Nepal’s cement industry plays a vital role in building the nation’s infrastructure. While it has great potential, it also faces tough challenges. The sector has grown due to abundant limestone reserves and increasing construction projects. According to the Department of Geology and Mines, Nepal has 1.07 billion tonnes of high-quality limestone, with 420 million tons usable. By 2019, there were 65 cement factories in the country, capable of producing 13 million tonnes annually. However, actual production stood at 9.86 million tonnes. By 2028, the demand for cement is expected to reach 34.31 million tonnes, driven by Nepal’s goal to become a developing country by 2026 and large-scale infrastructure projects.
Fuel costs are one of the biggest challenges for the industry, as they make up a significant part of production expenses. In fiscal year 2079/80, Nepal imported 1.38 million tonnes of coal, which accounted for 30 per cent of the country’s total energy used by industries. Rising global coal prices have made it harder for factories to operate, causing some to close. Nepal’s Second Nationally Determined Contributions (NDC) warns that industrial emissions will grow significantly unless cleaner fuels and advanced technologies are adopted. The cement industry, being a major source of these emissions, is crucial for meeting the country’s climate goals.
Meanwhile, cities in Nepal are struggling with waste management. Non-recyclable and non-biodegradable waste are a serious problem, polluting landfills and nearby areas. For instance, the Kathmandu Valley produces about 1,760 tonnes of waste daily, including 74 tonnes of multi-layered plastics (MLP). This makes better waste management an urgent need. The NDC has set goals to make waste-to-energy solutions fully operational by 2050.
Refuse-Derived Fuel (RDF) offers a practical solution to these problems. RDF is made by processing non-recyclable waste like plastics and paper. Using RDF not only helps manage waste but also reduces the need for coal. With a calorific value of 4,500 to 7,500 KCal/kg, RDF is an effective alternative. Cement factories can replace up to 45 per cent of their thermal energy needs with RDF, though most achieve 5–10 per cent substitution. This aligns with Nepal’s long-term strategy for net-zero emissions, which encourages the use of proven technologies by 2050. Key actions include adopting green fuels like RDF, electrifying industrial processes, and using carbon capture technology. By 2030, industrial CO2 emissions could be reduced by 43 per cent, and by 2050, they could fall by up to 95 per cent.
Adopting RDF, however, comes with challenges. Most cement plants in Nepal lack the technology to process and burn RDF, which requires significant investment. Additionally, weak regulations and a lack of financial incentives discourage the shift to alternative fuels. While some plants use rice husk as a cheaper option, its calorific value of 3,200 KCal/kg is much lower than RDF’s. Nepal’s NDC emphasises the need for stronger emission standards to push industries towards cleaner technologies. Countries like India and Germany have already succeeded in integrating RDF into their cement industries, reducing coal consumption and cutting emissions. Nepal is also exploring this potential, with the Centre for Energy Studies (CES) at Tribhuvan University actively researching RDF as a co-firing fuel. These efforts support global goals for clean energy and climate action.
By integrating RDF, Nepal’s cement industry could tackle both energy and environmental challenges. Turning waste into fuel would reduce reliance on imports, cut production costs, and lower pollution levels. Achieving this, however, will require collaboration among policymakers, industry leaders, and communities. If implemented successfully, RDF could transform Nepal’s cement industry and set an example for sustainable practices in South Asia.