Displaying items by tag: Sustainability

Mexico: Holcim Mexico has commenced production of its Fuerte Más reduced-CO₂ cement at its cement plants in Macuspana and Tabasco at a combined rate of 60,000t/yr. The cement offers 50% reduced CO₂ emissions and 10% higher physical performance than ordinary Portland cement (OPC). The El Economista newspaper has reported that Holcim Mexico replaces some of the clinker in the cement with locally-sourced minerals from Southeast Mexico. Chemical compounds in the material colour the cement red.

The Centre for Technological Innovation for Construction (CITEC) Toluca verified the product as suitable for all applications. Holcim Mexico's industrial director Adrián Belli said that comparable green cements are currently only available in France and Italy.

The Chinese cement sector had a tough time in 2022. This was confirmed this week as the large domestic cement producers released their financial results. Revenue was down, profits fell and cement sales volumes tumbled. The key causes included the continuation of the country’s zero-coronavirus policy, the declining real estate market and rising input costs for raw materials such as coal. Demand for cement withered and so did the fortunes of the cement companies.

Graph 1: Cement output in China, 2018 to 2022. Source: National Bureau of Statistics of China.

Data from the National Bureau of Statistics of China shows that cement output fell by 9.8% year-on-year to 2.13Bnt in 2022 from 2.36Bnt in 2021. The greater decrease was in the first half of the year rather than the second. The China Cement Association (CCA) said that this was nearly the lowest output in the last decade and the largest decline since 1969 ! The National Bureau of Statistics of China also pointed out in a release that, despite investment in fixed assets increasing by around 5% in 2022 and national infrastructure spending growing by 9%, real estate development investment dropped by 10% to US$1.46Tn.

Graph 2: Sales revenue from selected Chinese cement producers. Source: Company financial reports.

Graph 3: Sales volumes of cement and clinker from selected Chinese cement producers. Source: Company financial reports.

The cement producers warned in their forecasts that the results for 2022 were going to be rough and so it came to pass. China National Building Material (CNBM)’s revenue fell by 16% year-on-year to US$33.4bn in 2022 and Anhui Conch’s sales fell by 21% to US$19.2bn in 2022. Although, Tangshang Jidong Cement and Huaxin Cement reported declines of income or revenue in single digits. Profits halved for all of the companies covered here. Various combinations of the reasons covered above were cited for the situation.

What is more interesting are the responses some of the producers are making and what has gone well. CNBM, for example, is pinning its hopes on better staggered peak production and infrastructure projects. Anhui Conch, meanwhile, appears to have been diversifying its business by increasing both its concrete and solar power production capacity significantly in 2022. It was also announced that it plans to spend US$2.81bn on capital expenditure projects in 2023. China Resources Cement (CRC) said it had optimised its presence in South China through selected acquisition and divestments. Huaxin Cement has continued its focus on overseas markets with its share of operating revenue originating from outside China rising to 13% of the group’s total in 2022 compared to 8% in 2021. It also mentioned a number of unnamed projects around the world steadily drawing nearer to action. Sure enough, the group announced earlier in March 2023 that it was buying a majority stake in Oman Cement.

As for 2023, the CCA forecast in January 2023 that cement demand would be flat or slightly down. However, at the same time, provincial changes to the real estate market are expected to improve market conditions and infrastructure development will further drive demand for cement. The CCA identified that the cement sector’s production overcapacity could become an issue with lower demand. In 2022 the national clinker production utilisation rate was 65%, a fall of 10% from that in 2021. It also pointed out that peak-staggered production had actually helped cement producers generally to cope with smaller declines in profits compared to less well regulated industries.

Problems such as the zero-coronavirus policy, the real estate market and rising raw material costs have made the country’s production overcapacity issue worse. Changes are being made such as the national abandonment of the coronavirus lockdowns in late 2022, and, as mentioned above, the real estate market is being modified. In addition to this, various environmental changes are on the way, as the government works towards its sustainability goals. The country remains the largest cement producer in the world. Yet the message here is that we should expect more of the same for the cement sector in China in 2023.

Mexico: Cemex has reviewed its global sustainability and financial performance during 2022 in its Integrated Report 2022. During the year, the group reduced its specific CO₂ emissions by 9% from 2020 levels and by 30% from 1990 levels. It achieved a target of US$1bn-worth of investment in strategic projects over a period begun in 2020. Projects included the execution of water optimisation plans at 20% of Cemex sites in high-water stress areas. Cemex co-processed 27Mt of waste as alternative fuel (AF) in its global cement production - 67 times greater than its own non-recyclable waste footprint - and achieved an AF substitution rate of 35%. Meanwhile, the group also reduced its cement's clinker factor to 74%. Its Vertua reduced-CO₂ concrete range accounted for 33% of its concrete sales. During the year, Cemex launched the world's first net zero, fully electric heavy concrete mixer truck.

