Elect Enrgy Effic Cement 05+23

IMPROVING THERMAL AND ELECTRIC
ENERGY EFFICIENCY AT CEMENT PLANTS:

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TABLE OF CONTENTS
ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
ACKNOWLEDGMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
ABSTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi
1 THE CEMENT MANUFACTURING PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Raw Material Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Fuel Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Clinker Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.4 Clinker Cooling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.5 Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2 ENERGY EFFICIENCY TECHNOLOGIES AND MEASURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 Raw Material Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.1.1 High-Efficiency Fans and Variable Speed Drives for Mill Vents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.1.2 Pre-grinding for Ball Mills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 Fuel Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.2.1 High-Efficiency Fans and Variable Speed Drives for Mill Vents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.3 Clinker Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.3.1 Process Controls and Optimization .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.3.2 Modern Multi-Channel Burners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.3.3 Low-Pressure Drop Cyclones for Suspension Preheaters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.3.4 Waste Heat Recovery for Power Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.3.5 Oxygen Enrichment Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.4 Clinker Cooling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

2.4.1 Optimizing Heat Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.4.2 Variable Speed Drives for Cooler Fans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2.5 Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2.5.1 Process Control and Management in Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.5.2 Replacing a Ball Mill with a Vertical Roller Mill, High-Pressure Grinding Rolls,
or Horomill® for Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.5.3 Optimizing the Operation of a Cement Mill .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.5.4 High-Pressure Roller Press as a Pre-grinding Step for Ball Mills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2.5.5 Improved Grinding Media for Ball Mills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
2.5.6 High-Efficiency Classifiers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.5.7 High-Efficiency Fans for Cement Mill Vents .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Improving Thermal and Electric Energy Efficiency at Cement Plants: International Best Practice i
2.6 General Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.6.1 High-Efficiency Motors and Efficient Drives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.6.2 Variable Speed Drives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.6.3 Preventative Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.6.4 Compressed Air System Optimization and Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.6.4.1 Compressed Air System Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

2.6.4.2 Reducing Leaks in Compressed Air Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.6.4.3 Compressor Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3 ENERGY EFFICIENCY PROJECT IMPLEMENTATION BARRIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4 BUSINESS MODELS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.1 Direct Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

4.1.1 Direct Loans (Senior Debt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.1.2 Subordinated Debt Financing (Mezzanine Financing) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.1.3 Equity Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.1.4 Leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.1.5 Partial Loan Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.2 Energy Performance Contracting Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

4.2.1 Definitions and Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.2.2 Shared Savings Energy Performance Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.2.3 Guaranteed Savings Energy Performance Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4.2.4 Chauffage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4.2.5 Comparative Analysis of the Different Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
4.3 Public-Private Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
4.4 Special Purpose Vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
5 INTERNATIONAL BEST PRACTICE BUSINESS MODELS FOR IMPLEMENTING

ENERGY EFFICIENCY PROJECTS IN INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
5.1 Lending Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

5.1.1 Promoting an Energy Efficiency Market in Chile .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
5.1.2 China Utility-Based Energy Efficiency Program (CHUEE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
5.1.3 Bangkok Mitsubishi UFJ Lease Ltd (BMUL) Risk-Sharing Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5.2 Equity Financing (Private Equity, Risk/Venture Capital, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

5.2.1 Clean Resources Asia Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.3 Partial Guarantee Mechanism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

5.3.1 The Energy Efficiency Guarantee Mechanism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.3.2 Krakow Energy Efficiency Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5.4 ESCO Business Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

5.4.1 Green for Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
6 BRAZILIAN MECHANISMS TO SUPPORT THE USE OF DIFFERENT BUSINESS MODELS . . . . . . . . . . . . . . . 56
6.1 Taking on Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
6.2 Energy Performance Contracting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
ii Improving Thermal and Electric Energy Efficiency at Cement Plants: International Best Practice
LIST OF FIGURES
Figure 1: Cement Production Process Flow Schematic and Typical Energy Efficiency Measures . . . . . . . . . . . . . . . . . . . . . 2
Figure 2: Rotary Cement Kiln (Dry Process with Cyclonic Preheaters) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Figure 3: Schematic Depiction of Control Points and Parameters in a Kiln System Control and Management System . . . . . . 9
Figure 4: Typical Waste Heat Recovery System Using Steam Rankine Cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 5: Waste Heat Recovery Installations in the Cement Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 6: Installed Costs for Waste Heat Recovery Systems .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 7: Installed Costs for Chinese Stem-based Waste Heat Recovery Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 8: Fixed Static Inlet Section for a Clinker Cooler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Figure 9: Optimized Cooling Air Distribution for a Typical Eight-compartment Reciprocating Grate Cooler . . . . . . . . . . 22
Figure 10: Power Consumption of Fan Installations with Different Control Methods . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Figure 11: Measurement and Manipulation Points in a Process Control System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure 12: High-Pressure Roller Press for Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 13: Horomill® Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure 14: Basic Layout of Cement Grinding Using Horomill® .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Figure 15: Energy Savings Potential of Vertical Roller Mills versus Ball Mills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Figure 16: Energy Savings Potential of Horomill® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Figure 17: High-Pressure Roller Press as a Pre-grinding Step for Ball Mills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Figure 18: High-Pressure Roller Press as a Semi-finish Pre-grinder with Two-stage Separator . . . . . . . . . . . . . . . . . . . . . 32
Figure 19: Schematic of a High-Efficiency Separator/Classifier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Figure 20: Efficiency Ranges for Different Motor Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Figure 21: Structure of Various Financing Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Figure 22: Partial Loan Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Figure 23: Shared Savings Financial Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Figure 24: Guaranteed Savings Financial Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Figure 25: “Chauffage” Financial Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Figure 26: Special Purpose Vehicle Financial Model .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Figure 27: Institutional Arrangements of CHUEE Program .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Figure 28: Krakow Energy Efficiency Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Figure 29: Green for Growth Fund Institutional Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Improving Thermal and Electric Energy Efficiency at Cement Plants: International Best Practice iii
LIST OF TABLES
Table 1: Specific Thermal Energy Consumption by Rotary Kiln Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 2: Production Gains Achieved in Different Plants Using Oxygen Enrichment Technology .. . . . . . . . . . . . . . . . . . . 18
Table 3: Improvements in Alternative Fuel Use with the Use of Oxygen Enrichment . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table 4: Impact of Oxygen Injection on Alternative Fuels and Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 5: Monitor and Control Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Table 6: Use of Expert Control System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Table 7: Energy Performance Contracting Models .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
ABBREVIATIONS
AC Alternating Current IFC International Finance Corporation

BNDES Banco Nacional de Desenvolvimento IFRS International Financial Reporting Standards
Econômico e Social (National Bank kWh Kilowatt hour
for Social and Economic Development) MJ Megajoule
DC Direct Current MW Megawatt
ESCO Energy Services Company ORC Organic Rankine Cycle
FASB Financial Accounting Standards Board PID Proportional–integral–derivative
GJ Gigajoule PP&E Property, Plant, and Equipment
IASB International Accounting Standards Board U.S. GAAP U.S. Generally Accepted Accounting Principles
iv Improving Thermal and Electric Energy Efficiency at Cement Plants: International Best Practice
ACKNOWLEDGMENTS
This report was produced in cooperation between IFC, SNIC (Sindicato Nacional da Indústria do Cimento), ABCP
(Associação Brasileira de Cimento Portland), and INT (Brazil’s National Institute of Technology).
Development of the report was managed by Alexander Sharabaroff (IFC), Gonzalo Visedo (SNIC), and Marcelo
Pecchio (ABCP). The primary authors include Stephanie Nour and Pierre Langlois of Econoler, Bruce Hedman,
and Victor Turnell.
Professor Dr. José Goldemberg, Dr. Mauricio Francisco Henriques Junior and Fabrício dos Santos Dantas of INT
shared invaluable insights to the report.
The team would like to acknowledge a tremendous contribution to this report by Michel Folliet (IFC), Jigar Shah
(IFC), José Otavio Carvalho (President, SNIC), Renato José Giusti (President, ABCP), Hugo da C. Rodrigues Filho
(ABCP), and Antonia Jadranka Suto (ABCP); Araceli Fernandez Pales, Kira West, and Steffen Dockweiler of the
International Energy Agency (IEA); and Alexios Pantelias, John Kellenberg, Jeremy Levin, Luis Alberto Salomon,
Sivaram Krishnamoorthy, Yana Gorbatenko and Alexander Larionov of IFC.
ABSTRACT
This report and an accompanying report on alternative fuels provide a summary of international best practice
experience in the cement sector and focus on specific technical measures that could be implemented by cement plants
to reduce their operating costs and improve their carbon footprints. The reports provide a plethora of practical
information from implemented projects and include detailed technical descriptions, capital and operating costs, and
case studies and references from locations where the measures have been implemented. A combination of general and
in-depth information will make these reports a helpful read to both management and technical and operating personnel
of cement plants as well as to a larger range of stakeholders.
Improving Thermal and Electric Energy Efficiency at Cement Plants: International Best Practice v
FOREWORD
Cement is paramount for economic development and poverty reduction in emerging markets. Along with aggregates
and water, cement is the key ingredient in the production of concrete, and, as such, is an essential construction material
that enables large infrastructure projects in energy, water, and transport, as well as, importantly, the construction of
modern buildings and urban infrastructure. Given the rapid urbanization rates in developing countries, cement is
crucial for delivering on the climate-smart cities agenda. Emerging markets have been rapidly increasing their cement
use and now account for over 90 percent of cement consumption worldwide (4.1 billion tons in 2016).
Cement accounts for at least 5 percent of anthropogenic emissions of greenhouse gases, and, according to some
estimates, this share may be even higher. At the same time, energy-related expenses in the cement sector, mostly
on fossil fuels and electricity, account for 30 to 40 percent of the industry’s cash costs. While current energy
prices are still recovering from the global financial and economic crises, there is no doubt that they will continue
to increase in the long run. In recent years, the cement industry has been successful in reducing its operating costs and
improving its carbon footprint (emissions per unit of output) by improving energy efficiency, increasing the use
of alternative fuels, and deploying renewable energy sources.
With a cumulative investment portfolio in cement of over $4.2 billion, IFC has accumulated a vast experience in the
industry, including in sustainable energy projects. To share its knowledge with external stakeholders and to promote
sustainable practices in the sector, IFC commissioned two studies on international best practice in the cement sector,
covering thermal and electric energy efficiency, and alternative fuels. These studies were developed as part of the Brazil
Low Carbon Technology Roadmap led by the National Cement Industry Association of Brazil (SNIC), the Brazilian
Association of Portland Cement (ABCP), the International Energy Agency (IEA), the Cement Sustainability Initiative
(CSI) of the World Business Council for Sustainable Development (WBCSD), and IFC.
This report, and an accompanying report on alternative fuels, provide a summary of international best practice
experience in the cement sector and focus on specific technical measures that could be implemented by cement plants
to reduce their operating costs and improve their carbon footprints. The reports provide a plethora of practical
information from implemented projects and include detailed technical descriptions, capital and operating costs, and
case studies and references from locations where the measures have been implemented. A combination of general and
in-depth information will make these reports a helpful read to both management and technical and operating personnel
of cement plants as well as to a larger range of stakeholders.
Michel Folliet Milagros Rivas Saiz Jigar Shah

Chief Industry Specialist Manager Principal Industry Specialist
Cement, Manufacturing, Agriculture and Services Cross Industry Advisory Energy Efficiency, Climate Business Department
vi Improving Thermal and Electric Energy Efficiency at Cement Plants: International Best Practice
THE CEMENT MANUFACTURING PROCESS
1
Cement production is a resource-intensive practice involving 1.1 RAW MATERIAL PREPARATION
large amounts of raw materials, energy, labor, and capital.
Raw material preparation provides a mixture of raw materials
Cement is produced from raw materials such as limestone,
and additives that has the right chemical composition and
chalk, shale, clay, and sand. These raw materials are
particle size distribution necessary for clinker production. For
quarried, crushed, finely ground, and blended to the correct
plants that receive their raw materials already crushed, this
chemical composition. Small quantities of iron ore, alumina,
stage usually involves grinding (milling), classification, mixing,
and other minerals may be added to adjust the raw material
and storage. Raw material preparation is an electricity-intensive
composition. Typically, the fine raw material is fed into a
production step requiring about 25 to 35 kilowatt hours (kWh)
large rotary kiln1 (cylindrical furnace) where it is heated
per ton of raw material, although it could require as little as 11
to about 1,450 degrees Celsius (2,640 degrees Fahrenheit).
kWh per ton.2
The high temperature causes the raw materials to react and
form a hard nodular material called “clinker.” Clinker is After primary and secondary size reduction, the raw materials
cooled and ground with gypsum and other minor additives are further reduced in size by grinding. The grinding differs with
to produce cement. the pyroprocessing process (kiln type) used. In dry processing, the
materials are ground into a flowable powder in horizontal ball
Beyond the mining of the raw materials, there are five major
mills or in vertical roller mills. In a ball mill, steel-alloy balls are
process steps in cement production (see Figure 1). Each of
responsible for decreasing the size of the raw material pieces in a
these steps has specific energy requirements and consumption
rotating cylinder. Rollers on a round table provide size reduction
patterns, as well as various energy efficiency measures that
in a roller mill. Waste heat from the kiln exhaust or the clinker
can be applied to reduce energy use and increase productivity
cooler vent, or auxiliary heat from a standalone air heater before
depending on the characteristics of and conditions at each
pyroprocessing, is often used to further dry the raw materials.
individual cement plant. The remaining energy consumption
The moisture content in the raw material feed of a dry kiln is
at cement plants is used for final-product packaging,
typically around 0.5 percent (0 percent to 0.7 percent).
lighting, and building services. These are typically minor
electricity uses compared to the major electricity and fuel
1.2 FUEL PREPARATION
consumption in the five major process steps.
Solid fuel preparation involves optimizing the size and moisture
content of the fuel fed to the pyroprocessing system of the
kiln. Solid fuels are typically coal, petrocoke, and/or a mix
of alternative fuels. Vertical roller mills are the dominant
choice for solid fuel grinding, with a worldwide share of fuel
processing capacity of around 90 percent. Ball mills, often
1 Clinker can be produced in many different pyroprocessing
used for fuels with poor grindability, make up the remaining
systems or kiln types. There are two basic kiln configurations—
vertical (or shaft) kilns and rotary kilns—and many variations
of each type are in use around the world. Generally, shaft
kilns are an older, smaller, less-efficient technology and have 2 U.S. Environmental Protection Agency (EPA), Available
been phased out in most countries. Modern cement plants use and Emerging Technologies for Reducing Greenhouse Gas
variations on the dry rotary kiln technology, incorporating Emissions from the Portland Cement Industry (Washington,
various stages of preheating and precalcining. DC: October 2010).
Improving Thermal and Electric Energy Efficiency at Cement Plants: International Best Practice 1
Figure 1: Cement Production Process Flow Schematic and Typical Energy Efficiency Measures
2 The Cement Manufacturing Process

Source: Institute for Industrial Productivity, Industrial Energy Technology Database, http://ietd.iipnetwork.org/content/cement.
10 percent.3 Increasingly, alternative waste and byproduct Rotary kilns are divided into two groups, dry process and wet
streams—such as waste industrial oils and solvents, waste process, depending on how the raw materials are prepared.
plastics, fractions of household waste, used tires, wastewater In wet process systems, raw materials are fed into the kiln as
treatment sludge, and others—are being used as fuel. Some slurry with a moisture content of 30 to 40 percent. Wet process
of these may require additional preparation infrastructure. kilns have much higher fuel requirements due to the amount
of water that must be evaporated before calcination can take
1.3 CLINKER PRODUCTION place. To evaporate the water contained in the slurry, a wet
process kiln requires additional length and nearly 100 percent
Clinker production, or pyroprocessing, transforms raw materials
more kiln thermal energy compared to the most-efficient dry
(primarily limestone) into clinker (lime), the basic component of
kiln (see Table 1). Wet process kilns tend to be older operations.
cement, and releases carbon dioxide during the transformation.
Clinker production is the most energy-intensive stage in cement
Three major variations of dry process systems are used
production, accounting for more than 90 percent of the total
worldwide: long dry kilns without preheaters, suspension
energy use and virtually all of the fuel use in the industry. Clinker
preheater kilns, and preheater/precalciner kilns. In suspension
is produced by pyroprocessing the raw materials in large kilns.
preheater and preheater/precalciner kilns, the early stages of
Three important processes occur with the raw material mixture
pyroprocessing occur in the preheater sections, a series of vertical
during pyroprocessing. First, all moisture is driven off from the
cyclones (see Figure 2), before materials enter the rotary kiln. As
materials. Second, the calcium carbonate in limestone dissociates
the raw material is passed down through these cyclones, it comes
into carbon dioxide and calcium oxide (free lime); this process is
into contact with hot exhaust gases moving in the opposite
called calcination. Third, the lime and other minerals in the raw
direction, and, as a result, heat is transferred from the gas to the
materials react to form calcium silicates and calcium aluminates,
material. Modern preheater/precalciner kilns also are equipped
which are the main components of clinker. This third step is
with a precalciner, or a second combustion chamber, positioned
known as clinkering or sintering.
between the kiln and preheaters that partially calcines the
material before it enters the kiln so that the necessary chemical
The main kiln type in use throughout the world is the rotary
reactions occur more quickly and efficiently. Depending on the
kiln (see Figure 2). In rotary kilns, a tube with a diameter of up
drying requirements of the raw material, a kiln may have three
to eight meters is installed at a three- to four-degree angle that
to six stages of cyclones with increasing heat recovery with each
rotates one to five times per minute. The kiln is normally fired at
extra stage. As a result, suspension preheater and preheater/
the lower end, and the ground raw material is fed into the top
precalciner kilns tend to have higher production capacities and
of the kiln, from where it moves down the tube countercurrent
greater fuel efficiency compared to other types of systems, as
to the flow of gases and toward the flame end of the kiln. As the
shown in Table 1.
raw material passes through the kiln, it is dried and calcined,
then finally enters into the sintering zone. In the sintering (or
1.4 CLINKER COOLING
clinkering) zone, the combustion gas reaches a temperature of
1,800 to 2,000 degrees Celsius. Hot clinker is discharged from Once the clinker is discharged to the clinker cooler from the
the lower end of the kiln and is immediately cooled in large air kiln, it is cooled rapidly to minimize glass phase formation and
coolers to ensure clinker quality and to lower it to handling to ensure maximum yield of alite (tricalcium silicate) formation,
temperatures for downstream equipment. Cooled clinker is an important component for cement-hardening properties.
combined with gypsum and other additives and ground into a The primary cooling technologies in use today are various
fine gray powder called cement. Many cement plants include the configurations of grate coolers and older planetary coolers. In
final cement grinding and mixing operation at the site. Others the grate cooler, the clinker is transported over a reciprocating
ship some or all of their clinker production to standalone cement- grate through which air flows perpendicular to the clinker
grinding plants situated close to markets. flow. In the planetary cooler (a series of tubes surrounding
the discharge end of the rotary kiln), the clinker is cooled in a
3 Ibid. countercurrent air stream. Planetary clinkers are slowly being
Figure 2: Rotary Cement Kiln (Dry Process with Cyclonic Preheaters)
Source: U.S. Department of Energy, Energy and Emissions Reduction Opportunities for the Cement Industry (Washington, DC: 2003).
phased out as new generations of grate coolers enter the market consumption in a clinker cooler is the electricity required to
with further operational and efficiency improvements. Modern push cooling air through the cooler.
clinker coolers route the heated air to the precalciner to serve
as preheated combustion air, or to the preheaters to preheat 1.5 FINISH GRINDING
raw material prior to entering the kiln. The primary energy
Once the clinker has been cooled, it must be crushed and mixed
with other materials to produce the final cement product. After
Table 1: Specific Thermal Energy Consumption by cooling, clinker is often stored in domes, silos, or bins. The
Rotary Kiln Type material-handling equipment used to transport clinker from the
Kiln Type Heat Input clinker coolers to storage and then to the finish mill is similar to
(MJ/ton of clinker)
equipment used to transport raw materials (for example, belt
Wet 5,860–6,280
conveyors, deep bucket conveyors, and bucket elevators). To
Long Dry 4,600
produce cement, clinker nodules are ground to the consistency
1-Stage Cyclone Suspension 4,180
of powder. If the blending material is not already in a powdered
Preheater
state, it also must be crushed and ground prior to blending.
Preheater Ordinary Portland cement is composed of 95 percent clinker
4-Stage Cyclone Suspension 3,550 and 5 percent additives. “Blended cement” is the term applied
Preheater to cement that is made from clinker that has been ground with a
4-Stage Cyclone Suspension 3,140 larger share of one or more additives. These additives can include
Preheater plus Calciner
such materials as fly ash from power plants, blast furnace slag
volcanic ash, and pozzolans. The finish grinding is typically done
Preheater plus Calciner plus High-
Efficiency Cooler in ball mills, ball mills combined with roller presses, vertical
6-Stage Cyclone Suspension <2,930 roller mills, or roller presses. Coarse material is separated in a
Preheater plus Calciner plus High- classifier and returned to the mill for additional grinding to
Efficiency Cooler
ensure that the final product has uniform surface area.
Source: Based on N. A. Madlool et al., “A Critical Review on Energy Use and
Savings in the Cement Industries,” Renewable and Sustainable Energy Reviews 15,
no. 4 (2011): 2,042–60.
4 The Cement Manufacturing Process

