2012 2015 2020 2025 2030 2035 2040 2045 2050 · vision laid out in this roadmap. to achieve the...

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2012 2015 2025 2020 2030 2035 2040 2045 2050 IEA/WBCSD Roadmap targets Key findings The Indian cement industry is one of the most efficient in the world, yet it still produces 137 MtCO 2 in 2010, approximately 7% of India’s total man-made CO 2 emissions. u The Indian cement industry has already achieved a reduction in total CO 2 emissions to an industrial average of 0.719 tCO 2 /t cement (direct and indirect emissions) from a substantially higher level of 1.12 tCO 2 /t cement in 1996. u In the absence of appropriate technology development or policy actions, CO 2 emissions from the Indian cement industry are projected to reach between 488 MtCO 2 (Low-Demand Case) and 835 MtCO 2 (High- Demand Case) by 2050. u The technologies, policy frameworks and investment needs outlined in this roadmap could limit the potential increase of CO 2 emissions to between 275 MtCO 2 and 468 MtCO 2 by 2050. u The milestones set out in this roadmap for the Indian cement industry would enhance energy security by saving between 377 petajoules (PJ) and 485 PJ of energy in 2050 compared to a business-as-usual scenario. u Key levers to reduce emissions in the Indian cement industry are: increased rates of blending and alternative fuel/raw materials (AFR) use, widespread implementation of waste heat recovery (WHR) systems and a radical step change in new technology development. u To ensure widespread deployment and implementation of such technologies in the future, social acceptance, political will and policy development, and financial mechanisms, must be supportive. u The additional investment required to reach emissions reduction envisioned in this roadmap is between USD 29 and USD 50 billion (INR 145 000 crore and INR 250 000 crore), or 15% to 25% higher than in a business-as-usual scenario. Such investments need to be designed effectively and put in place at the early design stage of a new cement plant. Key actions in the next ten years Decisive action by all stakeholders is critical to realise the vision laid out in this roadmap. To achieve the envisioned levels of efficiency improvements and emissions reduction, government and industry must take collaborative action to create an investment climate that will stimulate the scale of financing required. In particular: u Intensify collaboration between stakeholders and among the international community to drive implementation of best available technologies and existing know-how, and to share experience and knowledge. u Perform cement plant level assessments to analyse how low-carbon technologies can be implemented at the manufacturing facility level, and develop action plans to increase the speed and scale of implementation. u Ensure proper legislation, regulations and standards are in place to enable increased use of clinker substitutes and to support the use of AFR in cement kilns. u Address public and market barriers for co-processing 1 and AFR use through modified regulation, awareness-raising campaigns, industry training and education. u Expand public awareness, international collaboration and financing for demonstration of carbon capture and carbon use for example through algal growth for carbon sequestration at cement plants. Globally, approaches to facilitate carbon capture and storage (CCS) demonstration must be elaborated. u Ensure sustained funding and support mechanisms are in place to support the development and deployment of new or alternative technologies, such as nanotechnology and geopolymer cement, which offer the potential for CO 2 emissions reduction. Provide a major thrust in R&D to move through pilot to demonstration phases to widespread deployment. u Facilitate widespread adoption of already-established low carbon technologies through financial mechanisms which channel adequate and predictable long-term finance to the industry in the form of CO 2 abatement revenues or up-front blended finance. All mechanisms should help accelerate the adoption of low carbon technology. 1. Co-processing is the use of suitable waste materials, generated by society or industry, in manufacturing processes, as a substitute for fossil fuel or natural raw materials. -400 -300 -200 -100 0 100 200 Total potential energy savings from all levers Energy required for carbon capture Electrical efficiency and WHR Thermal efficiency Clinker substitution Petajoules 0 100 200 300 400 500 600 2010 2015 2020 2025 2030 2035 2040 2045 2050 MtCO 2 Alternative fuels (10%) Energy efficiency (4%) Clinker substitutes (45%) CCS (41%) 6DS: 488 MtCO 2 Opportunities for CO emissions reductions 2 2DS: 275 MtCO 2 Contribution of different levers that could lead to energy savings in the Low-Demand Case Roadmap action plan and milestones: CO 2 emissions reduction potential between the 6 o C Scenario (6DS, or business-as-usual scenario) and 2 o C Scenario (2DS) from different technology options in the Low-Demand Case Note: From the five levers considered – AFR, thermal and electrical efficiency, clinker substitution, WHR, and new technologies and CCS – only three will play a role in restraining the growth in energy consumption in the Indian cement industry. AFR is not expected to reduce energy consumption, new or alternative technologies such as nanotechnology or geopolymer cement are not expected to be commercially available by 2050, and CCS is likely to increase energy use. Note: Total savings between the 6DS and 2DS amount to 212 MtCO 2 . Alternative fuel and raw materials Implement appropriate policies and practices to facilitate increased use of AFR, and address public and market barriers for co-processing of AFR Identify and classify suitable materials for AFR use Further analysis to identify the right feed point for any specific AFR material and enforce quality control systems for AFR materials used Disseminate information on existing AFR best practices and R&D already undertaken, including identification and mitigation of risks Thermal and electrical energy efficiency Ensure financial support and incentives are in place to enable major retrofits in older cement plants. Eliminate energy subsidies that can act as barriers to implementation Sustain funding to move from pilot to demonstration for fuel cell technologies, futuristic communition technologies and new types of low-carbon cement Gather reliable industry-level energy and emissions data to track performance, identify benchmarks and set targets Clinker substitution Develop standards and implement regulation for clinker substitutes, composite cement and Portland Limestone Cement Update and revise standards to account for new blending sources Continuous R&D to allow increased availability, and ensure quality of blending materials and clinker substitutes Conduct R&D to enhance lime reactivity of dump ash/pond ash, activation of granulated slag, and to prove viability of blending materials from non-ferrous industries and mineral processing industries Waste heat recovery (WHR) Further R&D to support the maximization of power generation from WHR systems R&D to decrease investment costs and promote the use of appropriate technology Ensure attractive financial incentives to enable widespread implementation of WHR Carbon use and CCS R&D to support the use of CO 2 for algal growth at cement plants Commercialisation of CO 2 use for algae growth Oversee a near-term approach to facilitate development and finance for demonstration of carbon capture and storage technologies Participate in the demonstration of a full-scale post-combustion cement plant and development of a pilot oxy-fuelled cement plant Participate in the demonstration of a full-scale oxy-fuelled cement plant Continue to accelerate commercial deployment of CCS 2012 2015 2020 2025 2030 2035 2040 2045 2050

