Cement, Energy and Environment

Barriers to decarbonisation and energy efficiency • Issues relating to business case development for projects, such as capital and resource availability, a requirement for short payback periods and production risks. This is compounded by the fact that many UK cement companies have already implemented significant energy efficiency projects. • Short term barriers relate to the need for policy to support deca rbonisation and energy efficiency in a way that enables industry to compete in its markets. For example, the Renewable Heat Incentive (RHI) and other renewable fuel systems increase biomass costs for the cement sector. Analysis of Decarbonisation Potential in the Cement Sector A 'pathway' represents a particular selection and deployment of options from 2012 to 2050 chosen to achieve certain targets and based on a number of assumptions. Two further pathways with specific definitions were also created, assessing (i) what would happen if no particular additional interventions were taken to accelerate decarbonisation (business as usual, BAU) or (ii) the maximum possible technical potential for decarbonisation in the sector (Max Tech). These pathways include deployment of options compnsmg (i) incremental improvements to existing technology (ii) upgrades to utilize the best available technology and (iii) the application of significant process changes using technologies that have the potential to become commercially viable in the medium term. The pathways created in the current trends scenario, the central of these three scenarios, are shown in Figure 1. The figure illustrates the central role that technology plays in he decarbonisation process. The C02 reductions are estimated based on the adoption rate, applicability rate and deployment of technologies. Conclusions and Key Technology Groups The following conclusions were drawn from the evidence and analysis: 1. Electricity Grid Decarbonisation: Decarbonisation of electricity imported to cement sites could provide a significant contribution to the overall decarbonisation of the sector. Actions will be required to ensure that this takes place while maintaining cost– competitiveness. 2. Fuel and Feedstock Availability (Including Biomass): The availability of low carbon fuels and feedstocks is a key issue for cement sector decarbonisation, given the important role biomass could play. This availability is affected by demand in the cement sector and other sectors and/or with other demand (for example, the use of biomass for electricity generation or in the nonmanufacturing sector such as domestic heating). The challenges are to understand where the greatest decarbonisation potential can be achieved with a limited resource, as well as to maximize the availability of the resource (links to life-cycle carbon accounting). Energy Efficiency and Heat Recovery Technology: There are opportunities to increase heat recovery in the cement sector, both to improve energy efficiency and to produce electric power. However, the payback periods of such projects are typically above the 2-3 year threshold defined by industrial companies in the sector. Alternative financing mechanisms to facilitate investment in energy efficiency projects cou ld increase their implementation across the sector. 1. Carbon Capture: Individual cement plants are not considered to be of a sufficient scale to justify their own C0 2 pipeline and storage infrastructure. Collaboration both within the sector and externally is necessary to establish the networks, along with the availability of sources of funding appropriate to this type of shared infrastructure. The scale of C0 2 emissions from each site in the cement sector means that carbon capture and utilization applications would need extensive technical breakthrough to be developed into large scale options for use of C0 2 in products with associated value. The roadmap report is intended to provide an evidence-based foundation upon which future policy can be implemented and actions delivered. It will be successful if, as a result, the government and the cement sector are able to build on the report's evidence and analysis to deliver significant reductions in carbon emissions, increased energy efficiency, and a strong competitive position for the UK cement industry in the decades to come. Courtesy: 10 Produced & Published by Knowledge Exchange Platform (Joint initiative of Bureau of Energy Efficiency & Institute for Industrial Productivity) Newsletter Issue 2, June 2015