Displaying items by tag: Alternative Fuels

Uganda: Hima Cement has said that over 50% of its fuel for cement production now comes from renewable biomass instead of heavy fuel oil (HFO). Head of regulatory affairs David Mugagga said that the biomass used to fuel the kilns at Hima Cement’s plants is sourced from coffee husks, palm kernels, rice husks and sawdust. Mugagga also said that the company collects hazardous waste to use as fuel, reducing the amount that goes to landfill.

Brazil: Votorantim Cimentos has reported that it ended 2024 with global CO₂ emissions of 550kg/t of cementitious material produced, a reduction of 28% compared to 1990, the baseline year used by the cement industry. The level reflects a 1% year-on-year decrease from 556kg/t in 2023. Votorantim Cimentos’ 2030 decarbonisation target, approved by the Science Based Target initiative (SBTi), is 475kg/t of cementitious product.

Votorantim Cimentos’ global thermal substitution rate (TSR) was 32% in 2024, an increase over 2023’s TSR of 31%. Its 2030 target is 53%. The company’s clinker factor was 72.5%, a slight fall compared to 73% in 2023. Its 2030 goal is 68%. 34% of the electricity consumed by Votorantim Cimentos in 2024 came from renewable sources, the same as in 2023. The company’s goal is to have 45% of the energy consumed globally come from renewable sources by 2030.

Álvaro Lorenz, Global Director of Sustainability, Institutional Relations, Product Development, Engineering and Energy, said “Globally, we have made progress in pilot projects for CO₂ capture, installed new co-processing and renewable energy sites and systems, and launched low-carbon products. All these efforts will contribute toward our decarbonisation journey and help us achieve our goal of producing carbon-neutral concrete by 2050.”

Boral announced this week that it had secured around US$15m from the Australian government towards decarbonisation upgrades at its Berrima cement plant in New South Wales. The funding will go towards the company’s own investment in a kiln feed optimisation project. A new specialised grinding circuit and supporting infrastructure at the site is intended to increase the proportion of alternative raw materials (ARM) from 9% to 23% to decrease the amount of limestone the kiln uses. The use of more ARMs should also enable the unit to reduce its energy intensity. Boral plans to use ARMs including granulated blast furnace slag, steel slag, cement fibre board, fly ash and fine aggregates from recycled concrete. Commissioning and full operation of the changes are scheduled for 2028.

The Berrima plant officially opened its last set of changes, including a chlorine bypass unit, in December 2024. This was done to allow the plant to reach a thermal substitution rate (TSR) of 60% by the end of 2027. At the end of 2024 the company said it had a TSR of 30% having risen by 20% from 2023. Another similar decarbonisation project at the plant is a carbon capture and storage demonstration pilot trial involving the recarbonation of construction and demolition waste.

Parent company SGH said in its annual report for 2024 that Boral was continuing to advocate for a carbon border adjustment mechanism (CBAM) to prevent carbon leakage and that it had taken part in the ongoing government review on the issue. This lobbying was visible earlier in March 2025 when the Cement Industry Federation (CIF) publicly addressed the government on the issue ahead of its next budget. It asked that carbon leakage be addressed in the form of an import tax to protect the local cement and lime sector. Cement and lime imports from Thailand, Malaysia, Indonesia, Vietnam and Japan are particularly seen as an issue. The government review into carbon leakage started in 2023 and is due to report back at some point in 2025, most likely after the parliamentary election in May 2025.

Another big sector news story to note is the ongoing acquisition of the cementitious division of the Buckeridge Group of Companies (BGC) by Cement Australia that was revealed in December 2024. Unsurprisingly, the European Commission (EC) approved the deal in late March 2025. Cement Australia’s parent companies Holcim and Heidelberg Materials are headquartered in Europe, but the EC concluded that the planned transaction was unlikely to dampen competition in Europe. The verdict of the Australian Competition and Consumer Commission (ACCC) is likely to be far more telling. It closed taking submissions on the proposed deal in late February 2025 and plans to release an update in May 2025.

The ACCC’s market inquiries letter reported that Cement Australia wants to run BCG Cement. However, under the acquisition proposal, BGC Quarries and BGC Asphalt will be acquired and operated by a new 50:50 joint venture between Holcim and Heidelberg Materials, which will operate as a production joint venture in respect of aggregates. Holcim and Heidelberg Materials have suggested taking four ready-mixed concrete (RMC) plants each in the greater Perth area. Finally, one RMC plant at Wangara could be divested due to the close proximity of existing plants run by Holcim and Heidelberg Materials. Whether this is what actually happens remains to be seen.

Finally, Holcim flagged-up Australia this week as one of the regions it intends to derive ‘profitable growth’ from after the planned spin-off of the US business. This approach is in line with the hunt by the big building materials companies for new growth markets as the cost of merger and acquisition activity in the US has risen. CRH, for example, bought a majority stake in AdBri in mid-2024. Further merger and acquisition activity in the cement sector in Australia seems less likely given its relative small size. Yet the higher economic growth forecast for the country compared to Europe is likely to keep multinationals interested.