ENERGY EFFICIENCY TECHNOLOGIES AND MEASURES
2
As noted earlier, each of the process steps has specific • Reduce kiln exit gas losses
energy requirements and consumption patterns, as well as • Install devices to provide better conductive heat
various energy efficiency measures that can be applied to transfer from the gases to the materials, for example,
reduce energy use and increase productivity depending on the kiln
the characteristics and conditions of the cement plant. This • Operate at optimal oxygen levels (control
section profiles specific energy efficiency technologies and combustion air input)
measures that are applicable to the Brazilian cement industry.
• Optimize burner flame shape and temperature
The team first developed a draft candidate list of • Improve or add additional preheater capacity
technologies and measures to improve thermal and electric • Reduce moisture absorption opportunities for raw
energy efficiency in the cement sector based on information materials and fuels, avoiding the need to evaporate
contained in the Industrial Energy Technology Database, adsorbed water
augmented by additional research and resources. The
• Reduce dust in exhaust gases by minimizing gas
final list of priority technologies was determined in close
turbulence: dust carries energy away from the kiln where
coordination with the Brazilian counterpart based on
it is captured in dust collectors; the dust is recycled into
four main factors: 1) applicability to the Brazilian cement
the raw material and fed into the kiln where it is reheated
sector, which is already quite energy-efficient, 2) level of
potential fuel and electricity savings, 3) level of commercial • Lower clinker discharge temperature, retaining more heat
development, and 4) cost-effectiveness. The group of priority within the pyroprocessing system
technologies generally includes simpler and non-complex
• Lower clinker cooler stack temperature
approaches to efficiency improvements, such as advanced
control and automation systems, improved process • Recycle excess cooler air
optimization processes, variable speed drive installations, • Reclaim cooler air by using it for drying raw
high-efficiency electrical motors, and optimization of air materials and fuels or for preheating fuels or air
compression systems. • Reduce kiln radiation losses by using the correct mix
and more energy-efficient refractories to control kiln
It should be noted that the technologies and measures
temperature zones
detailed below are specific capital upgrades that can be
evaluated for a facility and that may be applicable depending • Reduce cold air leakage
on the condition of current equipment, plant layout, site- • Close unnecessary openings
specific conditions, and operating practices at the plant. In
• Provide more energy-efficient seals
general, a number of basic operating and maintenance best
• Operate with as high a primary air temperature
practices and objectives should be implemented as basic
as possible
operating principles for efficiency improvements, including:
• Optimize kiln operations to avoid upsets.
2.1 RAW MATERIAL PREPARATION ENERGY PERFORMANCE
2.1.1 HIGH-EFFICIENCY FANS AND VARIABLE SPEED Electrical energy consumption can be reduced by 0.36 kWh
DRIVES FOR MILL VENTS
per ton of clinker.4
TECHOLOGY/MEASURE DESCRIPTION
CAPITAL AND OPERATIONAL COSTS
Process fans are large electricity consumers in cement
manufacture, second only to grinding. With better materials Capital costs: $0.04 per ton of clinker
and design techniques for fans and with design optimization,

Operational costs: $05
fans with a higher operating efficiency are available for all
cement industry applications. While also providing higher
The specific costs of variable speed drives depend strongly
efficiencies, these modern fans are designed for higher wear
on the size of the system. In Europe, for systems over 300
resistance, lower material buildup and effects of erosion,
kilowatts (kW), the costs are estimated at €70 per kW ($75
better speed control, low vibration, and high operational
per kW) or less, and for systems in the range of 30 kW
stability. Fans with higher energy efficiency (82 to 84
to 300 kW, the costs are estimated at €115 to €130 per
percent) can replace inefficient process fans by both design
kW ($120 to $140 per kW).6 In India, the costs of high-
and by retrofit of energy-saving speed control devices,
temperature and low-temperature variable speed drives are
eliminating the control damper. Under a systems approach,
assumed to be $240 to $300 per kW and $120 to $200 per
pressure drops in inlet and outlet duct systems can be
kW, respectively. In India, the costs of high-efficiency fans
analyzed and reduced by using computational fluid dynamics
are $80 to $120 per kW.7
techniques, further improving fan system efficiencies.
FACTORS FOR IMPLEMENTATION
Precise design specifications, reduced margins between
This is generally a retrofit measure. Layout constraints can
requirement and capacity, and the use of appropriate control
pose certain barriers in some facilities, where the ideal duct
systems can offer a significant energy-saving opportunity.
system cannot be accommodated.
Optimum design margins for capacity and heat should
not be greater than 10 percent, resulting in improved COST EFFECTIVENESS PRIORITY
power consumption of up to 25 percent. To minimize this
High; however, applicability may be limited depending on
margin and offer precise process controls, the choice of an
the efficiency of current fan and vent systems. Economics
appropriate speed control device becomes essential. Speed
also depends on the power price.
control is the most effective means of capacity control
in centrifugal equipment; the choice of the right speed CASE STUDY
control mechanism offers additional margins for efficiency
At Birla Vikas Cement Works, owned by Birla Corporation
improvements. Variable speed drives have been demonstrated
Limited, India, the older and inefficient raw mill vent fans
to be the most suitable speed control mechanism, considering
were replaced by more-efficient fans, and variable speed
the precise control offered and the low inherent system
energy losses.
4 W. R. Morrow et al., Assessment of Energy Efficiency
Improvement and CO2 Emission Reduction Potentials in India’s
Process fans, with efficiency levels of 82 to 84 percent Cement Industry (Berkeley, CA: Lawrence Berkeley National
Laboratory, 2013).
and with an appropriate speed control mechanism, would
5 Ibid.
be the preferred option for optimum energy efficiency in
6 E. Worell and C. Galitsky, Energy Efficiency Improvement and
raw mills. Retrofits to replace low-efficiency fans with
Cost Saving Opportunities for Cement Making: An ENERGY
fans of higher operating efficiency, and the installation of STAR® Guide for Energy and Plant Managers (Washington,
DC: 2008).
appropriate speed control devices, are generally paid back
by resulting energy savings. 7 Cement Sustainability Initiative (CSI), Existing and Potential
Technologies for Carbon Emissions Reductions in Indian
Cement Industry (2013).
6 Energy Efficiency Technologies and Measures

drives were installed to control the air volume. These material hardness and a medium product fineness of 12
reduced the energy consumption by 0.36 kWh per ton of percent residue on a 0.09 millimeter screen.11
clinker. The capital cost for the measure was around $0.033
per annual ton of clinker capacity.8 However, many ball mills remain in use in raw material
grinding and are not candidates for complete replacement.
2.1.2 PRE-GRINDING FOR BALL MILLS Most ball mills have two chambers, for coarse and fine
TECHNOLOGY/MEASURE DESCRIPTION grinding. Grinding ball size and distribution are designed
and adjusted considering, among others, raw material
The main trends in grinding processes (encompassing all
conditions and mill dimensions. However, the energy
processes including raw material and fuel preparation and
efficiency in the coarse grinding chamber is extremely poor,
finish grinding) in the cement industry are toward higher
and there is a limitation to improving the performances
efficiency, reduction of power consumption, and system
for both coarse and fine grinding on the same mill by
simplicity. In the case of new orders (all processing) in 2010,
ball size selection. An effective approach to improve ball
vertical mills increased their share to over 60 percent, and
mill efficiency is to install a roller mill or roller press as a
ball mills fell below 30 percent.9 In the case of raw material
pre-grinder (for coarse grinding) and to use the existing ball
mills, the objectives are to grind and dry the raw materials
mill exclusively for fine grinding. This approach improves
and produce a homogenous raw meal from a number of
specific energy consumption and can improve productivity
components that are sometimes variable in themselves. The
between 30 and 50 percent.
feed moisture contents are generally between 3 and 8 percent
but sometimes are over 20 percent by weight. Raw grinding ENERGY PERFORMANCE
product fineness requirements are usually <10 percent to 15
By adding pre-grinding, electricity consumption can be
percent residue on the 90 micrometer screen (<1 to 2 percent
reduced by 8 kWh per ton of raw material (approximately
residue on the 200 micrometer screen), with feed particle
22 percent).12 Others have reported electricity reductions in
sizes of 100 to 200 millimeters.
the range of 9 to 11 kWh per ton of raw material.13
Traditional ball mills used for raw material grinding can be

Replacing older ball mills with vertical roller mills or high-
replaced by vertical roller mills or higher-efficiency roller
pressure grinding rolls can reduce electricity consumption by
mills, by ball mills combined with high-pressure roller
11 to 15 kWh per ton of raw material.
presses, or by horizontal roller mills. Use of these advanced
mills saves energy without compromising quality. Modern, CAPITAL AND OPERATIONAL COSTS
efficient plants typically use vertical roller mills for raw
A Japanese installation of a pre-grinder increased the
material grinding; vertical roller mills represented 80 percent
production capacity from 180 to 354 tons of raw material
of all new raw material plants in 2008.10 The advantage of
per hour and reduced specific grinding power consumption
vertical mills is their relatively low power consumption and
by 22 percent (~8 kWh). The installation cost of the system
the simultaneous grinding, drying, and separation in the
was $7.3 million.14
mill itself, together with a wide mass flow control range of
30 to 100 percent. This mill type achieves a specific power
requirement of below 10 kWh per ton at a medium raw 11 Ibid.
12 Asia-Pacific Partnership on Clean Development and Climate

8 United Nations Framework Convention on Climate Change, (APP) Cement Task Force, Energy Efficiency and Resource
Energy Efficiency Measures at Cement Production Plant in Saving Technologies in Cement Industry (Washington, DC:
Central India, CDM project design document, http://cdm. 2009).
unfccc.int/Projects/DB/SGS-UKL1175367790.14/view (2007).
13 U.S. EPA, Available and Emerging Technologies for Reducing
9 ZKG International, “Grinding Trends in the Cement Industry,” Greenhouse Gas Emissions from the Portland Cement Industry
http://www.zkg.de/en/artikel/zkg_2010-04_Grinding_trends_in_ (Washington, DC: 2010).
the_cement_industry_886612.html (2010).
14 APP Cement Task Force, Energy Efficiency and Resource Saving
10 Ibid. Technologies in Cement Industry.
Capital investment cost estimates for a complete ball mill 2.3 CLINKER PRODUCTION
replacement vary widely, but include one estimate of $33 per 2.3.1 PROCESS CONTROLS AND OPTIMIZATION
ton of raw material.15
TECHNOLOGY/MEASURE DESCRIPTION
RELEVANT FACTORS FOR IMPLEMENTATION The clinker-making process is a countercurrent process, with
Most applicable to older plants with raw grinding limitations the kiln located between two heat exchangers that recover the
and high power consumption. Feasibility of this measure depends heat of the combustion gases and the hot clinker. Optimum
on the age and performance of the existing ball mill. For mills control of the kiln system is key for a smooth and energy-
that are older than a threshold (for example, 10 years is used in efficient process. Non-automated or non-optimum process
China), it may be more feasible to replace the ball mill with a control systems may lead to heat losses, unstable process
new vertical mill. This measure will be more applicable for those conditions, and more operational stops. The latter effects
plants where the replacement of the ball mill is not considered lead to increased fuel demand of the system. Automated
feasible and increased production is desired. computerized control systems are effective measures to
optimize combustion process and conditions and to maintain
COST EFFECTIVENESS PRIORITY operating conditions in the kiln at optimum levels. Today, all
Medium to low, depending on the total capital cost and the modern kilns are equipped with such systems.
extent of productivity gains. Effectiveness also depends on
Both raw materials and the fuel mix can be improved
the properties of the raw materials from the quarry and on
through analysis of chemical and physical characteristics.
the grindability of the raw mix components.
Besides automating the weighing and blending processes,
other parameters such as air and mass flow and temperature
2.2 FUEL PREPARATION
distribution can be controlled in order to optimize kiln
2.2.1 HIGH-EFFICIENCY FANS AND VARIABLE SPEED
operation. Additional process control systems include the
DRIVES FOR MILL VENTS
use of online analyzers that permit operators to determine
the chemical composition of raw materials and the product,
Similar to the raw meal mills, the energy efficiency in coal thereby allowing for immediate changes in the blend of
mills also can be improved with the use of high-efficiency these materials. Process control of the kiln system can
fans (in a dust collector bag fan) and variable speed drives improve heat recovery, material throughput, and reliable
for air flow control. control of free lime content in the clinker. As a result, the
operating cost of an optimized kiln is usually reduced as a
ENERGY PERFORMANCE
result of decreased fuel and refractory consumption, lower
Electricity consumption can be reduced by 0.16 kWh per ton maintenance costs, and higher productivity.
of clinker.
Combustion management is of prime importance for kiln
CAPITAL AND OPERATIONAL COSTS optimization and requires specific attention to the
Installation costs in India are reported to be $0.04 per following items:
annual ton of clinker capacity.
1. Fuel grinding management: fuel grinding should be
COST EFFECTIVENESS PRIORITY managed to achieve optimally set fineness.
High; however, applicability may be limited depending on 2. Air ratio management: to maintain an appropriate
the efficiency of current fan and vent systems. Economics air ratio, the oxygen concentration in the combustion
also depends on the power price. exhaust gas requires strict management.

Greenhouse Gas Emissions from the Portland Cement Industry.

Figure 3: Schematic Depiction of Control Points and Parameters in a Kiln System Control and Management System
Source: FLSmidth.
3. Exhaust gas management: carbon dioxide and nitrogen An alternative to expert systems or fuzzy logic is model-
oxides should be measured, and the measurement data predictive control using dynamic models of the processes in
should be used for combustion management. the kiln. Additional process control systems include the use
of online analyzers that permit operators to keep track of
4. Kiln burner management: the basic designs such as
the chemical composition of raw materials being processed
the fuel discharge angle of the burner, the primary air
in the plant. This enables rapid changes to be made to the
ratio, etc., should be reviewed to maintain the optimum
blend of raw materials. A uniform feed allows for steadier
combustion conditions.
kiln operation, thereby saving fuel.
5. Cooler operation management: heat recovery at the
cooler greatly affects the combustion management of the Modern versions of process control and optimization
kiln burner. systems make use of advancements in information
and communication technologies and enable real-time
Improved process control also will help to improve the
monitoring and adjustment of process parameters by
product quality and grindability, such as reactivity and
multiple users using, among others, mobile devices.16
hardness of the produced clinker, which may lead to more-
efficient clinker grinding. A number of management systems ENERGY PERFORMANCE
are marketed through the cement industry manufacturers
Thermal energy savings from process control systems may
and are available and in use throughout the world. Most
vary between 2.5 percent and 10 percent, and the typical
modern systems use so-called expert control (also known as
savings are estimated at between 2.5 percent and 5 percent.17
“fuzzy logic” or rule-based control strategies). Expert control
systems do not use a modeled process to control process 16 National Development and Reform Commission of China,
conditions, but try to simulate the best human operator, using National Key Energy-Saving Technologies Promotion Directory
(Fifth Batch) (Beijing: 2012), 65.
information from various stages in the process.
17 EU-China Energy and Environment Program, Cement – A
Reference Book for the Industry (Brussels: 2009).
In addition, electricity consumption can be reduced by up to systems. However, given the high level of technology in
1 kWh per ton of clinker.18 Brazilian plants, the energy savings in general are likely to be
on the lower side of the estimated range.
For kilns without a control system, savings can be between
50 and 200 megajoules (MJ) per ton of clinker.19 CASE STUDIES
In a 4,500 ton per day Chinese plant, with the installation

of a process control and optimization system, annual
Capital costs are estimated at between $0.34 million and energy consumption was reduced by 395.6 terajoules. The
$0.47 million (for a plant with 2 million tons per year of installation required an investment of 980,000 Chinese
production capacity).20 renminbi and took one month to complete. The system
provided annual savings of 8 million Chinese renminbi,
Operational costs can be reduced by $0.3 to $0.85 per ton of
resulting in a payback time of two months.
clinker in new plants and by $0.36 to $1.0 per ton of clinker
in retrofitting cases.21 Often, a simple payback period of two In another Chinese plant with 4,000 tons per day of
years is achievable for kiln control systems. production, annual energy consumption was reduced by
351.7 terajoules with the installation of a process control
The economics of advanced process control systems are very
and optimization system. The system required an investment
good, and payback periods can be as short as three months. In
of 990,000 Chinese renminbi and took one month to
general, the estimated payback period is less than two years.
install. The associated annual savings was 8 million Chinese
RELEVANT FACTORS FOR IMPLEMENTATION renminbi, resulting in a payback time of 1.5 months.22
• The existing plant constellation predetermines the 2.3.2 MODERN MULTI-CHANNEL BURNERS
further needs for equipment and consequently the TECHNOLOGY/MEASURE DESCRIPTION
implementation costs and system performance.  
Some cement kiln systems are equipped with direct-fired
• A high educational level of operators and staff is critical solid fuel systems that use a mono-channel burner pipe to the
for process control and optimization.   kiln. Mono-channel burners are basically a refractory-lined
• Expert control systems simulate the best operator by single pipe with a nozzle. Primary air and fuel are conveyed
using information from various stages in the process.   together through the mono-channel for combustion into
the rotary kiln. These systems typically have primary air
• Computational modeled predictions may be used for
flow rates that are 20 to 40 percent of the total combustion
future applications.  
air required. A mono-channel burner also has operational
• Electrically driven control fittings consume power.   disadvantages: the exit speed obtains a fixed velocity at
the tip of the burner by design of the nozzle diameter. The
COST EFFECTIVENESS PRIORITY
velocity cannot be adjusted during operation. Furthermore,
High. There are no barriers to installing advanced process shaping the flame by changing the burner adjustment is not
controls on new construction. Most existing facilities should possible during operation, if, for example, one wanted to
be able to retrofit the operations to accommodate control optimize the temperature profile in the sintering zone.
State-of-the-art cement kiln systems use indirect-fired solid

18 European Cement Research Academy (ECRA)/CSI,
Development of State of the Art-Techniques in Cement fuel systems that use multi-channel burners. The multi-
Manufacturing: Trying to Look Ahead (Dusseldorf/Geneva:
channel burners give the kiln operator flame-shaping ability.
2009).
19 Ibid.
22 National Development and Reform Commission of China,
20 Ibid.
National Key Energy-Saving Technologies Promotion Directory
21 Ibid. (Fifth Batch) (Beijing: 2012), 65–66.

