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/

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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/

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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 Yourangan@ese.iitb.ac.in

Srinath Haran IyerPhD student, IDP Climate

Studies, IIT Bombay

Nishant BhardwajProject Engineer, DESE, IIT Bombay