Minutes of Meeting of the Sub Committee on Normalization (Cement Sector)

Date: 20 March 2013 Time: 11.00 AM to 1.30 PM Location: Conference Hall, Sewa Bhawan, New Delhi Participants: As per Annexure - I

1.

The Agenda for the meeting was to discuss and conclude the normalization factors developed so far as per minutes of Minutes of 3rd Technical committee meeting held on 2324th November 2012 at ACC Thane office.

2. i)

The note of deliberations and recommendations discussed during the meeting are as under Normalization of Clinker Heat rate and clinkering electrical energy versus clinker capacity utilization of the kiln. The committee agreed for a normalization factor developed by NCCBM. The study indicates there is 6 % increase in heat rate when the capacity utilization falls to 55% of the rated value. Brief summary of the study is given below.

Theoretical analysis for 6-stage ILC 4500 tpd kiln operated at different reduced output rates:

Kiln Output TPD Heat output PH Waste gas Dust Heat of Reaction Cooler exhaust Clinker Evap. Of moisture-RM Evap. Of moisture-fuel Radiation losses TOTAL Sensible heat Through fuel combustion TOTAL

4500 132.08 3.79 411.46 82.71 26.91 1.23 1.1 40 699.28 30 669.28 699.28

4000 132.78 3.78 411.46 82.12 26.91 1.23 1.11 50 709.39 30 679.39 709.39

3500 133.7 3.79 411.46 81.38 26.91 1.23 1.12 55 714.59 30 684.59 714.59

3000 134.92 3.83 411.46 80.42 26.91 1.23 1.14 65 724.91 30 694.91 724.91

2500 136.61 3.83 411.46 79 26.91 1.23 1.16 80 740.2 30 710.2 740.2

Heat Input

Note: Values in kcal/kg cl. Heat balance computed through software, past energy audit studies & input from NCB cement simulator Values of radiation losses arrived at based on NCB past energy audit studies Further exercise on simulator is being carried out and also for different kiln capacities

Kiln TPD Vs kcal/kg cl.

715 710 705 700 695 690 685 680 2 675 y = 4E-06x - 0.0504x + 807.79 R = 0.9885 670 665 2000 2500 3000 3500

kcal/kg cl.

y = -0.0195x + 755.83 R = 0.971

4000

4500

5000

5500

TPD
Series1 Poly. (Series1) Linear (Series1)

Fig 1: Kiln TPD vs Thermal SEC Based on the above: % Output 100 88 77 66 55 % Increase in kcal/kg cl. 1.4 2.3 3.8 6

For specific electrical energy upto clinkering vs. Percentage Capacity utilization, NCCBM has agreed to conduct simulator based study and are expected to share the result by 5th April 2013. To avail this Normalization, DC should submit data related to kiln under utilization due to market demand, coal non availability due to force majure conditions like floods, strikes etc. During the assessment period, the DCs will provide the number of hot-cold-hot star ups so that this feature can be included for normalization in the subsequent cycles. ii) The normalization factor for Coal GCV vs. CPP Heat rate

BEE has proposed the following equation for the relationship between GCV of coal vs. boiler efficiency: Boiler efficiency = 92.5-[{50*A+630(M+9H)}/GCV] A= Ash percentage in Coal M= Moisture percentage in Coal H= Hydrogen percentage in Coal GCV = Gross Calorific value in Kcal / Kg But, for applying above the formula, the data related to Hydrogen content in the coal should be available during the baseline and assessment year. It was agreed to use the value of Hydrogen percentage of the assessment year in the baseline year also if the data is not available.

iii)

Normalization factor for PETCOKE usage in cement kilns: The suggested relationship between the percentage (0-100%) use of petcoke and the heat rate of the kiln & Sp. Power (upto Clinkerisation) by M/s Ultratech was discussed (shown in fig 2 and fig3). NCCBM has agreed in general about the variation of specific thermal and electrical power with respect to pet coke substitution. The committee decided to populate the data and finalize the percentage of increase in thermal and electrical energy consumption by the petcoke usage over and above baseline. ACC agreed to share the data by 5th April 2013 and provided below (fig 2and fig3). In both cases, similar percentage increase in thermal and electrical SEC was observed.

