US: Lhoist will raise the price of its lime products by US$0.2/t for every US$0.05 rise in its natural gas costs above US$2.6/MMBtu from 1 November 2021. The producer says that the price rise reflects supply challenges and increased costs, of which energy costs have risen most significantly.

The producer said “We regret having to implement this energy surcharge, but believe it necessary in the face of these energy-related cost increases. Additionally, please note that this surcharge is independent of and in addition to 2022 price increases that will be necessary for Lhoist to keep pace with general inflationary factors impacting its cost structure.” It added “We appreciate your business and cooperation during this difficult time. If you have any questions regarding the above, feel free to contact your Lhoist sales representative.”

Nigeria: Finland-based Wärtsilä has extended its operation and maintenance agreement with Lafarge Africa by another five years. The agreement covers the 100MW Ewekoro power plant, which provides a dedicated supply of electricity to the company’s concrete and cement manufacturing processes. The extension of the deal was signed in July 2021 and it follows a previous 10-year agreement. The scope of the agreement includes the operating crew, performance guarantees, plant availability and spare parts.

The captive Ewekoro plant was supplied and commissioned by Wärtsilä in 2011. It consists of six Wärtsilä 50DF dual-fuel engines, operating primarily on gas, but with the flexibility to automatically switch to liquid fuel in case of a disruption to the gas supply. The engines are also designed to function efficiently with a low-pressure gas supply, a necessity given the region’s vulnerability to supply interruptions.

“We have benefited significantly from the efficient way by which Wärtsilä has operated and maintained this plant for the past 10 years, and we had no hesitation in extending the agreement for a further five years. An uninterrupted reliable supply of electricity is essential to our production, and having our own power plant, built, operated and maintained by Wärtsilä, gives us this assurance,” said Lanre Opakunle, Strategic Sourcing Director, Power & Gas, Middle East & Africa, Holcim.

Wärtsilä has also supplied Lafarge Africa with another 100MW power plant located in Mfamosing.

Turkey: Sanko Holding subsidiary Çimko Çimento has agreed to acquire several assets from Sabanci Holding subsidiary Çimsafor US$127m. The Dünya newspaper has reported that the deal covers two cement plants – the Nigde plant and Kayseri plant – the Ankara grinding plant and seven ready-mix concrete plants.

US: California Governor Gavin Newsom has signed a bill requiring the California Air Resources Board (CARB) to develop a plan by mid-2023 for the state’s cement producers to achieve net zero emissions of greenhouse gases by the end of 2045 at the latest. A 40% reduction compared to 2019 levels would also be required by the end of 2035 with interim targets set beforehand. CARB will also be obliged to ‘define a metric for greenhouse gas intensity,’ monitor emissions data, set a baseline to measure emissions reduction progress, evaluate measures to support market demand and financial incentives to encourage the production and use of low-carbon cement amongst other actions.