Displaying items by tag: Government

US: The Portland Cement Association (PCA) has voiced its concerns over the Environmental Protection Agency (EPA)'s newly finalised standard for particulate matter 2.5 (PM2.5). The new standard reduces the level of particulate matter below 2.5μm diameter permitted in flue gas emissions to 9μg/m³ from 12μg/m³. The PCA says that it is concerned that the new rule may restrict US cement producers’ operations and ‘further complicate’ their efforts to achieve net zero emissions by 2050.

President and CEO Mike Ireland said “This new rule strikes at the heart of the US cement industry's ability to deliver on the Biden Administration's infrastructure goals, as it would lead to fewer hours of operation at plants, which would mean layoffs, as well as less American cement and concrete at a time when the country needs more.” He added “The previous EPA standard on particulate matter emissions — arrived at by government officials working with industry — significantly drove down those emissions by 37% over the last 20 years. This downward trend would have continued without the new standard imposed."

However, EPA administrator Michael Stanley Regan said that the updated standard will prevent 4500 premature deaths and 290,000 lost workdays annually by 2032. Regan said “We do not have to sacrifice people to have a prosperous and booming economy.”

EU: Cemex has welcomed the European Commission's Carbon Management Strategy, its new policy approach to industrial CO₂ emissions reduction. The approach highlights the storage of biogenic CO₂ and the development of CO₂ transport infrastructure as major strategic paths. Cemex said that it will assist in the design and implementation of actions under the Carbon Management Strategy. In its European cement operations, Cemex reduced its CO₂ intensity by 45% in 2023 compared to 1990 levels, and aims to achieve a 55% reduction by 2030. The producer called for ‘the completion of the policy landscape’ in complement to the industry’s on-going efforts towards full decarbonisation.

Cemex Europe, Middle East and Africa director communications, public affairs and social impact Martin Casey said “The strategy is comprehensive and outlines relevant fields of action, but what is essential now is a timely implementation. For companies to move forward, the regulatory framework regarding carbon capture and utilisation or storage, along with carbon accounting and removals, must be completed as a matter of the utmost urgency. The cement plant of 2030 is planned and designed today.”

Nepal: Hetauda Cement Industry has resumed cement production after a three-month cessation since late 2023. The company stopped making cement due to coal shortages, according to the República newspaper. General manager Basant Raj Pandey said that future stoppages were now unlikely, as the company had secured a regular supply of coal. The company is also conducting negotiations with the Ministry of Industry, Commerce and Supplies to install new equipment and provide subsidies for the purchase of raw materials such as coal.

India: The National Company Law Tribunal has initiated a corporate insolvency resolution process for Vadraj Cement. The former cement producer defaulted on US$10.5m in debts owed to Punjab National Bank. Mint News has reported that Vadraj Cement has total debts of US$843m.

Kyrgyzstan: The state-owned Bishkek heat and power plant has secured a US$437,000 contract to supply its waste ash and slag to two cement plants in Kemin, Chüy Region. The cement producers party to the contract will be responsible for extraction and transport, commencing in August 2024.

The Bishkek heat and power plant has previously invested US$280,000 in clearing its waste dump. The government says that it has also received interest from a China-based autoclave aerated concrete blocks producer in its waste.

Spain: Cementos Portland Valderrivas' Alcalá de Guadaíra plant has secured environmental clearance to use more alternative raw materials and alternative fuels (AF) in its cement production.

The company said "This achievement is a further boost to our sustainable work practices, respecting the environment and contributing to combatting climate change."

US: Portland Cement Association (PCA) chief economist and senior vice president of market intelligence Ed Sullivan forecast a recovery of the US economy in the second half of 2024 at the World of Concrete conference in Las Vegas, Nevada. However, Sullivan told attendees that the economy will ‘gradually weaken’ in the first half of the year. The anticipated weakening is compounded by the end of Covid-19 relief programmes, delayed monetary policy effects and credit tightening. Supporting growth throughout the year are some of the US$550bn infrastructure investments under the Infrastructure Investment and Jobs Act. The US government says that 40,000 new projects under the act are either in progress or completed.

Ed Sullivan said "In terms of the construction outlook, there will be a battle between interest sensitive construction sectors and less interest sensitive construction activity such as infrastructure spending and the construction of large manufacturing plants associated with the CHIPS and Science Act."

It has been a busy week for carbon capture in the cement sector with Global Cement covering five stories. However, increasingly, the topic has become a regular feature in the press as the industry bends to the demands of the carbon agenda. This week’s selection is notable because three of the stories cover North America.

Holcim US announced that it is working with Ohio State University and GTI Energy to design, build and test engineering-scale membrane carbon capture technology at the Holly Hill cement plant in South Carolina. The information builds on an earlier release from the US Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) in late December 2023 about the project. It has a total budget of US$9m, with US$7m supplied by the DOE. It plans to build a 3t/day CO₂ capture unit that uses a method intended to retain 95 - 99% of CO₂ from cement kiln gas with a purity exceeding 95%. The new information at this stage is that GTI Energy is involved. Specifically, it will support the development of the pilot skid for site deployment.

