Alternate fuels major area of concern for cement sector: SUBSTANTIAL volumes of fossil fuels can be saved and associated carbon emissions mitigated by co-processing alternative fuels in cement industry. At present, the TSR (thermal substitution rate) by alternative fuels of the Indian cement industry is close to 1 per cent as compared to 25 per cent in the US, 34 per cent in Europe and the global average of around 8 per cent. In 2012, World Business Council for Sustainable Development (WBCSD) and International Energy Association came out with technology roadmap for cement industry in India wherein they have projected 5 per cent TSR by 2020, 19 per cent TSR by 2030 and 25 per cent TSR by 2050. And now a joint study by Institute of Industrial Productivity (IIP), Cement Manufacturers’ Association and Holtec Consulting said, although the cement industry in India is taking efforts to improve energy efficiency, the use of alternate fuels and raw materials (AFR) still remains a major area of concern. This is notwithstanding the fact that the Indian cement industry, being highly energy-intensive, has achieved significant achievement in last couple of decades in terms of energy efficiency, the latest study said. The report has listed hazardous waste, refuse derived fuel (RDF) from municipal solid waste (MSW), used tyres, biomass and plastic waste as alternate fuels, while it has listed fly ash and steel slag as alternate raw materials. “The key factor that drives sustainability of any industry is technology and cement industry is no exception. The industry has to scout for newer technologies to ensure that energy efficiency improves and carbon emissions are reduced in future as production and consumption grows keeping pace with global economic recovery,” said Alok Sanghi, director, Sanghi Industries. Environment conservation is the only feasible option available to cement companies for ensuring higher profitability and survival in the long-run as the industry is highly dependent on natural resources like limestone, lignite, coal and gypsum. Through usage of alternate fuels and raw materials, the industry would find a synergy between waste management and coal shortage. Significantly, India Ratings through another study expects cement demand growth to remain sluggish at around 5 -6 per cent for FY15, given the slowdown in the construction and infrastructure sectors. The growth will be supported by an expected increase in demand from the rural sector and tier II and tier III cities. There could also be some uptick in demand from H2 FY15 due to a provision in the union budget of 2013- 2014 for an investment allowance for infrastructure projects of Rs 1,000 million and above between April 1, 2014 to March 31, 2015. From - Financial Chronicle
Posted on: Wed, 29 Jan 2014 12:33:56 +0000