June 15, 2009GFC Toronto IC&C1 How to make money with Alternative Fuels Wim M.G.M. Heldens CEO IC&C B.V. Independent Clinker & Cement Consultancy.

June 15, 2009 GFC Toronto IC&C 1

How to make money with Alternative Fuels

• Wim M.G.M. Heldens• CEO• IC&C B.V.• Independent Clinker & Cement Consultancy

June 15, 2009 GFC Toronto IC&C 2

President Obama Announces Steps to Support Sustainable Energy Options May 5, 2009

"If we are to be a leader in the 21st century global economy, then we must lead the world in clean energy technology. There is no way back!”

How Big Is Your Footprint?

June 15, 2009 GFC Toronto IC&C 3

“Your footprint” World Clinker Production

World cement production 2 billion tons / yr

CO2 production = 1,45 billion tons / yr CO2 from raw materials = 780 million tons / yr CO2 from fuels = 670 million tons / yr A 1 MW windmill saves 2000 t CO2/yr. So 335.000 windmills out of fuels

NOx ~ 2 kg / tons clinker = 3,4 million tons / yr

SOx ~ 0,25 kg / tcl = 0,5 million tons / yr

You can not escape to reduce your Footprint

June 15, 2009 GFC Toronto IC&C 4

Mission IC&C: Make Money From Sustainability!

Sustainable Development

Strategy IC&C

Energy EmissionsAlternative fuels / mat.

Max

Min

Profit

June 15, 2009 GFC Toronto IC&C 5

95% alternative fuels 50 % biomass

fuel price < 2 € / ton clinker normally 12 € / ton clinker!

700 kg CO2 / ton clinker

normally 820 kg CO2 / ton

(20% less CO2 achieved by biomass)

NOx reduction 50% by SNCR urea

SO2 reduction 80%

Key performance data 2008 Best Practice Plant:Dutch Cement Maastricht (The roots of IC&C)

June 15, 2009 GFC Toronto IC&C 6

The thread is an opportunity;Cement kilns have unique properties for co-processing

Unique properties of our burning process to destroy all substances of primary and alternative fuels:

Flame temperature > 2000 °C Long residence time Enough oxygen Rich in active lime (binds hazardous elements)

No increase of most emissions due to input of alternative fuels

Ashes are incorporated in the clinker no residues left

June 15, 2009 GFC Toronto IC&C 7

Worlds Best Practice Plant: ENCI Maastricht

Solutions realized: R = Q x A x M

Result = Quality x Acceptance x Management

Chemistry and quality clinker under control

Stable production and maintain production level

Good flame formation Reliable dosing systems Acceptation by operators Licences: win-win deals

Safety and health guaranteed Good working conditions 95% Alternative Fuels Smell problems under control Blockages under control Ring building under control Etc.

June 15, 2009 GFC Toronto IC&C 8

Process: stable clinker production at rising AFR-rates!Cement plant: Maastricht

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Clinker production

Alternative fuel %

June 15, 2009 GFC Toronto IC&C 9

Key factor: How to implement AF’s successfully?

Select AF’s that comply with the basic requirements (IC&C-criteria). Ensure supply of AF. Preferably negative priced. Ensure acceptation by government, neighbors etc. Control effects on process, emissions and clinker quality and

production (IC&C) Ensure a correct burner and flame adaptation (IC&C) Ensure acceptation by operators, maintenance by correct design of

installations

“Operators have to like to work with AF’s”

June 15, 2009 GFC Toronto IC&C 10

Example: IC&C experience within Dutch Plant

Multi fuel system for 10 fuels Dosing of 5 powdery fuels via 1 tube to main burner Secondary fuel injector on top of the burner for 4 different coarse

fuels Liquid installation for spent glycol Natural gas for start up NOx reduction by SNCR Mercury issue

“The use of AF installations is no item”

PPDF Carpets-rests

Glycol bottom

Anode cokeBed/Fine-CokeLigniteSewage sludgeAnimal mealIR-Flame detectionNatural gas

Cooling air

Concrete

Swirl air

Axial air

June 15, 2009 GFC Toronto IC&C 11

Profit: Make money 1

Fuel cost reductionWith fossil fuels like pet coke: 12 € / ton clinker

Dutch Cement with 95% AF: < 2 € / t clAt 1 million ton clinker: 10 million € / yr

Emission reduction

CO2 from fuels165.000 t / yr at 12 € / ton = 2 million € / yr

NOx (US): 800 mg / Nm3 ~ 2 kg / t cl ~ 2.000 t / yrAt 50% reduction 1.000 ton at 1200 € / t = 1.2 million € / yr

June 15, 2009 GFC Toronto IC&C 12

Profit: Make money 2

Investments Keep it simple and sustainable Investments are paid by part of the profit of AF’s

(€ 13,2 Million yearly)

IC&C experience with a lot of sustainable projects shows: Pay back time: average < 1 year IRR: 35 - 80%

Sustainable Development

Strategy IC&C

Energy EmissionsAlternative fuels / mat.

Max

Min

Profit

June 15, 2009 GFC Toronto IC&C 13

How to make your implementation sustainable!

Learn from the experience of IC&C experts

“Don’t do it alone”

Development Dutch cement took over

15 years and still develops

“Take your advantage”

June 15, 2009 GFC Toronto IC&C 14

Tools of IC&C

Alternative Fuels Assessment: the burning properties, flame formation and NOx building (IC&C database)

IC&C Assessment Model of the effects off Alternative fuels and raw materials (AFR) on production process, emissions, quality, costs, etc. (IC&C Kiln Expert Module)

IC&C Costs model for the effects on investments and profitability

June 15, 2009 GFC Toronto IC&C 15

How can IC&C help you

1. Assessment existing situation and first proposal for stepwise improvements: quick scan

Definition of the goals of new situation: costs, sustainability Inventarisation of all aspects; chemistry, fuels, materials,

production, emissions, burner, existing equipment etc. Selection from available existing Alternative Fuels according to

the IC&C norms Assessment of all aspects when introducing AF’s Presentation results by IC&C

2. Prefeasibility study Prediction of the effects on process, quality and emissions Estimation of investments and profit

3. Support during feasibility study, tests and implementation

June 15, 2009 GFC Toronto IC&C 16

It Must

It Can and is Proven

It Saves Money

Questions?

Think about YOUR profit Enjoy your lunch !