Displaying items by tag: VICAT
Vicat fights inflation with price rises in 2021
16 February 2022France: Vicat says it offset rising energy costs by raising its prices in 2021. It reported growth in most places as markets recovered from the start of the Covid-19 pandemic in 2020. It also noted a particular improvement in Egypt as government-mandated changes came into force in July 2021. The group’s consolidated sales rose by 11.3% year-on-year to Euro3.12bn in 2021 from Euro2.81bn in 2020. Cement and concrete volumes increased by 12.4% to 28.1Mt and 12.5% to 10.5Mm3 respectively. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 11.1% to Euro619m from Euro557m.
“Conditions in our markets remained dynamic, supported by favourable pricing trends in a context of sustained demand. This offsets the sharp rise in energy costs and wage increases,” said Vicat group chairman Guy Sidos.
Senegal: France-based Fives has detailed the equipment that it will supply for its construction of a new 6500t/day kiln line at SOCOCIM Industries’ Rufisque cement plant in Dakar Region. The company says that it will supply a preheater, in-line Preca calciner, kiln, TGT filter and Pillard Novaflam burner.
SOCOCIM Industries’ parent company Vicat’s chair and chief executive officer Guy Sidos said “Vicat Group renews its partnership with Fives Group through this major project of building a new line with a strong local dimension, employing local workers and contractors.” He added “This plant will eventually eliminate the use of fossil fuels, reduce our energy consumption and support Senegalese local development, making a higher quality product while doubling our production capacity.”
SOCOCIM Industries to upgrade Rufisque cement plant
07 January 2022Senegal: SOCOCIM Industries, a subsidiary of France-based Vicat, has signed a contract with France-based Fives Group for an upgrade to its Rufisque cement plant in Dakar. Under the contract, Fives Group will supply a new 6500t/day kiln line for the 3.5Mt/yr plant. The supplier said that the line will be optimised for alternative fuel (AF) substitution. It said that the companies share mutual trust, 200 years of history and a commitment to reducing the carbon footprint of the cement industry.
Vicat agrees Euro250m financial agreement
24 November 2021France/US: Vicat Group has signed a Euro250m financing agreement taking the form of a private placement with US investors. The first tranche of the agreement covers Euro100m, with a maturity of 10 years, at a fixed rate of 1.27%. The second tranche is for Euro150m, with a maturity of 15 years, at a fixed rate of 1.57%. The group says it will use the funding to strengthen the liquidity of its balance sheet, extend the overall maturity of its debt and reduce its average debt ratio.
Vicat presents its climate strategy
22 November 2021France: Vicat has reiterated its CO2 emissions reduction target of 55% between 1990 and 2030 and reaffirmed its 2050 carbon neutrality commitment. The company says that its will invest Euro800m in transitioning to lower-CO2 cement production between 2021 and 2030 in order to meet the 2030 target. It said that eight US and European cement plants with ‘limited decarbonisation standards’ currently generate 67% of its earnings before interest, taxation depreciation and amortisation (EBITDA).
Vicat project at Montalieu-Vercieu cement plant to test hydrogen production technology from Genvia
19 November 2021France: Vicat plans to test hydrogen electrolysis technology provided by Genvia for a pilot project at its Montalieu-Vercieu cement plant. Genvia made the announcement following a tour of its facilities by President Emmanuel Macron. It will be working with Vicat, Hynamics, a subsidiary of EDF group, and EDF Energy on the initiative. Other pilot projects have been announced with steel producers ArcelorMittal and Ugitech.
Genvia is a hydrogen production joint venture between French Alternative Energies and the Atomic Energy Commission (CEA), Schlumberger New Energy, VINCI Construction, Vicat Group and the Occitanie Region. It is developing and promoting solid oxide technology to enable industrial decarbonisation through hydrogen production, energy storage and fuel applications at scale.
Vicat aims to start cultivating spirulina at Montalieu-Vercieu cement plant in summer of 2022
20 October 2021France: Vicat says it aims to start cultivating spirulina at its Montalieu-Vercieu cement plant in the summer of 2022 as part of its Cimentalgue project. It plans to grow 1t/yr until 2024 as part of a trial looking at volume and quality, according to the Agence France Presse. It will use CO2 and waste heat from the plant to grow the cyanobacteria that can be used as a food source.
The project is being conducted with Algosource and the GEPEA (Process Engineering for Environment and Food) laboratory at the University of Nantes. TotalEnergies is also involved as a financial backer. The project has a budget of Euro2m and is also supported by the Environment and Energy Management Agency (ADEME).
Update on carbon capture in cement, September 2021
22 September 2021It’s been a good week for carbon capture in cement production with new projects announced in France and Poland.
The first one is a carbon capture and utilisation (CCU) collaboration between Vicat and Hynamics, a subsidiary of energy-provider Groupe EDF. The Hynovi project will see an integrated unit for capturing CO2 and producing methanol installed at Vicat’s Montalieu-Vercieu cement plant in 2025. It aims to capture 40% of the CO2 from the kiln exhaust stack at the plant by using an oxy-fuel method and installing a 330MW electrolyser to split water into oxygen and hydrogen for different parts of the process. The CO2 will then be combined with hydrogen to produce methanol with potential markets in transport, chemicals and construction. The setup is planning to manufacture over 0.2Mt/yr of methanol or about a quarter of France’s national requirement. The project was put forward under a call for proposals by the Important Projects of Common European Interest (IPCEI) program. Pre-notification of its participation in the program has been received from the French government and it is currently being evaluated by the European Commission. Vicat’s decision to choose its Montalieu-Vercieu plant for this project is also interesting since it started using a CO2ntainer system supplied by UK-based Carbon8 Systems there on an industrial scale in November 2020. This system uses captured CO2 from the plant’s flue gas emissions to carbonate cement-plant dust and produce aggregate.
