procurement strategies for alternative fuels mark mutter cement performance international, uk
Post on 17-Dec-2015
217 Views
Preview:
TRANSCRIPT
Procurement Strategies for Alternative Fuels
Mark Mutter
Cement Performance International, UK
Procurement Strategies for Alternative Fuels
• Introduction
• Alternative Fuels History
• Defining the relationship
• Pricing and relationship
• Longer term supply
• Supply chain developments
Alternative Fuels History
• Price driven development from both cement and waste industry
• Developments in the emissions trading schemes
• One-off incidents – e.g. animal meal
• Global reduction in CO2 emissions
Defining the relationship
• Cement industry and waste industry vastly different
♦ Cement – high margin, protected prices, stable
♦ Waste – lower margin, ever increasing legislation, unstable
• Cement industry : Waste = Profit
♦ Failed to understand waste industry
♦ Wanted all the gain
♦ Progressively lost out on volumes of waste
Defining the relationship
• Cement industry failed to consider the relationship
♦ Supplier or customer?
♦ Other outlets for waste industry
♦ Balance of power
♦ Availability to take waste
Defining the relationship
• From both parties require
♦ Credibility
♦ Reliability
♦ Understanding
♦ Commitment
Pricing and Relationship
• Treat the waste supplier as a customer
• Understand the economics
• Be up front with the costs of use
♦ Trials, plant, extra cleaning, laboratory testing
• What are the give aways?
• Build long term relationships
Long term strategies
• Production line of fuels
♦ 1 new fuel per year
♦ Replaces fuel or maintains revenue stream
• Awareness of fuel impact required
• Need to adapt to each new fuel
• Very resource intensive
Long term strategies
GRATE
KILN
PETCOKE
TDI
ANIMAL MEAL
SOLVENT
WASTE WATER
CARFRAG
SOLVENT
WASTE WATER
Long term strategies
Fuel Process Cost Handling Management
Animal meal Variable phosphate
Good NOx reduction
Negative but decreasing
Competition
Proven technology but fats in summer
Resource required to ensure supply
Solvent Good CV
Stabilized flame
Multiple points of injection
Negative but stable
Management of tank farm – safety and environment
In house supplier
Dependent upon chemical industry
Car frag CO creation good for NOx
Not good for build-up
Very negative Unsuitable feeding system from supplier
Good delivery schedule in place
Long term strategies
Fuel Process Cost Handling Management
Waste water Good NOx reduction
Higher fuel consumption
Slightly negative Same as solvent Simple – take what available
Refinery coke Caused high NOx
Highly negative but low volume
Simple – as per petcoke
Availability dependent upon refinery
Supply Chain Developments
• Strategic alliances
♦ Stabilisation of market
♦ Ties up availability
• Waste Processing companies
♦ Designer fuel using many waste sources
• Provides flexibility to all
• Reduces resource requirements
• Maintains revenue streams
• Waste Processing Model
PRODUCER PROCESSING CEMENT PLANT
• Waste Processing Model
WASTE PRODUCER PROCESSING CEMENT PLANT
Conclusions
• Need to overcome history
• Need to understand
♦ Business dynamics
♦ Economics
• Need to build portfolio of fuels
• Latest developments are for blended fuels through waste treatment companies
top related