Displaying items by tag: Cemex España

Cemex announced last week that it will stop producing clinker at its Lloseta plant in Mallorca. Grinding activity at the site will continue, along with the shipment of bagged and bulk cement products. The company has framed the closure as part of its decarbonisation plans. The dismantling of the two preheater towers at the plant is scheduled to take place by the end of 2030. Cemex said that it will take this long to allow the cement plant to continue operating, as well as a neighbouring hydrogen unit and other nearby industrial units. The status of the Lloseta plant has been in question before. It was closed in early 2019 due to reduced cement demand and mounting European CO₂ emissions regulations. However, it reopened in 2021.

Readers may recall that Cemex España participated in the Power to Green Hydrogen Mallorca project. Land by the Lloseta cement plant was used to hold solar panels and a solar-powered hydrogen unit. Other partners in the project included energy suppliers Enagás and Redexis and renewable power and infrastructure company Acciona, among others. When the unit was commissioned in early 2022, it said it was the first solar power-to-green hydrogen plant in Spain. The link between Cemex and hydrogen is noteworthy given the cement company’s adoption of hydrogen injection as part of its alternative fuels strategy. Interestingly, Acciona planned to use a blockchain method to certify that hydrogen produced at the site was made using renewable energy sources. Heidelberg Materials also plans to use the same process to verify its evoZero brand of net-zero cement products in 2025. Another recent sustainability sector news story in Spain is the commissioning by Çimsa of a 7.2MW solar plant supporting its Buñol white cement plant in Valencia. The new installation is expected to supply about 18% of the plant’s energy needs.

On the corporate side of things, FCC revealed in mid-May 2024 that it was preparing to spin-off its cement and real estate subsidiaries into a new company called Inmocemento. The cement part of this is Spain-based Cementos Portland Valderrivas. The move is intended to bolster the values of the different parts of the business. The proposal will be put to FCC’s shareholders in late June 2024, with any resulting action taking place by the end of the year. The decision to separate FCC’s cement assets is reminiscent of the financial engineering Holcim has proposed with its US business. However, in this case the driver does not appear to be the disparity between the European and US stock markets.

Graph 1: Domestic consumption and exports of cement in Spain, 2013 - 2023. Source: Oficemen.

Market data was also out this week from Oficemen, the Spanish cement association. Domestic cement consumption grew year-on-year in April 2024 but the year so far is looking weaker with consumption from January to April 2024 down by 4.5% year-on-year to 4.65Mt. This is below Oficemen’s forecast for 2024 where it expected a stagnant situation. However, there are eight more months to go. In 2023 cement consumption fell by 3% to 14.5Mt and exports declined by 7.5% to 5.2Mt. The association blamed continued underinvestment in both the public and private sectors due to economic instability since the Covid-19 pandemic. Graph 1 above shows the wider situation in the Spanish cement market over the last decade. The share of exports has declined and local consumption rebounded after 2020 but has declined since then.

These news stories provide a snapshot of what’s been happening in Spain recently in the cement sector. Oficemen’s prediction for 2024 is gloomy but local consumption has risen over the past 10 years. Exports have fallen but the cement association has started to spin the country’s decarbonsiation drive as a potential positive for the industry’s competitiveness generally. It’s hard to discern right now but there might be an advantage for an export-focused country that conforms to European standards in the future if it can hold onto its capacity. Admittedly, that’s a big if. This thinking along sustainability lines could be seen earlier in May 2024 when Cementos Molins Group rebranded itself as Molins. It described the rebranding as a bid to represent the wider range of construction products it manufactures and sells beyond cement. Oficemen has also pointed out that the local market has room for development given the relatively low cement consumption per capita in Spain compared to its peers. So, whatever happens next, there is likely to be room for improvement in the cement market.

Spain: Cemex España plans to install a new tertiary mill in its Alicante cement plant’s refuse-derived fuel (RDF) line. The project, called Molentis, is scheduled for completion in early 2025 and will cost €6m. The Molentis upgrade will help the Alicante cement plant to raise its RDF substitution rate by 8%, according to the producer. This in turn will reduce its CO₂ emissions by 6700t/yr. The Spanish Ministry of Industry, Energy and Tourism granted €4.4m toward the project to Cemex España under its Innovation and Sustainability Plan.

Cemex España director of operations Benjamín Cabrera said "Molentis will enable us to advance towards climate neutrality and position the Alicante factory at the forefront of new technologies in the decarbonised industry."

