World: The total volume of CO₂ emissions released during cement production have more than doubled over the past 20 years, a study has revealed. In 2021 CO₂ emissions from the manufacture of cement came to 2.6Bnt, more than 7% of all emissions, according to Robbie Andrew, a greenhouse gas emissions scientist at the CICERO Center for Climate Research in Norway and the Global Carbon Project. In 2001 the CO₂ emissions from cement production were just 1.2Bnt.

Driven by China, the global cement sector’s CO₂ emissions have now more than tripled in the 30 years since 1992, recently increasing by 2.6% a year. The drivers are not just that more cement is being made, but that the CO₂ intensity of production has risen by 9.2% per tonne, according to the International Energy Agency. This is due to a switch from production in mature markets to developing ones, with China again a dominant factor.

Canada: Holcim subsidiary Lafarge Canada has announced that its Bath cement plant in Kingston, Ontario, is in the process of converting to the production of Holcim’s OneCem product, a low CO₂ Portland Limestone Cement (PLC) alternative. The plant currently makes general use (GU) cement.

"As the leader in the cement industry in eastern Canada, we are committed to developing our green portfolio and advancing towards a sustainable future, with OneCem as a step on the journey," said Andrew Stewart, Vice President for Cement at Lafarge Eastern Canada.

Robert Cumming, Head of Sustainability & Public Affairs for Eastern Canada, said "From 2018 to 2021 we have saved more than 140,000t of CO₂ by converting GU cement to OneCem in our plants across Ontario, Quebec and Nova Scotia - the equivalent to taking 42,891 cars off the road. With the recent conversion of the Bath Plant's GU production to OneCem, these numbers will continue to grow."

Canada: Lafarge Canada’s Richmond cement plant, one of the largest in British Columbia, has temporarily cut production, exacerbating a cement and concrete shortage in Vancouver, where some building firms have been forced to halt projects. The Richmond plant has been operating at limited capacity since a fire in the pre-heater tower on 31 May 2022.

Local press reported that the Richmond plant was ‘undergoing electric repairs to an isolated area,’ according to an emailed statement from the company. The company added "We expect to resume full production capacity shortly and are leveraging our strong production and supply network in an effort to minimize impact to our customers."

US: Eco Material Technologies, a producer of sustainable cementitious materials, has opened its Kirkland Pozzolan Mine in Yavapai County, Arizona. The 40-hectare site is one of the largest natural pozzolan mines in the US.
"We are excited for the opening of the Kirkland Pozzolan Mine, which will benefit not only Yavapai County but all of Arizona as well as the surrounding region," said Grant Quasha, CEO of Eco Material Technologies. "Without the support of elected officials, including Governor Doug Ducey, Senator Mark Kelly, State Senator Karen Fann and State Representative Quang Nguyen, we would not be celebrating this milestone achievement."

The event also recognised the hard work and dedication of the plant's employees, as well as Eco Material's contributions to the area including bringing wireless internet service to the surrounding community, planting new trees and generating significant tax revenue for the state.

France: Low-CO₂ cement manufacturer Hoffmann Green Cement Technologies has signed an exclusive partnership with IBAU Hamburg to build all future Hoffmann Green Cement units.

As the general contractor for the second production site (H2) currently under construction at Bournezeau, France, IBAU Hamburg also will be responsible for the exclusive management and construction of the third production site (H3) in Dunkirk, France. It will also build international sites, to be established at a number of locations in Europe and, subsequently, outside of Europe. IBAU Hamburg will handle the entire construction process for each project, from the design stage to the completion of the unit. All of the units will be built entirely with Hoffmann Green decarbonated and clinker-free cement.

Liberia: The International Finance Corporation (IFC) has announced a US$21.1m financing package for Fouta Cement, Liberia's second-largest cement supplier. The IFC said the move is to help increase local manufacturing and infrastructure development in Liberia and reduce the country's reliance on imported construction materials.
The financing package will help Fouta Cement to build and operate a 0.35Mt/yr clinker grinding plant in Monrovia, the Liberian capital. The financing package consists of a loan of up to US$5.4m from IFC's own account, a US$10.8m loan from the International Development Association's Private Sector Window Blended Finance Facility (IDA PSW BFF), and a loan of up to US$5m to be mobilised from Bank of Africa United Kingdom.

“IFC's partnership with Fouta Cement comes at a critical time for Liberia as it recovers from the economic effects of Covid-19 and seeks to meet the longstanding infrastructure needs of the country,” said Sérgio Pimenta, IFC's Vice President for Africa. “The investment is also IFC's largest in Liberia in recent years and is a strong show of support for the country's private sector and growth.”

Uzbekistan/Kazakhstan: Uzbekistan-based Bekabadcement, part of United Cement Group (UGC) Holding, has become a partner in a key project to build a 350km international transport corridor connecting Uzbekistan and Kazakhstan, to be financed by the Asian Development Bank.

