20 eco ventures

8/13/2019 20 Eco Ventures

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Confidential not to be copied or distributed

February 2010

Alternative Fuel Options for

Saudi Cement Manufacturers


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Targeting regional integrated cement producers in identifying and capitalising on opportunities

to monetise emissions reductions projects

Projects we are currently working on include:

Raw material substitution analysis

CDM opportunity identification

GHG inventory and data analysis

Specialised carbon asset management firm based in and committed to the Middle East and

North Africa region. 7 professionals in Dubai, London and Moscow Partnership with ICF International, a global professional services firm with expertise in

technology solutions in for climate change, environment, transportation, social programs,

health, defense, and emergency management. Experience includes:

raw material feasibility for Lafarge cement

CDM opportunity appraisal for a Portuguese cement company operating two plants in Brazil including

development of Project Design Documents (PDD) and CDM methodology development.

GHG data analysis for Blue Circle Cement as well as a national cement industry assessment for the

United States Environmental Protection Agency (on going since early 1990s).

Partnership with The CarbonNeutral Company and Edinburgh Center for Carbon Management

for carbon credit markets

Who We Are


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What are alternative fuels?

Wide range of agricultural and industrial waste materials can be co-processed into an engineered fuel,

due to the high temperatures, alkaline environment, high turbulence and long residence times that

characterize cement manufacturing operation.

Consumer/Office/Household wastes

Used lubricants Spent oils and chemicals

Non-recyclable, non-biodegradable packaging

Non-recyclable manufacturing by-products

Non-recyclable junk appliance components

Non-recyclable off-spec products

Expired finished products

Used and non-recyclable packaging

Oil-contaminated soil

Purification or filtration by-products

Brine from desalination Oil tank bottoms

Agricultural by-products

Automotive Rice husks

Used oil

Sugar cane bagasse

Used tires

Banana tree bags

Spent solvents and paint sludges

Packaging materials for pesticides/fertilizers

Non-recyclable junk car parts

Industrial by-products

Sewage sludge


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Are there alternative fuels in Saudi?

Plastics

(PET, ABS, etc.)

Shredded

Post-industrial

Pre-sorted

post-consumer

Non-fire retardant

Sewage sludge +

animal waste

Waste wood

+ agricultural

Municipal collections

Large farms

Furniture / not high-

end (e.g. with studs,

etc.)Hazardous

Tires

Tank solids / slops

Brine from desal


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Can we throw alt fuels right into the kiln?

Short answer: no

Longer answer: a number of obstacles

Permitting / test programs unfamiliar to authorities

Collection / qualification

Guarantees of volume on timescale of interest to Board

Processing

Complex cost / benefit equation

Material handling challenges

Control issues in the burner (not so much in preheater)

Risks


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Specific objections to alternative fuels

Higher emissions of dealing with plastic waste

Liability associated with hazardous waste

Consistent energy value, moisture, and cost of waste stream relative

to current fuel

Calorific value of fuel 6,500 kcal /kg Specific reactive properties of fuel, due to ash absorption incl.

metals

Concern about impact of waste on burner characteristics and

product quality

Cost / benefit of material handling solution

No tipping fees


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Some cement customers want to use

waste themselves but dont know how

! Mixing air system ROI is as low as 6 months due to cost savings of using alternatives to

conventional fuels.

! Patented pre-calciner SNCR system reduces costs and increases capacity of system to use

alternative fuel, by reducing emissions and improving combustion! Suspension burner combines mixing air with pre-calciner technology when also using a pre-

heater.

! Material handling system to maximize control over alternative fuel processes.

Shown: basic diagram of mixing

process and mid-kiln

introduction of whole tires.

Not shown: material handling

and power system; monitoring

system

Advanced fuel substitution processes and

technology


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Benefits of working with us for advanced

fuel substitution! We can offer cement clients a comprehensive

solution including:

Sourcing the necessary waste streams to be used

as the alternative fuel, typically single type (e.g.

whole tires) and high-energy,

Implement all the required material handling

systems (at right) and control systems to utilize the

alternative fuel.

