Climate Change – Outlook and perspectives of the Brazilian ...

Climate Change – Outlook and perspectives of the Brazilian Cement IndustryBrazilian Cement Industry

Holcim (Brasil) S.A.( )

Valéria PereiraValéria Pereira

Jairo Hernandez

FICEMFICEM

Jamaica - Sept. 2010

Agendag

Brazil CommitmentBrazil Commitment

Brazilian Cement Industry Scenario

Sources of CO2 emissions

How to reduce CO2 emissions?

Final comments

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Agendag





Final comments

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Brazil Commitment Non Annex 1 Country

for 2020: reduction of 36 to 39% of total emissions projected (BAU –for 2020: reduction of 36 to 39% of total emissions projected (BAU Business as Usual);

implementation schedule:

Law 12.187 approved on December 29th, 2009 issued the National P li f Cli t Ch NPCC

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Policy of Climate Change – NPCC

Brazil’s Sector Plans – Focus Area 2010

Action Plan for Preventing and Controlling the “Amazônia Legal” d f t tideforestationAction Plan for Preventing and Controlling the “Cerrado” deforestationEnergy (efficiency, renewable energies)gy ( y g )Agropecuary (improve land use)Substitution of the charcoal from the deforestation to the charcoal from planted forest in the steel industryp y

Years onwardsTransportationTransformation Industry and Durable Consumer Goods IndustryChemical IndustryCellulose and Paper IndustryCellulose and Paper IndustryMining Civil Construction IndustryH lth S i

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Health Services

Brazil’s Mitigation Actions g

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Agendag





Final comments

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Brazilian Cement Industry Scenario12 groups70 plants

y

47 clinker plants23 grinding plants

Capacity: 67 M tons*Capacity: 67 M tons

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* estimated – Source SNIC 2010

Brazilian Cement Industry ScenarioyLow contribution of Brazil in CO2 emissions, compared to the other

developed and developing countries

17,920

17,920Emission per capita

17,9

14

16

1817,9

14

16

18

8,98 1

10

12

14

8,98 1

10

12

14ton CO2/inhab

8,1

6

88,1

6

8

1,52,2

0,92

4

1,52,2

0,92

4

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Brasil China Índia Japão EUA CEBrasil China Índia Japão EUA CESource: MMA 2008

Brazilian Cement Industry ScenarioLow contribution of Brazil in CO2 emissions, compared to the other

developed and developing countries

y

35003500Emission per area

2.967

2500

3000 2.967

2500

3000

1500

2000

1500

2000ton CO2/km2

509

9251000

509

9251000

121278 242

509

0

500

Brasil China Índia Japão EUA CE

121278 242

509

0

500

Brasil China Índia Japão EUA CE

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pp

Source: MMA 2008

Brazilian Cement Industry Scenarioycement production increased 50% in the period of 1990/2005, while

CO2 emissions of the sector increased 30% in the same period

SectorEmission Increase

1990/2005Energy 68%Sector

Emission Increase1990/2005

Energy 68%

CO2 Emission by Sector - 2005

16,5%2,2%

Industrial Process 39%

Cement Emissions*Cement Emissions* 30%30%Agropecuary 41%

Industrial Process 39%

Cement Emissions*Cement Emissions* 30%30%Agropecuary 41%

,

1,7%Energy

Industrial Processes

Agropecuary g p y

Land use and forest fires 70%

Wastes Treatment 77%

Total 62%

g p y

Land use and forest fires 70%

Wastes Treatment 77%

Total 62%21,9%

Agropecuary

Forest Fires

Waste Treatment Total 62%Total 62%* Preliminary Data (calcination only)

Source: Brazilian Government

57,7%

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Brazilian Cement Industry ScenarioBrazil has the lowest CO2 saving potential (absolute and specific),

compared to other major cement producers, based on BAT

y

CO2 Saving Potencial based on BAT (Best Available Technique )

Source: IEA – International Energy Agency/2009

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Brazilian CO2 Inventory 2 yFirst Inventory issued in 2004

data from 1990 to 1994data from 1990 to 1994

cement sector contribution:

clinker and cement produced in the periodclinker and cement produced in the period

Second Inventory on going

d t f 1990 t 2005data from 1990 to 2005

cement sector contribution:

types of clinker and cement produced;

CaO content in clinker;

process description.

