UNLOCKING VALUE: Alternative Fuels For Egypt’s Cement Industry IN PARTNERSHIP WITH 25years UNLOCKING VALUE Alternative Fuels For Egypt’s Cement Industry DISCLAIMER © International Finance Corporation 2016. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 Internet: www.ifc.org The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such attributions and notices as we may reasonably require. 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Table of Contents LIST OF FIGURES ...................................................................................................................................... 4 LIST OF TABLES ......................................................................................................................................... 5 ABBREViatiONS ....................................................................................................................................... 6 ELEMENTS AND COMPOUNDS .................................................................................................................. 8 GLOssarY ................................................................................................................................................ 9 FOREWORD ........................................................................................................................................... 10 PREFACE ................................................................................................................................................. 11 EXECUTIVE SUMMARY ............................................................................................................................. 12 CHAPTER 1: INTRODUCTION .................................................................................................................... 23 1.1. Alternative Fuels as a Viable Option for Egypt’s Cement Industry .......................................................... 23 1.2. Approach and Methodology .............................................................................................................. 24 CHAPTER 2: A CHANGING ENERGY PICTURE .............................................................................................. 27 2.1 Egypt’s Energy Crisis .......................................................................................................................... 27 2.2 The Cost of Energy Subsidies .............................................................................................................. 28 2.3 Cement Producers and Rising Fuel Costs ............................................................................................. 28 2.4 Diversifying the Energy Mix ............................................................................................................... 29 2.5 Alternative Fuels: A Key Substitute for Coal ......................................................................................... 29 2.6 Other Market Drivers: Regulating Waste ............................................................................................ 30 CHAPTER 3: CO-PROcessiNG: MAKING THE MOST OF RESOUrces ........................................................33 3.1 International Trends .......................................................................................................................... 33 3.2 Co-Processing Technical Considerations ............................................................................................. 36 3.2.1 Municipal Solid Waste (MSW) .................................................................................................... 37 3.2.2 Agricultural Waste ................................................................................................................... 37 1 3.2.3 Dried Sewage Sludge (DSS)....................................................................................................... 38 3.2.4 Tire Derived Fuel (TDF) ............................................................................................................. 38 3.2.5 Other Technical Considerations ................................................................................................. 39 3.3 AFR Pre-Processing ............................................................................................................................39 CHAPTER 4: UNLOCKING THE AlterNatiVE FUELS SUPPLY ....................................................................... 41 4.1 Municipal Solid Waste (MSW) .............................................................................................................. 41 4.1.1 MSW Supply in Egypt ................................................................................................................ 41 4.1.2 Challenges in Using MSW for AFR .............................................................................................. 50 4.2 Agricultural Waste ............................................................................................................................ 50 4.2.1 Agricultural Waste Supply in Egypt ............................................................................................ 50 4.2.2 Challenges in Using Agricultural Waste as AFR ............................................................................54 4.3 Sewage Sludge ..................................................................................................................................55 4.3.1 Sewage Sludge Supply in Egypt ..................................................................................................55 4.3.2 Challenges in Using Sewage Sludge as AFR .................................................................................57 4.4 Tire Derived Fuel (TDF) .......................................................................................................................57 4.4.1 TDF Supply in Egypt ..................................................................................................................57 4.4.2 Challenges in Using TDF as AFR ................................................................................................. 60 4.5 Summary ......................................................................................................................................... 60 CHAPTER 5: MAPPING CEMENT INDUSTRY DEMAND ................................................................................. 63 5.1 Egypt’s Cement Industry .....................................................................................................................63 5.2 Cement Production Forecast by 2025 ...................................................................................................65 5.3 Thermal Energy Needs ....................................................................................................................... 66 5.4 Alternative Fuels Status in Egypt ........................................................................................................ 69 5.5 Future Scenarios for AFR Use in Egypt ................................................................................................ 70 5.5.1 Group 1 – AFR Early Movers ....................................................................................................... 70 5.5.2 Group 2 – Cement Plants Moving to Use AFR ..............................................................................