Cement capacity at India's Ultratech crosses 150mn t/yr
India's biggest cement maker Ultratech has crossed 150mn t/yr in capacity because of recent expansions and is on track to reach nearly 200mn t/yr over the next three years. Higher cement output typically raises consumption of petroleum coke and coal.
Bombay Stock Exchange-listed Ultratech's capacity reached 151.6mn t/yr early this month with the commissioning of two greenfield cement plants of 2.7mn t/yr each. These units are in the southern state of Tamil Nadu and central state of Chhattisgarh.
The latest expansions have raised its domestic capacity to 146.2mn t/yr. The firm also operates 5.4mn t/yr of capacity of in the UAE.
Debottlenecking at four units in India last month led to a combined capacity addition of 2.4mn t/yr.
Ultratech has added 50mn t/yr of capacity in less than five years with an investment of 320bn rupees ($3.84bn), it said, although it took the company 36 years to reach a capacity of 100mn t/yr.
The firm has expanded its capacity by 18.7mn t/yr over the last 12 months. It is also executing expansion projects to add another 35.5mn t/yr across 16 locations and is in the process of acquiring 10.75mn t/yr of capacity from Indian private-sector firm Kesoram Cement. Ultratech will invest Rs324bn over the next three years as it sees a "significant headroom for long-term growth", it said.
India is the world's second-largest cement producer after China but has a low per capita consumption of 240-250 kg/yr compared with a global average of 500-550 kg/yr, according to industry estimates. Most Indian cement producers are investing in expansion projects to address rising demand.
Ultratech sold 27.32mn t of cement over October-December 2023, up by 6pc from a year earlier but slowing from double-digit growth in the four previous consecutive quarters. The firm posted year-on-year sales growth of 16pc in July-September 2023, 19.6pc in April-June, 14pc in January-March and 12pc in October-December 2022.
Ultratech used 44pc of coke in its kiln fuel mix during October-December, up from 39pc in the previous quarter, partly replacing thermal coal as coke remained competitive.
Imported thermal coal accounted for 46pc of the company's fuel mix in the latest quarter, down from 51pc in July-September. Domestic coal and alternative fuels accounted for the remainder. Ultratech used 43pc coke in its fuel mix during October-December 2022.
The company's blended coke and coal fuel costs for October-December eased to $150/t, down by 25pc from a year earlier and by about 7pc on the quarter. The blended fuel cost was at a historic high of $200/t during July-September and October-December 2022, after coke and coal prices hit record highs in early 2022 following the start of the Russia-Ukraine war.
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India’s NTPC tests 20pc torrefied biomass co-firing
India’s NTPC tests 20pc torrefied biomass co-firing
Singapore, 13 May (Argus) — India's state-owned generator NTPC has demonstrated 20pc torrefied biomass-coal co-firing at a 110MW unit at its Tanda power plant in the northern state of Uttar Pradesh. The test was part of NTPC's efforts to expand biomass co-firing across its coal-fired fleet as it aims to lower emissions. Each percentage point of biomass co-firing has the potential to reduce carbon emissions by approximately the same percentage, while also helping in mitigating air pollution caused by direct burning of agricultural waste in farmlands, NTPC said. The generator currently conducts 7-10pc non-torrefied biomass co-firing at NTPC's Dadri power plant, near Delhi. Torrefied biomass was found suitable for higher co-firing percentages without significant system modifications, NTPC said. The torrefied biomass was produced by heating biomass in the absence of oxygen to exhibit characteristics akin to high-quality coal. The gross calorific value and cost of torrefied biomass pellets were currently equivalent to imported coal, it added. Costs could be reduced with the maturity of technology and market in the long run, NTPC said. India's push to cut coal reliance NTPC's efforts are part of India's broader goal of cutting emissions as the country aims to trim reliance on coal in the coming years and attain net zero by 2070. Delhi had initially asked Indian utilities to adopt co-firing of at least 5pc biomass pellets by October 2022. But only a fraction of utilities followed the directives, which eventually prompted the federal power ministry to review the biomass co-firing policy. The ministry amended the policy in June last year and delayed the start date of co-firing, asking all coal-based thermal power plants with bowl mills to use a minimum 5pc blend of biomass pellets made primarily from agricultural residue, with effect from the start of India's 2024-25 fiscal year on 1 April. The threshold would increase to 7pc from the start of 2025-26, the ministry said. Plants with ball and race mills should co-fire the same percentages of torrefied biomass pellets made from agricultural residue during the same time frame, it said. India