Displaying items by tag: Plant

Cuba: Corporación Cementos Cubanos’ Siguaney plant is supplying oil well cement products for Empresa de Perforación y Reparación de Pozos de Petróleo y Gas (EMPERCAP) and Australia-based Melbana. It has contracts to supply around 300t to both companies for local projects, according to the Prensa Latina news agency. It is also supplying PP-25 and P-35 types of oil well cement to the government.

US: Holcim US has joined the Department of Energy's (DOE) 'Better Climate Challenge' to reduce CO₂ emissions and save energy. It is the first cement producer to commit to the DOE program. The subsidiary of Switzerland-based Holcim plans to power the electrical operations at 13 cement plants in the country with 100% renewable energy by 2030 and to reach net zero CO₂ emissions by 2050. As part of the 'Better Climate Challenge' it has committed to reduce CO₂ emissions in the US by at least 25% by 2033.

Examples of current renewable power usage at Holcim US cement plants include the installation of three onsite wind turbines at the Paulding plant in Ohio that generate 11,500MWh while a forthcoming solar unit at the Hagerstown plant in Maryland will generate up to 18,440MWh. All 13 Holcim cement plants will conduct reviews to identify projects that could contribute to meeting goals of the challenge.

With grant support from the DOE, Holcim is also investigating the feasibility of using carbon capture utilisation and storage (CCUS) at its cement plants in Portland, Colorado, and Ste. Genevieve, Missouri. In addition to involvement in the Better Climate Challenge, Holcim US is a continuing partner of the DOE's 'Better Plants Challenge', sharing facility-level energy data and solutions to help guide other industrial companies with implementing energy solutions in their facilities.

France: Ciments Calcia has announced an investment of Euro86m to further decarbonise cement production at its integrated Beaucaire plant. The subsidiary of Germany-based Heidelberg Materials has allocated a total of Euro600m towards reducing CO₂ emissions from all of its operations in the country in response to a government initiative, according to The Tribune newspaper.

The current funding follows a spend of just under Euro7m on upgrades at the site, including installing a new clinker cooler that will allow for greater recovery of waste heat, and the addition of a new computer control system. Following this work, the single production line plant was restarted in early April 2023.

The next stage of investment has started with a feasibility study. If successful, a tendering process could start in the second half of 2023 with work planned to start in 2025. The company intends to renovate the plant’s electricity network, modernise the production line with a preheater and a pre-crusher and make further changes to target an alternative fuels thermal substitution rate of 75%. A third stage, involving carbon capture and utilisation and/or storage, is tentatively planned to start in 2030.

Türkiye: Ahmet Eren, the chair of Eren Holding, says that its Medcem Çimento subsidiary will double its cement production capacity to 7Mt/yr in 2024. Eren made the comments in an interview amongst revealing investment plans, in other sectors, according to Bloomberg. Medcem Çimento selected Sintek Group to build a new 9000t/day production line at its integrated Mersin plant in late 2021. Germany-based Aumund was also reported in 2022 to be supplying equipment for the project.

Portugal: The first batch of clinker has been manufactured on the new upgraded production line at Secil’s Outão plant. Construction and start-up teams from ThyssenKrupp Polysius reached the milestone in mid-April 2023 after a heating period of 72 hours. Germany-based ThyssenKrupp Industrial Solutions was appointed by Secil to work on the Clean Cement Line project in 2020. It said it was going to modify the existing rotary kiln and preheater tower, install a new calciner and add a new grate cooler. Once finished it will produce Portland limestone cement (PLC). It is scheduled for commissioning in mid-2023.

Italy-based CTP Team was contracted in mid-2020 to supply and install a 29MW waste heat recovery (WHR) unit for the project. It planned to use an organic rankine cycle (ORC) unit using a 7.2MW turbine supplied by Turboden.

Italy-based Bedeschi also revealed in early April 2023 that it was in the cold commissioning phase for a new pipe conveyor at the plant to handle different kinds of alternative fuels. The conveyor has a diameter of 250mm and conveying length of 350m and will transport alternative fuels at a rate of 300m³/hr.

Kenya: Savannah Clinker, an associate company of Savannah Cement, has raised around US$480m to build a new integrated cement plant in Kitui county. It said it generated the funding through a privately placed debt arrangement with the bond set to be listed at regulated international exchange, according to the Business Daily newspaper.

Benson Ndeta, chairman of Savannah Cement Group, said “I am extremely proud to have the support of a major international investor who shares our vision and beliefs in what is required to deliver the growth and development of our key infrastructure and affordable housing.”

It was announced in December 2022 that China-based Sinoma International Engineering had been contracted to build the 2.92Mt/yr plant with a completion date planned for late 2024.

Ireland/UK: A six-month feasibility study conducted by Mannok at its Derrylin plant, in conjunction with Catagen, has found a number of ways that the cement producer can reduce its CO₂ emissions. Using Catagen’s HGEN renewable hydrogen generator with waste heat recovery could potentially decrease the cement plant’s annual CO₂ emissions by 7%. In addition the study found that using biohydrogen generation from waste biomass could generate larger volumes of hydrogen with less renewable energy required, compared to electrolytic hydrogen generation. Using Catagen’s BIOHGEN process in this way could minimise carbon intensity by a further 18%. A combined group of engineers from Mannok and Catagen worked on the project.

Kevin Lunney, operations director at Mannok, said “We are very excited to be working with the Catagen team, who have demonstrated a deep level of technical ability and competency during the feasibility work. I have no doubt that Mannok will derive significant value from the work already completed, with many new opportunities for collaboration now presenting that we would not have considered before. Achieving Net Zero is now the primary goal for our business and I expect Catagen will play a significant role in our achieving that goal, which we expect will have major benefits for the sector overall.”