These systems typically have primary air flow rates that (2009 figures). Figures for India are between $0.2 million and
are 8 to 12 percent of the total combustion air required. $0.4 million, depending on the plant capacity.24
The additional air (secondary air) required for combustion
originates from the clinker cooler at 600 to 1,000 degrees Operational costs are expected to decrease by $0.11 to
Celsius (depending on cooler type and operation) and leads $0.34 per ton of clinker.25
to the kiln and the calciner, respectively. If the primary air

ratio is reduced by replacing, for example, a mono-channel
burner with a multi-channel burner, a bigger share of hot Low. Applicability may be limited given the high level
combustion air can be taken from the cooler, leading to a of technology in the Brazilian industry. Adoption of low
decrease in specific fuel consumption. nitrogen oxide combustion techniques also limits savings
potential.
Besides the energy-saving effect, modern multi-channel
2.3.3 LOW-PRESSURE DROP CYCLONES FOR
burners have several advantages related to kiln operation:
SUSPENSION PREHEATERS
nitrogen oxide emissions may be reduced due to the decreased
oxygen availability in the core flame. Furthermore, these
modern burners allow the use of significant amounts of Multi-stage cyclone preheaters are the main components
secondary fuels. for the heat exchange of raw gas and raw meal in the
clinker-burning process. Cyclones are used to preheat the
ENERGY PERFORMANCE
raw meal prior to the kiln. Exhaust gases from the kiln or
Depending on the secondary air temperature, reduction clinker cooler are routed to the cyclone and provide the
of the primary air ratio by 5 to 10 percent will lead to a heat to preheat the raw meal suspended or residing in the
fuel energy saving of 50 to 80 MJ per ton of clinker at cyclone. The larger the pressure drop losses in the cyclone,
conventional kilns and about half of this at precalciner the greater the energy requirements for the kiln or clinker
kilns. The electricity demand will remain more or less cooler exhaust fan. Modern cyclones are designed with
unchanged as the higher consumption for control fittings and lower pressure drop and higher material separation efficiency
air delivery channels can be offset by the reduction of the than older designs. Plants with older design cyclones may be
primary air. 23
able to upgrade their preheater cyclones with modern design
cyclones. By doing so, the static pressure at the preheater
vent fan will decrease, resulting in potentially lower specific
If the existing system is a direct-fired system with a mono- power consumption. In addition, the increased material
channel burner, then the plant will be required to convert the separation efficiency will improve heat transfer in the
direct-fired system to an indirect-fired system (or a variation preheater, thereby lowering the specific fuel consumption.
of it) before changing to a multi-channel burner. The capital
ENERGY PERFORMANCE
cost to convert a direct-fired system to an indirect-fired system
can vary greatly depending on the plant conditions. The Depending on the efficiency of the fan, for each hectopascal
typical range can be between $5 million and $10 million. of pressure loss reduction, 0.12 to 0.15 kWh of electricity
can be saved per ton of clinker. For older-type kilns, this
If the existing system is an indirect-fired system with a mono- amounts to savings of 0.6 to 1.5 kWh per ton of clinker.
channel burner, then the plant retrofitting costs for Europe
are estimated to be between $0.54 million and $0.68 million
24 ECRA/CSI, Development of State of the Art-Techniques in

Cement Manufacturing.
23 Ibid. 25 Ibid.
CAPITAL AND OPERATIONAL COSTS remaining portion of the heat in these exhaust streams for
power generation.
Capital costs are estimated at between $10.8 million and
$13.5 million (for a plant with 2 million tons per year of
Because raw material drying is important in a cement
clinker capacity and including the replacement of three
plant, heat recovery has limited application for plants with
cyclone stages in a double-string preheater) (2009 values).
higher raw material moisture content. Often drying of other
materials such as slag or fly ash requires hot gases from the
Operational costs are expected to decrease by $0.068 to
preheater or cooler; in that case, opportunities for waste heat
$40.11 per ton of clinker.
recovery will be further decreased.
RELEVANT FACTORS FOR CONSIDERATION
Power production with residual hot gases from the preheater
Replacement with low-pressure drop cyclones can be
and hot air from the cooler require a heat recovery boiler
economically reasonable when the foundation and tower
and a turbine system. Power generation can be based on
of the preheater are usable without rebuilding. The costs
a steam cycle or an organic Rankine cycle (that is, the
of such refurbishment are very site-specific. The main
conversion of heat into work). In each case, a pressurized
parameters influencing the feasibility of this measure include:
working fluid (water for the steam cycle or an organic
compound for the organic Rankine cycle) is vaporized by the
• Efficiency and flow volume of the induced draft fan  
hot exhaust gases in a heat recovery boiler, or heater, and
• Need for extra capacity   then expanded through a turbine that drives a generator.26
• Temperature/number of cyclone stages  

Steam Rankine Cycle—The most commonly used Rankine
• Pressure drop and efficiency of existing cyclone stages   cycle system for waste heat recovery power generation, the
• Electricity price.   steam Rankine cycle, uses water as the working fluid and
involves generating steam in a waste heat boiler, which then
COST EFFECTIVENESS PRIORITY drives a steam turbine. As shown in Figure 4, in the steam
Low. Applicable to old plants. Replacement with low-pressure waste heat recovery cycle, the working fluid—water—is
drop cyclones can be economically reasonable when the first pumped to elevated pressure before entering a waste
foundation and tower of the preheater are usable without heat recovery boiler. The water is vaporized into high-
rebuilding. The costs of such refurbishment are very site-specific. pressure steam by the hot exhaust from the process and
then expanded to lower temperature and pressure in a
2.3.4 WASTE HEAT RECOVERY FOR POWER turbine, generating mechanical power that drives an electric
PRODUCTION
generator. The low-pressure steam is then exhausted to a
TECHNOLOGY/MEASURE DESCRIPTION condenser at vacuum conditions, where the expanded vapor
In the case of dry process cement plants, nearly 40 percent is condensed to low-pressure liquid and returned to the
of the total heat input is available as waste heat from the feedwater pump and boiler.27 The steam turbine technology
exit gases of the preheater and clinker cooler. The quantity is best known from power plants. While in modern power
of heat from preheater exit gases ranges from 750 to 1,050 plants, electric efficiency is raised to 45 to 46 percent, the
MJ per ton of clinker at a temperature range of 300 to relatively low temperature level from the cooler (200 to 300
400 degrees Celsius. The quantity of heat from the clinker

cooler ranges from 330 to 540 MJ per ton of clinker at
26 A third type of Rankine cycle is based on a mixture of water
a temperature range of 200 to 300 degrees Celsius from and ammonia and is called the Kalina cycle. Application of the
Kalina cycle to the cement industry is still in the demonstration
the exhaust air of the grate cooler. A portion (or in some
phase.
cases all) of this heat is used to dry raw materials and coal.
27 Institute for Industrial Productivity/International Finance
In certain cases, it may be cost effective to recover the Corporation (IIP/IFC), Waste Heat Recovery for the Cement
Sector: Market and Supplier Analysis (Washington, DC: 2014).

Figure 4: Typical Waste Heat Recovery System Using Steam Rankine Cycle
Source: Adapted from Holcim, 2012–2013.
degrees Celsius) limits the efficiency in waste heat recovery • Can recover heat from the middle of the air cooler
systems in cement kilns to a maximum of 20 to 25 percent. 28
exhaust flow to increase waste gas temperatures to an
acceptable level for the system, but at the expense of not
Steam cycles are, by far, the most common waste heat recovering a portion of cooler waste heat.  
recovery systems in operation in cement plants. These
• Often require a full-time operator, depending on
systems are generally characterized by the following:
local regulations.  
• Are most familiar to the cement industry and • Require feedwater conditioning systems.  
economically preferable where source heat temperature
• Require a water-cooled condenser; air-cooled condensers
exceeds 300 degrees Celsius.
can be used but create a performance penalty due to
• Are based on proven technologies and simple to operate.   higher condenser vacuum pressures.
• Are widely available from a variety of suppliers.   • Match well with large kilns and systems with low raw
• Are less costly to install than other systems on a specific material water content (resulting in higher waste gas
cost basis ($ per kW).   temperatures).29
• Require higher-temperature waste heat to operate Organic Rankine Cycle—Other types of working fluids
optimally (minimum >260 degrees Celsius); generation with better generation efficiencies at lower heat-source
efficiencies fall significantly at lower temperatures, and temperatures are used in organic Rankine cycle (ORC)
lower pressure and temperature steam conditions can systems. ORC systems typically use a high-molecular-mass
result in partially condensed steam exiting the turbine, organic working fluid such as butane or pentane that has a
causing blade erosion.   lower boiling point, higher vapor pressure, higher molecular
mass, and higher mass flow compared to water. Together,
28 CSI, Existing and Potential Technologies for Carbon Emissions
Reductions in Indian Cement Industry. 29 IIP/IFC, Waste Heat Recovery for the Cement Sector.
these features enable higher turbine efficiencies than those They are limited in sizing and scalability and generally
offered by a steam system. ORC systems can be used for are smaller in capacity than steam systems.
waste heat sources as low as 150 degrees Celsius, whereas
• Depending on the application, often have a higher
steam systems are limited to heat sources greater than 260
specific cost ($ per kW) than steam systems.
degrees Celsius. ORC systems typically are designed with
two heat transfer stages. The first stage transfers heat from • Create some system inefficiencies related to the
the waste gases to an intermediate heat transfer fluid (for two-stage heat transfer process.
example, thermal transfer oil). The second stage transfers • Normally use heat transfer fluids and organic fluids
heat from the intermediate heat transfer fluid to the organic that are combustible, requiring fire protection measures
working fluid. ORCs have commonly been used to generate and periodic replacement over time. Also, there may be
power in geothermal power plants, and more recently, in environmental concerns about potential system leaks.
pipeline compressor heat recovery applications in the United
• Are generally well-matched with small- to medium-size,
States. ORC systems have been widely used to generate
high-efficiency kilns or kilns with elevated raw material
power from biomass systems in Europe. ORC system’s
moisture content.30
specific features include the following:
Japanese companies spearheaded the introduction of
• Can recover heat from gases at lower temperatures than is waste heat recovery power systems in the cement industry
possible with conventional steam systems, enabling ORC and introduced the technology to China in 1998. Since
systems to use all recoverable heat from the air cooler.   then, China has become the market leader in waste heat
• Operate with condensing systems above atmospheric recovery installations in the number of systems installed
pressure, reducing risk of air leakage into the system domestically (see Figure 5) and in the number of systems
and eliminating the need for a de-aerator.   installed internationally by Chinese companies (particularly
in Asia). Initially, waste heat recovery development in China
• Are not susceptible to freezing.
was driven by incentives such as tax breaks and Clean
• Operate at relatively low pressure, meaning that they Development Mechanism (CDM) revenues for emissions
can operate unattended and fully automated in many reductions from clean energy projects. In 2011, a national
locations depending on local regulations.   energy efficiency regulation mandated waste heat recovery
on all new clinker lines built after January 2011. These
• Avoid blade erosion because the organic fluid properties
drivers were reinforced when multiple Chinese waste heat
result in the working fluid remaining dry (no partial
recovery suppliers entered the market, lowering waste heat
condensation) throughout the turbine.  
recovery capital and installation costs by adopting domestic
• Can use air-cooled condensers without negatively components and design capability, which developed the
impacting performance.   technology for the Chinese market. The experience in China
• Have a lower-speed (rpm) turbine, which allows on waste heat recovery for cogeneration of power has shown
for generator direct drive without the need for and that, in large plants, about 22 to 36 kWh per ton of clinker
inefficiency of a reduction gear.   (25 to 30 percent of the total requirement) can be generated.
This power is considered sufficient to operate the kiln section
• Utilizes equipment (turbines, piping, condensers, heat 
on a sustained basis.31
exchanger surface) that is typically smaller than that
required for steam systems, and the turbine generally
consists of fewer stages.
• Are typically applied to lower-temperature exhaust

30 Ibid.
streams, although ORC systems can provide generation
efficiencies comparable to a steam Rankine system.
Reductions in Indian Cement Industry.

Figure 5: Waste Heat Recovery Installations in the ENERGY PERFORMANCE
Cement Industry
Power generation potential is up to 22 kWh per ton of
739
clinker; based on the chosen process and kiln technology,
China
8 to 10 kWh per ton of clinker can be produced from cooler
India 26
exhaust air, and 9 to 12 kWh per ton of clinker can be
Japan 24
produced from the preheater gases if the moisture content
Thailand 12
in the raw material is low and if it requires only a little hot
Pakistan 9
gas/air for drying. Thus, in total, up to 22 kWh per ton of
Other Asia 24
clinker, or up to 25 percent of the power consumption of a
Mid East 15
cement plant, can be produced by using these technologies
Europe 7
without changes in kiln operation. If kiln operation is
Americas 5
modified in order to produce more electricity (higher
Rest of World 4
preheater exit gas and cooler exhaust air temperature), up to
0 100 200 300 400 500 600 700 800
30 kWh per ton of clinker is possible. Power generation can
Source: OneStone Research, “Latest Waste Heat Utilization Trends,” CemPower, be further increased by additional co-firing into the boiler
2013.
or by modification of the kiln system (for example, fewer
cyclone stages or bypassing upper stage(s)). Output up to
In part due to market experience in China, interest in cement 45 kWh per ton of clinker has been reported. Depending
industry waste heat recovery is expanding among countries on local conditions, this can be an attractive option. Under
and global companies, driven by the following: certain conditions, it also can make sense to use the residual
energy content of the gases after waste heat recovery for
• Rising prices for power and fuel, particularly where cooling purposes.32
captive power plants prevail.
The experience in China on waste heat recovery for
• Concerns about grid power reliability, particularly in
cogeneration of power has shown that, in large plants,
developing countries where the electricity supply often is
about 22 to 36 kWh per ton of clinker (25 to 30 percent
controlled by local, state-owned monopolies and the cost
of the total requirement) can be generated. This power
of power can represent up to 25 percent of the cost of
is considered sufficient to operate the kiln section on a
cement manufacture.
sustained basis.33
• Industry commitment to and government support for
sustainable development. There will be marginal increases in power consumption
of the preheater fan and cooler fan due to the additional
However, in many other regions with unstable power
pressure drop of the boilers.
supplies, conventional self-generation solutions, such as
captive diesel generators and captive thermal power stations, CAPITAL AND OPERATIONAL COSTS
still can be preferred to waste heat recovery systems. The
A waste heat recovery installation is a relatively complex
generation efficiency of waste heat recovery is normally
system with multiple interrelated subsystems. The basic
less than 15 percent. If higher power production is needed,
package for a steam-based system consists of heat recovery
waste heat recovery is in competition with other energy
boilers or heat exchangers, a steam turbine, a gearbox, an
efficiency measures for clinker production, but ultimately
electric generator, a condenser, steam and condensate piping,
both techniques are aimed at a minimization of unused
waste heat. Power generation can be further increased by
additional co-firing into the boiler or by operating the kiln Cement Manufacturing.
system with fewer cyclone stages or bypassing upper stage(s).
Reductions in Indian Cement Industry.
lubrication and cooling systems, a water treatment system, Chinese suppliers now have greater experience in engineering,
electrical interconnection equipment, and controls. constructing, and commissioning steam-based waste heat
recovery projects and have substantially reduced the cost
The total installed cost, which includes design, engineering, of waste heat recovery systems within China, where project
construction, and commissioning, can vary greatly depending costs for these systems are now three to four times lower than
on the scope of plant equipment, country, geographical area costs of systems installed in Western countries using Western
within a country, competitive market conditions, special site suppliers. Chinese technologies are increasingly available in
requirements, and availability of a trained labor force and Asian and European markets. Figure 7 shows the relative
prevailing labor rates. cost differences for Chinese waste heat recovery systems in
China, Asia, and Europe.
The total capital cost (equipment and installation) is a strong
function of size: smaller waste heat recovery systems will In India, the installation costs are estimated to range
have a higher dollar cost per kilowatt of generation capacity. between $1.6 million and $2 million per MW of capacity. 35
Engineering, civil work, and construction costs can represent
as much as 34 to 45 percent of the total project cost. Costs RELEVANT FACTORS FOR IMPLEMENTATION
in Western countries are at the high end of the range. The following factors are important in determining the
applicability of this measure:
Figure 6 shows industry estimates of total installed costs
for cement waste heat recovery projects on a $ per kW of • The amount of heat available in the waste gases (exhaust
electricity basis and illustrates how costs depend heavily on gas volume and temperature) and the conditions of the
project size (in megawatts, MW), local cost variations (region waste gases determine the size, potentially the technology
of the installation), and type of technology (systems lower (for example, ORCs are more applicable for lower-
than 2 to 3 MW tend to be ORC systems). Hence, total temperature exhaust streams and lower gas volumes),
installed costs for waste heat recovery systems are a function and overall generation efficiency (for example, the
of all of the factors mentioned above, but costs can range amount of power that can be produced) of the waste
from $7,000 per kW of electricity for 2 MW systems (ORC)
to $2,000 per kW of electricity for 25 MW systems (steam).34 35 IIP/IFC, Waste Heat Recovery for the Cement Sector.
Figure 7: Installed Costs for Chinese Steam-based

34 IIP/IFC, Waste Heat Recovery for the Cement Sector.
Waste Heat Recovery Systems
Figure 6: Installed Costs for Waste Heat Recovery Typical Range:

3.0 2,000–3,000 $/kW
Systems
Typical Range:
2.5 1,600–2,200 $/kW
Installed Costs, $/kW
8,000
2.0
7,000
Installed Costs, $/kW
WHR project in Europe Typical Range:

6,000 1.5 1,100–1,400 $/kW
and North America
5,000
1.0
4,000
WHR project 0.5
3,000
in Asia
2,000
0.0
1,000 China Asia Europe
China Equip. Local Scope

0 5 10 15 20 25 30
Power System Size, MW Sources: Holcim, 2013; OneStone Research,2013; IFC.
Note: Although the figure accurately depicts relative cost differences for Chinese
waste heat recovery systems across these three regions, total costs are 20 to 30
Sources: Holcim, 2013; OneStone Research, 2012–2013. percent lower than estimates from other industry sources for a comparable system.

heat recovery system. The amount of heat available margin, followed by India and Japan. Conventional steam
and at what temperature is a function of the size and system technology accounts for 99 percent of existing waste
configuration of the kiln (that is, tons per day and heat recovery installations (among an estimated 865 such
the number of preheater stages) and the raw material systems installed in the cement industry worldwide in 2012,
moisture level. only 9 were ORC and only 2 were Kalina cycle systems).
Primary interest in non-steam systems has been in Europe and
• Capital cost of the heat recovery system is generally a
the United States, where kiln efficiencies tend to be higher and
function of size, technology, and supplier.
clinker line capacities are smaller. ORC and Kalina cycle units
• System installation costs (design, engineering, offer higher power efficiencies as kiln efficiencies increase
construction, commissioning, and training) are functions and exhaust temperatures decrease. Packaged ORC turbo
of the installation size, technology, complexity, supplier, generators are available in less than 1 MW size.
and degree of local content.  
Most large global cement firms are using waste heat to
• System operating and maintenance costs are a function of
power systems in some of their facilities. For example,
size, technology, and site-specific operational constraints
Holcim experimented early with waste heat recovery,
or requirements; costs are influenced by staffing: whether
commissioning units in 1982 and 1994. Holcim began
the system will be handled by existing operating staff
installing commercial units in 2006, and, as of 2013, the
or by new staff that require training, or operations will
company had 271 MW of waste heat recovery power
be outsourced.  
capacity, including 53 MW outside of China. Over the last
• Operating hours of the kiln and availability of the heat five years, Holcim has initiated nine waste heat recovery
recovery system.   projects in Canada, China, India, Lebanon, Romania,
• Displaced power prices based on grid electricity no Slovakia, Switzerland, Thailand, and Vietnam. Most Holcim
longer purchased, or reduced dependence on captive projects in Asia are steam cycle systems; most projects
power plants and associated costs.   outside of Asia are ORC systems. As of the end of 2013,
Lafarge, Heidelberg Cement, and Cemex had all installed or
• Net power output of the waste heat recovery system.
were in the process of installing a limited number of waste
Net output is more important in determining project
heat recovery power generation systems.
economics than gross power output. The impact of
auxiliary power consumption and process/booster fans While most existing waste heat recovery systems are steam-
must be included in efficiency and economic calculations.   based, a number of ORC systems have been installed on
• Availability of space in close proximity to the preheater, cement kilns. Ormat Incorporated, a leading ORC supplier
cooler, and air-cooled condensers.   for geothermal applications, operates two ORC systems
in cement plants: a 1.2 MW system installed in 1999 at
• Availability of water.
the Heidelberg Cement plant in Lengfurt, Germany, which
COST EFFECTIVENESS PRIORITY recovers heat from the clinker cooler vent air; and a 4.8
MW unit located at AP Cement (now Ultra Tech Cement)
Medium. Economics depends on prevailing power prices
in Tadipatri, Andhra Pradesh, India. Turboden (acquired
and on the amount of available heat after all current
by Mitsubishi in 2012) installed its first cement industry
requirements (for example, raw material and fuel drying) are
ORC system (2 MW) at Italcementi’s Ait Baha plant in
met. Waste heat recovery projects are capital intensive.
Morocco in 2010 (a 5,000 ton per day clinker line). In 2012,
CASE STUDIES Turboden installed a 4 MW unit at a Holcim Romani plant
in Alesd (a 4,000 ton per day clinker line); Turboden also
There are close to 900 waste heat recovery power installations
has systems under construction at Holcim Slovakia (5 MW
in the world. As previously shown in Figure 5, China leads
at a 3,600 ton per day line at the Rohoznik plant) and at
in the number of waste heat recovery installations by a wide
an undisclosed North American plant (7 MW). Holcim is In response to increasing pressure to lower fuel costs, cement
installing another 4.7 MW ORC system at its Mississauga, producers have been very successful in increasing alternative
Canada, plant from an undisclosed provider. ABB installed fuel use to meet cost reduction goals. In many European
a 1.9 MW ORC system at Holcim’s Untervaz, Switzerland, markets, alternative fuels have replaced on average more
plant using heat from the preheater. than 50 percent of the fuel input, with some plants averaging
60 to 70 percent (see Table 3). The use of high alternative
2.3.5 OXYGEN ENRICHMENT TECHNOLOGY
fuel rates in the calciner is common, and some plants have
TECHNOLOGY/MEASURE DESCRIPTION been very successful with the near-complete replacement of
Oxygen enrichment is the process of injecting oxygen fossil fuels. However, the properties of these fuels have posed
(as opposed to air) directly into the combustion zone (or challenges for the pyroprocessing section in the kiln.
as an adjunct to the combustion air stream) to increase
Preheater kilns that require firing most, if not all, fuels
combustion efficiency, reduce exhaust gas volume, and
through the main burner are especially prone to issues
reduce the available nitrogen that may form nitrogen oxides.
associated with expanded use of alternative fuels such
In general, the use of oxygen-enriched combustion air
as a cool burning zone, an unstable and/or long flame,
reduces fuel consumption, increases production capacity, and
insufficient burnout, and high process variability. Such
can enhance the substitution of fossil fuels with low-caloric-
problems may ultimately result in poor clinker quality and
value or alternative fuels.
kiln capacity. These adverse effects limit the possibilities
Potential drawbacks of the measure include increased risk for further increasing the use of alternative fuels. Oxygen
of damage to the kiln refractory and the potential for higher enrichment also can be used to enhance stable and consistent
nitrogen oxide emissions if not adequately controlled due to combustion of low-quality alternative fuels with low heating
increasing thermal nitrogen oxide formation in the sintering value and larger particle size. The injection of oxygen into
zone. Moreover, production of oxygen requires significant the flame root has proven to be very effective for these
additional power consumption. fuels as it enables more rapid heat-up, fuel devolatilization,
and fuel ignition. The improved combustion conditions
Oxygen enrichment technology is implemented in some can compensate for flame cooling due to fuel moisture. In
cement plants in order to increase production capacity. In addition, the available residence time in the flame is used
addition to specific fuel savings, experience with oxygen more effectively, which enhances burnout of fuels with larger
injection has demonstrated benefits ranging from production particles. This is a concern for clinker quality and clinker
increases of up to 25 percent, reduced specific dust losses, sulfur retention if the larger particles fall into the clinker
and improved kiln stability, as evidenced by clinker quality bed, and results in locally reducing conditions.
and kiln coating (see Table 2).
One frequently voiced concern about oxygen injection is the
impact on nitrogen oxide emissions, due to increased thermal
nitrogen oxide formation. This can be avoided if the oxygen
Table 2: Production Gains Achieved in Different Plants
Using Oxygen Enrichment Technology injection system is designed correctly. In the case of oxygen
injection for alternative fuel combustion, the oxygen raises
Company Base Production New Production % Increase
(tons per day) (ton per day) combustion temperatures in the fuelrich flame core where the
A 1,300 1,490 15 overall fuel rich conditions favor the reduction of nitrogen
B 4,000 4,360 9 oxide to nitrogen. This effect has been successfully exploited
C 3,800 5,000 32 using oxygen injection for nitrogen oxide reduction in the
D 2,000 2,140 7
power industry. In addition, the injection of oxygen into the
flame compensates the cooling effects of moisture addition
Source: Air Products.
from the additional alternative fuel. Thus, oxygen brings the

