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VOLUNTARY MERCURY CELL PHASE OUT PROGRAMME OF INDIA

Dr.Y.R.SINGHExecutive Director

ALKALI MANUFACTURERS’ ASSOCIATION OF INDIA

MERCURY TECHNICAL BRIEFING

STOCKHOLM, SWEDEN, JUNE 6 2010

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CONTENTS

Overview of Chlor-Alkali Industry

Mercury emissions, imports and consumption from the Chlor-Alkali sector

Reasons and Motivation for Conversion

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AMAI-ORGANIZATION

Alkali Manufacturers’ Association of India was established in 1960.

An Apex Body representing 43 Caustic Soda and Soda Ash plants.

Affiliated with CII, FICCI and ICC and globally with World Chlorine Council, The Chlorine Institute, USA and Euro Chlor representing European Chlorine Industry.

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OVERVIEW OF GLOBAL CHLOR-ALKALI INDUSTRY

• Chlor-Alkali Industry uses electrolysis process with a mercury cathode for producing chlorine and caustic soda from brine.

• Over 100 facilities in many countries around the world remain on Mercury Process including 60 World Chlorine Council member facilities (2008 WCC).

• Recent estimates of mercury use are:– ~ 200 metric tons / year by WCC members (WCC 2008)– ~ 500 metric tons / year (global, UNEP 2005)

• Mercury air emissions are estimated to be ~40 metric tons / year (2005 UNEP)

Alternatives to the mercury-cell process exist. These plants are more energy efficient and have lower operating costs.

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OVERVIEW OF INDIAN CHLOR-ALKALI INDUSTRY

Total no. of Plants=37 No. of Membrane Cell plants=29 No. of plants on Mercury & Membrane both=3 No. of Mercury Cell plants=5 Total Caustic Soda Capacity=3.2 Million MTPA

Capacity based on Membrane Cell Technology=3.0 Million MTPA

Capacity based on Mercury Cell=0.2 Million MTPA

Only 7% of Indian Chlor Alkali Capacity is based on Mercury Cell, which will be Phased out by 2012, as per CREP Voluntary Commitment.

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TECHNOLOGY-WISE DISTRIBUTION OF INDIAN AND GLOBAL CHLOR-ALKALI INDUSTRY

Membrane, 56%

Mercury, 15%Diaphragm

, 29%

World wide Technology ShareTotal Capacity:-80 million MTPA

Membrane, 93%

Mercury, 7%

Technology Share in IndiaTotal Capacity: 3.2 million MTPA

• India is next only to Japan in adopting state- of- the -art Membrane Cell Technology• One more plant has planned to convert by 2010 & Two more by 2011.

Source :-World Data(2010):- Tecnon Orbichem Indian Data(2010):-Domestic Industry

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INDIA VIS-A-VIS-GLOBAL CHLOR-ALKALI INDUSTRY

GLOBAL CHLOR-ALKALI INDUSTRY( $ 48 BILLION)

INDIAN CHLOR-ALKALI INDUSTRY($ 1.9 BILLION)

4% OF WORLD

CAPACITY

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INTRODUCTION OF CREP IN INDIA IN 2003 CHARTER ON CORPORATE RESPONSIBILITY FOR ENVIRONMENTAL PROTECTION

Charter was signed by Industry as a Voluntary commitment & initiative for Responsible Care of The Environment to help build a partnership for pollution control with Government of India & Regulatory bodies.

Came into Force: 13th March 2003.

Addressed to: 17 categories of Polluting Industries as well as Regulatory Agencies.

For Chlor-Alkali:- An instrument to regulate the industry for mercury emissions to the Environment. Thirteen point, time bound Action Plan to phase out Mercury Cell Technology, was given.

CREP – A Good Cause: To improve Environmental Management Systems, Compliance of standards in a Time Bound manner.

CREP – TASK FORCE: Continuous monitoring & rigorous follow up by the Task Force through regular Meetings with Industry, visits to all mercury cell units. proactive approach & positive attitude of Industry, could mark success and achieve the targets.

CREP Voluntary Commitment: Mercury Cell will be Phased out by 2012.

