Download - Decarbonisation of Indian industry
Decarbonisation of Indian industry
Rangan Banerjee
February 26, 2020, IIT Bombay
Department of Energy Science and Engineering
IIT Bombay
India and World (Selected Indicators for 2017)
2
Population 1339 million [1] 7548 Million [1]
GDP (PPP) 9474 Billion 2010 US$ (7075 $/person) [2] 127800 Billion 2010 US$ (16931 $/person) [2]
Primary Energy 37 EJ 585 EJ
Energy/person 27.6 GJ/person/year 77.5 GJ/person/year
Electricity/person 1000 kWh/capita/year 3200 kWh/capita/year
CO2 emissions 2162 Million tonnes 32 840 Million tonnes
CO2/Per population 1.6 tonnes /capita/year 4.4 tonnes /capita/year
CO2/GDP (PPP) 0.30 kg /2010US$ 0.30 kg /2010US$
Energy use in industry 34.1 % 27.1 %
Data Source: IEA
Energy Balance for India-2017 (Sankey Diagram)
All values are in Exa Joule (EJ)
Data Source: IEA
Scope for improvement?
4
Source: Rosen, GEA
Specific Energy consumption of various industries in India (in comparison with World’s Best)- 2017
80
100
120
140
160
180
200
220
Cement (Clinker) Cement (Cement) Iron and Steel (BF-BOF) Aluminium Chemicals (Urea) Chemicals (Ammonia)
World avg India avg India best
GJ/t
2.8
kWh/t
76
64
29.7
23.7
14.1 14.4
24.8
21.6
34.9
GJ/t
MWh/t
kJ/tkJ/t
World Best
3.6
3.1
105
18.8
30
Data source: [4]- [22]
2.8 56 14.8 13.6 20.9 28.8
Underlined values indicate “World Best”
Source wise energy consumption in industries (2015-16) (PJ)
0
500
1000
1500
2000
2500
Energy industries Iron, steel and ferroalloys Non-ferrous metals Chemicals and fertilizers Cement Others
Coal Gaseous fuel Petroleum Products Electricity
Data source: Vaibhav G. et al (2019), CEEW [23]
Industrial Energy consumption by energy source -2017
Coal, 44%
Electricity, 19%
Biofuels, 16%
Oil products,
15%
Natural gas, 6%
Total industrial energy consumption = 9.1 EJ
Data Source: IEA
31%
20%
26%
13%
4%
2%
2% 1% 1%
Electricity
Electricity in Industries
Industry
Transport
Residential
Agriculture
Other Energy Industries
Commercial and public services
Final consumption not elsewherespecified
Sector wise CO2 emissions - India (2017)
Data source: IEA
Total CO2 emissions = 2162 MT
CO2 emissions by sector and fuel mix- 2017
Industry Specific CO2 emissions CO2 emissions (million tonnes)
India average World average
Iron and Steel 2 tCO2/t crude steel [24] 1.1 tCO2/t crude steel [24]
242 [26]
Cement 0.67 tCO2/t cement [25] 0.9 t CO2/t cement [28] 194
Chemicals and Petrochemicals
~ 2 tCO2/t petrochemical product [24]
Fertilizer industry: 0.7 tCO2/t urea [27]
-- Fertilizer industry (from urea): 16.94 [27]
Source wise CO2 emissions in different industries (2015-16)
0
50
100
150
200
250
300
Energy industries Iron, steel and ferroalloys Non-ferrous metals Chemicals and fertilizers Cement Others
MT
of
CO
2 e
q.
Coal Gaseous fuel Petroleum Products Electricity
Data source: Vaibhav G. et al (2019), CEEW [23]
CO2 emissions from different industries – India (MT CO2eq)
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Iron and Steel Chemicals Non-ferrous Metals Non-metallic minerals Refining + manufacture of solid fuels, Other energy Industry Others
Data Source: Gupta, V et al (2019), CEEW [29]
Options for Industry
• Energy Efficiency, Benchmarking (Cogeneration, Process Integration)
•Resource Efficiency- alternative raw materials
•Greening the mix – Solar PV, Solar thermal, Biomass, Waste to Energy
•Product Efficiency, Recycling
•Next Generation Processes
•Carbon Capture and Storage
12
Textile Manufacturing
Solar Air Heaters
Solar Steam Generators
Raw Material (Cotton etc.)