The other two stories from North America are worth noting because they both concern commercial equipment or technology suppliers joining up to work together. First, 10 companies - Biomason, Blue Planet Systems, Brimstone, CarbonBuilt, Chement, Fortera, Minus Materials, Queens Carbon, Sublime Systems, and Terra CO₂ - announced they were launching the Decarbonized Cement and Concrete Alliance (DC2). The group’s principal aim is to lobby the US government toward using new low-carbon cement and concrete products in public infrastructure. It also intends to look at advocacy and public sector engagement including expanded tax credits, development of standards for novel cements, consistent ecolabeling and accounting, and customer demand support. DC2 was formally launched in January 2024 but it follows previous work by the companies in the area. The other related story was a memorandum of understanding that Aker Carbon Capture and MAN Energy Solutions have also signed this week to jointly pursue opportunities related to carbon capture, utilisation and storage (CCUS) and CO₂ compression in the North American market. These two companies have worked on the full-scale CCUS unit at Norcem’s Brevik cement plant, which is due to be commissioned later in 2024. They are likely intending to capitalise on the publicity that is likely to be generated once it officially starts up.

Back in North America the DC2 Alliance noted in its press release the DOE’s release of its Pathways to Commercial Liftoff: Low-Carbon Cement report in September 2023. Although it is similar to many other varied sector roadmaps, including the Portland Cement Association’s Road to Net Zero that was released in 2021, this document is well worth reading due to its details and local market context. The headline figure, for example, is that following a set of pathways to fully decarbonise the US cement industry would cost US$60 - 120bn by 2050. Doing so would involve reducing the clinker factor, improving energy efficiency, increased use of alternative fuels, using CCUS, using alternative feedstocks and adopting alternatives to traditional cement production methods.

Graph 1: US active cement kilns by capacity and age. Source: PCA survey data used in Department of Energy Pathways to Commercial Liftoff: Low-Carbon Cement report.

One other interesting tidbit to consider from the report is an analysis of the age of the US cement sector’s kilns versus their production capacity as shown in Graph 1 above. The largest 10 kilns in the country account for 22% of the country’s total capacity and these were all built after 2000. Then, the next 44% of the national capacity comes from 38 kilns out of a total of 120 kilns at 98 cement plants. The report itself does not make this assertion but the implication is that retrofitting CCUS units at one third of the country’s clinker lines would capture the CO2 being emitted from two-thirds of the sector’s production capacity. This is not to say that this could actually work technically, logistically or economically. Yet seeing the scale of the challenge presented in this way is fascinating and one starts to have thoughts about how a retrofit roll-out of CCUS units might actually be approached.

Whether the cement sector adopts CCUS at scale remains to be seen but demonstration projects are definitely coming in both Europe and North America. The DOE report from September 2023 suggests that decarbonisation will cost a lot of money. No surprises there and, as ever, there is rather less detail on who will actually pay for this. One thing that might help here, that the DOE report mentions frequently, is the 45Q carbon capture tax credit scheme, which was introduced by the Trump administration in 2020. Regardless of the potential bill for consumers of cement though, the suppliers are clearly taking note of the investment potential as evidenced by all the non-cement plant CCUS news stories this week.

The 1st Global CemCCUS Conference will take place 13 - 15 May 2024 in Norway and it will include a plant tour of the Norcem Brevik cement plant and CCS project

China: The Ministry of Environment and Ecology has enacted new requirements for ultra-low emissions clinker production in the Chinese cement industry. OPIS News Alerts has reported that 50% of clinker production capacity (850Mt/yr) must conform with the standard by 2025, rising to 80% by 2028. The standard encompasses the whole value chain, from raw materials production to transport of the finished product. The ministry expects the regulations, together with similar ones for the coking sector, to reduce domestic CO₂ emissions by 10Mt/yr. In the cement sector, the new requirements will intersect with upcoming emissions trading scheme (ETS), which is expected to come online by 2025.

The Ministry of Environment and Ecology said “Oversupply and a persistent demand lull has resulted in declining profit and lower operating rates for the cement industry in China for the past three years. Setting up low emission standards and providing policy incentives for production with higher efficiency and lower environmental impact will help promote green transformation within the industry, while driving out inefficient capacities.”

South Africa: Mining and materials company Afrimat says that further regulatory conditions as part of its ongoing acquisition of Lafarge South Africa have been met. The Minister of Mineral Resources and Energy of South Africa has consented in terms of the Mineral and Petroleum Resources Development Act, the Financial Surveillance Department of the South African Reserve Bank has approved the acquisition in terms of the Exchange Control Regulations and the respective Competition Authorities in Botswana and eSwatini have approved the implementation of the acquisition. Approval by the Competition Commission is still outstanding but it recommended the transaction to the Competition Tribunal in November 2023. However, the Competition Commission highlighted ‘horizontal overlaps’ in the aggregates and ready-mix concrete sectors and recommended that the parties be required to divest assets across the affected sectors.

Afrimat first announced in June 2023 that it had agreed a share purchase agreement with a Holcim Group subsidiary, Caricement, to acquire 100% of the issued share capital of Lafarge South Africa. The proposed acquisition will become unconditional and be implemented once approval by the Competition Tribunal has been obtained.