Displaying items by tag: Fuel
Nepal: Cement producers have suggested that consumers wait for cement prices to fall before they build new homes. Bishnu Prasd Neupane, managing director of Jagadamba Cement, made the comment at a forum organised and reported upon by Nepal Republic Media. He said that end users could benefit from the fall in the international price of crude oil. A drop in fuel prices is expected to cut transport and production costs. Overall, the price of construction materials could drop by 20%.
Tara Prasad Pokharel, general secretary of Cement Manufacturer's Association Nepal (CMAN), asked customers not to pay more than a transportation cost of more than US$1.4/bag or more than 20% dealer costs on top of factory prices. The retail price of cement has increased by more than 50% due to high transportation costs caused by fuels shortages.
"The price of diesel is expected to come down to US$0.55/litre from US$0.69/litre. It will obviously lower our cost of production," said Pashupati Murarka, promoter of Arghakhanchi Cement and also the president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Use of diesel-run generators increases the price of cement by around US$0.74/bag at current oil prices. Use of the country's national grid increases is also expected to cut the cost of production significantly.
HeidelbergCement and Joule announce partnership to explore carbon-neutral fuel application
16 December 2015Germany: Joule, a producer of liquid fuels from recycled CO2, and HeidelbergCement have announced a partnership to explore the application of Joule's technology to mitigate carbon emissions in cement manufacturing. A successful partnership between Joule and HeidelbergCement could result in the co-location of Joule's Helioculture Technology at one or more HeidelbergCement sites around the world.
Since 1990, HeidelbergCement has worked to decrease its carbon emissions, initiating various programmes across the organisation that have reduced emissions by 23%. HeidelbergCement said that its partnership with Joule represents another example of its sustained dedication to leveraging innovative technologies and programmes for climate protection. As part of the agreement, emissions from various HeidelbergCement plants could provide Joule with the waste CO2 required to feed its advanced Helioculture platform that effectively recycles CO2 back into fuel.
"We've been focused on lowering carbon emissions for more than two decades and we are excited to take further steps to lower our CO2 emissions by working with a dedicated organisation with state-of-the-art technology that is committed to protecting the climate," said Jan Theulen, Director of Alternative Resources at HeidelbergCement. "Joule's process, which effectively recycles waste CO2 into liquid fuels, is a perfect match for HeidelbergCement and our core values and we look forward to starting the journey towards a long-term, mutually beneficial relationship."
Joule's Helioculture process directly and continuously converts sunlight and waste CO2 into infrastructure-ready fuels, including ethanol and alkanes that serve as highly blendable feedstock for diesel and jet fuel products. Only requiring abundantly available inputs, including sunlight, brackish or sea water and waste CO2, the process is well suited for global deployment. For organisations like HeidelbergCement, Joule turns a carbon challenge into a carbon solution by capturing and recycling waste CO2.
"Carbon emissions are a challenge faced by many industries that are of critical importance to everyday life, such as cement," said Brian Baynes, CEO of Joule. "We are pleased to have the opportunity to partner with HeidelbergCement in an attempt to develop a modern, ultra-low carbon cement manufacturing process."
Raysut Cement to install gas reduction station
16 December 2015Oman: Raysut Cement Company has signed an agreement with Arabian Industries for the installation of a gas pressure reduction station (GPRS) at its Raysut plant. Oman Gas Company has been appointed as the Project Management Consultant. Upon completion of the GPRS, cement production will be boosted by 120,000-130,000t/yr. Total investment in the project is estimated at US$5.45m.
Egypt: Investments worth US$30bn in the coal industry are expected to be conducted within the next five years, according to Egypt's investment minister Ashraf Salman.
Salman said that there is 'full coordination' between the ministries of environment, electricity and investment to adhere to international environmental standards when using coal. Egypt's cabinet announced new rules on coal use in April 2015, which stipulate that coal imports can only take place after approval from the ministry of environment. The new rules are an amendment to a law on environmental affairs and allow the use of coal for cement, iron and steel, coke and aluminium production and in power plants.
Salman said that using coal as an energy source would decrease the dependency on natural gas as a primary energy source and petroleum products in steel and cement production. Despite the energy crisis, which has caused frequent and numerous power outages for years, the cabinet's approval of new coal use has caused controversy both within the government and outside.
Commissioning to start at new UK SRF facility
12 February 2015UK: SITA UK has completed the construction of its Solid Recovered Fuel (SRF) manufacturing plant at Malpass Farm in Rugby, Warwickshire. The plant will undergo a series of commissioning tests over the next few months before starting full-scale production of Climafuel SRF. This will be used to power the kiln at the adjacent Cemex UK Rugby cement plant.
The residual waste material arriving at the site will primarily be collected from commercial and industrial businesses across the region that would otherwise go to landfill. Once received on site any metals, plastics and paper will be extracted for recycling. Similarly, materials with a high chlorine content, which could damage the kiln, will also be extracted. Any residual waste material that is removed from the production process will be processed into refuse derived fuel (RDF) for use in waste-to-energy applications.
To produce the SRF, the remaining material is sifted, shredded and blended while being continuously analysed using infrared technology. This allows the plant operators to ensure that the fuel, which has a confetti-like consistency after processing, has the precise chemical composition and calorific value required by Cemex UK.
