Displaying items by tag: carbon capture

UK: Worley has secured the engineering, procurement and construction management (EPCM) contract for the carbon capture and storage (CCS) facility at Heidelberg Materials’ Padeswood cement plant in North Wales. Mitsubishi Heavy Industries (MHI) will provide the carbon capture technology. The project will enable commercial-scale production of evoZero, Heidelberg Materials’ near-zero CO₂ cement, by capturing around 0.8Mt/yr of CO₂, representing nearly all of the plant’s emissions. Construction is expected to begin before 2026, with commissioning planned for 2029. Worley will lead the EPCM delivery of the project and provide support to infrastructure development, technology integration, and commissioning. The contract follows Worley’s successful completion of the project’s FEED study with MHI.

The Indonesian Cement Association (ASI) has warned that cuts to the Nusantara Capital City project had reduced cement sales so far in 2025. Yet also this week the ASEAN Federation of Cement Manufacturers (AFCM) launched its 2035 AFCM Decarbonisation Roadmap. Here is a round-up of recent news from the cement sector in Indonesia.

ASI data shows that local cement sales volumes fell by 2.5% year-on-year to 51.9Mt in the first 10 months of 2025 from 53.2Mt in the same period in 2024. Cement production decreased by 5.6% to 52.9Mt. Lower demand was reported in Kalimantan and Java. However, it rose in Sumatra and Nusa, in part, due to road construction. Sadly, Sumatra has been badly affected by floods this week. National cement exports grew by over 20% to 1.1Mt. The ASI is currently hopeful that a government-backed home renovation programme might stimulate demand.

Graph 1: Domestic cement sales and exports in Indonesia, 2019 - 2025. Source: Indonesian Cement Association (ASI). Note: Figure estimated for 2025, exports include cement and clinker.

The general picture can be seen above in Graph 1. The local cement sector has generally had a capacity utilisation issue since the mid-2010s. Domestic sales started to catch up but the Covid-19 pandemic disrupted the market. Meanwhile, exports of cement and clinker have been steadily rising since 2014. These are dominated by clinker exports, with the single largest destination being Bangladesh. Other major targets include Taiwan and Australia. The country’s relatively low consumption of cement per capita suggests that the utilisation rate will grow over time.

The local production market is dominated by state-owned Semen Indonesia (SIG) (with a 48.5% share), followed by Indocement (29.1%), Conch Cement Indonesia (7.1%) and Cemindo Gemilang (6.6%). SIG’s sales volumes in the first nine months of 2025 roughly follow the general trend reported by the ASI with local sales down by 1.8% year-on-year to 27.5Mt and exports up by 25.3% to 5.1Mt. The group’s sales revenue and earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 3.8% to US$1.52bn and 23.8% to US$198m respectively. Indocement’s revenue fell by a similar rate. Both companies anticipate a modest recovery in 2026.

Something to note from SIG’s financial results and related discussions in 2025 (and earlier) has been its approach to marketing and selling its cement brands in a highly competitive environment. It says it changes its brand mix in different regional locations with varying combinations of market leaders with premium pricing and so-called ‘fighting brands’ with competitive pricing. Yet, eco-brands received a mention in addition to the other two groups in the third quarter report analysts’ discussions suggesting an appetite for potentially lower-clinker cements in a developing market such as Indonesia.

This leads to the second Indonesia-related news story of the week: the 2035 AFCM Decarbonisation Roadmap. The plan intends to reduce net CO₂ emissions from the cement sector in the region by 16% to 190Mt/yr from 228Mt/yr in 2020. 58% of this reduction will be achieved through the use of alternative fuels, 33% via the use of low-carbon cements and 9% through the use of renewable energy sources. Work towards carbon capture, utilisation and/or storage (CCUS) is starting with the aim of supporting capture pilots in the region and planning towards CO₂ transport and storage networks. Similarly, the roadmap urges producers to identify and prepare to use new secondary cementitious materials such as calcined clay and construction and demolition waste.

The race between capacity building and market share has been a familiar one in coverage of the cement market in Indonesia in recent decades. Provided the main companies can endure the competition, it looks set to continue, while demographic trends indicate the need for continued investment. Otherwise more market consolidation is to be expected when the utilisation rate dips too low. What is new though are the higher levels of blended cements and the changes this brings to the market. This can be seen above in the marketing strategy of SIG and the regional decarbonisation strategy. Similar trends are happening everywhere but the effects on a highly competitive market could be pronounced. Particularly if those government-backed schemes that the sector anticipates promote it.

The Global CemFuels Asia Conference will take place on 2 - 3 February 2026 in Bangkok

Germany: The Bundesrat has given final approval to legislation enabling industrial-scale underground CO₂ storage, marking Germany’s biggest policy shift to date on industrial decarbonisation. The new law establishes a national framework for CO₂ storage beneath the seabed, excluding protected and near-shore zones. It also includes an opt-in clause allowing individual federal states to authorise onshore storage, a provision of particular interest to industrial regions seeking local solutions.

