Displaying items by tag: Fuel

India: ACC has blamed a drop in earnings in the fourth quarter of its financial year on higher fuel prices. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15% year-on-year to US$71.9m in the quarter that ended in March 2023 from US$64.7m in the same period in 2022. However, it said that fuel prices were expected to drop due to synergies with other subsidiaries within Adani Group. It is also working on reducing operational costs by reducing its clinker factor, logistics costs and growing sales of blended cement products. It added that it had reduced its kiln fuel cost by 10% in the fourth quarter by taking the measures mentioned above and by increasing its use of alternative fuels.

The company changed its financial year to one ending in March 2023 during the reporting period. Its calculated net revenue rose by 10% year-on-year to US$2.16bn for its 2023 financial year that ended on 31 March 2023 compared to US$1.97bn in the previous 12 months. Its cement and clinker sale volumes grew by 6% to 31Mt from 29Mt.

Ajay Kapur, the chief executive officer of ACC, said “Our transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators. We have a detailed blueprint on each of the cost factors and initiatives to reduce and improve.”

India: The price of imported coal ended December 2022 at US$145/t. The figure represented a 15% month-on-month drop from November 2022 levels. HT Media News has reported that the price is the lowest since the Russian invasion of Ukraine in February 2022.

Finance company IDBI Capital has forecast that earnings before interest, taxation and amortisation (EBITA) per tonne of cement by local cement producers will rise by US$2.66/t quarter on quarter during the fourth quarter of the 2023 financial year, which will end on 31 March 2023. This is partly due to an anticipated 10% year-on-year decline in coal and petcoke costs during the period, alongside a 10% rise in cement volumes projected over the same period.

India: UltraTech Cement recorded sales of US$1.91bn during the third quarter of the 2023 Indian financial year, up by 20% year-on-year from third-quarter 2022 financial year levels. The Aditya Birla subsidiary's cement sales during the quarter grew by 13% year-on-year in volume. It recorded 24% growth in costs, to US$1.74bn, while its profit fell by 38% to US$131m.

UltraTech Cement noted growth in the cost of electricity, fuels and raw materials.

Switzerland: Cemex's innovation investments subsidiary Cemex Ventures has made a further investment in solar-powered clinker production system developer Synhelion. Synhelion's technology enables cement plants to entirely replace fuels in their cement production with concentrated solar heat. Cemex Ventures said that its investment reflects the importance of sustainable fuel alternatives for Cemex's 2050 net zero CO₂ emissions strategy.

Other investors include oil company Eni, engineering company SMS Group and airline Swiss.

France: Authorities have granted construction and environmental clearances to N + P Group to set up its planned Isbergues Subcoal solid recovered fuel (SRF) plant in Hauts-de-France. When commissioned in 2024, the 150,000t/yr-capacity plant will be France's first to commercially produce the coal alternative for cement and other industries. The company says that its products will be able to eliminate 100,000t/yr of industrial CO₂ emissions nationally. N + P Group will use locally sourced waste at the unit.

Chief development officer Lars Jennissen said “Obtaining the environmental and construction permit is a major achievement for us, and we thank our colleagues and partners for their hard work in realising this important milestone. The new location will contribute to the circular economy in Hauts-de-France by converting regional non-recyclable wastes into new resources for regional customers, and it offers a massive potential CO₂ savings for the French market.”

Australia: Cement Australia’s Gladstone cement plant in Queensland will host a study of methanol production from green hydrogen and captured CO₂. Japan-based Mitsubishi Gas Chemical Company will supply its green methanol production technology, while hydrogen and oxygen feedstocks will be sourced locally. Cement Australia and Mitsubishi Gas Chemical Company will collaborate on commercialisation of their green methanol. Cement Australia said that carbon capture and its utilisation in value added products is a strategic pillar of the company’s decarbonisation roadmap.

The cement producer said “The Gladstone region is the ideal location for growing a diverse green hydrogen sector, with abundant renewable energy sources, existing infrastructure, including port facilities, and a highly skilled workforce. The green hydrogen economy is a priority for the Queensland government under the Queensland Hydrogen Industry Strategy.”

India: Birla Corporation won bidding for Madhya Pradesh's Marki Barka coal mines on 15 October 2022. The producer said that the asset will provide fuel security and cost optimisation for its cement operations.

India: UltraTech Cement has imported a 157,000t shipment of coal from Russia for US$25.8m, which it paid in Chinese Yuan. ET NOW News has reported that this is the first instance of an Indian entity using the currency in international trade. The deal has a value of US$164/t, 50% below average South African coal prices and 20% below average Australian cement prices in India. The deal reportedly signals the possible end of Indian coal prince inflation in the medium – long term.

Ghana: Alan Kyerematen, the Minister for Trade and Industry, has blamed the increasing price of cement on negative currency exchange effects and growing fuel prices. He informed the Parliament of Ghana that the cost to import clinker has risen significantly, according to the Ghana News Agency. Kyerematen also noted that the cost of freight has surged due to the coronavirus pandemic and then the war in Ukraine.

Australia: Adbri is part of a consortium of eight Australian industrial manufacturers, developers and port operators collaborating with AGL Energy on a feasibility study for a green hydrogen plant at the site of the latter’s Torrens Island power plant in South Australia. AFR Online News has reported that any future hydrogen plant established by the partners would rely on solar and wind power, which has large potential in the region.

The South Australian government previously launched its first US$414m green hydrogen project in Whyalla in March 2022.