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Agendag





Final comments

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Sources of CO2 Emissions: Direct and Indirect 2

Non-kiln fuels : On-site transportation; own electric power production

Calcination:CaCO3

CaO + CO2

Kiln fuelsNon-kiln fuels: raw materials dryingQuarry

Clinker purchase

Electric power purchase

Boundary of CO2 reporting

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y 2 p g

World cement industry Direct CO2 emissions2

45 %Fuel CO2

55 %

45 %

55 %

Process CO2limestone calcinationCaCO3 -> CaO + CO2

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(1) different sources, value depending on source(2) International Energy Agency

Agendag





Final comments

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How to reduce CO2 emissions?2

1. Reducing clinker content in cement d f 1% i li k f t ill d CO b 8k CO /ta decrease of 1% in clinker factor will reduce CO2 by 8kg CO2/ton

2. Improving energy efficiency2. Improving energy efficiencyan improvement of 100MJ/ton in energy efficiency will reduce CO2by 5 kgCO2/ton

3. Substituting fossil fuel by biomass & fossil waste

an increase of 1% of AFR will reduce CO2 by 2,5 kgCO2/ton

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Reducing clinker content of cement reduces ….g


Calcination:CaCO3

CaO + CO2

Kiln fuels

• Both calcination

Non-kiln fuels: raw materials dryingQuarry CaO + CO2 • Both calcination

and fuel CO2

• Generally at

dryingQuarry

positive cost

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Reducing clinker content in cementDue to the low clinker factor, Latin America has the lowest CO2

emission/ton cement

g

Holcim (Brasil) CO2 emission is approx. 472 kg/ton cem (2010)12001200

800

1000

cem

1990800

1000

cem

1990

600

g C

O2

/ ton

c

2000

2005

600

g C

O2

/ ton

c

2000

2005

200

400kg

200

400kg

0

Africa Asia CIS Europe Japan

Australia

Latin

America

North

AmericaFONTE WBCSD / PWC

0

Africa Asia CIS Europe Japan

Australia

Latin

America

North

AmericaFONTE WBCSD / PWC

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Holcim (Brasil)Source: IEA – International Energy Agency/2009

FONTE: WBCSD / PWCFONTE: WBCSD / PWC

Improving energy efficiency by process improvementp g gy y y p p

Kiln fuelsNon-kiln fuels:


Calcination: Kiln fuelsNon-kiln fuels: raw materials dryingQuarry • Reduces fuel CO2

• At negative cost

Calcination:CaCO3

CaO + CO2

At negative cost

Not only process improvement!

Smooth operations can reduce both costs and CO2 emissions

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Substituting fossil fuel by biomass & fossil wasteg y


Kiln fuelsNon-kiln fuels: raw materials dryingQuarry • Biomass directly

Calcination:CaCO3

CaO + COdryingQuarry Biomass directly reduces fuel CO2

• Fossil waste indirectly d f l CO

CaO + CO2

reduces fuel CO2

• At negative cost

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Substituting fossil fuel by biomass & fossil wasteg y

CO2

SO2

CO2

SO2

CO2

SO2SO2

NOx

SO2

NOx

SO2

NOx

Waste Coal, Oil, Coke Coal, Oil, CokeWaste

Waste incineration + cement kiln Waste co-processing in cement kiln

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Regional DifferencesgIn a large country such as Brazil, regional differences of available

resources availability and land occupation strongly affects cement d i d CO i iproduction and CO2 emissions

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Agendag





Final comments

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Final commentsNo single policy instrument can fit all-sector. Different instruments

are needed to provide effective incentives to reduce CO2 emissions d i i h i bl i dand energy consumption in the main sectors, notably: industry,

transports, building and land use. The instruments should incentivize the most CO2 and energy efficient companies and products to grow.

developing countries strive to improve the quality of life of their citizens by providing better living conditions through improved civil i f t t h t t t d tinfrastructure such as transport, water and sewerage system. Concrete is the foundation of this infrastructure.

Holcim (Brasil) is committed to reduce the CO2 net emissions perHolcim (Brasil) is committed to reduce the CO2 net emissions per ton of cement produced by:

usage of mineral componentsg p

improve energy efficiency

usage of alternative fuels and raw materials (AFR)26

Holcim (Brasil)

usage of alternative fuels and raw materials (AFR)

Climate Change – Outlook and perspectives of the Brazilian ...

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