Thermal SEC vs % Petcoke usage

850

Thermal SEC, kCal/kg

y = 0.2615x + 790.13 R = 0.9249

800 750 y = 0.1293x + 688.2 R = 0.9985 700 650 0 20 40 60 % Petcoke KCW Ultratech ACC Chaibasa 80 100 120

Fig 2: Variation of specific heat with percentage of petcoke consumption at KCW and ACC Chaibasa

Electrical SEC upto Clinkering vs% Petcoke usage

Electrical SEC upto clinkering , kWh/T of clinker
100 y = 0.2065x + 68.95 R = 0.9556

80

60 y = 0.0215x + 54.883 R = 1

40

20

0 0 10 20 30 40 50 % Petcoke ACC Chaibasa KCW, Ultratech 60 70 80 90 100

Fig 3: Variation of specific power with percentage of petcoke consumption at KCW and ACC Chaibas

iv)

Specific Heat Rate to be considered for export of Power from Cement Plant CPP: For export of energy, it is being proposed that the difference of units exported above the base line would be corrected based on the actual CPP heat rate of assessment year while calculating the total energy. The committee agreed and this issue is closed.

v)

Specific heat rate of kiln for calculating Notional energy of imported clinkershould be based on GCV or NCV DCs are required to submit the specific heat values of the assessment year in line with data submission as per baseline year i.e., if the baseline calculation was done with GCV, it remains as GCV in the assessment year and if it is NCV it remains as NCV in the assessment year. Regarding the specific heat value of imported Clinker, the same will be considered as given below: a. If any plant earlier reported Specific heat rate of imported Clinker in NCV, during the assessment year also NCV will be considered for the equivalent amount of imported clinker as reported in the base year. The extra amount of imported clinker will be treated with heat rate value calculated in GCV basis of the assessment year. b. If there is any decrease in imported clinker, the present system will remain as it is and does not call for any normalization factor. The committee agreed and this issue is closed.

vi)

Normalization factor for CPP heat rate versus PLF The committee decided to arrive at Normalization by using Heat and Mass Balance Diagram (HMBD) of CPPs. BEE has requested that all the DCs having CPP should send their respective HMBD to BEE and CII by 5th April 2013 to work out this normalization factor. Parallelly BEE will develop the normalization curve from the data available with them.

vii)

Normalization factor for raw material quality:

It was felt that the very rare possibility of change of raw material quality from baseline to assessment year on account of adopting new mines. Since the form-1 does not contain the base line raw material quality data and hence BEE expressed that it

would be difficult to give correction factor in the first cycle. This normalisation factor can come in the second cycle and the form-1 should be modified to collect the burnability index and limestone hardness during the first PAT cycle assessment. The committee accepted for not considering this normalization factor in the first cycle.

viii)

Change of major product and change of clinker factor of the minor products (Baseline period versus assessment year): The baseline year major product will remain as major product in the calculation during assessment year even in the cases where major product changes. It has been decided that the PAT framework should encourage the increased use of fly ash/ slag in cement. The committee decided to write the formula in alpha numeric format such that it is easy to understand. The factors which are worked out are given below:

Probable Solutions Baseline Major Product shall be considered as major product of Assessment year. Case-1: Baseline Major Product. PPC Proposed Treatment: Baseline Major Product shall be considered as major product of Assessment year. BEE proposed formulae as given below: Assess. Year Major Product: OPC

Notional Energy (million kcal) = {[(A-B) xC xD] [(E -F) x G x H]}/10 A = Equivalent Major Cement production in assessment year B= Reported cement production in assessment year C= Electrical SEC of cement grinding (kWh/Ton of cement) for assessment year D= Weighted average CPP Heat/Grid Heat Rate (kcal/kWh) in the assessment year E= Equivalent Major Cement production in baseline period

F= Reported cement production in baseline period G= Electrical SEC of cement grinding (kWh/Tone of cement) for baseline period H= Weighted average CPP/Grid Heat Rate (kcal/kWh) for baseline period The notional energy corrections calculated above will be added to the total energy in the assessment year. The calculation above has been substantiated in the working sheet, enclosed.
Case-2: Baseline Major Pr: OPC Proposed Treatment: Assess. Yr. Major Pr: PPC

Notional Energy for Clinker Produced due to change in Additives/Clinker Factor (Million kcal) = J X [K x L + M x 1000]/10 J = Clinker produced due to change in Additives/Clinker Factor (Lakh Ton) K=Electrical SEC (Up to Clinkerisation) (kwh/ton of cement) for assessment year L= Weighted Average Heat rate (kcal/kwh) for the assessment year M=Thermal SEC of Clinker for assessment year (kcal/kg of clinker) WhereClinker produced due to change in Additives/Clinker Factor (Lakh Ton)= {N X (1-P)}-{QX (1-R)} N= PPC production in assessment year (lakh Ton) P= PPC Clinker factor in assessment year Q= PPC production in baseline year (Lakh Ton) R= PPC Clinker factor in baseline year