SITA UK's Head of Alternative Fuels, Andy Hill, said, "The residual waste material that will be delivered to this facility would have gone to landfill but, instead, we are going to take out anything that can be recycled and then turn what's left into a replacement fuel."
"We have been producing this fuel very successfully at our sister plant at Landor Street in Birmingham for the past couple of years, but this new facility implements the latest technology and will substantially increase our production capacity," continued Hill. "Between the two plants, we'll be producing around 250,000t/yr of Climafuel."
SITA UK is currently also investing in new SRF manufacturing facilities at the Port of Tilbury in Essex, which are currently under construction. SITA UK currently supplies SRF to CEMEX UK and to CEMEX Latvia.
Mexico: Holcim will start a programme to use biomass as fuel in August 2014 at its Orizaba cement plant. Its subsidiary Ecoltec has installed a system to utilise biomass, using residual heat from the cement furnaces. The company will use coffee bagasse and biomass from the paper and beer industries, according to spokesman Gustavo Gastelum. Apart from limiting fossil fuel consumption, the project will also reduce methane gas emissions from organic waste. Since 1990 Holcim Mexico has cut its net carbon dioxide emissions by 19%.
Egypt: Omar A Mohanna, Chairman of Suez Cement, has announced that the company intends to alter its energy mix to use 20% of its energy from waste recycling and 80% from coal during 2014. He added that the Ministry of Environmental affairs has not announced its position on the use of coal, according to AlAhram News. Previous energy supply shortages have reduced production at Suez Cement to 50%.
In related news, the CEO of the Misr Beni Suef Cement Company revealed that his company has received an official letter from the Egyptian government informing the company that the natural gas supply to their facilities will be completely cut in May 2014. The letter added that the government will supply enough Mazut to the company to operate one production line.
Can the Egyptian cement industry secure its fuel supplies?
19 February 2014Suez Cement and Italcementi's first waste treatment plant in Egypt was inaugurated this week. The project uses 45,000t of household waste to produce 35,000t of alternative fuel annually. Given Egypt's on-going fuel concerns the project will be watched closely.
Italcementi has much riding on the success of the project. It has five integrated cement plants in the country. As reported in early February 2014, the cement producer suffered reduced production capacity in Egypt despite 'potential' domestic demand due to limited energy availability. Cement sales volumes in Egypt for Italcementi have continually fallen since 2011, accelerating from a 5.4% year-on-year reduction in 2011 to a 17.6% year-on-year reduction in 2013. Yet, despite this, rebounding domestic demand was reported in 2012 and 2013.
It must be extremely frustrating for Italcementi. It has the production capacity, it has demand but it doesn't have the fuel to power its lines. Any additional fuel will be welcome. At a rough and conservative rate of 200kg of fuel per tonne of cement produced, Italcementi and Suez Cement's new alternative fuel stream could help to produce 175,000t of cement or about 1.5% of the cement producer's clinker production capacity of 12Mt/yr.
Lafarge, with its mega 10.6Mt/yr cement plant outside of Cairo, hadn't suffered (publicly) as much as Italcementi from fuel shortages until the publication of its financial results for 2013. Although sales had decreased year-on-year since 2009, this has been blamed on competition. Now it has been announced that cement volumes decreased by 30% in the first half of 2013 due to shortages of gas. This was mitigated through fuel substitution to a 19% drop in the third quarter and a 7% drop in the fourth quarter.
However, Lafarge's strategy for fuel security may be threatened as the Ministry of State for Environmental Affairs ordered the producer to stop preparations to build storage units for petcoke in February 2014 citing environmental and economic reasons. What happening here is unclear given that the Egyptian government has been encouraging cement producers to move away from using natural gas.
The examples above show the reactions two multinational cement producers, Italcementi and Lafarge, have made to secure their fuel supplies. The outcomes remain uncertain.
In other news, Shijiazhuang in Hebei province in China has started the demolition of 17 (!) more cement plants. This follows 18 plants that were demolished in December 2013. In total, 18.5Mt/yr of cement production capacity has been torn down.
This is more than the cement production output of most European countries or any single US state! Where was this cement going previously? What were the effects on the price of cement in China? Who is taking the loss for the destruction of this industrial production capacity? BBC News Business Editor Robert Peston has some ideas.
Lafarge ordered to halt coke use in Egypt
12 February 2014Egypt: Lafarge has been ordered by the Ministry of State for Environmental Affairs (MSEA) to halt its preparations to build storage units for petcoke, according to a statement by the ministry. The MSEA expects the French cement manufacturer in Egypt to wait for a final decision on the use of petcoke as fuel in industrial operations.
France-based multinational cement producer Lafarge submitted a study to MSEA on the environmental impact of petcoke in May 2013 and awaits a government decision on its use. The MSEA does not allow cement factories to import coal, citing hazards to the environment and the economy. The cement industry consumes 9% of the total amount of natural gas produced in Egypt, after the electricity and fertiliser sectors. The switch to coal was first suggested as an alternative to gas when the government announced plans to gradually remove gas subsidies.
Egypt: The managing director of Suez Cement has announced that the company intends to invest US$145m by 2016 energy security measures. US$72.5m will be spent on converting two of its five cement plants for the use of coal instead of gas and diesel. The remaining US$72.5m will be spent on environmental upgrades.