Arkan, a leading building material industrial conglomerate based in the UAE, has outlined a series of energy-saving initiatives to counter the impact of increase in energy prices starting from January 1.

These energy efficiency measures would be in addition to cost savings, as previously announced, achieved from the sourcing of core raw materials from closer locations to its plants, thus resulting in substantial savings in excess of Dh50 million ($13.6 million) on logistics from January 2017 onwards.

Abu Dhabi Distribution Company has announced a hike in the electricity supply prices from its previous average of 18.3 fils per KWH to 18.3 fils per KWH, while the water supply prices have risen from 4 to 7.84 per cu m.

In addition, Abu Dhabi National Oil Company (Adnoc) too notified Arkan of a 73.3 per cent increase in the price of natural gas.
 
Over the course of 2016, management continued driving operational efficiencies across all its business units with a special focus on energy efficiency measures, said the company in a statement.

Arkan pointed out that it had been able to put in place a number of programmes to mitigate against utility price rises including, the implementation of Waste Heat Recovery Technology that will help reduce power consumption from the grid at a lower rate.

Hot gases collected at the clinker cooler will be channelled to a turbine which are expected to produce enough electricity to cope with one quarter of its requirements.

The Emirati company said further to the efficiency measures, the management team had been working on a range of initiatives to identify cheaper energy sources and was currently running a feasibility study to build a coal-powered plant to supply electricity to its cement factory.

Coal could be considered to fire the kiln in the future. Biomass and other wastes are being sought to reduce gas needed to fire the kilns, it stated.

A temporary consolidation of the production and sales of the cement in one location, at the new Al Ain Cement Factory, previously produced and distributed from the two plants, was decided by its board of directors during a crucial meeting on December 28.

The savings in excess of Dh45 million ($12.2 million) are expected to be generated through this consolidation, said a top official.

"We have been working continuously to drive energy and raw material costs down across our business and have implemented a range of initiatives that will mitigate to a large extent the tariff increases we face," remarked its chairman Jamal Salem Al Dhaheri.

"These actions will maintain our product pricing for the benefit of our customers. In today’s extremely competitive market for clinker and cement products and other speciality building materials, our strategy will continue protecting our market share in our home market and drive growth in our export markets,' he added.-TradeArabia News Service