Table 3: Improvements in Alternative Fuel Use with the Use of Oxygen Enrichment
Plant
A B C D E F Ga H
% alternative fuel usage 45.4 31.1 45.9 44.3 42.8 43.9 60.5 27.0
without oxygen
% alternative fuel usage 72.9 52.4 69.3 65.6 77.3 58.3 67.0 40.7
with oxygen
% reduction in fossil fuel -50.0 -25.9 -40.0 -36.0 -57.5 -25.0 -10.8 -22.0
CO2e savings 13,500.0 8,100.0 10,800.0 9,720.0 34,500.0c 10,800.0 3,780.0 11,880.0
(tons per year)b
Source: Air Products.

a. Production rates were held constant except for Plant G where there was a 4% production increase with oxygen.
b. Results are from recent installations (since 2009).
c. Carbon dioxide equivalent (CO2e) savings at Plant E were greater due to the substitution of biomass fuels for fossil fuel.
thermal condition in the burning zone back to where they CAPITAL AND OPERATIONAL COSTS
are required to be for high-quality clinker production.
Both new installation and retrofit costs are estimated to be
$6.75 million to $13.5 million (for a plant with 2 million
While additional production may not be a primary goal of
tons per year of capacity and assuming a cryogenic air
oxygen use for alternative fuels, the reduced flue gas volume
separation unit).
can compensate for the water ballast that negatively impacts
the capacity of the flue gas system. Thus, lost production
Operational costs are estimated to increase by $0.68 to
can be recovered, or, if desired, clinker production can be
$2.70 per ton of clinker (only considering increased
increased by combining the goals of alternative fuel increase
electricity and reduced primary fuel consumption; kiln
and production increase.
capacity improvements and increased ability to burn
secondary fuels are not taken into consideration).38
Oxygen use has proven to be flexible and straightforward
from an operational point of view. Kiln operators quickly
Studies have shown that an increase of 25 to 50 percent in
realize the potential to stabilize the combustion during kiln
kiln capacity is possible with oxygen enrichment of 30 to
upsets. Experience indicates that oxygen often promotes better
35 percent by volume.39
kiln coating, as the temperature distribution in the burning
zone is favorably affected by the additional flame stability. RELEVANT FACTORS FOR IMPLEMENTATION
None of the applications has led to a reduction in refractory
The decision for a dedicated oxygen supply system (on-site/
life, and many kilns have benefited from a stronger coating.36
off-site) depends on the specific need of the cement
ENERGY PERFORMANCE plant. Oxygen production itself leads to comparatively
high additional power consumption. Other factors for
Thermal energy consumption can be reduced by 100 to
consideration include:
200 MJ per ton of clinker.
• Integration of energy flows between the additional

Electricity consumption can increase by 10 to 35 kWh
air separation unit and the cement plant Further
per ton of clinker due to oxygen production.37
development of oxygen supply technology has an
influence on the process and financial conditions.  
36 Global Cement, “Oxygen-enhanced Combustion of Alternative
Fuels,” http://www.cemfuels.com/articles/320-oxygen-enhanced-
combustion-of-alternative-fuels (February 2, 2011). 38 Ibid.
37 ECRA/CSI, Development of State of the Art-Techniques in 39 U.S. EPA, Available and Emerging Technologies for Reducing
Cement Manufacturing. Greenhouse Gas Emissions from the Portland Cement Industry.
• Durability of refractory lining and wear elements.  
Table 4: Impact of Oxygen Injection on Alternative
• Economics are ruled by power price and investment costs.   Fuels and Production
Baseline With oxygen
COST EFFECTIVENESS PRIORITY injection
Total alternate fuel 66% 75%
Low to medium. May be useful for plants that need additional rate (% heat input)
capacity or want to maximize alternative fuel use. An oxygen Liquids AF 36% 21%
source is required, and dedicated air separation plants
are capital intensive. Increased electricity use for oxygen Plastic fluff 21% 35%
production must be included in the plant energy balance.
Other AF 9% 9%
CASE STUDY
Production 100% 105%
The injection of oxygen to increase the use of alternative
fuels was implemented at Lafarge’s Karsdorf plant in
Source: Global Cement, “Oxygen-enhanced Combustion of Alternative Fuels.”
Germany in 2008. The plant has three kilns, of which kiln
lines three and four are fourstage cyclone preheater kilns Even at the baseline conditions, the plant already was using an
with a nominal daily production of 2,000 tons per day. impressive 66 percent alternative fuel. As Table 4 shows, these
These kilns fire-dried lignite dust, low-quality waste oils, were mostly liquid alternative fuels. Although these liquids
animal meal, and shredded plastic fluff in the main burner usually combust very well due to their high volatile content,
and whole tires through the feed shelf. To allow for higher general availability (at a reasonable cost) did not allow a
chlorine input resulting from alternative fuel combustion, further increase of this fuel group. Instead, with injection
each kiln was retrofitted with a 5 percent bypass. of oxygen, the amount of low-cost fluff could be increased
significantly. The percentage of tires and animal meal stayed
The oxygen is produced cryogenically and is injected via a nearly constant. However, overall economic success of the
proprietary stainless steel lance through the burner into the oxygen injection is due mainly to the reduction of heat input
flame root and through a second lance installed in the kiln from dried lignite from 34 percent to 25 percent, as this fuel
hood. The lance in the kiln hood is installed to maximize is clearly the most expensive.
oxygen injection flexibility for both improving the alternative
fuels rate and increasing production. Initial optimization of In addition to the installation of the oxygen delivery system,
the oxygen injection system had the following goals: only a few minor changes were necessary to make the above
possible. The original kiln control approach had to be modified,
• Increase of solid alternative fuel (fluff) as it did not allow the reduction of lignite as the control fuel
• Minimization of dried lignite use below a certain minimum value, and the fluff dosing system
had to be upgraded to allow higher flow rates. Apart from
• Maximization of tire use
permitting considerations, further increase of alternative fuels
• Maintenance of the clinker quality. will likely face the following process restrictions:
Recovery of the approximately 10 percent production

1. Further decrease of dried lignite will remove the major
capacity that was lost due to the combustion of alternative
source of sulfur for the clinker. This would require a new
fuels was desirable. The reduction of the fuel costs as the
low-cost sulfur source to be added to the fuel mix.
main purpose of the oxygen injection is reflected in these
goals. The baseline condition and the typical fuel mix arrived 2. Further increase of fluff will result in additional chlorine
after optimization are shown in Table 4. to the system. The current bypass design is at its limit.
While this restriction can be removed, it would require
further investment.

These plant-specific limits to a further increase of alternative of secondary air and to reduce clinker temperature. While
fuels are only an example. Each kiln has specific challenges reducing fuel consumption, optimized heat recovery also
that require careful consideration as to whether oxygen is may improve product quality and emission levels.
beneficial for production costs. 40
Proper burner pipe positioning is one way of improving

2.4 CLINKER COOLING cooler operation. Today’s low-fuel-consuming kiln systems
have low combustion air requirements, resulting in high
2.4.1 OPTIMIZING HEAT RECOVERY
secondary air temperatures and slower clinker cooling. In
such systems, positioning the burner tip approximately 1 to
The clinker cooler cools the clinker discharged from the 2 meters into the kiln—as opposed to positioning it at the
kiln down to an ideal temperature range of 100 to 150 kiln nose or even into the kiln hood as practiced in older-
degrees Celsius. The design of clinker coolers has evolved generation kilns—improves the kiln’s own heat recuperating
significantly over time. In the past, rotary coolers, planetary and cooling zone. This way, pre-cooled clinker drops at
coolers, and older-design grate coolers were used. Today, the a lower temperature into the cooler, and the secondary
modern clinker cooler features a static inlet section followed air temperature drops. The clinker can be cooled quickly
by a deep clinker bed section (or sections). Air is passed and reaches the latter clinker cooler zones at a lower
through the clinker bed to cool the clinker and preheat temperature, resulting in lower clinker discharge and vent
the secondary and tertiary air for combustion. The clinker temperatures. Reduced need for cooling air reduces the load
conveying method and air control methods vary from one on the vent air system and saves considerable electricity.
vendor to another. While improving the overall cooler thermal efficiency, the
cooler also runs at a higher availability, and maintenance
Clinker cooler optimization aims to maximize heat recovery, costs are reduced. However, pushing the burner into the kiln
minimize clinker temperature, and reduce specific fuel requires the use of extremely high-strength refractories on
consumption. This also may improve product quality and burner pipes in very severe applications.
emission levels. Heat recovery can be improved through
reduction of excess air volume, control of clinker bed depth, Reducing primary air use and air infiltration rates at the
and new grates such as ring grates. Control of cooling kiln discharge maximizes the amount of secondary air.
air distribution over the grate may result in lower clinker Low primary air rates are possible with semi-direct and
temperatures and high air temperatures. A recent innovation indirect firing systems, offering primary air rates as low as
in clinker coolers is the installation of a static grate section 6 percent. Low air infiltration rates, on the other hand, can
at the hot end of the clinker cooler. Additional heat recovery be accomplished with good hood sealing and an effective
results in reduced energy use in the kiln and precalciner, due kiln discharge seal. Leaf-type kiln discharge seals, where
to higher combustion air temperatures. overlapping sheets of high-quality steel ride on the kiln
cowling, is an effective way of reducing infiltration. In kiln
All coolers heat the secondary air for the kiln combustion systems with a precalciner, any potential opening to ambient
process and sometimes also heat tertiary air for the air between the calciner and the cooler—such as inspection
precalciner, using the highest-temperature portion of the doors, material discharge flaps, damper housings on tertiary
remaining air. Grate coolers use electric fans and excess air ducts, and kiln material inlet seal and kiln riser poke
air. Rotary coolers and planetary coolers do not need holes—should be kept as tight as possible.
combustion air fans and use little excess air, resulting in
relatively lower heat losses. Optimization of heat recovery Optimized distribution of both the clinker bed and the cooling
in coolers aims to maximize the amount and temperature air are also critical. Particularly in larger-diameter kilns,
getting an even clinker distribution can be a challenge; the
40 Global Cement, “Oxygen-enhanced Combustion of Alternative over-concentration of fine clinker particles poses a particular
Fuels.”
problem. The air flow can be improved by narrowing and 3-degree inclined coolers, and 2.0 to 2.5 kilopascal in old
the cooler grate area on the fine clinker side, slowing the 10-degree inclined coolers.
movement of the fine clinker bed, and diverting more fine
clinker to the coarse cooler side by using wedge-type grates. Careful adjustment of airflow rate is another critical
parameter, as both too little and too much air has
To avoid heavy air channeling and bypassing the clinker undesirable consequences. To achieve this goal, predefined
load, some air holes can be blanked off and cooling air amounts of cooling air need to be established for every
thus can be diverted into the clinker load. When severe cooler compartment. Coolers with air beams or mechanical
“red river” conditions exist and loss of cooler grates is air flow regulators can refine the air distribution even more
experienced, “Ondufin” grates, which have cooling fins on to sections of grate plates or to individual plates. Figure 9
the underside and which can stay cooler and last longer, shows a chart of optimized cooling air distribution for a
can be applied. A proper and uniform distribution of the typical eight-compartment reciprocating grate cooler—where
clinker on the grate is of importance and can be achieved by: the first five compartments (including the quench compartment)
1) using a sloped inlet; 2) using a water-cooled, adjustable supply secondary air and tertiary air, if applicable, and
steel impact inlet plate; 3) reducing the effective grate width compartments five through eight cool the clinker to a final
(horseshoe pattern of inlet grate plates); 4) using stationary temperature of approximately 100 degrees Celsius.41 Modern
quench grates at the front of the cooler; and 5) using a automation systems employ high-temperature, high-sensitivity
spreader beam across the cooler. An example of a fixed radar transmitters that allow precise measurement of the
cooler inlet is shown in Figure 8. clinker bed depth and adjust the cooling air flow rate and
grate speed accordingly to achieve optimal performance.42
Increasing the clinker bed thickness generally improves the
overall clinker distribution and heat transfer. In addition,
lower grate speed has had a positive effect on grate wear rates. 41 E. H. Steuch, “Clinker Coolers,” in Bhatty et al., eds.,
Innovations in Portland Cement Production (Skokie, IL:
High under-grate pressures and airflows adversely affect the Portland Cement Association, 2004), 477–98.
conveying action of a reciprocating grate. To prevent clinker 42 Toshniwal Industries Pvt. Ltd., “Clinker Cooler Optimization,”
from flowing forward, the single grate surface should be at http://www.tipl.com/blog/70-clinker-cooler-optimization.html,
viewed April 4, 2016.
least horizontal. Best results can be attained with a maximum
of 4.7 to 5.5 kilopascal under-grate pressures in horizontal Figure 9: Optimized Cooling Air Distribution for a
Typical Eight-compartment Reciprocating Grate Cooler
Figure 8: Fixed Static Inlet Section for a Clinker Cooler

1st 2nd 3rd
Grate drive Grate drive Grate drive
Undergate Air pr. grate area,

pressure, IWR SCFIWsq. ft.
20 600
15 450
10 300
5 150
0
Q 1 2 3 4 5 6 7 8
Compartment number
Source: Steuch, E.H. 2004. “Clinker Coolers,” Chapter 3.8, page 495 In Source: Steuch, E.H. 2004. “Clinker Coolers,” Chapter 3.8, page 495 In
Innovations in Portland Cement Production page 498. Innovations in Portland Cement Production page 495.

In some older coolers where individual cooling fans serve RELEVANT FACTORS FOR IMPLEMENTATION
multiple compartments, the distribution of air into each
Primary factors influencing the effectiveness of this measure
compartment is difficult, since the cooling air will try to
include the existing cooler efficiency, the production rate, the fuel
migrate into the compartment with the lowest under-grate
mix, tertiary air requirements for the precalciner, the amount
pressure—particularly when heavy loads travel down the
of air leakage, and the desired clinker outlet temperature.
cooler. Employing one air fan for each compartment and
making sure that the compartments are well air-sealed from COST EFFECTIVENESS PRIORITY
each other will result in a lower overall clinker discharge
Medium. More effective on high-capacity kilns. Need to
temperature and less air use. Where drag chains are located
balance waste heat needs between drying and heat recovery.
below the cooler, the best sealing is accomplished with flap
valves controlled by level indicators located in the under- 2.4.2 VARIABLE SPEED DRIVES FOR COOLER FANS
grate compartment. It also is important to avoid the mixing TECHNOLOGY/MEASURE DESCRIPTION
of low-temperature back-end air with high-temperature
In most plants, the cooler requires a continuously changing
air from the recuperation zone. Installing an arched brick
air flow in order to provide proper cooling of the clinker.
wall or some hanging stainless steel dampers at the point in
The amount of cooling air provided needs to be adjusted
the cooler where these two air streams split off in different
depending on the demand. The use of dampers is a
directions, and adjusting the slope on the cooler roof
common way of controlling air flow from the fan to the
(approximately 15 degrees as it approaches the cooler throat
cooler. Although dampers may offer advantages in certain
and 5 to 10 degrees as it approaches the vent air takeoff).43
circumstances, generally they are an inefficient flow control
ENERGY PERFORMANCE approach as the fan continues to operate at full load while
substantial energy loss takes place at the damper.
Savings of 0.05 to 0.08 gigajoules (GJ) per ton of clinker are
reported through the improved operation of the grate cooler,
Variable speed drives allow partial load operation of the fan,
and savings of 0.16 GJ per ton of clinker are reported for
reducing power consumption and providing more precise
retrofitting a grate cooler. In another case, thermal energy
control of the cooling air flow. (Figure 10 shows the power
savings of 0.08 GJ per ton of clinker were coupled by an
consumption of fan installations with different control
increase in electricity use of 2.0 kWh per ton of clinker.44
mechanisms.) When the air pressure at the kiln outlet is to be
kept within tight tolerances, without compromising efficient
Installation of a static grate section could improve the heat
cooling, the exhaust air fan and the clinker cooler fans need
recovery rates by 2 to 5 percent.45
to be operated in close cooperation. The use of variable
CAPITAL AND OPERATIONAL COSTS speed drives to control the speed of both clinker cooler fans
and exhaust air fans guarantees fast and precise regulation
The costs of cooler optimization measures are assumed to be
of cooling air and an easy connection to the cement plant’s
half the costs of replacing the planetary cooler with a grate
automation system. Variable speed drives also enable soft
cooler, or $0.22 per annual ton of clinker capacity.
start of the fans, which minimizes mechanical stress on the
Investments for the installation of a static grate are estimated at fans, pipes, and other mechanical equipment. Through soft
between $0.11 and $0.33 per annual ton of clinker capacity. 46 start, the supply network can be dimensioned with a low
starting current, thus reducing the low-voltage switchgear,
transformer, and cabling costs.47
43 Steuch, “Clinker Coolers.”
44 E. Worell, C. Galitsky, and L. Price, Energy Efficiency

Improvement Opportunities for the Cement Industry (Berkeley,
CA: Lawrence Berkeley National Laboratory, 2008).
45 Ibid.
47 ABB, “AC Drives Ensure Efficient and Precise Cooling of
46 Ibid. Clinker and Reduce Energy Consumption” (Zurich: 2009).
Figure 10: Power Consumption of Fan Installations with Different Control Methods
140
Required fan power
Speed control by variable speed drives

120 (both for centrifugal and axial-flow fans)
Variable pitch angle

(for axial fans only)
100
Fluid coupling
(slip control)
Power input (%)
80
Inlet vane control
(for centrifugal fans with backward-curved impeller)
60 Bypass control
(for axial fans)
40 Damper control
(for centrifugal fans with forward-curved impeller
Damper control
20 (for centrifugal fans with backward-curved impeller)
Damper control
(for axial fans)
0 20 40 60 80 100
Volume flow, %
Source: ABB.
Benefits of using variable speed drives in cooler fans include COST EFFECTIVENESS PRIORITY
the following:
• Substantial energy savings can be realized through
also depends on the power price.
optimal control of cooling air.  
• Enables removal of mechanical control devices, for 2.5 FINISH GRINDING

example damper control (plates) of fans, which require
2.5.1 PROCESS CONTROL AND MANAGEMENT IN
regular maintenance due to the harsh environment.   FINISH GRINDING
• Enables soft start of fan motors. TECHNOLOGY/MEASURE DESCRIPTION
• Flying start of fan motors without high-starting torques Grinding operations are highly energy-intensive processes
or high-starting current peaks is possible. and are coupled with high risk to influence product quality.
Process control and management systems aim to maximize
• Easy connection to the cement plant‘s automation system
production with minimum energy use, while minimizing
via various fieldbus adapters.  
quality variations. Control systems for grinding operations
ENERGY PERFORMANCE are developed using the same approaches as for kilns (see
above). The systems control the flow in the mill and classifiers,
Electricity consumption can reduced by 0.04 to 0.17 kWh
producing a stable and high-quality product. Several systems
per ton of clinker.48
are marketed by a number of manufacturers. Expert systems
CAPITAL AND OPERATIONAL COSTS have been commercially available since the early 1990s.
Capital costs are estimated to be in the range of $0.01 per

