petcoke in cement industry_global cement conference_mumbai
TRANSCRIPT
Petcoke in Cement Industry
Srinivasan Raman
Essar Oil Limited
2
Essar Group – A Global Diversified Conglomerate
75,000 people
25 countries worldwide
$ 27.3 Billion revenue
(FY12)
Presence inOil & GasPowerSteelPorts
ProjectsShippingBPOTelecom services
Scale & Diversity
Essar at a Glance
International Footprint
Essar Oil & Gas – Overview
Petcoke
Government administered prices for coal and natural gas are lower than market prices
Petcoke Advantage
Strengths Weaknesses
Sulphur
Metals
Hardness
Cheap
High GCV
• High carbon → higher calorific value• High fixed carbon → higher combustion time• Lower volatile matter → difficult to ignite• Lower ash → less waste disposal• High sulphur → increased corrosion &
pollution
Petcoke
• Very low carbon → very low calorific value• Very low fixed carbon → lower combustion
time• High volatile matter → easier to ignite• Very high ash → heat loss, disposal problem• Low sulphur → lower corrosion & pollution
Dom. coal
Challenges
Petcoke in Global Cement Industry
World Europe
• Petcoke is the preferred fuel of choice for the Global cement industry after coal and lignite• Petcoke is by far the preferred fuel of choice for European cement industry• Cement industry is the largest consumer of petcoke in India (3.7 million tons per annum)• Technology to use petcoke in cement plants is mature and easily available
Petcoke in Global Cement
Challenges & Solutions
Issue Description Modification Required
HGI Petcoke is harder than coal and is more difficult to grind. Finer grinding is required to increase surface area, as volatile matter is lower.
Depends on the existing coal grinding mill. If the coal mill can grind petcoke with minor
modifications, then the cost will be lower. Otherwise a new Vertical Roller mill will be required.
Volatile Matter Petcoke has lower volatile matter and hence more difficult to burn.
Finer grinding improves burning. Increasing the flame momentum helps to improve
burning. This is achieved by installing a Higher capacity blower in place of the primary air fan.
Fixed Carbon Petcoke has higher fixed carbon and needs more residence time to burn completely.
Introduce petcoke feed in the precalciner to facilitate complete combustion
Increasing the height of existing precalciner to allow higher residence time
Ash As petcoke has lower ash, more raw feed will be required per unit of clinker.
Raw mix feed rate has to be changed
Oxygen requirement More oxygen is required for complete combustion
Provision of more secondary air
NOx Higher flame temperature increases NOx emissions
NOx control technologies if NOx levels are higher than regulated levels
Challenges & Solutions
Issue Description Modification Required
Clinker hardness Clinker becomes harder caused by longer burning zone.
Finish mills need more power to grind
Refractory damage Petcoke burning causes more refractory damage
Selective upgrading of refractory bricks and higher maintenance
Sulphur
Sulphur alkali ratio Due to higher sulphur, the sulphur alkali ratio in the feed is disturbed
Modification of the raw mix so that combinability temperature is reduced.
Sulphur cycle Sulphur volatilizes in the burning zone and condenses in the calcining zone
Bypass line might be required
Coating in riser duct Volatile compounds (formed by alkali with sulphur and chlorides in petcoke) condense and form a thick coating.
Refractory bricks can be replaced with Alumina-Zirconia-Silica or silicon carbide based castable which has low adherence property.
Challenges & Solutions
Modify raw mix to account for higher S & lower ash
Finer grinding of petcokeLarger blower for primary airMore secondary air
More grinding capacity
Refractory upgradeBypass line
Burning petcoke during precalcinationIncreasing precalciner height
Process Modifications
Financial Benefits
OPEX Savings
Base Case Petcoke in Kiln
Petcoke in Kiln & CPP
Total Energy Cost ($ K)
13,316 12,248 11,828
Saving % - 8% 11%
• Cement production is energy intensive• Energy cost is around 20% of sales• Any saving in energy cost boosts profits tremendously
Profit Improvement
% Revenue Basis
$ / MT Basis
Sensitivity Analysis
EBITDA compared to Base Case: $ 1.33 /MT Cement
Sensitivity Analysis
PAT compared to Base Case: $ 0.9 /MT Cement
Petcoke in India
Product• Relatively new in India• Mostly fuel grade
Supply• < 0.5 MMTPA to > 10 MMTPA in the
last decade• Addition of coker units to boost supply
Demand• < 0.5 MMTPA to > 10 MMTPA in the
last decade• Coal shortage boosting demand• Cement sector is the major user
Prices• Generally set relative to imported coal
prices
Supply & Demand
Regional Data
• New cokers to produce fuel grade petcoke
• Surplus in West to increase
• Fuel grade petcoke will be produced in East and South too by 2015
Refinery Coker Date
Paradip Q3 FY 2014
Mangalore Q1 FY 2014
Manali Q4 FY 2015
Production
Production• 1.8 million tons per annum petcoke production capacity
Storage• 2 silos with capacity of 1000 tons each• Open storage yard • Storage near rail siding
Logistics• 24 × 7 road loading• Integrated rake loading• Coastal loading facilities from Bedi port
Quality• Stringent quality control at all stages• State of the art quality control lab
Customer Service• Dedicated sales team for customer delight• Customized solution for converting from other fuels• Support in troubleshooting
Facilities
S.No Parameter Unit Limits
1 Moisture (ARB) % wt 8.0 max
2 Ash % wt 0.5 max
3 Volatile Matter % wt 8.0 min
4 Fixed Carbon % wt 85 min
5 Gross Calorific Value (ADB) Kcal/Kg 8,200 min
6 Sulphur % wt 4-7
7 HGI - 36 - 52
Specifications
Cost• Cheaper than many fuels on a calorific basis• Capture of entire calorific value of fuel leading to higher efficiency
Availability• Increasing supply• Reliable supplies from various refineries
Calorific Value• High net calorific value
Ash• Lower ash with no disposal problems• Lower abrasion
Handling• Lower quantity of fuel to be handled• Lower area required for storage• Non hygroscopic - doesn't absorb moisture• Lower handling and transportation losses
Benefits
Thank You