is Profitable

R . B hargava C hief climate officer S hree C ement Limited, B eawar, (R aj.) India

SMS Convention Centre, Jaipur

4th June 2010

Presentation Sequence
Shree Profile Indias Response to Climate Change Indian Industrys Response Shree Cement Approach Further needs to mitigate CO2 Emissions Conclusion

Shree Profile
A Snap Shot

Among the Top Five Cement Groups in India. One of the Highest Operating Profit Margin. Turnover- Rs. 3632 Cr.

Largest Cement Player of North India. Operating at Beawar, Ras & Khushkhera, Suratgarh & Roorkee. Entered into Merchant power business.

Shree Profile
Rising Trend
14 12 Mln tonnes 10 8 6 4 2 0 2005-06 2006-07 2007-08 Years 2008-09 2009-10 3.2 4.9 6.3 9.1 12

Shree Profile
Rising Trend
Addressing Power Shortage in the Country India Facing acute shortage of power Requires Large Capacity for growth Power
45 65

Shree Power Gen Capacity (MW)

260

102

119

Rapidly Augmenting Power Capacity Green Power Capacity - 46 MW from Waste Heat of Cement Plant Total Capacity GPP + Thermal to go up from 119 MW (Mar09) to 560 MW (Mar12)

Shree Profile
Achievements
Appointed Leader of Cement Sector Task Force for the 6th consecutive year by Bureau of Energy Efficiency, Ministry of Power, Government of India. Highest 4 star rating for 8th consecutive year under cement industry International Benchmarking by whitehopleman U.K. One of the lowest Power & Fuel Consumption in the industry. Recognized R&D Center by Govt. of India.

A GREA T FI N I S H . EVERY TI M E

Shree Profile
Proactive Actions
First company in the World to use innovative techniques to utilize 100% petcoke in its operations. First Cement company of the World to fetch Certified Emission Reductions (CERs) on its Clean Development Mechanism project Optimal Utilization of Clinker. First Indian cement company to issue Corporate Sustainability Report following the highest level A + for reporting triple bottom line performance.

Shree Profile
Proactive Actions

Fastest Project Execution Company First Cement plant of 1 MTPA capacity commissioned in world record time of 367 days.

Shree Profile
Management Systems
ISO-14001 Environmental Management System OHSAS-18001 Occupational Health & Safety SA- 8000 Social Accountability ISO-9001 Quality Management BS-EN 16001 Energy Management System
MANAGEMENT SYSTEMS

First Process & Cement manufacturing Industry in World to be awarded an Energy Management System Certification by British Standard Institute UK.

Shree Profile
Corporate Policies
A focused policy driven company for proper and systematic working through following policies. Energy Environment Water CSR Policy Quality Health & Safety Human Resource IT HIV/AIDS SA 8000 Policy : Continuous reduction in GHG emission : Better Climate & Conservation of resources : Conservation of water and water harvesting : Concern for Corporate Sustainability : Leading to Consistent Improvement : Zero Accident status : Empowering people : ERP driven processes : Concern for Stake holders : Concern for Stake holders

Clean and Green is Profitable

Climate Change
Economy & Security Impacts
In addition to environment impact Climate Change has direct/ indirect impact on almost all key sectors & has direct bearing on economic growth.

Climate Change also has linkages with security issues i.e. regional political tensions & conflicts.

Presently overdependence on fossil fuel resources (the most important source of GHGs) gives rise to energy vulnerability, resulting in a concern for energy security worldwide.

Indias Response
Commitment
As developing country, India does not have any binding emission reduction targets. India is an active participant in the climate change negotiations Signed the United Nations Framework Convention for Climate Change (UNFCCC) Ratified Kyoto Protocol on August 26,2002. The country is the second largest supplier of carbon credits under the Kyoto Protocols CDM.

Indias Response
Race towards Low Carbon Economy
Indias response to climate change is broad-based, enabling the country to move towards a low-emission growth trajectory. India is emerging as the global hub for further energy efficiency in industry, buildings, residential and commercial sectors. India is playing a key role in the identification, development and utilization of new and renewable energy sources. Indian Government has taken a stand that developmental issues and concerns should be integrated into climate change framework, if the issues are to be effectively addressed

Contd..

