Displaying items by tag: Plant
Cemex inaugurates restarted kiln at cement plant in Dominican Republic
08 September 2022Dominican Republic: The President of the Dominican Republic, Luis Abinader, has inaugurated the kiln of a restarted production line at the San Pedro de Macorís cement plant. The US$34m upgrade project was started in 2021. The line has a clinker production capacity of 0.5Mt/yr and it has been restarted to support the local market. The announcement follows the start of a project to use hydrogen at the unit that began in late August 2022. The plant also plans to increase its use of alternative fuels, move to using more CO2-free materials and increase its use of additives over the next five years.
Honduras: Argos Honduras is set to start a new hydrogen injection process at its integrated Piedras Azules cement plant. During the process, water molecules are split using electricity into hydrogen and oxygen and then injected into the kiln through the main burner. The main objective of this technology is to reduce the use of fossil fuels, CO₂ emissions levels and energy consumption at the plant.
Luis Eduardo Tovar, the manager of Argos Honduras, said “We are proud to be committed to innovation and new technologies that allow us to keep our operation at the forefront of the industry. This project has allowed us to reduce our C0₂ emissions and optimise our processes to become increasingly efficient."
A pilot was previously conducted in conjunction with Portugal-based UTIS. It showed that by using the technology the plant could increase its clinker production and reduce petcoke consumption.
Electricity supplies to cement plants in Europe
07 September 2022Cembureau called for urgent action on electricity prices from European governments this week to protect cement plants. Its maths was crushingly simple. One tonne of cement takes around 110kWh of electricity to produce. Electricity prices started to top Euro700mWh in some European Union (EU) countries at the end of August 2022. The association says that this represents added costs of Euro70/t of cement and a tripling of the total cost of production. This kind of sudden extra cost to cement production could lead to the widespread closure of cement plants and lead to chaos in the construction supply chain.
Previously, Cembureau reported in 2020 that electricity accounts for about 12% of a cement plant’s energy mix. In a dry production process plant 43% of this is used for cement grinding, 25% goes into raw material preparation, another 25% on clinker production and the final portion is typically used for raw material extraction, fuel grinding and for packing and loading. However, the cost of the electricity can make a big difference to the overall energy bill for a cement plant. When a report by the European Commission’s (EC) Joint Research Centre (JRC) modelled a reference northern European cement plant with a production capacity of 1.0Mt/yr back in 2016, it concluded that the EU cement industry was spending around half of its energy costs on electricity compared to smaller ratios at plants in China, Egypt, Algeria and... Ukraine. That last country in the list is poignant given its unwitting participation in the current energy crisis. One other thing to note is that cement producers, as large scale users, may well be paying less than the wholesale prices Cembureau appears to be quoting.
The timing of Cembureau’s proclamation is pertinent because the EU and individual states have mostly been waiting until the autumn before revealing their energy support plans. However, the dilemma for Cembureau, and other industry lobbying groups, is how to protect their sectors whilst domestic consumers are threatened. The aftermath of the coronavirus lockdowns has shown what can happen when production of key commodities stops: supply chain disruption, shortages and price rises. One ironic shortage in the UK during the lockdown periods was that of CO2, as high gas prices forced the main producer to shut down, leading to unexpected knock-on problems along the supply chain in areas such as food production. The same situation is reportedly at risk of happening again now too.
Cembureau’s wider solution is to link domestic and industrial consumers of electricity. So, some of its suggestions to policymakers are to use all available means of power generation, implement emergency measures such as price caps immediately, change the rules of the electricity market more generally to prevent future price shocks and to promote large scale renewable power source development. These are all things that could help both individual and industrial users of electricity.
Compare and contrast, then, with the MPA’s (Mineral Products Association) approach to the same problem in the UK. Its strategy instead has been to ask the UK government for tax cuts and freezes and to hurry along the forthcoming policy on support for Energy Intensive Industries. That’s not to say that Cembureau’s suggestions don’t also include some sector specific requests. It has asked that the EU temporary state aid framework adopted in late March 2022 should allow all energy intensive industries to have access to state aid covering 70 - 80% of eligible costs. It has also encouraged the wider use of alternative fuels, although it doesn’t link the reason why beyond reducing imports of fossil fuels. Lastly, it bangs the drum for its recent preoccupation, the EU Carbon Border Adjustment Mechanism, this time adding electro-intensity as a main criterion for eligibility for compensation under EU emission trading scheme (ETS) indirect state aid guidelines.
Government support packages for the energy crisis are starting to be announced in European countries but the question for everyone is whether they and other actions will be enough. One problem for the cement industry will be simply staying on the radar of policy makers facing a crisis looming over their citizens. Yet if there is not enough energy to go around then rationing of some kind will be inevitable and heavy industrial users will be the first obvious targets to be told to cut back. Some months later building material supply shortages will hit. One national cement sector to watch in the coming months may be the Spanish one as it has long warned of the risks of high electricity prices.
UK: Tarmac has appointed Craig Kirkland as the plant manager of Tarmac’s integrated Dunbar plant in Scotland. Kirkland first started working for the subsidiary of Ireland-based CRH in the mid-1990s as its Landfill & Recycling Manager. He later became its Commercial Manager in 2015 before becoming the Head of Transformation at the Dunbar plant in 2021.
