Global Energy Management System Implementation: Case Study

India
Dalmia Cement (B) Limited
Dalmia Cement (Bharat) Ltd Case Study Snapshot
ISO: 50001 Certified in Year 2014
Industry Dalmia
Cement(B) Ltd
Product/Service Ltd
Cement

Location Ariyalur

Energy Management System ISO 50001

Energy Performance Continuous

Improvement Period Improvement

Energy Performance 4.9

Improvement (%) over
Dalmia Cement (B) Ltd , Ariyalur Plant is One of the improvement Period
Most Efficient plant and Having World Class
Manufacturing Facility Total Energy Cost saving over 2060000 USD
improvement period

Business Case for Energy Management Cost to implement EnMS 540000

Company Profile
Payback period On EnMS 0.25 years
The Group was founded in 1935 by Jaidayal Dalmia, implementation (Years)
with the cement division being set up in 1939.
Total Energy saving over 38,303 GJ
 Pan India presence in Cement business improvement period (GJ)
 Grown to be a capacity of 25 Million Tons per
annum. Total Co2- emission reduction 39371 MT of Co2
over improvement period
 3rd largest cement manufacturer in India
Drivers/Business Case:
 Manufacturing of Special cements like Oil
well, Air strips & Railway sleeper grade In cement manufacturing operations energy
cement consumption cost accounts for 30% of total production
 Group Turn over 7000 Crores cost
Objective to implement ISO 50001 is to achieve
“The Real Profit comes when we grow with
higher levels of energy efficiency ultimately leading to
Nature” operational efficiencies
By Mr. Mahendra Singhi Group CEO
Our Vision: “To Consistently Surpass Expectations of all
Dalmia Cement Bharat Ltd. - Cement Plant Stakeholders.”
Ariyalur Unit, is located at Thamaraikulam Village of
Our Mission:
District Ariyalur, Tamil Nadu State. The plant is having a
single line, of capacity 4500 TPD, with an annual “Effectively Utilize Resources and be Recognized as a
capacity of 3.0 Million tons of Cement. It manufactures Benchmark in the Cement Industry.”
OPC and PPC.
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Our Core Values: Reduction of Specific Heat Consumption: (Kcal/Kg
Clinker)
 Commitment
 Humility
 Trust & Respect
 Integrity
“Values define our life direction and Journey”
Energy Management Program:
Dalmia Cement (B) Limited, Ariyalur Plant won
the “Best Energy Efficient Unit” from National Energy
Conservation (BEE) consecutively two years on 2012 &
2013. Reduction of Overall Specific Power Consumption
(Kwh/MT Cement)

Dalmia Cement (B) Limited, Ariyalur Plant won

the “Excellent Energy Efficient Unit” from CII –
Hyderabad consecutively Five years from 2012 to 2016.

Energy Performance improved to 5.0% from the

baseline.

History of Energy Reduction Approach: Business Benefits:

Reduction of Upto Clinkerization Power (Kwh/MT) ISO 50001 is based on the management system model
of continual improvement also used for other well-known
standards such as ISO 9001 or ISO 14001. This makes it
easier for organizations to integrate energy management
into their overall efforts to improve quality and
environmental management.
 ISO 50001:2011 provides a framework of
requirements for organizations to:
 Develop a policy for more efficient use of energy
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 Fix targets and objectives to meet the policy
 Use data to better understand and make
decisions about energy use
 Measure the results
 Review how well the policy works, and
 Continually improve energy management.

EnMS Development and Implementation

Organizational:
 Reduce environmental impact
 Create transparency on how energy resources are
managed Be able to identify future projects that will  Sharing Productivity & Power Figures on every Monday
integrate into your new structure meeting
 Promote energy efficiency throughout your  Daily Pep Talks & Awareness about Energy
organization Establish positive external relations Conservation
and public image  Coordination Meeting Everyday - Monitoring and
 Raise awareness and create greater employee reviewing of Production & Energy parameters for all
stewardship the section
 Reduced operational and overhead costs lead to
increased profitability
 Reduced air emissions, such as GHGs
 Increased assurance of legal, internal compliance
 Increased understanding of energy use and
consumption via defined methods, processes of
data collection

Energy Review and Planning:

