1. 1 VOLUNTARY MERCURY CELL PHASE OUT PROGRAMME OF INDIA Dr.Y.R.SINGH Executive Director ALKALI MANUFACTURERS’ ASSOCIATION OF INDIA MERCURY TECHNICAL BRIEFING STOCKHOLM, SWEDEN, JUNE 6 2010

2. 2 CONTENTS  Overview of Chlor-Alkali Industry  Mercury emissions, imports and consumption from the Chlor-Alkali sector  Reasons and Motivation for Conversion

3. 3 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.

4. 4 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.

5. 5 OVERVIEW OF INDIAN CHLOR-ALKALI INDUSTRY  T T otal no. of Plants=37 No. of Membrane Cell plants=29 No. of plants on Mercury & Membrane both=3 No. of Mercury Cell plants=5  T otal Caustic Soda Capacity=3.2 Million MTPA  C apacity based on Membrane Cell Technology=3.0 Million MTPA apacity 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.

6. 6 TECHNOLOGY-WISE DISTRIBUTION OF INDIAN AND GLOBAL CHLOR-ALKALI INDUSTRY World wide Technology Share Total Capacity:-80 million MTPA Technology Share in India Total 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

7. 7 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

8. 8 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: 13 th 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.

9. 9 INDIAN CHLOR-ALKALI INDUSTRY BASED ON MERCURY CELL DURING LAST EIGHT YEARS CREP INTRODUCED

10. 10 INDIAN CHLOR-ALKALI INDUSTRY BASED ON MERCURY CELL TOTAL MERCURY IMPORTS IN INDIA VS IMPORTS BY CHLOR-ALKALI MTPA

11. 11 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 OF BY CHLOR-ALKALI INDUSTRY

12. 12 INVESTMENT MADE BY INDUSTRY FOR CREP PROGRAMME & CONVERSION TOTAL INVESTMENT MADE BY CHLOR-ALKALI INDUSTRY TO DATE FOR IMPLEMENTING CREP PROGRAMME & SWITCHING OVER TO STATE-OF-THE ART MEMBRANE CELL TECHNOLOGY IS US $ 350 Million (approx.)

13. 13 REASONS AND MOTIVATION FOR CONVERSION

14. 14 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 MOTIVATION FOR CONVERSION

15. 15 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

16. 16 ACHIEVEMENT OF INDIAN MERCURY CELL BASED CHLOR-ALKALI INDUSTRY CONTENTACHEVIEMENT 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 OutBy 2012 as per CREP Voluntary Commitment

17. 17 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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