Good afternoon every one, and thank you Keith for your introduction. Today, I'll try to give the audience as mentioned a quick brief on Waste Heat Recovery operation process, which we've just a few years ago established in our Pukrang plant here, and its benefits which is practically just collecting the gas that we're throwing out of our chimneys. So, if anyone of you have not done yet this investment in your facility, I'd recommend to pay great attention, it will be great value for you. But before doing that, I'd like to present some few slides on our Asia cement company here in Thailand and our parent company Italcementi. Italcementi is a very old Italian company established in 1864. In 1925, it was the first cement company listed in the Italian Stock Exchange. In 1992, with the acquisition of the French Cement giant at that time of Lafarge Cement France, became the world's fifth larger cement producer.
Today, between the integrated plants, grinding centers, and terminus Italcementi is presented in over 22 countries, with a consolidated cement production capacities of about 60 million ton cement, and they're employing 18,000 direct employees in all these facilities. 2014 sales were exceeding 4 billion Euros. 2014 was particular year for Italcementi being the 115th Anniversary of a successful business strategy implemented by this family driven company at the 5th generation.
As you will see through the map, the yellow colors are presenting where we operate throughout the world. Now we're geographically diversified towards a series of acquisitions and further investments in emerging countries like you see the Bulgaria, Morocco, Kazakhstan, Thailand, India, Egypt, Middle East, as well as operations in North Africa. Coming into our operations in Thailand, Italcementi is operating in Thailand since 1998 where we first entered through the acqusition Jalaprathan Cement Company. Jalaprathan is the [xx] Thai people will understand easier I guess, which was established in 1956 by The Royal Irrigation Department for the construction of the Bhumibol Dam, the first multi-purpose concrete dam in Thailand.
JCC has its two plants in Takli and Cham-am with annual cement production capacity of 2.3 million tons. Right after the acquisition of Jalaprathan, shorter than a year, the group increased its presence in Thailand becoming a share holder of Asia Cement Company founded in 1989, and operating in the domestic market with the cement plant in Pukrang, which has an annual cement production capacity of 5 million tons.
You'll see in the short map here, the location of the factories, Pukrang being the biggest factory that we own in Thailand, just one hour and fifteen minutes distance to North of Bangkok. Another one further ahead Takli plant and the one in the South, Cham-am plant, consolidating three factories in Thailand.
ACC nad JCC together makes the fourth cement producer of Thailand with annual cement production capacity of 7.3 million tons, controlling three cement plants as I had mentioned earlier, with the presence in Thai cement market for over 60 years for Jalaprathan and 20 years for Asia Cement. In 2014, our annual sales for both companies, domestic and export, exceeded 11 billion Thai Baht which is almost around 300 million Euros.
I will spend a few words on the sustainability issue. Being a member of the World Business Council for Sustainable Development, in 2010 a new organization of the principles of Italcementi group commitment has been presented as a mother policy dedicated to sustainability, and seven other policies focusing on, as you see them separately here namely safety, human rights, environment, social initiatives, health, quality, and energy.
These policies are the main guidelines that all the employees of Asia Cement and Jalapathran Cement follow in our everyday activities, and that is how the Waste Heat Recovery System was brought into life at Pukrang plant inlined with our energy policy, which promotes the actions to provide fast and effective responses to climate change, as in the case of Waste Heat recovery project, moving towards renewable resources of electricity.
Now, after this quick introduction on our Italcementi and the Asia Cement, I would like to present you a short movie on our Waste Heat Recovery System, then we will go into some process details to better understand how the whole system works. The movie will take about five minutes, I hope you all enjoy it.
[Thai Language] [Thai Language] I hope the subtitles were clear enough, it will make my work easier for the remaining part of the presentation. Okay, now, I would like to give you some details about this project, starting from the construction phase, some more hints on the process configurations that you have seen some part of it in the presentation, and finally the benefits that we're enjoying since the commissioning in June 2013.
Here are some highlights of this, 21.1 Megawatt, Waste Heat recovery project that we're talking about, it cost us about $35 million, all in all, the total cost of the project. It lasted for 18 months starting form the day we push the button for the investment, the supplier was the well-known Anhui Conch Kawasaki, who has also different experiences in Thailand, and the local company was used for construction so called R.K. Union,
again, was experienced in this field in Thai market. You'll see also the quantities of the building materials used for this project which are quite significant, especially the number of piles that were done before laying the foundation. Before showing you some photos from the construction phase of the project, I would like to describe you the each single equipment of this system so that you could follow me easier in the next slides. Here mainly, the project is recovering the waste gases thrown from the pre-heater and cooler of the two clinker production lines, 5,500 tons and 7,500 tons design capacity of two clinker kilns, throughout the six boilers installed at the exit of the pre-heaters and the cooler, generating steam through these boilers and sending to the so called TG Building, the Turbine Generator Building where we produce the power with almost zero cost we can say.
