An outlook into energy consumption in large scale industries in India: The cases of steel, aluminium and cement

All the growth-oriented sectors in a developing economy consume enormous energy in their production processes. Steel, aluminium and cement are the key manufacturing industries in India which provide inputs to various other sectors such as construction, transportation, power transmission, etc. As a result, their demand is consistently rising. These industries are heavily energy-intensive and use raw materials such as iron ore, coal, electricity, steam, and fuel oil, whose supply can act as severe production constraints over a period of time and can hinder sustainable development. Hence it becomes imperative for these industries to continuously innovate more energy efficient techniques. This paper makes a foray into the energy demand for these industries and explores the potential of any future reduction in their energy consumption. The paper offers a projection scenario for 2001–2031 (based on the MARKAL Modeling exercise for India) for possible catching up in reduction in energy consumptions in these sectors under alternative situations. The analysis suggests the existence of some plausible energy efficiency enhancing techniques in these industries. Exploring these options will definitely ensure cost effectiveness and competitiveness of these three key sectors in the global market.

Research highlights
► Energy reduction potential exists in Indian steel, aluminium and cement sectors and can go up to 8%, 17% and 6% respectively in these sectors in 2031 if appropriate energy saving technologies are introduced and implemented.
► In aluminium industry energy reduction potential is huge in fabrication stage in the production process and extensive improvement can be done in terms of energy efficiency in this stage. Cogeneration of power through waste heat recovery, change in norms in standard to take advantage of producing composite cements using more than one industrial waste, like both fly ash and slag are important required changes in Indian cement sector.
► Enormous emission reduction is possible over time with proper energy saving measures, as established by modelling projections.
► Government support (import duty exemptions, stricter emission norms, etc.) to some extent can speed up this process of exploring energy-saving opportunities in these industries.