Displaying items by tag: energy efficiency

Switzerland: ABB has entered into a memorandum of understanding with UK-based climate tech company Carbon Re, to explore integrated solutions aimed at accelerating the decarbonisation of cement production while improving productivity. The collaboration will reportedly combine ABB's expertise in automation and process control with Carbon Re's AI and machine learning technologies. The partnership follows a successful pilot at a cement plant in the Czech Republic, where ABB plans to augment its ‘Ability Expert Optimizer’ solution with Carbon Re's AI platform. This integration is expected to automate and optimise plant conditions, potentially reducing specific energy consumption by up to 5% and increasing alternative fuel use by 50% by maintaining optimal kiln conditions.

CEO at Carbon Re, Josh Vernon, said “At Carbon Re we are accelerating industrial decarbonisation through the use of cutting-edge AI – our models have demonstrated that AI can find efficiencies within the complex chemical processes of material production, especially cement.”

Global portfolio manager for Business Line Digital, ABB Process Industries, Tyron Vardy said “Driving down the emissions of cement production is a pressing priority for the industry. Our collaboration with Carbon Re will bring us closer to achieving this. Enhanced by cloud-based AI technology, our decision support software will be able to help customers enhance and improve the efficiency of their systems faster than ever before.”

The National Development and Reform Commission and other government bodies in China released plans this week to cap clinker production capacity at 1.8Bnt/yr by the end of 2025. Energy efficiency of existing capacity will be used as the driver to determine which production lines can remain open. 30% of capacity will be required to be above the benchmark energy efficiency level. Plants below this line will be obliged to upgrade or face elimination.

Points of interest from the longer release include detail on how the authorities intend to promote energy efficiency. Installing improved production line equipment is as might be expected. However, there is also a drive towards low-carbon fuel substitution such as an increased thermal substitution rate (TSR) through the use of alternative fuels (AF), promotion of renewable energy sources and, interestingly, no new cement plants will be able to add captive coal power plants. The government is targeting a TSR of 10% by the end of 2025 with 30% of lines using AF in some form or another. A plan to reduce the clinker factor in cement is also being pushed through for the increased use of blast furnace slag, fly ash, carbide slag, manganese slag and other supplementary cementitious materials. This last point might have big implications for the ferrous slag export market but that’s a story for another day.

Working out how much these new measures will affect the cement sector in China in the short term is not straightforward since it’s unclear what the country’s actual production capacity is and how much of it is actually active. Data from the National Bureau of Statistics of China showed that cement output was 2.02Bnt in 2023. The China Cement Association (CCA) estimated that the capacity utilisation rate was 59% in 2023. So, if the sector were using all of its integrated cement plants flat out, then one might crudely suppose that the national production capacity might be around 3.5Bnt/yr. This guess does not take into account the prevalence of blended cements and a whole host of other factors so should be treated with caution. Given that cement output fell by 5% year-on-year in 2023, output could be just over 1.8Bnt in 2025 if the rate of decline holds. Research by Reuters in April 2024, suggested that the capacity utilisation rate hit 50% in that month, suggesting that the sector could meet the target in 2024 if it’s a particularly bad year. So, provided the production cap is enacted along the same lines of peak-shifting, where plants are temporarily shut for periods, then the target looks well within reach.

As reported in April 2024, the Chinese cement sector has faced rationalisation in recent years as the real estate market collapsed. Output peaked in 2020 and then fell subsequently. Most of the big producers endured falling sales volumes, revenue and profit in 2022, although some managed to resist the continuing decline in 2023. One coping mechanism has been to focus on overseas markets as proposed by the government’s Belt and Road initiative. Huaxin Cement has been a particular proponent of this strategy. The CCA says that China-based companies have invested in and built 43 clinker production lines in 21 countries with a cement production capacity of 81Mt/yr. Another 43Mt/yr of capacity is currently being built outside of China with yet another 25Mt/yr of capacity proposed for construction.

It is interesting, then, to note that the CCA issued an official warning this week to its members to invest ‘cautiously’ in Uzbekistan. The association said in a statement that at the end of April 2024 the country had 46 integrated production lines with a cement production capacity of 38Mt/yr. This is double the country’s demand for cement. Half of this production capacity is managed by China-based companies. It added that the utilisation rate was currently 50%, that the price had dropped by about 40% since 2020 and that competition was ‘fierce.’ Incredibly, another 7Mt/yr of capacity is expected to be added in 2024. The CCA has advised Chinese companies to consider the state of the Uzbek cement market before making any more investments.

The two news stories we have explored this week cover two sides of the same issue: Chinese cement overcapacity. The local market is finally slowing down after a period of phenomenal growth and the big question is what is the actual market demand now that all the big stuff has already been built. The government gives every impression it is using the decline to meet its sustainability goals. Like institutions in many other places it has set itself targets that it seems likely to meet. The flipside of overcapacity at home is investment overseas. China-based plant equipment manufacturers have certainly done well out of this situation. Yet in Uzbekistan, at least, it looks like the cement sector in China has also managed to export its overcapacity. This has created the absurd situation where the CCA has implored its members and others to exercise the same self-discipline abroad that the government extols at home. Another way to put this might be that Chinese cement companies are increasingly unable to make money at home… or in Uzbekistan. This then leaves a query over where else enthusiastic Chinese cement investors may be causing market imbalances. One solution might be for the Chinese government to impose a cap on clinker production by its companies outside the mainland. Whatever happens next though, the introduction of a capacity cap in mainland China marks a decisive change to the local cement sector.

