Displaying items by tag: GCW474
The race to zero
23 September 2020Cemex last week. HeidelbergCement and LafargeHolcim this week. China yesterday. One can’t seem to move for major building materials companies (or their owners) issuing carbon neutral strategies at the moment. This week HeidelbergCement first launched its ‘Beyond 2020’ plan, a mixture of financial, portfolio and sustainability goals. Then, LafargeHolcim said that it had signed a pledge with Science-Based Targets (SBT) towards meeting intermediate targets by 2030. Last night, President Xi Jinping told the United Nations (UN) General Assembly in New York that China was aiming to hit peak emissions before 2030 and carbon neutrality by 2060.
The timing of these various sustainability goals are directly or indirectly linked to Climate Week NYC, a notable annual event on the climate change calendar that is taking place at the moment. So it’s a good time for large-scale industrial CO2 emitters, like building material producers, to have something positive to say.
China’s announcement steals the limelight given that the country produces around half of the world’s cement and holds a higher share of clinker production capacity. Western media has pointed out the geopolitical implications of Xi’s statement that was delivered shortly after a speech by US president Donald Trump, a notable climate change sceptic. Xi’s speech didn’t contain any details so it may simply have been an attempt to demonstrate global leadership. Yet if the Chinese government makes a go of it, the effect could be profound. Data from the Centre for International Climate and Environmental Research (CICERO) shows that the Chinese cement industry emitted an estimated 782Mt CO2 in 2018 compared to 1.50Gt CO2 from the cement industry globally and 37.1Gt CO2 from all human-related sources. In other words, the Chinese cement industry was responsible for 2% of all CO2 emissions in 2018. And this industry is mostly owned by a government that has just publicly declared a carbon neutral target.
In some ways the other announcements, by the western-based multinational building material companies, are even more radical since these producers are subject to market forces. These companies don’t have to do this. They also contain more specifics than Xi’s words so far.
HeidelbergCement says it has brought forward its CO2 emissions target for 2030 of 525kg CO2/t (specific net CO2 emissions per tonne of cementitious material) to 2025. That’s a 30% decrease from 752kg CO2/t in 1990. Its new goal for 2030 is below 500kg CO2/t. The main emission reduction methods it outlines include: increased use of alternative raw materials and fuels; increased use of secondary cementitious materials to reduce the clinker factor of cement; investment in plant efficiency and CO2 reduction at the plant level; and increased share of low-carbon concrete products.
Chart 1: HeidelbergCement’s path to net carbon zero concrete: Source: Leading the way to carbon neutrality, HeidelbergCement.
Chart 1 above outlines HeidelbergCement’s thinking post-2030 with further reductions to CO2 emissions mainly achieved through circular economy methods and different carbon capture techniques. Two points to hold in mind here. One: note the current uncertainty about which route will provide the biggest share of the reduction. Two: this chart considers concrete, not cement.
LafargeHolcim’s announcement was that it has joined Science Based Targets initiative (SBTi) ‘Business Ambition for 1.5°C.’ It says that by doing so it has become the first global building materials company to sign the pledge with intermediate targets for 2030, validated by SBTi. This is slightly confusing given that other building materials companies have had different dealings with the SBT as it has worked towards its current scheme. Earlier this month, for example, we reported that Taiwan Cement had started an SBT project in 2019 and had some targets approved by the SBTi in June 2020. Grupo Cementos de Chihuahua (GCC) said it was joining SBTi at the start of 2020 and HeidelbergCement reported its SBTi approved targets in mid-2019. Finally, India-based Dalmia Cement is also on the SBTi ‘Business Ambition for 1.5°C’ list but it is a stretch to describe it as a ‘global’ company.
The core of LafargeHolcim’s statement is a further reduced target for CO2 intensity in cement of 475kg CO2/t by 2030. So far it’s decreased its CO2 intensity by around 23% to 516 kg CO2/t in 2019 from ~730kg CO2/t in 1990. There’s less looking ahead after 2030 compared to HeidelbergCement but the measures outlined until then include: more use of low-carbon and carbon-neutral products; increased use of alternative raw materials and fuels; doubling waste-derived fuels in production to reach 37%; greater use of calcined clay and developing novel cements with new binders; and operating the company’s first net zero CO2 cement production facility.
Many of the various networks and initiatives across the climate action community came together in June 2020 as part of the UN backed ‘Race To Zero Campaign,’ an attempt to align the disparate leading net zero initiatives ahead of the 26th United Nations Climate Change Conference (COP), due to take place in November 2021 in Glasgow, Scotland. This swirl of different net zero schemes also partly explains the confusion over the different organisations backing sustainability targets that companies can sign up to. So it’s a good thing to see closer collaboration here.
More cynical readers will have latched on to president Xi’s opportunity to show up President Trump in the climate change action stakes. They may also prefer news stories about activist investors prompting change at shareholder-owned companies as they increase their portfolios or stories like Morgan Stanley’s announcement this week that it has a new commitment to reach net-zero financed emissions by 2050. If the investment bank actually means it and other financiers follow suit then the fiscal incentives for net zero draw closer and the rest should follow. Moneys talks… and hopefully CO2 stays buried in the ground.