has surplus biomass supplies of about 230mn t/yr, largely from agricultural residue, the power ministry previously said. NTPC tenders NTPC has awarded biomass supply contracts totalling about 5.2mn t for 20 power plants operated by NTPC, and a joint venture plant. Out of which, it has so far co-fired 316,657t of biomass pellets at 13 NTPC power plants and at the joint venture plant. The generator is setting up biomass pellet plants at various locations to ensure a steady supply of pellets for co-firing. It has set up a 22 t/d non torrefied pellet plant at Lehra Mohabbat, Bhatinda in Punjab state. It is building a 100 t/d torrefied and 100 t/d non-torrefied pellet plant at joint ventureAravali Power's Jhajjar plant. It is also building a 50 t/d non-torrefied pellet plant at the Dadri plant. By Saurabh Chaturvedi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
China, US pledge joint methane action at climate talks
China, US pledge joint methane action at climate talks
San Francisco, 13 May (Argus) — The US and China have pledged to further co-operate on methane reduction, among other topics, following a first meeting between the countries' new climate envoys in Washington during 8-9 May. The meeting follows video conferencing between the two sides in January under their "working group on enhancing climate action in the 2020s" initiative. China and the US reaffirmed their 2021 agreement to co-operate on reducing carbon emissions in the power generation sector, cutting methane emissions and boosting renewable energy in the " Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis " last November in San Francisco. China confirmed the appointment of Liu Zhenmin to replace Xie Zhenhua as the country's climate advsior in January. Liu's US counterpart John Podesta replaced John Kerry in January. Liu and Podesta discussed co-operation "on multilateral issues related to promoting a successful COP 29 in Baku, Azerbaijan" at the latest talks, the US state department said on 10 May. They also discussed issues identified in the Sunnylands statement, including energy transition, methane and other non-CO2 greenhouse gases, the circular economy and resource efficiency, deforestation,as well as low-carbon and sustainable provinces, states and cities. They plan to co-host a second event on reducing methane and other non-CO2 greenhouse gases in Baku and "conduct capacity building on deploying abatement technologies". It remains to be seen how the two new climate advisors will bring the two countries closer in climate negotiations. The Sunnylands statement and the close relationship of their predecessors were instrumental in bringing consensus at last year's Cop 28 UN climate summit in Dubai. China released a much anticipated methane plan last November, although Xie has flagged challenges with data monitoring in the sector. But China and the US have agreed to develop and improve monitoring to "achieve significant methane emissions control and reductions in the 2020s". China has also not signed on to the Global Methane Pledge to cut methane emissions by 30pc by 2030, from 2020 levels. The country's emissions may also rise more than expected after it redefined its meaning of energy intensity, according to the Helsinki-based Centre for Research on Energy and Clean Air. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s J-Power steps up coal-fired power phase-out
Japan’s J-Power steps up coal-fired power phase-out
Osaka, 10 May (Argus) — Japanese power producer and wholesaler J-Power is stepping up efforts to halt operations of inefficient coal-fired power plants, while pushing ahead with decarbonisation of its existing plants by using clean fuels and technology. J-Power plans to scrap the 500MW Matsushima No.1 coal-fired unit by the end of March 2025 and the 250MW Takasago No.1 and No.2 coal-fired units by 2030, according to its 2024-26 business strategy announced on 9 May. It also aims to decommission or mothball the 700MW Takehara No.3 and the 1,000MW Matsuura No.1 coal-fired units in 2030. The combined capacity of the selected five coal-fired units accounts for 32pc of J-Power's total thermal capacity of 8,412MW, all fuelled by coal. While phasing out its ageing coal-fired capacity, J-Power is looking to co-fire with fuel ammonia at the 2,100MW Tachibanawan coal-fired plant sometime after 2030 and ensure it runs on 100pc ammonia subsequently. The company plans to increase the mixture of biomass at the 600MW Takehara No.1 unit, along with the installation of a carbon capture and storage (CCS) technology after 2030. The CCS technology will be also applied to the 1,000MW Matsuura No.2 unit, which is expected to co-fire ammonia, after 2030. J-Power plans to use hydrogen at the 1,200MW Isogo plant sometime after 2035. The company is also set to deploy integrated coal gasification combined-cycle and CCS technology at the 500MW Matsushima No.2 unit and the 150MW Ishikawa No.1 and No.2 units after 2035. The company aims to cut carbon dioxide emissions from its domestic power generation by 46pc by the April 2030-March 2031 fiscal year