Holcim completes sale of Brazilian assets to CSN
07 September 2022Brazil: Holcim has closed the sale of its business in Brazil to Companhia Siderúrgica Nacional (CSN) for an enterprise value of US$1.025bn. The deal was closed following approvals from the Brazilian authorities. This transaction includes Holcim’s five integrated cement plants, four grinding units, six aggregates sites and 19 ready-mix concrete facilities.
Holcim said that Latin America remains a core strategic growth region for the group. In the first half of 2022 it completed a new cement production line in El Salvador and significantly expanded its aggregates operations in El Salvador, Ecuador and Colombia. The company also continued to expand its Disensa retail network across the region with over 2000 stores now open across eight countries.
Agreement to build new Kyrgyz plant
07 September 2022Kyrgyzstan: A new cement plant project has been announced for Kyrgyzstan’s Chuy region. The country’s Ministry of Economy and Commerce said that a signing ceremony for an Investment Agreement to implement the project was held between the Cabinet of Ministers of Kyrgyzstan and a consortium comprising representatives from Terek-Tash and ZENIT on 6 September 2022. When built, the plant will have a capacity of 1.5Mt/yr with a total investment cost of around US$150m.
Belgium: Cembureau, the European Cement Association, has called for urgent action to be taken to support cement production due to large increases in the cost of electricity. It said that, if no measures were taken at both the European and national level, the current energy prices would lead to widespread plant closures across the European Union (EU). This in turn could create a crisis in the construction supply chain. It explained that one tonne of cement normally takes around 110kWh of electricity to produce. Therefore, with electricity prices now between Euro700 - 1000mWh, as observed in several EU member states, electricity costs amount to Euro70 – 110/t of cement, tripling the total cost of production.
The association has called for: all available sources of electricity generation to be used to boost power supplies; the immediate introduction of emergency measures, such as price caps; that the EU temporary state aid framework adopted in late March 2022 should allow all energy-intensive industries to have access to state aid covering 70 - 80% of eligible costs; and that co-processing in cement kilns should be actively encouraged and promoted at EU, state and local levels.
It added that further measures should also be considered, including: the electricity market design rules, including the marginal price setting mechanism, should be changed to prevent further electricity price hikes in the future; the cement sector should be made eligible for financial compensation under the EU emission trading scheme indirect state aid guidelines and that indirect emissions should be included in the EU Carbon Border Adjustment Mechanism (CBAM); the large-scale deployment of renewable energy should be supported across the EU; and that the pace of the EU climate agenda ('Fit for 55') should be maintained, and the CBAM should be implemented in a timely manner.
Cementa facing further hurdles to extend operating permit for Slite plant beyond 2022
06 September 2022Sweden: The Environmental Protection Agency (Naturvårdsverket) and the county administrative board of Gotland have both recommended rejecting Cementa’s application to extend its operating permit for its integrated Slite cement plant by four years. At present the current temporary permit will expire at the end of 2022, according to the Dagens Industri newspaper. The county administrative board has requested more information and Naturvårdsverket has found issues in the application with groundwater and nature protection area issues.
Cementa says that it submitted it application to the Land and Environment Court in April 2022 and that it was deemed complete by the court, which announced the application. In July 2022, opinions were received from around 10 authorities and associations, such as the Geological Survey of Sweden (SGU), Naturvårdsverket and the Norwegian Sea and Water Authority. Cementa added that it has now responded to this feedback.
“There are and must be high requirements for permit applications, so it is natural that there will be many views and questions in this type of examination,” said Karin Comstedt Webb, vice president of HeidelbergCement Sweden. “We have now clarified the application further and are now looking forward to the main hearing in October 2022. We are confident that our application is complete and we have been keen to show even more clearly that the business can be conducted in coexistence with nearby residents, and surrounding environmental and natural values. We see good conditions for the timetable announced by the court to be kept, which is crucial for the Swedish cement supply not to be jeopardised in the coming years.”
Further views on the application will be submitted in September 2022. The Land and Environment Court will then hold a hearing in October 2022 and a final decision is expected the end of 2022.
Birla Corporation aiming for 30Mt/yr cement production capacity by 2030
05 September 2022India: Birla Corporation plans to increase its cement production capacity to 30Mt/yr in 2030 from 20Mt/yr at present. It made the proclamation in its annual report for the 2021 – 2022 financial year. Recent developments include the inauguration of its 3.9Mt/yr integrated plant at Mukutban in Maharashtra, run under its RCCPL subsidiary. It is the group’s fourth integrated plant and is reportedly the largest single cement production line in the state. The unit also includes a 40MW captive power plant.
Other developments include plans to expand the capacity of its Kundanganj grinding plant in Uttar Pradesh to 3Mt/yr from 2Mt/yr and a plan to build a new 1.2Mt/yr grinding plant at Gaya in Bihar. The group is also increasing production from its captive coal mines. Output from the Sial Ghoghri coal mine has been increased by 20% above its rated capacity to 30,000t/month. Development of the Bikram coal mine has been advanced and production is expected to start in mid-2023. Finally, the group is adding 8MW of solar power capacity at its Chanderia, Satna and Kundanganj plants in the current financial year and a 10.6MW waste heat recovery (WHR) unit is planned for the Mukutban plant.
Sichuan Yadong Cement plant restarts following heat wave
05 September 2022China: Sichuan Yadong Cement’s plant in Sichuan has restarted production following a suspension of electricity to industrial users due to a heat wave. The local authorities stopped supplying industrial plants in late August 2022. The subsidiary of Taiwan-based Asia Cement Corporation also reduced staff levels at the plant to cope with the extreme weather event.