Gone are the days of wasting energy resources - rather it is time to generate energy from waste. Massive surge in cost of production has compelled cement makers in Pakistan to think differently, in times of rising energy deficit.
Efficiency measures being adopted by a number of domestic cement makers are being used to generate electricity at lower cost and to make efficient usage of kiln by reducing the quantity of fossil fuels.
The quest to reduce cement production cost intensified as the global supply glut pushed international cement prices sharply lower to $52/ton from $80/ton in just two years.
Production cost, on the contrary, has surged massively in the meanwhile to $32-37/ton, which makes domestic cement makers uncompetitive, as it is significantly higher than their regional peers.
Realizing the tough times, DG Khan Cement, has started trial production of Waste Heat Recovery Project, installed at a cost of Rs2.2 billion.
The project has the capacity to generate 10.4 MW, which would help the firm save Rs400 million per year on account of electricity cost. The project would reduce DGKCs dependence on Wapda to 3 MW. The company currently consumes 12-16 Mw from the 20 MW line obtained from Wapda.
According to company officials, the cost of electricity generated through Waste Heat Recovery Project is expected to be significantly lower than Rs8 per unit it pays to Wapda. Besides being cost saving in nature, the project also seems to be environmental friendly, as it will result in lesser carbon emissions.
To add efficiency to the system, DGKC has also undertaken Refused Drive Fuel project with a stated cost of Rs200-250 million. The aim is to make more efficient use by reducing coal contents in kiln by 5-10 percent.
The company intends to explore more opportunities in future to help meet its long term goal of shifting 30 percent of the energy mix to alternative fuel sources. By looking at the situation of depleting energy resources, this seems the right way to go. It would be nice if the countrys energy mix also gets more tilted towards alternative sources too.