Displaying items by tag: Cemex
Spain: The large taxpayers unit of the Tax Agency has imposed a Euro63m fine on Cemex España for issues relating to past tax payments. The El País newspaper has reported that the fine follows an investigation of the company’s corporation tax payments between 2010 and 2014. The agency previously imposed a Euro456m fine on Cemex in 2011 for inflating its losses between 2006 and 2009.
In the two and a half years since Calix brought together cement producers across corporate and national boundaries to form the first Low Emissions Intensity Lime And Cement (LEILAC-1) consortium and commissioned a carbon capture installation at the Lixhe cement plant in Belgium on 10 May 2019, carbon capture and storage (CCS) has passed some major milestones. New installations have made Global Cement headlines from Canada (at Lehigh Cement’s Edmonton plant in November 2019) to China (at a China National Building Material (CNBM) plant in July 2021). Twelve other European cement plants now host current or planned carbon capture trials – including the first full-scale system, at HeidelbergCement’sBrevik plant in Norway. A second Calix-led project in Germany, LEILAC-2, attracted Euro16m-worth of funding from the European Union in April 2020.
The work of LEILAC-1 – backed by HeidelbergCement, Cemex, Lhoist, Tarmac and others, with Euro12m in funding – set the benchmark in innovation. Its pilot plant successfully captured 100% of 'unavoidable' process emissions by indirectly heating raw materials inside a vertical steel tube. Called direct capture, the model removes a CO2 separation step, as our subsequent price analysis will reflect.
1) Both limestone and raw meal may be processed;
2) CO2 is successfully separated;
3) The energy penalty for indirect calcination is not higher than for conventional direct calcination.
Additionally, Calix’s first departure into the cement sector has demonstrated that its model exhibits no operational deterioration, does not suffer from material build-up and has no impact on the host plant when used in cement production. The plant’s clinker capacity remained the same as before the trial. Most importantly of all, the Lixhe cement plant recorded no process safety incidents throughout the duration of the trial.
The study has also put an evidence-based price tag on industrial-scale CCS at a cement plant for the first time: Euro36.84/t. Figure 1 (below) plots the full-cycle costs of three different carbon capture installations at retrofitted 1Mt/yr cement plants using 100% RDF, including projections for transport and storage. Installation 1 is an amine-based carbon capture system of the kind installed in the Brevik cement plant’s exhaust stack; Installation 2 is the Calix direct capture system and Installation 3 consists of both systems in combination. Direct capture’s costs are the lowest, while the amine retrofit and the combination installation are close behind at Euro43.68/t and Euro43.25/t respectively.
Figure 1: Full-cycle costs of three different carbon capture installations at retrofitted 1Mt/yr cement plants using 100% RDF
Installations 1 and 3 both entail additional energy requirements for the separation of CO2 from flue gases and air. With the inclusion of the CO2 produced thereby, the cost of Installation 1 rises to Euro94/t of net CO2 emissions eliminated, more than double that of Installation 2 at Euro38.21/t. The combination of the two in Installation 3 costs Euro67.3/t, 76% more than direct capture alone. Figure 2 (below), breaks down the carbon avoidance costs for each one and compares them.
Figure 2: Carbon avoidance costs of three different carbon capture installations at retrofitted 1Mt/yr cement plants using 100% RDF
The Global Cement and Concrete Association (GCCA)’s seven-point Roadmap to Net Zero strategy puts CCS at the forefront of concrete sector decarbonisation. CCS is expected to eliminate an increasing share of global concrete’s CO2 emissions, rising to 36% in 2050 – by then 1.37Bnt of a total 3.81Bnt. This will depend on affordability. Calix’s model has reduced the capital expenditure (CAPEX) of a carbon capture retrofit by 72% to Euro34m from Euro98m for the amine-based equivalent. When built as part of a new plant, the CAPEX further lowers to Euro27m. Both models may also be retrofitted together, for Euro99m. In future, Calix expects to install direct capture systems capable ofachieving Euro22/t of captured CO2. By contrast, the cost of emitting 1t of CO2 in the EU on 11 October 2021 was Euro59.15.
In what it calls the Decade to Deliver, the GCCA aims to achieve a 25% CO2 emissions reduction in global concrete production between 2020 and 2030, in which CCS plays only a minor part of less than 5%. LEILAC-1 presents a visionof affordable carbon avoidance which complements cement companies’ 2030 CO2 reduction aspirations.
Unlike conventional CCS methods, however, direct capture only does two thirds of a job – eliminating the emissions of calcination, but not combustion. This would appear to make it unsuited to cement’s longer-term aim of carbon neutrality by 2050 in line with the Paris Climate Accords’ 2°C warming scenario. On the other hand, direct capture is not designed to work alone. Calix recommends use of the technology in conjunction with a decarbonised fuel stream to eliminate the plant’s remaining direct emissions. This increases the price - by 47% to Euro56.05/t of CO2 avoided for biomassand by more than double to Euro104.48/t for an E-kiln.
The Lixhe cement plant’s carbon capture story is one of a successful crossover from one industry into another: Calix previously applied the technology in the Australian magnesite sector. Realisation of the Calix carbon capture vision in the global cement industry is a challenge primarily due to the scale of the task. It will require continued collaboration between companies and with partners outside of the industry. Further than this, parliaments must continue to enact legislation to make emission mitigation the economic choice for producers.
Cemex USA carries out US$8m cement terminal upgrades in Florida
12 October 2021US: Cemex USA has upgraded two Florida cement terminals, the Pensacola and Palm Beach terminals, at a cost of US$8m. The upgraded terminals will serve to increase Cemex USA’s cement supply to the region through marine shipments from its global operations. The Palm Beach terminal is also involved in the distribution of assorted cementitious materials including granulated blast furnace slag (GBFS) and fly ash for cement production.