The notional energy corrections calculated above will be subtracted to the total energy in the assessment year.
Additional Grinding Energy required to produce Additional PPC from Baseline shall

be subtracted from total energy consumed as per BEE proposed formulae (indicated above in case-1). Case-3: Improvement in minor products clinker factor. Baseline Major Pr. OPC Proposed Treatment: Assess. Yr. Major Pr: OPC

Notional Energy for Clinker Produced due to change in Additives/Clinker Factor (Million kcal) = J X [K x L + M x 1000]/10 J = Clinker produced due to change in Additives/Clinker Factor (Lakh Ton) K=Electrical SEC (Up to Clinkerisation) (kwh/ton of cement) for assessment year L= Weighted Average Heat rate (kcal/kwh) for the assessment year M=Thermal SEC of Clinker for assessment year (kcal/kg of clinker) WhereClinker produced due to change in Additives/Clinker Factor (Lakh Ton)= {N X (1-P)}-{QX (1-R)} N= PPC production in assessment year (lakh Ton) P= PPC Clinker factor in assessment year Q= PPC production in baseline year (Lakh Ton) R= PPC Clinker factor in baseline year

The notional energy corrections calculated above will be subtracted to the total energy in the assessment year.
Additional Grinding Energy required to produce Additional PPC from Baseline shall be subtracted from total energy consumed as per BEE proposed formulae (indicated above as in case 1). The same has been substantiated along with working sheet, which is enclosed. M/s Ultratech has suggested an alternate approach for the normalization factor for above product mix change. The committee suggested to circulate BEE and Ultratech

calculations to the members of the normalization committee. Members are requested to reply by 10th April 2013. ix) Normalization of energy losses due to frequent outage and Power holiday of the grid power: Documentary evidence need to be submitted to the auditors during the assessment to substantiate the claims of energy loss during hot to cold and cold to hot restarts due to additional number of outages and Power holiday of grid from the baseline year by the DCs. This will be exclusive of machine shut down and kiln stoppage on account of excessive clinker stocks The committee agreed and this issue is closed.

x)

Normalization for Non availability of Biomass BEE will indicate the type of documentation required for the non availability of the biomass in the assessment year. DCs should submit the support of the above claim if DC wishes to claim the benefit of above normalization. The committee agreed and this issue is closed.

xi)

Normalization for mandatory usage of industrial/municipal waste which are having adverse impact on specific thermal energy. The DCs need to substantiate extent of energy loss due to the above issue with proper calculation to BEE assessor during the assessment to claim the benefit of above normalization. The energy loss will be deducted from the total energy in the assessment year while calculating the SEC of the assessment year.

The committee agreed and this issue is closed.

xii)

Normalisation factor for use of raw slurry with variable moisture content (Sriram Cement) The DC has been advised to substantiate the moisture % in the raw slurry versus the kiln heat rate, so that it can be normalized in the assessment year. It is essential that the DC maintains the record to substantiate the increase in moisture. The data is required for the baseline as well as for assessment year to avail the normalization. The committee agreed and this issue is closed.

xiii)

Differential Renewable Energy Import: Some of the members have requested that the differential renewable energy (Baseline vs assessment year) imported by the plant through their own renewable energy generation unit with wheeling and banking arrangement or through a bilateral agreement over and above the RPO obligation may be considered as 860 Kcal/KWh. As per EC act, the same has been considered as input energy to the plant and will be treated as it is. BEE agrees to look into this correction factor and will consult and MNRE and legal team and revert.

xiv)

Fully or Partial plant / mines shutdown due to statutory directives during the PAT cycle (2012 2015) One of the DC has made a request to BEE to exempt from the PAT assessment or reduce specific energy reduction target on pro rata basis for the period the plant was in normal operation. This issue is likely to get addressed parallel with the normalization factors for Capacity utilization vs. Kiln Heat rate and normalization for change in raw material quality. BEE will take legal opinion and revert back with this issue.

xv)

Shree Cements request for considering the heat rate of 2400 Kcal/KwH for the 15MW of energy being imported from IPP: The committee reviewed this request and asked Shree Cements to submit SLD showing direct power supply to the cement plant from Shree mega power without routing through grid.

3. The committee decided to get all relevant data and circulate to all DCs. After receiving the comments from the DCs, the technical committee will finally submit their report to sectoral committee.