Displaying items by tag: UK
UK: Karbonite UK has developed a new supplementary cementitious material consisting of mineral feedstock, geopolymers and waste biomass. The process also involves CO2 sequestration and liquid-infused CO2 absorption within the mineral structure. The material, called Karbonite, is activated at 750 – 850°C, releasing water, which is captured for recycling. Its CO2 emissions are 2.7kg/t, according to Karbonite UK. The developer says that Karbonite ground with 50% clinker yields a cement of equal compressive strength to ordinary Portland cement (OPC).
Karbonite UK is currently preparing a final report on the product for a major cement producer.
Managing director Rajeev Sood said “Karbonite offers a wealth of potential to an industry targeting net zero. We are excited to talk to cement and concrete producers about how they could integrate Karbonite technology into their existing process.”
World Economic Forum and GCCA report identifies the countries that are prioritising green public procurement
24 June 2022UK: The World Economic Forum and the Global Cement and Concrete Association (GCCA), in collaboration with Boston Consulting Group (BCG), have released a Mission Possible Partnership Report which identifies the nations that are prioritising green public procurement. These are the Netherlands, Sweden, Germany, France, the UK, and select US states. The report titled ‘Low-Carbon Concrete and Construction - A Review of Green Public Procurement Programmes’ identifies a framework for how these six countries are demonstrating leadership in green public procurement of concrete and construction.
The first component of the framework is the foundation, which includes establishing standards for reporting emissions, databases and tools for tracking emissions and establishes baselines. The second part of the framework, procurement polices, builds upon and reinforces the foundation by setting policies that require environmental disclosures, mandate carbon limits, and incentivise low-carbon design, and use of low-carbon materials.
Approximately 7% of global carbon emissions come from cement, and about half of the cement used globally is procured by the public sector. Governments also spend US$11tn/yr on procurement, about 12% of global gross domestic product (GDP) and regulate the construction industry via building codes. Therefore, governments play a critical role in driving demand to decarbonise the concrete and construction sector to achieve net zero goals.
Matt Rogers, the chief executive officer of the Mission Possible Project said “The demand signals in the market for green industrial products are among the most important opportunities to accelerate the path to net zero across industrial sectors. For material sectors like cement and concrete, government procurement practices will play an especially important role. This report summarises the current best practices in government procurement for green cement across multiple markets. Insights like these provide the government procurement professionals practical tools and technical insights that they can use today to create demand-pull for the most innovative low carbon cement and concrete offerings in the market.”
Global Cement Magazine all set for Hillhead 2022
20 June 2022UK: Global Cement Magazine is ready for the Hillhead 2022 quarrying, construction and recycling show that takes place on 21 – 23 June 2022 taking place in Derbyshire. You can find Global Cement Magazine at stand PB14 in the Main Pavilion. The event was originally planned to take place in June 2021 but was postponed for one year following the UK coronavirus-related lockdowns. Held in a limestone quarry, the organisers say that it is the largest exhibition of its kind anywhere in the world.
UK: The UK Department for Business, Energy and Industrial Strategy (BEIS) has granted Carbon Clean Euro701,000 under its Carbon Capture, Utilisation and Storage (CCUS) Innovation 2.0 programme. Carbon Clean says that it will partner with energy engineering company Doosan Babcock and Newcastle University to develop carbon capture systems which apply non-aqueous solvent (NAS) and rotating packed bed (RPB) technology together for the first time. The partners seek to overcome the challenges of scale and cost in order to advance the widespread deployment of CCUS systems.
The CCUS Innovation 2.0 programme is part of the UK government’s Euro1.17bn Net Zero Innovation Portfolio scheme.
UK: Hanson plans to install a C-Capture solvent-based carbon capture system at its Ketton cement plant in Rutland. The producer says that the technology reduces energy requirements per tonne of CO2 by 40% compared to other capture systems.
Chief executive officer Simon Wills said “Carbon capture is a critical part of our strategy to decarbonise cement production, and essential if we are to reach net zero carbon by 2050. If successful, the C-Capture process has the potential to be rolled-out across other sites across the HeidelbergCement Group.”
Mannok secures injunction against Seán Quinn
26 May 2022Ireland/UK: An Irish high court has granted Mannok an injunction to prevent former Quinn Industrial Holdings CEO Seán Quinn from trespassing on the site of its Derrylin cement plant and quarry in Cavan and County Fermanagh, Northern Ireland, UK. The Irish Examiner newspaper has reported that the company cited safety concerns over Quinn's presence near industrial equipment and a sheer quarry drop. His media statement in 2021 that he would 'do anything' to remove its directors compounded Mannok's 'sense of unease.'
