CHP Potential in Indian Industrial Sectors

There are significant opportunities in various industrial sectors in India for producing electrical and
thermal energy simultaneously in the co-generation mode. There is a potential of generating electricity
to the extent of about 15,000 M through cogeneration in core industries such as sugar, bre!eries"
distilleries, #hlor-al$ali, aluminium, fertili%er, paper & pulp, textile, petrochemicals & refineries, rice
mills etc. The fuel used for cogeneration can be conventional li$e coal, lignite, oil, gas or rene!able
sources li$e bagasse, rice hus$, biogas and biomass based fuels. ' revie! of cogeneration " #()
opportunities in some of energy intensive sectors is presented belo!.
1. Aluminium
Introduction:
)roduction of 'luminium from bauxite ore involves purification steps to
produce pure 'lumina *'l+,-. and then electrolysis of 'lumina. The !hole
process is energy intensive. /nergy accounts for about 001 of cost of
production.
There are four ma2or aluminium producers in India vi%. 3'4#,, 5'4#,,
(I56'4#, and I56'4. 3ayer-(all-(eroult technology used by all producers
6uring purification of 'lumina from bauxite ore digestion of ore at a
temperature of about +50
0
# at a pressure of about -5 bar. 7urther the heat
is re8uired in calcinations of the alumina at about 1000 to 1+00
0
#. 7inally the electrolysis process of
producing aluminum re8uires electricity to the tune of 1-000 $h per MT.
Scope
There is a huge scope for #() in this sector by recovering the !aste heat from the exhaust gases
from calcinations section to produce the steam at high pressure and utili%e it to generate electricity
and also provide the re8uired steam for digestion.
'll aluminium producing plants in India have their o!n captive po!er plants to provide reliable source
of electricity. 'll the plants are targeting to reduce energy consumption by 1 to +1 every year for next
5 to 9 years. The demand of aluminium is expected to gro! by about : percent per annum from
present consumption levels. This sector is going through a consolidation phase and existing
producers are in the process of enhancing their production capacity so that a demand supply gap
expected in future is bridged. ;o #() has a good scope in achieving reduction in specific energy
consumption of aluminium. The estimated potential for CHP in this sector is about 60 MW.
2. Distilleries
Introduction
There are about --0 distilleries in India, out of !hich about +50 units are in
operation. The total installed capacity is about -500 million litres of alchohol.
6istilleries generate a large amount of !aste !ater *spent !ash. having high
#,6 and 3,6 values. The !aste !ater cannot be discharged directly !ithout
reducing #,6" 3,6 values belo! ;tate )ollution #ontrol norms. (o!ever, the
!aste !ater can generate biogas through biomethanation and biogas can be
further utili%ed for the production of electricity and thermal energy through a
technology integration comprising a boiler" steam turbine or 1001 biogas engine.
The distilleries can generate steam at desired pressure and temperature to meet
their process re8uirements and produce electricity for captive use or for export.
Scope
Estimated potential for CHP is about 2000 MW. It is only next to bagasse cogeneration. ;ome
distilleries have successfully implemented #() pro2ects based on biogas generation from spent !ash
li8uors through anaerobic digestion. 3iogas utili%ed for po!er and heat generation through gas
engines or steam turbines is no! established technology. ;ome of the biogas based #() plants in
6istillery sector are<
a. + M biogas based po!er generation through gas engines by =anoria #hemicals at
'n$alesh!ar, >u2arat.
a. 1.0 M biogas based po!er generation by 3rihan ;ugar ;yndicate, ;reepur,
Maharashtra.
a. +.0 M po!er generation based on biogas at ;araya 6istillery, ?).
1
#() pro2ects based on biogas from spent !ash not only benefits the industry by gainful utili%ation of
other!ise !aste product but also helps in eliminating pollution.
3. Cement Industry
Introduction
India is the second largest producer of cement in the !orld. The Indian
cement industry is a uni8ue combination of very large to very small capacity
and very modern to very old technology plants. The share of installed
capacity of energy inefficient !et process plants had slo!ly decreased from
:01 in 1:@0 to @11 till 1:90 and thereafter as a result of 8uantum 2ump in
production capacities through modern dry process plants as !ell as
conversion of some of the !et process plants, the share of old !et process
has been reduced to 2ust 51 today. The Indian cement industry comprises of
1+0 large"medium si%e cement plants including grinding units and about -00
mini cement plants. The annual installed capacity of the industry is about 10@ million tonnes and
production !as about 10@ million tonnes during +001-0+. The current trend is to install large si%e
single stream cement plants of 1.+-+.5 million T)' capacity.
#ement plays a vital role in infrastructure development, especially in a developing country li$e India.