USA executive vice president Matthew Wild said “Florida is growing rapidly, and Cemex’s strong network makes our company well-positioned to implement supply chain and operational enhancements to meet the high demand for building materials in Florida and beyond.” He added “On the cement side, increased demand has outpaced supply at times, and we expect our supply chain enhancements to help alleviate that issue.”
Cemex’s senior debt security released
12 October 2021Mexico: Cemex has announced the release of the collateral on its debt under its main bank agreement and senior secured notes. The release follows Cemex’s reporting of two consecutive quarters with a consolidated leverage ratio of 3.75x or less.
CFO Maher A-Haffar said “We are very pleased with this momentous milestone, which is a culmination of the substantial strengthening of our capital structure and paves the way towards an investment grade rating. This will simplify our debt structure and reduce the cost of managing our debt stack.”
Cemex counts cost of Covid-19 in 2021
08 October 2021Mexico: Cemex CEO Fernando Gonzalez has estimated that the impacts of the Covid-19 outbreak will cost the group US$100m in 2021. Gonzalez attributed the anticipated negative effect on full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) to supply chain disruptions and currency effects, especially on the Mexican Peso, as well as delays to projects globally.
Poland: Cemex Poland has established a new 50kW solar power plant at its Pruszków ready-mix concrete production plant in Masovian Voivodeship. The company says that it is planning other investments to retrofit renewable energy systems into its operations across Poland.
Materials director Michał Grys said “Cemex is actively addressing the climate challenge by decarbonising our processes. The key to realising our ambitious goals is finding and implementing new low-emission products as well as more sustainable technologies and construction solutions.” He added “Photovoltaic farms are another investment by Cemex Poland in renewable energy sources. Currently, much of the electricity used in our aggregate quarries, cement plants and many concrete plants comes from renewable sources."
Mexico: Cemex has received validation from the Science-Based Targets Initiative (SBTi) for its 2030 global CO2 emissions reduction targets. The validation attests that the targets conform with the Paris Agreement’s well-below 2°C global warming limit. Under its Future in Action programme, Cemex aims to reduce its cement’s carbon footprint to 40% compared to 1990 levels and achieve 55% renewable energy use by 2030. The company says that it has the global cement industry’s most ambitious 2030 targets.
CEO Fernando Gonzalez said “Climate action is the biggest challenge of our times. Cemex is taking decisive action to address it by defining ambitious emissions reduction targets in line with the SBTi, and executing against those targets.” He added “We commit to continue leading the industry in climate action not only because it creates value, but more importantly because it is the right thing to do. Cemex is building a better future, and that future must be sustainable.”
José Manuel Cascajero Rodríguez elected as president of Oficemen
06 October 2021Spain: Oficemen, the Spanish cement association, has elected José Manuel Cascajero Rodríguez as its president. He succeeded Víctor García Brosa, general director deputy to the chief executive officer (CEO) of the Cementos Portland Valderrivas Group, in the role. Cascajero Rodríguez has been in post since July 2021.
Cascajero Rodríguez has worked for Cemex for over 20 years in a variety of roles. His international career began in 2005 in the UK, as the Director of Treasury for Europe and Asia, and in 2012 he was appointed Corporate Treasurer of Cemex in Mexico. Since 2016, he has been responsible for Strategic Planning for Europe, the Middle East and Asia, a position he combines with the presidency of Cemex’s Spanish operations. He holds a degree in Business Administration and Management from the Complutense University of Madrid, and a Master of Business Administration degree from ESCP Europe in France.
UK: Global building materials supplier Cemex UK has launched its Buildings Made Better range of renovation and refurbishment products and services. The company says that the range offers customers easy access to low carbon, energy efficient or water-conserving building solutions. It includes a wide selection of existing and new products including its Vertua low carbon concrete. The producer said that the solutions support the construction phase and the whole lifecycle of the building.
Cemex Materials West Europe quality and product technology director Steve Crompton said “The renovation of existing buildings can lead to significant energy savings for all, as buildings account for over 40% of energy consumed. More than 220m buildings in Europe, representing approximately 85% of the building stock built before 2021, will mostly still be standing in 2050, yet currently only 1% of buildings undergo energy-efficient renovation each year. The energy performance of buildings is a major area for improvement in public policies, for new build and the renovation of the existing stock. From residential housing, to public buildings and urban schemes, across the board, we’re demonstrating to our customers that by improving the built environment, we can significantly improve our natural environment too.”
He added “Concrete has a critical role to play in the transition to a low-carbon economy. We have the aspiration to deliver net zero CO2 concrete globally by 2050, which will contribute to the development of climate-smart urban projects, sustainable buildings and climate resilient infrastructures. By bringing together a comprehensive range of sustainable products that support the important area of retrofit, we are offering our customers easy access to the right products for the job whilst keeping the environment front of mind.”
Ready Mix USA receives two Tennessee Concrete Association Emerald Awards for Environmental Excellence
24 September 2021US: The Tennessee Concrete Association (TCA) has awarded Emerald Awards for Environmental Excellence to two Ready Mix USA concrete plants. The TCA awards the prize to member plants which demonstrate environmental leadership, maintain sound environmental management practices and implement environmentally friendly upgrades or plant procedures. Ready Mix USA's Boone's Creek plant in Johnson City earned the award in the Small Plant category, while its Morristown Plant in Morristown earned the Mid Plant category award.
President Marc Tyson said "At Ready Mix USA and Cemex USA, we strive to be good environmental stewards and look for opportunities to improve our processes and operations to be even more sustainable and environmentally friendly." He added "We are proud of the achievements at Ready Mix USA, and we remain dedicated to leading positive change for our industry."