Brazil: Votorantim Cimentos grew its revenue and earnings in 2024 but its net income dropped significantly due to interest rate volatility. It noted ‘positive performance’ in its Europe and Asia region and a stable market in Brazil. It attributed its mounting earnings to its balanced portfolio, revenue in Europe and Asia, operational efficiency, reduced costs and new business.

The group’s net revenue grew by 3% year-on-year to US$4.69bn in 2024 from US$4.53bn in 2023. However, revenue fell slightly in local currencies due to negative exchange effects, particularly in North America. Cement sales volumes rose by 1% to 35.4Mt from 34.9Mt. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 16% to US$1.14bn from US$0.99bn. Earnings rose in all regions except for Latin America due to a ‘challenging’ market in Uruguay and lower prices in Bolivia. Despite this, its adjusted net income dropped by 17% to US$383m from US$461m.

“We ended the year with record-high operating results, supported by our geographic, product and business diversification, in line with our strategic mandate,” said Osvaldo Ayres, the group’s global CEO. The company invested over US$550m in 2024 towards decarbonisation, competitiveness and new businesses. A further US$880m investment plan in Brazil to 2028 was announced in early 2024. Ongoing projects include upgrades supporting higher thermal substitution rates at the Xambioá plant in Tocantins state and the Salto de Pirapora plant in São Paulo. A new 1Mt/yr cement grinding unit is being built at the Salto de Pirapora site. Construction of this project is scheduled for completion in the second-half of 2025. A new 1Mt/yr cement grinding unit was also announced at the Edealina plant in Goiás. This project is expected to be completed in the first half of 2026.

Votorantim also revealed that it paid around US$190m to the Administrative Council for Economic Defense (CADE) at the end of 2024 in connection with an agreement to end all administrative and judicial litigation. It said “We definitively resolved all pending disputes with CADE. We did not acknowledge, at any time, having committed any unlawful act or engaged in any anticompetitive behaviour.”

Finland: Tana Oy has appointed Jari Mennala as its CEO with effect from 5 May 2025. He succeeds Kalle Saarimaa who became the Chief Operating Officer and Executive Vice President of NG Group in February 2025.

Mennala was appointed as the Director of Worldwide Forestry Sales & Marketing and Managing Director of John Deere Forestry Oy in 2024. He has worked for John Deere since 2008 for its forestry division in Finland, the US and the UK. He holds a master’s degree in industrial management from Tampere University of Technology and an executive master’s of business administration from Aalto University in Helsinki.

India: Swachha Andhra Co. chair K Pattabhiram and Andhra Pradesh Pollution Control Board chair P Krishnaiah said cement manufacturers must use refuse-derived fuel (RDF) in kilns as per the Solid Waste Management rules issued by the Ministry of Housing and Urban Affairs in 2018. The regulation requires a minimum RDF usage of 15% to reduce coal consumption in cement production.

Pattabhiram said 7000t of waste is generated daily from 123 urban local bodies, and stressed the need for daily processing to eliminate dumping yards. He urged cement plants within 400km of municipalities to comply. Krishnaiah added that a joint technical committee would be formed to assist cement producers in implementing the rule.

Slovakia: Slovak cement plants recovered 374,000t of alternative fuels made from waste in 2024, replacing 75% of heat from fossil fuels, according to the Cement Manufacturers Association (ZVC) of the Slovak Republic. This has reportedly saved almost 230,000t of coal and reduced the cement plants’ carbon footprint.

Director of ZVC Rudolf Mackovic said “Instead of waste, such as non-recyclable plastics, being deposited in landfills without being used, it is processed into fuel in processing plants. Such an alternative fuel meets strict quality and ecological parameters.”

Kenya: At least 99kg of heroin and cocaine worth US$2.3m were destroyed at the Bamburi Cement Mombasa plant, at the request of the Directorate of Criminal Investigations Kenya, according to a social media post from the company. Bamburi Cement’s kiln was selected as the most secure method for incinerating the seized narcotics.

“Our kilns co-process waste and convert it into energy, reducing CO₂ emissions and supporting a clean circular economy. We are proud to contribute to this public interest solution that has eliminated a threat posed to our fellow Kenyans,” said Sustainability & Geocycle Director Jane Wangari.

Bamburi Cement has previously collaborated with multi-agency teams to dispose of over 5000t of hazardous waste imported into the country at its Mombasa facility.

Nigeria: The Lagos State government has signed a memorandum of understanding (MoU) with Lafarge Africa for the collection of non-recyclable combustible waste from across the state and landfill sites for conversion into alternative fuel at Lafarge’s Ewekoro plant.

Lafarge Africa CEO Lolu Alade-Akinyemi said “We have successfully deployed waste-to-energy solutions globally, and today, we are extending that expertise to Lagos.”

Oman: Raysut Cement has signed a memorandum of cooperation with Oman Environmental Services Holding Company (Be'ah) and Germany-based MVW Lechtenberg and Partner to explore the feasibility of producing refuse-derived fuel. The project aims to promote alternative fuel use in heavy industries, reduce waste and support Oman's environmental sustainability goals.

CEO of Raysut Cement, Hilal bin Saif al Dhamri, said "This project underscores the partnership between Be'ah and Raysut Cement in advancing the circular economy and supporting Oman's efforts to achieve carbon neutrality."