The industry also provides direct and indirect employment to people. /conomic liberalisation and
favourable industrial policies, including decontrol of cement, has resulted in enormous gro!th in
cement production capacities in India. The gro!th of cement industry in India is li$ely to be sustained
at the rate of 91 and the cement demand is li$ely to reach about 1@0 million tonnes by +00@-0A.
Therefore the industry is loo$ out for cheaper and environ friendly source of energy. 'verage use of
thermal energy is about A+5 $cal"$g of clin$er and use of electricity is about 9+ $h per MT of cement
production. #ement industry being a continuous process industry re8uires highly reliable po!er
supply. Therefore, most of the plants have captive po!er plants.
#ogeneration of po!er utili%ing !aste heat is an attractive proposition for cement plants for energy
conservation and minimi%ing dependence on the grid. 7urther, cogeneration of po!er !ill also help
reduce environmental pollution as !ell as strain on the economy because of reduction in consumption
of diesel oil. The present scenario therefore, !arrants adoption of cogeneration systems in the Indian
cement industry to ma$e them more economical and to ensure cleaner environment.
(o!ever, in Indian cement industry, this technology has not been implemented so far o!ing to the
follo!ing reasons<
5on-availability of proven technology indigenously
5on-availability of installation or their operating experience in India resulting in lac$ of
confidence
6esign of !aste heat boiler suiting to high dust load.
4arge capital re8uirement and financial constraints o!ing to depressed cement mar$eting
scenario
5evertheless, the cement industry is 8uite $een to adopt the cogeneration system provided its
apprehension !ith regard to technology and economic ris$s are alleviated through installation of
demonstration pro2ects, and same financial assistance.
Scope
5#3 studies indicate that in the dry process cement plants, nearly 00 percent of the total heat input is
re2ected as !aste heat from exit gases of pre-heater and grate cooler. The 8uantity of heat lost from
)( exit gases ranges from 190-+50 $cal"$g clin$er at temperature range of -00-000
o
#. In addition,
90-1-0 $cal"$g clin$er heat is lost at a temperature range of +00--00
o
# from grate cooler. This !aste
heat can be utili%ed for electric po!er generation. There can be many combinations to !or$ out the
best scheme suited to a given situation. In existing plants, cogeneration technologies based on
bottoming cycles have potential to generate up to +5--0 percent of the po!er re8uirement of a plant.
The analysis of the data of +0 cement plants by 5#3 has indicated cogeneration potential ranging
from .0 to !.! MW in different plants depending upon the temperature and "uantit# of $aste
gases from PH and cooler e%haust& number of PH stages& use of gases for dr#ing of ra$
materials and coal etc. There is a total cogeneration potential of about 200 MW in '! plants of
( MTP) and more capacit#.
+
4. Chlor-Alali Industry
Introduction
The chlor-al$ali industry consists of the production of three inorganic
chemicals< caustic soda *5a,(., chlorine *#l+. and soda ash *5a+#,-..
#austic soda and chlorine are produced simultaneously !hile soda ash is
produced during a different process. (ence, the chlor-al$ali industry !ith
respect to #() is covered in t!o parts<
a! Caustic Soda
The caustic soda industry in India is approximately @5 years old. There are
00 ma2or caustic soda plants !ith an average plant si%e of 150 tons per day
*T)6., !hich is relatively small compared to si%es found in developed countries *500 T)6.. 7ive
largescale caustic soda units have been commissioned since 1::A. 6uring the last 9 years, caustic
soda has increased at an average annual gro!th of 01. )roduction of #austic ;oda during the year
+00--+000 !as 1,A01 thousands of MT.
The ra! material necessary in the production of caustic soda consisting of salt and !ater is abundant
and inexpensive. #onversely, the electrical energy re8uired to process salt into caustic soda and
chlorine is expensive and occasionally unreliable. /nergy costs represent 50 to @51 of the total cost
of production.
The electrolysis phase is the most energy intensive. The thermal energy re8uirement is null in the
mercury process as the caustic soda solution formed is highly concentrated *501.. The diaphragm
process results in a caustic soda solution !ith a much lo!er concentration of around 101, and
thermal energy is needed to evaporate and concentrate the solution to 501. The membrane cells
produce a solution of about -0--51, re8uiring less thermal energy. 7ollo!ing Table 0-1 gives
electrical and thermal energy re8uired to produce #austic soda lye of 09.5 1 concentration.
"a#le 4-1. Speci$ic %ner&y Consumption $or 'anu$acturin& Caustic Soda (ye)
Diaphra&m *1++4! 'ercury
*1+++!
'em#ran
e *1+++!
Po,er Consumption *$h"t of 5a,(.
6# )o!er +5@1 +9-- +-0+
'#"6# losses 10A 1@0 100
'uxiliary 05A -0A +50
"hermal ener&y $or e-aporation :0+ 0 109
Total 00@A --00 +909
total in *+,t o$ .a/H ('.6' ((.-- (0.2!
