Displaying items by tag: Upgrade
Cemex announces raft of carbon capture projects
22 November 2022Mexico: Cemex has announced a raft of new carbon capture projects in Europe and North America. When commissioned, they will bring its total installed CO2 capture capacity to over 3Mt/yr. The projects consist of three front-end engineering (FEED) studies to scale installations of Australia-based Leilac’s direct separation technology at Cemex cement plants in Germany, Poland and the US; a fourth FEED study for 95% capture installation at the Balcones, Texas, cement plant using RTI International's solvent capture technology and a development partnership for the cement industry's most comprehensive carbon capture, utilisation and storage (CCUS) studies at eight further cement plants in Europe, Mexico and the US.
Chief executive officer Fernando González said “CCUS brings together the essence of our strategic priorities: sustainability and innovation. Our Future in Action programme to achieve sustainable excellence and become a net-zero company is all about measurable, verified progress towards the most ambitious decarbonisation pathway in the industry. Although CCUS technologies are not ready to be scaled quite yet, it will take relentless work and innovation to ensure their viability in time to avoid the most damaging effects of climate change.”
Cockburn Cement increases scope of Kwinana grinding plant project
21 November 2022Australia: Cockburn Cement has awarded US$1.65m-worth of increased work scope to construction company SIMPEC on an existing contract with the producer. Business News Australia has reported that SIMPEC is carrying out work on Cockburn Cement's Kwinana grinding plant upgrade. The cement company is in the process of consolidating its Western Australian cement production at an expanded 1.5Mt/yr facility at the site, at a cost of US$152m. A new US$35.1m clinker terminal at Kwinana Bulk Terminal will receive up to 40,000t/yr of clinker for use at the plant and in fellow cement producer BGC's local operations.
KIMA Process Control to supply kiln cooling system for Cementa's Slite cement plant
17 November 2022Sweden: Germany-based KIMA Process Control has secured a contract for the supply of a kiln shell cooling system for Cementa's Slite cement plant in Gotland. 88 water jets will deliver centimetre-precision cooling for the 55m-long kiln, while IR pyrometers measure temperatures over areas of 10cm2. According to KIMA Process Control, the equipment can avoid unnecessary cooling of the kiln shell, conserving the heat energy supplied by the main burner.
The new cooling system will eliminate the use of energy intensive electric fans, slashing 1700t/yr in CO2 emissions, according to the supplier. It said that noise emissions will also 'drastically' decline as a result of the upgrade. The system's operating costs are reportedly 98% less than those of the plant's existing fan system.
The supplier said that the new equipment will 'bring the cement plant in Slite an economic benefit in the shortest possible time.' It said "For the cement industry, this project represents a new milestone in terms of best available technology in the operation of rotary kilns."
Update on Bangladesh, November 2022
16 November 2022The Infrastructure Development Company in Bangladesh announced this week that it had agreed to loan Crown Cement US$25m to help it add a new mill to its cement grinding plant at Munshiganj, south of Dhaka. If completed it will be the plant’s sixth mill. Originally known as MI Cement the plant has a production capacity of 3.3Mt/yr and the most recent mill was added in 2017. The plan to add a sixth mill dates back to 2019 but was revised in 2021 with a total investment of US$90m. Securing a loan marks a significant step forward for the project.
The timing to expand a cement plant in Bangladesh is interesting given the problems facing the local cement sector. In August 2022 Mohammed Alamgir Kabir, the president of the Bangladesh Cement Manufacturers Association (BCMA), told the Daily Star newspaper that cement producers were facing both falling investment in infrastructure development and private projects. The local cement industry imports 90% of the raw materials it uses and most of the country’s cement plants grind cement use imported clinker. However, the aftermath of the coronavirus pandemic created supply chain problems leading to higher costs of raw materials, dearer transportation charges and started to push up global energy prices. This was then exacerbated by the Russian invasion of Ukraine in February 2022 and negative currency exchange effects as the Bangladeshi Taka fell in value against the US Dollar. In words echoing cement associations in other parts of the world, Kabir suggested that cement producers now faced the option of either continuing to raise prices or simply shutting down production.
The local cement production capacity utilisation rate appears to be around 56% based on data from a recent feature in the Financial Express newspaper. It placed total production capacity at 83Mt/yr from 37 active plants but demand at only 47Mt/yr. This is similar to the reported utilisation rate of 54% back in 2017 from a total production capacity of 50Mt/yr. Data from the Bangladesh Bureau of Statistics (BBS) suggests that cement production picked up in 2021 but then declined on a monthly year-to-date basis between December 2021 and February 2022. However, the BBS only reports production from a sample of plants. Masud Khan, the chief advisor to Crown Cement and its former chief executive officer, placed the cost of all that unused capacity at US$40/t or something like an investment of US$1.46bn for idle manufacturing potential. In his view, the larger local producers forecast an increase in demand around five to 10 years ago and invested accordingly to avoid losing market share. However, some smaller companies may also have done the same.
The local sector has likely been able to cope with a relatively low capacity utilisation rate previously because it was ‘grinding heavy.‘ How the current problems have shown themselves on cement company balance sheets has been mixed though. LafargeHolcim Bangladesh’s sales revenue and profit grew by 8% year-on-year to US$166m and 7% to US$32.2m in the nine months to September 2022. It was probably able to do this, in part, due to the fact that it operates one the few integrated plants in the country and it has direct access to limestone reserves across the border in India. By contrast, HeidelbergCement Bangladesh’s sales fell by 3% year-on-year to US$90.7m in the first six months of 2021 and it made a loss of around US$2m. Aramit Cement’s revenue fell by 60% year-on-year to US$6.09m in the nine months to March 2022 and it reported a loss. Premier Cement Mills increased its revenue by 5% to US$99m in the same period, although its net profit dropped by 91% to US$387,000. Crown Cement’s revenue rose by 16% to US$13m but its net profit fell by 81% to US$1.32m.