Yarning (Hot air)
Weaving (Steam)
Yarn Drying (Steam)
Cloth Processing
Image source: [30] , [31] , [32]
Biomass
Note: Processes indicated In orange need heat input in some form
13
Image Source: [33]
Case Study: Frontier Knitters Private Limited (Tirupur, India)
14
Case Study: Frontier Knitters Private Limited (Tirupur, India)
ATE group:
Rooftop Compound Parabolic Collector: 80-120
⁰C. Integrated with existing fuel fired boiler
Savings: 22 litres of diesel/day
Carbon emissions reduction: 17 tonnes/year
Payback Period: <3 years
15Data source: [34]
Biomass Gasifiers
16
Source: Cosmo Powertech Pvt. Ltd, Raipur
Gasifier efficiency 75%Biomass calorific value
3400 kcal/kgProducer gas burner
efficiency 70%Temps upto 1000 C
Applications: Steel Rerolling, Aluminium Melting, Dryers, Kilns, Textiles, Agro-processing
Case Study Mahananda Dairy
17
1 MW Solar Thermal Power Plant
18
• Not feasible to define a single norm/standard unless there is significant homogeneity amongst units in a sector
• Energy efficiency improvement targets would have to be almost “unit specific”
• Bands of differential targets to be created within sectors
• Each DC mandated to reduce its SEC by a fixed percentage, based on its current SEC within the sectoral bandwidth
Setting Energy Consumption Norms
Source: DG BEE presentation
PAT Scheme
20
Improving energy efficiency for industries in India: PAT Scheme
• NMEEE-one of the eight missions under the National Action Plan on Climate Change (NAPCC)
• Perform, Achieve and Trade (PAT) – A market based mechanism to enhance cost effectiveness of
improvements in energy efficiency in energy-intensive large industries and facilities, through certification of
energy savings that could be traded.
• Reductions in specific energy saving targets are assigned to Designated Consumers (DCs) for a three year
cycle. PAT Cycle No. of DCs included Energy saving target
PAT Cycle-I (2012-13 to 2014-15)
478 DCs from 8 energy intensive industry sectors
280 PJ (at the end of 2014-15)
PAT Cycle –II (2016-17 to 2018-19)
621 DCs from 11 energy intensive industry sectors
371 PJ (at the end of 2018-19)
PAT Cycle –III (2017-18 to 2019-20)
116 new DCs included 44 PJ (at the end of 2019-20)
Data source: [35], [36] 21
Sector Minimum annualenergy consumptionfor the DC (PJ)
No. of DCs
Annual Energy Consumption (PJ)
Energyreduction Target (PJ)
Achievements/Savings (PJ)
Aluminium 0.3 10 322.8 19.1 30.6
Cement 1.3 85 628.4 34.1 62
Chlor-alkali 0.5 22 36.8 2.3 3.8
Fertilizer 1.3 29 343.3 20.0 32.7
Iron and Steel 1.3 67 1060.1 62.2 87.9
Paper and Pulp 1.3 31 87.5 5 12.1
Thermal Power Plants 1.3 144 4377.7 134.4 128.1
Textile 0.1 90 50.2 2.8 5.4
Achievements under PAT Cycle-1 (2012-13 to 2014-15)
Data source: [35], [36] 22
Escert trading
23Source: IEX 2018
Total1.3 MillionTOE
PriceRs 200 to 1200 per Tonne
All sectors From industry sector
Overall annual Energy consumption for all DCs
6907 PJ 2529 PJ
Overall Energy Savings Target (at the end of 2014-15)
280 PJ 145.5 PJ
Actual Energy savings achieved 363 PJ (30% over achievementof the target)
234.5 PJ (61% over achievement of the target)
CO2 emissions avoided (from all sectors)
31 million tonnes
Monetary savings (from all sectors)
Rs 9500 crore (approx.)
Achievements under PAT Cycle-1 (2012-13 to 2014-15)
Data source: [35], [36] 24
Cement Industry- Some examples of Use of Alternative fuels
Company/Plant Alternative fuel/raw material used Benefits
Madras Cement's Alathiyur plant Bioenergy use through burning of coffee husk & cashew nut shells
Annual cost savings of US$ 1.7 million
India Cements Ltd's Dalavoi plant Use of Low Sulphur Heavy Stock (LSHS) sludge as alternate fuel
Annual savings of US$ 6,500 approx.
