Displaying items by tag: Holcim

Nigeria: Lafarge Africa has appointed Chinedu Richard as its acting Chief Financial Officer.

Richard has worked for Lafarge Africa for over 10 years in a variety of financial roles. Most recently he held the position of Head of Finance Planning & Analysis. Prior to working for Lafarge Africa he was a Financial Analyst for Dangote Cement. He has also worked for Oando.

Richard is a graduate of pharmacy from the University of Lagos and holds a masters degree in business administration (MBA) from Lagos Business School. He is also a member of the Chartered Institute of Management Accountants (CIMA).

Philippines: Holcim Philippines and Sungshin Cement have signed a memorandum of understanding whereby Holcim Philippines will be priority supplier of cement for use in Sungshin Cement's ready-mix concrete operations in the Philippines, InPR News has reported. South Korea-based Sungshin is anticipating growing demand from infrastructure projects, partly due to a US$3bn development loan agreement between the government of the Philippines and South Korea.

Philippines: Holderfin, an existing 18% shareholder in Holcim Philippines, has acquired an additional 9.2% stake in the company from Japan-based Sumitomo Osaka Cement. This raises its control over Holcim Philippines to more than 27%. As a result of the deal, the proportion of publicly held shares in the cement producer fell to 5%. PhilStar News has reported that Holcim Philippines is now possibly seeking to delist from the Philippine Stock Exchange (PSE).

The producer said “Holderfin informed the company that if the company will be unable to issue additional shares to the public sufficient to raise its public float to the required level, Holderfin is prepared to make a tender offer for all outstanding common shares of the company held by the public with the aim of subsequently conducting a voluntary delisting of the company’s common shares from the Main Board of the PSE.”

Cemex highlighted its Clyngas project at its Alicante cement plant in Spain this week. The project will produce synthesis gas (syngas) from different types of waste for direct injection into the burner at the plant during the combustion process. It is being run in conjunction with Waste to Energy Advanced Solutions (WTEnergy), a company that Cemex invested in at the end of 2022. It is also receiving Euro4.4m in funding from the European Commission (EC) as part of its innovation fund for small scale projects. The initiative estimates that it will save over 400,000t of equivalent CO₂ during the first 10 years of the project's life by replacing petroleum coke with syngas.

Clyngas is another example of Cemex’s innovation with alternative fuels for cement and lime. It follows on from the group’s work with hydrogen injection into cement kilns. As presented at the 15th Global CemFuels Conference 2022 it has been using hydrogen in low volumes as a combustion enhancer in more than 20 plants worldwide. However, it was also looking into using hydrogen more directly as a fuel and as a feedstock for other alternative fuels. WTEnergy’s gasification process could potentially link up to this as it converts waste streams such as wood chips, agricultural waste, refuse derived fuel (RDF), solid recovered fuel (SRF), dry sewage sludge, meat and bone meal, poultry litter and plastics into syngas. WTEnergy then proposes that its gasification process and/or the syngas can be used for power generation and thermal applications. In the case of the Clyngas project it will be the latter, as the gasification process will be used to boost the burnability characteristics of RDF with a high biomass content. One part of this to note is that the syngas can potentially be used to manufacture hydrogen. This would be a useful capability for a cement company, for example, that was already using alternative fuels and was now considering further decarbonisation by switching to using hydrogen.

A few other cement companies have been looking at synthetic fuels too, but this has generally been as a by-product of carbon capture and utilisation. This week Lafarge France, for example, said it had signed a memorandum of understanding with Axens, EDF and IFP Energies Nouvelles for a synthetic fuel production trial. Its plan is to build a unit that will produce synthetic kerosene using captured CO₂ from a carbon capture installation at Lafarge France's Saint-Pierre-La-Cour cement plant. The kerosene will then be sold to airlines. Other examples of cement companies looking at using captured CO₂ to manufacture synthetic fuels include Finnsementti’s pre-engineering study with Aker Carbon Capture to consider producing methanol as a fuel for transport, Holcim’s and TotalEnergies’ various plans of what to do with the CO₂ captured from the-to-be upgraded Obourg cement plant and Cemex Deutschland’s ambitions for its Rüdersdorf plant.

