Displaying items by tag: GCW566
Building CO2 infrastructure in Europe
20 July 2022It’s been a good week for carbon capture projects in Europe with the announcement of who the European Union (EU) has selected for a grant from its Innovation Fund. 17 large-scale projects have been pre-selected for the Euro1.8bn being doled out in the second round of awards. On the cement and lime sector side there are four projects. These include projects at Holcim’s Lägerdorf cement plant in Germany, HeidelbergCement’s Devnya Cement plant in Bulgaria, Holcim’s Kujawy plant in Poland and Lhoist’s Chaux et Dolomites du Boulonnais lime plant in France. Large-scale in this instance means projects with capital costs over Euro7.5m. To give readers some sense of the scale of the projects that the EU has agreed to pay for, if the funding was shared out equally between the current bunch, it would be a little over Euro100m per project. This is serious money.
Devnya Cement’s ANRAV carbon capture, utilisation and storage (CCUS) project in Bulgaria has received little public attention so far so we’ll look a little more closely at this one first. No obvious information is available on what capture technology might be in consideration at the plant. HeidelbergCement’s leading experience in carbon capture technology at cement plants gives it a variety of methods it could use from a solvent scrubbing route to something less common. What the company has said is that, subject to regulatory approval and permitting, the project could start to capture 0.8Mt/yr of CO2 from 2028.
What has also been revealed is that the project is linking up via pipelines to a depleted part of the Galata gas field site in the Black Sea. Oil and gas company Petroceltic Bulgaria is a partner and the aim of the project is to start a CCUS cluster in Eastern Europe. with the potential for other capture sites in Romania and Egypt to join in. This is noteworthy because much of the focus for the burgeoning cement sector CCUS in Europe so far has been on usage on local industrial clusters or storage in the North Sea.
The other new one is the Go4ECOPlanet project at Holcim’s Kujawy plant in Poland. Lafarge Cement is working with Air Liquide on the project. The latter will be providing its Cryocap FG adsorption and cryogenics technology for direct capture of flue gas at the plant. The transportation of the CO2 is also interesting here as it will be by train not pipeline. Liquid CO2 will be despatched to a terminal in Gdańsk, then transferred to ships before being pumped down into a storage field under the North Sea.
Turning to the other two grant recipients, the Carbon2Business project plans to capture over 1Mt/yr of CO2 using a second generation oxyfuel process at Holcim Deutschland’s Lägerdorf cement plant. This project is part of a larger regional hydrogen usage cluster so the captured CO2 will be used to manufacture methanol in combination with the hydrogen. Finally, Lhoist’s project at a lime plant in France is another team-up with Air Liquide, again using the latter’s Cryocap technology. The capture CO2 will be transported by shared pipeline to a hub near Dunkirk and then stored beneath the North Sea as part of the D'Artagnan initiative. Around 0.61Mt/yr of CO2 is expected to be sequestered.
The key point to consider from all of the above is that all of these projects are clear about what is happening to the CO2 after capture. The days of ‘carbon capture and something’ have thankfully been left behind. CO2 transportation infrastructure is either being used or built and these cement plants will be feeding into it. This will inevitably lead to questions about whether all these new CO2 networks can support themselves with or without EU funding but that is an argument for another day.
Finally, in other news, four residents from the Indonesian island of Pulau Pari started legal proceedings against Holcim last week for alleged damages caused by climate change. Industrial CO2 emissions are unquestionably a cause of this along with other sources but what a court might think about this remains to be seen. Yet, it is intriguing that the plantiffs have decided to go after the 47th largest corporate emitter rather than, say, one of the top 10. Regardless of how far the islanders get this is likely not to be last such similar attempt. If the case does make it to court though it seems likely that Holcim will mention its work on CCUS such as the two projects above. Only another 200-odd cement plants in Europe to go.
Saudi Arabia: Mohammed Saeed Attia has resigned as the chair of Al Jouf Cement. He will continue working for the company as a part-time consultant until mid-2023. Mohammed Saeed Attia was originally appointed as the chair of the cement producer in 2020.
China: Italy-based Bedeschi has appointed Michele Gatto as the managing director of its new Hong Kong-based subsidiary Bedeschi Far East. The company is intended to assist local customers and to support the Far East market both commercially and technically.
