Global HSE Conference | Sept 26 - 27 | New Delhi, India

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

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. World Cement Production 2012
3.6 Billion Tonnes
Source: IMF World Economic Outlook 2013, April 2013
India 6.6%
of World
production

4. Growth of Indian Cement Industry
*Estimated
Source: CMA

5. Production Capacity Share : Major Groups

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. • 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 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. 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. 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. 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. 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. Alternative Raw Material : Resource Conservation
Source: CMA
Sustainability Benefits

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. 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. 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. 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. 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. 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. Transparency in Reporting- CSR Reports
Sustainability Initiative
GRI A+ rated
reports by leading
players

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. 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. Membership of Global Sustainability Initiatives- CSI
60% of production
Sustainability Initiative
Cement Sustainability Initiative (CSI) Members in India

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. 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. 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. Targets of Sustainability for 2050
AFR Usage
Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry

28. Targets of Sustainability for 2050
Electrical Energy Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry

29. Targets of Sustainability for 2050
Thermal Energy
Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry

30. Targets of Sustainability for 2050
Clinker Factor
Source: WBSCD / CSI Low-Carbon
Technology Roadmap for Cement
Industry

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. 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. 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.  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. You Green
Company Green
Globe Green
Thanks !
www.shreecement.in