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INDIAN CHLOR-ALKALI INDUSTRY BASED ON MERCURY CELL DURING LAST EIGHT YEARS

Years No. of Plants

Mercury emission to environment wt.Avg.(g/T)

Mercury Consumption wt.Avg.(g/T)

2001-02 19 28.15 110.502002-03 17 18.7 100.342003-04 17 Around 20.00 66.202004-05 16 7.84 49.942005-06 13 1.32 38.352006-07 11 1.123 38.962007-08 10 1.223 38.182008-09 ( 31-03-09)

7 1.2337.33

CREPINTRODUCED

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INDIAN CHLOR-ALKALI INDUSTRY BASED ON MERCURY CELL

260

30.68

531.2

46.9

197.5

33.58

173.9

1

20.59

155.4

3

9.54

220.4

2

8.66

120.0

6

7.15

114.2

2.62

0

100

200

300

400

500

600

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Mercury imports in India Mercury imports by Chlor-Alkali

TOTAL MERCURY IMPORTS IN INDIA VS IMPORTS BY CHLOR-ALKALI

MTPA

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• Total mercury recovered by Chlor-Alkali units in India from March 2003 till 31-3-09 347 MT.

• Mercury recovered from Converted units, was utilized in the non-converted running plants, thereby reducing their mercury purchases and imports.

MERCURY RECOVERED AND DISPOSED OFBY CHLOR-ALKALI INDUSTRY

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INVESTMENT MADE BY INDUSTRY FOR CREPPROGRAMME & CONVERSION

TOTAL INVESTMENT MADE BY CHLOR-ALKALI INDUSTRY TO DATE FORIMPLEMENTING CREP PROGRAMME & SWITCHING OVER TO

STATE-OF-THE ART MEMBRANE CELL TECHNOLOGY IS

US $ 350 Million (approx.)

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REASONS AND MOTIVATION FOR CONVERSION

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High Energy Demands• When a plant is converted by utilizing old Rectifier/Transformer,

capacity expansion is 1.2-1.5 times as DC Power consumption is lower for Membrane cell, by 800-1000 KWH/MT of Caustic.*

• Power cost being very high i.e. Rs. 4.75 /- per KWH (Avg.), energy saving is one of the major reasons to go for conversion to reduce cost of production & to be competitive in market.

Quality of Product• One more important reason for Conversion to Membrane cell is demand for

better quality product (pure) as compared to Mercury cell product.

* Additional Energy Consumed for Evaporating 33% Caustic from Membrane cell to 48% concentrated Caustic (equivalent to Mercury cell Product) is 400KWH/MT. Thus net Energy saving will be 400-600 KWH/MT

GLOBAL REASONS AND MOTIVATIONFOR CONVERSION

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In case of India:• Pro-Active Role of Industry in finalising the program for

Conversion from Mercury to Membrane Cell, to complete the phase out by 2012.

• Awareness about Environmental Regulations and impact of Mercury on Health and Environment.

• Caustic Soda Demand Growth @ 4.8% from 31-03-2003 till 31-03-2009 in country, Mercury cell units planned to convert & expand their capacity.

• Good market prices helped the process till third quarter of 2009.

NOTE: Since 1986- No new Mercury Cell plant has been commissioned

REASONS AND MOTIVATION FOR CONVERSION

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ACHIEVEMENT OF INDIAN MERCURY CELL BASED CHLOR-ALKALI INDUSTRY

CONTENT ACHEVIEMENT OF INDIAN INDUSTRY

Present Share of Mercury Technology

7%

Mercury Cell Capacity Reduction

72% in last 10 years

Reduction in Mercury Emissions

96% in last 7 years

Phase Out By 2012 as per CREP Voluntary Commitment

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• Mercury cell chlor alkali industry is on the decline in India, consistent with global trends.

• It is not viable to build new mercury cell chlor alkali facilities :– Energy costs and quality of product are both motivating for

conversion.– No new facilities allowed in India since 1986.

• Conversion will take place by 2012 in India, facilitated by voluntary CREP agreement with Industry.

Final Remarks

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