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8/12/2019 Petcoke for Cement Industry
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Petcoke for Cement Industry
Raman Srinivasan
Head Technical Services
Essar Oil Limited
Benefi ts & Modif icat ions Required
Apr il 17, 2013
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2
Essar Group A Global Diversified Conglomerate
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70,000people
Over 25countries worldwide
$ 20Billion revenue
Presence in
Oil & Gas
Power
Steel
Projects
Ports, Shipping & Logistics
Minerals
Telecom
Services
Scale & Diversity
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Essar at a Glance
* Listed on London Stock Exchange
Capacities stated represent gross capacity
Projects Minerals
Among Indias
top 3 EPC(EngineeringProcurement &Construction)contractors
Has built all of
Essarsindustrial assets
Rapidlyintensifyingthird-partyfocus; executinga range ofprojects forexternal clients
Telecom Services
Essar Group
Owns 33percent stake inVodafoneEssar; 135 mnsubscribers
Telecomoperations in
Kenya
Chain of over1,300 telecomretail outlets inIndia, brandedTheMobileStore
Owns 1.6 bntonnes of ironore reserves;mines in India &the USA
Owns 450 mntonne of thermal
& coking coalReserves;mines in India,Indonesia,Mozambique &the USA
Managingbusinessprocesses forFortune 500companies
Present in 10countries
across47 deliverylocations
Ports &Shipping
Steel
A globallyintegrated steelproducer
14 mn tonnescapacity, withplants in India,Indonesia,
Canada & USA
Global networkof steel retailoutlets andprocessingcentres; ownsServosteel a tollprocessor in theUK
Among Indias
largest portoperators:76 MTPA of portcapacity;expanding toover 150 mntonnes across 5
ports in India
Fleet of 27vessels(including crudecarriers);expanding to 39
13 oil rigs
Essar Energy Plc*
Second largestprivate sectorrefiner in India
680,000 bpdcapacity;refineries inIndia, UK &
Kenya
Global portfolioof oil & gasblocks; 2.1 bnbarrels ofreserves &resources
1,380 retail
outlets in India
PowerOil & Gas
Five plants inIndia & Canadagenerating1,600 MW
13 new plantsto take capacityto 11,470 MW
by 2014
450 mn tonnesof coal reserves
Presence intransmission &distribution
Essar Energy Plc*
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Fully integrated oil & gas company of international scale with strong
presence across the hydrocarbon value chain from E&P to oil retail
Global portfolio of onshore and offshore oil & gas blocks, with about
45,000 sq km available for exploration across Asia, Africa & Australia
Over 300,000 bpsd (barrels per stream day) of crude refining capacity
that is being expanded to 405,000 bpsd at Vadinar, Gujarat
Captive power plant
Dispatch facilities by rail, road, sea and pipeline
Associated tankages, pipelines, water intake facilities
Fifty percent controlling stake in Kenya Petroleum Refineries Ltd, which
operates a refinery in Mombasa, Kenya, with a capacity of 80,000 bpsd
Recent takeover of Shells300,000 bpsd Stanlow refinery in UK
Over 1,380 Essar branded oil retail outlets in various parts of India, with
250 outlets under construction.
Tie-ups with other oil marketing companies to access their terminals and
facilities for placing and marketing our products
Essar Oil & GasOverview
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Petcoke for Cement Industry
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Flow of Presentation
Petcoke
Advantages Challenges
1
Petcoke Use in Global Cement Industry2
Technological Challenges & Solutions3
Financial Benefits
Opex Savings Bottom line improvement
4
Petcoke in India5
Essar Facilities6
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Petcoke
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Petcoke Advantage
Government administered prices for coal and natural gas are lower than market prices
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Challenges
High carbon higher calorific value High fixed carbon higher combustion time Lower volatile matter difficult to ignite Lower ash less waste disposal High sulphur increased corrosion &
pollution
Petcoke
Very low carbon very low calorific value Very low fixed carbon lower combustion
time High volatile matter easier to ignite Very high ash heat loss, disposal problem Low sulphur lower corrosion & pollution
Dom. coal
Strengths Weaknesses
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Petcoke use in Global Cement Industry
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Petcoke share as fuel
World Europe
Petcoke is the preferred fuel of choice for the Global cement industry after coal and lignite Petcoke is by far the preferred fuel of choice for European cement industry Cement industry is the largest consumer of petcoke in India (3.7 million tons per annum) Technology to use petcoke in cement plants is mature and easily available
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Annual World Petcoke Production
Global production in 2011 was about 140 million tons, out of which about 75% is fuel grade. US production was 56 million tons, while China produced about 24 million tons.
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Share of Petcoke in Production Capacity
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Challenges & Solutions
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Challenges & Solutions
Issue Description Modification RequiredHGI Petcoke is harder than coal
and is more difficult to grind.Finer grinding is required toincrease surface area, asvolatile matter is lower.
Depends on the existing coal grinding mill.
