & PSC) over the years. • From 18% of Total Production in 1989 to 70% in 2011-12  Consumes 90% fluro and phospho- gypsum waste from fertilizer industry exceeding 3.5 Mt.  Uses waste materials as fuel including those from other industry – eg. Petcoke, rice husk, bagasse, cut tyres & MSW
  13. 13. Alternative Raw Material : Resource Conservation Source: CMA Sustainability Benefits
  14. 14. Alternative Raw Material : Synthetic Gypsum Sustainability Initiative  Industry dependent on Natural Gypsum  Flue Gas Desulphurization plants in CPP captures SOx Emissions and produces Synthetic Gypsum.  Conserves Natural Gypsum  Provides consistency in quality & process
  15. 15. Sustainability Initiative Water Conservation- Air Cooled Condensers  Innovation: Replacing Water Cooled Condenser (WCC) of Captive Power Plants with Air Cooled Condensers (ACC).  Achieved: Similar performance efficiency as WCC’s.  Water Conservation: Reduced water consumption to 1/10th of WCC plants. Shree has installed largest Air Cooled Condensers in India
  16. 16. Sustainability Initiative Energy Efficiency- Using Best Available Technology Mines Cross belt analyzer, Multi stage crushers and wobblers, Mine planning software, Radio controlled mines machinery monitoring system, Operator Independent Truck Dispatch System (OITDS) Milling Vertical Roller Mills, Mechanical recirculation system, Adaptive predictive control for mill operation, Gravimetric feeding system Preheater Six stage preheater, Low NOx calciner with adequate residence time, Cyclones with high efficiency and low pressure drop Kiln Multi-channel burner, High strength insulation bricks, high peripheral speed (up to 6 – 7 RPM), VFD control for shell cooling fans Cooler High efficiency aerofoil bladed cooler fans with VFD, Latest generation coolers with a total loss of less than 100 kcal/kg clinker Dust Control Equipment Pulse-jet bag houses with membrane bags for all process applications Control System Adaptive predictive control system, Online NOx control, Online flame control, Online free-lime (CaO) control, Flow measurement with advanced techniques
  17. 17. Sustainability Initiative Energy Efficiency- Global Comparison Country Specific Electrical Energy Consumption kWh / t of Cement Specific thermal energy Consumption Kcal/Kg clinker India 82 725 Spain 92 836 Germany 100 836 Japan 100 836 Brazil 110 884 Italy 112 908 China 118 956 Mexico 118 1003 Canada 140 1075 USA 141 1099 World Average 100-110 850-860 Comparison of Energy Consumption with selected countries Source: Indian Cement Review ,Sep ‘13
  18. 18. Energy Intensive Sectors PAT- A market-based mechanism to enhance cost effectiveness of improvements in energy efficiency among Designated Consumers through certification of tradable energy savings Energy Efficiency- Setting New Benchmarks Cement-Baseline Energy Consumption : 15 Million tonnes of oil equivalent (mtoe) No. of Designated Consumers as of date : 85 Reduction target for DC's : 3.99-6.88% Targeted reduction for cement sector : 0.815 mtoe (Tentative) Sustainability Initiative
  19. 19. Employee Engagement Text Community Development Text Construction Skills Training Institute Mother & Child Health Community Health Centre Employee Volunteering Working on Wellness Education & Vocational Training Employee Bonding Training & Awareness Social Development Total community prosperity Sustainability Initiative
  20. 20. Transparency in Reporting- CSR Reports Sustainability Initiative GRI A+ rated reports by leading players
  21. 21. ► G4 is the fourth generation of Sustainability Reporting Guidelines developed by GRI ► It was developed through a global multi-stakeholder process involving representatives from all sectors. ► It consists of two parts: Part A: Reporting Principles and Standard Disclosures Part B: Implementation Manual ► GRI requires that all reports published after 31 December 2015 should be prepared in accordance with the G4 Guidelines The Supply Chain Focus The G4 Guidelines places an emphasis on disclosure related to the supply chain of the organization, including: ►Description of the supply chain ►Significant changes in the supply chain since last reporting. ►Actual and potential negative impacts on environmental, labor aspects, human rights, society in the supply chain. Many aspects of the supply chain feature in Standard Disclosures guidance. GRI G4 Guidelines and Supply Chain Focus Sustainability Initiative
  22. 22. Manufacturing organizations often have a symbiotic relationship with their suppliers. Large responsible organizations can potentially play an active role in ensuring the sustainability of their supply chain. Engaging with suppliers on issues such as energy, environment, and social aspects, pays off in the long term, by ensuring efficiency and quality are percolated down the supply chain. Supply chain sustainability criteria which may be evaluated ►Resource efficiency of suppliers ►Social Impact of supply chain ►Environmental impact of supply chain Identification of key supply chain sustainability criteria to evaluate Stakeholder consultation with supply chain representatives Development of detailed data collection and audit plan Data collection and gap analysis Recommendations for improvement of supply chain sustainability performance and development of supply chain sustainability strategy Identification of financing options and/or incentives for implementation of strategy Development of monitoring framework Implementing a supply chain sustainability strategy Adopting Sustainability Strategy for Supply Chain Sustainability Initiative
