The proposed activity of using scrap tyres as supplemental fuel/energy source is less expensive than fossil fuels and offers the potential advantage of decreasing carbon emissions. This project is a value-addition in the cement manufacturing sector as it contains about the same amount of energy as oil, and 25 percent more energy than coal. This means that each ton of the TDF used could replace the impact of 1.25 tons of coal and coal mining and reduces carbon emission by 20-25 percent.
Scrap tyres are a sound source of energy generation, and the TDF plant is an effective way of dumping and disposal of used tyres. Apart from using tyres, Lucky Cement is also considering using other alternative fuels from raw materials like municipal solid waste (MSW) and rice husk, which are known as ''Refused Derived Fuel'' (RDF). The installation and commissioning of TDF and RDF plants will reduce Lucky Cement''s operational costs by 25-30 percent, thus providing yet another cost-effective business solution.
In case of cement kiln applications, the ash resulting from TDF and coal combustion becomes an integral component of the product itself, thereby eliminating the ash disposal problem. Burning of Tyre Derived Fuel (TDF) has much better consistency of operations than other alternative fuels.
Lucky Cement has also introduced the Waste Heat Recovery mechanism through which it has substantially reduced its cost by co-generating electricity by the wasted heat, which was previously being fed to the atmosphere.
This power generation unit does not need any externally fed fuel to operate, but it uses the wasted heat from the system as its fuel. Thus, the organisation is saving cost, environment and curtailing its energy needs in a unique way.
This is a Chinese technology, branded as ''Sinoma''. The design of this plant hinges around the idea of encapsulating all the wasted heat from the production system and using this steam to heat up boilers which eventually run the turbine, thus producing electricity. The estimated annual CO2 reduction by virtue of Waste Heat Recovery (WHR) plant at Pezu is 29,918 metric tons and by virtue of ''Dual Fuel conversion'' of furnace oil engine is 29,000 metric tons and WHR at Karachi plant is 50,000 metric tons.
Lucky Cement also operates its own 175 mw power generation facility. After the successful implementation and operation of the WHR plant at both production facilities, Lucky Cement has saved 79.9 million kg of carbon dioxide from being emitted into the atmosphere.
The coal consumption at Lucky Cement has been reduced from approximately 170 kg/ton of clinker in 1994 to approximately 140 kg/ton of clinker. Power consumption for production has been reduced from 115 kWh/ton of clinker in 1994 to 90 kWh/ton of clinker. The Company annually saves approximately 29,000 tons of CO2 emission by converting its power generation from HFO to natural gas.
Cement production is one of the most energy-intensive industrial processes in the world. In many regions, energy cost is 50 percent to 60 percent of the direct production cost of cement. Energy cost is incurred due to the need for large quantities of thermal heat for the kiln, calcinations and drying processes and electrical energy for operation of motors for grinding mills, fans, conveyers and other motor driven process equipment.
Lucky Cement primarily relies on coal for the thermal heat requirement and on natural gas for the generation of electricity for all of its electrical energy requirements. Lucky Cement has in-house power generation units at both its Karachi and Pezu plants. All generation units are based on natural gas. A total of 488,123,000 kWh of electricity was generated during the year through the use of natural gas.
Being the domestic leader, Lucky Cement undertakes the responsibility of driving all resources and human intelligence towards a comprehensive strategy which ensures that the reductions in environmental degradation are meaningful and sustainable and not just profit-oriented. This way, Lucky Cement has yet again adopted a pioneering stance in being environmentally aware and responsible organisation.