The second new project is a pilot carbon capture and storage (CCS) pilot by HeidelbergCement at its Górażdże cement plant in Poland. This project is part of the wider Project ACCSESS, a consortium led by Sintef Energi in Norway that aims to cut carbon capture, utilisation and storage (CCUS) costs and to link CO2-emitters from mainland Europe to storage fields in the North Sea. The cement plant part in Poland will test an enzyme-based capture method using waste heat at the plant. Another part of the project will look at how the captured CO2 can then be transported to the Northern Lights storage facility in Norway including the regulatory aspects of cross-border CO2 transport. ACCSESS started in May 2021 and is scheduled to end in April 2025. It has a budget of around Euro18m with Euro15m contributed by the European Union (EU) Horizon 2020 fund.
HeidelbergCement also says that the second stage of its LEILAC (Low Emissions Intensity Lime And Cement) project at the Hannover cement plant is part of ACCSESS, with both testing of the larger-scale Calix technology to capture CO2 and the connected transport logistics and bureaucracy to actually get it to below the North Sea. That last point about Calix is timely given that US-based Carbon Direct purchased a 7% stake in Calix in mid-September 2021 for around US$18m. Whilst on the topic of carbon capture and HeidelbergCement don’t forget that the group’s first full-scale carbon capture unit at Norcem’s Brevik cement plant, using Aker Solution’s amine solvent capture technology, is scheduled for commissioning in September 2024. Another carbon capture unit is planned for Cementa’s Slite plant in 2030 but the proposed capture method has not been announced.
Other recent developments in carbon capture at cement plants include Aalborg Portland Cement’s plan to capture and store CO2 as part of the Project Greensand consortium. The overall plan here is to explore the technical and commercial feasibility of sequestering CO2 in depleted oil and gas reservoirs in the Danish North Sea, starting with the Nini West Field. The project is still securing funding though, with an Energy Technology Development and Demonstration Program application to the Danish government pending. However, the Danish Parliament decided in December 2021 to set aside a special funding pool to support a CO2 storage pilot project so this initiative seems to be making progress. If the application is successful, the consortium wants to start work by the end 2021 and then proceed with an offshore injection pilot from late 2022. How and when Aalborg Portland Cement fits in is mostly unknown but a 0.45Mt/yr capture unit at its Rørdal cement plant is tentatively planned for 2027. There’s also no information on the capture method although Aker Carbon Capture is also part of the Project Greensand consortium. Finally, also in September 2021, Chart Industries subsidiary Sustainable Energy Solutions announced that it had selected FLSmidth to help adapt and commercialise its Cryogenic Carbon Capture carbon capture and storage (CCS) system for the global cement industry.
All of this tells the cynics in the audience that a large international climate change meeting is coming up very soon. Most cement companies will likely want some good news to show off when the 2021 United Nations Climate Change Conference (COP26) dominates the media agenda in November 2021. Other observations to point out include that none of the projects above are full-scale industrial carbon capture installations, most of them are consortiums of one sort of another and that they are all subsidised or want to be. While hydrogen and CO2 networks get built this seems inevitable. Yet, we’re not at the stage where cement companies just order carbon capture units from a supplier, like they might a new clinker cooler or silo, without the need for long lists of partners. When this changes then carbon capture looks set to flourish.
On a final note, the UK is currently experiencing a shortage of commercially-used CO2. The reasons for this have nothing to do with the cement industry. Yet consider the constant doom-and-gloom about record global CO2 emissions and the sheer amount of effort going into reducing this by the projects mentioned above and others. Life has a sense of humour at times.
For a view on the CO2 sequestration permitting process in the US look out for the an article by Ralph E Davis Associates, in the forthcoming October 2021 issue of Global Cement Magazine
Vicat and Hynamics to produce methanol from captured CO2 at Montalieu-Vercieu cement plant
16 September 2021France: Vicat’s Montalieu-Vercieu cement plant will host a carbon capture and storage (CCS) installation and methanol plant under a joint project by Vicat and Groupe EDF subsidiary Hynamics known as Hynovi. The project aims to achieve 40% carbon capture at the plant. A 330MW electrolyser will convert captured CO2 to methanol through oxycombustion. Commisioning of the entire system is scheduled for 2025. The partners said that Hynovi may subsequently be taken up by cement plants globally.
Egypt: France-based Vicat raised a case against the Egyptian government with the International Centre for Settlement of Investment Disputes (ICSID) in late June 2021. It concerns its cement production business. Reporting by the Qatar-based New Arab newspaper alleges that the cement producer was forced to reduce its shares in its subsidiary Sinai Cement due to a law stopping foreign ownership of companies operating in the Sinai Peninsula on the basis of security grounds. It reports that Vicat has reduced its shares in its subsidiary to 42% from 56% previously.
Vicat confirmed in its financial report for 2020 that it was in the process of taking legal action locally on the matter of foreign ownership in the Sinai region. It added that an investment of around Euro35m in Sinai Cement had been delayed due to administrative approval time. In July 2021, Tamer Magdy, the country manager for Sinai Cement, told local press that Vicat was keen to continue investing in the market.