Power Cement already operates one of the largest and most modern cement plants in South Asia. It is now embarking on exciting projects in alternative fuels, microgrids and more...
As recently as 2017, Power Cement was a small cement producer located close to Karachi, Pakistan, with a less than ideal reputation in the market. Its owner, the large Pakistani conglomerate Arif Habib Group, had acquired it in 2010, but the plant suffered from dated production lines that used equipment from various suppliers. The original 1200t/day kiln opened in 1988 and an 1800t/day 2008-vintage line had not provided the boost that the business had anticipated.
The decision...
In line with a modernisation drive across its operations, the owner had to decide: Invest in Power Cement or exit the market. After extensive research, a decision to invest was taken in 2017. The owners wanted to undertake a significant modernisation project to bring the plant up to date, while preparing it for a future of rapidly-changing demands. It wanted to transform not only the plant, but its standing within the Pakistani cement industry. This included several other aspects, including marketing, sustainability and how it handled relationships with stakeholders.
The group wanted to provide Power Cement with the best possible technology... and to go large. To do this, it contracted FLSmidth to build an entire 7700t/day production line, from crushing to dispatch. This approach was unique in Pakistan, where cement plants are usually assembled using a mixture of low-cost Chinese components, with key equipment from Europe. Power Cement's approach is more costly up-front, but it ensures a higher product quality, lower operating costs and longer lifespan. As it comes from a major European supplier, the equipment is primed to handle alternative fuels and other modern practices that are yet to be widely adopted in the Pakistani market.
The boost...
When the new FLSmidth line came online in 2020, the plant's capacity was boosted from 3000t/day to 10,700t/day, the equivalent of around 3.2Mt/yr. The two older lines are now used on a campaign basis, depending on demand. The quality of its products are now also the highest in the country, with marketing to reflect this.
The performance of the plant is also enhanced. The new line has 'best in region' heat consumption below 700kCal/kg of clinker and energy consumption of less than 82kWh/t of cement. This reduces the plant's costs for imported coal and electricity, which together constitute as much as 75% of all operating costs. The high level of performance insulates the company, as much as possible, from hugely variable coal costs. On top of this, its emissions - SOx, NOx, dust, PM, heavy metals, total organic carbon, etc - are well within national requirements and International Finance Corporation standards.
The transition...
To become even more energy-independent, Power Cement is undertaking several key initiatives. On the power side, the new line has a 9 - 10MW waste heat recovery (WHR) system, which provides around 30% of its 35MW needs. A 7MW captive solar photovoltaic system was installed in 2022. This provides another 7% of the energy needed. Over the past 12 months, a wind monitoring system has been collecting data that confirms that the plant site is suitable for a planned 9.6MW captive wind farm.
In the next few years, Power Cement will combine these to establish the first microgrid in the global cement sector to use captive solar, wind and WHR. There will be a small battery array, but only to balance the various inputs. The storage technology has not yet developed sufficiently to go off-grid entirely, although this is anticipated to change in the future. The scale of solar and wind developments are also limited by the fact that the national power grid is not currently set up for feed-in tariffs, although the company is discussing their implementation with the government.
On the thermal fuel side, the management has also investigated the kinds of alternative fuels (AF) that are available inside Pakistan. Two were identified. The first is municipal solid waste (MSW). Unlike in developed economies, there is no segregation of the 150,000t/day of MSW that Pakistan produces. Almost 100% of it goes to landfill. This, combined with high-moisture, an informal recycling sector and a lack of gate fees, means that it is very difficult to prepare refuse-derived fuel (RDF) and secondary recovered fuel (SRF). Power Cement is pushing the government to implement new legislation that fosters a segregating mindset at the household level. It is also encouraging the establishment of economic drivers to redirect MSW from landfill to re-use. This will ultimately benefit the entire cement sector, municipalities, local people and the environment as a whole. The company is also 'doing its homework' when it comes to MSW treatment at the plant. There are several solutions under investigation.
The second AF identified was biomass from agriculture, a sector that provides 50% of Pakistan's GDP. The country is a major producer of a number of staple crops, including sugar, wheat, cotton, rice and maize. There are tens of millions of tonnes of biomass waste produced every year. Unfortunately, farmers want to dispose of it almost immediately so that they can plant the next crop. They simply burn the biomass, releasing vast quantities of CO2 to the atmosphere and creating intolerable air quality over large areas. Since August 2023, Power Cement has developed partnerships with small individual farms. It collects the waste and pays a small fee. Sometimes there is joint investment in shredding technology.
The plant now feeds the precalciner with biomass using a bucket elevator at up to 5% thermal substitution rate (TSR). However, rates vary due to changing supplies. Rice husk and wheat straws are very lightweight and don't need any processing. Corn cobs and banana leaves need to be shredded at the farm.