Admixture markets in the US
25 May 2022More mergers and acquisition news emerged this week in the shape of potential buyers for Sika’s US admixtures business. Reporting from Bloomberg revealed that Holcim, HeidelbergCement and Turkey-based Sabancı Holding had all made it, amongst other unnamed companies, to a second round of bidding for the assets. Sika then confirmed this to the Finanz und Wirtschaft newspaper and added that the sale would also relate to Canadian assets as well. The intention here is to bypass the risk of a lengthy competition investigation in the US.
Switzerland-based Sika announced in November 2021 that it had signed a deal to buy MBCC Group from Lone Star Funds, a global private equity firm, for Euro5.2bn. At the time of the announcement Sika said that the transaction was subject to regulatory approval but it added that it was ‘confident’ that all required clearances would be obtained with closure planned for the second half of 2022. Known competition probes are now pending in the UK, Australia and New Zealand. A previous piece from Bloomberg suggested that internal analysis by Sika found that the company might need to divest operations with annual sales of around US$160m with a value of US$400m. However, the latest update suggests a value of up to US$1bn. The US represented US$1.71bn or 18% of Sika’s total group sales in 2021. Sika’s information to shareholders to let them know about the MBCC acquisition in November 2021, showed that MBCC had sales of around US$966m in the Americas in 2021 with 36 production plants. Overall, not just in the US, the deal is expected to change Sika’s technology mix from 40% concrete and cement systems to 49%, with most of the additions coming from concrete applications.
Divestments were always likely in an acquisition this large between competitors with shared geographies. What is interesting here to the cement sector is that the three named interested parties are all cement producers. Holcim is perhaps the least surprising given its size, pivot towards light building materials and the fact that its current head, Jan Jenisch, used to run Sika. If anyone knows how much an admixture company is worth, it’s the guy who ran one five years ago! HeidelbergCement does not have such a large light building materials business footprint but it is demonstrably interested in making heavy building material production more sustainable. Also, as the world’s second largest western multinational cement producer it is likely to be interested in an input market for some of its end products. Sabancı Holding is the outlier in this grouping with a more regional grey cement business based in Turkey, an international white cement business and a diverse set of business interests including finance and energy. Although, even as the smallest of the bunch, it still reported sales revenue of over US$9bn in 2021. One notable absence from the potential contenders list for Sika USA is Cemex. Its Urbanisation Solutions division, which produces admixtures among other products, reported sales of US$1.9bn in 2021 or 13% of the group’s total revenue. US$558m of this was made in the US.
The wider context in the North American admixture market is that the announcement of Sika’s deal with MBCC in November 2021 was followed about a month later when Saint-Gobain said it had entered into a deal to buy GCP Applied Technologies. This followed Saint-Gobain’s acquisition of Chryso in October 2021. However, Saint-Gobain said that the GCP deal would strengthen its position more in North America. Readers can find out more about Saint-Gobain’s ambitions here.
The final word at this stage should go on Lone Star Funds, the current owner of MBCC. Lone Star Funds bought the construction chemicals business from BASF for Euro3.17bn in September 2020. At the time the acquisition closed Saori Dubourg, a member of the board of executive directors of BASF, said “Lone Star has been a professional partner in this transaction and is committed to the future success of the business.” If the reporting is correct, Lone Star Funds is now selling the same business for over Euro5bn. There are two takeaways to consider at this point. One is that the perceived value of products that make cement and concrete more sustainable are growing. The other is that Lone Star Funds timed its acquisition of MBCC from BASF very well.
UK: The South Downs National Park Authority has published its Area Action Plan for the site of the former Shoreham cement plant in West Sussex. The plan will guide the development of the site into a new mixed-use development. The Sussex Express newspaper has reported that the authority will hold a public consultation from 7 June 2022 to 2 August 2022, at which it will set out detailed policies for planning applications. Their scope will include biodiversity and ecology, landscape and design, recreation and tourism, the economy and jobs, new homes, cultural heritage, transport and climate change.
UK: A team of researchers from six UK universities has filed a patent for a clinkerless cement product called Cambridge Electric Cement. Local press has reported that the project, called UK Fires, saw researchers successfully produce the cement using renewable power from recycled cement powder and ground granulated blast furnace slag (GGBFS). Following its successes, UK Fires has obtained a further Euro2m in funding from the UK Engineering and Physical Sciences Research Council (EPSRC) to continue its work into the range of concrete wastes suitable for use in Cambridge Electric Cement production.
Mannok’s sales rise in 2021
16 May 2022UK: Mannok recorded sales of Euro270m in 2021, up by 16% year-on-year from Euro233m in 2020. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 17% to Euro25.8m from Euro31.1m. The group attributed this to substantial cost absorption beginning in mid-2021. Energy prices rose by 66% year-on-year, while the cost of carbon emissions trading scheme (ETS) credits more than doubled to Euro80/t at the end of the year.
Mannok said that demand for its products remains resilient, supported by stronger cost recovery. It added that a levelling out in energy prices has driven stronger profitability in the first quarter and April of 2022.