 Monthly Energy meeting Co-ordinated by Energy

Manager  Why- Why Analysis For the every Break Down
 Energy Task Force Team formed with cross  Break Down Analysis Meeting on Monthly
functional team members and best energy saving  All the nuisance bag filters are taken into DP mode
initiatives discussed and implemented.  VFDs taken in line for energy conservation and
 Best tracking system for speedy implementation optimization (More than 65Nos of VFDs Installed)
 Quick fund allocation by the management based on  All major drives like Process Bag filter Fans , PH Fans,
the payback period less than 2 years Coolers Fans, Kiln etc. are running in VFD
 Best Energy saving initiatives are awarded every  Expert Optimizer (EO) implemented for Raw Mill,
Monthly Gate meeting Cement Mill, Coal Mill & Pyro
 More Focus on significant drives and taking  Mill Fans are running maximum SPRS mode
continuous efforts to reduce the significant by using  Continuous up gradation of Process Logic in DCS
this chart  Auto start / stop logic developed for compressors, belt
conveyors and fans to avoid the idle running hrs
 Replacing LED in place of Conventional lights

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Cost Benefit Analysis: Approach Used to Validate Results:
The ISO 50001 energy management standard is a PDCA – Continuous improvement
proven framework for industrial facilities to manage
energy including all aspects of energy procurement and
use. An energy management system establishes the  P for Plan: An energy plan is the first thing to do. This is
structure and discipline to implement technical and the determination of the initial energy baseline, the
management strategies that significantly cut energy energy performance indicators (EnPIs), the strategic
costs and greenhouse gas emissions and sustain those and operative energy objectives and the action plans.
savings over time.  D for Do: In this phase, planning and action takes place,
improvements are aimed for and implemented.
Total Indicators and objectives for energy performance are
Annual Electrical Invest.
Year of Title of Energy Annual thermal savings Annual Payback defined on the basis of the results of the energy
Savings achieved Made
S. No Implemen Saving project Savings assessment.
tation implemented Units Rs Tons of Rs Rs Rs
Months
 C for Check: Action only makes sense if it leads to the
Million Million Fuel Million Million Million desired result. The plans executed in the “Do” phase
1 2013-14 Modifications 4 22.8 3758 56.8 79.6 28.3 4.27 must continually be checked to ensure that they are
2 2014-15 Modifications 2.9 14.6 1004 8.93 23.53 0.7 0.36 effective.
3 2015-16 Modifications 3.671 18 1511 8.04 26.40 5 2.27  A for Act: The constant measurements are broken
Grand Total 10.59 55.76 6272.51 73.77 129.53 34.00 6.89 down in reports. These form the basis for further
studies, in order to improve the energy-related
Approach For Energy Conservation Initiatives
performance and the EnMS.
towards Excellence:
Development and Use of Professional Expertise,
Training & Communications:

 The importance of conformity with the energy policy,

procedures and requirements of EnMS
 Their roles, responsibilities and authorities in achieving
the requirements of EnMS.
 Benefits of improved energy performance.
Communication:
 EnMR ensures in association with energy task force and
HODs effective internal communication on the
following.
 Energy Policy
 Energy objectives, targets and management action
plans
 Importance of meeting energy performance
improvement
 Legal and other requirements
 Significant energy use and consumption
 Roles and responsibilities to implement and maintain
EnMS standard
 Concerns of interested parties (suggestion box)

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Suggestion box for Encon: Criteria for identifying the areas of
significant energy use:
 Calculate the energy consumed for the past one year.
 Segregate the areas in to convenient sections
(processes, areas, facilities, equipment’s, systems and
personnel)
 Prepare a pie diagram and indicate the percentage of
energy consumption and use.
 Treat the section which consume more than 3% of
Employee Engagement: total consumption, is to be treated as significant use
Employees from the all levels and various functions
and consumption.
are encourage and motivated to participate in the EnMS
activities through, Suggestion scheme, forum of quality  Based on the above significant area, the sectional
circles, Cross functional teams of various sections of the head shall identify energy use areas within the
plant and nominating them for internal and external section
programs, to depute for visit of other cement plants to
see best practices implemented there.  Sectional head further prepare register of Energy
Management Review taking into significant energy
use of the area and rate them using the following
Professional Expertise:
table
Energy Professionals and experts are called from
external agencies like CII, BEE accredited auditors are
engaged for various EnMS activities.

Tools & Resources:

All the Employees are well versed with existing
ISO 9001, ISO 14001, OHSAS 18001 and ISO 50001.

