Displaying items by tag: Sustainability

Global: The Global Cement and Concrete Association (GCCA) and the United Nations Industrial Development Organization (UNIDO) have entered a partnership to accelerate the decarbonisation of the cement and concrete industry, focusing on the global south. This collaboration, formalised through a memorandum of understanding, commits both organisations to advancing sustainability and decarbonisation. Their joint efforts will include developing low-emission technologies, organising international events and promoting industry solutions globally.

GCCA CEO Thomas Guillot said "Through our net zero roadmap and the accelerator programme we have put in place, we are already working with policymakers, governments and industry to overcome procurement and resourcing challenges across the global south. Having this ground-breaking agreement with UNIDO is a natural progression which we hope will fast-track progress in a meaningful way."

Vietnam: Siam Cement Group (SCG) has announced the launch of a new 20% reduced CO₂ cement in Vietnam. Việt Nam News has reported that SCG achieved the reduction through technical upgrades to its cement production, alternative fuels co-processing and waste heat recovery. The producer said the move is a response to growing demand for lower-carbon alternatives in the country’s cement market.

Deputy country director for Vietnam Tanakorn Theeramankong said "For the first time, SCG has introduced a new low carbon cement to the Vietnamese market, marking a significant step forward in our journey to achieve net-zero emissions. By pursuing advanced technologies to develop low carbon cement, we not only reduce our environmental impact but also set a new standard for Vietnam’s construction industry."

Europe: A joint statement by Cefic, Cembureau, Eurofer, Eurometaux and WindEurope has called for accelerated wind deployment as part of a new industrial deal to further support the Green Deal in the European Union (EU).

The organisations say that Europe's energy-intensive industries, like cement and steel, are vital for the wind energy supply chain. However, they assert that current policies lack frameworks that effectively support these industries, which have faced production curtailments due to the energy crisis. Addressing these challenges is fundamental to a new Industrial Deal for Europe, aimed at boosting renewable energy deployment to reduce energy costs. According to the International Energy Agency, the growth in solar photovolatics and wind capacity from 2021 to 2023 helped keep electricity prices lower than they would have been otherwise. Coupling the EU Green Deal with an industrial deal is seen as a strategy to provide regulatory stability, encourage investments in decarbonisation, and enhance competitiveness.

Koen Coppenholle, CEO of Cembureau, said "Cement is a critical component in the construction of wind turbine foundations and their recycling, while the growth of renewable energy is indispensable to achieve the cement sector’s net zero ambition. We look forward to a good cooperation with the wind energy sector to support a strong EU industrial policy and help building the business case for decarbonisation investments," said Coppenholle.

Philippines: OceanaGold Philippines (OGPI) is collaborating with Holcim Philippines to assess the feasibility of using mine tailings in cement production. Holcim will begin by acquiring tailing samples from OGPI for initial testing, aligning with its ‘circular economy’ program that integrates waste materials into cement. Both companies are committed to advancing the study, pending formal partnership arrangements and necessary permits.

OGPI President Joan Adaci-Cattiling said “We’re just waiting for the permit. Right now, we’ve found a way to put plan tailings to good use.”

India: Dalmia Cement (Bharat) has signed a power purchase agreement with BluPine Energy to establish a 47MW solar power plant in Karnataka. The plant will generate approximately 94 million kWh of electricity annually and reduce over 85,000t/yr of CO₂ emissions.

CEO of BluPine Energy, Neerav Nanavaty, said "The solar plant in Karnataka will not only produce clean energy but also foster local economic growth and support environmental sustainability. This project will help reduce operating costs and improve energy efficiency."

India: Dalmia Cement (Bharat) will acquire a 19.2% stake in Amplus Kaveri Solar for US$1.94m. This transaction is subject to customary conditions and is expected to complete within eight to nine weeks.

The National Development and Reform Commission and other government bodies in China released plans this week to cap clinker production capacity at 1.8Bnt/yr by the end of 2025. Energy efficiency of existing capacity will be used as the driver to determine which production lines can remain open. 30% of capacity will be required to be above the benchmark energy efficiency level. Plants below this line will be obliged to upgrade or face elimination.

Points of interest from the longer release include detail on how the authorities intend to promote energy efficiency. Installing improved production line equipment is as might be expected. However, there is also a drive towards low-carbon fuel substitution such as an increased thermal substitution rate (TSR) through the use of alternative fuels (AF), promotion of renewable energy sources and, interestingly, no new cement plants will be able to add captive coal power plants. The government is targeting a TSR of 10% by the end of 2025 with 30% of lines using AF in some form or another. A plan to reduce the clinker factor in cement is also being pushed through for the increased use of blast furnace slag, fly ash, carbide slag, manganese slag and other supplementary cementitious materials. This last point might have big implications for the ferrous slag export market but that’s a story for another day.