In 2022, Cemex recorded sales of US$15.6bn, down by 12% year-on-year, and reduced its debt to US$408m.

Finland: VTT Technical Research Centre subsidiary Carbonaide has concluded its seed funding round, having raised funds worth Euro1.8m. Lakan Betoni, which produces precast and ready-mix concrete, led the funding, along with utilities provider Vantaa Energy. Carbonaide will use the funds to build an industrial pilot plant for its carbon neutral precast concrete product at an existing precast concrete plant in Hollola. The plant will bind captured CO₂ in the product at atmospheric pressure. The process generates 50% lower CO₂ emissions than precast concrete production using ordinary Portland cement (OPC). Suitable raw materials include ground granulated blast furnace slag (GGBFS), green liquor dregs and bio-ash. In trial production, the use of GGBFS gave Carbonaide's concrete a negative carbon footprint of -60kg/m³.

Other sources of loans and in-kind contributions included Finnish state innovation fund Business Finland.

US: Heidelberg Materials subsidiary Mason City Cement plans to invest US$4 - 5m in upgrades to its kiln line by 2026. Upon completion, the work will enable the plant to achieve an alternative fuel (AF) substitution rate of 50%.

Heidelberg Materials' North America regional vice president of government affairs and communications David Perkins said "We want to be proactive as a company and really try to lower our carbon footprint and energy intensity, while recognising we have to be competitive." He added "We're a long-term industry on the cement side because of the investment that's required to produce it."

Portugal: Setúbal District Council has submitted its opinion in the on-going consultation process over Secil's plans to expand its Arrábida quarry in Arrábida National Park. The quarry serves Secil's Outão cement plant. The Jornal de Negócios newspaper has reported that Secil has applied to expand the quarry up to a total area of 117 hectares, and says that the newly expanded quarry would have less impact on the landscape and environment than it currently does.

Setúbal District Council acknowledged Secil's 'clear effort' in its rehabilitation of exhausted sections of the Arrábida quarry, as well as the company's importance to the regional and national economy. Nonetheless, it concluded that the proposed expansion 'is not compatible with the territorial management instruments in force, which are currently under revision.'

Japan: Sumitomo Osaka Cement will launch its new sustainability committee on 1 April 2023. The committee will promote initiatives to reduce the producer's CO2 emissions and help it to 'realise a decarbonised society.' The new committee will operate alongside Sumitomo Osaka Cement's existing corporate social responsibility (CSR) committee, which has been in operation since April 2020.

France: Vicat and Materrup have formed a joint venture to industrialise production and accelerate marketing of Materrup's Clay Cement 1 (MCC1) raw clay cement. The Le Moniteur newspaper has reported that the technology is based on a precursor and activator mixture which removes the need for calcination of the clay. Materrup said that this halves MCC1 cement's CO₂ emissions compared with ordinary Portland cement (OPC).

The partners say that clay has better long-term feasibility than other alternative raw materials for cement production, because global reserves are currently 2Tnt.

Brazil: Secil Supremo Cimentos has appointed FLSmidth to carry out a pyro process upgrade at its Adrianópolis cement plant in Paraná. The Denmark-based supplier says that it plans to carry out modifications on the plant's preheater, cooler and related auxiliary equipment. It says the new equipment will expand the plant's capacity to 3900t/day, corresponding to an annual production capacity of 1.42Mt/yr. It will also enable it to increase its alternative fuel (AF) substitution rate to 40%. Secil Supremo Cimentos' AF mix consists of shredded tyres, wood and other refuse-derived fuels.

FLSmidth's head of capital sales, Jens Jonas Skov Larsen, said “We are grateful for our continued partnership with Supremo, which has consistently invested in the latest technology. As the plant was already operating an ILC five-stage preheater from FLSmidth, it was well positioned to use AF.”

Poland: Lafarge Polska has signed a 10-year power supply agreement with Germany-based energy provider RWE Supply & Trading. Under the contract, Lafarge Polska will receive renewable energy from Windfarm Polska III on the coast at Sztum, Pomeranian Voivodeship. It is owned by German state-owned Stadtwerke München (SWM).

Renewables Now News has reported that Lafarge Polska is currently building a 41MW solar power plant at the site of its former Wierzbica cement plant in Masovian Voivodeship. This will cover a further 10% of its energy consumption.