6uring the last 10 years, production has shifted to membrane cell technology. This shift, combined
!ith technology improvements in mercury and membrane cell processes and energy conservation
programs intended to reduce auxiliary and rectifiersB energy consumption, has resulted in an
estimated overall energy savings of more than 101.
's energy in the form of electricity and heat is re8uired for caustic soda process, #() is the right
choice to achieve better efficiency. (ydrogen gas is produced as a by-product of caustic sodaC it can
be captured and used as a fuel in on-site po!er co-generation. The heat can be used for the
evaporation of caustic soda and for the preparation of the brine. Moreover hydrogen is clean fuel. The
use of by-product hydrogen gas can substitute up to -51 of the total fuel re8uirement in a caustic
fusion plant.
#! Soda Ash
The energy needs for the production of soda ash ta$e on different forms< electrical, thermal and
mechanical energy and feedstoc$s. #o$e is used as a source of carbon dioxide in the soda ash
production during the limestone calcination.
T!o types of soda ash are produced< Dlight soda ashE !ith a specific !eight of about 500 $g"m and
Ddense soda ashE of about 1000 $g"m. 4ight soda is directly used in the detergent sector and certain
chemical intermediates. The remainder is transformed by crystalli%ation after drying to produce dense
soda mainly used in the glass industry. This extra step re8uires further energy. Table 0-+ sho!s the
energy re8uirements at different stages in the production of soda ash for the standard ;olvay process
-
and the dual process. ?nfortunately, this level of detail is not available for the dry lime process.
(o!ever, the basic advantage of the use of dry lime instead of mil$ lime is a better steam balance
and the reduction in the ra! material inputs, resulting in energy savings. The consumption of steam
and lime is much lo!er as compared to other processes.
"a#le 4-2. Speci$ic 0inal %ner&y Consumption in Di$$erent Sections in a Soda Ash Plant *1++4!
*123t! Sol-ay Process Dual Process
Manufacturing The
rma
l
/le
ctric
al
"ot
al
Ther
mal
/lectrical "otal
4imestone
#alcination
0.+ 0.1 4.3 - - -
;alt purification 0.0 0 4.5 0.0 0 4.5
#alcination of
sodium bicarbonate
0.+ 0.1 4.3 0.+ 0.1 4.3
#rystalli%ation,
drying and
purification
0.+ 0.1 4.3 0.+ 0.1 4.3
'mmonia recovery +.5 0 2.5 - - -
Manufacture of
ammonia chloride
- - - - 0.A -
?tilities and general
re8uirements
0.0 0.A 1.1 0.0 1.+ 1.6
"otal 15.
+
1.1 17.4 +.2 2.2 11.4
Table 0-- sho!s the detail of the soda ash industry plants in India. -01 of the total production
capacity consists of the state of the art dry lime process, 01 the dual process and @+1 the
standard ;olvay process.
"a#le 4-3. India Soda Ash Plants Characteristics
Company (ocation 8ear Process Capacity
F000
t"y
1
Tata #hemicals >u2arat 1:09 ;tandard
;olvay
9A5 --1
;aurashtra #hemicals
4td.
>u2arat 1:@0 ;tandard
;olvay
@50 +51
>(#4 >u2arat 1:99 6ry lime 5+5 +01
5irma 4td >u2arat 1::9 6ry lime -@5 101
Tuticorin 'l$alis Tamil
5adu
1:9+ 6ual"
Modified
115 01
6c! 4imited >u2arat 1:-: ;tandard
;olvay
:@ 01
Scope
Co&eneration: The ;olvay process re8uires a large amount of steam, a big part of !hich is used as
lo! pressure steam, in2ected directly into the process for the recovery of ammonia *steam stripping..
/nergy savings can be reali%ed by reducing steam pressure in a set of turbo-generators !hile
generating electricity. This electricity is produced !ith a GcogenerationG of steam, !ith an excellent
efficiency *about :01. because all the steam leaving the turbines is used in the process. In
comparison, the same 8uantity of energy !ill be generated, in a classical po!er station, !ith a much
lo!er efficiency *about -01. because of the lost released steam. #omparison of the primary energy
needs of a co-generation unit *based on gas. - for a soda ash plant - !ith that re8uired for the
separate production of steam and electricity *by a classical po!er station for electricity and boilers for
steam., sho!s that it is possible to achieve -01 savings !ith co-generation.
Total estimated potential for CHP in this sector is about '00 MW.