Working out how much these new measures will affect the cement sector in China in the short term is not straightforward since it’s unclear what the country’s actual production capacity is and how much of it is actually active. Data from the National Bureau of Statistics of China showed that cement output was 2.02Bnt in 2023. The China Cement Association (CCA) estimated that the capacity utilisation rate was 59% in 2023. So, if the sector were using all of its integrated cement plants flat out, then one might crudely suppose that the national production capacity might be around 3.5Bnt/yr. This guess does not take into account the prevalence of blended cements and a whole host of other factors so should be treated with caution. Given that cement output fell by 5% year-on-year in 2023, output could be just over 1.8Bnt in 2025 if the rate of decline holds. Research by Reuters in April 2024, suggested that the capacity utilisation rate hit 50% in that month, suggesting that the sector could meet the target in 2024 if it’s a particularly bad year. So, provided the production cap is enacted along the same lines of peak-shifting, where plants are temporarily shut for periods, then the target looks well within reach.

As reported in April 2024, the Chinese cement sector has faced rationalisation in recent years as the real estate market collapsed. Output peaked in 2020 and then fell subsequently. Most of the big producers endured falling sales volumes, revenue and profit in 2022, although some managed to resist the continuing decline in 2023. One coping mechanism has been to focus on overseas markets as proposed by the government’s Belt and Road initiative. Huaxin Cement has been a particular proponent of this strategy. The CCA says that China-based companies have invested in and built 43 clinker production lines in 21 countries with a cement production capacity of 81Mt/yr. Another 43Mt/yr of capacity is currently being built outside of China with yet another 25Mt/yr of capacity proposed for construction.

It is interesting, then, to note that the CCA issued an official warning this week to its members to invest ‘cautiously’ in Uzbekistan. The association said in a statement that at the end of April 2024 the country had 46 integrated production lines with a cement production capacity of 38Mt/yr. This is double the country’s demand for cement. Half of this production capacity is managed by China-based companies. It added that the utilisation rate was currently 50%, that the price had dropped by about 40% since 2020 and that competition was ‘fierce.’ Incredibly, another 7Mt/yr of capacity is expected to be added in 2024. The CCA has advised Chinese companies to consider the state of the Uzbek cement market before making any more investments.

The two news stories we have explored this week cover two sides of the same issue: Chinese cement overcapacity. The local market is finally slowing down after a period of phenomenal growth and the big question is what is the actual market demand now that all the big stuff has already been built. The government gives every impression it is using the decline to meet its sustainability goals. Like institutions in many other places it has set itself targets that it seems likely to meet. The flipside of overcapacity at home is investment overseas. China-based plant equipment manufacturers have certainly done well out of this situation. Yet in Uzbekistan, at least, it looks like the cement sector in China has also managed to export its overcapacity. This has created the absurd situation where the CCA has implored its members and others to exercise the same self-discipline abroad that the government extols at home. Another way to put this might be that Chinese cement companies are increasingly unable to make money at home… or in Uzbekistan. This then leaves a query over where else enthusiastic Chinese cement investors may be causing market imbalances. One solution might be for the Chinese government to impose a cap on clinker production by its companies outside the mainland. Whatever happens next though, the introduction of a capacity cap in mainland China marks a decisive change to the local cement sector.

Netherlands: Paebbl has successfully mineralised its first tonne of CO₂ into raw materials for alternative building materials at its pilot facility in Rotterdam. The tonne of CO₂ corresponds to 3t of material produced. In a post to LinkedIn, the company said that it is now seeking ‘more brilliant, planet-aligned, resilient people’ to join its team of 30 people.

Paebbl said “We're moving fast, but our journey is barely a humbling 0.0000001% complete.”

China: KHD’s management team met in Nanjing in May 2024 to strategise on advancing decarbonisation in the cement industry. The meeting focused on industry needs and sustainable practices.

CEO Jianlong Shen said "We were pleased to welcome members of KHD leadership from around the world to Nanjing. Everyone who attended had the opportunity to take part in the discussion and share their ideas and suggestions for our next steps. We look forward to sharing more about our direction in due course as we continue on our collective journey to cement beyond carbon."

Germany: France-based Fives has won a contract to build a 50t/day clay calcination unit at Rohrdorfer’s Rohrdorf cement plant in Bavaria. The unit will integrate into the plant’s clinker line in order to allow it to test the production of limestone calcined clay cement with up to 40% reduced CO₂ emissions. Fives’ clay calcination unit uses a flash calcination process, based on a three-stage preheater, flash calciner and decolourisation system.

Rohrdorfer’s Net Zero Emissions Labs team is responsible for the project to decarbonise the Rohrdorf cement plant by 2038. Its managing director Helmut Leibinger said “After a detailed technical review, we decided that the flash calciner with an integrated clay calcination unit from Fives FCB was the best solution in terms of reliability, efficiency and colour control. We are confident that the unit will be essential in moving forward on our pathway to net zero.”