Displaying items by tag: Sustainability

Taiwan Cement said this week that it is aiming for cement to account for less than half of its sales by 2025. At the annual shareholders’ meeting chair Nelson Chang defended the cement sector as a core business but said that the company was expanding more into the green energy sector through its energy storage and vehicle charging lines. Chang directly linked the strategy to growing carbon taxes around the world, such as the European Union Emissions Trading Scheme, where the carbon price has been occasionally close to pushing past Euro100/t since early 2022. Taiwan Cement formed a joint venture with Türkiye-based Oyak Group in 2018 that runs Cimpor in Portugal.

Table 1: Cement business share by revenue of selected cement producers. Source: Corporate annual reports.

Taiwan Cement’s plan to decrease its reliance on cement is becoming a familiar one. Holcim notably revealed in 2021 that it was growing its light building materials division. Its cement division represented 60% of sales in 2020 with concrete and aggregates making up most of the rest to 92% and the remaining 8% on other products including light building materials. This started to change with the acquisition of roofing and building envelope producer Firestone Building Products in 2021. Other similar acquisitions have followed. Holcim’s current target is to grow the Solutions & Products division to around 30% by 2025, with cement reduced to somewhere between a third and half of sales. Earlier this year Japan-based Taiheiyo Cement said it was doing a similar thing as part of its medium-term strategy to 2035. In its case cement represented 70% of its sales in 2022 but it is now aiming to reduce this to 65% by 2025 and 50% by 2035.

A common pattern for the business composition of European cement companies is a mixture of heavy building materials made up of cement, concrete and aggregate. However, not every cement company follows the same route. Some cement companies are simply parts of larger conglomerates. UltraTech Cement, for example, is mostly just a cement company. However, it is also part of Aditya Birla Group, which runs a wide range of industries including chemicals, textiles, financial services, telecoms, mining and more. Depending on how one looks at it, UltraTech Cement’s cement business ratio is large or Aditya Birla Group’s ratio is small. Siam Cement Group (SCG) in Thailand is another example of a cement producer operated by a conglomerate with other major businesses.

A different approach that some cement producers take is to mix cement production with complimentary businesses outside of heavy building materials. A good example of this is Votorantim Cement in Brazil, which manufactures cement and steel. Companhia Siderúrgica Nacional (CSN) is another Brazil-based cement producer that is also well known for steel production. Adani Group in India, meanwhile, was well known for logistics, power generation and airports before it purchased Ambuja Cements and ACC from Holcim in 2022.

The driver for cement companies looking to reduce cement as a proportion of their businesses has varied between the three examples presented above. Holcim’s approach has been in response to growing European carbon costs but it also fits with a general desire to broaden its business as the company has sought to reshape itself following the merger between Lafarge and Holcim. Taiheiyo Cement’s plans also have a sustainability angle but the Japanese market has been in slow decline since the 1990s and this has been made worse by the spike in energy prices since 2022. Investing in new businesses makes sense for either of these reasons. Lastly, Taiwan Cement says it is taking action in response to carbon prices around the world. However, its proximity to many other large-scale producers in the Far East may also be a factor. Whether more companies follow suit and also start to reduce the ratio of their cement businesses remains to be seen. Yet, mounting carbon taxes and global production overcapacity look set to make more of the larger cement producers consider their options in certain places.

Canada: Holcim subsidiary Lafarge Canada has extended its biodiversity collaboration with the Forêt-Boucher Foundation. Under the expanded partnership, Lafarge Canada has committed to annual contributions of US$11,200/yr until 2028.

The collaboration will focus its efforts on conservation of the Boucher Forest in Quebec, near the site of Lafarge Canada’s Klock quarry. Boucher Forest contains habitats with 1150 different species.

Egypt: Heidelberg Materials subsidiary Suez Cement has invested US$16m in upgrading its operations towards increased alternative fuel (AF) use since 2010. The producer uses AF in the burners and kilns of all three of its cement plants, at Helwan, Kattameya and Suez. Meanwhile, Suez Cement has invested US$60m in dust control measures over the same period. Other on-going investments include US$25m in the construction of a waste heat recovery (WHR) plant at the Helwan cement plant. The company is committed to reaching a 24% reduction in its CO₂ emissions between 2019 and 2030.

Technical director Omar Khorshid said “We are committed to pursue initiatives to broaden our range of innovative and eco-friendly building solutions, advance operational efficiency through digitalisation and strengthen customer engagement for better business results and more positive impact."