If the coal mill can grind petcoke with minormodifications, then the cost will be lower.Otherwise a new Vertical Roller mill will berequired.
Volatile Matter Petcoke has lower volatilematter and hence moredifficult to burn.
Finer grinding improves burning. Increasing the flame momentum helps to improve
burning. This is achieved by installing a Higher
capacity blower in place of the primary air fan.
Fixed Carbon Petcoke has higher fixedcarbon and needs moreresidence time to burncompletely.
Introduce petcoke feed in the precalciner tofacilitate complete combustion
Increasing the height of existing precalciner toallow higher residence time
Ash As petcoke has lower ash,more raw feed will berequired per unit of clinker.
Raw mix feed rate has to be changed
Oxygen requirement More oxygen is required forcomplete combustion Provision of more secondary air
NOx Higher flame temperatureincreases NOx emissions NOx control technologies if NOx levels are higherthan regulated levels
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Challenges & Solutions
Issue Description Modification RequiredClinker hardness Clinker becomes harder
caused by longer burningzone.
Finish mills need more power to grind
Refractory damage Petcoke burning causes morerefractory damage Selective upgrading of refractory bricks andhigher maintenance
SulphurSulphur alkali ratio Due to higher sulphur, the
sulphur alkali ratio in the feedis disturbed Modification of the raw mix so that combinability
temperature is reduced.Sulphur cycle Sulphur volatilizes in the
burning zone and condensesin the calcining zone
Bypass line might be required
Coating in riser duct Volatile compounds (formedby alkali with sulphur and
chlorides in petcoke)condense and form a thickcoating.
Refractory bricks can be replaced with Alumina-Zirconia-Silica or silicon carbide based castable
which has low adherence property.
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Technical Characteristics of Cement Kiln
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Composition across the Kiln with temperature
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Temperatures and retention time in apreheater cement kiln
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SO2 Evaporation and Circulation Factor
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Process Diagram
Modify raw mix to account forhigher S & lower ash
Finer grinding of petcokeLarger blower for primary airMore secondary air
More grinding capacity
Refractory upgrade
Bypass line
Burning petcoke during precalcinationIncreasing precalciner height
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Second levelThird levelFourth levelFifth levelFinancial Benefits
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Profit Improvement
% Revenue Basis
$ / MT Basis
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Sensitivity Analysis
EBITDA compared to Base Case: $ 1.33 /MT Cement
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Sensitivity Analysis
PAT compared to Base Case: $ 0.9 /MT Cement
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Second levelThird levelFourth levelFifth levelPetcoke in India
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Production & Consumption
Product
Relatively new in India Mostly fuel grade
Supply
< 0.5 MMTPA to > 7 MMTPA in the
last decade
Addition of coker units to boost
supply
Demand
< 0.5 MMTPA to > 7 MMTPA in the
last decade
Coal shortage boosting demand Cement & Power major users
Prices Generally set relative to imported
coal prices
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Regional Supply & Demand
Major petcoke production and consumption in West Surplus in West and deficit in South Consumption in other zones to increase with addition of cokers in those zones
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Market Segments
Major offtake by cement industry, as Sulphur doesnt create problems for them Boilerspower and process steam applications Early adopters from other industries
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Production
New cokers to
produce fuel gradepetcoke
Surplus in West toincrease
Fuel grade petcokewill be produced inEast and South too by2015
Refinery Coker DateVadinar Q1 FY 2013Bhatinda Q4 FY 2012Koyali Q2 FY 2012Bina Q2 FY 2012Paradip Q1 FY 2015Mangalore Q4 FY 2013Manali Q4 FY 2013
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Second levelThird levelFourth levelFifth levelEssar Petcoke
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Facilities
Production
1.8 million tons per annum petcoke production capacity
Storage
2 silos with capacity of 1000 tons each Open storage yard Storage near rail siding
Logistics
24 7 road loading Integrated rake loading Coastal loading facilities from Bedi port
Quality
Stringent quality control at all stages State of the art quality control lab
Customer Service
Dedicated sales team for customer delight Customized solution for converting from other fuels Support in troubleshooting
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Specifications
S.No Parameter Unit Limits1
Moisture (ARB)
% wt
8.0 max
2 Ash % wt 1.0 max3 Volatile Matter % wt 8.0 min4 Fixed Carbon % wt 85 min5 Gross Calorific Value (ARB) Kcal/Kg 7,800 min6 Sulphur % wt 6-87 HGI - 28 - 52
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Second levelThird levelFourth levelFifth levelWhy Petcoke?
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Benefit
Cost
Cheaper than many fuels on a calorific basis
Capture of entire calorific value of fuel leading to higher efficiency
Availability
Increasing supply Reliable supplies from various refineries
Calorific Value High net calorific value
Ash
Lower ash with no disposal problems
Lower abrasion
Handling
Lower quantity of fuel to be handled Lower area required for storage Non hygroscopic - doesn't absorb moisture Lower handling and transportation losses
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Thank You