TC May-Jun 2021 Issue

TRADE CHRONICLE
Lucky cement and Sinoma sign
agreement for renovation of WHRP
A Chronicle report
An agreement on a renovation project
of a waste heat recovery power plant
was signed between China Sinoma
Energy Conservation Limited (Sinoma
EC) and Lucky Cement last weekend.
The generating capacity of the two
power stations - Lines CD and 01
(former AB) of the Pezu Plant in Darra
Pezu, Khyber Pakhtunkhwa - utilising
waste heat is expected to increase by
about 4MW after the transformation.
The agreement
came after a
contract entered
between the
two sides on
a 7500t/d
supporting
power station
project with
waste heat of
cement in late
March this year,
according to
China Economic
Net (CEN) recently.
Sinoma EC, a patent-holding
company specialised in energy-saving
and emission-reduction, started
cooperation with Lucky Cement in
2008. Since then, it has undertaken
several projects, including the Pezu
Lines AB and CD waste heat recovery
power plant with a generating capacity
of 10 MW respectively, the 15 MW
Karachi Line EFG power plant with
waste heat, Karachi Line H waste heat
boiler extension, etc.
Waste thermal energy is one of the
largest sources of inexpensive and
Cherat Cement Co gets approval to set up
a greenfield cement plant in KPK
Cherat Cement Co.
Ltd (CHCC) informed
the Pakistan Stock
Exchange Limited
(PSX) that the Board
of Directors of the
Company, in its meeting held on June
24, 2021, has approved a greenfield
cement plant installation at D.I. Khan,
Khyber Pakhtunkhwa Province in
Pakistan.
clean energy available.
Waste heat power
generation, or Waste
Heat to Power (WHP), is
the process of recovering
waste heat and using it to generate
power with no combustion and no
emissions. In cement plants, heat
generated through rotary kiln preheater
(PH) and AQC exhaust hot gases
are used to generate steam in steam
generator (Boiler) which is further used
to generate electricity/power through
steam turbo generator (STG).
Recovery of waste heat helps reduce
energy costs
for industrial
processes. By
using the waste
heat to generate
emission-free
electricity,
industrial users
can put wasted
energy back
into the process
that created it,
route the power
somewhere
else in the facility, or sell it to the grid
to support clean energy production,
distribution and use. Moreover, such
practices are in conformity with the
initiative to build a green CPEC (China
Pakistan Economic Corridor).
Due to the upgraded epidemic control
protocols, Lucky Group appointed
Muzamil, head of the Pezu Waste Heat
Power Plant to complete the signing
ceremony in a simplistic way with
Chinese counterparts Wang Jianfeng,
Vice Director of Marketing Department
of Sinoma EC International Engineering
Branch, and Marketing Manager Liu
Geng.
According to
Azam Faruque,
Chief Executive of
the Company, the
plant will have an installed production
capacity of 11,000tpd of clinker. The
project’s total cost is estimated to
be approximately PKR 34 bn, with
completion of the project expected in 3
years.
In addition, the Board has approved the
acquisition of certain assets, including
immovable property and mining leases
in D.1. Knan from a company for a price
Bangladesh next fiscal
budget offers incentives for
the cement industry
Bangladesh National Budget for 2021-
2022 (July –June) presented by A H M
Mustafa Kamal, Minister of Finance,
in Parliament on 03 June. During his
speech, the minister had acknowledged
that cement, iron and iron products are
the critical components of infrastructural
development. Therefore, if tax incentive
is provided to these industries engaged
in producing these items, development
of physical infrastructure will be easy
and cost-effective. Therefore, in this
context, he proposes reducing the
tax rate on the import of raw material
related to cement production from 3
per cent to 2 per cent. Likewise, he
also offers to reduce the tax deduction
rate at source on supply of cement, iron
and iron products from 3 per cent to 2
per cent. He expressed hope that these
measures will help these industries
flourish and enable them to make a
positive contribution to the country’s
infrastructural development.
In addition, the finance minister cut
corporate tax rates by 2.5 percentage
points to 30 per cent for the listed
companies and 32.5 per cent for the
non-listed ones. As expected, the
mega projects, whose completion are
expected to raise Bangladesh’s GDP
by as much as 4 per cent, got about
48 per cent more allocation in the
upcoming fiscal year, as part of the
government’s push to ensure their
timely implementation. Seven of the
eight mega projects -- Padma bridge,
Dhaka mass rapid transit line-6 (Metro
Rail), Chattogram-Cox’s Bazar rail
link, Rooppur nuclear power plant,
Matarbari 1,200MW coal-fired power
plant and the Payra deep seaport -- will
get Bangladeshi Taka 370 bn in fiscal
2021-22, in contrast to Tk 254 bn this
fiscal year.
of PKR 1.3 bn.
An Analyst of Foundation Research
in welcoming note stated that CHCC
currently has an installed capacity of
4.5Mta at Lakrai, Nowshera. After the
commencement of the announced
capacity, the total capacity will be
increased to 8.0Mta. It is to remind
here that CHCC cement dispatches
increased by 12.9 per cent YoY in
9MFY21, and plant capacity utilization
remained at 88 per cent in 9MFY21
compared to 78 per cent in 9MFY20.
TRADE CHRONICLE - May - Jun - 2021 - Page # 23