In early April 2023 Mannok revealed that it had secured funding from the UK Government Green Energy Scheme to support its energy transformation programme. The first phase of the initiative, which the funding will support, is the generation of onsite green hydrogen to replace the use of diesel in over 70% of the company’s 150 heavy-goods truck fleet.

Belfast-based Catagen started as a testing company providing emissions data to the automotive sector. It has started working in other industrial sectors - such as cement, glass and steel in Europe and the US – as part of its ClimaHtech product range.

Mongolia: L Naranbaatar, the head of Khutul Cement and Lime, has responded to a strike at the company by outlining changes made since it was nationalised in 2022. Workers are protesting with demands to add wage incentives and to appoint managers from within the company, according to the UB Post newspaper. They have also alleged that the company is spending its budget illegally.

During a press conference Naranbaatar explained that the company produced 403,000t of cement in 2022, an increase from 2021. It reported a profit of US$3.3m in 2022, the first time it had made a profit in the last decade. However, the producer’s wage bill nearly doubled to just below US$6m in 2022. The company also spent US$2.25m on upgrades to the plant in 2022, the first such investment made in five years, compared to US$171,000 spent on maintenance in 2021.

Former economist L Naranbaatar was appointed as the head of Khutul Cement and Lime in March 2022. The company was transferred to the Development Bank of Mongolia when the heir of the previous owners refused to accept the inheritance.

Ethiopia: China-based Sinoma International Engineering has signed an agreement with National West International Holding (WIH) Building Materials to build an industrial park development project at Dire Dawa. The project has an investment of US$600m and will include a 6000t/day cement plant and a 1000t/day lime unit, according to the Xinhua News Agency. The proposed industrial park is relatively close to the Port of Djibouti, in neighbouring Djibouti, to allow for access to raw materials and potential export markets.

WIH, a joint-venture between companies based in Ethiopia and China, already operates a cement plant at Lemi in Amhara Region.

Huaxin Cement completed its acquisition of a majority stake in Oman Cement this week. The China-based company estimated that the purchase price was around US$193m. Following the transaction with a subsidiary of the Oman Investment Authority, the country’s sovereign wealth fund, the cement producer now controls just under a 60% share in Oman Cement.

A key part of the deal includes Oman Cement’s integrated plant at Ruwi in the north of the country. The three-line unit has clinker and cement production capacities of 2.6Mt/yr and 3.6Mt/yr respectively. With the partial ownership share of 60% taken into account, this places the capacity purchase price at around US$124/t, a lower figure for capacity compared to other international acquisitions.

Oman Cement has a couple of new projects in the pipeline that have been mentioned on and off previously over the last year or so. These include the construction of a new 10,000t/day fourth production line, an upgrade to line 3 to 4000t/day from 3000t/day at present and plans for a new plant at the Special Economic Zone (SEZ) at Duqm. The company said it was looking for a contractor to carry out the upgrades at the Ruwi plant. However, Rashid bin Sultan al Hashmi, the chair of Oman Cement, said in the company’s annual results for 2022 that the Duqm project, operating under the name Al Sahawa Cement, had run into problems with the supply of gas for the proposed unit. Another recent development was the signing of a deal between Omani Environment Services Holding Company (Be’ah) and Oman Cement for the supply of refuse-derived fuel (RDF). As an aside, that last one may also have received a boost this week with the news that the local Environment Authority has suspended licenses for the export of used tyres from the country.

How these existing projects will fare under the new ownership remains to be seen, but Huaxin Cement has a track record for developing new cement production capacity outside of China. The cement producer describes itself as de-facto controlled by Switzerland-based Holcim although Holcim said in its annual report for 2022 that Huaxin Cement is a joint-venture. It currently operates plants in Cambodia, Kyrgyzstan, Malawi, Nepal, Tajikistan, Tanzania, Uzbekistan and Zambia and says that it has 10 additional projects in Africa, the Middle East and elsewhere in preparation for future business expansion. In 2022 it started operating a 3000t/day production line at Nepal Narayani and commenced the second stage of a project to build a 4000t/day clinker line at Maweni in Tanzania. Plus, as mentioned in our recent roundup of China-based producers, 13% of the group’s operating revenue derived from business outside of China in 2022 compared to 8% in 2021.

Other producers from outside of Oman have also been active locally in 2023. In late January 2023 India-based UltraTech Cement agreed a deal to buy a 70% stake in Duqm Cement Project International from Seven Seas for US$2.25m. The agreement covered a limestone mining lease that UltraTech Cement said was important for “raw material security.”

The other big development in the Oman cement market since we last covered the country in September 2021 was an intervention by the Capital Market Authority (CMA) on Raysut Cement. The chief financial officer resigned in November 2022 before the CMA questioned the company’s financial results for the second quarter of 2022. The CMA then replaced the board of Raysut Cement in December 2022 saying it had detected ‘material misrepresentation’ in the company’s third quarter results.

The last four months or so have marked a turning point for the local cement sector with a change in leadership for the two largest producers. Oman Cement reported strong growth in 2022 although it warned of “low priced cement being supplied by competitors.” Raysut Cement, unsurprisingly, recorded a loss in 2022. The construction market in the country is expected to grow as the economy leaves the coronavirus period behind, mounting energy prices boost national revenue and potentially some of this heads into infrastructure development. This puts the new management at both producers in a good position going forward.