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2012 2015 20252020 2030 2035 2040 2045 2050IEA/WBCSD Roadmap targets

Key findings

The Indian cement industry is one of the most efficient

in the world, yet it still produces 137 MtCO2 in 2010,

approximately 7% of India’s total man-made CO2 emissions.

u The Indian cement industry has already achieved

a reduction in total CO2 emissions to an industrial

average of 0.719 tCO2/t cement (direct and indirect

emissions) from a substantially higher level of

1.12 tCO2/t cement in 1996.

u I n the absence of appropriate technology development

or policy actions, CO2 emissions from the Indian

cement industry are projected to reach between

488 MtCO2 (Low-Demand Case) and 835 MtCO2 (High-

Demand Case) by 2050.

u The technologies, policy frameworks and investment

needs outlined in this roadmap could limit the potential

increase of CO2 emissions to between 275 MtCO2 and

468 MtCO2 by 2050.

u The milestones set out in this roadmap for the Indian

cement industry would enhance energy security

by saving between 377 petajoules (PJ) and 485 PJ

of energy in 2050 compared to a business-as-usual

scenario.

u Key levers to reduce emissions in the Indian cement

industry are: increased rates of blending and

alternative fuel/raw materials (AFR) use, widespread

implementation of waste heat recovery (WHR)

systems and a radical step change in new technology

development.

u To ensure widespread deployment and implementation

of such technologies in the future, social acceptance,

political will and policy development, and financial

mechanisms, must be supportive.

u The additional investment required to reach emissions

reduction envisioned in this roadmap is between

USD 29 and USD 50 billion (INR 145 000 crore and

INR 250 000 crore), or 15% to 25% higher than in a

business-as-usual scenario. Such investments need to

be designed effectively and put in place at the early

design stage of a new cement plant.

