Displaying items by tag: CO2

UK: The Institutional Investors Group on Climate Change (IIGCC) has called on European building materials companies to take steps to fight climate change or face commercial extinction. Recommended changes from its new ‘Investor Expectations of Companies in the Construction Materials Sector’ report have been sent to the heads of LafargeHolcim, HeidelbergCement, CRH and Saint-Gobain. The report informs investor engagement with other construction material firms on the initiative’s global list of 161 focus companies. Investment bodies in the group represent US$2Tn in assets, assets under management and under advice.

“The cement sector needs to dramatically reduce the contribution it makes to climate change. Delaying or avoiding this challenge is not an option. This is ultimately a business-critical issue for the sector,” said Stephanie Pfeifer, the chief executive officer (CEO) of the IIGCC. “Major economies such as the UK and France are increasingly adopting economy-wide net zero emission targets. The cement sector needs to get ahead of the profound transformation their sector faces by addressing barriers to decarbonisation in the short- to medium-term if companies are to secure their future.”

Key details set out in the ‘Investor Expectations’ report include becoming carbon neutral by 2050. Companies are expected to set short, medium and long-term science-based targets to reach this goal. Building material companies should be public policy transparent and advocate for the Paris Agreement, they should implement a ‘strong’ governance framework assigning specific responsibility for climate change to a board committee or board member and they should provide enhanced corporate disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The IIGCC recognised the steps HeidelbergCement in particular has taken in already having committed to meeting key aspects of the investor expectations it has outlined. CRH, LafargeHolcim and Saint-Gobain have been encouraged to follow suit, given the ‘significant’ role they play as European-based multinationals. The group also praised the ambitious targets set by India’s Dalmia Cement to become carbon negative by 2040.

US: The Japan Coal Energy Center (JCOAL), GreenOre Clean Tech, Columbia University and Wyoming Infrastructure Authority (WIA) have entered into a memorandum of understanding (MOU) to test carbon utilisation and recycling technology. GreenOre Clean Tech, using technology under license from Columbia University, will use testing space at the Integrated Test Center (ITC) near the Dry Fork Station coal-fired power station in Gillette, Wyoming. Calcium carbonate produced through CO₂ mineralisation could then potentially be used for aggregates, concrete production or in paper production. The test will be funded by JCOAL with additional support from project partners.

The State of Wyoming and JCOAL have been working together since 2016, when they signed an initial MOU committing to cooperation in coal research and development of technologies and coal trade. JCOAL operates under the supervision of the Ministry of Economy, Trade and Industry of Japan and is supported by more than 120 member coal-related businesses, including Kawasaki Heavy Industries, Mitsubishi Hitachi Power Systems, Nippon Steel and Toshiba. Kawasaki is scheduled to test its solid sorbent capture technology at the ITC beginning in 2021.

The UK waste fuels industry is facing potential challenge from changing Dutch environmental legislation. As part of its new National Climate Agreement the government in the Netherlands is considering imposing a tariff of Euro32/t on imported refuse-derived fuel (RDF) from the start of January 2020. It also wants to add a CO2 tax of Euro30/t on industrial emitters from the start of 2021.

This is bad news for the UK’s waste export market because 1.28Mt or 44% of exported waste fuels from the UK in 2018 went to the Netherlands. The majority of this was RDF. That was more than the next two biggest destinations, Sweden and Germany, combined. Andy Hill of Cynosure Partners summed up the UK situation in the June 2019 issue of Global Cement Magazine when he said, “The UK generates more far more waste than it has landfill, recycling and alternative fuel capacity combined. Quite simply, that’s why the UK exports and has become a leading force in Europe in terms of RDF and solid recovered fuel (SRF) exports.”

Graph 1: International Waste Shipments exported from England, 2011 – 2018. Source: UK Environment Agency.

Graph 2: Destinations of English waste fuels exports in 2018. Source: UK Environment Agency.

Waste management companies and their representative associations on both sides of the North Sea are not taking this terribly well. Robert Corijn, chair of the RDF Industry Group, a European waste organisation, summed up his members response by pointing out both the environmental cost of the new legislation and the risk to jobs in the UK. “RDF export forms a vital and flexible part of the UK’s waste management system, supporting over 6800 additional jobs in the UK, and saving over 0.7Mt/yr CO₂e emissions.” Robert Loos of the Dutch Waste Management Association made a similar response questioning what exactly the Dutch government was attempting to achieve.

Steve Burton, one of the directors of UK-fuels producer Andusia, went further by saying that the Dutch had proposed the move on environmental grounds because it has an incineration capacity of 8Mt/yr but produces only 6Mt/yr of waste. “So they think that by setting a tax it will significantly curtail how much gets incinerated in the Netherlands and thus produce less CO₂. All very sensible if you consider CO₂ in isolation in your own country. However, the Dutch Government aren’t looking at the bigger picture…” He then went on to point out that the RDF would then either get burnt elsewhere or landfilled resulting in no overall CO₂ emissions reduction. His further assessment, which you can read here, goes on to speculate amongst other things that Dutch Energy for Waste (EFW) plants could end up having to cut their gate fees by more than the import tariff in order to keep running. The state-owned EFW plants would then made a loss for the tax payers until the market stabilised. It should be noted that the data from the Environment Agency indicates that Andusia exported just under 38,000t of RDF to the Netherlands in 2018.