against 2013-14 levels before achieving a net zero emissions goal by 2050. This is in line with Tokyo's emissions reduction target. The company aims to expand domestic annual renewable output by 4TWh by 2030-31 compared with 2022-23, along with decarbonising thermal capacity. Its renewable generation totalled 10.4TWh in 2023-24. Tokyo has pledged to phase out existing inefficient coal-fired capacity by 2030, which could target units with less than 42pc efficiency. The country's large-scale power producers have reduced annual power output from their inefficient coal-fired fleet by 13TWh to 103TWh in 2022-23 against 2019-20, according to a document unveiled by the trade and industry ministry on 8 May. It expects such power generation will fall further by more than 60TWh to 39.700TWh in 2030-31. Global pressure against coal-fired power generation has been growing. Energy ministers from G7 countries in late April pledged to phase out "unabated coal power generation" by 2035 or "in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with countries' net zero pathways". By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
New Zealand’s Genesis Energy to resume coal imports
New Zealand’s Genesis Energy to resume coal imports
Sydney, 8 May (Argus) — New Zealand's upstream firm and utility Genesis Energy plans to resume thermal coal imports later this year to feed its dual gas- and coal-fired Huntly power plant. The resumption was because of lower domestic gas production and rapidly declining coal stockpiles, and will mark the firm's first coal imports since 2022. Coal inventories at the 953MW Huntly plant, — New Zealand's largest power station by capacity and the country's only coal-fired facility — recently slipped below 500,000t, down from 624,000t at the end of March, and will fall below 350,000t by the end of the winter. This will trigger a need to purchase more coal to maintain a target operational stockpile of around 350,000t ahead of winters in 2025 and 2026, the company said on 8 May. Imports are currently the most efficient option for the quantity the company will need, with a delivery time of around three months, chief executive Malcolm Johns said. Genesis typically imports from Indonesia, the company told Argus . Gas production in New Zealand has dropped at a faster rate than expected, with major field production in April down by 33pc on the year, Genesis said. Lower gas availability typically leads to more coal burn, because the Huntly plant runs on gas and coal. This is in addition to an extended period of low hydropower inflows in recent months, which required higher thermal generation to ensure supply security. A prolonged outage at Huntly's unit 5 gas turbine between June 2023 and January 2024 also led to an even greater need for coal-fired generation, Genesis said. Biomass transition The company — which is 51pc owned by the state — is the second-largest power retailer in New Zealand, behind domestic utility Mercury, according to data from the Electricity Authority. It has a NZ$1.1bn ($659mn) programme for renewable power generation and grid-scale battery storage , which includes a potential replacement of coal with biomass at Huntly. But the transition to biomass "will take some years," Johns said. Genesis has successfully completed a biomass burn trial at Huntly last year and has collaboration agreements with potential New Zealand pellet suppliers, but there is currently no local source for the type of pellets needed for the plant. Genesis is hoping to move to formal agreements "as soon as counterparties are able". The company will not consider importing pellets, it told Argus . "We will only use biomass if we can secure a local New Zealand supply chain that is sustainable and cost-effective," it said. Domestic gas production New Zealand's three-party coalition government said separately on 8 May that the "material decline" in local gas production threatens energy security, blaming the previous Labour party-led government for "policy decisions which have disincentivised investment in gas production." The decisions — which were part of the former government's pledge to achieve a carbon-neutral economy by 2050 — led to a reduction in exploration for new gas resources since 2021, while suppressed maintenance drilling reduced production from existing gas fields, according to a joint release from energy minister Simeon Brown and resources minister Shane Jones. "Due to this significant reduction in gas production, the government has also been advised that some large gas consumers are expressing concern about their ability to secure gas contracts," the government said. Major industrial users such as Canada-based methanol producer Methanex have been forced to reduce production as a result, it noted. "We are working with the sector to increase production, and I will be introducing changes to the Crown Minerals Act to parliament this year that will revitalise the sector and increase production," Jones added. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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