Key actions in the next ten years

Decisive action by all stakeholders is critical to realise the vision laid out in this roadmap. To achieve the envisioned levels of efficiency improvements and emissions reduction, government and industry must take collaborative action to create an investment climate that will stimulate the scale of financing required. In particular:

u Intensify collaboration between stakeholders and among the international community to drive implementation of best available technologies and existing know-how, and to share experience and knowledge.

u Perform cement plant level assessments to analyse how low-carbon technologies can be implemented at the manufacturing facility level, and develop action plans to increase the speed and scale of implementation.

u Ensure proper legislation, regulations and standards are in place to enable increased use of clinker substitutes and to support the use of AFR in cement kilns.

u Address public and market barriers for co-processing1 and AFR use through modified regulation, awareness-raising campaigns, industry training and education.

u Expand public awareness, international collaboration and financing for demonstration of carbon capture and carbon use for example through algal growth for carbon sequestration at cement plants. Globally, approaches to facilitate carbon capture and storage (CCS) demonstration must be elaborated.

u Ensure sustained funding and support mechanisms are in place to support the development and deployment of new or alternative technologies, such as nanotechnology and geopolymer cement, which offer the potential for CO2 emissions reduction. Provide a major thrust in R&D to move through pilot to demonstration phases to widespread deployment.

u Facilitate widespread adoption of already-established low carbon technologies through financial mechanisms which channel adequate and predictable long-term finance to the industry in the form of CO2 abatement revenues or up-front blended finance. All mechanisms should help accelerate the adoption of low carbon technology.

1. Co-processing is the use of suitable waste materials, generated by society or industry, in manufacturing processes, as a substitute for fossil fuel or natural raw materials.

-400

-300

-200

-100

0

100

200

Total potential energy savings from all levers Energy required for carbon capture Electrical efficiency and WHR Thermal efficiency Clinker substitutionP

eta

jou

les

0

100

200

300

400

500

600

2010 2015 2020 2025 2030 2035 2040 2045 2050

MtC

O2

Alternative fuels (10%)

Energy efficiency (4%)

Clinker substitutes (45%)

CCS (41%)

6DS: 488 MtCO2

Opportunities

for CO

emissions

reductions

2

2DS: 275 MtCO2

Contribution of different levers that could lead to energy savings in the Low-Demand Case

Roadmap action plan and milestones:

CO2 emissions reduction potential between the 6oC Scenario (6DS, or business-as-usual scenario) and 2oC Scenario (2DS) from different technology options in the Low-Demand Case

Note: From the five levers considered – AFR, thermal and electrical efficiency, clinker substitution, WHR, and new technologies and CCS – only three will play a role in restraining the growth in energy consumption in the Indian cement industry. AFR is not expected to reduce energy consumption, new or alternative technologies such as nanotechnology or geopolymer cement are not expected to be commercially available by 2050, and CCS is likely to increase energy use.

Note: Total savings between the 6DS and 2DS amount to 212 MtCO2.