Geopolitics, high energy prices and local problems are all combining to make life difficult for cement producers in Bangladesh. As the market adjusts to the current situation the determining factor here is likely to be the cost of grinding cement to end users versus just importing cement directly. Current conditions do not seem to be stopping Crown Cement though nor LafargeHolcim Bangladesh. The latter, for example, launched a new blended cement product, Supercrete Plus, earlier in November 2022. One way out for the others might be explore exports and the BCMA suggested just that to the government over the summer, although this doesn’t seem like the most obvious solution for a country that imports so much of its raw materials.
TCRK announces carbon capture project with Asia Cement
16 November 2022South Korea: UK-based TCRK has announced a deal with Asia Cement to use its carbon capture and utilisation (CCU) technology at the cement producer’s plant in Jaechon. The project will see the first commercial deployment of TCRK’s CCUS technology from the first quarter of 2023. It will initially target 30,000t/yr of CO2 equivalent and then ramp up to 120,000t/yr of CO2 equivalent by mid-2024. The second target is intended to help Asia Cement reduce its emissions by 20% required to meet its 2025 decarbonisation plan.
TCRK’s approach will use two processes to utilise capture CO2 from cement production. Its Arago Cement Process uses captured CO2, cement kiln dust and by-pass particles to produce precipitated calcium carbonate, which TCRK uses to produce a product called Arago Cement. The captured CO2 will also be used to grow microalgae in a process called bio-fixation. This method will offer 10% extra carbon storage capacity. The microalgae has a wide range of potential end-products including bioplastics and animal feed, and can also be used as a source of bio-cement production.
Ramco Cements to build second line at Haridaspur grinding plant
11 November 2022India: Ramco Cements has approved plants to build a second production line at its Haridaspur grinding plant in Jajpur District, Odisha with a capacity of 0.9Mt/yr. Around US$16m has been earmarked for the project. Once commissioned the plant’s total capacity will be 1.8Mt/yr.
The cement producer’s revenue grew by 31% year-on-year to US$442m in the first half of its financial year to 30 September 2022. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 35% to US$61.9m. It blamed the loss in earnings on falling cement prices and mounting fuel costs. The company currently has cement and clinker production capacities of 21Mt/yr and 14Mt/yr respectively. It also reported that a 6MW waste heat recovery unit at its Kurnool plant in Andhra Pradesh will be commissioned in November 2022. An additional 6MW at the same plant is scheduled to start operation in March 2023.
Roanoke breaks ground on Chesapeake Terminal expansion
09 November 2022US: Roanoke Cement, part of Titan America, has held a ground-breaking ceremony for an expansion at its Chesapeake Terminal near Norfolk in Virginia. Council members, other state and local officials and Roanoke Cement team members gathered to launch the project, to build a new US$40m storage dome. In response to increasing demand for low carbon cement, the storage dome at the terminal will provide an additional 70,000t of capacity, tripling the site’s existing storage volume. The Chesapeake Terminal will see expanded truck and rail capacity as well, and the improved terminal will enable the import and distribution of other raw materials needed to produce concrete.
"This important capital improvement is another investment in anticipation of increased construction material demand for infrastructure development and other projects," said Kevin Baird, president of Titan America's Mid-Atlantic Business Unit, which includes Roanoke Cement. "Expanded storage and marine terminal upgrades permit us to make low carbon cement available for construction needs all over the region."
The company expects the expanded facility to be completed by the end of 2023, in time for the region’s 2024 construction season.
Germany/Australia: Calix subsidiary Leilac has concluded a licence agreement with Heidelberg Materials for use of its carbon capture technology. The cement producer holds the licence indefinitely and for all operations across the globe. It said that Leilac’s technology offers effective capture of unavoidable cement plant CO2 emissions with minimal operational impact.
Heidelberg Materials currently has one Leilac system installed at its Lixhe plant in Belgium. It expects to commence construction of a second unit at its Hanover plant in Germany in 2023. Together, the installations will be able to capture 125,000t/yr of CO2. The producer says that both projects pave the way for future full-scale deployment of Leilac’s carbon capture model.
Turkey: MEDCEM plans to expand its Silifke cement plant's clinker capacity by 90% to 6.5Mt/yr. Germany-based Aumund will supply the upgrade with 41 different machines. The package comprises six belt bucket elevators, two chain bucket elevators, four pan conveyors and 11 drag chain conveyors, with capacities up to 900t/hr. The order also includes 13 silo discharge gates for belt conveyors and five telescopic chutes for truck loading. The supplier will deliver the goods in October 2022, for scheduled commissioning in January 2023.
Udayapur Cement seeks US$3.82m government loan
24 October 2022Nepal: Udayapur Cement has urged the Nepalese government's Ministry of Finance to process its application for a loan of US$3.82m. The Kathmandu Post newspaper has reported that the producer plans to invest in an upgrade to its 800t/day-capacity Gaighat cement plant in Province No.1. The plant is reportedly unable to meet its capacity due to frequent issues with its 33-year-old equipment. The producer hopes that an upgrade will increase the plant's production capacity by 41% to 2.5m bags/yr. It also expects its expenditure on coal to fall by 25% as a result.
Director general Gopi Neupane noted the Gaighat cement plant's access to high quality limestone not available elsewhere in the country. He said "We will turn the factory into a profit-making enterprise if the additional investment is provided. We have huge scope for exporting cement to Uttar Pradesh and Bihar (in India)."