18 November 2008

FLSmidth intensifies focus on research and development

The cement and minerals industries have set ambitious targets for using alternative instead of fossil fuels over the coming years. And the suppliers are following suit - the necessary technology is increasingly becoming an integrated part of the production systems.

It is FLSmidth's declared goal to be the preferred partner and leading supplier to the global cement and minerals industry. This ambition is reflected, for example, in the company's active research and development effort. The aim of this effort is to launch at least one new main machinery or process invention or improvement every year.

”With the increasing focus on CO2, higher energy prices and ever tightening emission standards in international markets, we are continuously investing in developing solutions that will meet the challenges our customers are facing. The Group's research and development activities take place at the centres in Valby and Mariager, Denmark; Bethlehem, USA and Chennai, India; as well in the international product companies. The development activities are complemented by the acquisition of companies that possess new, developed technologies," Mr Jørgen Huno Rasmussen, the Group CEO, explains.

Since 2004, FLSmidth has also been investing in the expansion of its Dania R&D centre at Mariager, Denmark, which is the world's largest experimental ground for cement making technology. This is where the company tests new innovations on a major scale.

Alternative fuel solutions in great demand
The customers' stronger attention to sustainability and energy conservation fits in well with FLSmidth's overall strategy since for more than a decade the Group has been targeting its efforts at these aspects of cement production. These efforts include the options of using alternative fuels and recycling waste in various ways. The company develops and supplies complete solutions that enable cement and minerals producers to use up to 100 percent alternative fuel in the cement production process.

In addition to alternative fuels, FLSmidth is also working on systems to recuperate the waste heat from cement production which previous process optimisation efforts have not been able to recycle. This is a field particularly in focus in Asia.

Another focus area are the considerable emissions from cement plants. For example, the Group has signed an agreement with the Technical University of Denmark (DTU) and the Danish National Advanced Technology Foundation to make a joint effort towards developing ’the CO2 free plant’. The partners are examining alternative processes for cement production and increased use of alternative fuel which may reduce emissions.

Complete solution for cement plant in Finland

FLSmidth has recently signed a contract with a cement plant at Lappeenranta in Finland for a complete alternative fuel solution. The system will enable the cement producer to replace 50 per cent of the fuel for his entire cement kiln capacity with alternative fuel:

”The fuel mainly consists of used plastic, paper and wood packaging. The fuel is fed to the kiln by a fully automatic system that lowers the cement producer's risk of changing over to alternative fuels. Solutions enabling customers to use up to 100 per cent alternative fuel offer a major boon to the environment without impairing production quantity or quality,” Mr Jørgen Huno Rasmussen explains.

FLSmidth has just completed a project in Germany where the integrated use of alternative fuels in cement production has been optimised. The plant now uses 50 per cent alternative fuel, and the producer has seen improvements in both production capacity and environmental impact.

Competitive edge
In addition to protecting the environment and handling waste products, the use of alternative fuel also offers financial benefits:

”With the rising cost of energy and ever more stringent energy and environmental restrictions, alternative fuel technology is becoming an important factor in curbing costs. The largest cost item in conventional cement production is fuel. For example, a typical 1 million tonnes per year production line consumes about 100,000 tonnes of coal. At a price of 100 USD per tonne, this means 10 million USD per year. So there is a major financial incentive to reduce fuel costs," Mr Jørgen Huno Rasmussen says.

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