Alternative fuel and raw materials

Implement appropriate policies and practices to facilitate increased use of AFR, and address public and market barriers for co-processing of AFR

Identify and classify suitable materials for AFR use Further analysis to identify the right feed point for any specific AFR material and enforce quality control systems for AFR materials used

Disseminate information on existing AFR best practices and R&D already undertaken, including identification and mitigation of risks

Thermal and electrical energy efficiency

Ensure financial support and incentives are in place to enable major retrofits in older cement plants. Eliminate energy subsidies that can act as barriers to implementation

Sustain funding to move from pilot to demonstration for fuel cell technologies, futuristic communition technologies and new types of low-carbon cement

Gather reliable industry-level energy and emissions data to track performance, identify benchmarks and set targets

Clinker substitution

Develop standards and implement regulation for clinker substitutes, composite cement and Portland Limestone Cement Update and revise standards to account for new blending sources

Continuous R&D to allow increased availability, and ensure quality of blending materials and clinker substitutes

Conduct R&D to enhance lime reactivity of dump ash/pond ash, activation of granulated slag, and to prove viability of blending materials from non-ferrous industries and mineral processing industries

Waste heat recovery (WHR)

Further R&D to support the maximization of power generation from WHR systems R&D to decrease investment costs and promote the use of appropriate technology

Ensure attractive financial incentives to enable widespread implementation of WHR

Carbon use and CCS

R&D to support the use of CO2 for algal growth at cement plants Commercialisation of CO2 use for algae growth

Oversee a near-term approach to facilitate development and finance for demonstration of carbon capture and storage technologies

Participate in the demonstration of a full-scale post-combustion cement plant and development of a pilot oxy-fuelled cement plant Participate in the demonstration of a full-scale oxy-fuelled cement plant Continue to accelerate commercial deployment of CCS

2012 2015 2020 2025 2030 2035 2040 2045 2050

Key indicators for Indian cement industry to reach 2DS

Low-Carbon Technology for the Indian Cement Industry

RO

ADMAP INSIGHTS

Additional investments required to reach the CO2 emissions in the 2DS from the 6DS (business-as-usual scenario) in India

Partners’ rolesEstimated cement production in the Low- and High-Demand Cases

Progress indicator for share of alternative fuels and raw materials (AFR) in thermal energy use

Projected cement production in India

Progress indicator for specific intensity of electrical requirements (excl. potential from WHR)

Projected cement production globally

Progress indicator for specific intensity of thermal heat requirements

Progress indicator for clinker-to-cement ratio

Progress indicator for additional electricity generated through WHR at cement plants

Progress indicator for carbon captured by global and Indian cement industry

This information accompanies the Technology Roadmap: Low Carbon Technology for the Indian Cement Industry, available at www.iea.org and www.wbcsdcement.org/india-tech-roadmap.

1% 5%

19% 24%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2010 2020 2030 2040 2050

Global average

India

0

200

400

600

800

1 000

1 200

1 400

1 600

2010 2015 2020 2025 2030 2035 2040 2045 2050

Millio

nto

nn

es

of

cem

en

t

Low-Demand Case

High-Demand Case

Global average

India

2010 2020 2030 2040 2050

725

709

694

685

680

650

700

750

800

850

900

950

kCal/

kgcl

inke

r

80

75

72

71

70

60

70

80

90

100

110

2010 2020 2030 2040 2050

kWh

/tce

men

t

Global average

India

0

1 000

2 000

3 000

4 000

5 000

6 000

2010 2020 2030 2040 2050

Low-DemandCase

High-DemandCase

Mill

ion

ton

nes

ofce

men

t

Africa and Middle East

Non-OECD Europe and Eurasia

Latin America

Other developing Asia

China

India

OECD

Global average

India

0.74

0.700.64

0.600.58

0.50

0.55

0.60

0.65

0.70

0.75

0.80

0.85

2010 2020 2030 2040 2050

Clin

ker-

to-c

em

en

tra

tio

0

100

200

300

400

500

600

700

800

900

2010 2015 2020 2025 2030 2035 2040 2045 2050

MtC

Oca

ptu

re2

India Low-Demand Case

India High-Demand Case

Global Low-Demand Case

Global High-Demand Case

Note: Potential for electricity generated through WHR is not assessed at the global level, so a global comparison is not possible.

