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Gas suppliers have to fight a dirty battle in India's industrial alleys to win the war
Apr 25: No other industrial cluster illustrates the clash in the economics of use of coal and gas than in India's largest ceramic hub in Gujarat that covers Thangadh, Morbi and Wankenar.
8The entire hub used highly polluting coal based gasifiers for this energy intensive industry. Energy cost makes up 30% of the manufacturing cost
8Companies were forced to switch to gas after a crackdown by the pollution control authorities
8The switch to gas however slowed down after new norms for coal-based gasifiers were introduced that involved investments in process improvements in the coal gasifiers oxidation chamber and in tar catchers to take care of the tar
8But recently after coal prices started going up, gas usage has revived in this segment
8The ebb and flow of gas demand in the ceramic market in Gujarat is an indicator of similar pitched battles that gas suppliers will have to fight in every industrial cluster in India
8The high price of RLNG is a deterrent as furnace owners around the country, as they have a choice of a variety of competitive offerings from suppliers of not just FO and petcoke but also rice husk and brickets.
8In the absence of regulations, consumers are driven only by economics and switch pretty quickly from one fuel to another.
8The recent move to debar the use of fuel oil and petcoke in the national capital region is on account of a strong need to clean up the polluting air in Delhi
8Clearly, the government has to play a strong role to ensure the weaning away of Indian industry from dirty fuels for gas to play a greater role.
Click on Reports to find out more on what is going in in the ceramic market in Gujarat


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