For sustainability comparisons among the top global cement producers see the October 2020 issue of Global Cement Magazine
Jianlong Shen appointed chairman of KHD
23 September 2020Germany: The supervisory board of KHD has appointed Jianlong Shen as chairman of the management board (CEO) from 1 October 2020 until 30 September 2023. Current chairman Yizhen Zhu has resigned for personal reasons.
Bashundhara Group plans 4Mt/yr cement plant in eastern Bangladesh
23 September 2020Bangladesh: Bashundhara Group has taken a loan of US$82.0, which it says will go towards the construction of a 4.0Mt/yr cement plant in eastern Bangladesh for a total investment of US$117m. The Daily Star newspaper has reported that the new plant will produce cement primarily for export to northeast India. Bashundhara Group’s two cement plants currently have the capacity to produce 5.1Mt/yr of its King Brand cement.
Bank Asia is the lead arranger for the syndicated loan, which it will provide along with Dhaka Bank, First Security Islami Bank, Pubali Bank, Social Islami Bank and United Commercial Bank. Full repayment is due in 2027.
Elementia inaugurates 0.25Mt/yr Progreso grinding plant in Yucatán
23 September 2020Mexico: Elementia has announced the commissioning of a new 0.25Mt/yr grinding plant in Progreso, Yucatán State. The group says that the plant cost US$25m. Chief executive officer (CEO) Jaime Rocha Font said “Through this project, Elementia aims to participate in the growth of the Yucatán Peninsula and Southern Mexico.”
Aravan Cement Plant considering third production line in Kyrgyzstan
23 September 2020Kyrgyzstan: Aravan Cement Plant, part of the Southern Combine of Building Materials, is considering building a third production line with a capacity of 1.5Mt/yr. Plant director Kubanychbek Turdubaev made the announcement to Kyrgyzstan Newsline in a discussion reflecting on the completion of the unit’s second line in 2018, which increased total capacity to 1Mt/yr. The Russian-Kyrgyz Development Fund (RKDF) provided a loan for that project and the company intends to continue the relationship for the next one. China-based Tianjin Cement Industry Design and Research Institute (Sinoma TCDRI) and the Nanjing Long-W Energy Conservation Engineering were also involved. At present the plant sells half of its cement domestically and exports the rest.
Egyptian Cement to open new plant in Sohag in 2021
23 September 2020Egypt: Egyptian Cement Group’s chief executive officer (CEO) Ahmed Abou Hashima says that the company plans to inaugurate its new cement factory in 2021. The plant is located in Sohag and has a total investment cost of US$285m, according to the Hapi Journal. The 2Mt/yr project was originally scheduled to open in the first half of 2020 but was delayed due to the coronavirus pandemic.
Çimsa Çimento hires DAL Teknik Makina for Mersin cement plant upgrade
23 September 2020Turkey: DAL Teknik Makina says that Çimsa Çimento has engaged its services for a cyclone replacement at its 3.4Mt/yr Mersin cement plant in Mersin Province. The upgrade consists of “modification of the first and second-stage cyclones and riser ducts in the first clinker production line, downcomer ducts modification, dip tubes, pendulum flaps, meal pipes and splash boxes installation and refractory procurement and installation.”
The group said, “The modification project will allow electrical and a small amount of heat energy reduction by reducing pressure drop and improving separation efficiency of the cyclones.”
Lafarge Africa donates US$1.29m to battle against Covid-19
23 September 2020Nigeria: Lafarge Africa has made a donation of US$1.29m to the battle against Covid-19 in Nigeria. Business Day news has reported that the money will go towards “various initiatives aimed at fighting the pandemic.” Lafarge Africa previously gave the use of three of its facilities and donated personal protective equipment (PPE) for the isolation and treatment of Coronavrius patients in April 2020.
Ash Grove Cement to upgrade Port Manatee cement terminal
23 September 2020US: CRH subsidiary Ash Grove Cement says that it is undertaking an upgrade of its Port Manatee, Florida deep water cement terminal to install a high capacity FLSmidth Kovako unloader and modernise existing material transfer and electrical systems, as well as establishing self-loading capabilities. The aim of the upgrade is “to improve Ash Grove’s capacity to import cement clinker, slag and fly ash to meet the existing and future needs of customers in the Florida and South Georgia markets.
Regional president Monica Manolas said, “The underlying fundamentals in the Florida market are positive with good population and employment growth. The upgrade of the Port Manatee import terminal will expand our capabilities and strengthen our ability to meet growing demand in the region.”
The company says that construction will begin in early 2021 and the upgraded terminal will open in late 2021.
Hanson Cement’s Ketton plant featured in heritage arts video project
23 September 2020UK: Hanson Cement’s Ketton plant has been featured in a short film as part of ‘Triple Harvest’ by Fermynwoods Contemporary Art, an arts charity’s online exhibition of video films looking at public spaces in Northamptonshire. The programme explores the push and pull between nature and human presence and the effect that extracting resources from the landscape has upon those living within it. Amanda Loomes’ film ‘Combine’ mixes footage from the Ketton cement plant in Rutland in 2017 with archive extracts from ‘Double Harvest,’ ‘The Great Jib’ and ‘Iron Ore in Britain.’
Other works in the programme examine the experience of steel production, farming and the experience of refugees moving to the area. The project has been supported by Corby Borough Council Archives and funded by Arts Council England.
View the 'Triple Harvest' online exhibition here: http://fermynwoods.org/triple-harvest-films/