Taiwan: Taiwan Cement Corporation aims to diversify its business away from cement by increasing its sales from energy storage and vehicle charging. It aims to derive over 50% of its revenues from other activities besides cement by 2025. The Taipei Times newspaper has reported that the producer will continue to produce 80Mt/yr of cement. The company said that the reason behind its planned diversification is its responsibility to help reduce global net CO₂ emissions.

Chair Nelson Chang said “Carbon reductions must be fast and efficient, and the use of solar and other green energy resources in producing cement is not enough to offset carbon emissions. That means Taiwan Cement has to press ahead and develop carbon capture techniques that would help mitigate the negative impact of cement production on the environment.”

US: Holcim US has inaugurated a waste tyre processing plant at its Alpena cement plant in Michigan. The facility will process 22,000t/yr of tyres into refuse-derived fuel (RDF) for use at the cement plant. Holcim US partner Geocycle will collect, pre-process and deliver the tyres to the new facility.

Holcim US’ North regional senior vice president of manufacturing Michael Nixon said "Holcim has invested more than US$100m in eco-friendly technologies at the Alpena plant in the past 15 years. The tyre-derived fuel facility is another strong demonstration of our commitment to reducing emissions."

UK: SigmaRoc subsidiary CCP has launched Greenbloc Standard, Ultra and Premium. The new designations correspond to 50%, 80% and 100% cement substitution. Professional Builder News has reported that Using Greenbloc Standard reduces structures’ CO₂ emissions by 77% compared with structures built with conventional ordinary Portland cement (OPC)-based blocks. For an average semi-detached house, this is equivalent to 2.7t of CO₂.

CCP general manager Phil Rotheram said “The expansion of our Greenbloc range continues our commitment to sustainable alternatives to our product offering as we fully commit to the challenges of removing embodied carbon from the built environment.”

Greenbloc Ultra featured in a gold medal-winning garden at the RHS Chelsea Flower Show 2023 in May 2023.

Canada: The district council of Capital Regional District (CRD) says that it expects to resume sending biosolids to Lafarge Canada's Richmond cement plant in early June 2023. This follows a reported reduction in production at the unit in 2023 and 2022, according to the Times Colonist newspaper. The 1.1Mt/yr cement plant previously used biosolids supplied by the CRD as an alternative fuel in its cement production. However, during the current hiatus the biosolids have been sent to landfill instead.

The Richmond cement plant is the site of the CO₂MENT carbon capture and utilisation project. The project proceeded to its third phase, which consists of a capture capacity expansion and the installation of a liquefaction plant, in May 2023.

Finland: Finnsementti is carrying out upgrades to its two integrated cement plants as part of its sustainability targets to 2030. The subsidiary of Ireland-based CRH is installing new main burner equipment at its Lappeenranta plant with completion scheduled for mid-2023. The project is intended to allow the plant to increase its use of alternative fuels. The company’s Parainen plant is replacing its satellite coolers with a grate cooler with completion scheduled for the spring of 2024. This work is expected to decrease the plant’s emissions by 10%. Overall the group is preparing to decrease its CO₂ emissions by 30% by 2030 compared to 2021 levels.

Iceland: Sementsverksmidjan says it has offset its domestic transport CO₂ emissions through an offset scheme with the government environmental agency Landgræðirin. In 2022 the subsidiary of Germany-based Heidelberg Materials offset 484t of CO₂-equivalent by restoring a birch forest and dry-land ecosystems.

Europe: 12 decarbonisation-focused companies from across the European cement and concrete sector have launched the Alliance for Low-Carbon Cement & Concrete (ALCCC). The alliance has called on policymakers to change building standards to help low-carbon alternatives to enter the cement and concrete markets. It further said that green procurement and targeted financing instruments would help to reduce sectoral CO₂ emissions. It said that a progressive decline in clinker factor to 60%, 50% or 40% by 2050 will reduce CO₂ emissions by over 50%. The ALCCC says that it is ready to lead the sector towards a swift, low-cost and viable decarbonisation pathway. Participants in the alliance include France-based Hoffmann Green Cement Technologies, Ireland-based Ecocem and US-based Fortera.

Fortera's Europe director Thierry Legrand said "Climate action is a global priority, and collaboration is essential to advancing emissions-reducing technologies and policies. This alliance represents collective action by scientists, engineers, entrepreneurs and environmental advocates to reduce CO₂ emissions from cement production."