UltraTech's Gujarat CementWorks
Use of tyre chips & rubber dust as alternate fuel
Reduction of about 30,000tonnes of carbon emissionsAnnually
Lafarge's Arasmeta plant Substitution of 10 per cent of coal used in kilns with rice husk
Higher energy savings and lower carbon emissions
Data source: [37] 25
Company name
Industry Type
Company providing CCS Technology
CCS Technology
Plant Capacity and CO2 fate
Operational from
Plant location
Exis
tin
g P
lan
ts
Indo Gulf Corporation Ltd [38]
Chemical (Fertiliser)
Fluor Amine-based
150 TPD(Captured CO2
utilised to manufacture urea)
1988 Jagdishpur, Uttar Pradesh
Indian Farmers Fertiliser Co-Operative (IFFCO) [39]
Chemical (Fertiliser)
Mitsubishi Heavy Industries (MHI)
Amine-based
450 TPD(Captured CO2
utilised to manufacture urea)
2006 Aonla, Uttar Pradesh
Indian Farmers Fertiliser Co-Operative (IFFCO) [40]
Chemical (Fertiliser)
Mitsubishi Heavy Industries (MHI)
Amine-based
450 TPD(Captured CO2
utilised to manufacture urea)
2006 Phulpur, Uttar Pradesh
CCS in Indian Industries
26
Company name Industry Type
Company providing CCS Technology
CCS Technology
Plant Capacity and CO2 fate
Operational from
Plant location
Exis
tin
g P
lan
ts
Nagarjuna Fertilizers and Chemicals Limited [44]
Chemical (Fertiliser)
Mitsubishi Heavy Industries (MHI)
Amine-based
450 TPD(Captured CO2
utilised to manufacture urea)
2009 Kakinada, Andhra Pradesh
National Fertilizers Limited [44]
Chemical (Fertiliser)
Mitsubishi Heavy Industries (MHI)
Amine-based
450 TPD(Captured CO2
utilised to manufacture urea)
2012 Vijaipur, Madhya Pradesh
Tuticorin Alkali Chemicals and Fertilizers Limited [41]
Chemical (Fertiliser)
Carbon Clean Solutions Pvt. Ltd. (CCSL)
Amine-based
~ 200 TPD(Captured CO2
utilised to manufacture baking soda)
2016 Tuticorin, Tamil Nadu
CCS in Indian Industries
27
Company name Industry Type
Company providing CCS Technology
CCS Technology
Plant Capacity and CO2
fateOperational from
Plant location
Up
com
ing
Pla
nts
IOCL-ONGC [42] Refinery (Petrochemicals)
N/A N/A N/A(Captured CO2 from IOCL refinery to be used for EOR at ONGC)
--(announcement in July 2019)
N/A
Dalmia Cement (Bharat) Limited [43]
Cement Carbon Clean Solutions Pvt. Ltd. (CCSL)
Amine-based
~ 1667 TPD --(announcement in Sep. 2019)
Tamil Nadu
CCS in Indian Industries
N/A- Not available 28
Details about CCU facility at IFFCO’s Aonla plant
Source: [45]
Investment: Rs 700 Million
Annual CO2 savings 137,800 tonnes
Rs 595/tonne 2006=12 US $/tonne of CO2
29
MHI’s KM CDR process® using KS-1™ (proprietary) amine based solvent
Source: [46] 30
Future of Indian Industries
Industry Current CAGR (production)
Expected future CAGR (production)
Current Production (2017)
Future Production (2050)
Current CO2
emission intensity (2017)
Future CO2
emission intensity (2050)
Current CO2
emissions(2017)
CO2
emissions(2050)
Cement 5% 6-7% [47] 290 MT 2229 MT (approx.)
0.67 tCO2/t cement
0.35 tCO2/t cement in 2050 [50]
194 MT 275 – 468 MT CO2 [50]
Iron and Steel
5.43% 5% [48] 66 MT (Pig Iron) 101 MT (Raw steel)
