India’s cement industry needs technological intervention

Globally, cement production contributes about 8% of global anthropogenic CO2 emissions.

In a recent report, the Reserve Bank of India (RBI) made the case for technological intervention to tackle carbon emissions from the cement industry, which, in turn, will help achieve the targets of net zero emissions from India, as reported by Mongabay-India. Globally, cement production contributes about 8% of global anthropogenic CO2 emissions. India is the second largest producer and consumer of cement in the world, after China. India’s cement consumption is only expected to increase in the coming years, with more than 250 million people expected to add to its urban population over the next 20 years.

As Mongabay-India reports, the RBI’s analysis aligns with the India Energy Outlook 2021 which notes that most of the buildings that will exist in India in 2040 have yet to be constructed and stated that a Expanding economy, population, urbanization and industrialization mean that India is seeing the highest increase in energy demand of any country. The report pointed out that even at an assumed relatively modest urbanization rate, this means that 270 million people are still expected to be added to India’s urban population over the next two decades.

The RBI report (Volume LXXV No. 12) highlights that India’s economy rebounded strongly in Q2: 2021-22, with gross domestic product surpassing pre-pandemic levels and inflation broadly in line with target . A host of high-frequency incoming indicators appear bullish and consumer confidence is gradually returning. In the construction sector, activity picked up, supported by a surge in cement production and accelerating demand for residential units. Cement demand is expected to remain strong in the coming quarters due to government pressure for infrastructure projects. Although the cement industry causes anthropogenic CO2 emissions, recent developments in green technologies, particularly related to reverse calcination, offer exciting opportunities for India. India’s cement industry is one of the most energy and carbon efficient cement industries in the world and has the lowest carbon footprint due to early and voluntary actions, according to industry representatives.

The RBI report noted that India’s cement production is expected to reach 381 million tonnes by 2021-22, while consumption could be around 379 million tonnes. He pointed out that a renewed focus on major infrastructure projects and the government’s push for the smart cities mission are likely to boost cement demand in the future. “This commitment to building high quality infrastructure also poses a risk to India’s commitment to NZE (net zero emission) standards,” he said.

The report advocates the adoption of technologies, such as carbon capture, to contribute to India’s goal of net zero carbon emissions. He acknowledged that India’s cement sector has already made progress in reducing carbon emission targets and that India aims to meet half of its energy needs from renewables and reduce energy intensity. carbon economy by 45% by 2030, this “requires a policy overhaul in all sectors, especially where carbon emissions are high” and “the cement industry is one of them”.

A significant amount of CO2 emissions in cement manufacturing results from calcination, while the rest comes from the burning of coal and other fossil fuels. “Studies suggest that capturing CO2 emissions before they enter the atmosphere and storing them by reverse calcining is the most effective approach to decarbonizing the cement industry…reverse calcining could sequester up to 5% of cement emissions today, which could be expanded to 30% with improved technology This process can be further improved by using green energy instead of fossil fuels to perform the calcination process…biomass such as municipal and industrial waste can be used as an alternative to fossil fuels” and “India can also look into fly ash, graphene, natural and synthetic fibers as a substitute for cement” , the central bank said.

According to the RBI, the Indian cement industry has made “remarkable progress in reducing CO2 emission levels by about 36%, from 1.12 t/t to 0.719 t/t of cement produced between 1996 and 2017”. To further reduce it by half and “achieve the target of 0.35 t CO2/t of cement by 2050, the cement industry requires an investment of 29 to 50 billion US dollars”, he notes.

RBI’s policy recommendations include increasing financing towards green sustainable solutions through loans at subsidized interest rates; proactively engage with key research institutes/countries involved in innovation related to green technologies in the cement industry; and incentivize the cement industry to source thatch from northern states as biomass fuel to perform the process of reverse calcination and pure carbon capture.




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