Indias Response
Policies and Programmes Regulatory Framework Addressing Climate Change
The Ministry of Environment & Forest is the nodal ministry for all environment related policies and programmes . India has a wide gamut of policies and programmes towards addressing climate change issues
Improvement of urban air quality. Enhanced forestation. Promotion of renewable energy technologies. Energy efficiency.
Contd.

Indias Response
Policies and Programmes National Action Plan for Climate Change (NAPCC)
In late June 2008, India unveiled its first NAPCC. The plan which runs through 2017, outlines existing and future policies & programs addressing climate. It has following eight core national missions
Solar Energy Enhanced Energy Efficiency Sustainable Habitat Conserving Water Sustaining the Himalayan Ecosystem Creating a Green India Sustainable Agriculture Establishing a Strategic Knowledge Platform for Climate Change.

NAPCC offers Tax Incentives to encourage industrial energy efficiency, including differential rates for energy efficient appliances.

Indias Response
CDM Contribution
Registered CDM Projects (as on 25 May 2010)

Philippines 2% Indonesia Malasia 2% 4% Mexico 5%

Others 18%

China 38%

Brazil 8%

India 23%

Source: unfccc.int

Climate Change & Industries

Business Response Organizations formulating climate change strategies must.
Understand their Issues

Minimise their Risks

Maximize their opportunities

Climate Change & Industries

Why Industry should response to Climate Change
Improved Energy Efficiency Cost Saving Enhanced Reputation & Leadership Reduced Risks from Legislation Competitive Advantage Avoid Costs of Physical Risk & Stranded Assets

Indian Industrys Response

Systems Adopted
Standards and Labelling Programme for Appliances

Energy Conservation for Building Code

Energy Audits of Large Industrial Consumers

Voluntary Disclosure of GHG Emissions by Indian Companies.

Active Participation in the CDM Process

Shree Cement Approach

Eco-Consciousness
A focused Strategy for Climate Security
Promote Energy Conservation Produce Green Cement Use of Alternatives Greening the Surrounding
Efforts for Better Environment

Install Green Power Plants Front-runner in CDM Thrust on Renewable Water Management Practices
Zero Disposal on Land Practice

Low Carbon Economy

Promote Green Drive

Create Awareness among Future generation

Clean and Green is Profitable

Shree Cement Approach

Information Sharing
First Indian Cement Company to join Cement Sustainability Initiatives of WBCSD

Climate Protection Fuels and Raw Materials Use Employee Health and Safety Emission Reduction Local Impacts on Land and Communities Communication and Progress Reporting Concrete Recycling

Shree Cement Approach

Information Sharing
Member of Cement Sector Task Force of APP-7, formed by Govt. of India, USA, China, Japan, Korea, Canada and Australia

Global Reporting Initiative for improving sharing of information on Environment and Social issues

Endorsed the global round table Joint Statement on climate change to discuss issues for shaping public policy on climate change.

Shree Cement Approach

Information Sharing

Judicious use is the wise use

Shree Cement Approach

Energy Management
Identification of Energy conservation areas in the plant. Prioritization of identified energy conservation areas. Finding out of technical feasibility including, market availability and cost benefit analysis. Renewable energy identification Benefits : Implementation of Energy Monitoring Plan and energy analysis. Cost benefits. Development Without Destruction

BS-EN 16001

Shree Cement Approach

Energy Management
Energy monitoring & management system
Monitoring Daily: -Equipment wise , Section wise& Unit wise specific power consumption Monthly: -Performance review comparison with target/Benchmark. -Trend analysis -ENCON scheme review Survey/Audits Awareness programme Training Brain Storming Suggestion Scheme

