31 - Future Developments in Cement

8/10/2019 31 - Future Developments in Cement

1/33

Future Developmentsby

Frank Gad

International Cement Production Seminar June 2002


2/33

What drives future

developments

Demand for VALUE CREATIONDemand for VALUE CREATION

and asustainable FUTUREand asustainable FUTURE


3/33

Value creation

NOPATCAPITAL EMPLOYED

NOPATCAPITAL EMPLOYED

WACC


4/33

What improves your NOPAT?

Higher sales price More volume Quality products Lower costs:

- fuel- electricity- man power - maintenance costs- raw material costs- training and systems

Higher sales price More volume Quality products Lower costs:

- fuel- electricity- man power - maintenance costs- raw material costs- training and systems


5/33

Key numbers for

1.0 m mtpy (3000mtpd) BASIS:105 KWH/MT, 700 KCAL/KG, .05 $/KWH, 40 $/

COAL @ 6500 KCAL/KG POWER COST 5.25 US $/MT FUEL COST 4.30 US $/MT

GROSS PROFIT 40.00 US $/MT LOSS PER 1 DAY STOP 120,000 US $/DAY LOSS PER 1 HOUR STOP 5,000 US $/HOUR

GAIN IN SAVING 10 KWH/MT 500,000 US $/YEAR

GAIN IN SAVING 20 KCAL/KG 123,000 US $/YEA

BASIS:105 KWH/MT, 700 KCAL/KG, .05 $/KWH, 40 $/COAL @ 6500 KCAL/KG

POWER COST 5.25 US $/MT FUEL COST 4.30 US $/MT

GROSS PROFIT 40.00 US $/MT LOSS PER 1 DAY STOP 120,000 US $/DAY LOSS PER 1 HOUR STOP 5,000 US $/HOUR

GAIN IN SAVING 10 KWH/MT 500,000 US $/YEAR

GAIN IN SAVING 20 KCAL/KG 123,000 US $/YEA

Example


6/33

Operating CostsUS $ / MT OF CEMENT

BASIS: .O5 US $/KWH, 105 KWH/MT,700 KCAL/KG, 40 US $/MT OF COAL @ 6,500KCAL/KG

RAW MATERIALS : 4.50 US $ / MT FUEL (700 KCAL/KG): 4.30 US $ / MT POWER (105 KWH/MT + DEMAND) : 7.40 US $ / M MANPOWER : 4.30 US $ / MT SPARES & SUPPLIES : 3.50 US $ / MT

TOTAL: 24.00 US $ / MT

BASIS: .O5 US $/KWH, 105 KWH/MT,700 KCAL/KG, 40 US $/MT OF COAL @ 6,500KCAL/KG

RAW MATERIALS : 4.50 US $ / MT FUEL (700 KCAL/KG): 4.30 US $ / MT POWER (105 KWH/MT + DEMAND) : 7.40 US $ / M MANPOWER : 4.30 US $ / MT SPARES & SUPPLIES : 3.50 US $ / MT

TOTAL: 24.00 US $ / MT

Example


7/33

Fuel & power usage on a

modern plant @ 300m2/mt FUEL CONSUMPTION POWER CONSUMPT QUARRY 0 KCAL/KG 0 KWH/MT

CRUSHERS 0 -- -- 2.5 -- -- PREBL.+TRANSP. 0 -- -- 1.5 -- -- RAW MILL DEPT. 0-100 -- -- 27.0 -- --

RAW MEAL SILO 0 -- -- 0.5 -- -- KILN FEED 0 -- -- 1.5 -- -- KILN & COOLER 690 ---- 20.0 -- -- COAL MILL 0 -- -- 2.5 -- -- CEMENT MILL 0 -- -- 32.0 -- -- PACK HOUSE 0 ---- 1.0 -- -- OTHER 0 ---- 2.5 -- -- TOTAL 690 KCAL/KG 90.0 KWH/MT