A national CO₂ pipeline network will also be developed to transport captured emissions from plants to designated storage sites. Federal Economics Ministry State Secretary Stefan Rouenhoff said the legislation is a ‘crucial building block’ for Germany’s decarbonisation plans, especially for hard-to-abate sectors such as cement production.

UK: Cleantech firm Carbon8 Systems has been placed into administration, with business advisory firm Quantuma appointed as administrator on 12 November 2025. Carbon8 Systems was founded in 2006 as a University of Greenwich spin-out, focused on research and experimental development within natural sciences and engineering. The company developed Accelerated Carbonation Technology (ACT), a patented process that captures CO₂ emissions and converts them into carbon-negative aggregates sold under the CircaBuild brand. The company also developed CO₂ntainer™, a modular solution which enabled on-site carbon capture and treatment of industrial residues.

Quantuma was instructed by the company’s board to provide advisory support in April 2025, as the company faced cash flow difficulties while seeking investment. Despite efforts to secure funding, this was not successful within the required timeframe. As part of the administration process, Carbon8’s operations at Medway Campus, University of Greenwich, and its premises at Wraxhalls storing plant will close. Eleven employees were made redundant shortly before the appointment on 10 November 2025.

Chris Newell, Quantuma managing director and joint administrator, said “It is always difficult to see a company with such innovative intellectual property (IP) be placed into administration. I expect there to be strong appeal in the assets and any parties interested in the acquisition of the IP are welcome to make contact with us.”

Netherlands: Sweden-based Paebbl's demonstration plant at its Rotterdam research and development centre has reached a cumulative 500 hours of production in the eight months since it entered operation in March 2025. The plant uses captured CO₂ as a feedstock to produce carbon-storing cementitious materials. Meanwhile, Paebbl has operated its pre-existing pilot plant for a cumulative 2000 hours. The producer is now designing its first commercial-scale plant.

Sweden: Heidelberg Materials Sweden has said that it will ‘pause’ its carbon capture project at the Slite cement plant in Gotland after the Swedish Energy Agency rejected its application for co-financing under the Industrial Step programme. The producer said that the government is currently ‘not prepared’ to strategically prioritise funds for the project. The project aimed to reduce Sweden’s total CO₂ emissions by 1.8Mt/yr, or around 4% of the country’s total emissions. Heidelberg Materials said that, as production in Slite is not being given a way to adjust with secured long-term competitiveness, Sweden now risks becoming dependent on cement imports in the future and could face weakened security of supply.

Vice president Karin Comstedt Webb said “We have worked for a long time to implement one of the most powerful climate investments in Swedish industrial history with the aim of securing long-term competitiveness. But without the state's continued support for implementation, there are currently insufficient conditions to realise the project in Sweden.”

Global: The Global Cement and Concrete Association (GCCA) has launched its ‘Cement and Concrete Industry Net Zero Action and Progress Report 2025/6’, which reports a fall by 25% in CO₂ intensity of cementitious products since 1990 and sets out policy measures needed to accelerate decarbonisation. The report was launched at COP30 in Belem, Brazil.

The report highlights more than 60 decarbonisation projects across alternative fuels, alternative raw materials, carbon capture, renewable energy and recycled concrete. Examples include Fletcher’s Golden Bay plant and JSW’s Nandyal and Shiva plants. Publicly announced projects are collated and made available to see on the GCCA/LeadIT green cement technology tracker. The document also calls for policies enabling non-recyclable waste use in kilns, wider adoption of blended products, national carbon pricing mechanisms and the use of construction demolition waste as recycled raw materials.

GCCA president and Heidelberg Materials chair Dominik von Achten said “Our industry is collaborating and innovating across every aspect of our production - finding new ways to work and deploying exciting technologies that are already making a genuine step change. However, to achieve the industrial scale transformation that our world needs, we cannot do it by ourselves - our industry needs the support of governments, policymakers, stakeholders, and our allies across the built environment right now.”

GCCA chief executive Thomas Guillot said “The breadth of activity we are seeing across our membership is truly inspiring, with great examples of projects and work across all decarbonisation levers, where enabling policies exist. Cement and concrete are essential materials for the world, but we know they are also essential to decarbonise. Despite our progress, we know that firm policy action across the world is fundamental to enabling us to accelerate our reductions.”

South Korea: Gangwon-do governor Kim Jin-tae visited Halla Cement’s Gangneung Okgye plant on 13 November 2025 to discuss challenges facing the cement industry amid the country’s ongoing construction slowdown. Governor Kim reviewed progress on the government’s US$682m carbon capture and utilisation (CCU) ‘mega’ project, which aims to capture carbon dioxide from cement plants in Gangneung and Samcheok, as well as nearby coal-fired power plants. The captured CO₂ will be converted into e-methanol for eco-friendly ship fuel, lithium carbonate for secondary batteries, and new construction materials.