Idea/information sharing with other industries/manufacturers

Action Plan &Target Setting

Shree Cement Approach

Energy Management Efforts
Installed air dryer and controller in the compressor Unit-III Replaced roller table liner in Coal Mill II with new one Installed VFD in 6 Dust collectors at Packing Plant Replaced old motors with energy efficient motors in Kiln I Optimized Belt Conveyor speed & capacity utilization, in Reclaimer I Installation of High Efficiency Fan in main ESP Fan in Kiln II (MW/ Annum)

A Few Efforts

Power Saving
156 897 811 772 296 359

CO2 Saving
(Ton/ Annum)

203 1166 1054 1004 385 466

Judicious use is the wise use

Shree Cement Approach

Energy Management Power Consumption & CO2 Reduction
Power Consumption
80 78 76 74
t m e C f n o T / h W K

79 76 07-08 08-09 75 09-10

72

Judicious use is the wise use

Shree Cement Approach

Waste Management
Commissioning of 46 MW Green Power plant. Utilizes waste heat emitted from cement manufacturing process 349916 tons/ annum CO2 emission reductions

Green Power Plants

Largest Green Power capacity in World Cement Industry except China

Give a hoot, please, don't pollute!

Shree Cement Approach

Waste Management
Use of Alternatives
Use of 100% Petcoke, a waste from Oil Refineries, thereby conserving Fossil Fuels. Maximized use of slag, a waste from smelting plant, thereby conserving iron ore. Started manufacturing synthetic gypsum to replace mineral gypsum (FIRST TIME IN INDIA) Developing new environment friendly alternative raw materials & conserving natural resources.
There is cash in the trash...

Shree Cement Approach

Waste Management
Use of Alternatives

Alternatives
43 MW Green Power Plant (WHR based) Fly ash Petcoke Slag from Smelter

Percentage
49.5 % of total power used 30 32 % replacement of clinker 100 % replacement of coal 2.4 % of Raw Material

Shree Cement Approach

Front-runner in CDM
Optimal Utilization of Clinker registered by UNFCCC as first of its kind project in World Cement Industry Issued Certified Emission Reduction Units for first time for this category of projects in World Cement Industry Issued 4.5 Lac Certified Emission Reduction Units Registration of Green Power Projects as CDM Project in pipeline

When We Put the Environment First, Development Will Last

Shree Cement Approach

Thrust on Renewable

Installed Solar Lights and Heaters in Colony

Development Without Destruction

LED based lights in plant

Shree Cement Approach

Environment Management
Greening the Surrounding

66.52 hectare reclaimed and planted 84866 saplings. No abandoned area in mines.

Developed 35% of plant area as Green Belt. 36729 Tons of CO2 has been sequestered.
When We Put the Environment First, Development Will Last
Cont

Shree Cement Approach

Environment Management
Water Practices

Conservation
Replaced conventional Cooling System with Air Cooled Fluid System.

Recycling
Installed of 2nd R.O. System at power plant.

Recharging
Constructed various Rain Water Harvesting Structures like Check Dams, Open & Injection well. Developed water harvesting in abandoned mines. Adopted Roof Rain Water Harvesting System.

Installed WHRB, resulting in water saving of 720 KLD in GCT Use of additives to check the high rate of evaporation

Installed STP for treatment of domestic waste of colony. Treated water is reused in irrigation, quenching & for water spray.

Assist Govt. for rejuvenation of local Water Bodies

Recycle it all--no matter how small!

Cont

Shree Cement Approach

Environment Management
Rock Breakers to suppress fly rocks, vibration and dust generation

Fugitive Control

Covered Storage and Belt Transportation System.

Covered unloading hoppers with atomized water spray system

All connecting roads & truck parking areas are concreted

In addition at Mines we use Road Compactor to reduce fugitive emissions, which is rare.

When We Put the Environment First, Development Will Last

Cont

Shree Cement Approach

Shree CSR Promoting Transparency
First Indian Cement Company to publish Corporate Sustainability Report according to GRI guideline.

Our Earth - Our Future - Just Save It

Shree Cement Approach

HR Management
Involving the children & women force in campaigning for Environment protection through
Poster Competitions

Involve People

Essay Competitions

Speech Competitions

Apart from these we organize rallies & meeting to spread awareness in the community.

