India’s cement industry could replace more coal with waste fuel, but adoption hurdles remain
India's Cement Industry Could Transform Waste Into Fuel
Theindiapostdaily.com – India's cement industry could significantly increase its reliance on waste-derived fuels, yet several adoption barriers persist. Fahim Sopariwala, chief executive of Green Gene Enviro Protection and Infrastructure Ltd (GGEPIL), highlighted these challenges at the Mint Sustainability Summit & Awards 2026. While the potential is substantial, inadequate processing infrastructure, limited plant-level acceptance, and uncertain pricing have constrained growth.
India generates approximately 70 million tonnes of municipal solid waste annually alongside 18.5 million tonnes of industrial hazardous waste. Additionally, around 3.5 million tonnes of industrial material currently requires landfilling. Traditional waste management depends heavily on landfills and incineration, but co-processing presents a viable alternative by utilizing pre-processed waste as fuel across power, cement, and steel facilities.
Thermal Substitution Rate: A Growing Opportunity
The thermal substitution rate (TSR)—representing the portion of fossil fuel replaced by alternative fuel—stays below 5% in India, according to Sopariwala. This contrasts sharply with global benchmarks reaching up to 90%. Nevertheless, select Indian cement plants have achieved TSR levels of approximately 40%. A typical cement plant consumes roughly 1,000 tonnes of coal or petcoke daily, but alternative fuel delivers only 3,000-4,000 kilocalories compared to conventional fuel's 8,000 kilocalories.
"As a result, plants need a larger quantity of alternative fuel to generate the same amount of heat. Even at a 50% substitution rate, each kiln could consume 300-400 tonnes of alternative fuel a day," Sopariwala explained.
Overcoming Infrastructure and Market Barriers
Unlocking this potential demands more than consistent waste supply. Waste streams vary in physical form and chemical composition, requiring sorting, drying, blending, and formulation into standardized fuel. Sopariwala noted that India's low thermal substitution rate stems from insufficient processing infrastructure, manufacturer reluctance, and unclear pricing benchmarks relative to coal and petcoke.
GGEPIL processes various hazardous waste types through shredding, drying, blending, and formulation. When operations began in 2013, pre-processing and co-processing lacked legal recognition. Co-processing received formal recognition in 2016, yet initial plant engagement proved challenging. "We had to actually go there, deploy our teams, feed the material into the cement manufacturing process, engage with them and train them," Sopariwala recalled. At one facility, daily supply expanded from 10-20 tonnes to 300-400 tonnes.
Economics subsequently became a primary adoption driver once plants achieved safe, consistent alternative fuel usage. Petcoke costs approximately ₹11,000 per tonne while coal runs about ₹8,000 per tonne. GGEPIL's alternative fuel prices between ₹4,000-₹4,500 per tonne. Since alternative fuel produces less heat, cost per kilocalorie offers a more meaningful comparison. On this basis, the company's fuel proves 30-40% cheaper than fossil fuels.
Scaling Operations Across Sectors
The group collaborates with roughly 10,000 industries spanning automobiles, pharmaceuticals, agrochemicals, engineering, textiles, and wind energy. It supplies approximately 1,000 tonnes of alternative fuel daily to cement plants. The Karad, Maharashtra, facility employs automated storage for hazardous waste and tests every incoming stream to verify physical and chemical properties before processing.
GGEPIL also partners with the Ahmedabad Municipal Corporation and other civic bodies to recover plastic from legacy dumps through biomining, converting it into refuse-derived fuel (RDF). Each plant produces about 400 tonnes of RDF daily. Over 13 years, GGEPIL reports saving 950,000 tonnes of fossil fuel and processing more than 1 million tonnes of industrial hazardous waste.
Frequently Asked Questions
What is the thermal substitution rate (TSR)?
TSR measures the percentage of fossil fuel replaced by alternative fuel in industrial processes. India currently maintains a TSR below 5%, while leading global operations achieve up to 90%.
How does alternative fuel compare to coal and petcoke economically?
While GGEPIL's alternative fuel costs ₹4,000-₹4,500 per tonne compared to petcoke at ₹11,000 and coal at ₹8,000, the real advantage emerges when calculating cost per kilocalorie, making alternative fuel 30-40% cheaper.
What challenges limit wider adoption of waste-derived fuel?
Key obstacles include inadequate processing infrastructure, limited plant-level acceptance, uncertain pricing benchmarks, and varying waste stream compositions requiring extensive pre-processing.
How much waste does India generate annually?
India produces approximately 70 million tonnes of municipal solid waste and 18.5 million tonnes of industrial hazardous waste each year, with 3.5 million tonnes of industrial material requiring landfilling.