So, the construction phase, you see this is the area just next to the kiln number one in our plant, where we make also a Buddhist Ceremony for the sanctification of the project, and the two areass that you see at the bottom right, this will be the future turbine generator building at the bottom and the one next to the cooler AB will be the cooling air conditioning tower. Here you see the construction phase of the turbine building and on the bottom when it was finished, almost two years ago. The Cooling Tower where the huge amount of water is consumed for the condensation process, it's about 4,000 meter cubes per day. The boilers, we have two types
of boilers, we call them pre-heater boilers and AQC. AQC are those that are installed at the exit of the clinker coolers. Those are the pre-heater boilers that we put at the exit gases for the pre-heater and calciner strings for both kilns, and finally, where the steam is collected at the turbine, and electricity generator. Here you see the 21.2 Mega Watts of power production achieved on the commissioning process in 2013 June, where the machine was rated for 21.1 Gross Electric Mega Watts. Going into the process configuration, you see the total recoverable energy in this plant, Pukrang plant, from both kilns was about 105 thermal Mega Watts which will then generate the electrical power.
The hot gases coming out of the pre-heater towers and cooler at the temperatures of 340 degrees at the pre-heaters, and at the cooler is 360, goes into these six boilers, and go into the turbine to create the electricity. The steam generator through the boilers, is about 323 degrees Celsius at eight bar and 126 tons per hour of steam circulating in this closed system.
Explaining a bit more in details the equipment, especially these boilers, as I said, we have two types of boilers. The system recovers the waste heat from these two kilns, using the Steam Rankine Cycle, utilizing the demineralized water as a working fluid, and involves generating steam in two different types of Waste Heat Recovery Boilers. First one is this horizontal type, these two boilers are connected in parallel to the suspension pre-heater downcomer of each kiln, and next one will be the vertical type which is connected to the clinker coolers of each kiln, AQC boilers namely.
In the boilers, the water is vaporized into pressurized steam by the hot exhaust gases from the process. The system is designed to produce, as I said earlier, 126 tons per hour of steam from the six boilers at the pressure of eight bars, and the temperature 323 degrees Celcius. The steam expands into the steam turbine of the multi-stage condensing into single cylinder.
The system is also equipped with a low pressure flusher producing saturated steam at 1.3 bars entering the secondary steam turbine. Here in the condenser unit, the steam then expands up to the condensation pressure of 0.1 bar into the water cooled surface condenser, in which circulating water form the cooling towers condenses the turbine exhausted steam,
then the condensate is transferred by a water feeding pump to the Waste Heat Recoverable Boilers again, where the cycle repeating itself, that's why I called it the closed cycle. The water consumption where it appears, is at the cooling tower, 4,200 meter cube per day of water consumed. This system needs huge amount of water supply, so evidently, it's not applicable in all the countries, especially in the Middle East area let's say, but there are other solutions, other types of systems, so it's always feasible. Water treatment is a very particular and important issue for the efficient running of the system. This water treatment system is designed to provide the required feed-water from two main sources, ground water, through the three deep wells we have, and the surface water where we have a open pit basin just next to our factory.
The water treatment system can be adapted to 100% to any of these two resources. Water is treated by a mechanical filtration and chemical additives for the cooling water, and for the demineralizing water, Reverse Osmosis and Electrodeionization ystem. Okay, we're going to accelerate though. So then, we have the synchronous electrical generator converting the rotating mechanical energy of the steam turbine in 221.1 Mega Watts Gross Electric Power or in net 19.4. We can say 8% of self-consumption rate for this whole system.
In short economics, the benefits of this project is so amazing, with a very fast return as you see $35 million dollars of investment in return three years is a very good business deal we can say. As most of you know at least in Thailand, the electric cost for total cement production cost is about 35% of the total cost and this system can generate 25% of the electricity used in the factory. So, it reduce significantly the purchased power consumption, mitigates the future risks for the electricity price increase which was heavily happening in the last two years, this year we are a bit lucky, we have seen decrease in electricity costs, enhancing plant power reliability, improving the competitiveness of the plant in the very highly competitive Thai market, and green energy, improving public health and environmental quality. In the world, if you are curious how many of these systems are installed is over 800 installations as end of 2013 according to a statistics, most of it was in China as you see, and 12 systems in Thailand. So, most of the big kilns at least in Thailand are already equipped with this Waste Heat Recovery System. Now, coming to the end of my presentation, I would like to highlight once again that Asia Cement and Jalaprathan Cement with a high level of commitment to sustainable development continues to be an efficiently operating cement manufacturer to provide high quality products utilizing also a 150 years of expertise of Italcementi in the cement manufacturing business. Thanks again for your kind
attention and I will be available for any eventual questions.