Shree Cement Approach

HR Management
Celebration of Earth Day to create awareness for Global Warming among people.

Involve People

The World Environment day (5th June,2009): Agenda was to give a human face to environmental issues.

Earth Hour Celebration (27th March 2010): Shree Youth club took an initiative to celebrate Earth Hour. A rally was organized with campaign to switch off the lights for one hour.

Shree Cement Approach

Futuristic Approach to Mitigate CO2 Emissions
Cultivation of micro algae for 5% replacement of petcoke. Installation of 100 MW Solar Power Plant. LED and Solar power for lighting. Installation of Flue Gas Desulphurization Unit at Power Plant. Adoption of Powitech Process Optimization with Intelligent Technologies.

Future focus, bright future

Shree Cement Approach

Shrees Initiative to Construct Green Buildings
ree, dings at Sh g buil in g ll up comin In a ilding is be een b u ncept of gr the co d. verall incorporate educe the o on will r his concept uilt environment T he b impact of t h and the natural lt human hea by: t nd environmen gy, water, a en er iently using Effic rces other resou lth and cupant hea uctivity oc Protecting ro d employee p improving n an d ste, pollutio n. a Reducing w al degradatio t environmen

All above initiative are business initiatives and Contributing to Low Carbon Economy which leads us towards Total Prosperity & Climate Security

Further needs to Mitigate CO2 Emissions

Development for the 21st Century
Goal Energy end-use and infrastructure Near- term
High efficiency appliances High efficiency boiler & combustion systems

Mid- term
Fuel cell vehicles & H2 fuels Energy storage for load leveling

Long- term
Integration of industrial heat, power, process etc. Superconducting transmission & equipment Widespread renewable energy Bio-inspired energy & fuels Track record of successful CO2 storage experience Integrated waste management system Zero emission agriculture Fully operational integrated MM system architecture

Energy Supply

Cost competitive solar PV Advance fission reactor and fuel cycle technology Oxy fuel Combustion Post combustion capture Methane to market Precision Agriculture

H2 Co-production from Coal/Biomass

Capture Storage and Sequestration Other Gases

CO2 transport infrastructure Advance landfill gas utilization Substitute for SF6 Direct measurement to replace proxies & estimators

Measure and Monitor

Low cost sensors and communications

Conclusion
Developing regional greenhouse gas inventories by
GHG Accounting Mass awareness ( capacity Buildings at Various levels) Information concerning production output Emissions within the industry

Identify Carbon footprint of organizations activities ,product and services. Set benchmarks based on national consensus according to the carbon footprint of different organizations.
Contd..

Conclusion
Disseminate technical knowledge and transfer know how on recent technologies .

Promote the use of carbon neutral alternative fuels and raw materials

Promote cogeneration from waste heat.

Increase Participation of developing country by

Encouraging voluntary action

Framing policies and framework for mitigation.

Contd..

Conclusion
Carrying out Energy Efficiency measures and adopting renewable energy technologies Transparency of market mechanism
Streamlining CDM approval process. Ensuring continuity of CDM beyond 2012.

Emphasis on role of developed countries, financial institutions and international bodies Funding research on clean technology as well as renewable energy projects.
Establishing network of R&D institutes Aiding transfer of environmentally clean technology.

Recognitions
National Safety Award Excellent Water Efficient Unit Awarded
by CII Awarded by Honble President of India, Smt. Pratibha Patil.

Energy Conservation Award - First prize for

Energy Conservation by Bureau of Energy Efficiency.

Golden Peacock Award-2009 For climate

security

Energy Efficiency Award - Awarded by CII Sustainability Award Quality Excellence Award
By National Council for Cement & Building Material Commendation Certificate for Strong Commitment for Sustainability by CII

EDGE Award 2009Awarded by Network Computing Magazine for "Top IT Implementations in India"

Thanks No one can win the battle against climate change acting alone. Collective action is not an option but an imperative.
Visit us at: www.shreecementltd.com Contact us at: bhargavr@shreecementltd.com