GC: "How does Lafarge measure the embodied CO2 levels of its UK cement offering?"
BP: "We measure the embodied CO2 of our cements on a cradle-to-gate basis. That is from mining the raw materials out of the ground to the cement truck or train leaving the cement works because that is what we are in control of. There are recognised factors for transport that the Department for Environment, Farming and Rural Affairs (DEFRA) publishes every year for reporting greenhouse gas emissions. These can be added to our cradle-to-gate figures because that factor will vary with the distance between the cement works and the end-user."
"We include electrical energy usage and the fuels that are used at the cement works, the CO2 cost of running the company's offices, the amount of company car and flight miles and how we deal with waste packaging and other materials."
GC: "How does Lafarge UK account for materials arriving at its cement production sites?"
BP: "We produce most of our material, i.e. the limestone, at our own quarries next to our works so that CO2 cost is included in that of the cement works. If we are buying something, for example slag for our Cemergi cement brand or fly-ash for our Phoenix cement brand, we have to rely to some extent on our suppliers."
"There are industry-recognised values for the embodied CO2 of these materials, like blast-furnace slag and fly-ash, to which we can add on transport factors for the transportation between the supplier and our cement works."
GC: "The company has fairly bold CO2-reduction targets to 2020, aiming to reduce embodied CO2/t by 33% compared to 1990 levels. How does the company intend to reduce its CO2 output to just 518kg/t in the next eight years? (606kg/t CO2 in 2011).
BP: "There are three ways we can do that. Firstly we can make the cement-making process more efficient and therefore use less energy. That's good business sense as well as being environmentally responsible. We are looking more and more at alternative fuels and raw materials, which are usually by-products of other industries. These obviously have lower embodied CO2. The best way to lower our process CO2 is alternative fuels. We use shredded tyres, biomass, recycled solid waste and liquid fuels, meat and bone meal and a whole range of other fuels. That covers the process side."
"The next thing we can look at is the composition of our cement - that's the next big bite. The big contributor to the CO2 is the OPC clinker and we therefore aim to reduce the amount of clinker in our cement whilst ensuring that we still meet the needs of our customer base. That's where our Cemergi and Phoenix brands come in and to a lesser extent our Portland limestone cement. OPC has an embodied CO2 level of around 860kg/t whereas Cemergi is about 460kg/t
(2010 figures)."
"For Phoenix it's 650kg/t (2010 figures) because we are using fly-ash there instead of slag. Obviously the more of these types of cement we can produce compared to OPC, the lower our average CO2/t level will be."
"Finally, the third element is what our research and development team is doing to create fundamentally new ways of making cement with lower embodied CO2. These initiatives are at various different points in the research and development cycle but we are hopeful that at least one will be commercialised in the future."
GC: "How much OPC does Lafarge produce in the UK compared to the newer types of cement?"
BP: "In the UK in 2010 (the most recent year for which full data is available) more than half of our cement was non-OPC. We are leading the industry in that regard and that is over both bagged and bulk cement."
"With regard to the bag channel, we undertook extensive market research several years ago to understand the needs and applications that end-users of bagged cement had. The result was that we completely re-engineered our product range to more closely align with end user needs and application. Consequently, OPC plays a minor role in our product range although it is still available for those who require it in the form of our Procem brand."
"In our bulk cement product range we currently have over 33% low-CO2 cements and this has been increasing over the last few years."
GC: "Can you describe how Cemergi and Phoenix are different from other CEM II and CEM III cements? Are they just brand names?"
BP: "They are brands in the UK and we always brand when we are offering the marketplace something unique. If I take Cemergi first, we are currently producing the only CEM III/A in the UK. It's been on the market for about two years now and has a minimum of 50-53% ground granulated blast-furnace slag."
"As well as lower CO2, it has a lot of practical benefits for use in concrete such as lower heat of hydration, sulphate-resistance and chloride resistance, which can be problematic not just on the coast, but also on roads where icing salts are used."
"Phoenix, which is 30-35% fly-ash (CEMII/B-V), also has these benefits although it was launched as far back as 1979 from our (now closed) Weardale works in County Durham. What's new with Phoenix is that instead of being a localised brand around Weardale, it's a national brand. We have made significant investments to facilitate the production of Phoenix at six different locations across the UK. We can now produce Phoenix at locations closer to the market, which is different to the past and to other producers."
GC: "Apart from the chemical resistance are they particularly suited to the UK market?"
BP: "We used to say that in the UK we had tonnes and tonnes of fly-ash due to our long history of coal-fired power stations. From Phoenix's conception it was developed to use a UK-specific waste and turn it into a value-added product. We have less fly-ash about at the moment because the coal-fired power stations are closing and gas-fired power stations are opening up but we have enough."
"Today we actively manage our fly-ash sources and have joint-ventures with large power generators and tend to form links with those stations that we think have got a long future. We also have a specific fly-ash manager in the organisation to manage this specific area of our business."