Identifying the opportunities for

improving energy performance
The following shall be considered for identifying the
opportunities for improving energy performance
 Areas of significant energy use
 Best available technology
 Best practices available
 Bench marking – National and International

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 Alternate sources of energy

Checking, Monitoring, Measurement &
Analysis
 Awareness level
Criteria for Potential Saving & Feasibility: The following key characteristics at specified intervals
Saving Potential – consideration: below:
 Significant energy uses and section wise and sub
 Cost saving potential Section wise power consumption and fuel
 Energy saving potential (kWh) consumption is monitored online and reviewed on
daily basis.
 Thermal Saving Potential (Kcal)  Non-significant and above 30Kw motors load will be
 CO2 saving potential monitored online. Load will be reviewed on half
yearly.
Investment considerations:  Relevant variables related to energy use once in a
quarter.
 Investment cost and internal rate of  Energy performance indicators once in a quarter.
return
 The effectiveness of the action plans in achieving
 Payback period objectives and targets once in a quarter.
 Evaluation of actual Vs expected energy
 Shutdown requirements consumption once in quarter.
 Duration of implementation  Over all energy performance will be reviewed against
average industrial bench mark once in a year.
 Resources (purchasing, manpower,
storing, treatments, handling, etc.) Competence, Training and Awareness:
Steps taken to maintain Operational Control
The personnel at each relevant functional level are
and Sustain Energy Performance provided training in a planned manner so that they are
Improvement Operational Controls: aware of:
 The importance of conformity with the energy
 Each functional head shall maintain the policy, procedures and requirements of EnMS
operation and maintenance manuals and ensure  Their roles, responsibilities and authorities in
the maintenance of equipment, facilities, achieving the requirements of EnMS.
processes, personnel and systems (FEPPS) in  Benefits of improved energy performance.
order to monitor and reduce the energy use.
 Ensures inspection and preventive maintenance  The impact, actual or potential, with respect to
of equipment, facilities, processes, systems to energy use and consumption, of their activities.
ensure optimum energy use and consumption.
Internal Audit of EnMS
 Ensure the regular cleaning of the equipment to
ensure optimum use and consumption of energy  Energy Management Representative ensures
 Ensures operating and maintaining the facilities, conduct of Internal Audits once in 6 months to
processes, systems and equipment’s in determine whether the Energy Management
accordance with the manufacturer’s System conforms to planned arrangements to the
recommendations. requirements of ISO 50001:2011 and EnMS
requirements established by M/s. Dalmia Cement
(Bharat) Limited and it is effectively implemented
and maintained.

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 Energy Management Representative prepares
an Annual Audit program taking into
consideration, the status and importance of Keys to Success:
processes as well as the results of previous
audits. Audit plan is prepared specifying audit  Reduction of Specific Power consumption by In-
objectives, audit criteria, scope and methods. House modification of Primary Crusher tripping
 The Internal Auditors are trained and are avoided by modifying the gear alignment and
selected based on Education, Training, Skills, Crusher group Start & Stop sequence reduced &
for conducting audits. thereby increased the availability from 75 to 85%
 EnMR maintain the record of audit results in  Innovative increase of Raw Mill output from 375 to
the form of non-conformity and corrective 450 TPH and Reduction of Specific Power
and preventive action and Summary of audit consumption from 14.3 to 13.3 Kwh/MT by following
results modifications
 Raw Mill inlet duct Modification
Lessons Learned:  Nozzle Seal Gap Reduction
 Nozzle Ring Blockage Pattern Modification
ISO 50001 amplified their existing  Centre Feed chute Modification
commitments to environmental stewardship by  Grit Cone Modification
committing to continuous improvement of energy  Classifier Annular Gap Reduction
performance. As part of this commitment, they are  False Air Reduction from 11.2 to 7%
developing an energy management system to  Modification of Silo feed Elevator discharge
understand how and where energy is consumed and chute & VFD Installation
used on campus and create a process to make  Clinker production increased from 4500 to 6500 TPD
continuous improvement in energy performance. by modifying the Kiln inlet Riser duct , Cooler vent
Their experience highlights the need for stakeholder Fan and Primary Air Fan
engagement and clear goal setting when creating  Cement Mill output increased from 300 to 330 TPH
energy management systems for manufacturing and Reduction of Specific Power consumption from
industry. 26.5 to 24.8 Kwh/MT
Further, the Dalmia Cement (B) Limited
experience underlines the effectiveness of applying Rewards for Employee Involvement on Encon Projects
the plan-do-check-act cycle to energy performance,
despite the potential difficulties of adjusting to this
context for evaluating energy performance.

Future Focus:

 For instance, renewable power is a major focus

area for the Company with a target of reaching
20% of total energy consumption by 2019.
 Focus to achieve PPC overall specific power
consumption less than 50 units.
 At Dalmia Cement, currently 7% of the power is
being generated using renewable energy and
this is likely to go up to 20% by 2019