5. Dairy
0
Introduction
6airy industry operation involves mil$ processing consisting of follo!ing steps<
1. (omogeni%ation
+. )asteuri%ation involving rapid heating and cooling of mil$
-. )ac$aging and
0. ;torage
' bloc$ flo! diagram is sho!n belo!<
7urther conversion of mil$ into value added products li$e yoghurt, cheese, ice cream, mil$ po!der,
condensed mil$ re8uires electricity along !ith heating and cooling at various stages. Therefore,
instead of depending on unreliable state grid electricity *as case may be in the most of the ;tates. to
run plant, #() can be good and economical option to produce po!er, heat and refrigeration !ith
higher overall efficiency. 7or dairy industry, biogas or other rene!able agriculture source of energy
can be easily available at lo! cost. This can be used to generate po!er and steam as per
re8uirement. ;team can be used for 'bsorption refrigeration.
Total estimated potential in this sector is about 500 M.
5. 0ertili9ers
Introduction
Pro$ile o$ the 0ertili9er industry:
7ertili%er sector is very crucial for Indian economy because it provides a
very important input to agriculture. Moreover the fertili%er industry, specially
the ammonia urea plants, are highly energy intensive in their operation.
There are vide variation in the vintage of fertili%er plants in the country. In
terms of feedstoc$, ma2or feedstoc$s presently being used in the fertili%er
plant are natural gas, naphtha and fuel oil " 4;(;. ,ver the years, the
ma2ority of industry has improved its performance significantly in terms of
5
specific energy consumption and capacity utili%ation. There are several state-of-the-art fertili%er plants
operating in India. There are around +A fertili%er plants in the country engaged in the manufacture of
urea.
2. Salient $eatures o$ Indian $ertili9er industry
7ertili%er sector is very crucial to Indian economy, provides important input to agriculture sector. It is
regulated by government policies administering the price of fertili%er and the production.
?rea production is energy intensive process.
5atural gas, naphtha, 4;4;"fuel oil are used as feedstoc$ for producing urea
#ost of energy varies from @51 to 9A1 of production costs.
;pecific energy consumption of plants varies bet!een 5.5- >cal"MT of urea and 10.+
>cal"MT.
Ma2ority of industry is energy conscious and focuses on energy management. ,ver the years,
the industry has improved its energy performance by bringing do!n the specific energy
consumption and improving capacity utilisation. The fertili%er industry is among the most
energy intensive industry particularly all fertili%ers involving production of intermediate
ammonia. 7eedstoc$ for ammonia production is natural gas, naphtha, fuel oil *4;(;. or coal-
all sources of primary energy. 7rom ammonia you can produce urea, ammonium sulphate,
ammonium nitrate *re8uires nitric acid again from ammonia as ra! material., M'), 6'), '5)
etc. 'lmost A0 to 901 variable cost of ammonia is through primary energy sources.
'mmonia and urea production in a complex is a good example of #(). In ammonia process based on
5> as feedstoc$, some reactions li$e primary reformation are endothermic !hile reactions li$e
secondary reformation, shift conversion, ammonia synthesis are highly exothermic. 'll the exothermic
heat of reaction is utili%ed to produce high pressure steam. In the )rimary Heformer furnace, the
!aste heat from the flue gas is recovered to pre-heat process streams li$e natural gas, process air,
combustion air and also to generate or superheat steam. The high pressure steam is then used for
running steam turbines of various compressors li$e syngas compressor, process air compressor,
ammonia refrigeration compressor and pumps li$e 37 pumps, #,+ removal solution circulation
pumps and also process re8uirement. ' modern ammonia plant is more or less self sufficient !ith
respect to steam.
In India, almost all ammonia" urea plants are provided !ith captive po!er generation. In earlier plants,
() boilers !ere provided to generate po!er as !ell as provide re8uired steam to ?rea plant to drive
#,+ compressor turbine and provide process steam through extraction of steam turbine.
Scope
In some modern ammonia" urea plants, captive po!er is generated through running of >as Turbine
and steam is generated through (H;>. The steam generated in (H;> is used in urea plant for
steam turbine.
In nitric acid production, the reaction of oxidation of ammonia to produce nitric acid is exothermic. The
heat of reaction is used to generate medium pressure steam, !hich is partially used for drive process
air compressor and rest is exported to other process plants.
Through use of #() along !ith integrated steam net !or$, the energy consumption in Indian recent
ammonia plants is near to A >cal" MT !hich is comparable to any modern International ammonia
plant.
Estimated CHP potential in this sector is about (200 MW.
6. Iron and Steel Industry
Introduction
Pro$ile o$ the Steel Industry
The Indian integrated steel industry consists of nine ma2or plants located
mostly in the eastern areas rich in both iron ore deposits and coal. The
location of the plants !as conceived !ith the intention of having them close
to ra! material sources. In the days of supply driven mar$et !hich !as also
hedged from external competition, the emphasis !as mostly on production
and not on cost cutting or energy efficiency. ith the change in the business
environment !here mar$et driven forces became stronger and in vie! of the
integration of global environment concerns !ith the national concerns a
mar$ed shift to!ards incorporating energy efficiency and environment
protection in the business activities has ta$en place. Initially focus !as on
@
production technology and it !as only recently in this process that energy efficiency concerns !ere
seeded into the thin$ing of the respective managements. The plants have a !ide range of facilities
and this reflects in the energy consumption of the individual plants as !ell.