"From the perspective of our other clinker additives, there is plenty of limestone so that's not a problem. Blast furnace slag is from the steel industry and you might take a view that in the long term there may be less of that. We might well have to look at other cementitious waste materials that are currently unused. That will also help to keep our costs down, which is something that every business is looking to do in the current climate."
GC: "What is the difference in price between Lafarge's OPC and Cemergi/Phoenix?"
BP: "Price is a very complex variable that is influenced by many factors so it is extremely difficult to generalise but both Cemergi and Phoenix are priced based on the value they deliver to our customers."
"At the moment downstream construction activities aren't willing to pay a premium for low CO2 solutions. It's a big buzzword but what they are looking at is the cost of the grey powder in their concrete. We are looking all the time at improving the performance of Cemergi and Phoenix on a number of performance parameters."
GC: "Let's move onto Lafarge's 20 Rules for Sustainable Construction. For the most part they are not related directly to cement. Where do the rules originate?"
BP: "They are a group-wide initiative to recognise that everybody needs to be more joined-up in their approach to sustainability in construction. They are not explicity linked to cement but cement will feed into many of them, especially those that talk of thermal mass. At the moment, thermal mass means concrete, which means cement. The concrete can give benefits and the cement has a role in that."
GC: "Will that role be diminished in the future?"
BP: "At the moment there is no practical alternative to cement. There are lots of new ideas coming out but none of them can replicate it and be produced all over the world. Three requirements for any new global cement are something that can be made; i) in large quantities, ii) all over the world, iii) at low cost. There is nothing forthcoming at present."
"In the meantime we will do everything we can to reduce the CO2 level of our cement."
"I suppose the answer to your question depends on the timeframe. The future of the cement industry is bright in the short to medium term but it is difficult for any of us to predict how it may develop or alter in the distant future. Legislation-driven targets on sustainability will no doubt bring changes to the way the industry operates currently but Lafarge Cement is in a strong position to
accommodate these."
GC: "Does Lafarge have any way of implementing or otherwise assessing the effectiveness of the rules?"
BP: "The rules run all the way from design right through to aesthetic elements. We can try to influence at the trade association level and make people look at the whole design of new constructions. We can look at the rules through the Concrete Centre, which is part of the UK Mineral Products Association (MPA) and influence designers and architects."
"We can try to influence our customers, mainly concrete producers, to take lower CO2 cement and they can influence their customers to take lower-CO2 concrete. That way a lower-CO2 mentality can trickle through the supply chain because sustainability needs to be included at all stages. For true sustainable construction you need to look at the whole process from building design right through to operation and use."
GC: "How is the current economic situation affecting Lafarge UK?"
BP: "The recession has slowed growth in all UK industries and we all know that construction is no exception. While our sales have stabilised since 2008, I'm pleased to say there is still demand for our products to facilitate the many projects which are still being completed in the sector. We have robust plans in place to respond to economic changes and are confident the business will weather the changing climate."
"We have closed the works at Northfleet, Kent, which had been running out of reserves anyway. We stopped cement production at Westbury, which was an older cement works and therefore we have reduced our capacity, to meet the situation that we are in."
"The prediction is that 2012 will prove to be flat compared to 2011, possibly even with a slight reduction. Overall market demand for cement has dropped by circa 35-40% and we have experienced a similar drop. We have positioned ourselves as a business to reflect what we think will be a flat economy for the next few years. We are not predicting any massive upsurge in demand."
GC: "Were the cuts in production roughly in proportion with the drop in demand seen?"
BP: "Well Northfleet was a big works, producing 2Mt/yr. The proportions are probably fairly close."
GC: "Are there any major projects that are providing a good level of long-term demand for Lafarge UK?"
BP: "We aren't full of confidence, although the nuclear power stations and wind farm programmes provide hope. Equally, UK infrastructure needs investment if money can be found. What we have done in the current economic climate is to focus even more on our customers and provide them with what they want
and need."
GC: "How will Lafarge's much-publicised global geographical restructuring affect the UK operation?"
BP: "That has happened effectively already within the UK. There is a lot more integration between the various different parts of Lafarge within the UK since we have an executive board in the UK and we have a UK President."
GC: "Thank you for your time."
Below: Lafarge facilities in the UK.
1. Cookstown Works County Tyrone, N. Ireland. Built: 1968. Capacity: 0.5Mt/yr. |
2. Dunbar Works East Lothian, Scotland. Built: 1963. Capacity: 1Mt/yr. |
3. Hope Works Derbyshire, England. Built: 1929. Capacity: 1.3Mt/yr. |
4. Cauldon Works Staffordshire, England. Built: 1957. Capacity: 1Mt/yr. |
5. Aberthaw Works South Glamorgan, Wales. Built: 1914. Capacity: 0.55Mt/yr. |