The more prickly issues of using waste fuels may prove tricky for Dutch legislators. Corijn’s distinction above of using CO₂e for the savings from RDF usage is important in this argument since burning RDF and alternative fuels, either for generating energy or making cement, still releases CO₂. In the European Union (EU) it’s the biomass fraction of RDF that’s important for the Emissions Trading Scheme (ETS) and the like because biomass emissions are counted as carbon-neutral. Remove this effect and the benefit of waste fuels are more to do with the waste hierarchy and reusing materials rather than leaving them to rot and release methane, a gas with a more potent global warming effect than CO₂. Despite this, at face value, importing rubbish and then burning it to release yet more unwanted CO₂ may seem nonsensical to the parliamentarians. Perhaps the other thing they should consider is that waste-derived fuels are manufactured products to set specifications. On-going arguments around the world about the developed world ‘exporting its rubbish’ frequently ignore this point.

Since the new Dutch National Climate Agreement is currently at the proposal stage it has a long way to go before it becomes law. First it has to be turned into legislation and then this has to be approved by the Dutch Parliament. As indicated so far the waste management industry will continue to fight its corner with vigour.

France: Lafarge France has launched its Lafarge 360 initiative. The scheme aims to aid specifiers, contractors and builders make low-carbon structures through reducing CO₂ emissions, preserving natural resources and responsible innovation. It will start the initiative by proving a Lafarge 360 score on its associated digital platform to allow customers to assess the environmental impact of Lafarge’s products. By providing a rating of A to D the tool will offer information on the concrete types.

Austria: Data from the Austrian Cement Industry Association (VÖZ) shows that cement production rose by 7.4% year-on-year to 5.2Mt in 2018. The increase has been attributed to a construction boom. Sales of cement grew by 4.7% to Euro432m. Sales continue to increase at a similar rate in the first quarter of 2019 but this has slowed down in the second quarter.

The association has said that environmental investment more than doubled in 2018 to Euro45m. The local industry’s alternative fuels substitution rate was 82% and CO₂ emissions fell by 0.8% to 521kg/t of cement.

US: Hawaii’s Department of Transportation plans to use carbon-injected concrete for its new projects. This will include a new structure to protect a highway tunnel from rockfalls, according to Reuters. The Department of Transportation was testing CO₂-injected concrete on an access road project with CarbonCure Technologies in May 2019. The latest decision follows a resolution by state legislators that city administrators ‘consider’ using CO₂-injected concrete in city and county infrastructure where concrete is used.

In late June 2019 CarbonCure announced that its had formed a partnership with HC&D Ready Mix, a local concrete producer, to use its CO₂-injected concrete process. It is the second deal with a concrete producer in the state that CarbonCure has arranged.

Japan: Taiheiyo Cement has set an 80% CO₂ reduction target from cement production by 2050. It also plans to reduce its emissions from cement products by 20%. It aims to do this via a variety of means including energy-saving measures, promoting co-processing, lowering the clinker factor of its cement and CO₂ capture technology. The cement producer started a pilot of a chemical absorption method on kiln exhaust gases at its Fujiwara plant in early 2019.

US: Researchers from CalPortland have published a peer-reviewed study looking at the absorption or carbonation of CO₂ by buildings, pavements and structures made from concrete. The authors argue that this negative effect on CO₂ emissions is not being considered in global, national and regional greenhouse gas accounting methods. The paper calls for focused studies on CO₂ uptake in concrete within the context of its overall Life Cycle Assessment (LCA).

“It is time to further examine the value of concrete in the built environment as a significant carbon sink,” said Allen Hamblen, president and chief executive officer (CEO) of CalPortland. “To do so accurately, we must specifically look at the net effects of CO₂ sequestration in concrete and evaluate all structures over their lifetime within a circular economy.”

The study looks at previous attempts to quantify the effect of concrete carbonation, notably using work by the Swedish Environmental Research Institute (SERI) that examined data from several European countries to develop practical models to gauge the extent of CO₂ uptake by concrete globally in the built environment. Different models estimated that 15 - 20% of CO₂ emissions from clinker production were reabsorbed over the lifetime of concrete structures.

China: Huaxin Cement emitted 1.4Mt of CO₂ equivalent in 2018. About 60% of this came from process emissions from making clinker and about 30% came from burning fossil fuels. Additional emissions arose from electrical consumption.

The cement producer says that it implemented a variety of emission control and sustainability initiatives in 2018. These included improving its energy saving management, rollout of waste-heat recovery systems and other plant upgrades. It is also promoting so-called ‘green’ products. In January 2019 its Huaxin Fortune brand 42.5R grade Ordinary Portland Cement obtained low carbon product certification from the China Quality Certification Center.

South Africa: Sephaku Cement estimates it will have to pay up to US$2.8m/yr as part of South Africa’s new carbon tax. The new tax started in June 2019. The subsidiary of Nigeria’s Dangote Cement said that it would apply the tax on its products based on the proportion of clinker per tonne. This would work out at between a 1.5% and 2.5% price increases on lower strength and high strength cement respectively.

In a financial report to 31 March 2019 the cement producer said that its cement sales volumes fell by 6.4% year-on-year due to low cement demand was exacerbated by increases in value added tax (VAT) and fuel prices during the first and last quarter of its financial year. Its sales revenue fell by 3.1% to US$162m and its net profit rose to US$9.08m but only due to a tax credit.