Salient $eatures o$ Indian Steel Industry
Installed capacity -0 MT of finished steel
0+1 of finished steel production in integrated steel sector
591 of installed production in secondary steel sector
;/# ranges from +:.5 >I"tcs to 01.9 >I"tcs
'verage ;/# of Indian industry *-- >I"tcs. is slo!ly approaching that of ?; industry *+@
>I"tcs.
Most efficient steel ma$ing countries are Iapan *19 >I"tcs. and ;outh =orea *1: >I"tcs.
,ver the years, a number of energy conservation measures ta$en by each plant.
%ner&y $rom ,aste
The utilisation factors are inversely correlated to the ;pecific /nergy #onsumptions *;/#s.. (o!ever
an important off-lier in the analysis carried out is the I;)4 plant !hich is mostly dependent on the
;crap " 6HI-/'7 route for steel ma$ing. /ven though the utilisation factor for the plant is only @@1 the
;/# is only +@ >I"tcs implying that the use of ne! routes of steel ma$ing !ith optimal capacities
could be used to harness energy for better purposes. The plant uses the 6HI off-gases for electricity
production.
In the steel industry, the type of cogeneration based on recycled ener&y is used.
Hecycled energy, typically a form of bottom cycle #(), is a uni8ue J although not novel J !ay to
recover energy that has been Fbought and paid forB. This recycled energy still has residual value after
it has been used for its initial purpose in an industrial process. Hecycled energy can intricately couple
!ith energy-recovery generation e8uipment in an industrial process.
;ome recycled energy pro2ects have been a part of the standard production process for many
decades. 7or example, the steel industry has been burning its by-product streams *including blast
furnace gas, co$e gas and off gas. in boilers for plant steam or electric generation or both, through a
condensing, condensingJextraction or bac$-pressure steam turbine. (istorically though, only A51 of
the energy in !aste gases has been utili%ed !hile the rest !as flared. hile the cost for these
innovative pro2ects can be substantial compared !ith other non-core business investments, they
employ proven technology and can be practical investment strategies.
In the steel industry specifically, three ma2or processes lend themselves to recycling< the co$ing
process, the blast furnace process, and the reheating process. The co$e-ma$ing process can produce
latent and sensible energy in a non-recovery co$e process, or chemical energy in the form of co$e
oven gas *#,>. from a recovery co$e process. The terms FrecoveryB and Fnon-recoveryB refer to
!hether the #,> constituents *such as tar or naphthalene. are recovered or !hether they are
destroyed by combustion !ithin the co$e batteries. hen recycling energy from a non-recovery co$e
process, heat is routed through heat-recovery steam boilers to ma$e high-pressure steam !hich is
then sent to a steam turbine. hen installed on a recovery operation, a recycled energy pro2ect
cleans the #,> and collects the constituents either for disposal or sale. The resulting gas has a
heating value of approximately 500 3T?"scfh *5.+ $h"m
-
"hour., !hich is half that of natural gas. The
gas is then burned in an alternative fuel boiler to ma$e high-pressure steam and sent to a steam
turbine.
3last furnaces, exhaust a combustible gas fittingly termed blast furnace gas *37>.. 37> has a
heating value of 100 3T?"scfh *1.0 $h"m
-
"hour., about one tenth that of natural gas. This exhaust
by-product can be burned in a boiler to produce high-pressure steam, and the steam can be passed
through a steam turbine, directly to a process, or both. 3oth recovered #,> and 37> can also be
burned in an industrial gas turbine *a top-cycle approach. in combination !ith a heat-recovery steam
generator to ma$e high-pressure steam, !hich can be routed through a steam turbine and bac$ to the
plant for process uses.
Heheat furnaces are used to heat up slabs of steel produced by the blast furnace process or an
electric arc process. The slabs are heated up to glo!ing orange, and are then sent through a cleaning
and reducing mill !here they are flattened and coiled for delivery. The furnaces typically have high
volumes of exhaust at temperatures above 900K7 *0-0K#.. The exhaust can be routed through heat-
recovery steam generators and ma$e high-pressure steam, and the steam can be routed through a
steam turbine and bac$ to the process.
A
Hecycled energy a good idea even !ith all the engineering costs, capital costs and operational ris$s.
These pro2ects have a long list of benefits that must be evaluated for their environmental and or
financial values. These benefits include<
reduced energy purchases J oil, gas and electricity
decreased exposure to fuel price volatility n displaced investment in other non-cogeneration
energy facilities
improved competitive position and reduced costs
reduced environmental impact
production of clean po!er !ith no incremental fuel emissions or greenhouse gases
generation of emission credits.
