Displaying items by tag: Schwenk Zement

Germany: Rock Tech Lithium has signed a memorandum of understanding with Schwenk Zement to utilise lithium production by-products from Rock Tech’s Guben converter for use in cement manufacturing at Schwenk's facilities. The primary objective of the partnership is to develop industrial applications for residues generated from Rock Tech's lithium-hydroxide production, specifically spodumene leach residues. During initial studies conducted by the Institute of Technologies and Economics of Lithium, the leach residues demonstrated potential as supplementary cementitious materials (SCMs) for use in cement manufacturing, offering benefits such as reduced carbon emissions and cost savings.

The partnership aims to process up to 200,000t/yr of by-products by 2029, with Schwenk planning investments in drying, grinding and storage facilities for the leach residues.

Johann Trenkwalder, member of the management board of Schwenk Germany, said "Ensuring the future supply of sufficient quantities of high-quality cement grinding materials is of great strategic importance for Schwenk. The leached spodumene concentrate produced during the operation of the planned converter in Guben represents an interesting and regionally-available source of SCMs."

Lithuania: Capsol Technologies has commenced its first CapsolGo demonstration campaign at the Akmenės Cementas plant in Lithuania, owned by Schwenk, to evaluate its carbon capture technology.

Schwenk plans to test Capsol’s technology at two cement plants, with a combined CO₂ capture potential of 1.5Mt/yr. Following the demonstration campaign at the Akmenės plant in Lithuania, the CapsolGo unit will be transferred to Schwenk’s Brocēni cement plant in Latvia, where a feasibility study was conducted in 2024.

Germany: Iberdrola Germany and Schwenk Zement have entered a long-term electricity supply agreement. Schwenk will receive 1500GWh from the Windanker offshore wind farm, currently under construction in the Baltic Sea. This supply will account for about 20% of Schwenk's electricity needs. The wind farm will have 21 turbines, each with a capacity of 15MW, and will cover an area of approximately 17.9 km², located 38km northeast of Rügen. The farm will be connected to the grid in 2026.

Germany: The European Cement Research Academy (ECRA) has elected Eric Bourdon as the chair of its Technical Advisory Committee. Hendrik Möller, Schwenk Deutschland and Samir Cairae, Titan Cement have also joined the organisation’s board of directors

Bourdon is the Deputy CEO, the Head of Industry and the Chief Climate Officer of Vicat. He joined the group in 2002 after working for thyssenkrupp Polysius. He is a graduate in engineering from the Ecole Nationale Supérieure d’Arts et Métiers in Paris.

ECRA was founded in 2003. It supports and shares research by the cement sector in Europe. It is steered by its technical committee. Bourdon will work with ECRA managing director Martin Schneider on strengthening its work in strategic areas, including CO₂ capture and related technologies, as well as grinding and kiln technologies.

Germany: Schwenk Zement will utilise Germany-based Orcan Energy's organic Rankine cycle (ORC) technology at its Allmendingen cement plant in Baden-Württemberg. The installation of five ORC modules aims to harness residual heat from the clinker cooling process to generate electricity, saving 8.5GWh/yr. Orcan Energy expects operations to begin in the first quarter of 2025. The company has previously worked with Dyckerhoff and Cemex.

Latvia/Lithuania: Capsol Technologies has won a contract to carry out two CapsolGo carbon capture demonstration campaigns at the Brocēni cement plant in Latvia and the Akmenės Cementas cement plant in Lithuania. Both plants are owned by Germany’s Schwenk Zement. Following a feasibility study earlier in 2024, the demonstrations will run from the fourth quarter of 2024 to the fourth quarter of 2025 and will showcase the CapsolEoP capture technology.

Philipp Staggat, chief product officer of Capsol Technologies, said "CapsolEoP offers lower energy consumption with higher CO₂ concentration than competitive technologies, and the capture cost for cement owners is reduced further as it doesn't require external steam supply. We are looking forward to demonstrating our technology on Schwenk's cement plants.”

CEO of Akmenės Cementas, Arturas Zaremba added "In collaboration with our clients and stakeholders, we are dedicated to addressing these challenges. The implementation of CapsolEoP technology at our Latvian and Lithuanian plants is a testament to our commitment, marking a significant stride towards the goal of capturing over 1.5Mt/yr of CO₂.”

Latvia: Schwenk Latvija plans to build a 750,000t/yr carbon capture system at its 2Mt/yr Brocēni cement plant. The producer has hired Norway-based Capsol Technologies to conduct a CapsolEoP carbon capture feasibility study at the plant. Schwenk Latvija is a member of the CCS Baltic Consortium, which achieved provisional inclusion on the European Commission’s list of Projects of Common Interest in November 2023.