557 MT steel (approx.)
2 tCO2/t crude steel
0.7 tCO2/t crude steel (for gas based) [51]
242 MT 721-837 MT CO2 [51]
31
Energy, Carbon Scenarios for Indian industry
32
9.1
14.9
21.819.4
34.8
0
5
10
15
20
25
30
35
40
2017 2030 2040
FrozenEfficiency
1334
1951
813
1734
3105
0
500
1000
1500
2000
2500
3000
3500
2017 2030 2040
All values are inmillion tonnes
India’s total Industrial Energyconsumption scenarios incomparison with current value(2017)
GVA growth in Industries in comparison with current value
(2017)
India’s total Industrial CO2 emission scenarios in comparison with current
value (2017)
Global Marginal Abatement Curves
33Source: Mckinsey (2009) Pathways to a Low Carbon Economy
Cement Iron and Steel
Summary
• Industry-Energy and carbon emissions- about one third of total
• Significant potential for decarbonisation
• Options include – Energy efficiency, Renewables, CCUS, New Processes, Recycling, Product Design, Dematerialisation
• Energy – affects competitiveness – reductions in intensity – many industries near BAT- wide range of SEC
• Carbon emissions – not yet a driver for industry- new metrics
• Technology demonstrations – for most technologies
• Strategic consortia – targeted technology pilots and R&D
• Enhance future competitiveness
• Need for transparent assessment, roadmap, voluntary targets
• Mission mode co-ordinated Govt-industry-academia projects
34
References
1. World Population, Worldometer, https://www.worldometers.info/world-population/
2. World GDP, Index Mundi, https://www.indexmundi.com/g/g.aspx?v=65&c=xx&l=en
3. International Energy Agency, www.iea.org
4. U.S. Geological Survey, Mineral Commodity Summaries, February 2019, https://prd-wret.s3-us-west-2.amazonaws.com/assets/palladium/production/atoms/files/mcs2019_all.pdf
5. Enhancing Energy Efficiency through Industry Partnership (Outcome and Way Forward), Performa Achieve and Trade, Report by BEE, in partnership with GIZ, September 2018, https://beeindia.gov.in/sites/default/files/press_releases/Consolidated%20Report.pdf
6. Chemical and Petrochemical Statistics at a Glance – 2018, Statistics and Monitoring Division, Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, Government of India. https://chemicals.nic.in/sites/default/files/Chemical%20and%20Petrochemical%20Statistics%20at%20a%20glance%20_2018.pdf
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8. Indian Non-ferrous metals industry: Way forward, February 2018, Report by FICCI, http://ficci.in/spdocument/22947/Non-Metal-Report.pdf
9. Status Paper on AFR usage in Indian cement industry, An initiative by CII-CMA, May 2015, https://shaktifoundation.in/wp-content/uploads/2015/09/AFR_Status.pdf
10. Annual report 2017 – 18, Ministry of steel 2018, https://steel.gov.in/sites/default/files/annual_Report_E_07March2018.pdf
11. JFE Group CSR report for 2016, http://www.jfe-holdings.co.jp/en/csr/pdf/csr2017e.pdf
12. Marketwatch, Sep 2019, https://www.marketwatch.com/press-release/iron-steel-market--to-grow-at-a-cagr-of-51-through-2019-2025-2019-09-11?mod=mw_quote_news
13. Cement Production & percentage change (Apr-Nov), Cement Manufacturers association, https://www.cmaindia.org/cement-industry/overview/cement-outlook/
14. IBEF Report on Steel, Jan 2019, https://www.ibef.org/download/steel-jan-2019.pdf
15. FICCI, Nov 2019, http://www.ficci.in/ficci-in-news-page.asp?nid=19209
References (continued…)
16. Benchmarking Report for the Cement Sector, 2014, Report by UNIDO, https://www.unido.org/sites/default/files/files/2019-05/Benchmarking%20Report%20Cement%20Sector.pdf
17. Technology Compendium On Energy saving Opportunities: Iron & Steel Sector, August 2013, Report by Shakti Foundation and CII, http://www.indiaenvironmentportal.org.in/files/file/iron_steel.pdf
18. Benchmarking Report for the Iron and Steel Sector, 2014, Report by UNIDO, https://www.unido.org/sites/default/files/files/2019-05/Benchmarking%20Report%20Steel%20Sector.pdf
19. Non-ferrous metals industry: Building the future, Report by KPMG, Sep 2017, http://award.mtlexs.com/wp-content/uploads/2017/09/Non-ferrous_metals_industry_-_Building_the_future_Final__Web_.pdf
20. Improving efficiency in Aluminium sector: Achievements and Way forward, Report by BEE and GIZ, Sep. 2018, https://www.keralaenergy.gov.in/files/Resources/Aluminium_Sector_2018.pdf
21. Primary Aluminium Smelting Energy Intensity, Data from World Aluminium, http://www.world-aluminium.org/statistics/primary-aluminium-smelting-energy-intensity/
22. Improving efficiency in Fertilizer sector, Achievements and Way forward, Report by BEE and GIZ, Sep 2018, https://www.keralaenergy.gov.in/files/Resources/Fertilizer_Sector_Report_2018.pdf
23. Gupta Vaibhav, Tirtha Biswas, Deepa Janakiraman, Adil Jamal and Karthik Ganesan, May 2019, Industrial Energy Use and Emissions Database, New Delhi: Council on Energy, Environment and Water.
