Procurement stratagies for Alternative Fuels

Abstract

Entering into an Alternative Fuels program can be a daunting task requiring the commitment of significant resources by the cement manufacturer. These resources will include both personnel within the company as well as external expertise that is brought in to assist in the process along with the financial resources required through the trials, as well as installing the necessary equipment to burn the fuel. Many different aspects must be considered: local and national regulations and laws, local community reactions to both the use and transportation of the material, health and safety aspects for employees, impact upon the process and product quality and financial investment. In terms of the supply of the fuel the cement producer must consider the nature of the alternative fuel, its source, the necessary collection infrastructure together with its processing and homogenisation prior to use. One of the key processes that must be put in place at the very start of the program is to identify the strategy for the procurement of the selected fuel or fuels. Generally there is a capital investment requirement related to the use of the alternative fuel so it is essential that a secure supply of the fuel can be obtained both for a trial purpose and the longer term use. Decisions need to be taken as to whether the cement producer will use an external company to source the fuels or set up their own company to provide the fuels, as has been seen at many locations around the world. Considerations such as how quality control can be managed and what are the pricing agreements with the suppliers need to be addressed. This process should not be a continuous process which is deemed to be completed once the fuel is implemented but a continual process seeking out different fuels for use within the process as the economics within the waste industry change and the availability of certain fuels decreases. Within this paper CPI will describe some of its experiences with using different alternative fuels, comparing developing alternative fuels markets with mature markets, outline strategies that have been successful with fuels suppliers and also describe how market trends and economics work in the alternative fuels markets to assist cement manufacturers to develop long term fuels strategies.