Many companies need to reduce their impact on the environment if they !ant to increase production
capacity.
Potential $or :ecycled %ner&y and CHP
There are still prospects for cogeneration in the steel industry. The reason that the steel industry has
such a small amount of cogeneration is the internal competition for capital facing many companies.
#ompanies must 2ustify energy pro2ects !hile dealing !ith issues such as volatile local gas and
electricity rates, as !ell as the high costs of interconnection and bac$-up po!er that regulated utilities
have been able to charge. ?nfortunately, the electrical utility industry does not generally support these
cogeneration pro2ects and perceives them as threats to their customer base.
The potential of cogeneration in the steel-ma$ing processes is vast, but technological hurdles and
complex utility contractual relationships sometimes steer less determined companies a!ay from the
long-term environmental and financial benefits. (o!ever, nearly every analysis that attempts to
address efficiency issues !ithin the steel industry itemi%es heat recovery and cogeneration as one of
the many improvements available to existing mills. 7or example, in the electric arc process, nearly
+01 of the energy input is lost in the off-gas, but as the process is a batch process and is
discontinuous, it can increase the economic and technological hurdles due to operating time, cycling
stresses or increased capital costs.
The steel industry is a highly capital-intensive industry. Most companies !ant to concentrate on their
core business< the production of a high-8uality finished steel product that meets their customerBs
re8uirements. Therefore, a large portion of available capital is used to accomplish these goals. There
has been a trend in the industry to consider using third-party participation to support non-core
investments. #ogeneration is certainly an area that !ould apply to this concept, !hereas plants have
an opportunity to reduce energy costs !hile conserving capital investment. ,bviously steel companies
!ant to choose a reputable partner that has expertise in this area to ensure reliable and efficient
operation of these facilities.
;hould you develop, construct, o!n, operate and maintain a cogeneration facilityL ;hould you enter
into a cogeneration partnershipL To ans!er these 8uestions, you must ans!er the follo!ing<
hat is your strategic outloo$ on on-site po!er and thermal plants, and does your core
business include recycled energy and #()L
If you do plan to put in more po!er and thermal plants, does your company prefer to do it
themselves or !ith a third party, and ho! rigorously has this been examined and
communicated to executive managementL
hat is your for!ard vie! on energy commodity pricing in future years, and ho! does that
affect your competitive position in five yearsL
The most important technical and economic concept that must be considered is the thermal and
electrical balance !ithin the plant and the thermo-mechanical efficiency that results from it. #()
pro2ect capacities must coincide !ith the electrical and thermal needs of the plant, or the developer
must mar$et a part of its output on the mar$et. This second scenario !ill force the developer into
entering either the thermal supply mar$et or the po!er mar$et or both. 3oth have their complications,
but only one of them is highly regulated, maybe even unfairly regulated, in every industriali%ed nation
in the !orld. (aving a cogeneration partner that can mitigate some of these developments and
ongoing mar$et-driven ris$s !ill allo! the host to substantially profit from reduced utility purchases but
still ad2ust 8uic$ly to mar$et changes.
(Ref: An article in Earthscan Feb. 2006 by Brennan Downes)
9
Scope
In many Indian Iron & ;teel plants #() through !aste heat recovery have been implemented.
Incidentally, a number of pro2ects of po!er generation through !aste heat recovery are registered as
#6M pro2ects. There is an estimated potential of (000 MW po$er generation through CHP in
the Steel industr#.
7. Su&ar Industry *;a&asse Co&eneration!
Introduction
;ugar industry has the maximum potential of #() in India. There are over
5A5 sugar mills spread over : states of India. 'll sugar mills produce
bagasse during sugar production and use it for po!er and steam generation
for internal use. #onventional use of bagasse for this purpose is inefficient.
Indian sugar mills both in private and cooperative" 2oint sectors have started
ac$no!ledging the importance of high efficiency grid connected cogeneration
po!er plants for generating exportable surplus after meeting their o!n
demand of po!er and heat. 3y improving efficiency by steam production at
higher pressure above @A $g"cm
+
and temperature near about 500
0
# more
po!er can be generated and steam re8uired for the process also can be met.
Scope
)ro2ections for IndiaBs potential for bagasse cogeneration range from -500 M to 5000 M. This
potential is expected to be tapped by +01+ resulting in annual savings of more than Hs. 0000 crore
*?;M :00 million. annually. It !ill also contribute annual #,+

emission

reduction by -: million MT.
(o!ever, by the end of ;ept. +00@, cumulative achievement !as only 5A+ M. The follo!ing Table
indicates the state-!ise potential for existing conventional and energy efficient sugar mills in India<
Sr.
.o.