24. Sustainable Manufacturing for India’s Low-carbon Transition: Four Bets for Hard-to-abate Sectors, Sep 2019, https://www.ceew.in/sites/default/files/CEEW%20-%20Sustainable%20manufacturing%20in%20a%20low-carbon%20economy%2024Sep19.pdf#overlay-context=
25. Low Carbon Technology Roadmap for the Indian Cement Sector: Status Review 2018, Report by World Business Council for Sustainable Development, https://docs.wbcsd.org/2018/11/WBCSD_CSI_India_Review.pdf
26. Towards a low carbon steel sector: Overview of the Changing Market, Technology, and Policy Context for Indian Steel, Report by TERI, 2020, https://shaktifoundation.in/wp-content/uploads/2020/01/Towards-a-Low-Carbon-Steel-Sector-Report.pdf
References (continued…)27. Indian urea plants comparable to the best worldwide: Study, Down To Earth, June 2019, https://www.downtoearth.org.in/news/energy-efficiency/indian-urea-plants-comparable-to-the-
best-worldwide-study-64904
28. Cement industry reducing carbon footprint, Telangana Today, Feb 2020, https://telanganatoday.com/cement-industry-reducing-carbon-footprint
29. Gupta, V., Biswas, T., Janakiraman, D., Ganesan, K., (2019). Greenhouse Gases Emissions of India (subnational estimates): Manufacturing Sector (2005-2015 series) dated September 19,2019, Retrieved from: http://www.ghgplatform-india.org/industry-sector
30. https://mnre.gov.in/file-manager/akshay-urja/june-2017/Images/38-40.pdf
31. http://www.cliquesolar.com/#
32. https://www.energy.gov/eere/bioenergy/biomass-resources
33. http://ategroup.com/energy-efficiency-solutions/product-family/product-description/compound-parabolic-concentrator-cpc/
34. http://ategroup.com/wp-content/uploads/case-studies/CS1702-Process-heating-with-solar-thermal-in-textile-industry_0.pdf
35. PAT cycle, https://beeindia.gov.in/content/pat-cycle,
36. Achievements under PAT, May 2017, Bureau of Energy Efficiency, Ministry of Power, Government of India,https://beeindia.gov.in/sites/default/files/Booklet_Achievements%20under%20PAT_May%202017.pdf\
37. IBEF Report on Cement, October 2019, https://www.ibef.org/download/Cement-October-2019.pdf
38. http://www.zeroco2.no/projects/jagdishpur-india.-urea-plant
39. http://www.zeroco2.no/projects/aonla-urea-plant-india.-indian-farmers-fertiliser-co-operative-ltd
40. http://www.zeroco2.no/projects/phulpur-urea-plant-india.-indian-farmers-fertiliser-co-operative-ltd
41. https://www.theguardian.com/environment/2017/jan/03/indian-firm-carbon-capture-breakthrough-carbonclean
42. https://www.ongcindia.com/wps/wcm/connect/en/media/press-release/ongc-join-hands-oil-recovery
43. https://www.dalmiabharat.com/dcbl-carbon-capture-plant.html
44. https://www.mhi.com/products/environment/carbon_dioxide_recovery_process_commercial.html
References (continued…)45. https://www.mhi.com/products/environment/carbon_dioxide_recovery_process_commercial.html
46. Update of the deployment of KM CDR process, Sep. 2015 , Presentation by Takashi Kamijo, Mitsubishi Heavy Industries, Ltd.,https://ieaghg.org/docs/General_Docs/PCCC3_PDF/1_PCCC3_6_Kamijo.pdf
47. Low Carbon Technology Roadmap for the Indian Cement Sector: Status Review 2018, Report by World Business Council for Sustainable Development,https://docs.wbcsd.org/2018/11/WBCSD_CSI_India_Review.pdf
48. Marketwatch, Sep 2019, https://www.marketwatch.com/press-release/iron-steel-market--to-grow-at-a-cagr-of-51-through-2019-2025-2019-09-11?mod=mw_quote_news
49. FICCI, Nov 2019, http://www.ficci.in/ficci-in-news-page.asp?nid=19209
50. Technology Roadmap: Low-Carbon Technology for the Indian Cement Industry, Report by WBCSD and IEA, 2013,http://www.indiaenvironmentportal.org.in/files/file/cement_in_india_roadmap.pdf
51. Towards a low carbon steel sector: Overview of the Changing Market, Technology, and Policy Context for Indian Steel, Report by TERI, 2020,https://shaktifoundation.in/wp-content/uploads/2020/01/Towards-a-Low-Carbon-Steel-Sector-Report.pdf
Acknowledgement
39
Balkrishna SurveSenior Project Assistant,
DESE, IIT Bombay
Thank [email protected]
Srinath Haran IyerPhD student, IDP Climate
Studies, IIT Bombay
Nishant BhardwajProject Engineer, DESE, IIT Bombay