In finish grinding, a conventional control solution with
annual ton of clinker.
proportional–integral–derivative (PID) loops is insufficient,
48 Worell, Galitsky, and Price, Energy Efficiency Improvement as process delays (for example, fineness analysis delay)
Opportunities for the Cement Industry.

cannot be handled well. Furthermore, the process contains
Table 5: Monitor and Control Parameters
internal couplings. For example, the separator speed impacts
Parameters Monitored Parameters Controlled
not only the fineness, but also the mill filling level through
• Product quality such as • Feed and fineness control
the reject flow. Therefore, a change in one of the PID loops Blaine or online particle size by fresh feed and separator
causes disturbance in the other PID loop, causing a conflict analyzer, SO3, LOI; separator speed
and fan speed
between the loops to reach their own objectives. This lack
• Feeder ratio control for
of coordinated action causes undesired disturbances and • Fresh and reject feed quality
operation inefficiency. Expert systems aim to achieve the
best possible grinding efficiency through advanced multi- • Mill folaphone or elevator • Mill draft
power
input multi-output control strategies and using model-based
• Water flow
predictive control (MPC) techniques. The MPC controller • Draft and temperature
frequently calculates new set points for separator speed • Online process state
• Feeder response to a given estimation
and fresh feed rate in order to obtain minimum deviation
setpoint
from production targets and minimum changes of separator
speed and fresh feed. The typical parameters monitored and
controlled in such systems are summarized in Table 5.
According to one manufacturer, while also reducing energy
Figure 11 depicts the monitoring and manipulation points of consumption, application of their control system to ball mills
a process control system. typically increases productivity by 6 percent, reduces quality
variations by as much as 30 percent, and reduces product
change over time between recipes.
Figure 11: Measurement and Manipulation Points in a Process Control System
Source: FLSmidth.
ENERGY PERFORMANCE Another important feature is the smooth handling of recipe
changeover. This strategy ensures changeover from one product
Energy savings can be between 2.5 and 10 percent, or
type to another in the shortest possible time with the least loss
between 3.8 and 4.2 kWh per ton of cement.49
of production. This is achieved through auto changeover of all
CAPITAL AND OPERATIONAL COSTS operating parameters and manipulated variables.50
The payback is estimated to be between one and two years. 2.5.2 REPLACING A BALL MILL WITH A VERTICAL
ROLLER MILL, HIGH-PRESSURE GRINDING ROLLS,
COST EFFECTIVENESS PRIORITY OR HOROMILL® FOR FINISH GRINDING
High. There are no barriers to installing advanced process TECHNOLOGY/MEASURE DESCRIPTION
controls on new construction. Most existing facilities should be
Cement grinding accounts for nearly 40 percent of the
able to retrofit the operations to accommodate control systems.
electricity used for cement production. Ball mills commonly
CASE STUDY used for finish grinding have high energy demands,
consuming up to 30 to 42 kWh per ton of clinker depending
Maihar Cement in India had earlier adopted an expert
on the fineness of the cement. Complete replacement of
control system in its roller press and ball mill combination.
ball mills by more-efficient milling systems, such as vertical
In 2008, the plant decided to implement an expert system
roller mills, high-pressure grinding rolls, and Horomills®
in two additional mills, following an upgrade of its control
is regarded as best practice and can improve both energy
system in those mills.
efficiency and productivity.
Auto tuning of targets in an automation expert system

Vertical roller mills employ a mix of compression and
during mill operation has been very successful, reducing the
shearing, using two to four grinding rollers carried on
need to change operating conditions in the mill. The system
hinged arms riding on a horizontal grinding table. The use
uses a standard strategy of optimized feed rate and classifier
of vertical roller mills with an integral separator in finish
control to regulate the mill loading and separator circuit
grinding combines grinding with high-efficiency classification
loading optimization to operate the two mills. These standard
and improves both energy efficiency and productivity.
controls are assisted by 1) external static pressure fan control
to ensure optimum ventilation in the mill and 2) separator In high-pressure roller press grinding, the feed material is
fan control to secure an optimum air-to-material ratio in the exposed to very high pressure (up to 3,500 bar) for a short
separator circuit for better separation efficiency. The system time, improving the grinding efficiency dramatically. High-
continuously sets best mill operation conditions by tracking pressure roller presses are most often used to expand the
the achievement of or deviation from targets and making capacity of existing grinding mills, and are found especially
necessary adjustments. These controls, in combination with in countries with high electricity costs or with poor power
self-tuning targets, have improved levels of production and supply. A schematic depiction of a grinding system based on
quality and reduced specific power consumption in both mills. a high-pressure roller press is given in Figure 12.
Table 6 depicts the obtained results.
Whereas required grain sizes up to 4,500 to 5,500 Blaine in
49 Ibid. vertical roller mills and high-pressure grinding rolls can be
achieved, the resulting particle size distribution of the cement
Table 6: Use of Expert Control System
(and thus the cement performance) can vary in the different
Mill Production Reduction in Specific Power
systems, raising the need for product quality-control plans.
Number Increase (percent) Consumption (percent)
1 9 10 50 FLSmidth, “Case Study 1: ECS/ProcessExpert® System
Increases Ball Mill Production,” http://www.flsmidth.com/~/
2 17 15 media/01201KrebsSandStackingCyclones/website/Files/PDF/
CaseStudy_ECSPXP_increases_Ball_Mill_Production.ashx
(2009).

Figure 12: High-Pressure Roller Press for Finish Grinding
Source: FLSmidth, 2010.
The higher the pressure during comminution, the narrower Within a grinding plant system, the Horomill® is, without
the particle size distribution and the higher the impact on exception, used as a closed-circuit bucket elevator mill.
water demand, strength development, and setting time of the It therefore has relatively low capital costs. For drying
cement paste. 51
raw materials and granulated blast furnace slag with
moisture contents of up to 10 percent, it is connected with
The Horomill® operates on the principle of a horizontal a flash dryer and, for higher moisture contents, with an
ring-roller mill and was first demonstrated in Italy in 1993. In “aerodecantor.” The mill can achieve levels of fineness
the Horomill®, a horizontal roller within a cylinder is driven. corresponding to Blaine values of up to 5,000 square
Like the vertical roller mill, the Horomill® uses the principle centimeters per gram when grinding cement. As far as power
of centrifugal force to transport the material (Figure 13). The consumption is concerned, the Horomill® lies between the
short mill cylinder driven through a girth gear runs above high-pressure roller press and the vertical roller mill, and,
the critical rotational speed, and a horizontally supported in contrast to the high-pressure roller press in closed-circuit
and hydro-pneumatically loaded grinding roller is dragged with a high performance separator, it always supplies a
over the lower cylindrical internal surface of the mill cylinder finished ground product (Figure 14). In certain installations,
by frictional engagement with the mill feed. The mill feed parallel arrangement of two mills was implemented, with
introduced at the static end wall of the mill is carried by savings and pooling of resources in the peripheral equipment
centrifugal force to the internal cylindrical wall and guided in order to achieve particularly high outputs and high
by scrapers into the sickle-shaped stressing gap between the flexibility. The Horomill® also requires a moderate amount
mill cylinder and the grinding roller. The centrifugal forces of maintenance and has favorable wear characteristics.52
resulting from the movement of the cylinder cause a uniformly
distributed layer to be carried on the inside of the cylinder.
The layer passes the roller (with a pressure of 700 to 1,000
bar). The finished product is collected in a dust filter.
51 ECRA/CSI, Development of State of the Art-Techniques in 52 E. Edet, “20 Years of the Horomill – A Review,” Cement
Cement Manufacturing. International 4 (2013): 76–81.
Figure 13: Horomill® Concept
Source: http://ietd.iipnetwork.org/content/cement-grinding-horomill.
ENERGY PERFORMANCE
Figure 14: Basic Layout of Cement Grinding Using
Horomill® The energy efficiency of ball mills for use in finish grinding
is relatively low, consuming up to 30 to 42 kWh per ton
of clinker depending on the fineness of the cement. Power
consumption in the finish mill can be reduced to 20 to 30
kWh per ton of clinker with the use of roller presses or roller
mills.53 Energy-savings potential is influenced by the quality
requirements of the final product and the specific system
layout as well as the auxiliary equipment installed.
Figure 15 shows the extent of energy-saving potential

that vertical roller mills offer over ball mills for different
product qualities. Typical energy saving by replacing a ball
mill with a vertical roller mill is reported to be 9 kWh per
ton of cement.54
Source: Fives Fcb.
53 Worell, Galitsky, and Price, Energy Efficiency Improvement


Greenhouse Gas Emissions from the Portland Cement Industry.

Figure 15: Energy Savings Potential of Vertical Roller Mills versus Ball Mills
70
65
Specific energy consumption, Total (kWh/t)
60
Ball mill
55
50
45
≈ 45%
40
35
VRM
30
≈ 33%
25
20
2,500 2,700 2,900 3,100 3,300 3,500 3,700 3,900 4,100 4,300 4,500
Blaine value (cm /g) 2
Source: FLSmidth (as appeared in Harder, 2010).
Grinding Portland cement with a Blaine of 3,200 Figure 16: Energy Savings Potential of Horomill®
square centimeters per gram in a Horomill® consumes
approximately 23 kWh per ton, and even for pozzolanic 80 up to 60%
cement with a Blaine of 4,000, power use may be as low 70

as 30 kWh per ton.55 Industrial results of the Horomill®
Mill Specific energy (kWh/t)
60
operating worldwide have shown energy savings ranging
50 up to 55%
between 35 and 70 percent, as shown in Figure 16.
40
CAPITAL AND OPERATION COSTS up to 35% up to 45% up to 70%
30
Replacing ball mills with vertical roller mills is estimated to
20
require an investment cost of $35 per ton of cement capacity up to 50%
and to increase operating costs by $0.17 per ton of cement 10
to account for more-frequent maintenance. Power savings 0

Ordinary Blended Cement Slag Slag Minerals
were estimated to be 9 kWh per ton of cement. Portland cement raw meal cement
cement
Ball Mill HOROMILL® Energy savings
Source: Fives Fcb.

Capital cost estimates for installing a new roller press vary 2.5.3 OPTIMIZING THE OPERATION OF
widely in the literature, ranging from low estimates of $2.5 A CEMENT MILL
to $3.6 per annual ton of cement capacity to high estimates TECHNOLOGY/MEASURE DESCRIPTION
of $8 per annual ton of cement capacity. 56
Ball mills account for the majority of all mills in cement
plants, and therefore the optimization of established ball
Additionally, new grinding technologies may reduce
mills has high savings potential. Fine tuning of operating
operating costs by as much as 30 to 40 percent.
parameters represents an attractive approach because almost
RELEVANT FACTORS FOR IMPLEMENTATION no additional capital costs are required. Parameters that
hold potential for energy savings are load level, revolution
Vertical roller mills had initial issues with vibration in the mill,
speed, combination of the ball charge, lining design, and the
wear of the grinding roller and grinding disc, and product
adjustments of the separator. Standard optimization methods
quality issues in finish grinding. These issues generally have been
include meter sampling of the effective length as well as
with more recent systems. This technology is considered to be
separator sampling. By determination of the particle size
suitable for new installations as well as for those undertaking
distribution, electricity reduction potentials can be revealed.
major upgrades. Plants interested in this technology are advised
In addition, enhanced measures have been developed that
to carefully consider logistical aspects of maintenance and parts
allow for more directed control of the grinding process. This
replacement by technology providers.57
includes electric ears with a downstream frequency analysis
In pure energy efficiency terms, when using vertical roller for a wide range of oscillations or online monitoring. Feeding
mills in finish grinding, the benefit of grinding power such monitoring data to expert control or fuzzy logic systems
reduction is countered by the very high power required by can support mill optimization. As mentioned earlier, the
mill fans. In addition, the absence of the heat generated in a main obstacles are the complex interdependences between
ball mill and the high volume of air required by the vertical the mentioned parameters. The modeling and simulation of
mill have required the provision of waste heat from cooler ball mills have proven to be effective methods for obtaining
exhausts and/or auxiliary furnaces to dry raw materials and further understanding. Besides providing savings in electricity,
achieve a limited dehydration of gypsum. 58 this can reduce the cost induced by wear.59
COST EFFECTIVENESS PRIORITY Optimizing the grinding media in the ball mill is another
measure that can reduce energy consumption and increase
Medium. Effectiveness depends on clinker properties, desired
productivity.
product quality, and equipment durability. Initial problems
with equipment reliability, maintenance, and product quality ENERGY PERFORMANCE
have been solved in current product offerings.
Electricity consumption can be decreased by between 0 and
2 kWh per ton of cement.
For a 2 million ton per year plant, the installation costs are
estimated to be around €0.01 million. Operational costs are
expected to decrease by €0 to €0.15 per ton of cement.
56 Ibid.
57 Ministry of Industry and Information Technology, Advanced

and Applicable Technology Guide for Energy Saving and
Emission Reduction in Building Materials Industry (First Batch)
(September 2012), 26–27.
58 L. Evans, “Best Energy Consumption,” CemNet.com (February 59 ECRA/CSI, Development of State of the Art-Techniques in
16, 2015). Cement Manufacturing.

RELEVANT FACTORS FOR IMPLEMENTATION to approximately 5 kWh per ton in the pre-grinding mode.
Such a configuration is demonstrated in Figure 17.
The effect of the measure is highly dependent on the clinker
properties (grindability, moisture content) as well as product
A better use of the high-pressure roller press can be ensured
qualities (for example, fineness).
when it is used as a semi-finish grinding system. The roller
press operates in closed circuit with two separators on
The measure requires a deeper understanding of the
top of each other: a static separator that undertakes both
grinding process. For bigger improvements, better control
disagglomerating and coarse separation, and a dynamic
and measurement techniques and improved modeling and
separator. Fines from the roller press circuit are finish-ground
simulation approaches are needed.
in a one-compartment ball mill to the required fineness.
A very compact and energy-efficient semi-finish grinding
Medium. Requires deep understanding of the grinding
installation can be attained by combining the roller press and
process and better measurement and control techniques.
the ball mill with a two-stage separator. The roller press then
Methods for modeling and simulation of the comminution
operates in closed circuit with the static separator working
process are still improving.
as both disagglomerator and coarse separator, while the
2.5.4 HIGH-PRESSURE ROLLER PRESS AS A PRE- ball mill operates in closed circuit with the high-efficiency
GRINDING STEP FOR BALL MILLS dynamic separator. Because the separator air is used for
TECHNOLOGY/MEASURE DESCRIPTION both separation stages, the overall quantity of air and the
fan power consumption remain at a very low level. Such a
Product quality concerns related to complete replacement of
configuration is depicted in Figure 18.
ball mills with alternative milling systems can be addressed
by combined grinding layouts. These systems are commonly
installed, set the standard for product quality, and do not have Figure 17: High-Pressure Roller Press as a Pre-grinding
to face quality problems. One such system involves the use of a Step for Ball Mills
high-pressure roller press as a pre-grinding step for ball mills.
In high-pressure roller press comminution, the feed material

is exposed to very high pressure for a short time. The high
pressure causes the formation of microcracks in the feed
particles and generates a substantial amount of fine material.
If the pressed material is fed directly to a ball mill, the power
consumption required to produce finished cement will be
much lower than that of a mill fed with unpressed material.
This makes it possible to increase the throughput of a given
size ball mill and to reduce the specific power consumption
of the whole mill system.
Here, two process configurations are possible. In the

pre-grinding system, the roller press is used for grinding
Source: FLSmidth, 2010.
fresh feed and a certain amount of recirculated pressed
flakes. The roller-pressed material is finish-ground in a
conventional ball mill grinding circuit. Excessive flake
recirculation may cause operational instability, so, in
practice, the power consumption of the roller press is limited
Figure 18: High-Pressure Roller Press as a Semi-finish
Pre-grinder with Two-stage Separator For a 100 ton per hour mill in Japan, the installation costs
are reported to be about $2.7 million ($1 = 110 Japanese yen),
including auxiliary and construction.
For India, installation costs are reported to be between $10

million and $20 million, or between $55,000 and $65,000
per ton per hour of system capacity.
Medium to low, depending on total capital cost and the potential

extent of productivity gains. Effectiveness depends on clinker
properties, desired product quality, and equipment durability.
CASE STUDIES
Source: FLSmidth, 2010. Hefei Donghua Building Materials Co., Ltd. in China
installed a combined open-circuit roller press (HFCG160-
140), SF650/140 dispersing classifier and a ϕ4.2 × 13.0m
Such pre-grinding configurations can greatly increase ball mill and reached a capacity of 180 tons per hour, with
throughput (up to 100 percent increases are reported in specific grinding power consumption of 27 kWh per ton
India) as compared to single-stage grinding in ball mills. of cement and overall grinding station consumption of less
They are particularly interesting for countries with high than 32 kWh per ton of cement—saving 12 kWh per ton of
electricity costs or with poor power supply. Multi-stage cement as compared to a traditional ball mill system. The
configurations are, however, more complex to operate. company realized annual savings of more than 6 million
Chinese renminbi, due to reduced electricity consumption.
ENERGY PERFORMANCE
Saving potentials approach 30 percent. In another Chinese case, Tianjin Zhenxing Cement Co, Ltd.
reduced specific energy consumption by 7.0 kWh per ton of
Reductions in specific energy consumption have been cement by installing a combined roller press and ball mill
reported in the range of 7 to 24 kWh per ton of cement.60 grinding system in a 2,400 ton per day cement production
line. For an annual production of 900,000 tons, this
In China, reductions in specific electricity consumption of
provides a saving of around 6.3 terawatt-hours per year. The
8 to 12 kWh were achieved, representing 15 to 30 percent
plant realized annual savings of more than 3 million Chinese
savings over a traditional ball mill system. For a typical
renminbi due to reduced power consumption.62
5,000 ton per day plant in China, such configurations are
reported to save 20 terawatt-hours per year.61 2.5.5 IMPROVED GRINDING MEDIA FOR BALL MILLS
Improved wear-resistant materials can be installed for

grinding media, especially in ball mills. Grinding media are
usually selected according to the wear characteristics of the
Opportunities for the Cement Industry. material. Increases in the ball charge distribution and surface
61 Chinese Ministry of Industry and Information Technology, hardness of grinding media and wear-resistant mill linings
Advanced and Applicable Technology Guide for Energy Saving
and Emission Reduction in Building Materials Industry (first
batch) (Beijing: 2012). 62 Ibid.

