Cement cos use fly ash to earn carbon credits
Cement companies have started blending fly ash, a waste produced by power generating units, with clinker to bring down their cost of production.
Shree Cement, which has two plants in Rajasthan with a combined capacity of 6 million tonne per annum, has been issued 3,50,000 carbon credits for a period up to December 2006. At current market prices, the company hopes to make around Rs. 25 crore. Shree Cement expects to earn 90,000 credits per year till 2012 for its three other projects which are in the pipeline.
There are over 30 similar projects by different companies in the country, which have received approval at the national level and are awaiting nod from the international authority.
"There is a huge opportunity in this field. Big money can be made if one approaches it in an innovative way," says Prashant Bangur, a senior executive at Shree Cement, who has been steering carbon initiative at the company.
Of late, there has been an increasing trend towards blended cement to keep the cost low and raise overall production level so as to meet growing domestic demand. At present, over 70% of cement produced in India are blended.
If a company, which uses 25% of fly ash in the cement, decides to raise it to 35%, it can save up to 8-9% on fuel and 5% on power. Fuel is mainly consumed in turning limestone deposits into clinker. Less fuel consumption means less carbon dioxide emission per tonne of cement produced. The company can claim carbon credits for the amount of reduction in emission.
Source: Economic Times
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