As can be seen above there are different types of synthetic fuels and cement companies are at the research and pilot stages. Although there isn’t a commonly accepted definition of what a synthetic fuel is, the general meaning is that of a fuel made from feedstock using a chemical reaction as opposed to, say, a refining process. The wide variety of potential synthetic fuels puts the confusion over the different types of hydrogen into perspective. However, this may be a problem for a later date if usage by cement companies becomes more serious.

What is a problem, though, has been the EC’s planned legislation to phase out the use of industrial CO₂ in synthetic fuels by 2041. Cembureau, the European cement industry association, warned in late 2022 of the issues this would pose for industries trying to find a way to utilise their CO₂ emissions where storage was too difficult or expensive. Its view was that while synthetic fuels using industrial CO₂ are not fully net-zero, as the captured CO₂ is later released into the atmosphere, it is a necessary short to medium term step for sectors trying to make the transition. Companies trying to build industrial-scale chemical plants for synthetic fuels need running periods of 20 to 30 years to achieve payback. As of March 2023 Cembureau was still concerned about the implication of proposed regulations, specifically with regards to the proposed criteria for which synthetic fuels could be used, based on their greenhouse gas emissions savings (at least 70% compared to the regular fuels being replaced). It directly linked this to synthetic fuels projects being launched by the cement sector that might be adversely affected by the new rules. The EC published the legislation in late June 2023 and it is set to become legal in mid-July 2023.

Using synthetic fuels either as a fuel or a by-product from cement production is an area of interest currently with the projects detailed above and others in progress. One vision for their use in Europe, at least, is that they might offer a route for carbon capture for cement plants without access to the logistic networks necessary for sequestration. Whether they find a place in cement manufacture either on a transitional basis or over a longer term should become clearer over the coming decade. Yet the EC’s new rules are likely to slow this process down as at least some of the planned pilots may become unviable in Europe. Other jurisdictions around the world take note.

UK: Aggregates Industries has appointed Pete Hollingworth as the managing director of its Concrete Products business. He has spent over 25 years working in the construction industry to date, holding various commercial and managerial positions across the flat roofing, structural waterproofing and flooring industries. Most recently, he was the head of business support in the Europe, the Middle East and Africa region for Sika.

Nigeria: Lafarge Africa has launched the Eco Label brand, as part of its wider UniCem brand, to promote its sustainable products. Products within the new branding have a lower 30% carbon footprint compared to the local industry standard. The formal unveiling of the new branding took place at the Mfamosing cement plant in Calabar.

Khaled El Dokani, the chief executive officer of Lafarge Africa, said “Lafarge Africa is proud to be the first local cement manufacturer of eco-friendly cement to the Nigerian market. With the rollout of this Eco brand, we are accelerating the transition to more sustainable building materials for greener construction.”

Russia: Cementum is preparing to upgrade the grinding capacity at its integrated Ferzikovo cement plant in Kaluga region. The US$40m project will add 0.3Mt/yr of grinding capacity to the plant. Other planned developments include building a dry building materials unit and a concrete plant. Maxim Goncharov, the general director of Cementum and Vitaly Bogachenko, the Director of Corporate Relations and Sustainable Development of Cementum, met with Vladislav Shapsha, the governor of the Kaluga Region, in mid-June 2023 at the St Petersburg International Economic Forum to discuss development in the region. Holcim’s divested Russian business rebranded as Cementum in early 2023.

France: Lafarge France has signed a memorandum of understanding with green hydrocarbons specialist Axens, utilities provider EDF and research firm IFP Energies Nouvelles for a synthetic fuel production trial. The partners will build a plant to produce kerosene using captured CO₂ from a carbon capture installation at Lafarge France's Saint-Pierre-La-Cour cement plant. The project, called Take Kair, aims to produce fuel for use by aviation companies, including Air France-KLM Group.

Holcim France president François Petry said "The decarbonisation of our processes and products is at the heart of our strategic commitment to reach Net Zero by 2050. Beyond the modernisation of our production tools, we work on all industrial and technological levers to reduce our emissions, and thus decarbonise our industry. With the Take Kair project, we are taking a decisive step in the capture and management of our residual CO₂ emissions and participate with our partners in the emergence of an innovative and sustainable sector serving the country's mobility needs."

Lafarge France, a subsidiary of Switzerland-based Holcim, announced a Euro40m investment in the 1.6Mt/yr Saint-Pierre-La-Cour cement plant to achieve carbon neutral cement production there in March 2022.