have shown a potential for reducing wear as well as energy
Figure 19: Schematic of a High-Efficiency Separator/
consumption. Improved balls and liners made of high- Classifier
chromium steel are one such material, but other materials
also are possible. Other improvements include the use of
improved liner designs, such as grooved classifying liners.
ENERGY PERFORMANCE
Power use can be reduced by 5 to 10 percent in some mills,

which is equivalent to estimated savings of 3 to 5 kWh per
ton of cement.63
Based solely on energy savings, the payback times are estimated

to be around eight years.64
Low. Potential improvements are relatively limited compared

to cost.
2.5.6 HIGH-EFFICIENCY CLASSIFIERS

Source: Gebr. Pfeiffer and http://ietd.iipnetwork.org/content/high-efficiency-
TECHNOLOGY/MEASURE DESCRIPTION separatorsclassifiers-finish-grinding.
Earlier-generation classifiers had low separation efficiencies Typical savings of 5 kWh per ton of cement are reported
compared to modern higher-efficiency designs. The lower in China.
separation efficiency leads to the recycling of fine particles,
resulting in extra power use in the grinding mill. As a result,
the number of circulations of the mill feed declines and the Investment costs were estimated at $2 per annual ton of
throughput rises (by up to 15 percent). This also involves a finished material. Operational costs were estimated to
reduction of the specific energy demand compared to grinding increase by $0.04 per ton of cement.
circuits with lower efficiency separators. Newer designs of
high-efficiency separators (Figure 19) aim to improve the Capital costs for both new installations and retrofitting in
separation efficiency further and reduce the required volume Europe are estimated at €2.5 million (for a plant size of 2
of air (hence reducing power use). million tons per year of capacity). The operational costs are
expected to go down by €0.28 per ton of cement.
ENERGY PERFORMANCE
For India, the investment costs are reported to vary between
Overall grinding energy use can be reduced by 10 to 15 percent,
$0.2 million and $0.4 million, or around $20,000 per ton of
despite the extra power required by higher-efficiency separators.
hourly capacity.
Energy savings of between 0 and 6 kWh are reported,
RELEVANT FACTORS FOR IMPLEMENTATION
depending on the existing plant configuration, the type of
cement, and the fineness required. This conversion would require, in addition to the high-
efficiency classifier, a product dust collector and a new fan.
Retrofitting existing facilities with high-efficiency classifiers
should be considered where the physical layout of the finish
grinding system allows it.
64 Ibid.
The separator technology has to be optimized for 2.5.7 HIGH-EFFICIENCY FANS FOR CEMENT
each application. MILL VENTS
The particle size distribution of the finished material will be
As discussed earlier, process fans in a cement plant are
slightly changed (lower proportion of fines), but not to the
the second-largest users of electricity; therefore, measures
extent that the quality of the cement is significantly affected.
that can reduce their power consumption are important.
To ensure process reliability and to use the separators to full With better construction materials for fans and with design
capacity, the operation parameters of the particular mill have optimization, fans with a higher operating efficiency are
to be adjusted, which is very often restricted by the still-limited available for all cement industry applications. These modern
knowledge of the comminution mechanisms. fans are designed for higher energy efficiency, higher wear
resistance, lower material buildup and effects of erosion,
The impact of grinding aid has to be specified for each better speed control, low vibrations, and high operational
product (for example, workability). stability. Fans with higher energy efficiency (82 to 84 percent
efficiency) can replace inefficient fans in finish grinding by
both design and by retrofit. Higher pressure drops in inlet
Medium to high. Effectiveness depends on clinker properties, duct systems also can be analyzed and reduced by using
product quality and condition, and the efficiency of existing computational fluid dynamics techniques.
classifiers, but demonstrated payback periods for the
ENERGY PERFORMANCE
investment have been low. Applicability also is limited by
physical layout limitations. In an Indian plant, replacement of the cement mill fans with
more-efficient versions reduced the energy consumption by
CASE STUDIES
0.13 kWh per ton of cement.
In Hushan Group’s 5,000 ton per day plant in Zhejiang,
China, the installation of a high-efficiency separator/classifier
took three months to complete. The unit reduced specific For India, the implementation costs of this measure are
energy consumption in finish grinding from 36 kWh to less reported to be between $0.05 million and $0.15 million
than 31 kWh per ton of cement. Annual electricity savings depending upon the capacity, or around $400 per ton of
of 10 gigawatt hours are realized, corresponding to annual hourly mill capacity.
production of 2 million tons of cement. The installation
required an investment of 2 million Chinese renminbi and
was paid back in less than one year. High; however, applicability may be limited depending on
Huaihai China United Cement Company Limited also also depends on the power price.
installed a high-efficiency separator/classifier in its 3,700
ton per day plant and thereby reduced specific energy CASE STUDIES
consumption in finish grinding by 2 to 3 kWh per ton of Siam White Cement Co., Ltd., located in Saraburi, Thailand,
cement, resulting in annual electricity savings of around is the largest white cement producer in the country with
4.2 gigawatt hours. The unit required an investment of 2.4 a production capacity of 160,000 tons. The company’s
million Chinese renminbi and took one month to complete. team found that electricity consumption at Cement Mill 1
The system helped improve the product quality, increased was excessive due to the high separator load (kilograms of
output by 10 percent, allowed for increased use of cement cement per cubic meter of air). The airflow rate could be
additives by 5 to 10 percent, and reduced dust emissions. increased by installing a new efficient circulating fan that
The payback time for the investment was less than one year. would reduce the separator load and electricity consumption.

Three new efficient circulating fans (35 kW, 35 kW, and 70 using high-efficiency motors and drives. Figure 16 shows
kW) were selected to replace the existing circulating fans at the typical efficiencies of electrical motor classes according
Cement Mill 1. to IEC60034-30: 2008 definition. Although rewiring old
motors is a more common practice in industry, replacing
The implementation requires a $30,000 investment, and the old motors with new and more efficient ones may prove
expected annual savings are $25,000, with a 1.2-year payback more beneficial, particularly in light of the fact that a motor
period. Expected electricity savings are 427,300 kWh (almost can cost 100 times more to run over its lifetime than its cost
10 percent) per year, which is equivalent to the reduction of purchase.
of 264 tons of carbon dioxide emissions per year. The
installation of efficient circulating fans also could increase the For example, for rotating the kiln—a task that requires
cement production rate by more than 14 percent.65 significant amounts of power—direct current (DC) motors
are traditionally used. Recently, replacement of these DC
2.6 GENERAL MEASURES motors with alternating current (AC) versions is increasingly
advocated. Thanks to technological advances, modern
In addition to the specific measures above, a number of
AC drives are able to supply the enormous starting torque
general measures to improve energy efficiency and reduce
required for cement kilns. These drives also use less energy,
associated emissions can be considered by cement plants.
are more reliable, and are easier to maintain. Similarly, high-
2.6.1 HIGH-EFFICIENCY MOTORS AND EFFICIENT efficiency motors used in other applications not only reduce
DRIVES energy consumption, but also are typically more reliable, last
Motors and drives are used throughout a cement plant to longer, and result in lower transformer loading.
move fans (for example, preheater, cooler), to rotate the kiln,
Further, it is not uncommon to find that motors used in
to transport materials, and, most importantly, for grinding.
industry are oversized. This results in poor efficiency, which
In a typical single kiln cement plant, 500 to 700 electric
leads to more energy consumption and a higher energy cost
motors may be used, varying from a few kW to MW size.
(by more than 25 percent in certain scenarios). Therefore,
Cement producers can achieve significant energy savings by
onsite motor loading surveys and corrective action must be a
65 Energy Efficiency Asia, SIAM WHITE CEMENT Co., Ltd: part of any comprehensive energy conservation effort.
Energy Consumption Reduction at Cement Mill, 2006.
Figure 20: Efficiency Ranges for Different Motor Classification
100
95
Efficiency (%)
90
85
80
75
Classification
acc. to IEC 60034-30:2008
70
1.1 2.5 3 4 5.5 11 15 18.5 20 30 37 45 75 90 132 200 375

Power (kW)
IE1 IE2 IE3
ENERGY PERFORMANCE $134,000 (including a rebate from the local utility company),
giving a payback time of around eight months.69
Power savings may vary considerably by plant, ranging from
3 to 8 percent.66 Substituting the DC motor system with an 2.6.2 VARIABLE SPEED DRIVES
AC version for the kiln drive may result in a reduction in
Most electric motors used in cement plants are fixed-speed
electricity use of the kiln drive of between 0.5 and 1 percent.67
AC models; however, motor systems are often operated at
When considering smaller motors used in other applications, partial or variable load, particularly in cement plants where
high-efficiency motors are typically between 1 and 4 percent large variations in load often occur. Variable speed drives
more efficient than traditional ones. can increase motor efficiency by decreasing throttling and
coupling losses. Variable speed drives can be applied primarily
CAPITAL AND OPERATIONAL COSTS for fans in the kiln, clinker cooler, preheater, separator, and
For a 5,000 ton per day plant, it is estimated that replacing all mills, and for various drives in a cement plant.
motors in plant fan systems with high-efficiency motors costs

ENERGY PERFORMANCE
$0.22 per annual ton of cement capacity.68 AC drives for kiln
systems have a lower investment cost than DC drives. Variable speed drives can reduce electricity consumption by
between 7 and 60 percent, depending on the flow pattern
FACTORS FOR IMPLEMENTATION and loads in a plant.70 Other sources estimate the potential
If the replacement does not influence the process operation, savings to be 15 to 44 percent of the installed power, or
motors may be replaced at any time. Further, oversized roughly equivalent to 8 kWh per ton of cement.71
motors are commonly found in cement plants, resulting in

poor energy efficiency and high consumption and costs.
Therefore, onsite motor loading surveys and corrective The specific costs depend strongly on the size of the system.
action must be a part of any comprehensive energy In Europe, for systems over 300 kW, the costs are estimated
conservation effort. at €70 per kW ($75 per kW) or less, and for systems in
the range of 30 to 300 kW, costs are estimated at €115 to
COST EFFECTIVENESS PRIORITY €130 per kW ($120 to $140 per kW).72 Based on these, the
High; however, applicability may be limited depending on specific costs for a modern cement plant were estimated to
the efficiency of current fan and vent systems. Economics be roughly $0.9 to $1.0 per annual ton of cement capacity.
also depends on the power price. In India, the costs of high-temperature and low-temperature
variable speed drives are assumed to be $240 to $300 per
CASE STUDY kW and $120 to $200 per kW, respectively.73
By retrofitting 13 motors with high-efficiency versions,

a cement plant in Davenport, California, has saved 2.1
megawatt hours of electricity annually. The plant has reduced
its annual energy and maintenance costs by $168,000 and
$30,000, respectively. The implementation costs amounted to 69 U.S. Department of Energy, CEMEX: Cement Manufacturer
Saves 2.1 Million kWh Annually with a Motor Retrofit Project
(Washington, DC: 2005).

Cement Manufacturing.
Opportunities for the Cement Industry. 71 Worell, Galitsky, and Price, Energy Efficiency Improvement
67 ESKOM, Concrete Steps Towards Profitability—Solid Ways
to Ensure Energy Efficient Cement Production (Sunninghill, 72 ECRA/CSI, Development of State of the Art-Techniques in
Sandton, South Africa: 2011). Cement Manufacturing.
68 Worell, Galitsky, and Price, Energy Efficiency Improvement 73 CSI, Existing and Potential Technologies for Carbon Emissions
Opportunities for the Cement Industry. Reductions in Indian Cement Industry.

COST EFFECTIVENESS PRIORITY plants, compressed air is a vital input to the production
process. However, too often, compressed air systems are highly
inefficient, resulting in significant wasted energy and cost.
the efficiency of current fan systems. Economics also depends
While compressed air is often considered low cost, it can be
on the power price.
fairly expensive given that only 10 to 20 percent of the electric
2.6.3 PREVENTATIVE MAINTENANCE energy input reaches the point of end use. The remaining
energy is converted to wasted heat or is lost through leakage.
While many processes in cement production are primarily
Below are several best practices that can be used to improve air
automated, there are still opportunities to increase energy
compressor system efficiency and reduce costs:
savings through preventative maintenance. Preventative
maintenance will assure that the equipment and other
1. Detect and Repair Leaks. Leaks in an industrial
infrastructure is in good condition to deliver optimal outputs.
compressed air system can waste significant amounts
In addition to energy savings, preventive maintenance can
of energy, as much as 20 to 30 percent of compressor
help avoid problems with product quality, reduce downtime,
output. Detection and repair can reduce leaks to less than
and improve capacity utilization. Maintenance of the kiln
10 percent of compressor volume. Leak repair, when
refractories, or reduction of false air input into the kiln, are
combined with adjustments to compressor controls, can
among typical areas where preventive maintenance can focus.
reduce compressor run time, increase equipment life,
Effective preventive maintenance will require the development
and reduce maintenance. However, without appropriate
and implementation of a carefully crafted maintenance plan,
compressor controls, there may not be much energy
as well as basic training of the employees.
savings. Repairing leaks also reduces demand for new
ENERGY PERFORMANCE compressor capacity by reducing wasted air. While

leakage may come from any part of the system, the most
Savings that can be harvested through preventive
common problem areas are couplings, pressure regulators,
maintenance will depend on the measures already taken
condensate traps, shut-off valves, and pipe joints.
in a particular plant. Reduction of up to 5 kWh per ton
of clinker through various preventative maintenance and 2. Eliminate Inappropriate and Unnecessary Uses.
process control measures have been reported. Typical savings Compressed air generation is one of the most expensive
are around 3 kWh per ton of clinker.74 auxiliary processes for an industrial facility. Over
80 percent of the electricity used for this process is
CAPITAL AND OPERATIONAL COSTS attributed to wasted heat at the compressor. Plants need
Startup and implementation costs of preventive maintenance to consider more cost-effective ways to accomplish the
tend to be very low, often resulting in payback times of less same tasks. If air nozzles are required, a Venturi-type
than one year. nozzle can significantly reduce compressed air demand,
as well as lower noise levels. If an air motor is used
COST EFFECTIVENESS PRIORITY for mixing, a plant can consider replacing this with an
High. Preventive maintenance is low cost and should be electric motor. The plant also can check to ensure that air
included as standard procedure in plant operation. is not being supplied to unused or abandoned equipment.
3. Minimize Pressure Drop. Pressure drop is the reduction

2.6.4 COMPRESSED AIR SYSTEM OPTIMIZATION
AND MAINTENANCE in air pressure from the compressor to the actual point of
use. A properly designed system should have a pressure
Compressed air is often called the “fourth utility” in many
drop of below 10 percent of the compressor’s discharge
facilities, after electricity, fuel, and water. For most cement
pressure. Systems are frequently operated at higher
pressures than necessary to compensate for unnecessary
74 Worell, Galitsky, and Price, Energy Efficiency Improvement pressure drops, which waste energy and money. The most
frequent problem areas are after-coolers, separators, rate of pressure decay by locating receivers near surge
dryers, filters, regulators, and poor connection practices at demands. For systems with highly variable air demand,
the point of use. For systems in the range of 100 pounds the plants can achieve tight control by combining storage
per square inch gauge (psig), every increase in discharge with a pressure/flow controller. Narrowing the pressure
pressure of 2 pounds per square inch (psi) will increase variation with better controls uses less energy and
energy consumption by about 1 percent at full load. minimizes potential negative effects on product quality.
4. Reduce System Pressure. Many plant air compressors 6. Use Efficient Part-Load Controls. For rotary screw
operate with a full load discharge pressure of 100 psig compressors, throttling the air can allow the output of
and an unload discharge pressure of 110 psig or higher. a compressor to meet flow requirements. Throttling is
The actual pressure requirements of machinery and usually accomplished by closing down the inlet valve,
tools are often 80 to 90 psig or lower. Reducing and which restricts inlet air to the compressor. However,
controlling system pressure downstream of the primary this control scheme is inefficient for controlling
receiver can reduce energy consumption, leakage, and compressor output for displacement compressors.
demand for new capacity, as well as cause less stress on Most manufacturers offer control options for larger
components and operating equipment. However, caution compressors that are more efficient at part loads. Load/
should be exercised in lowering system pressure because unload controls can improve the efficiency at part-load
large changes in demand can cause the pressure at points operation if there is enough storage capacity. Another
of use to fall below minimum requirements. This can efficient approach uses variable displacement control or
be avoided by carefully matching system components, variable capacity control, which reduces the effective
controls, and storage. Plants can address unnecessary length of the rotors at part loads. Variable speed control
pressure drops prior to lowering system pressure. can be a very efficient approach to provide “trim” duty.
In some plants, the high-pressure requirements of a Proper selection of part-load controls depends on specific
few uses drive the pressure requirements for the entire compressed air system requirements.
system. If these uses can be supplied by a dedicated
7. Optimize Distribution System Operation. The air
compressor, the rest of the system can operate effectively
distribution system that connects major compressed
at a lower pressure.
air system components is very important. Appropriate
5. Size and Control Compressors to Match Loads. Since sizing and layout will ensure proper air supply, good
compressor systems are typically sized to meet a system’s tool performance, and optimal production. A plant
maximum anticipated demand, a control system often can size and arrange the complete drying, filtration,
is required to reduce output for low-demand periods. and distribution system so that the total pressure drop
The compressor package usually includes controls. For from the air compressor to the points of use is below 10
systems with multiple compressors, it is usually good percent of the compressor discharge pressure. The plant
practice to follow a baseload/trim strategy. This allows can choose equipment and piping components to avoid
some compressors to be fully loaded to meet the baseload excessive pressure drops and leakage. A plant also may
demand. The compressor(s) with the highest part-load dramatically improve the operation of existing systems
efficiency is placed in trim service to handle variations by replacing worn-out or inadequately sized hoses and
in load. This strategy requires controls that operate the couplings, inspecting and maintaining filter/regulator/
group of compressors as an integrated whole. This is lubricator components, and installing adequate storage.
typically far more efficient than placing compressors in
8. Improve Routine Maintenance. Inadequate compressor
modulation, which is a common practice.
maintenance can increase energy consumption
An effective control strategy includes adequate storage.
significantly via lower compression efficiency, air leakage,
A plant can employ storage to cover peak air demands
pressure variability, higher operating temperatures, poor
by reducing both the amount of pressure drop and the
moisture control, and poor air quality. A plant can keep

radiators clean and clear of oil and sawdust to keep the COST EFFECTIVENESS PRIORITY
air and oil cool. This can add up to thousands of dollars
High. Economics also depends on the power price.
every year. The plant also can inspect and adjust controls
periodically to ensure that they are operating properly 2.6.4.2 REDUCING LEAKS IN COMPRESSED AIR
and at appropriate settings for system requirements. For SYSTEMS
basic maintenance, the plant can inspect and clean inlet Leaks in compressed air systems are very common and
filters, drain traps, maintain lubricant levels, condition are significant sources of wasted energy and money. Plants
belts, maintain operating temperature, inspect air-line without proper maintenance of the system may have 20
filters, and check water cooling systems. to 50 percent leakage, and this value can be reduced to
In addition to the general best practices for air compressor below 10 percent with proper leak detection and correction
system efficiency listed above, the following three measures are programs. Couplings, hoses, tubes, fittings, pressure
particularly effective when implemented at cement facilities. regulators, open condensate traps and shut-off valves, pipe
joints, disconnects, and thread sealant are among the most
2.6.4.1 COMPRESSED AIR SYSTEM MAINTENANCE common areas of leaks. Leaks can be detected by either
Proper maintenance of compressed air systems is of utmost simple methods (such as the use of soapy water in suspected
importance and can help maintain compression efficiency, areas) or advanced methods (for example, the use of
reduce air leakage or pressure variability, and avoid ultrasonic acoustic detectors).
increased operating temperatures, poor moisture control,
Besides increased energy consumption, leaks can add
and excessive contamination. Proper maintenance includes
unnecessary compressor capacity, make air tools less
the following:
efficient and adversely affect production, shorten the life of
• Keeping the compressor and intercooling filters clean equipment, lead to additional maintenance requirements,
and foul-free. and increase unscheduled downtime.
• Keeping motors properly lubricated and cleaned. ENERGY PERFORMANCE
• Regularly inspecting drain traps. By fixing leaks, the energy consumption of the compressed
air system can be reduced by up to 20 percent.
• Maintaining the cooler to assure lowest possible inlet
temperature to the dryer. CAPITAL AND OPERATIONAL COSTS
• Adjusting the belts and checking them for wear. Typical capital costs for systemic leak management in
• Replacing air lubricant separators at optimal intervals. compressed air systems, combined with system controls, are
estimated as follows for different system sizes:
• Maintaining the water quality of water cooling systems.
• $1,250 for <37 kW.

ENERGY PERFORMANCE
• $3,000 for 37 kW to 75 kW.
Through more-frequent filter changing, a 2-percent reduction
of annual energy consumption in compressed air systems can • $5,000 for 75 kW to 745 kW. 76
be realized. 75
The payback for filter cleaning and maintaining drain traps

is usually under two years.
75 Worell, Galitsky, and Price, Energy Efficiency Improvement 76 United Nations Industrial Development Organization, Motor
Opportunities for the Cement Industry. System Efficiency Supply Curves (Vienna: 2011).
2.6.4.3 COMPRESSOR CONTROLS ENERGY PERFORMANCE
The demand patterns in compressed air systems are often Sophisticated controls can provide up to 12 percent energy
dynamic, and therefore few systems operate at full load all savings annually. Changing the compressor control from on/
the time. Part-load performance of a compressed air system zero/off to a variable speed control can save up to 8 percent
is a critical factor affecting the efficiency of the system per year.77
and is influenced primarily by compressor type and system
controls. When the pressure in the system is higher than
what is required, more energy—approximately 7 percent for Typical payback for start/stop controls is one to two years.
every extra bar—is consumed.
The objective of any control strategy is to shut off High. Economics also depends on the power price and on
compressors that are not needed or to delay bringing on the condition of the current system and controls.
additional compressors until needed. All units that are on
should be running at full load, except for one. Positioning of
the control loop also is important; reducing and controlling
the system pressure downstream of the primary receiver
can result in energy consumption of up to 10 percent or
more. Start/stop, load/unload, throttling, multiple (fixed)
speed, variable speed, and network controls are options for
compressor controls. Opportunities for the Cement Industry.