Spain: Cemex España has announced its participation in the HYIELD consortium, which plans to build a waste-to-hydrogen demonstration plant at the producer’s Alcanar cement plant in Catalonia. The demonstration plant will process a total of 2000t of biogenic waste to produce 400t of green hydrogen for use as fuel, fertiliser and for other applications. The trial commands Euro10m in funding from the EU’s research and innovation funding programme Horizon Europe. Parent company Cemex believes that the technology being demonstrated at Alcanar has the potential to process 300Mt/yr of waste across Europe and produce 30Mt/yr of hydrogen.

Cemex’s Europe, Middle East and Africa regional president Sergio Menendez said “As part of its drive towards reaching net zero by 2050, Cemex is committed to partnering with like-minded organisations to explore the very latest innovations in more sustainable technology that can support the cement production process. We are proud to provide one of our cement plants in Spain as the location for the HYIELD trial and excited to see the outcomes from this research and development project.”

Spain: The Supreme Court of Spain ruled in favour of tax authorities in their pursuit of Cemex España for its accounting of reported losses in the 2006 – 2009 financial years on 21 November 2023. The authorities imposed a Euro456m fine on the company following an audit in July 2011.

Mexico-based Cemex said that is has ‘sources of liquidity’ available to pay the fine, which it now anticipates that it will do before the end of June 2024.

Cemex ‘categorically’ disagrees with the imposition of the penalty. The group maintains that the losses Cemex España declared were not used and since 2012 have not been accounted for in its financial statements.

Spain: Cemex España has bought two new quarries near Madrid. The producer said that the quarries will strengthen its limestone reserves. It added that they include ‘all necessary elements’ for it to increase its services to the Madrid market.

Cemex’s Europe, Middle East, Africa and Asia regional president Sergio Menéndez said “These acquisitions strengthen our existing network and enable us to better serve a growing market with high-quality, sustainable and circular products. We are excited to be part of Madrid’s growth, which contributes to improving the quality of life of its residents and setting an example for more sustainable and circular cities.”

Spain: Residents of Cartagena, Murcia, have protested Cemex’s plans to begin mining pozzolan at new sites locally. The Murcia Plaza newspaper has reported that the protestors are calling for a mining ban, in line with their interpretation of the area’s Rural Area of Special Environmental and Social Sensitivity designation.

Spain: Switzerland-based Synhelion and Cemex España plan to build a new clinker plant near Madrid. The plant will use Synhelion’s synthetic fuel to produce clinker from clay and crushed sand at 1200°C. The fuel consists of a gas produced from green hydrogen and captured CO₂, using solar heat. La Tribune de Genève Online News has reported that Synhelion’s thermochemical reactor further helps to capture CO₂ emissions from clinker production. A study by the Swiss Federal Institute of Technology Lausanne indicated that this can halve the cost of carbon capture at cement plants, to below Euro85/t.

Spain: Cemex España has secured Euro4.4m in EU funding for an upgrade to its Alicante cement plant in Valencia. The project will launch the use of Clyngas synthetic gas as alternative fuel (AF) at the plant. Thermochemical conversion specialist WtEnergy, a subsidiary of Cemex Ventures, will supply the syngas. The partners say that this upgrade will reduce CO₂ emissions by 400,000t per decade.

Parent company Cemex said "This project is part of Cemex’s Future in Action programme, which seeks to achieve sustainable excellence through climate action, circularity and natural resource management, with the primary objective of becoming a net-zero CO₂ company."

Spain: Cemex España and ecology company Cinclus have extended their quarry rehabilitation partnership to a national level. Under the extended collaboration, the partners will implement restoration plans for all of Cemex España’s quarries, in line with the cement producer’s Biodiversity Action Plans.

Spain: Cemex España will install a carbon capture system at its Alicante cement plant in Valencia, as part of its efforts to make the unit a 'benchmark pioneer low-CO₂' cement plant. The producer holds a contract with ET Fuels for the supply of 45,000t/yr of CO₂ captured at the facility for methanol production.

Chief executive officer Fernando González said “Our goal of reaching net-zero CO₂ emissions is achievable and will be driven by collaboration and innovation. Our decarbonisation roadmap includes reducing emissions to the lowest possible level through proven levers such as clinker substitution and alternative fuels. New levers, such as rapidly developing CCUS initiatives, must effectively tackle the remaining CO₂ emissions to hit our ambitious 2050 objectives.”