FUEL CONSUMPTION POWER CONSUMPT QUARRY 0 KCAL/KG 0 KWH/MT

CRUSHERS 0 -- -- 2.5 -- -- PREBL.+TRANSP. 0 -- -- 1.5 -- -- RAW MILL DEPT. 0-100 -- -- 27.0 -- -- RAW MEAL SILO 0 -- -- 0.5 -- -- KILN FEED 0 -- -- 1.5 -- -- KILN & COOLER 690 -- -- 20.0 -- -- COAL MILL 0 -- -- 2.5 -- -- CEMENT MILL 0 -- -- 32.0 -- -- PACK HOUSE 0 -- -- 1.0 -- -- OTHER 0 -- -- 2.5 -- -- TOTAL 690 KCAL/KG 90.0 KWH/MT

Example


8/33

Sustainable future

Respect for the environment(emission)

Safety (people) Limited resources (substitute fuel

and raw materials)

Respect for the environment(emission)

Safety (people) Limited resources (substitute fuel

and raw materials)


9/33

Usage of waste materials

in cement manufacturing SOLID WASTE BURNING (HOT-DISC) FLUID WASTE BURNING (OBA-BURNER) ADDING OF FLYASH TO CEMENT USE OF POZZOLAN USE OF SLAG USE OF INCINERATOR ASH USE OF BONEMEAL

SOLID WASTE BURNING (HOT-DISC)

FLUID WASTE BURNING (OBA-BURNER) ADDING OF FLYASH TO CEMENT USE OF POZZOLAN USE OF SLAG USE OF INCINERATOR ASH USE OF BONEMEAL


10/33

HOTDISCHOTDISC


11/33

Rotating Disc

Burning Material

Scraper

Inlet for:WasteHot Air Hot Raw Meal

AshesKiln Gases

Raw Meal

Cold Raw Meal Inlet

Waste InletTrimming withRaw Meal

Hot Combustion Air

Outlet for:Combustion GasesHot Raw Meal

Ashes


12/33

HOTDISCHOTDISC

E l l


13/33

HOTDISCHOTDISC ECONOMY FOR A 3600 MTPD CEMENT PLANT

Fuel Heat Value 6500 Kcal/kg fuel

Operating days per year 330 days

Kiln Fuel 310 Kcal/kg clinker

Calciner Fuel 430 Kcal/kg clinker

Total Fuel Consumption 740 Kcal/kg clinker

Hotdisc Fuel Substitution 215 Kcal/kg clinker (50% of calciner fuel)

Equipment price on installed basis (approx.) 720,000 EUR

Storage and feeding (semi automatic) approx. 700,000 EUR

Total investment 1,420,000 EUR

Example only

PAY BACK TIME = 0.8 YEARS BASED ON 40 EURO/T PRICE DIFFERENTIALPAY BACK TIME = 0.8 YEARS BASED ON 40 EURO/T PRICE DIFFERENTIAL


14/33

The environment

SO2, NOx, and CO VOCs, Dioxins/Furans, HCl,

heavy metals, etc. Dust emissions

Hazardous Waste Bypass Dust Regeneration of Dust Permitting Environmental Groups Public Pressure

SO2, NOx, and CO VOCs, Dioxins/Furans, HCl,

heavy metals, etc. Dust emissions

Hazardous Waste Bypass Dust Regeneration of Dust Permitting Environmental Groups Public Pressure


15/33

CO Reduction

Separate Air Calciner

Higher Retention Times Regenerative Thermal Oxidizer (RTO)

Feed High Carbon Component(s)Directly to Calciner

Separate Air Calciner

Higher Retention Times Regenerative Thermal Oxidizer (RTO)

Feed High Carbon Component(s)Directly to Calciner


16/33

SO 2 Reduction

DeSOx System

Lime Injection Gas Suspension Absorber (GSA)

Micromist ML System Wet Scrubber

DeSOx System

Lime Injection Gas Suspension Absorber (GSA)

Micromist ML System Wet Scrubber


17/33

Particulate emission reduction

Use of Baghouses

Ventless Cooler Systems Use of GSA Bypass System Heat Exchangers

Dust Recovery System

Use of Baghouses

Ventless Cooler Systems Use of GSA Bypass System Heat Exchangers Dust Recovery System


18/33

Safety

Safety during plant construction

Design safe plants Design for easy maintenance

Reduce local noise, dust, vibrations, etc Automate repetitive work (packing etc.)