! Can be used with the newest cement kilns or the

oldest

! Continuous monitoring and reporting to show positivebenefits and no negative effect on operating

parameters including burner quality andcharacteristics

!

Improved emissions (example at right)! Improved stratification concerns and better

combustion


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Benefits of alternative fuels

Energy Benefits:

Lower energy consumption

Energy value equal to coal

High burning efficiency

Environmental Benefits:

Burning produces less dioxins and carbon emissions

than coal

Reduced volume of wastes being land-filled Recover value from waste streams previously

deemed suitable only for land-filling

Produces no residue

Financial Benefits:

Less expensive than coal

Predictable long-term cost

Reduced chemical costs

Reduced operating costs

Reduced trucking costs with regional facility

Avoid capital cost of digesters, dewatering,

and/or dryers

Product & Process Benefits:

Tested and proven technology being used

extensively in the US and Europe

Easily integrated with existing fossil fuel handling

systems with minimal downtime and no effect on

long-term machinery lifespan; Little or no capex

investment required; can be used with the newest or

oldest kilns

Diversification of energy inputs Possible direct spray into flame

Produced safely and responsibly

Provides improved stratification concerns and better

combustion in kiln

Proven safe to burn


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UAE Fuel Costs 2 Examples

Gulf Cement (RAK) National Cement (Dubai)

AED (000s) % AED (000s) %

Revenue 1078140 100% 152451 100%

Raw Materials 168981 16% 63092 41%

Fuel + Utilities 417957 39% 15207 10%

Other COGS 161760 15% 9083 6%

SG&A 13041 1% 8894 6%

Other 3142 81 29% -19340 -13%

Net Profit 2119 0% 75515 50%


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Todays fuel options (1/2)

FuelHigher Calorific Value

(Gross Calorific Value - GCV)

kJ/kg kcal/kg Btu/lb

Anthracite 32,500 34,000 7,762 - 8,120 14,000 - 14,500

Bituminous coal 17,000 23,250 4,060 - 5,553 7,300 - 10,000

Coal 15,000 27,000 3,582 - 6,448 8,000 - 14,000Coke 28,000 31,000 6,687 - 7,404 12,000 - 13,500

Diesel 44,800 10,700 19,300

kJ/m3 kcal/m

3 Btu/ft

3

Natura l gas 43,000 10,270

Methane CH4 39,820 9,510

Propane C3H8 101,000 24,122

kJ/L kcal/L Btu/gal

Gas oil 38,000 9,075 164,000

Heavy fuel oil 41,200 9,840 177,000

Source:http://www.engineeringtoolbox.com/fuels-higher-calorific-values-d_169.html


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Figure ?: Fossil Fuel Energy Value and Cost

Fuel Consumption

Fuel

Energy Value PriceConsumption/

ton clinker

Cost /

ton clinker

Coal 6,000 kcal/kg $90 / ton 162 kg $14.62

Natural Gas 43,000 kJ/m3 $5/MMBtu

3.71 MMBtu/104 m

3 $18.58

Heavy fuel oil 41,200 kJ/L$91 /

barre l109 L /

0.7 barrel $62.52

Source:ICF, EcoVentures research

Todays fuel options (2/2)


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Alternative fuel solution basic idea

Plastics

Waste wood +agricultural

Shredd ing

Shredd ingrinding ryingeparat ion

EVEF differentiationFocused waste qualificationand generator compliance

plan

Software-based wastemanagement system

Software-based tracking andblending system

Technical know-how forgrinding equipment design.


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Focus on a solution rather than technology

Example fuel design

Analysis of samples of waste material for presence of substances and precursors to

substances whose emissions are regulated or can cause liability

Assessment of the impact of waste streams on cement product quality

Assessment together with the waste generator of the risks associated with the material to

health, safety, and the environment

Assessment of the economic costs and benefits of utilizing the waste material


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Questions / comments welcome

EcoVentures FZ LLC

Office 332

Building 10

Dubai Media City

Dubai, UAE

Armen Vartanian

Tel: +971 (4) 390 1691

Fax: +971 (4) 390 4557

Email: [email protected]