Kim said that Gangwon-do’s cement production accounts for 63% of nationwide production. He pledged full administrative support to ensure the project passes its preliminary feasibility study, according to local press. Halla Cement’s Okgye plant has only operated three of its four production lines since 2024, each producing 5500t/day of cement, after reducing output due to weak construction demand.

“There have been some concerns over dust and fine particles,” Kim said. “Cement and power companies have voluntarily signed an agreement to reduce emissions by 46%, and a second reduction agreement will be signed this month. As the industry continues its efforts, the province will actively support it by significantly reducing emission charges.”

Emir Adigüzel warned that cement prices in Europe could triple under current decarbonisation policies. The director of the World Cement Association (WCA) made the comments at a conference in Germany this week. He noted that most of these carbon-related costs will be passed to consumers. His view is that carbon pricing will force price rises across the industry.

That cement prices will rise due to decarbonisation policies is not in itself news. This debate is really about how much and who pays. The WCA's latest analysis asserts that the cement sector will require investment of US$200bn by 2050 to fully decarbonise. Some progress has been achieved so far. Major cement companies reduced carbon intensity from an average of 700kg CO₂/t in 2019 to 640kg CO₂/t in 2023. Adigüzel’s argument is that carbon capture (CCUS) in the cement sector has its place only “if applied correctly.” His view is that these technologies will have a limited effect on global industry decarbonisation as the required investment per cement plant exceeds the capital cost of an entire cement plant. The WCA prefers to promote decarbonisation instead via energy efficiency, alternative fuels, reduced clinker factor and new technologies. That last one includes CCUS but is not limited to it also covering things such as electrification and heat storage. Note today’s news that India-based Adani Cement has ordered a RotoDynamic Heater from Coolbrook. Adigüzel also criticised the European Union’s Carbon Border Adjustment Mechanism (CBAM) in incentivising non-scheme exporters to reduce their carbon footprint, particularly given the expensive investments required.

Decarbonisation is going to be expensive and CCUS is the priciest part of this. Hence, cement producers are likely to consider taking as many measures as possible before implementing CCUS. That cement companies would pass on these costs to consumers also seems likely. The other obvious outcome is that consumers will simply use less cement where possible. Yet Adigüzel doesn’t address how net zero can be achieved with continuing clinker production without using CCUS. His pricing for CCUS is at the right scale though. As Boston Consulting Group (BCG) pointed out in 2024, the cost of CCUS looks set to increase cement prices from US$90 – 130/t to at least US$160 – 240/t by 2050. As well as the capital costs to build a CCUS unit, this includes the additional energy costs required and the price of transporting the CO₂ to a sequestration site. The first two large-scale Heidelberg Materials CCUS projects in Europe, for example, both connect to government-backed transport and sequestration schemes. BCG went on to posit that decarbonisation trends would create five archetypes of cement plants: export hubs and larger plants close to CO₂ storage sites; former export sites far from storage; import grinding hubs; and stranded assets.

Finally, Carbon Brief reported this week that CO₂ emissions in China continued to stay flat in the third quarter of 2025, suggesting a stable or falling trend since early 2024. The adoption of electric vehicles and declines from cement and steel production contributed to the picture in the latest quarter. Emissions from the production of cement and other building materials fell by 7% year-on-year in the third quarter of 2025. This was attributed to the ongoing real-estate contraction. Note that this decarbonisation trend in China has been created by market trends.

Expect plenty more sustainability stories everywhere over the next few weeks as the 2025 United Nations Climate Change Conference (COP30) started this week in Belém, Brazil. The GCCA will be present at a number of events including an update to the Brazil Cement Industry Roadmap on Saturday 15 November 2025

The Global FutureCem Conference on cement industry decarbonisation will take place on 21 - 22 January 2026 in Munich, Germany

Romania: Holcim has won a European Union Innovation Fund grant for its Carbon Hub CPT 01 carbon capture and storage (CCS) project at its Campulung cement plant. The initiative will produce an estimated 2Mt/yr of near-zero cement from 2032, marking Eastern Europe’s first full-scale onshore CCS project, according to the company.

The project, developed with Carmeuse as a key partner, will capture CO₂ from kiln flue gases, compress it and transport it for permanent underground storage. Holcim said the project supports the EU’s Clean Industrial Deal and advances its NextGen Growth 2030 strategy.

With this grant, Holcim now has eight large-scale EU-supported carbon capture, utilisation and storage (CCUS) projects, located in Belgium, Croatia, France, Germany, Greece, Poland and Romania.