Spain: The Cemex plant in Alcanar has been granted €3m from the PERTE project for industrial decarbonisation, facilitated by the Ministry of Industry. This subsidy is part of a broader initiative involving 19 projects with a total aid of €96m under Line 1 of the programme. Cemex aims to contribute to decarbonisation of the clinker production process at its Alcanar facility by centralising compressed air production to enhance energy efficiency, replacing 14 old compressors with two more powerful and efficient units. The plant also plans to increase the use of alternative fuels in clinker production by integrating waste-derived and biomass fuels.

US: On March 14, 2024, the US Environmental Protection Agency (EPA) acknowledged 103 manufacturing plants for achieving Energy Star certification in 2023, a prestigious recognition for being in the top 25% of energy efficiency in their respective sectors. These plants collectively prevented over 8Mt of CO₂ emissions. Out of the 103, 11 were cement plants.

EPA Administrator Michael S Regan said “These Energy Star certified plants demonstrate that cutting the embodied carbon of our industrial products through energy efficiency doesn’t just make environmental sense, it makes economic sense.”

The industrial sector, responsible for 30% of US greenhouse gas emissions, mainly due to energy consumption in manufacturing, has seen significant improvements in these Energy Star certified plants. These facilities assess their energy performance using EPA’s energy performance indicators or the Solomon Associates Energy Intensity Index for petroleum refineries. Plants scoring at least 75 out of 100, thereby exceeding the energy efficiency of 75% of similar facilities nationwide, are eligible for this certification. Available across 21 manufacturing sectors, including cement, steel, glass, and commercial bakeries, Energy Star certification has been awarded to over 270 plants since 2006, reflecting the growing trend of energy-efficient practices in the manufacturing industry.

South Korea: Halla Cement has awarded a supply and engineering contract to Germany-based KHD Humboldt Wedag for an upgrade of line 2 at Okke plant. KHD will supply a new Pyroclon R type calciner, with a Pyrotop type mixing chamber, and a 4.2m x 15m Pyrorotor type combustion reactor. Other equipment being provided includes: a Pyrobox type coal firing system for process start-up and operation balancing; replacement of stage five cyclones with new high-efficiency cyclones; and a new kiln inlet chamber with orifice. Erection and commissioning of the modernised production line is scheduled for the first quarter of 2024.

This latest project marks the second installation of a Pyrorotor at Halla Cement’s Okke plant. The installation of line 3 at the site is currently ongoing with commissioning scheduled for the first quarter of 2023. Overall, this will be KHD’s ninth installation of a Pyrorotor in South Korea.

The Pyrorotor has been promoted to cement plants as a way of using low-quality alternative fuels with minimal pre-processing. It offers a thermal substitution rate of over 85% and will also allow the Okke plant to reduce its NO_x emissions. The installation of the new Pyroclon R type calciner and the high-efficiency cyclones in the lowest preheater stages will also provide the production line with an increase in efficiency due to an overall pressure drop reduction in the entire preheater.

UK: Global building materials supplier Cemex UK has launched its Buildings Made Better range of renovation and refurbishment products and services. The company says that the range offers customers easy access to low carbon, energy efficient or water-conserving building solutions. It includes a wide selection of existing and new products including its Vertua low carbon concrete. The producer said that the solutions support the construction phase and the whole lifecycle of the building.

Cemex Materials West Europe quality and product technology director Steve Crompton said “The renovation of existing buildings can lead to significant energy savings for all, as buildings account for over 40% of energy consumed. More than 220m buildings in Europe, representing approximately 85% of the building stock built before 2021, will mostly still be standing in 2050, yet currently only 1% of buildings undergo energy-efficient renovation each year. The energy performance of buildings is a major area for improvement in public policies, for new build and the renovation of the existing stock. From residential housing, to public buildings and urban schemes, across the board, we’re demonstrating to our customers that by improving the built environment, we can significantly improve our natural environment too.”

He added “Concrete has a critical role to play in the transition to a low-carbon economy. We have the aspiration to deliver net zero CO₂ concrete globally by 2050, which will contribute to the development of climate-smart urban projects, sustainable buildings and climate resilient infrastructures. By bringing together a comprehensive range of sustainable products that support the important area of retrofit, we are offering our customers easy access to the right products for the job whilst keeping the environment front of mind.”

South Korea: Sampyo Group has announced a planned investment of US$171m before 2030 to reduce Scope 1 and 2 CO₂ emissions by 35% over the period from an August 2021 baseline. The parent company of Sampyo Cement plans to achieve this in the first phase by increased its use of alternative fuels, improving energy efficiency, introducing low-carbon raw materials such as fly ash and developing sustainable products. The company is targeting net zero CO₂ production by 2050.

China: Seven of Huaxin Cement’s plants have been selected on a national energy efficiency list released by the Ministry of Industry and Information Technology and the State Administration of Market Regulation. The list contains energy efficiency ‘leaders’ from energy intensive industries in 2020. It includes 28 cement companies. Huaxin Cement’s plants were selected in Xinyang, Yangxin, Zhaotong, Zhuzhou, Xigaze, Wuxue and Tibet factory. Of these the Xinyang plant had the lowest energy intensity of clinker production of all the cement producers on the list.