Optimization of Cement Production Technological Processes and Introduction of Power and Resources Saving Technologies at CJSC MIKA-CEMENT

ACM0005 ver. 3. - Consolidated Baseline Methodology for Increasing the Blend in Cement Production

TRICORONA AB

The main objective of the project is optimization of cement production technology via introduction of energy and raw material saving measures at "Mika-Cement" CJSC. Optimization also means a better control of clinker and cement quality, which enables to increase blending additives in cement and reduce the share of clinker.

CO₂ emitted during the cement production process represents the most important source of non-energy industrial carbon dioxide emissions. Carbon dioxide is produced directly during the production of clinker, an intermediate product from which cement is made, as well as indirectly by the thermal power plants, due to electricity consumption for cement production.

"Mika-Cement" CJSC is one of the two cement producers in the Republic of Armenia. The plant is specialized in production of Portland cement and utilizes the most energy intensive wet process technology, main equipment of which was produced by former Soviet Union manufacturers before 1971, when due to cheapness of fossil fuels energy efficiency was not a priority. As a result, the energy consumption benchmarks of the plant are high, compared with the world's best practice with similar wet process technology. The most energy consuming processes at Mika Cement are associated with grinding of raw materials, clinker and additives, firing of clinker kilns and cement production.

Due to above reasons optimization of cement production technology and introduction of energy and raw material saving measures at Mika Cement has become a major concern and a top priority for the plant management.

Implementation of the following measures is planned in the frame of the proposed project activity:

• Introduction of a scoria-based technology in order to replace the clay component with the scoria (volcanic cinder) with partial replacement of internal equipment of the two raw material mills;
• Reconstruction of the kiln internal heat exchangers;
• Implementation of a rational fuel burning system;
• Reconstruction of two cement mills with complete replacement of internal equipment, grinding load and installation of a separator.

Emission reduction due to realization of planned measures is calculated to be 0.1947 ton CO2/ton cement. From this the share of GHG emission reduction from fuel saving will be 0.1821 ton CO2/ton cement and from electricity saving 0.0126 ton CO2/ton cement or 6.47% of the total specific reduction.

Annual GHG emission reductions depend on the annual cement production, which is planned to increase year by year. The implementation of the project activity will result in approximately 1,178 million tCO₂ emission reductions during ten-year fixed crediting period. However, the actual emission reductions will be evaluated based on measurement results (ex-post evaluation).

"Mika Cement" CJSC participates in the project as the project host. The plant is located in Hrazdan city, Republic of Armenia. It occupies a territory of 540 thousand m² and has designed annual output capacity of 1,2 million tons of cement.

The enterprise has more than a thirty-year history. It was put into operation as a structural subdivision of Hrazdan mining combine in 1970. In 1977 the enterprise was re-structured into the Hrazdan Cement Plant and became one of the main cement producers in the region. Its production not only was used locally but also was exported to Georgia and Azerbaijan. However, from 1992 until privatization in 2001, the plant operated unstable and cement output was fallen dramatically due to economic recession and transport blockade of Armenia.

After privatization and establishment of "Mika Cement" CJSC, the cement production volume has increased from 14,5 thousand ton in 2001 up to 240 thousand ton in 2004.

The following outcomes are expected in case of project materialization:

• Generation of permanent and temporary employment opportunities;
• Professional and intellectual capacity building;
• Reduction of harmful emissions;
• Sustainable and efficient cement production.

The relevant Project Idea Note (PIN) describing the project concept was submitted to the Designated National Authority for consideration on March 2, 2005 and was endorsed on June 17, 2005.

The Project Design Document was finalized on 5 October, 2006 and submitted for validation.

According to the project design document, CERs generated by the project activity was to be transferred to DEPA. However, in 2007 DEPA informed the plant management on its refusal to continue participation in the proposed project activity.

In December 2007, after a series of meetings and discussions, the plant management entered into agreement (Emission Reduction Purchase Agreement) with TRICORONA AB aimed at sale of CERs generated by the project during the first crediting period. Under the mentioned agreement TRICORONA AB will update the existing PDD and initiate its validation and national approval in 2008.

Submitted for validation to a DOE (Det Norske Veritas Certification AS) on October 9, 2006 (validation report is not available).