Displaying items by tag: Sustainability

LafargeHolcim took what appeared to be a surprising decision this week when it announced it was buying roofing and building envelope producer Firestone Building Products (FSBP). The deal raises eyebrows because it seems to be a departure from the building material producer’s previous dedication to its three major pillars: cement, aggregates and ready-mixed concrete. Yet, it follows the logic of sticking to safer markets both geographically and in terms of sustainability.

First some background. Originally, Global Cement was following the auction for FSBP via its sister publication Global Insulation. Reporting from Bloomberg in December 2020 focused on more obvious bidders such as Ireland-based insulation producer Kingspan and roofing products producer Standard Industries. However, Kingspan has been struggling publicly with fallout from the Grenfell Tower fire inquiry in the UK. Despite not formally supplying any of its products for the tower block in London, it has become embroiled in the allegations of a general culture of cheating safety tests for foam board-based insulation products. At the almost the same time that it dropped out of the FSBP bidding, its chief executive officer (CEO) Gene Murtagh apologised for ‘process shortcomings’ that had been highlighted by the ongoing inquiry. Make of this what you will. No word on why Standard Industries left proceedings but it also seems to part of a consortium trying to take over US-based chemical producer WR Grace. All of this is relevant because, from publicly-available sources, LafargeHolcim appeared to emerge out of nowhere to snaffle up FSBP. However, it seems ludicrous that a company with a revenue of around Euro25bn in 2019 could simply pull something like Euro2.8bn out of its pocket at the last minute. It’s likely it was quietly in the bidding process the whole time.

Back in the early 2010s Lafarge was busy selling off its major ‘non-core’ assets like its gypsum business in the wake of picking up debts from acquisitions like cement-producer Orascom in the Middle East. This then turned into a string of divestments following the merger with Holcim to try and shore up the business along with a general pivot towards concrete as the key end-product as sustainability concerns gathered pace. Producing cement remains a major part of LafargeHolcim’s business but a focus on the whole lifecycle of concrete is vital as a hedge against the high process emissions associated with making clinker. Cement factories run the risk of becoming so-called stranded assets depending on future government regulations.

In its acquisition statement LafargeHolcim played up the sustainability credentials of buying FSBP. It noted that up to 60% of buildings’ energy is lost through roofs and that FSBP’s products help to reduce this. Then it made the link that FSBP’s technologies and products complement LafargeHolcim’s sustainable building solutions like its ECOPact green concrete and its EcoLabel sustainable product range. Later, when LafargeHolcim CEO Jan Jenisch spoke to US broadcaster CNBC he described the move as a ‘perfect fit’ for his company’s goal, “to be the most sustainable and most innovative building materials supplier in the future.” The geographical point of the acquisition hasn’t been dwelt on as much as sustainability but no doubt buying a business based in the US with revenue of US$1.8bn is seen as being far safer than buying, say, a similar concern in East Asia.

Investing in a business that sells products that reduce energy loss in the building envelope follows the trend of the moving sustainability-related risk along the supply chain from cement to concrete and beyond. Ultimately consumers will have to pick up the true carbon price of their buildings, but if building materials producers buy more of the envelope they can spread this cost more thinly and hopefully build up the market in the process. One can also imagine it fitting with the mindset of CEO Jan Jenisch, the former boss of Sika, a company that sells speciality chemicals across a wide range of markets. The real test here is whether LafargeHolcim will buy more companies in the wider building materials sector or if other heavy building materials producers will copy them. If so then the days of heavy building material producers sticking to the three pillars of cement, aggregates and concrete may be numbered.

Spain: The Spanish cement association Oficemen has targeted a 43% emissions drop by 2030 across its entire value chain compared to 1990 levels. The objective has been published as part of the association’s sustainability roadmap to 2050. It is a tightening of the previous target of 27% by 2030. Oficemen intends to meet the tougher reduction by using the so-called 5C approach - clinker, cement, concrete, construction and built environment, and (re)carbonation – as detailed by Cembureau, the European Cement Association. Oficemen also revealed that it is working with the Spanish Technological Platform for CO₂ (PTECO₂) on identifying potential locations for storing captured CO₂. Hugo Morán, Secretary of State for the Environment, participated remotely with the launch event.

Oficemen also reports that Spanish cement consumption fell by 12% year-on-year to 12.2Mt in the first 11 months of 2020. Exports declined by 5%.

US: CalPortland has launched a new fleet of 24 compressed natural gas (CNG)-fuelled bulk hauler trucks. The company has also commissioned a CNG fuelling hub at its Oro Grande cement plant in California. Ozinga Energy installed the hub, which uses biogenic Redeem methane from organic and agricultural waste at its fast-fill station and 24 slow-fill stations. The producer says that Redeem will reduce CO₂ emissions per tonne of fuel burned by at least 70%. It predicted a total greenhouse gas emissions reduction of 10,000t/yr.

President and chief executive officer (CEO) Allen Hamblen said, “By adding 24 cement bulk hauler trucks and a fuelling centre at our Oro Grande cement plant, CalPortland continues to demonstrate our on-going commitment to achieving zero emissions through environmental stewardship and lowering our carbon footprint within the communities where we operate.”

