Analysis of Energy-Efficiency Opportunities for the Cement Industry in Shandong Province, China

China's cement industry, which produced 1,388 million metric tons (Mt) of cement in 2008, accounts for almost half of the world's total cement production. Nearly 40% of China's cement production is from relatively obsolete vertical shaft kiln (VSK) cement plants, with the remainder from more modern rotary kiln cement plants, including plants equipped with new suspension pre-heater and pre-calciner (NSP) kilns. Shandong Province is the largest cement-producing Province in China, producing 10% of China's total cement output in 2008. This report documents an analysis of the potential to improve the energy efficiency of NSP kiln cement plants in Shandong Province. Sixteen NSP kiln cement plants were surveyed regarding their cement production, energy consumption, and current adoption of 34 energy-efficient technologies and measures. Plant energy use was compared to both domestic (Chinese) and international best practice using the Benchmarking and Energy Saving Tool for Cement (BEST-Cement). This benchmarking exercise indicated an average technical potential primary energy savings of 12% would be possible if the surveyed plants operated at domestic best practice levels in terms of energy use per ton of cement produced. Average technical potential primary energy savings of 23% would be realized if the plants operated at international best practice levels. Energy conservation supply curves for both fuel and electricity savings were then constructed for the 16 surveyed plants. Using the bottom-up electricity conservation supply curve model, the cost-effective electricity efficiency potential for the studied cement plants in 2008 is estimated to be 373 gigawatt-hours (GWh), which accounts for 16% of total electricity use in the 16 surveyed cement plants in 2008. Total technical electricity-saving potential is 915 GWh, which accounts for 40% of total electricity use in the studied plants in 2008. The fuel conservation supply curve model shows the total technical fuel efficiency potential equal to 7,949 terajoules (TJ), accounting for 8% of total fuel used in the studied cement plants in 2008. All the fuel efficiency potential is shown to be cost effective. Carbon dioxide (CO₂) emission reduction potential associated with cost-effective electricity saving is 383 kiloton (kt) CO₂, while total technical potential for CO₂ emission reduction from electricity-saving is 940 ktCO₂. The CO₂ emission reduction potentials associated with fuel-saving potentials is 950 ktCO₂.