State Potential $or e<porta#le surplus= '>
Con-entional
su&ar mills
%ner&y e$$icient
su&ar mills
1. Maharashtra 1000 1+50
+. ?) 1000 1+50
-. Tamil 5adu -50 500
0. =arnata$a -00 000
5. ') +00 -00
@. 3ihar +00 +50
A. >u2arat +00 000
9. )un2ab 150 +50
:. (aryana & others 100 000
Source: Estiates by !"#$%& an' !&ES Annual Re(ort
?. :e$ineries @ Petrochemicals
Introduction
Hefining capacity, as measured by primary distillation capacity, has
expanded rapidly in recent years. 't the end of the 1::9":: fiscal year,
refining capacity stood at @A.5 million tonnes *mmt., compared to 11: mmt at
the beginning of the +00-"00 fiscal year, a rise of over A51 in five years.
Many existing refineries !ere expanded over this period, but more than half
the increase !as accounted for by the commissioning of the +A mmt
Heliance grassroots refinery at Iamnagar in 1::: *see Table --+.. India no!
has 1: refineries, o!ned among five ma2or corporate groups. ;ince +001, a
number of smaller refining companies have been consolidated into the
Indian ,il >roup and 3harat )etroleum #orporation. In +00-, the ,il and 5atural >as #orporation,
IndiaBs ma2or upstream oil and gas producer, entered the do!nstream mar$et though the ac8uisition
of the ma2ority shares of the :.A mmt Mangalore refinery.
:
IndiaBs refineries are relatively simple. #omparing the ratio of primary upgrading capacity to crude
distillation *Dcrac$ing to distillation ratioE., most large Indian refineries have a crac$ing-to-distillation
ratio of less than 001C only the ne! large Heliance refinery meets the average of the ?.;. refining
industry *5@1..
The main fuels used in the refinery are refinery gas, natural gas, and co$e. The refinery gas and co$e
are by-products of the different processes. The co$e is mainly produced in the crac$ers, !hile the
refinery gas is the lightest fraction from the distillation and crac$ing processes. 5atural gas and
electricity represents the largest purchased fuels in the refineries. 5atural gas is used for the
production of hydrogen, fuel for co-generation of heat and po!er *#()., and as supplementary fuel in
furnaces.
Most refineries have some form of onsite po!er generation. In fact, refineries offer an excellent
opportunity for energy efficient po!er generation in the form of combined heat and po!er production
*#().. #() provides the opportunity to use internally generated fuels for po!er production, allo!ing
greater independence of grip operation and even export to the grid. This increases reliability of supply
as !ell as the cost-effectiveness. The cost benefits of po!er export to the grid !ill depend on the
regulation in the state !here the refinery is located. 5ot all states allo! !heeling of po!er *i.e , sales
of po!er directly to another customer using the grid for transport. !hile the regulation may also differ
!ith respect to the tariff structure for po!er sales to the grid operator.
Scope
Estimated potential in this sector is about 22 MW.
+. Paper @ Pulp Industry
Introduction
The pulp and paper industry is one of IndiaNs core sector industries and is
about 100 years old. India !ith an installed capacity of around A million
tonnes and production of 5.0 million tonnes ran$s as the !ithin the fifteen
largest producers of paper in the !orld.
The paper industry can be classified into three ma2or segments- ne!sprint,
printing and !riting paper *)). and industrial paper. 3ased on the ra!
material used, paper producers can be classified as !ood based, agro based
and !aste paper"recycled paper companies. Most of the paper producers
have captive plantations or have long term supply contracts !ith plantations.
't present, there are more than 500 pulp & paper mills in the organised and unorganised sectors
India.
The Indian paper industry is highly fragmented !ith players having as small a capacity of +0 T)6 to
those having A00 T)6 and utilise different $inds of fibrous ra! materials. The relatively larger mills,
around +5 in number, utilise hard!ood and bamboo, !hile the smaller ones use agro residue fibres
such as bagasse, !heat & rice stra!, 2ute, grasses and recycled fibres. The pulp and paper industry
converts fibrous ra! materials into pulp, paper and paperboard. In a first step ra! materials are
processed into pulp and in a second step paper and paper products are produced out of this pulp.
6ifferent plant categories exist depending on !hether they only produce pulp *pulp mills. for further
processing or only paper out of purchased pulp and"or recycled !aste paper *paper mills..
The third category, the integrated pulp and paper mills, combines the t!o processes and is most
common in the paper industry. The five principal steps in pulp and paper production are !ood
preparation, pulping, bleaching, chemical recovery, and paperma$ing.
;i%e, type and 8uality of the paper-producing units are very diverse. More than 501 of paper and
paperboard products !ere produced in only about 101 of the mills. The average si%e of a paper mill
in India !as 10,000 tonnes per year *T)'., compared !ith 95,000 T)' in 'sia and about -00,000
T)' in /urope and 5orth 'merica. 'bout @51 of IndiaBs paper mills are small mills, i.e., having a
capacity of less than 19,000 T)'.