Mining and materials company Afrimat said it was buying Lafarge South Africa this week. The assets it is acquiring include aggregate quarries, ready mix concrete (RMX) batching plants, one integrated cement plant, two cement grinding plants, cement terminals and fly-ash sources. The means of purchase is somewhat unusual, as Afrimat is paying around US$6m but it also appears to be taking responsibility for around US$50m of outstanding debt that Lafarge South Africa owes its parent company, Holcim. In a statement Afrimat’s chief executive officer (CEO) Andries van Heerden talked up the benefits for his company in terms of the boost to its aggregates and concrete businesses.

This is quite the change from 2012 when India-based Aditya Birla Group was reportedly looking into buying Lafarge South Africa. At this time the value for the business for a similar mix of assets, including 55 RMX plants and 20 quarries, was said to be to US$900m. Prior to this, Lafarge South Africa spent around US$170m in the late 2000s on increasing the production capacity at its integrated Lichtenburg plant and building its Randfontein grinding plant. Then in 2014, when the merger between Lafarge and Holcim was announced, Lafarge consolidated its Nigeria-based and South Africa-based operations as Lafarge Africa. It later decided to move the South African business to another Holcim subsidiary, Caricement, in 2019 to keep the business in Nigeria more profitable by reducing its debts. This transaction was valued at US$317m. At the time chair Mobolaji Balogun said that Lafarge South Africa’s operations had faced a challenging market in South Africa, with shrinking demand in an aggressively competitive sector. Afrimat is now buying Lafarge South Africa and its subsidiaries from Caricement.

Holcim isn’t alone in making an effort to sell up in South Africa. In April 2023 the Valor Econômico newspaper reported that Brazil-based InterCement was receiving offers for its remaining African-based assets in Mozambique and South Africa with a potential deal valued at around US$300m. InterCement runs Natal Portland Cement in South Africa, which operates one integrated plant and two grinding units. This follows the sale of its Egypt-based assets in January 2023 to an unnamed buyer.

PPC, the country’s largest cement producer, is staying put. However, it issued a mixed trading update this week ahead of the formal release of its annual results to 31 March 2023. Trading conditions in the interior of South Africa and Botswana were described as being ‘difficult,’ with cement sales volumes down by nearly 6% year-on-year and earnings before interest, taxation, depreciation and amortisation (EBITDA) down by 26%. Yet the group says it was able to grow its revenue. PPC’s CEO Roland van Wijnen added, “We therefore remain hopeful that the South African government will roll out its infrastructure development plans and protect the local cement market through the introduction of import tariffs to create a level playing field for domestic producers.” Dangote Cement subsidiary Sephaku Cement was more circumspect in its recent trading update but it too warned that, “deteriorating economic conditions and persistent challenges in the cement industry impacted Sephaku Cement’s financial performance to break-even levels.”

Much of the above makes for gloomy reading. As the local trade association Cement and Concrete South Africa (CCSA) has laid out to local media, the market faces the problem of having 20Mt/yr of production capacity, 12Mt/yr of demand and over 1Mt/yr of imports compounding the problem. Lobbying by local producers against imports has been a feature of the market since the early 2010s and this work continues through the efforts of the CCSA and others. However, the plea by PPC for government infrastructure spending suggests that the market faces more systemic problems. As a consequence some cement producers are trying to leave the market, while others are attempting to tough it out.

US: Holcim US has announced plans for a 25MW solar power plant to serve 75% of the electricity needs of its Alpena cement plant in Michigan. The company says that the installation at the Alpena plant will be the largest in the US Midwest Region. Holcim US chose NorthStar Clean Energy to build the array, which it says will eliminate 25,000t/yr of CO₂ emissions.

Other planned projects at the Alpena cement plant include an upgrade to the plant's dock in order to accommodate larger vessels and reduce the number of trips in its Great Lakes transport operations.

Holcim US' senior vice president, manufacturing, Michael Nixon said “As Holcim is showing in Alpena, the path to net-zero carbon emissions requires a blend of proactive solutions. Whether it’s using alternative fuels or implementing renewable energy from solar power, we are committed to reducing our reliance on fossil fuels — a goal that will benefit the environment as a whole and the Alpena community we have called home for more than 115 years.”