Proactive Indian Cement Sector

Low Carbon Technology Roadmap and Initiatives

www.justlimateaction.org

Cement sector in India – An overview

About 50% of installed capacity based on

modern technology (<10 years old)

Continuous modernization drive in old

plants and many efficient cement plants

shifted to non-fossil fuel sources

World leader in blended cement production

65% of the installed capacity is covered

under Cement Sustainability Initiative (CSI)

Second largest cement producer in world

More than 100 years old

Nearly 400 Million Tonnes Per Annum

(MTPA) installed capacity

Plant sizes varies from 3000 to 13000 TPD

Regarded one of the most energy efficient in

world

India Low Carbon Technology RoadmapPartners and Supporters

Industry supporters

www.justlimateaction.org

Low Carbon Technology Roadmap (two phases)

Broad Technology papers developed

Cement demand data, scenario building

Technology

Financing

Policy

Cement

Sector

Roadma

Stakeholder outreach

Stakeholder & partner review

Data coverage in Roadmap (85%+)

Phase IPhase II

Site specific feasibility assessment at plant level for identified

technologies in phase I

Phase II outcome -Site specific technology with carbon

mitigation potential

www.justlimateaction.org

Low Carbon Technology Roadmap – An overview

Identification of key levers for brining down carbon footprints

Further reduction in clinker content (blended cements)

Thermal and electrical energy efficiency

Co-processing of alternative fuels (AFRs)

Electricity generation through waste heat recovery

New technology development

Further reduction in the clinker content by significant

shift from Ordinary Portland Cement (OPC) to blended

cement production by using additives and less clinker,

thereby reducing carbon emissions

Key AchievementsReducing the clinker content - Blended Cement Production

Benefits of Blended Cement :

Conservation of mineral resources such as Limestone

Reduction in electricity and fuel consumption

Usage of industrial waste i.e. fly ash and slag as a rawmaterial, thereby reducing environmental hazards

779

533

328

OPC PPC PSC

Average kg CO2/ton of cement type (estimated direct emissions)

70

4228 ~

25

30

5872 ~

75

0

20

40

60

80

100

120

FY 95 FY 05 FY 12 FY 15

Blended Cements Ordinary Portland Cement (OPC)

20 22 26

138*

FY 10 FY 12 FY 15 Cumulative FY 10 to FY15

Avoided CO2 emissions (Million Tonnes) resulting from countrywide shift from OPC to blended cement

* From FY 10 to FY 15, about 138 million tonnes of CO2 was avoided due to blended cement production. This is equivalent to 40% of annual CO2 emissions from Australia (2013).

Key AchievementsReducing the clinker content - Blended Cement Production

913 894 891 864 851 808727

NorthAmerica

Africa Europe CentralAmerica

Brazil MiddleEast

India

Source: CSI data publication 2014

747

727

2010 2013

• Consistent reduction in specific thermal energy consumption of Clinker

• Ranks one of the best in world

• Dalmia Cement’s Kadapa and Ariyalur plant annual average 700 – 704 kCal/kg Clinker

Thermal energy consumption 2013 India (kCal/kg of

Clinker)

Thermal energy consumption 2013 world comparison

(kCal/kg of Clinker)

Key AchievementsThermal energy efficiency

128 117 112 105 103 94 93

83

Electricity consumption 2013 (kWh/ton of cement)

Source: CSI data publication 2014

• 12% reduction in electricity consumption (kWh/ton of cement) during 2010-13

• Indian cement sector ranks one of the best in world

• Dalmia Cement (Bharat) Limited Ariyalur plant – 64.67kWh/ton of cement.

94

83

2010 2013

Electricity consumption India (kWh/ton of cement)

Key AchievementsElectrical energy efficiency

Carbon Footprint in Cement Sector

Current scenario

Source: Global Average and India average figures have been taken form the low carbon technology roadmap for cement sector developed by WBCSD, CSI and IEA

Our Eastern India operations

• 395 kg/ton of cement for FY 15.

Dalmia Cement (Bharat) Limited (group average)

• 531 kg/ton of cement for FY 15

• An aspiration of 1.4% per annum reduction is estimated in the India roadmap

Low Carbon Technology Roadmap 2050 and beyond

Low Carbon Technology Partnership initiative (LCTPi)

• Cement LCTPi India ambition is up to 20% reduction of CO2 emissions by 2030

compared to Business As Usual scenario

• The aspirations can be met through:

• Increasing clinker substitution (blended cements)

• Enhancing energy efficiency (thermal and electrical energy)

• Increasing use of alternative fuels and raw materials (non-fossil fuel use)

• Development of new products, technologies (research and development)

• In order to achieve this level of ambition in cement sector, availability of concessional

financing, policy reform and removal of barriers in technology transfer is required

Additional technological interventions for low carbon

growth

Electrical energy efficiency

• Installation of high efficiency

fans, blowers and compressors

• Use of latest generation high

efficiency electrical motors and

variable speed drives

• Generating electrical energy

from waste heat recovery system

• Installation of energy efficient

grinding systems such as VRM

and Roll Press

• Use of Renewable energy from

wind, solar, Hydro, etc.

Thermal energy efficiency

• Additional preheater cyclone stage

installation wherever feasible

• Installation of higher efficiency latest

generation clinker cooler

• Improved insulation for reducing

radiation losses from kiln, preheater

and cooler

• Reduction of false air in kiln by

installing new design sealing systems

• Installation of low primary air kiln

burner systems and reduction in fuel

conveying air

• Improvement in plant heat rate of CPP

by improving boiler and turbine

efficiency

New developments

• Geopolymer cement

• Composite cements

• Carbon Capture Storage

and Use (CCS - U)

• Reducing carbon

emissions from inbound

and outbound logistics

through optimisation

Structured visits to other

plants to understand the

new technology initiatives

Alternative Fuel Utilisation

Current practice

• The alternative fuel utilisation in India is increasing gradually

but still very low compared to Europe

• Current usage of alternative fuel in India is about 1% (heat

basis) compared to 30-40% (heat basis) in Europe.

Potential and recommendations

• Significant thermal substitution potential from waste streams

• Viable business model through policy intervention such as

polluter to pay principle needs to be developed as it is the

case in developed world

• Government is supporting by development of new standards

to facilitate co-processing in cement kilns.

• With supportive policy in alternative fuel

utilisation, the average thermal

substitution rate in India can reach 19%

in 2030 and 25% in 2050 as compared

to 1% in current scenario

• This will result into saving of fossil fuels

and significant mitigation in CO2

emissions.

Source: India Low Carbon technology Roadmap

External support needed to meet our low carbon

growth aspirations

• New low carbon technologies are capital intensive

• Need low cost finance through Green Climate Fund for further reduction of carbon footprint in

developing countries

• Co-generation through waste heat recovery system

• High potential for electricity generation from waste heat recovery

• Needs new capital intensive technologies to utilise low temperature waste heat

• Waste heat recovery to be treated as renewable energy to get priority low cost finance

• Cement sector needs incentives for encouraging waste utilization

• Need to bring in developed country policies on ‘Polluter to Pay’ in developing countries to enhance

usage of waste materials in cement sector

• Making technologies available for developing countries

• Developed countries should remove the barriers in their technology transfer

• More research on CO2 sequestration and it’s conversion into new product

• Addressing the gap from 2016 to 2020

• Need for revamping the international carbon trading market to incentivize low carbon technologies

Dalmia Cement - Partnerships for Sustainable

Development

Best Wishes for Clean, Green and Happy Globe.

Thank You.

Mahendra SinghiGroup CEO and Whole Time Director – Dalmia Cement (Bharat) Group