Most small and medium si%e pulp and paper mills cannot economically provide chemical recovery and
pollution control systems. Therefore, they are highly polluting industries contributing substantially to
the overall level of emissions and environmental problems.
10
Scope
CHP Potential
/stimated #() potential of about 950 M
)otential may increase, !ith grid connected cogeneration plants
/lectricity bill +00- and conducive provisions thereof
>asification, 3iomass and 7ossil fuel combinations possible
;arriers
Inade8uate a!areness and poor energy efficiency, particularly in small mills
7re8uent use of 6> sets, fluctuations in grid supply & 8uality
)ulp & paper industry sector, using A5-95 1 energy process heat & 15-+51 as electrical
po!er, 8ualifies for cogeneration
#aptive " cogeneration plants set up by very fe! & large paper mills
(igh pressure, high efficiency Han$in cycle technology for captive generation of steam and
po!er yet to be adopted
;erious attempts for year round captive " cogen po!er not made across
Inade8uate a!areness on technology to be adopted
4ac$ of ade8uate finance for implementing these pro2ects
)oor capacity for conceiving, designing, implementing & operating energy efficiency
improvement, captive cogen and biogas pro2ects
4ac$ of availability of total solution providers
*Hef< )roceedings of 5ational '!areness or$shop, ;ept.+00@ organi%ed by #ogenindia.
14. "e<tile Industry
Scope
"e<tile Industry Characteristics
The Indian textile industry contributes about 101 to the national industrial
output and about +51 to the total national export earnings. The textile
industry in India is a $ey sector in terms of employment as it is the second
largest employment provider after agriculture !ith direct employment of
about -0m.
#otton is the predominant fabric used in the Indian textile industry J nearly
@01 of overall consumption in textiles and more than A51 in spinning mills
is cotton. India is among the !orldNs largest producers of cotton !ith over :
million hectares under cultivation, and an annual crop of around - million
tons.
)rocesses and technologies differ considerably across factories. #omposite mills cover complete sets
of processes, from ra! material to final products, ho!ever most manufacturing units tend only to deal
!ith a part of the process. IndiaBs textile industry is generally divided into the organi%ed and the
unorgani%ed sector. The organi%ed sector includes spinning mills and composite units. The
unorgani%ed sector comprises po!er looms, handlooms and garment sectors.
)rocessing of fabric or yarn is a multi stage process and involves heat and po!er consumption in
most of such steps. The main operations can be classified as scouring, dyeing, !ashing and drying.
hile boiling is done at around :0
o
# in ;oft flo!" Iet dyeing" Iigger the dyeing operation may be
carried out at any temperature bet!een @0
o
to 1-0
o
# depending upon the type of fabric to be dyed
and the machine to be used.
6epending upon the need, a fe! other operations are also carried out, !hich re8uire hot !ater and
the final product is dried by hot air in a stenter or in drying range. (eat is usually supplied through
heat exchangers by steam or heating oil $no!n as thermic fluid oil.
6yeing re8uires steam to heat the li8uor to the re8uisite temperature and maintain the temperature for
a specific period of time.
Oarious operations in a textile mill are po!er driven. 'lso heat in the form of steam and thermic fluid is
utili%ed in various textile processors. (eat generated through the combustion of fuel is utili%ed to
generate steam from !ater in a boiler and to heat thermic fluid in a thermic fluid heater. /ver
escalating fuel cost has increased the cost of heat energy to a considerable extent, !hich is one of
the important factors contributing to the higher processing cost, and hence the production cost of
11
textile. (igher production cost thin profit marginsC tough global competition collectively have posed a
serious problem for survival of Textile Industry. #() can be effectively used in the textile industry.
Scope
Estimated potential of CHP in this sector is -00 MW.
11. ;CHP *;uildin& CHP!
Introduction
3#() describes any technology that simultaneously generates both useful electrical and thermal
*heat and "or cooling. energy in commercial or residential buildings. There is a !ide variety of
technologies that can be used in 3#() applications ranging from 1$ micro-#() to multi-M
reciprocating engine and gas turbine installations. ;imilarly fuels used in 3#() applications can also
range !idely from fossil-fuel based rene!able sources.
3#() can operate at efficiencies of A01 to :01, displacing on-site boilers and grid-based electricity.
In India the gro!th of 3#() has a good potential as the Indian economy is gro!ing at fast pace. More
and more commercial buildings li$e shopping malls, office buildings, airports, hospitals, IT par$s are
being constructed. It is causing lot of strain on po!er supply. ?nder such circumstance #() has a
good potential. 'bout -0 M of 3#() is currently installed. More capacities can definitely be added.
Scope
's per report by '6/, the CHP potential of about 6!0 MW is estimated $ith lo$ gro$th
scenario. With high gro$th scenario& the potential $ill be much more.
1+