  23. 23. Membership of Global Sustainability Initiatives- CSI 60% of production Sustainability Initiative Cement Sustainability Initiative (CSI) Members in India
  24. 24. Environment & Biodiversity Protection  Installed state of art ESP / bag house for dust control  Environmentally sound technologies for minimizing NOx ,SO2 and CO2 emissions  Adopted ISO 14001 Environmental Management System  Significant progress achieved on restoration plans for quarries  Installation of Continuous Emission Monitoring System Sustainability Initiative
  25. 25. Occupational health & safety  Implementation of best practices through sharing and learning.  Companies are implementing OHSAS 18001  CSI member companies are implementing CSI Driving/Contractor Safety Guidelines  Monitoring of worker health and safety conditions, including noise levels.  Impart regular trainings  Performs Safety Audits  Improved methods to measure and ensure worker safety, including the handling of wastes.  Adoption of 5 S concept. Sustainability Initiative
  26. 26. Clean Development Mechanism (CDM) Projects Sustainability Initiative So far 21 CDM project has been registered in Indian Cement Industry, resulting in annual CO2 emissions reduction of 21,02,656 tonnes • Total number of registered CDM projects in cement industry around the world: 171 • For clinker substitution projects (fly ash / slag blending), India leads with highest number of registered CDM projects. • India lags behind China in CDM registration of WHR projects for the following reasons: • High cost of grid power (and escalating grid import prices) make it difficult to prove additionality in India, despite high capital investment required for WHR • Grid power is relatively cheaper in China.
  27. 27. Targets of Sustainability for 2050 AFR Usage Source: WBSCD / CSI Low-Carbon Technology Roadmap for Cement Industry
  28. 28. Targets of Sustainability for 2050 Electrical Energy Source: WBSCD / CSI Low-Carbon Technology Roadmap for Cement Industry
  29. 29. Targets of Sustainability for 2050 Thermal Energy Source: WBSCD / CSI Low-Carbon Technology Roadmap for Cement Industry
  30. 30. Targets of Sustainability for 2050 Clinker Factor Source: WBSCD / CSI Low-Carbon Technology Roadmap for Cement Industry
  31. 31. Low Demand Case Parameter 2010 2020 2030 2040 2050 Clinker Production 161 290 382 429 449 Cement-to- clinker ratio 0.74 0.70 0.64 0.60 0.58 Electric intensity (KWh/kg cement) 80 76 73 72 71 Thermal intensity (Kcal/ Kg clinker) 725 709 694 685 680 Alternative Fuels use (as a share of thermal energy consumption (%) 0.6 5 19 24 25 % carbon capture 0 1 9 17 25 Targets of Sustainability for 2050
  32. 32. High Demand Case Parameter 2020 2030 2040 2050 Clinker Production 342 544 713 794 Cement-to- clinker ratio 0.70 0.64 0.60 0.58 Electric intensity (KWh/kg cement) 75 72 71 70 Thermal intensity (Kcal/ Kg clinker) 703 690 682 678 Alternative Fuels use (as a share of thermal energy consumption (%) 5 19 24 25 % carbon capture 2 10 20 28 *Source: CSI Low – Carbon Technology for the India Cement Industry Targets of Sustainability for 2050
  33. 33. The cement industry needs an environment that incentivizes companies to adopt mature sustainability strategies, and facilitate transition of cement companies towards becoming architects of sustainable business solutions. • Fiscal incentives for investment in low- carbon technologies and products • Amending policies for trans-boundary movement of industrial waste • Enforcement of RPO for promoting renewable energy • Government support for R&D initiatives • Revision of product standards to allow for additional utilization of alternative raw materials Sustainable Development: Enabling Levers Targets of Sustainability for 2050 Risk Mitigator Compliance Operational Differentiator Strategic Differentiator Architect Value AddValue Protection Level of Response
  34. 34.  In coming years, in order to survive & grow, rapid modernization and adoption of energy efficient & environmental friendly technologies will be prime need for viability of the cement industry.  Cement industry can play a vital role in the sustainable development of the country by consuming most of the country’s industrial waste.  Cement companies need to have an increased focus on reporting of supply chain sustainability and adopt GRI G4 guidelines.  A supportive policy environment is required to incentivize cement industry to adopt mature sustainability strategies.  Indian cement industry is one of the most energy-efficient in the world.  Indian cement industry needs to catch up with global cement industry for utilization of alternative fuels – policy support may be required for this.  To implement Low Carbon Technology Roadmap to reduce the direct emission from 0.63 t CO2/t of Cement to 0.35 CO2/ t of cement in 2050. Conclusion
  35. 35. You Green Company Green Globe Green Thanks ! www.shreecement.in
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