Brazil

Thermal and electric energy efficiency in the cement sector in Brazil

EXPERTISE : , Financing Mechanisms /Facilitation of project implementation
SECTOR : , Industrial

CLIENT

The World Bank

 

project description

For over five years, the International Energy Agency (IEA) technology roadmaps (TRMs) have helped set the global agenda for clean energy technology development. Since 2002, cement-producing companies in the Cement Sustainability Initiative (CSI), a project of the World Business Council for Sustainable Development (WBCSD), have collectively made significant progress in measuring, reporting and mitigating their CO2 emissions, and sharing their progress with the rest of the cement industry. In 2009, recognizing the urgency of identifying the technologies to reduce the energy-use and CO2 intensity of cement production, CSI member companies around the world (representing about 30% of the global cement production) worked with the IEA to develop the first industry roadmap. That roadmap outlines the emissions reduction potential from all the technologies that can be implemented in the cement industry.

The International Finance Corporation (IFC) supported the drafting of the Low Carbon Technology Roadmap for the Brazilian Cement Industry, including the drafting of two technical papers on (1) thermal and electric energy efficiency and (2) alternative fuels.

The objective of this Econoler/IIP assignment was to provide a comprehensive overview of the best practices base on international experience regarding commercially proven and financially viable options to improve thermal and electric energy efficiency in the cement sector which can be applied to Brazil. The outputs of this assignment will be used as inputs for the drafting of the technical paper on thermal and electric energy efficiency in the Brazilian cement sector led by a local expert. This technical paper will be integrated into the Low Carbon Technology Roadmap for the Brazilian Cement Industry, jointly developed by the Brazilian Cement Industry Association (SNIC), IFC, IEA and WBCSD.

highlights

The assignment involved carrying out two main tasks:
1. Mapping out major commercially proven technologies available to improve thermal and electric EE in the cement sector based on international best practices. The EE technologies and measures considered under this assignment included the improvements in raw materials and fuel preparation, kilns, waste heat recovery (WHR), high-efficiency clinker coolers, grinding systems, burners, process fans, auxiliary equipment, electrical systems, automation systems, VSDs, process controls and optimization, etc.

For each of the above technologies, the following information was provided:
⦁ A general technology overview.
⦁ Current status of the technology.
⦁ A comparative analysis with viable alternatives.
⦁ Anticipated benefits: thermal and electric energy savings; CO2 mitigation potential; monetary benefits.
⦁ Typical specific capital costs (CAPEX) and operating costs (OPEX). A financial cost-benefit analysis for a typical case was performed.
⦁ Major issues associated with a technology, if applicable.
⦁ Market penetration potential.
⦁ Typical technical, policy and financial barriers to mainstreaming a particular EE technology.
⦁ Recommended policy actions to address barriers and promote a particular EE technology. Specific examples were provided about countries where such actions were effectively implemented.
⦁ A specific case study, demonstrating the international best practice in a particular technology, covering the above-listed topics.

2) Provide a detailed description of the following main practically tested innovative business models for improving thermal and electric EE:
⦁ Direct implementation supported by direct loans or senior debt, subordinated debt financing (mezzanine finance), equity financing and leasing.
⦁ Partial loan guarantees
⦁ Energy performance contracting model (ESCOs)
⦁ Shared savings
⦁ Guaranteed savings
⦁ Chauffage
⦁ Public private partnership
⦁ Special-purpose vehicle

Both tasks of the assignment were introduced and discussed at a workshop in Sao Paulo, Brazil to various Brazilian stakeholders, such as the Brazilian Cement Industry Association (SNIC) and the National Institute of Technology, as well as the major cement companies in Brazil. The outcomes of the assignment were very well received by all the Brazilian counterparts.

Econoler/IIP finally revised the technical paper that will be integrated into the Low Carbon Technology Roadmap for the Brazilian Cement Industry to be published by the IEA.

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