Waste Heat Recovery Opportunities in Cement Market and Supplier Analysis. Intercem Conference. Nairobi, Kenya June 16-18, 2014

Transcription

1 Waste Heat Recovery Opportunities in Cement Market and Supplier Analysis Intercem Conference Nairobi, Kenya June 16-18, 2014

2 Waste Heat Recovery in Cement Cement production more than doubled b/w 2002 and 2012 In Sab-Saharan Africa the sector s growth averages 8% pa WHR proven technology with limited uptake, except in China 739 installation in China vs. 126 installation in the rest of the world A GREAT BUSINESS OPPORTUNITY THAT NEEDS TO BE UNLOCKED? 2

3 Waste Heat Recovery in Cement Potential to generate 20% to 30% of plant power requirements (reducing purchased/captive power needs) Reduces operating costs Protects against rising electricity prices High Pressure Steam Steam Turbine Generator Condenser Enhances power reliability Improves competitive position PH Boiler Kiln Exhaust Lowers specific energy consumption, reducing overall greenhouse gas emissions Kiln Exhaust NSP - Preheater Feedwater Rotary Kiln AQC AQC Boiler Clinker Cooling Tower Clinker Cooler Air Source: Adapted from Holcim

4 WHR Market Status WHR is a proven technology WHR Systems in Cement Number of Units Initially spear-headed by Japanese suppliers China is now the leader in WHR deployment and sales for cement applications China India Japan Thailand Pakistan Other Asia Mid East Europe Americas Rest of World Source: OneStone Research, CemPower

5 WHR Development in China Success factors for China Development of Cement WHR Systems in China Specific laws/regulations mandating that new NSP clinker lines have WHR installed Much lower CAPEX Rising energy prices In some cases concern over reliability of grid-delivered electricity Government commitment to reduce GHG New WHR Units per Year 200 WHR Units 150 Accum. Units Source: OneStone Research, CemPower Accumulated WHR Units 5

6 Generation efficiencies range from 15 to 25% Amount of available heat depends on: Moisture content of raw feed Number and efficiency of preheater/precalciner stages Amount of excess air and infiltration Configuration of clinker cooler system Project economics depends on net power output WHR Performance Power Capacity, MW Power Generation Potential, MW WHR Generation Potential as Function of Kiln Capacity 45 kwh/t clinker 25 kwh/t clinker 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 10,500 Clinker Capacity, tpd WHR Generation Potential as Function of Exhaust Temperature Assumptions: 5,000 tpd clinker line Gases cooled to 150 C at boiler outlet Source: OneStone Research 2013, Penta Engineering Preheater Exhaust Temperature, oc 6

7 WHR Project Costs Equipment and installation costs influenced by: Size Technology Steam cycle Organic Rankine cycle Kalina cycle Location Supplier Source: Holcim 2013, OneStone Research 2013, IFC Installed Costs, $/kw Installation Costs, M US$/ MWe 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, WHR projects in Europe and North America WHR projects in Asia Power System Size, MW China Equip. Typical Range: 1,100 1,400 $/kw Local Scope Typical Range: 1,600 2,200 $/kw Typical Range: 2,000 3,000 $/kw 0.0 CHINA ASIA EUROPE Based on 5000 tpd, 4-5 stage preheater, 3-4% moisture content 7

8 WHR Project Economics Economics influenced by: Plant size WHR system costs O&M costs (2.5% of capital costs per year for steam) Operating hours Value of displaced electricity (purchased or captive) Value of increased power reliability Source: Holcim 2013, OneStone Research 2013 Simple Payback, Years Annual Savings, million USD Annual Operating Savings from WHR Electricity Price, US$/MWh Simple Paybacks for a 10 MW WHR System Electricity Price, US$/MWh 20 MW 10 MW 5 MW 1 MW Assumptions: 10 MW WHR system 7,500 annual operating ours $2,000 / kw installed cost Annual O&M costs 2.5 % of capital cost Auxiliary power requirements of 7% 8

9 WHR Market Opportunity Evaluated potential market in eleven countries Cement industry outlook Power and fuel costs Power reliability Estimated 1.6 to 2.9 GW market; $5 billion investment Strong potential in Asia and Latin America Opportunities in Africa and Middle East 9

10 Country WHR Market Analysis 10

11 WHR Investment Potential Estimated investment potential, $ mln India Turkey Vietnam Mexico Egypt Thailand Brazil Pakistan Philippines Nigeria South Africa MWe $1,400 $400 $480 $490 $490 $90 $430 $160 $170 $200 $170 Existing WHR Capacity WHR Capacity Potential 11

12 IFC s Project Structuring and Financing CHUEE Project Example WHR 7.5 MW Total investment $7.9 m ROI 25.2% Electricity generation cost US 2/kWh Project is owned and operated by the cement plant Other project financing structures: Direct IFC financing (debt and equity) Supplier financing Off balance sheet financing (BOOT) 12