The potential for improvements in energy efficiency and CO<subscript>2</subscript> emissions in the EU27 cement industry and the relationship with the capital budgeting decision criteria

Abstract: This paper performs a cost-effectiveness analysis of some of the best available technologies (BAT) that can contribute to decreasing the energy consumption and CO2 emissions in the European Union’s (EU27) cement industry. Several capital budgeting decision criteria have been used (the payback period, the net present value and the internal rate of return) to study whether or not an investment should be considered worthwhile. The results show that, independent of the capital budgeting decision criteria used, the number of cost-effective retrofitting possibilities available is large compared to the rate of improvements that the industry undertakes annually. This shows the insensitivity of the industry to financial criteria when it comes to making their investment decisions. The possible thermal energy improvement in the clinker production, if all these BATs were implemented, has been quantified to be around 10%. This achievement would place the cement industry in the upper bound of the benchmark range for clinker manufacture. However considering the delays observed nowadays in terms of diffusion of BATs in the cement industry, it requires a conducive policy environment that combines support for both technology development and to their deployment. [Copyright &y& Elsevier]