New Zealand
Neocrete collaborates with global cement producers to reduce concrete's carbon footprint 22 August 2024
New Zealand: Neocrete has entered a partnership with major cement manufacturers, including Cemex, Heidelberg Materials, CRH, Titan, Cementos Argos and Ultratech Cement to promote its new Activator product aimed at reducing the amount of cement required in concrete. The product uses volcanic ash or residual ash from industrial processes to cut the amount of cement required by 40% to 50%, according to the company. Neocrete aims to replace cement completely, resulting in carbon-free concrete, by 2027. The new product will be submitted for life cycle assessment once a new pilot plant in Mt Wellington is operational. The plant is valued at US$2m and will produce 0.12Mt/yr of cement, to meet 10% of New Zealand’s demand.
Co-founder Zarina Bazoeva said "We don't need to produce the whole volume of cement. We activate the concrete chemically with a small catalyst at 3kg compared to 100kg of cement. So, we can scale fast."
Golden Bay Cement carrier vessel returns to service 14 August 2024
New Zealand: Golden Bay Cement has resolved the breakdown of its Marine Vessel Aotearoa Chief (MVAC) earlier than anticipated, returning the vessel to service after necessary checks with marine authorities. The company made use of alternative transport options to distribute cement and sourced alternative cement supplies due to the disruption.
The earlier resolution has resulted in a reduced impact on earnings, estimated to be on the lower end of US$10m – 30m.
New Zealand: Fletcher Building says that a mechanical issue with a cement carrier ship is causing operational business for its Golden Bay Cement subsidiary. The Marine Vessel Aotearoa Chief (MVAC) ship is currently docked at Northport while inspections and repairs are made by the owner. The New Zealand Herald newspaper has reported that the ship is owned by China Navigation Company, an operating arm of the Hong Kong-based Swire. The ship normally transports cement around the North Island from Golden Bay’s cement plant near Whangārei. The cement producer added that “The timeframe required to make the necessary repairs and source replacement parts, is not known at this time.” Fletcher Building’s preliminary assessment is that it expects the impact on its 2025 financial year earnings to be up to US$18m.
Golden Bay has enacted its contingency plans to cope with the outage and is talking to its customers. It is using alternative transport options to distribute cement. including the use of an existing coastal barge and the greater use of road and rail options. The company is also investigating longer-term solutions, which include potentially sourcing the use of alternative cement supplies from domestic and offshore suppliers along with securing the use of a replacement ship if required.
New Zealand: Golden Bay, New Zealand's sole cement producer and a division of Fletcher Building, is advancing its sustainability goals at its Portland plant near Whangārei. The plant has been incorporating old tyres and treated timber in its production process since 2021, with the Ministry for Environment helping fund US$10m of the US$15.5m to upgrade the plant for the project. The plant uses tyres to replace 55-60% of the coal required, and plans to eliminate coal use by 2030. The facility has increased its use of recycled tyres from 15,000t to 30,000t/yr and is aiming for 40,000t/yr. The government’s Tyrewise programme supports tyre recycling, with the plant also investing in an on-site shredder. Upcoming projects include substituting coal with non-recyclable materials like old carpets and plastics, targeting a 30% reduction in emissions. Construction has already started on the project and it is expected to be completed by the end of 2024, according to the New Zealand Herald.
Manufacturing manager Kelly Stevens said, "We’re diverting 100,000t/yr of waste that would’ve gone to landfill.”
Global: The Global Cement and Concrete Association (GCCA) has announced new collaborations between global cement manufacturers and technology start-ups, focusing on the development of low carbon concrete. Four start-ups—EnviCore in Canada, Queens Carbon and Chement, both in the US and NeoCrete in New Zealand—were part of the 2023 GCCA Innovandi Open Challenge and have now partnered with cement manufacturers. These partnerships aim to reduce the carbon footprint of concrete.
The startups will receive access to industry plants, labs and networks to fast-track their technologies. They will also demonstrate their progress on 6th June 2024 in Bangkok, Thailand, during the GCCA's CEO and Leaders Conference. The association continues its efforts under the 2050 Net Zero Concrete Roadmap, with 29 new start-ups shortlisted this year to work on carbon capture, utilisation and storage (CCUS) technology.
