Cement Energy Environment

22 Impact of Digital Maturity on Bottom Line in Cement Industry According to McKinsey & Company, this future is not far off. Our analysis shows that pursuing digitization and sustainability levers are key to significantly boosting productivity and efficiency of a typical cement 1.Assuming an average production cost of $35–$40 per ton of cement; without considering the impact of innova- tive installations for carbon reduction. 2.Includes asset optimization and reliability. 3.Includes fuel-mix optimization, energy efficiency, and clinker substitution. 4.Includes carbon capture, utilization, and storage (CCUS), solar power generation, electrification of logistics and mobile equipment, and micro-algae cultivation, among others. 5.Currently, free carbon allocations are sufficient for cement players, and therefore no cost is directly associated with carbon-emissions reduction, but this may change in the future. 6.Maintenance, repair, and overhaul. Source: McKinsey analysis Since, there are very few close to full implementations of digital maturity models in the cement industry globally; therefore, to assess the potential savings we need to look on units rather than a full business unit. The main impact of Advanced Analytics and Artificial Intelligence mainly are in Energy Management mainly of Specific power consumption reduction and throughput increase in cement mills and raw mills; the impact of IOT sensors combined with AI is more visible in maintenance management resulting in higher reliability and substantial savings in repair and spare parts cost. plant (Exhibit 1). The result is a margin gain of $4 to $9 per ton of cement, ² which could shift a traditional plant to the top quartile of the cost curve for plants with similar technologies.