a much-needed sustainability revolution in the Indian cement sector, ET Infra

India’s vision of a developed economy requires ‘greening’ the cement sector through sustainable initiatives and concerted efforts.

India’s progress, the world’s fastest-growing major economy, relies on solid infrastructure. Good infrastructure promotes economic prosperity, while poor infrastructure hinders growth and opportunity. To achieve its goal of becoming a developed economy by 2047, India is making rapid progress in infrastructure development. A key indicator of this progress is cement consumption.

Currently, cement consumption per capita in India is less than 300 kg, which is only half of the global rate. This low per capita consumption indicates significant growth opportunities. According to the latest estimates from the Investment Information and Credit Rating Agency (ICRA), cement demand in India could reach ~460 million metric tons (MT) by 2025, and the sector’s production capacity is expected to grow at 5% annually until March 2027 .

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Economic progress often comes at the expense of the environment. The cement industry in India accounts for ~7% of the country’s total CO 2 emissions, mainly due to its heavy dependence on coal.

In 2008, during the period of greatest economic growth in China, the country produced 1.135 billion tonnes of cement, which resulted in emissions of approximately 0.46 MT per tonne of cement.

Now, in 2024, while India produces 40% of China’s 2008 production volume, individual emissions are comparable. Clinker dust and waste generated during production and packaging, as well as spills during transport, increase the environmental impact.

India has made a conscious commitment to become a net zero emission country by 2070. This commitment reflects the delicate balance that India seeks to achieve – supporting rapid economic growth while ensuring sustainable development. Therefore, the cement industry must adopt a “green” approach across the various dimensions of the value chain – capacity, process, product and maintenance (post-processing).

By comprehensively addressing each of these areas, the industry can significantly reduce its environmental impact while increasing its overall sustainability.

Power: The cement sector relies heavily on electricity, which accounts for approximately 30% of cement costs. The implementation of alternative fuels such as RDF (waste derived fuel), MSW (municipal solid waste), agricultural and industrial waste for energy generation, regulated by the thermal substitution coefficient (TSR), is already underway in several organizations.

As the country increases its share of renewables in the energy mix, the sector can maximize the clean energy transition by reducing its dependence on fossil fuels and dirty energy. Additionally, the amount of specific energy consumption can be optimized using AI-powered technologies such as “Digital Twins.”

Process: Complete electrification of cement kilns is key to reducing emissions and operating costs. Recently, a Finnish technology company developed an innovative rotodynamic heater (RDH) technology and partnered with Indian cement giants to commercially implement the solution by 2025. RDH heats air, nitrogen and other gases to high temperatures outside the heater, eliminating the need for fossil fuels in the process heating.

Capable of reaching temperatures up to 1700°C, RDH is the main electrical technology suitable for replacing fossil fuel furnaces and furnaces, thereby reducing heat emissions by up to 40%.

Product: The development of environmentally friendly variants of cement is fundamentally changing the basic product. Green cement, like magnesium-based Ekkomaxx cement, is not only environmentally friendly, but also more durable and crack-resistant, making it better able to withstand extreme temperatures.

Products such as ECOPact, a low-carbon concrete, can support sustainability by reducing emissions by up to 70% compared to traditional methods. Alternative raw materials currently include options such as slag, clay, shells and industrial by-products. Although the use of fly ash in Portland cement is increasing, researchers are examining the use of pond ash with specific additives. This could increase the use of coal waste from 40% to almost 80%, reducing environmental impact and clinker consumption.

In addition, researchers are also investigating electric cement, a concept in which waste concrete from demolished buildings is recycled as flux in an electric arc furnace to produce new, reactivated steel slag cement.

Security: Another technology that may prove beneficial in reducing carbon emissions is carbon dioxide utilization and storage (CCUS). This technology captures emissions from industrial processes and stores or disposes of them to prevent them from entering the atmosphere.

A major cement producer is currently working on this technology to reduce greenhouse gas emissions during its production
facility in Tamil Nadu. They cooperated with the CCUS technology provider to build the largest carbon dioxide capture installation in the cement industry, capturing and utilizing up to 500,000 tons of CO 2 per year.

Collectively, new-age technologies have the potential to revolutionize cement production. While the initial costs may deter some Indian companies, the long-term benefits outweigh the investment. The success of these initiatives depends on active cooperation between government and industry.

To boost green initiatives, the government can facilitate memorandums of understanding on new technologies, promote research and development through incentives, provide subsidies and give more technical weight to green cement companies in infrastructure projects.

At the same time, the cement industry should complement government efforts by making green cement/sustainability a core objective, using measurable key performance indicators (KPIs) such as Thermal Substitution Ratio (TSR), leveraging AI-enhanced tools such as ‘Digital Twins’.

Additionally, cement producers need to work on creating new blends with alternative fuels and raw materials to reduce emissions. Other industries should also work together to develop sustainable solutions and promote green cement purchases.

A consistent approach to the Go Green initiative is likely to reduce emissions by 50-70%, to the benefit of all stakeholders. India must develop to meet its present needs without compromising the ability of future generations to meet their own needs.

(This article was written by Inayak Vipul, Partner, EY-Parthenon India)

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