Neocrete raises US$4m seed round for scaling and plant 26 March 2024
New Zealand: Neocrete, a New Zealand start-up that decarbonises concrete production, has raised US$4m in seed funding. Wavemaker Partners, a Singapore-based venture capital firm, led the funding round with a 15% stake for US$2.7m. The funding also included contributions from five other investors, including NZ Green Investment Finance, which acquired a 3.8% share for US$700,000. Neocrete, founded in 2018, has developed an additive that can reduce the cement in concrete by 30-50% without loss in strength, increasing its durability.
Wavemaker Partners' managing partner Paul Santos said "Neocrete is designed to scale rapidly by using a cost-efficient production process that can leverage existing infrastructure."
Zarina Bazoeva, Neocrete co-founder and CEO, said that the funding will enable the company "to scale to meet initial global demand for Neocrete’s additive”. The company plans to complete setting up an Auckland manufacturing facility and scale up a research and development programme, "which is on track to produce cement-free, zero-carbon concrete by 2027,” according to Bazoeva.
Etex to acquire BGC’s lightweight building materials businesses 12 October 2023
Australia/New Zealand: Belgium-based Etex has signed an agreement with building materials company BGC to acquire the latter’s gypsum and fibre cement businesses. The fibre cement business includes the Canning Vale fibre cement boards plant in Western Australia. BGC also operates nine warehouses across Australia and New Zealand. Etex says that the deal expands its activities in the ‘attractive’ local market, with significant growth opportunities. Finalisation is expected in early 2024.
Etex CEO Bernard Delvaux said “This deal is a strategic opportunity for Etex to complement our footprint in Australia and further increase the accessibility of our products and services for customers. This will both reinforce our gypsum wallboard offering and position us well in the growing fibre cement activities through a broad product range and good channel access.”
New Zealand: Fletcher Building says that its subsidiary Golden Bay cement is waiting to embark on a US$119 – 178m course of capital expenditure (CAPEX) investment. However, the group said that it will first require ‘clarity from the government’ on any upcoming changes to industrial CO2 emissions allocations or border adjustments.
CEO Ross Taylor said “Until we get certainty there, we really can’t pull the cord.” He added “There’s a good pipeline of existing stuff which will really start maturing in two or three years, but there’s another really sizeable pipeline beyond that.”
Fletcher Building invested a total of US$182m across its businesses during the 2023 financial year, which ended in June 2023. The Bay of Plenty Times newspaper has reported that the investments are part of the group’s growth strategy for the four-year period up to the end of the 2027 financial year. Planned areas for investments include adding value to the group’s wood products by developing its alternative fuel (AF) capacity. The growth strategy has a budget of US$474m.
Fletcher Building’s sales flat in 2023 financial year 16 August 2023
New Zealand: Fletcher Building recorded sales of US$5.07bn during the 2023 financial year, down slightly year-on-year from US$5.08bn in the 2022 financial year. Its earnings before interest and taxation (EBIT) fell by 29% to US$296m from US$419m. The drop in earnings was mainly attributed to additional costs allocated to the New Zealand International Convention Centre and Hobson Street Hotel project. Adjusted for significant items, the group’s EBIT rose by 6% to US$477m from US$452m.
Throughout the year, Fletcher Building’s cement subsidiary Golden Bay Cement co-processed 100,000t of waste as alternative fuel (AF). The producer awarded a bottom ash supply contract to Huntly Power Station. It also launched EcoZero carbon neutral cement, which is its EcoSure reduced-CO2 cement with the remaining emissions offset.
Chief executive officer Ross Taylor said “Looking forward to the 2024 financial year, we expect some further tightening in our overall volumes and so our focus remains on strong customer performance, cost control and pricing disciplines across our businesses. We have shown we are well equipped to continue performing solidly through the cycle.”
Neocrete plans first Neocrete activator plant 24 July 2023
New Zealand: Neocrete has launched an investment round to raise over US$1.86m in funding. The start-up will use the funds to build an industrial-scale plant for its Neocrete activator for pozzolan-based concrete. The use of Neocrete's activator can eliminate up to 50% of cement in concrete. Neocrete aims to ultimately displace 100% of concrete's cement content. The Hawke's Bay Today newspaper has reported that pozzolan-based concrete made using Neocrete's additive offers resilience benefits compared to conventional ordinary Portland cement (OPC)-based concrete. It is especially suited construction in seawater-exposed settings.