ENERGY EFFICIENCY PROJECT IMPLEMENTATION
BARRIERS 3
Energy efficiency projects are often sound investments Energy efficiency financing is distinguished in the following
that can generate good return and have low risks. Still, ways:78
important energy efficiency potential remains in all sectors
of the economy worldwide, including the industrial sector. • In most cases, the assets financed have little or no
The main reason for this is the presence of different market residual value, making them unusable as collateral
barriers that remain in all markets: against a bank loan.
• The project benefits are “energy and other savings”

• Unfavorable regulatory framework for energy
(that is, money not leaking out of the company, rather
efficiency measures.
than money flowing in, which is a more abstract concept
• Lack of awareness about energy efficiency opportunities. than an increase in revenues, where there is actual cash
coming into the company accounts).
• Lack of knowledge and capacity to identify, develop, and
implement projects. • The projects (especially in industry) are more “intricate.”
They are not more technically complex than a greenfield
• Lack of capacity to identify gains generated by projects.
investment or a production expansion, but they are more
• Lack of trust in future energy efficiency project results complicated to understand from a banker’s perspective.
(that is, in energy savings).
• There is a knowledge gap between the engineering
• High internal competition for project support in terms of companies developing and implementing energy
human and financial resources. efficiency projects and the beneficiaries (project hosts)
• Production line expansion projects have priority over and bankers.
energy efficiency projects. • There is a lack of widely adopted and proven
• Low energy cost. measurement and verification standards and protocols
for energy efficiency investments. Different countries
• Low carbon emission factor for electricity.
adopt different guidelines regarding measurement and
• Lack of adapted and attracted financing. verification. Also, different engineering companies develop
and use their own proprietary models for energy efficiency
Specifically related to the last barrier, experts have long
evaluation. As a result, bankers do not trust the estimated
recognized that the lack of commercially viable adapted
benefits from energy efficiency projects, as they are
financing is one of the major barriers to implementing energy
technical in nature and are derived from non-transparent
efficiency projects. Competing for financing with other core
and non-standardized models. This also makes it very
business investment projects, energy efficiency projects often
difficult to compare energy efficiency projects.
rank low on the priority lists of high-level private sector
managers or investors. • Average energy efficiency project size is in the range of
€1 million to €5 million, which is considered rather small
by local financing institutions.
78 International Energy Agency (IEA), Joint Public-Private

Approaches for Energy Efficiency Finance (Paris: 2012).
These properties create a mismatch between the current
lending practices of local financial institutions and the
needs of energy efficiency projects, making energy efficiency
lending discouragingly difficult. Local banks typically:
• Provide asset-based lending limited to 70 percent to

80 percent of asset value (energy efficiency project
value = savings).
• Do not believe or acknowledge that cash flow from

energy efficiency projects = increased host credit capacity.
• Are not familiar with unique “intricacies” of energy

efficiency projects.
• Do not have internal energy efficiency finance capacity

to properly evaluate the risks/benefits of energy
efficiency projects.
• Lack experience to properly evaluate the risks/benefits of

energy efficiency projects.
• Are unwilling to invest in building energy efficiency

finance capacity due to the relatively small monetary size
of energy efficiency projects.
To address these barriers, various business models were

developed and used in different countries that have
proved successful.
42 Energy Efficiency Project Implementation Barriers

BUSINESS MODELS
4
This section presents different business models that could 4.1.1 DIRECT LOANS (SENIOR DEBT)
be considered to facilitate the implementation of energy
Direct lending from local financial institutions constitutes the
efficiency projects in the cement industry in Brazil.
simplest and direct way to finance energy efficiency projects at
any facility level. In some cases, the loan can finance a large
4.1 DIRECT IMPLEMENTATION
portion of the requested investment, or, in other cases, the loan
The most conventional way to implement energy efficiency can be leveraged with other mechanisms (equity, leasing, etc.).
projects is through direct implementation by project This is known as “senior debt” in the financing world.
beneficiaries. Even though this model does not address many
of the identified barriers, it has the advantage of simplicity The main financial barriers to direct lending are the
and good understanding by decision makers. high interest cost in some countries (such as Brazil), the
non-adapted timeframe for repayment, the limitation that
The use of internal or external expertise, project management, it creates on the financing space in relation to competition
and commissioning are the two main approaches used for this with other non-energy-efficiency-related projects, as well as
model. To address the financing needs, different approaches the technical risk still being borne by the energy end-user.
have been developed.
When the local financing market is reluctant to provide
adapted lending to energy efficiency projects, other
organizations—such as national development banks or
Figure 21: Structure of Various Financing Methods
international financing institutions—for eligible countries
can offer such mechanisms through dedicated credit lines.
Such credit lines are a dedicated source of credit that is
Equity on-lent to financial intermediaries (generally commercial
banks) that can use this liquidity to offer loans for developers
of energy efficiency investment projects. When a credit line
Mezzanine is set, the financial intermediaries are responsible for repayment

Financing of the loan and assume all financial risks. In some cases, it
has been agreed that the financial intermediaries will lend a
percentage of the investment from other source(s) of liquidity
to which they have access. The main financial barriers
Senior Debt
addressed by credit lines are the lack of liquidity or adapted
conditions for energy efficiency projects in the market, the
competiveness between all the business opportunities within
the financial institutions, and the disinterest of local financial
institutions in the energy efficiency business as compared to
other traditional opportunities.
4.1.2 SUBORDINATED DEBT FINANCING Equity financing can come from professional venture
(MEZZANINE FINANCING) capitalists. Venture capital is a specific sub-segment of
Subordinated debt financing, also called mezzanine private equity investment, which entails investing in startup
financing, is capital that sits midway between senior debt companies with strong growth potential; private equity
and equity and has features of both kinds of financing. entails investment in the expansion and growth of any
Subordination refers to the order or priority of repayments: company that is not listed on a public stock exchange.
subordinated debt is structured so that it is repaid from Venture capital investors obtain equity shares in the
energy efficiency project revenues after all operating costs companies that provide energy efficiency goods or services
and senior debt service has been paid. and generally play a significant role in the management and
technical aspects of the company. Without clear exit paths,
Subordinated debt is substantially riskier than senior debt typically through resale or initial public offerings, venture
since it is generally subordinate to senior debt in terms of capital investors cannot easily commit to the deal, even when
collateral rights and rights to cash flow. Subordinated debt they are convinced of the investment potential.
financing is generally made available directly from insurance
4.1.4 LEASING
companies, subordinated debt funds, or finance companies.
Alternatively, it is raised with public offerings of high-yield Leasing consists in getting new energy efficiency equipment
bonds to institutional investors. These funds are loaned under a rental contract within a determined period. It
based on the amount and predictability of energy efficiency makes it possible to finance up to 100 percent of the energy
project cash flow exceeding that required to service senior efficiency project cost. Leases are guaranteed by the new
debt. Because subordinated debt usually has little collateral equipment and usually do not require any other guarantee.
protection, the lending institution may be granted stock Typically, leasing finances large pieces of equipment that
options to own equity of the outstanding stock. can easily be removed from the site and resold (for example,
boilers, chillers, compressors, etc.). There are two types of
Subordinated debt funds can be undertaken in partnership lease: operating lease and capital lease.
with senior lenders. Alternatively, a subordinated credit facility
can be provided to the local financial institution, which acts OPERATING LEASE
as senior lender; the senior lender then on-lends to the project, An operating lease is a mechanism that involves making
blending together the subordinated debt with its senior debt regular payments as a standard operating expense with
provided from its own resources. The borrower sees one single no ownership of the asset by the end-user (lessee) during
loan, but the senior lender applies loan payments to repay the the lease term. At the end of the lease term, the lessee may
senior debt component on a priority basis. purchase the asset at the then-fair market value, return the
equipment, or renew the lease for a new lease term. This
4.1.3 EQUITY FINANCING
helps facility owners preserve their corporate line of credit as
Equity financing for energy efficiency projects refers to well as any cash they may have set aside for other business
the acquisition of funds by issuing shares of common or needs, since the transaction is not recorded on the balance
preferred stock of a corporation in anticipation of income sheet of the lessee.
from dividends and capital gain as the value of stock rises.
Equity is the residual claim or interest of the most junior CAPITAL LEASE
class of investors in an asset, after all liabilities are paid: For a facility owner who prefers to enjoy the benefits of
ownership equity is the last (residual) claim against assets, ownership of the assets without actually owning the energy
paid only after all other creditors are paid. Ownership equity efficiency project assets, a capital lease may be the best
is also known as risk capital or liable capital. financing vehicle. It is still a lease where the facility owner is
a lessee, but the lessee has access to any tax and depreciation
benefits that the equipment may have. In terms of the facility
44 Business Models
owner’s balance sheet, the equipment would need to be 4.2 ENERGY PERFORMANCE CONTRACTING
recorded as a capital asset and the lease payments would be MODEL
recorded as a liability. At the close of the lease contract term, 4.2.1 DEFINITIONS AND BASIC CONCEPTS
the energy-efficient equipment transfers ownership to the
Energy services companies (ESCOs) develop, implement, and
facility owner for a nominal purchase price.
provide or arrange financing for upfront energy efficiency
4.1.5 PARTIAL LOAN GUARANTEES investments for their clients. Repayments from savings allow
clients to compensate the ESCO’s ongoing savings monitoring,
A partial loan (or credit) guarantee refers to a program
measurement and verification costs, and assumption of
administrator who offers credit guarantees to back up loans
risk through energy performance contracting or third-
or leasing issued by financial institutions to project developers.
party financing. The fundamental concept of the energy
These guarantees are used as collateral for the financial
performance contracting business model is that the client does
institutions and thus allow them to offer better loan conditions
not have to come up with any upfront capital investment
to the project developers. In addition, this removes from the
and is only responsible for repaying the investment made or
borrowers the burden of using personal assets as guarantees.
arranged by the ESCO.
The program administrator can do this on the base of a fund
kept in a reserve account, which can be withdrawn to cover Three dominant energy performance contracting models have
for defaulted payments from the clients of the banks. The loan been developed to help address the different market needs
guarantees may not cover the loans entirely, so that the local in specific sectors: shared savings, guaranteed savings, and
financial institutions must accept part of the risks. Partial loan “chauffage.”
guarantees generally cover up to 90 percent of the investment.
The level of coverage is established based on the risk perception 4.2.2 SHARED SAVINGS ENERGY PERFORMANCE
CONTRACT
of the commercial banks.
In a shared savings energy performance contract, the ESCO
The financial barriers mainly addressed by partial loan finances the total upfront capital cost of the project and is
guarantee activities are the high cost of financing due to totally responsible for repaying the lender. The client pays
high real or perceived risk and the perception of high risk of the ESCO a percentage (or it can be a fixed amount) of
financial institutions in the energy efficiency business. its achieved savings from the project, large enough for the
Figure 22: Partial Loan Guarantee Figure 23: Shared Savings Financial Model
Partial Credit
Guarantee Fund
Leveraged
x% PCG
Claims on PCG
Local Commercial
Bank
EE Loan
Partial Collateral/
Loan Repayments
Borrower for EE
Project
ESCO to repay the project investment to its lenders, cover
Figure 25: “Chauffage” Financial Model
measurement and verification costs, and pay any other
associated costs. The energy end-user assumes no direct
contractual obligation to repay the lender; only the ESCO has
this obligation.
4.2.3 GUARANTEED SAVINGS ENERGY

PERFORMANCE CONTRACT
In a guaranteed savings energy performance contract, the

client essentially applies for a loan, finances the project,
and makes periodic debt service payments to a financial
institution. The ESCO bears no direct contractual obligation
to repay the lender; only the energy end-user assumes this
obligation. The ESCO’s guarantee is not a guarantee of
payment to the lender, but rather a guarantee of savings
performance to the energy end-user that is usually equal to
its repayments to the lender. owner of aggregate properties) called “contrat d’exploitation
de chauffage” leading to the wording “chauffage” to qualify
4.2.4 CHAUFFAGE this form of energy performance contract. In the former
“Chauffage” or integrated solutions generally refer to a French approach, the contract contained up to three elements
greater value-added approach. The concept offers conditioned corresponding to the following services:
space at a specified price per energy unit to be consumed or
• Energy supply cost.
per some measurable criteria (square footage, production unit,
etc.) through a supply-and-demand contract offered by the • Maintenance cost.
ESCO. The ESCO manages all supply-and-demand efficiencies.
• Total guarantee cost (replacement cost of the equipment
This concept derives from a previous contractual French
at the end of its life).
approach of energy services delivered by a private company
to a public authority or to another private body (for example,
Figure 24: Guaranteed Savings Financial Model
46 Business Models
4.2.5 COMPARATIVE ANALYSIS OF THE DIFFERENT The main features of public-private partnerships include:
MODELS
• Long-term agreement for delivery of service by a private
Table 7 shows a comparison of the various energy performance
sector firm in a public sector facility.
contracting models along with three important questions.79
• Transfer of risks to the private sector.
• Mobilization of private sector financing.

Table 7: Energy Performance Contracting Models
Contract Type Whose Who Takes Project-Specific • Payment to the private sector for the services delivered.
Balance Performance Financing?
Sheet? Risk?
• The goal of delivering a service, which is directly or
indirectly related to optimizing energy efficiency at the
Shared Savings* ESCO ESCO Yes
end-user level.
Guaranteed Customer ESCO Yes
Savings Public-private partnerships are not a process of privatization
“Chauffage” ESCO ESCO No of public assets. Under public-private partnerships,
ote that ESCOs generally sell their right to receive payments from a project to
* N accountability for public service delivery is retained by the
other “third” parties as a means of recovering project investment and working
capital to use in future projects. public sector, whereas under privatization, accountability
moves across to the private sector (the public sector might
retain some regulatory price control). Under public-private
partnerships, there is no transfer of ownership and the public
4.3 PUBLIC-PRIVATE PARTNERSHIP80 sector remains accountable.
Public-private partnership for the implementation of energy

The term “public-private partnership” is not defined in the
efficiency projects is a business model that combines the
legislation of many countries. The vast majority of public-
efforts and support of both the public sector and the private
private partnerships are in infrastructure projects. However,
sector for design, financing, construction, operation, and
in recent years, these structures have been used increasingly
management of energy efficiency equipment or projects in
in energy efficiency implementation and energy efficiency
public sector facilities. It enables the private sector to finance
finance. Practice shows that the existence of specific legislation
and engage in public sector investments. Generally, the
is not crucial for the structuring and implementation of
public sector is responsible for monitoring and evaluation of
public-private partnerships, particularly those in energy
quality, while the private sector is more closely related to the
efficiency finance. The partners usually work around the gaps
implementation of the project and the actual service delivery.
in the local legislation and structure the form and nature of
In addition to public contracts and concessions, this legal
their partnership in public-private partnership contracts.
form is best suited for heavy operations in which the payment
of public service cannot be assured by users. The structure has Supporting legislation, however, can be a catalyst for the
the advantage of promoting rapid implementation of projects development of public-private partnerships. Regulations that
without burdening public finances. make a public-private partnership possible and facilitate
its functioning (such as the legal right to establish a project
company) or regulations that govern the provision of public
financing, where relevant (for example, to provide subsidies
or to make long-term commitments of public expenditure for
the life of the public-private partnership contract), make the
79 Econoler, IFC Energy Service Company Market Analysis, June implementation of public-private partnerships much easier.
23, 2011.
The degree to which public-private partnership structures are
80 IEA, Joint Public-Private Approaches for Energy Efficiency
Finance. The text, drafted originally for the IEA by Econoler, being used today for energy efficiency financing depends to
has been edited to fit the needs of the present section.
a large extent on the level of sophistication of the different international financial institution. Limited partnerships
governments and on the development of the judicial systems. are created for large investments (for example, $5 million
and above) because of the amount of legal and accounting
4.4 SPECIAL PURPOSE VEHICLE services required, which cause the transaction cost to be
very high. It is appropriate for projects in industrial facilities
The use of a special purpose vehicle consists in the setup
or for the retrofitting of many facilities owned by a single
of a special-purpose company owned by whomever injects
entity (for example, a municipality or a state government).
equity in it. The “other project owner” could be, for
Nevertheless, it is a very innovative scheme that makes it
instance, an equipment vendor with whom the ESCO will
possible to fine tune the risk assignment.
partner. It also could be a program administrator or an
Figure 26: Special Purpose Vehicle Financial Model
Lender
(Secured Party)
Credit Interest
Equity Fees
Limited Other
ESCO
Partnership Project Owner
Fees Equity
Financing
Customer
(Project Beneficiary)
Source: Adapted from C. Bullock and G. Caraghiaur, A Guide to Energy Services Companies (The Fairmont Press / Prentice Hall, 2000).
48 Business Models
5
INTERNATIONAL BEST PRACTICE BUSINESS MODELS
FOR IMPLEMENTING ENERGY EFFICIENCY PROJECTS
IN INDUSTRY
Several examples of successful business models exist • The general objective is to promote and strengthen
throughout the world. This section covers those models energy efficiency in the industrial and commercial sectors
that are considered most relevant for the Brazilian cement in Chile.
sector. More examples can be found in publications such
• The specific objectives are to:
as the Institute for Industrial Productivity’s Delivery
• Obtain a critical mass of trained government staff,
Mechanism for Financing of Industrial Energy Efficiency;81
energy efficiency auditors and consultants, as well as
the Inter-American Development Bank booklet Programas
representatives from the industrial and commercial
de Financiamiento de Eficiencia Energética,82 written by sectors, with on-site practical experience of available
Econoler; and the International Energy Agency publication technologies for energy efficiency, including their
Joint Public-Private Approaches for Energy Efficiency implementation and measurement and verification of
Finance,83 co-written by Econoler. energy savings.
• Provide the necessary tools to make financing

5.1 LENDING PROGRAMS options available to end-users and ESCOs.
5.1.1 PROMOTING AN ENERGY EFFICIENCY MARKET • Provide practical experience in design and imple-
IN CHILE mentation of energy efficiency measures and verify
INTRODUCTION energy efficiency projects in specific identified areas.
The program, implemented through the Chilean Energy BARRIERS TARGETED

Efficiency Agency (AChEE), aims to facilitate the
The program addresses the following barriers to energy
implementation of energy efficiency projects in several
efficiency financing:
sectors. The estimated cost of the program is $42.35
million; of this, the Global Environment Facility (GEF) will • Lack of knowledge of energy efficiency in the industry
finance (grant) $2.64 million, which will be administered and of capacity to develop energy efficiency projects.
by the Inter-American Development Bank. In addition, This barrier is targeted through the solid technical
$39.72 million in co-financing will be provided by project assistance package integrated in the program and
partners ($3.69 million from AChEE; $31.89 million through the investment in the program of a number of
from CORFO; $0.98 million from the Inter-American market stakeholders. AChEE is actually a private energy
Development Bank, and $3.14 million from the beneficiary efficiency agency, and, as such, it makes sure that the
small and medium enterprises). program is designed and implemented on a commercial
basis, not distorting or conditioning the market.
• Limited access of small and medium enterprises to energy

81 Institute for Industrial Productivity, Delivery Mechanisms for
Financing of Industrial Energy Efficiency: A Collection of Best efficiency financing. The program will actually focus on
Practices (Washington, DC: 2012).
small and medium enterprises and ESCOs, which in Chile
82 Inter-American Development Bank, Programas de also are small companies with small project development
Financiamiento de Eficiencia Energética: conceptos básicos
(Washington, DC: 2012). and implementation capacities. A large portion of
83 IEA, Joint Public-Private Approaches for Energy Efficiency
Finance.
the technical assistance package will target small and • Direct measurements (for example, reports on energy
medium enterprises and information awareness issues. savings resulting from pilot projects and other energy
efficiency investments facilitated by the GEF project
• Lack of technical capacity at the local financial
calculations greenhouse gas emission reductions through
institution level to evaluate energy efficiency projects.
the method in the GEF guideline).
Through evaluation of existing credit lines and
investment facilities, the program aims to suggest energy • Indirect measurements (for example, the amount of
efficiency financing mechanisms that address the current resources invested in energy efficiency projects in small
barriers and issues. and medium enterprises implementing technologies
promoted by the project).
DESIGN OF THE MECHANISM
It will be good to monitor on a regular basis the
To address the above barriers, the program design includes a
implementation of this program, as it has the embedded
package with the following components:
versatility and potential to have a positive impact in Chile
and also to increase the awareness of energy efficiency in
• Institutional strengthening and capacity building
the market. Because this is reimbursable program, it is
in energy efficiency. The technical support package
expected to run for some time and to compound the market
aims to consolidate AChEE as a “one-stop shop” for
transformation effect.
energy efficiency by increasing the know-how in energy
efficiency, establishing an energy efficiency strategy for 5.1.2 CHINA UTILITY-BASED ENERGY EFFICIENCY
the country and its implementation plan, and developing PROGRAM (CHUEE)
a communication strategy to create awareness among INTRODUCTION
the rest of the market stakeholders. The package also
The CHUEE program is implemented by IFC in China.
will finance workshops and seminars on energy efficiency
Although the name suggests that the program is linked to a
program design and evaluation, benchmarking, risk
utility, this is not the case. Initially, the program was designed
assessment of energy efficiency projects, as well as
to promote the switch from coal to natural gas and was to
measurement and verification protocols to be taught to
be implemented through a gas utility in China. However, this
AChEE staff members, ESCOs, and market stakeholders.
concept was abandoned due to misalignment of interests,
• Implementation of energy efficiency pilot projects in and the program evolved into a partial guarantee mechanism,
selected and prioritized areas. disbursed through local banks in China.
• Development of energy efficiency financial mechanisms