Safety during plant construction

Design safe plants Design for easy maintenance

Reduce local noise, dust, vibrations, etc Automate repetitive work (packing etc.)


19/33

Capital employed

Built cement plants better, faster

and cheaper De-bottleneck existing plants

Improve efficiency (e-stocking,consultancy, training, systems, people)

Built cement plants better, faster

and cheaper De-bottleneck existing plants

Improve efficiency (e-stocking,consultancy, training, systems, people)

Example only


20/33

60

80

100

120

140

160

180

200

220

240

260

280

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Capacity (MTPD)

U S $ / M T P Y

LOW COST

NORMAL COST

RECENT JOBS

Total Installed Cost(Country specific)

Example only


21/33

Cost distribution

Typical cost distribution new plant

Mechanical 36 %Electrical 7 %Construction 57 %Total 100 %

Typical cost distribution new plant

Mechanical 36 %Electrical 7 %Construction 57 %Total 100 %

Engineering aprox. 6 % in each diciplineMechanical the distribution is aprox. 40/60 propriatary/auxiliary equipEngineering aprox. 6 % in each diciplineMechanical the distribution is aprox. 40/60 propriatary/auxil iary equip


22/33

Construction /

equipment costsF=CONSTRUCTION/EQUIPMENT

0

0.5

1

1.5

2

2.5

0 1000 2000 3000 4000 5000 6000

F=C/E


23/33

Equipment cost

US$/MTPY

0

102030405060708090

0 1000 2000 3000 4000 5000 6000

US$/MTPY

MTPD

C f d d h d l


24/33

Cost of extended schedule

P i i


25/33

Power saving in cement

grinding @ 300m2/mt

By installing an ok-mill insteadof a ball mill for cement

grinding a substancial power saving can be obtained

By installing an ok-mill insteadof a ball mill for cement

grinding a substancial power saving can be obtained

C i B ll Mill R ll Mill


26/33

Comparison Ball Mill vs Roller Millcement grinding 150 MTPH

System Ball mill OK Roller Mill

Clinker % 95 95Gypsum % 5 5Blaine cm 2/g 4,000 4,000Spec. energy

Mill Drive kWh/t 38.0 20.0Separator kWh/t 0.4 0.4Fans kWh/t 4.5 8.0

System kWh/t 42.9 28.4

Power Savings: 14.5 kWh/Mt cement

Cost Savings: $725,000 USD/yr

P i S t


27/33

Pyroprocessing System

Tailor Made Systems High Production Lines Cogeneration of Electricity Waste Management Low Pressure Drop High Efficiency Low NOx, SO2, and CO Computer Control

Tailor Made Systems High Production Lines Cogeneration of Electricity Waste Management Low Pressure Drop High Efficiency Low NOx, SO2, and CO Computer Control

P d ti I


28/33

Production Increase

Cyclone Modifications High Efficiency Separators New Calciners High Efficiency Fans Roller Presses Vertical Pregrinders Cooler Upgrade/Cross-bar Cooler

Cyclone Modifications High Efficiency Separators New Calciners High Efficiency Fans Roller Presses Vertical Pregrinders Cooler Upgrade/Cross-bar Cooler

Automation


29/33

Automation

Information

Trouble Shooting/Plant Guide Quality

Smooth Operation Energy Control

Refractory Control Manpower

Information Trouble Shooting/Plant Guide Quality Smooth Operation Energy Control

Refractory Control Manpower

WACC


30/33

WACC

Source of capital

Tax New financial

solutions (BOT, etc.)

Source of capital

Tax New financial

solutions (BOT, etc.)

What do F L Smidth do?


31/33

Global team workGlobal team work

What do F.L.Smidth do?

TechnologicalleadershipTechnologicalleadership

Cost efficiencyCost efficiency

Customer focusCustomer focus

Our mission


32/33

Our mission

We want to be your preferredsupplier of service,

technology and equipment

We want to be your preferredsupplier of service,

technology and equipment


33/33

Thank youand

Good luck!

Thank youand

Good luck!

Documents

31 - Future Developments in Cement