Schwenk Northern Europe CEO Reinhold Schneider said “Checking the best carbon capture methods and how they can be integrated with our production process is a crucial task for us on the way to carbon neutrality, and likely the major investment direction for the coming decade. To that end, we are excited to investigate the energy consumption and the scale of equipment required for carbon capture at the Brocēni plant, if potentially partnering with Capsol for this challenge.”

Capsol Technologies CEO Jan Kielland said “We are excited to work with Schwenk, one of the most innovative building materials producers in Europe, which has constantly improved its processes to reduce emissions since operations started at the Brocēni plant’s new kiln line in 2010” He added “With this feasibility study, we are taking another step towards building a position as the preferred carbon capture technology provider for cement.”

Capsol’s project pipeline includes 10 large-scale cement projects in the sales engineering and engineering studies phase. The total CO₂ capture capacity of these projects is 11Mt/yr.

The Hungarian government recently enacted Emergency Decree 320/2023, taxing all CO₂ emissions from the country’s 40 or so largest industrial enterprises. The government used emergency powers to set up a new taxation scheme, which undercuts existing free allowances under the EU emissions trading scheme (ETS). The scheme additionally penalises the trade in ETS credits. Cement producers announced that the new regulations will make it impossible for them to keep operating.¹

With regard to Hungary’s six active cement plants, the scheme comprises:

1 – A Euro20/t tax on CO₂ emissions, effective retroactively from 1 January 2023, payable by any large enterprise that uses EU Emissions Trading Scheme (ETS) free allowances to cover the majority of its CO₂ emissions. Plants that decrease their production, or that carry on non-CO₂-emitting activities at over 10% of their operations, will pay a higher rate of Euro40/t of CO₂.

2 – A 10% transaction fee for the sale of free allocations under the EU ETS, payable to the Hungarian Climate Protection Authority.

Less than three years ahead of full implementation of the EU carbon border adjustment mechanism (CBAM), the Hungarian government has seemingly moved unilaterally against cement production – this in a country surrounded by seven other cement-producing countries. Multiple foreign cement producers connected to the major market of Budapest by rail, river and road will be watching developments with interest. These include CRH, which, besides two smaller plants inside Hungary, operates the 800,000t/yr Cementáreň Turňa nad Bodvou plant, immediately over the border in Slovakia.

This comes at a time when the domestic cement industry is facing historically high costs and low demand, with a 30% year-on-year decline in construction activity in July 2023, following double-digit inflation throughout 2022 and the first half of 2023.

Catastrophising may be a common symptom of environmental regulation in industry associations, but one can understand on this occasion. The Hungarian cement and lime industry association, CeMBeton, backed its members’ gloomy announcement about their future with an estimate for extra annual taxes of ‘several billion forints’ (1bn forint = US$2.84m), in a statement following the decree. Assuming annual CO₂ emissions of 565kg/t across its 5.4Mt/yr cement capacity, the sector might expect to pay US$61m/yr in CO₂ rates alone.^{2, 3} According to analyst ClearBlue, the government will raise additional tax revenues worth US$278m/yr across all of the 40 aforementioned heavy emitters in Hungary.⁴

It may seem surprising that CeMBeton did not even draw up a projected tax bill during consultations over the new tax scheme – but, in fact, no such consultations took place. In its most recent statement, the association said “We do not know the government’s intentions.” Outside of official releases, Hungary’s cement producers have not always been so reserved about the government’s perceived aim.

Global Cement reported in April 2023 that the Hungarian government was allegedly interfering in the cement sector to make producers sell up – as per accusations by an anonymous industry executive.⁵ There is arguably a course of action on the government’s part which, more or less, appears consistent with this aim:

October 2020 – The Hungarian Competition Authority (GVH) starts competition supervision proceedings against CRH, Duna-Dráva Cement and Lafarge Cement Magyarország.

July 2021 – Emergency Decree 2021/404 imposes a 90% tax on producers’ ‘excess’ profits, based on threshold cement sales revenues of Euro56/t. Additionally, producers must report their exports.

September 2021 – GVH finds insufficient evidence to support the initiation of competition supervisory proceedings in the cement industry.

January 2023 – (Retroactive) entry into force of CO₂ emissions tax.

May 2023 – The government of Hungary reportedly initiates negotiations to acquire Duna Dráva Cement and Holcim Magyarország, according to the Hungarian builders’ association, National Professional Association of Construction Contractors (ÉVOSZ). Duna Dráva Cement owners Heidelberg Materials and Schwenk Zement state that they have entered into no such negotiations, while Holcim declines to comment.