In the first six months of using biomass, Power Cement was able to save US$600,000 on fuel costs, just on an informal basis. If the biomass TSR can be scaled up to a consistent 10 - 15%, economies of scale could mean savings 7 - 8 times greater. There's also the considerable reductions in CO2 emissions that result from the use of biogenic fuels. Regardless of the current economics, Power Cement is showing its competitors, neighbours, internal management and - most crucially - the authorities, that an AF processing sector based on biomass could be a reality in Pakistan. The company is developing an entirely new market and there is an almost inexhaustable supply of biomass to go around. It is important to remember that this is not modelled on approaches taken in Europe, the US or even Türkiye. Solutions for developed markets should not simply be copy-pasted into other markets. They should be tailored to local conditions.
Power Cement is taking all of these steps to set itself apart from its competitors in the market of the 2020s. At the same time, it is preparing for the future, where environmental regulations, input costs and other factors like CO2 taxes are all coming down the track.
The markets...
When running at full capacity, Power Cement has the capacity to produce around 3.5Mt/yr of cement. 97% of this is CEM I 52.5 N and 42.5 N, among the highest grades available in Pakistan. The remaining 3% is CEM II 42.5 N. Within Pakistan 80% is bagged sales and 20% is bulk sales.
Exports in the 2023 fiscal year (FY2023), which ended on 30 June 2023, represented around 35% of sales. In the export market, 43% is bulk clinker sales, while the remaining 57% is sold in 50kg bags. In value terms, exports rose by 168% compared to FY2022. This was partly due to a new desination for Power Cement, the US, the world's largest cement importing nation and one that historically receives large volumes from Türkiye. However, the devastating earthquake of February 2023 diverted Turkish cement that would have been exported to domestic reconstruction instead. Other exporters, including Power Cement, were able to step in.
To accommodate the US market, the plant recently installed a 1.5t Jumbo bag packing line, which is a new methodology for Pakistan. The first shipment took place in November 2023. The UK is also on Power Cement's radar. This is for low-chromium cement in 25kg bags. Both of these markets want high-quality cement. The company would not have these opportunities without the new line.
In FY2023 Power Cement also exported to Somalia, the Seychelles, Tanzania, Yemen and other markets in West Africa for the first time, in addition to its existing markets of Sri Lanka, Malta, Qatar, China and Madagascar.
The future...
Power Cement has bold plans to develop over the rest of the 2020s and beyond to 2030. One approach is to build much larger solar and wind plants to cover 75 - 80% of total electrical needs. This will be possible due to the introduction of feed-in tariffs. It is likely that, by 2030, battery storage technology will have advanced sufficiently to enable the plant to reach nearly 100% self-sufficiency in electricity supply terms.
On the AF side, the company will investigate and implement add-on technologies to feed large quantities of biomass and MSW. The target is 70% TSR by 2030. This may seem like a big jump, but many examples already exist in other markets, particularly in Europe.
Another key area is personnel. Pakistan, as a developing nation, suffers from quite severe brain-drain, as young people seek higher salaries elsewhere. To overcome this tendency, Power Cement will develop in-house training and apprenticeship schemes. This will allow it to continuously train its own engineers and, crucially, maintain and develop knowledge even when older workers retire. Senior management has agreed with the shareholders that the plant can employ more staff than might usually be employed at a cement plant. The incremental salary bill is not particularly significant when one considers the cumulative benefits of the in-house expertise that will be developed.
Other developments may include captive silo facilities overseas, which are already being considered in Tanzania and the US. It may also be possible to convert the 1200t/day kiln to calcine clay, which is available locally. This would offer the potential to create ternary cement blends that further lower the plant's impact on the environment even further.
Just the start...
Power Cement has bold plans for its future and will continue to push the development of the cement sector in Pakistan. In doing so, it will demonstrate to all stakeholders that sustainability is not only possible, but essential and within our collective grasp. We encourage others in Pakistan, South Asia and other developing markets to join us on the journey to greater cement sector sustainability.
About Ahsan Anis
Ahsan Anis (pictured) is Chief Operating Officer of Power Cement, where he oversees plant operations, sales, marketing, IT and human resources.
A chartered accountant by training, he transitioned into heavy industry through his involvement in the privatisation of a state-owned utlity company. He subsequently took on various roles on the boards of Arif Habib Group, the owner of Power Cement, before taking on his current role in 2021.
This article was supported by Kashif A Habib, Chief Executive Officer of Power Cement, who boasts over a decade in executive roles within the cement and fertiliser industries. A chartered accountant by training, Habib was formerly employed by AF Ferguson & Co and Arif Habib Corporation. He excels in strategic decision-making and is dedicated to advancing renewable energy solutions, collaborating with experts to benefit industry and the public at large.