Italy: Caltagirone Group subsidiary Cementir Holding has announced the upcoming launch of its FutureCem grey cement product on 1 January 2021. The company says that it has 30% lower CO₂ emissions than normal ordinary Portland cement (OPC). It developed the product in collaboration with its Denmark-based subsidiary Aalborg Portland using 35% limestone and calcined clay to replace clinker. This resulted in a much more sustainable, high grade cement according to the company. It added that the low carbon benefits of FutureCem have been achieved without compromising strength and quality.

Chief sales, marketing and commercial development officer Michele Di Marino said that FutureCem is a ‘giant step’ on the way towards more sustainable cement production. “This is immensely important if we are to achieve our sustainability goals at Cementir Group,” said Di Marino. “But it is also an important contribution to the green transition of the concrete and construction industries in general. Thanks to the efforts of our research and development department in Aalborg, we are ready to begin distributing the FutureCem technology in Denmark and soon other subsidiaries in Europe will follow.” He added, “We have reached an important milestone in our innovation and sustainability efforts, but we are not done. Currently, we are incorporating the technology into more cement types in our product range. This includes white cement, and we have already introduced two white ultra-high performance concrete (UHPC) premix types with FutureCem technology.”

Belgium: Carmeuse has signed a joint development agreement with France-based energy transition specialist ENGIE and John Cockerill for a carbon capture and utilisation (CCU) project in Wallonia. It will concentrate CO₂ from a new type of lime kiln and combine it with ‘green’ hydrogen to produce ‘e-methane.’ The hydrogen will be produced by a 75MW electrolyser plant powered by renewable electricity. The company said, “The produced e-methane will be suitable for injection into the national natural gas grid. This renewable e-methane can be used by industrial users or as an alternative fuel in the transport sector, thus allowing these sectors to decarbonise.”

Construction is due to begin in 2022 for commissioning of the installation in 2025. Its total investment cost is Euro150m. The partners have applied for funding from the EU Innovation Fund and Important Project of Common European Interest (IPCEI) fund. The project’s estimated CO₂ emissions reduction over 10 years is 900,000t

Chief executive officer (CEO) Rodolphe Collinet said, “We are delighted to join forces with John Cockerill and ENGIE for the development of this very exciting and strategic project. It is a major step forward in our ambition to become CO₂-neutral by 2050. This project is a very concrete and important example of Carmeuse’s strong commitment and contribution to sustainable development.”

US: Mexico-based Cemex has launched the Vertua range of low and net-zero CO₂ concrete products in the US following introductions in Mexico and Europe. The range consists of Vertua Classic, Vertua Plus and Vertua Ultra. The company has begun by selling Vertua Classic – which it says offers a 20–30% reduction in CO₂ emissions – in Bay Area, Central Valley, Los Angeles, Sacramento and San Diego, California. Vertua Plus and Vertua Ultra products will be introduced in 2021.

California regional president Francisco Rivera said, “Since many customers are motivated to reduce the carbon footprint of their projects, we are delighted to offer Vertua Classic, which is suitable for a wide range of commercial and residential applications. Our Vertua products are uniquely designed to balance limited carbon specifications with our customers’ needs for high-quality performance and resilience.”

Switzerland: LafargeHolcim has committed to accelerate the impact across its United Nation (UN) Sustainable Development Goal (SDG) activities, and disclose its progress.

Chief Sustainability Officer (CSO) Magali Anderson said, “As we celebrate the fifth anniversary of the Paris Agreement, it is more important now than ever for companies and governments to unite around climate action and the SDGs. That’s why we set ourselves the most ambitious 2030 climate targets in our industry, joining the Business Ambition for 1.5°C. Decarbonising business is vital, but it’s not enough. We are accelerating our overall commitment to the SDGs to build a world that works for people and the planet.”

Germany: The Carbon Disclosure Project (CDP) has named ThyssenKrupp on its Climate Change A List of companies which took actions to ’cut emissions, reduce climate impacts and help build a low-carbon economy’ in 2020. 269 companies won the top status from a pool of 5800 applicants.

Chief executive officer Martina Merz said, “This is a clear endorsement of our climate strategy. ThyssenKrupp has firmly established itself as a leader in climate protection. We will continue to systematically reduce climate impacts. We see climate protection not just as an obligation but as an opportunity for new
business.”

Italy: The Italian cement and concrete association Federbeton says that investments in sustainable technologies in domestic cement production totalled Euro110m between 1 January 2017 and 31 December 2019. This reduced carbon dioxide (CO₂) emissions by 311,000t in 2019 alone, up by 12% year-on-year from the reduction in 2018. An increased alternative fuel (AF) substitution rate of 6.7% in 2019 contributed to the reduction, up by 0.7% from 6.6%. Producers’ full-year AF consumption was 1.6Mt.

Japan: Sumitomo Osaka Cement has formulated a set of medium-term goals and long-term policies in order to enable it to achieve carbon neutrality, in line with the Japanese government’s target, by 2050. These consist of a 30% reduction in energy-derived carbon dioxide (CO₂) emissions intensity between 2005 and 2030 and efforts toward carbon neutrality in energy and process-derived emissions by 2050. These efforts include: “reduction to the limit of fossil energy, development and introduction of process-derived CO₂ emission reduction technology, carbon-free electric power, technology development and supply expansion related to low-carbon cement and concrete products, development and supply of innovative bonding materials and development and introduction of innovative technology related to carbon capture, utilization and storage (CCUS).”