Gatto was previously the Sales Director East Asia and Asia Pacific for Aumund from 2019 to 2022. Prior to this he worked for Bedeschi in area manager and sales roles with a focus on Asia. He has also worked for Danieli, Brevnini Power Transmission and Carraro.
India: Ambuja Cements' sales were US$495m in the first quarter of its 2023 financial year, up by 18% year-on-year from first-quarter 2022 financial year levels. Its net profit rose by 45% to US$131m from US$90.4m.The company said that it experienced rising fuel prices and related inflationary impacts during the quarter. It mitigated their impacts through the improved efficiencies delivered under its I Can operating strategy. Meanwhile, its master supply agreement with ACC also helped to restrict growth in transport costs.
Holcim India chief executive officer (CEO) and Ambuja Cements managing director and CEO Neeraj Akhoury said "Ambuja has recorded robust volume growth of 15% and top line growth of 18%. Ambuja Kawach, our green cement, demonstrated a sales growth of 22% year on year."
El Salvador: Holcim El Salvador has officially inaugurated an upgrade to its Maya cement plant. The company has invested US$11.6m towards increasing clinker production capacity by 0.45Mt/yr at the unit. Total cement production capacity of the plant has increased to 1.9Mt/yr from 1.2Mt/yr previously. The Maya cement plant previously reduced production levels significantly in 2008 in response to the global financial crisis at the same time. Oliver Osswald, Region Head of Holcim LATAM, attended the inauguration. The event was also used to launch Holcim’s new corporate branding in the region.
Lehigh Cement’s Union Bridge plant to switch to Portland limestone cement production by 2023
20 July 2022US: Lehigh Hanson’s Lehigh Cement plant in Union Bridge, Maryland plans to fully switch from Ordinary Portland Cement (OPC) to Portland limestone cement (PLC) production by January 2023. It will manufacture its EcoCemPLC product. The company says that the Union Bridge plant is currently the company’s largest cement plant in North America.
The decision to move to PLC follows similar changes at the company’s Mason City plant in Iowa and three cement plants in Indiana. Lehigh Hanson produced over 2Mt of PLC in 2021 and it says it is set to double this figure in 2022.
US: Dome Technology has commissioned a 169,000t dome at Lehigh Cement's Mitchell cement plant in Indiana. The dome is equipped with three reclaim tunnels, enabling 83% live reclaim.
Dome Technology sales manager Lane Robertssaid “It’s a colossal project. It’s one of our bigger domes as far as storage capacity goes."
UK: Cemex UK has commissioned a new 25kg plasticcement bag packing line at its Rugby cement plant in Warwickshire. The line will operate alongside an existing paper bagging line.
Cemex UK's packed cement sales manager Graeme Barton said “The packaging of our products is under routine scrutiny to meet customer demand and reduce waste. We have listened to what our merchants and customers need, and by investing in higher, more reliable capacity, Cemex can now meet the demand from the market in peak months with greater confidence. In turn, our stockists can meet their customers’ requirements by supplying what they need, in a format that works better for them. Our merchants and end-users are already seeing the immediate benefits of the new packaging by reporting fewer breakages in branch and onsite – which helps to cut down on waste."
India: Grasim Industries plans to establish a building materials sales platform with a total investment of US$250m over the five-year period to 2027. The Business Standard newspaper has reported that the new platform offers clear adjacencies with the cement and building materials producer's existing businesses and associate companies.
Parent company Aditya Birla's chair Kumar Mangalam Birla said "The building materials segment presents a huge scalable business opportunity with a proven path to profitability. With this foray, Grasim will be able to leverage the large business-to-business ecosystem within the Aditya Birla Group."
Ramayapatnam Port construction begins
20 July 2022India: Andhra Pradesh Chief Minister Yeduguri Sandinti Jagan Mohan Reddy has laid the foundation stone for the upcoming Ramayapatnam Port in his state's Nellore district. Phase 1 of the port's construction will cost US$467m and is due to conclude in July 2025. The Hans India newspaper has reported that the new 25Mt/yr-capacity port will ship cement and other goods from four berths. Phase 2 of construction will subsequently increase the number of berths to 15, with a total export capacity of 139Mt/yr.