July 2023 – The Act on Hungarian Architecture lets the government dictate producers' volumes and prices and require them to supply cement to National Building Materials Stores (a proposed state-owned construction materials retail monopoly).⁶ Additionally, the government gains a right of first refusal over the divestment of any asset by the cement industry’s foreign owners.

20 July 2023 – The government enacts Emergency Decree 320/2023. ETS transaction fees enter into force.

The government can now expect a legal challenge to its latest move. CeMBeton’s first ally may be the font of all emissions legislation – the EU itself. Within the EU ETS framework, tax rates are down to member states to determine. However, the introduction of a transaction fee may constitute an illegal restriction to free allowances, OPIS News has reported. The association has also indicated its readiness to mount a constitutional challenge, specifically with regard to the legislative retrofit involved in the CO₂ emissions tax. The Fundamental Law of Hungary does not generally permit legislation to apply retroactively, though how courts will balance this consideration against the rights of the government is untested.

The government amended the constitution to provide for new emergency powers, and subsequently adopted them in May 2022, in response to the ‘state of danger’ created by Russia’s war in Ukraine – though its actions on the international stage suggest careful neutrality, if not ambivalence. At home, the war has brought a consolidation of the government’s control over various areas of life, including the economy, according to Human Rights Watch.⁷

Climate protestors around the world might be glad to see governments wield emergency powers against their own heavy industries. In Hungary, however, the wider sustainability goals are not yet clear with regard to a policy that seems, at least partly, politically motivated.

References

1. CeMBeton, Sajtónyilatkozat, 21 August 2023, https://www.cembeton.hu/hirlevel/2023-08-21/202308-mozgalmas-osz-ele-nezunk/116/sajtonyilatkozat/668

2. Heidelberg Materials, ‘Energy and climate protection,’ 2022, https://www.heidelbergmaterials.com/en/energy-and-climate-protection

3. Global Cement, Global Cement Directory 2023, https://www.globalcement.com/directory

4. OPIS News, ‘Hungary's New Carbon Tax Unlikely to Set EU Precedent, Say Analysts,’ 16 August 2023

5. Global Cement, 'Update on Hungary,' April 2023, https://www.globalcement.com/news/item/15572-update-on-hungary-april-2023#:~:text=Heidelberg%20Materials'%20subsidiary%20Duna%2DDr%C3%A1va,the%20country's%20active%20national%20capacity.

6. Daily News Hungary, ‘Hungarian government’s new nationalising plan could violate EU law,’ 27 February 2023, https://dailynewshungary.com/hungarian-govts-new-nationalizing-plan-could-violate-eu-law/

7. Human Rights Watch, ‘Hungary’s New 'State of Danger',’ 8 June 2022, https://www.hrw.org/news/2022/06/08/hungarys-new-state-danger

Austria: Christine Gröll has taken over the role of head of material flow management and process control at Alpacem Zement Austria. The producer created the new role for Gröll, who will lead a dedicated team of eight people to achieve net zero CO₂ cement production at the company’s Wietersdorf cement plant by 2035. The team will focus on alternative raw materials and alternative fuel (AF) substitution.

Gröll is an Ulm University-trained chemist with over four years’ experience working within Alpacem Zement Austria. Prior to that, she worked as a research associate for Schwenk Zement in Germany, on the development of its Celitement hydraulic binder.

Alpacem Zement Austria’s technical director Florian Salzer said "It fills us with particular pride that we were able to fill the new department with talented employees from our own company. This clearly underlines the potential that exists in our team and emphasises the extensive expertise that we have built up. We are also pleased that the department management is in the competent hands of Christine Gröll, who brings an incomparable mix of research drive and practical experience.”

Lithuania: Akmenes Cementas has benefitted from a European Union (EU) ban on cement exports from Belarus in response to the Russian-led invasion of Ukraine in 2022. The subsidiary of Germany-based Schwenk Zement reported a profit of Euro16m in 2022, according to the Baltic News Service. This is its first recorded profit since 2013. Artūras Zaremba, the head of Akmenes Cementas, added that higher cement prices, further borrowing from its parent company and fixed electricity prices also helped it make a profit.

The company’s income grew by 53% year-on-year to Euro134m in 2022 from Euro87.5m in 2021. Its cement sales volumes increased by 6% to 1.5Mt and cement production rose by 8% to 1.1Mt. Around 1.1Mt of cement was sold domestically with the remainder exported to other countries within the EU. Cement sales are expected to fall in 2023 due to changes in the local market.