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Lafarge UK: sustainable to profitable?

24 October 2012

Lafarge UK's release of its 2011 Sustainability Report for its cement business this week presented some bold headline figures. Key statistics for the period covering 2009 - 2011 included a 17% reduction in CO2 emissions through the use of solid recovered fuels (SRF), a 17% reduction in the use of electricity and a 26% cut in emissions to air.

For a European producer this is some positive news in a time of gloom. Looking a little deeper into the report reveals the usual ambiguities that can arise with interpreting statistics. Lafarge UK's fossil fuel consumption actually rose by 9% from 285,000t in 2009 to 311,000t in 2011. CO2 emissions to air rose by 15% from 2.31Mt to 2.65Mt. In terms of emissions per tonne of Portland Cement Equivalent (tPCE), the figures are more encouraging with fossil fuel use decreasing from 87kg/tPCE to 82kg/tPCE (6%) and CO2 emissions remaining stable at 704kg/tPCE. These figures are good considering that Lafarge's production increased from 2009 to 2011 due to construction for the London 2012 Olympics.

As mentioned in Edwin A R Trout's article 'The British cement industry in 2011 and 2012' the move to refuse-derived fuels (RDF) has consistently made the news with projects at several Lafarge plants. RDF use at Lafarge UK plants rose by 48%, from 92,758t in 2009 to 137,143t in 2011. Each of the alternate fuels – tyres, waste-derived liquid fuel, processed sewage pellets (PSP), meat and bone meal, SRF – roughly increased its unit share per tonne of cement produced by 2%.

Lafarge UK is clearly reacting to uncertain input costs and preparing for any further future green taxes. It failed to meet its 2011 target rate for RDF substitution of 31% (it reached 29%) but it has raised the target to 35% for 2012. It is also continuing to secure permits for PSP use at its Dunbar plant and SRF use at its Hope plant, although by the time this is approved Hope may be someone else's facility. However, the key question is, how can Lafarge push alternate fuels? It will be interesting to see how much Lafarge UK's fuel mix can be reduced in cost over the next five years.

Published in Analysis
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Bertrand takes the reigns at Sagar Cements

24 October 2012

India: Sagar Cements has announced its director, Wemer CR Poot, has resigned from the board with effect from 28 September 2012. John Eric Fernand Pascal Cesar Bertrand has been appointed as the new company director from 17 October 2012.

Published in People
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