After a successful Phase I in 2006, the program was repeated as
through evaluation of several existing energy efficiency
Phase II in 2009. Currently, a Phase III is ongoing. The lessons
credit lines and a partial guarantee fund. This component
learned from the first two phases have been described in detail
also will provide recommendations for optimization of the
in the impact assessment report of the first two phases.84
existing financial instruments and development, testing,
and dissemination of a standardized process for assessing BARRIERS TARGETED
loan applications for energy efficiency investments.
The program was based on market research, which assessed
MARKET IMPACT the market constraints to energy efficiency in China. Several
major barriers were identified as key targets for the program:
This is still an ongoing program, and, as yet, there are no
reports on its implementation progress and market impact.
• Lack of information at the level of end-users, which limits
However, program results will be monitored by two groups
their ability to understand the energy efficiency savings
of indicators:
84 World Bank, Assessing the Impact of IFC’s China Utility-Based

Energy Efficiency Finance Program (Washington, DC: 2010).
50 International Best Practice Business Models for Implementing Energy Efficiency Projects in Industry
potential at their facilities, to develop energy efficiency DESIGN OF THE MECHANISM
projects, and to assess the risks of such projects.
The design reflected the objectives of the program to target the
• Lack of awareness and experience among Chinese above barriers. The CHUEE design had three main components:
commercial banks about financing energy
efficiency projects. • An energy efficiency partial credit guarantee mechanism.
This was a mechanism intended to overcome the risk-
• High risk aversion among local banks in China.
averse behavior of Chinese banks and to give them an
• Use of asset-based lending as the only approach to incentive to experiment and lend to energy efficiency
lending by local banks, which discredited energy projects. The partial credit guarantee, provided by the
efficiency stakeholders such as equipment suppliers and program was a “first-loss,” where IFC would cover:
ESCOs that have a weaker asset base. • 75 percent of the first 10 percent losses of the
Chinese bank
• 40 percent of the remaining 90 percent losses of the

Chinese bank.
• A technical assistance package for capacity building

of market players. This boosted the capacity of the
participating banks and changed the role of the banks
from financing-only to providing project development
guidance plus financing.
• Development of an energy efficiency awareness component.
Figure 27: Institutional Arrangements of CHUEE Program
Technical assistance
Technical assistance Bank partners

guarantee Banks
Loan
CHUEE Corporation Loan

(Program) agreement
Market partners
Customers
Utilities, ESCOs,
energy users
vendors, and so forth
Equipment
engineering
services
Technical assistance
Source: IEG
Note: CHUEE = China Utility-Based Energy Efficiency; ESCOP = energy service company.
The total funds allocated to the program were $215.5 A number of recommendations were made for Phase III of
million (including the technical support components). the program (CHUEE III), such as:
MARKET IMPACT • The additionality from the experience of the involved

In the first two phases of the program, the local banks international financial institution should be exploited as
provided a total of $512 million in loans for energy much as possible.
efficiency projects. The environmental impact was estimated • Market focus should be on sectors that have high
at 14 million tons of carbon dioxide per year, which exceeds potential for energy efficiency savings but are currently
the target set by IFC at the design stage. overlooked by local banks.
Apart from the market transformation impact, the effect was • Subsidies should be used in areas with market failures.
much more pronounced at the level of the two participating To the extent possible, energy efficiency financing should
banks (Bank of Beijing and Industrial Bank). CHUEE be done on a commercial basis.
practically started the energy efficiency lending business for
5.1.3 BANGKOK MITSUBISHI UFJ LEASE LTD (BMUL)
the two banks, and it continued in a sustainable manner RISK-SHARING PROJECT
after the end of Phase II of the program. The exposure
INTRODUCTION
to energy efficiency transactions of the two banks was
significantly influenced by CHUEE, and now they have a The project entails the development of a risk-sharing facility
much higher proportion of energy efficiency transactions in to support the energy efficiency, renewable energy, and
their loan portfolios, compared to competitor banks. ESCO sectors. It will contribute to increasing efficiency
in industry, reduction of operating costs, and pollution
A number of lessons were learned from this program, which reduction. Thailand is heavily dependent on energy as an
can be transferred to the Brazilian market context: input and has one of the highest electricity rates in the
Southeast Asia region.
• For programs that aim for market transformation,
careful selection of the local partner banks is required The total size of the facility is estimated to be $70 million,
as a prerequisite for success. and IFC investment totals $36.81 million. BMUL would be
responsible for generating a portfolio of energy efficiency
• Flexibility in the program design is a key to help
leases. IFC will share the risk of that lease portfolio, which
respond to unexpected market changes.
will include support from the Clean Technology Fund.
• Supporting government policies are a strong market
driver that can influence the implementation BARRIERS ADDRESSED
of the program. Leasing comes as an alternative to bank lending. The
• Indiscriminate use of subsidies impedes the different set of regulations governing the leasing business
commercialization of energy efficiency finance. makes leasing companies more flexible and particularly
suitable to financing energy efficiency equipment.
• Caution is needed when applying a utility-based model
in emerging markets. The main barrier addressed by the program in Bangkok was
• A program exit plan is critical to success. the high perceived risk of energy efficiency investments by local
financial institutions, and respectively the high requirements for
collateral and business cash flows from borrowers.
The program is designed to skim the market for viable

energy efficiency projects, where different pieces of efficient
equipment are being installed, replacing old and obsolete BARRIERS
equipment. By design, the equipment itself is enough as
The main barrier to be addressed is the lack of low-cost
collateral on the transaction. The leasing mechanism,
energy efficiency, renewable energy, and sustainable energy
although not targeting the entire energy efficiency market
technologies in the region.
potential, focuses on a good portion of the market and has a
unique market transformation effect. DESIGN OF THE MECHANISM
The Fund will invest in a diversified portfolio in the

The program will contribute to the development and
Asia-Pacific region. The Fund is expected to consist of a
diversification of the financial sector by assisting in the
portfolio of 10 to 12 companies with investments generally
development of new markets and product lines with
ranging from $10 million to $30 million.
significant growth potential. The risk-sharing facility by IFC
will provide comfort and reduce risks taken by financial IMPACT
institutions, especially those entering into such new markets
By providing equity financing to companies in the business
in Thailand for the first time.
of technology transfer in the clean technology space, the lack
IMPACT of knowledge should be reduced because of:
The project is still ongoing, but it is expected to contribute

• Adoption of more sustainable practices.
largely to the increase in efficiency in the industry sector as well
as to the reduction in operating costs. In addition, the project • Dissemination of low-cost technologies to
will contribute to pollution reduction by increasing the use of developing markets.
more-efficient technologies with fewer harmful side effects. • Global improvement in clean energy technology in Asia.
5.2 EQUITY FINANCING (PRIVATE EQUITY, RISK/ 5.3 PARTIAL GUARANTEE MECHANISM
VENTURE CAPITAL, ETC.)
5.3.1 THE ENERGY EFFICIENCY GUARANTEE
5.2.1 CLEAN RESOURCES ASIA GROWTH FUND MECHANISM
INTRODUCTION
The Energy Efficiency Guarantee Mechanism (EEGM)85 is a
Although equity financing takes only a small niche in the $25 million mechanism exclusively for buildings, including
energy efficiency financing market, this program is an industrial buildings. However, projects related to the
interesting approach to energy efficiency financing in the improvement of the process are excluded. The mechanism
general framework of clean energy support. CLSA Capital is the result of a partnership between the Inter-American
Partners Limited, a financial institution with a strong Development Bank, the United Nations Development
presence in Asia, is raising the Clean Resources Asia Growth Programme, and the GEF, which offers partial credit
Fund, a $200 million clean technology fund. The Fund will guarantees of up to 80 percent of the value of the energy
target opportunities across the value chain within the clean efficiency contract, or up to 100 percent of the financed
technology sector, including several areas that are currently amount, for the maximum term of seven years, in the form
underserved by capital sources: of two guarantee products:
• Pollution and waste management technologies. • The comprehensive risk guarantee: covers defaults for
technical and financial creditworthiness reasons. This
• Water and wastewater solutions.
product is available to financial institutions, ESCOs,
• Sustainable agriculture technologies. and their clients. The EEGM takes up to 80 percent of
• Energy efficiency technologies.
• Supply chain investments for alternative energy.

85 Energy Efficiency Guarantee Mechanism, http://eegm.org.
the payment risk of the borrower participating in the
Figure 28: Krakow Energy Efficiency Project
underlying energy efficiency contract (credit risk).
• The technical risk guarantee: covers defaults due to Disbursement

GEF (US$5.7 million)
technical reasons. This product is available to financial
institutions and ESCOs. The EEGM takes up to 80
percent of the performance risk of the underlying energy BGK
efficiency contract. Guarantee
Reserve Fund
The EEGM emits guarantees for a period of five years and

Legal Loss
offers a maximum tenor of seven years. The guarantees are Agreements Partial payment Guarantee
(GFA & LGA) guarantee to lender claim
done in Brazilian reals within the following limits:
• Minimum Guarantee: $100,000 (equivalent in Brazilian Participating

reals) (within the maximum percent per project) Bank/Lender
• Maximum Guarantee: $1,600,000 (equivalent in Brazilian

Loan Default
reals) (within the maximum percent per project). Loan
Repayment event
5.3.2 KRAKOW ENERGY EFFICIENCY PROJECT Energy Efficiency

Investment
A good example is the Krakow Energy Efficiency Project,

where a GEF-supported86 partial credit guarantee mechanism Project
Investment Cash flow from
is implemented through the Polish State Bank BGK (Bank Energy Savings
Gospodarstwa Krajowego). Apart from monitoring the

performance indicators, set in the project design, the
following contract management aspects were involved: Investment/disbursem Repayment
Partial guarantee Guarantee claim payment

• Contract between GEF and BGK (as representative
of the Government of Poland) Source: GEF
• Contract between BGK and partner banks.

BARRIERS
5.4 ESCO BUSINESS MODELS The main barriers to be addressed are:

5.4.1 GREEN FOR GROWTH FUND
• Limited access to sustainable energy finance.
INTRODUCTION
• Lack of knowledge in energy conservation, energy
The proposed project envisages an IFC investment in the
efficiency, and renewable energy.
Green for Growth Fund (GGF), Southeast Europe SA
SICAV-SIF (formerly known as the Southeast Europe Energy • Low interest of private investors in renewable energy and
Efficiency Fund, SA SICAV-SIF) (the Fund), which was energy efficiency.
launched in December 2009.
Promoted by KfW Entwicklungsbank and the European

Investment Bank, the Fund is a proposed €400 million
collective debt investment vehicle that will provide financing
for on-lending to sustainable energy projects through
86 Global Environment Facility, “Krakow Energy Efficiency
financial institutions, ESCOs, and renewable energy/
Project,” http://gefonline.org/projectDetailsSQL.cfm?projID=786.
energy efficiency projects/companies and service and supply • Provides financing to energy efficiency/renewable energy
companies, collectively partner institutions in the Southeast service or equipment manufacturing companies that require
European Region. More specifically, the GGF: funding for growth capital to expand their business.
• Builds beneficial relationships with companies that

• Provides financing arrangements to ESCOs for projects
have compelling business models and well-defined
that aim to achieve a minimum of 20 percent energy or
growth strategies.
carbon dioxide savings. Eligible measures are energy
efficiency and renewable energy projects, energy • Offers structured and tailored senior debt, mezzanine,
performance contracting projects, or energy supplying project finance, and equity products, pursuing proven
contracting projects. high-growth energy technologies and services.
• Provides medium- to long-term financing for energy IMPACT

efficiency and renewable energy products/projects to
The project is expected to have a significant developmental
strong and reputable commercial banks, microfinance
impact in promoting energy efficiency and renewable energy
institution leasing companies, and other non-bank
and expanding lending to households, small and medium
financial institutions committed to the same energy-
enterprises including ESCOs, municipalities, and public
saving objectives. The financial institutions on-lend
sector entities in Southeast Europe. Key developmental
these funds to sub-borrowers such as households,
impacts include:
household associations, small and medium enterprises,
large business, municipalities, public sector entities, and
• Broadening access to sustainable energy finance.
renewable energy projects.
• Demonstrated effects of improved energy efficiency
among sub-borrowers.
Figure 29: Green for Growth Fund Institutional Structure
Source: http://www.ggf.lu
6 BRAZILIAN MECHANISMS TO SUPPORT THE USE OF
DIFFERENT BUSINESS MODELS
A limited number of mechanisms are available in the and the limits defined by the BNDES and undertakes the
Brazilian market to support energy efficiency investment in related credit risks.
the industrial sector.
The isolated acquisition of machines and equipment requires
6.1 TAKING ON DEBT automatic indirect financing, regardless of the amount,
obtained through Cartão BNDES or FINAME. Automatic
The Banco Nacional de Desenvolvimento Econômico e
indirect financing of projects requires the use of the BNDES
Social/BNDES (National Bank for Social and Economic
Automático product.
Development) is the biggest and leading agent for the
financing of long-term projects and investments in The main products offered by the BNDES for the industrial
Brazil. The BNDES is a state-owned bank that acts as sector are as follows:
the instrument of government policies on credit for long-
term developments. As such, the bank has access to long- • BNDES Finem: for the financing of business ventures
term financing under favorable conditions and can offer of more than 20 million Brazilian reals. This product
longer-term and less-expensive funds than other financial has a high number of lines, with specific characteristics,
institutions. The BNDES is the main financing agent of depending on the sector or program. One line is dedicated
energy efficiency projects in the Brazilian market. to energy efficiency, Finem–linha Eficiência Energética.88
• BNDES Finame: indirect financing for new, Brazilian-

The bank has developed a number of financing instruments
made machines and equipment. Among the several
over the last few years, and several of them are dedicated to
lines that can be used for energy efficiency investments,
the industrial sector.87 The BNDES provides two financing
one of the most appropriate is the Bens de Capital–
modalities: direct and indirect financing. To qualify for
Commercialização–Aquisição de Bens de Capital (BK
direct financing, the borrower must submit a “previous
Aquisição) line for the acquisition of new, Brazilian-made
consultation” document that has to be approved by the
machines and equipment. There is also a leasing facility,
bank. The Finem is the BNDES product used for the direct
Finame Leasing, that could be used for specific Brazilian-
financing of investment projects, even though some financing
made machines and equipment.
programs allow direct financing in specific cases. Only
projects of more than 20 million Brazilian reals qualify for • BNDES Automático: indirect financing of investment
direct financing, but there are exceptions for specific cases. projects of up to a maximum of 20 million Brazilian
Indirect financing, the other modality, requires resorting to reals. This product has several lines. In relation to energy
accredited financial institutions. In these cases, the analysis efficiency initiatives, the most appropriate one is the
of the credit facility is made by the accredited financial Linha Médias–Grandes e Grandes Empresas–Demais
institution, which negotiates the financing conditions—such Setores line.
as payment terms and required guarantees—with the client.
The accredited financial institution complies with the rules
88 BNDES, “Temos as melhores opções de financiamento para você,”
87 BNDES, “Indústria, comércio e serviços,” http://www. http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/
bndes.gov.br/SiteBNDES/bndes/bndes_pt/Areas_de_Atuacao/ Institucional/Apoio_Financeiro/Produtos/FINEM/eficiencia_
Industria/. energetica.html.
56 Brazilian Mechanisms to Support the Use of Different Business Models

• BNDES Project Finance program: This program is academia. Some still work as university professors and
applicable under very specific conditions outlined on the serve as consultants as well. Others are small consulting or
program webpage. 89
engineering firms that focus on energy efficiency projects.
6.2 ENERGY PERFORMANCE CONTRACTING Out of the 90-plus ESCOs associated with ABESCO,
Brazil has had firms providing specialized energy efficiency only about 5 or 6—the largest ones—count as “real”
project services since the early 1990s, as well as an ESCO ESCOs, working in the typical business model (in energy
association, ABESCO, since 1997. ABESCO, the Brazilian performance contracting). Several— including Efficientia
Association of Energy Services Companies,90 is a nonprofit (CEMIG, Minas Gerais) and Light ESCO (Light, Rio
entity that officially represents the segment of Brazilian de Janeiro)—were founded by utilities as a project
energy efficiency, representing ESCOs and encouraging implementation arm. Other large private ESCOs include APS
and promoting activities and projects for the growth of the Engenheria and Vitalux Eficiência Energética. Those ESCOs
energy market. According to ABESCO, several financing have implemented projects in the industrial sector, including
lines exist for financing energy efficiency projects,91 including in the cement sector.
the BNDES lines presented above.
According to a 2014 survey conducted by Econoler, the
The majority of the ESCOs associated with ABESCO are commercial, services, and industrial sectors are the main
in fact energy consultants, as they do not all necessarily potential clients of both big and small companies. The big
work with energy performance contracts and do not companies that work 100 percent under energy performance
follow the typical ESCO type of company management. contracting all stated that they focus all of their efforts on
Several professionals (the majority), who work in the industrial sector.
individual companies as consultants, originally came from
89 Ibid.
90 ABESCO, http://www.abesco.com.br/pt/.
91 ABESCO, “Formas de Financiamento de Projeto,” 2015, http://

www.abesco.com.br/pt/forma-de-financiamento/ (February 21).
NOTES
58 Brazilian Mechanisms to Support the Use of Different Business Models

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IMPROVING THERMAL AND ELECTRIC

ENERGY EFFICIENCY AT CEMENT PLANTS:

The material in this work is copyrighted. Copying and/or transmitting portions

Cover Image: Bigstock

1 THE CEMENT MANUFACTURING PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Raw Material Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2 Fuel Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.3 Clinker Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.4 Clinker Cooling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.5 Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2 ENERGY EFFICIENCY TECHNOLOGIES AND MEASURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.1 Raw Material Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2.2 Fuel Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.3 Clinker Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.4 Clinker Cooling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

2.5 Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2.6.4.1 Compressed Air System Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

3 ENERGY EFFICIENCY PROJECT IMPLEMENTATION BARRIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

4.1 Direct Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

4.2 Energy Performance Contracting Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

4.3 Public-Private Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

4.4 Special Purpose Vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

5 INTERNATIONAL BEST PRACTICE BUSINESS MODELS FOR IMPLEMENTING

5.1 Lending Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

5.2 Equity Financing (Private Equity, Risk/Venture Capital, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

5.3 Partial Guarantee Mechanism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

5.4 ESCO Business Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

6 BRAZILIAN MECHANISMS TO SUPPORT THE USE OF DIFFERENT BUSINESS MODELS . . . . . . . . . . . . . . . 56

6.1 Taking on Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

6.2 Energy Performance Contracting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Figure 5: Waste Heat Recovery Installations in the Cement Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Figure 6: Installed Costs for Waste Heat Recovery Systems .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Figure 8: Fixed Static Inlet Section for a Clinker Cooler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Figure 11: Measurement and Manipulation Points in a Process Control System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Figure 12: High-Pressure Roller Press for Finish Grinding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Figure 13: Horomill® Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Figure 14: Basic Layout of Cement Grinding Using Horomill® .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Figure 16: Energy Savings Potential of Horomill® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Figure 19: Schematic of a High-Efficiency Separator/Classifier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Figure 20: Efficiency Ranges for Different Motor Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Figure 21: Structure of Various Financing Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Figure 22: Partial Loan Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Figure 23: Shared Savings Financial Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Figure 24: Guaranteed Savings Financial Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Figure 25: “Chauffage” Financial Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Figure 26: Special Purpose Vehicle Financial Model .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Figure 27: Institutional Arrangements of CHUEE Program .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Figure 28: Krakow Energy Efficiency Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Figure 29: Green for Growth Fund Institutional Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Table 1: Specific Thermal Energy Consumption by Rotary Kiln Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Table 4: Impact of Oxygen Injection on Alternative Fuels and Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Table 5: Monitor and Control Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Table 6: Use of Expert Control System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Table 7: Energy Performance Contracting Models .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

AC Alternating Current IFC International Finance Corporation

Michel Folliet Milagros Rivas Saiz Jigar Shah

2 The Cement Manufacturing Process

4 The Cement Manufacturing Process

and design techniques for fans and with design optimization,

5 INTERNATIONAL BEST PRACTICE BUSINESS MODELS FOR IMPLEMENTING

• Temperature/number of cyclone stages  