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Power to the plants

23 May 2012

Two stories this week on alternative fuels illustrate their current place in the cement industry succinctly. Sumitomo Osaka Cement in Japan plans to increase the sales of power generated in-house at its Tochigi Prefecture plant using wood biomass fuel. Meanwhile on the other side of the Pacific Cemex US is planning to cut costs and carbon emissions by installing wind turbines at its Victorville site in California.

At the recent Global CemTrader conference on supplementary cementitious materials (SCMs), coal and petcoke and logistics for the global cement industry, Patrick Peenaert of Lafarge delivered a presentation entitled the 'Global Overview of Worldwide Coal & Petcoke.'

In his talk Peenaert revealed, unsurprisingly, that fossil fuels dominate the global cement industry for the energy consumption of the top four international producers, with coal and petcoke making up over 70% of usage. However, alternative fuel usage has grown from 13% in 2008 to 18% in 2011. As price pressures on fossil fuels grow from other industries so too will investment into alternative fuel options.

The Japanese story demonstrates this well, especially given that the economic fallout of the 2011 earthquake on the Japanese power industry has made an alternative fuel process considerably more valuable for a plant with a temporary closed kiln. By contrast the US story is more nonchalant: operations will proceed at the Californian plant regardless of whether the turbines are built or not.

Yet hedging one's bets with power sources is increasingly seen to be a prudent long term strategy in an uncertain world. A familiar refrain in the recent batch of cement producer financial reports has been mounting energy costs. This week's half-year results for the Pretoria Portland Cement in the bullish African market is no exception.

Watch the video of Patrick Peenaert's presentation at the Global CemTrader 2012 conference, and all the other presentations

Published in Analysis
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Martin Kriegner appointed as CEO of Lafarge India

23 May 2012

India: Martin Kriegner has been appointed CEO of Lafarge India as part of the current group-wide reorganisation drive. He will hold responsibility for all of Lafarge's cement, aggregates and concrete activities in the country.

"I am happy to return to India as Country CEO, at a time when the construction sector is evolving quickly in the country. By combining all of our activities together we will be able to support this evolution by offering integrated and innovative solutions at an earlier stage of construction in close proximity with our customers, allowing the full benefits of our innovative products and services to be realised," said Kriegner.

Martin Kriegner, an Austrian citizen, joined Lafarge in 1990 and became the CEO of Lafarge Perlmooser AG, Austria in 1998 before he moved to India as head of the cement activity in 2002. Prior to this assignment he served as regional president, based in Kuala Lumpur, Malaysia. Lafarge has four cement plants in India: two plants in the state of Chattisgarh and a grinding plant each in Jharkhand and West Bengal.

Published in People
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