The company’s products are well known domestically for their use in the construction of major infrastructure facilities, such as the construction of transport corridors and modernisation of irrigation systems in Uzbekistan and Kyrgyzstan, as well as the rebuilding of the Baikonur Cosmodrome in Kazakhstan.

Boral admitted this week that high energy costs in Australia had forced it to reduce production levels. Chief executive officer Zlatko Todorcevski revealed to Reuters that the company was temporarily cutting back some unspecified areas of its operations. He also said that it was going to have to pass on growing energy prices directly on its customers.

This has followed mounting alarm at fuel prices in successive financial reports by the building materials company leading to revised earnings guidance being issued in May 2022. Bad weather was responsible for the larger share of the expected additional adverse impact to underlying earnings in its 2022 financial year but around US$10m was anticipated from rising fuel prices. Growing coal and electricity prices were said to be impacting its production and logistics costs, with price rises in January and February 2022 having proved insufficient to keep up with inflation. In a trading update in March 2022 the company said that its exposure to coal prices was unhedged for the second half of its 2022 financial year, to June 2022.

An energy crisis in Australia may seem hard to understand given that the country is one of the world’s biggest exporters of coal and gas. Yet, the country has faced a number of problems with its electricity generation sector in 2022 with disruptions to coal supplies to power stations, outages, ongoing maintenance and a cold winter that adversely affected the market. This led the Australian Energy Market Operator to suspend the country’s main wholesale market on 15 June 2022 in an attempt to stabilise the supply of electricity. New South Wales has also reportedly forced coal mines to prioritise the local market over exports. Energy minister Chris Bowen even asked the residents of New South Wales to try and reduce electricity use in the evenings in an attempt to prevent blackouts. However, with the consumer electricity market now looking more stable, attention has turned to industrial users such as Boral.

Global Cement Weekly has covered energy costs for cement producers a couple of times in the last year. There has been plenty of angst about growing energy costs on cement company balance sheets since mid-2021 as the logistics problems following the lifting of the coronavirus-lockdowns became clear. The biggest story at this time was an energy crisis in China that caused supplies to be rationed to industrial users. This then intensified with the start of the war in Ukraine in February 2022 and energy prices went up everywhere as economic sanctions were imposed upon Russia. One standout was Turkey where cement producers publicly raised the alarm about jumps in coal prices.

Recently, some North American lime producers such as Lhoist North America and the Mississippi Lime Company have been notably bold in announcing price rises due to energy costs and other factors. This week, for example, Lhoist North America said it had raised the price of its lime products by up to 45%. It cited the ‘challenging circumstance’ for all parties at an ‘unprecedented’ time. One alternative to the direct approach of simply putting up prices has been the use of energy surcharges. Japan-based Taiheiyo Cement announced earlier in June 2022 that it was going to introduce a coal surcharge for its cementitious products in September 2022 due to rising energy prices. Its system is based on the coal price with revisions planned every two months. The scheme will run for one year in the first instance. How customers will react to this remains to be seen.

We have looked above at a few disparate examples of the problems that energy costs have been causing cement and lime producers over the last month. These issues look set to continue in an acute phase while the war in Ukraine rages on, but the longer term trends from the economic recovery from coronavirus will undoubtedly last for longer. As examples in Australia and China have shown, local energy crises can easily spill over into the industrial sector as domestic users are prioritised. So, even if cement companies source their supplies carefully, they may face issues if the wider market struggles. Meanwhile, cement producers face the dilemma of justifying price rises to customers adapting to mounting inflation. Taiheiyo Cement has shown one way of doing this. The problems caused by surging energy prices to other cement companies look set to become more apparent in the next few months as reporting of the first half of the year emerges.

Greece: Titan Cement has appointed Marcel Cobuz as the chair of its executive committee. He will succeed Dimitri Papalexopoulos in the post from 15 October 2022. Papalexopoulos, in turn, will become the chair of the board of directors, succeeding Efstratios-Georgios Arapoglou.

Cobuz, a French and Romanian national, has worked for Holcim and its associated companies for over 20 years. He joined Lafarge Group in 2000 and has held various leadership roles in Europe, Asia, the Middle East and Africa. He later became the Europe Region Head for LafargeHolcim from 2018 to 2021. Prior to his time at Lafarge, Cobuz started his career in investment banking at Creditanstalt Investment Bank and worked as an entrepreneur in Romania. He studied law and economics in Bucharest, completed an Advanced Management Program at Harvard Business School and has attended executive programs at INSEAD, the IMD Business School and Singularity Group.

France: Holcim France has announced its successful industrial-scale production of the world's first 100% recycled clinker. The La Tribune newspaper has reported that the company's Altkirch, Alsace, cement plant produced the clinker. Holcim France chief executive officer Francois Petry said that the plant's team collaborated with researchers at the Holcim Innovation Center to develop a recipe that incorporated multiple waste streams, including mineral wastes and wood ash. The producer says that most of the waste materials were locally sourced.