0

2 000

4 000

6 000

8 000

10 000

12 000

2010 2015 2020 2025 2030 2035 2040 2045 2050

GW

h

Low-Demand Case

High-Demand Case

Identifying and sharing best practices

Driving technology research and development (R&D)

Driving technology diffusion and widespread uptake

Establishing / enhancing supportive institutional structures

Collecting, monitoring and assessing performance data

Alternative fuel and raw materials

Leadership role and direct involvement

Industry; suppliers; associations

Industry; suppliers; government; universities; research

Industry; suppliers; associations

Industry; suppliers; government; universities; research; associations

Industry; universities

Funding source Suppliers; government

Industry; suppliers; government

Suppliers Government

Thermal and electrical energy efficiency

Leadership role and direct involvement

Industry; suppliers; government; research; associations

Industry; suppliers; universities; research

Industry; suppliers; associations

Industry; suppliers; government; universities; research; associations

Industry; government; research; associations

Funding source Suppliers; government

Industry; suppliers; government

Industry; suppliers; government

Government

Clinker substitution

Leadership role and direct involvement

Industry; suppliers; research; associations; standards agencies

Industry; suppliers; universities; research; standards agencies

Industry; suppliers; associations; standards agencies

Industry; suppliers; government; universities; research; associations; standards agencies

Industry; universities; research; associations; standard

Funding source Industry; government

Industry; government

Industry

Waste heat recovery (WHR)

Leadership role and direct involvement

Industry; suppliers; associations

Industry; suppliers; universities; research

Industry; suppliers; associations

Industry; suppliers; government; universities; research; associations

Industry; universities; associations

Funding source Industry; suppliers; government

Government; industry

Industry

New technologies including CCS

Leadership role and direct involvement

Industry; suppliers; research; associations

Industry; suppliers; universities; research

Industry; suppliers; research; associations

Industry; suppliers; government; universities; research; associations

Industry; universities; research; associations

Funding source Industry; suppliers; government

Government; suppliers

Industry

Captive power plant (CPP)

Leadership role and direct involvement

Industry; suppliers; associations

Industry; suppliers; universities; research

Industry; suppliers; associations

Industry; suppliers; government; universities; research; associations

Industry; universities; associations

Funding source Industry; suppliers; government

Government

Note: Industry = cement industry in India; suppliers = equipment suppliers; government = Government of India; associations = industry associations; research = research institutions; universities = universities and academic institutions.

Low-Demand Case

USD billion 2010-20 2020-30 2030-40 2040-50 2010-50

New kilns and refurbishments 3 to 4 1 1 1 6 to 7

Clinker substitution 0.1 0.2 0.1 0.1 0.5 to 0.6

Alternative fuels 3 2 1 0 6 to 6

Carbon capture 0 3 6 8 to 9 17 to 19

Total 6 to 7 5 8 10 29 to 32

High-Demand Case

USD billion 2010-20 2020-30 2030-40 2040-50 2010-50

New kilns and refurbishments 4 to 5 0 -2 to -3 -1 1 to 0

Clinker substitution 0.1 0.2 0.1 to 0.2 0 0.4 to 0.6

Alternative fuels 3 to 4 4 3 2 12 to 13

Carbon capture 1 5 11 to 13 16 to 17 33 to 36

Total 8 to 9 9 to 10 13 to 13 17 to 18 46 to 50

Notes: In a High-Demand Case, the savings from increased used of clinker substitutes will offset the additional investments required for new plants.

Additional investments are analysed for options that could lead to a reduction in direct CO2 emissions in the cement production process. As such, this excludes waste heat recovery (WHR). Investments for WHR are estimated at approximately INR 80 to INR 100 million per megawatt hour (USD 1.6 to USD 2 million).

Reductions from captive power plants (CPP) are not included in the modelling of potential emissions reduction in this roadmap, but it should be noted that current investment requirements are approximately INR 5 crore (USD 1 million) per megawatt.