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News Aalborg Portland

Displaying items by tag: Aalborg Portland

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Sementsverksmidjan to sell competitor products to address cement shortage

10 November 2021

Iceland: Sementsverksmidjan has decided to sell cement from competitor Aalborg Portland Islandi due to a cement shortage in the country. It said it wants to help the local supply situation after seeking guidance from the local competition authority. Rival company Steinsteypan has made a formal complaint to the regulator. Sementsverksmidjan, a cement importing subsidiary of HeildebergCement, says that it also sold cement supplied by competitors earlier in the year.

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Update on carbon capture in cement, September 2021

22 September 2021

It’s been a good week for carbon capture in cement production with new projects announced in France and Poland.

The first one is a carbon capture and utilisation (CCU) collaboration between Vicat and Hynamics, a subsidiary of energy-provider Groupe EDF. The Hynovi project will see an integrated unit for capturing CO2 and producing methanol installed at Vicat’s Montalieu-Vercieu cement plant in 2025. It aims to capture 40% of the CO2 from the kiln exhaust stack at the plant by using an oxy-fuel method and installing a 330MW electrolyser to split water into oxygen and hydrogen for different parts of the process. The CO2 will then be combined with hydrogen to produce methanol with potential markets in transport, chemicals and construction. The setup is planning to manufacture over 0.2Mt/yr of methanol or about a quarter of France’s national requirement. The project was put forward under a call for proposals by the Important Projects of Common European Interest (IPCEI) program. Pre-notification of its participation in the program has been received from the French government and it is currently being evaluated by the European Commission. Vicat’s decision to choose its Montalieu-Vercieu plant for this project is also interesting since it started using a CO2ntainer system supplied by UK-based Carbon8 Systems there on an industrial scale in November 2020. This system uses captured CO2 from the plant’s flue gas emissions to carbonate cement-plant dust and produce aggregate.

The second new project is a pilot carbon capture and storage (CCS) pilot by HeidelbergCement at its Górażdże cement plant in Poland. This project is part of the wider Project ACCSESS, a consortium led by Sintef Energi in Norway that aims to cut carbon capture, utilisation and storage (CCUS) costs and to link CO2-emitters from mainland Europe to storage fields in the North Sea. The cement plant part in Poland will test an enzyme-based capture method using waste heat at the plant. Another part of the project will look at how the captured CO2 can then be transported to the Northern Lights storage facility in Norway including the regulatory aspects of cross-border CO2 transport. ACCSESS started in May 2021 and is scheduled to end in April 2025. It has a budget of around Euro18m with Euro15m contributed by the European Union (EU) Horizon 2020 fund.

HeidelbergCement also says that the second stage of its LEILAC (Low Emissions Intensity Lime And Cement) project at the Hannover cement plant is part of ACCSESS, with both testing of the larger-scale Calix technology to capture CO2 and the connected transport logistics and bureaucracy to actually get it to below the North Sea. That last point about Calix is timely given that US-based Carbon Direct purchased a 7% stake in Calix in mid-September 2021 for around US$18m. Whilst on the topic of carbon capture and HeidelbergCement don’t forget that the group’s first full-scale carbon capture unit at Norcem’s Brevik cement plant, using Aker Solution’s amine solvent capture technology, is scheduled for commissioning in September 2024. Another carbon capture unit is planned for Cementa’s Slite plant in 2030 but the proposed capture method has not been announced.

Other recent developments in carbon capture at cement plants include Aalborg Portland Cement’s plan to capture and store CO2 as part of the Project Greensand consortium. The overall plan here is to explore the technical and commercial feasibility of sequestering CO2 in depleted oil and gas reservoirs in the Danish North Sea, starting with the Nini West Field. The project is still securing funding though, with an Energy Technology Development and Demonstration Program application to the Danish government pending. However, the Danish Parliament decided in December 2021 to set aside a special funding pool to support a CO2 storage pilot project so this initiative seems to be making progress. If the application is successful, the consortium wants to start work by the end 2021 and then proceed with an offshore injection pilot from late 2022. How and when Aalborg Portland Cement fits in is mostly unknown but a 0.45Mt/yr capture unit at its Rørdal cement plant is tentatively planned for 2027. There’s also no information on the capture method although Aker Carbon Capture is also part of the Project Greensand consortium. Finally, also in September 2021, Chart Industries subsidiary Sustainable Energy Solutions announced that it had selected FLSmidth to help adapt and commercialise its Cryogenic Carbon Capture carbon capture and storage (CCS) system for the global cement industry.

All of this tells the cynics in the audience that a large international climate change meeting is coming up very soon. Most cement companies will likely want some good news to show off when the 2021 United Nations Climate Change Conference (COP26) dominates the media agenda in November 2021. Other observations to point out include that none of the projects above are full-scale industrial carbon capture installations, most of them are consortiums of one sort of another and that they are all subsidised or want to be. While hydrogen and CO2 networks get built this seems inevitable. Yet, we’re not at the stage where cement companies just order carbon capture units from a supplier, like they might a new clinker cooler or silo, without the need for long lists of partners. When this changes then carbon capture looks set to flourish.

On a final note, the UK is currently experiencing a shortage of commercially-used CO2. The reasons for this have nothing to do with the cement industry. Yet consider the constant doom-and-gloom about record global CO2 emissions and the sheer amount of effort going into reducing this by the projects mentioned above and others. Life has a sense of humour at times.

For a view on the CO2 sequestration permitting process in the US look out for the an article by Ralph E Davis Associates, in the forthcoming October 2021 issue of Global Cement Magazine

Published in Analysis
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Aalborg Portland Cement to launch carbon capture and storage project at Rørdal cement plant in 2022

09 September 2021

Denmark: Aalborg Portland Cement will begin construction of a carbon capture and storage (CCS) system at its Rørdal, North Jutland, cement plant. It will collaborate with Project Greensand CCS consortium partners to store the captured CO2 in drained oilfields below the North Sea. The company estimates that the Danish part of the North Sea has 16Gt of CO2 storage capacity, out of 300Gt under all EU waters. The endeavour aims to help Denmark to realise its targeted 70% reduction of CO2 emissions by 2030.

Research and development director Jesper Sand-Damtoft said “The establishment of capture facilities, transformation from carbon to gas and transport to the North Sea all require great investments from a business such as ours, and the realisation of the climate potential thus depends greatly on financial support.”

Published in Global Cement News
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Consortium members sign up to second phase of Greensand carbon capture and storage project

18 August 2021

Denmark: 29 consortium members, including Aalborg Portland Cement, Aker Carbon Capture and INEOS, have signed up to phase two of the Greensand carbon capture and storage pilot project. Proof of concept planning is now underway with a potential start date of around late 2021 subject to securing funding from the government’s Energy Technology Development and Demonstration Program. If successful an offshore injection pilot is scheduled for late 2022.

A majority of the Danish Parliament decided in December 2020 to set aside a special funding pool to support a CO2 storage pilot project, aiming to investigate the reservoir-CO2 interaction in the Danish North Sea. This pilot project, if designed correctly, could form the basis for a decision, to enable CO2 storage by 2025.

Mads Weng Gade, Head of Country, Denmark and Commercial Director INEOS Energy said, “We are taking this step by step. We now have the consortium in place, and if we are successful in receiving ongoing support from the Danish Government and advisory board, Greensand will be able to take another important step forward in supporting the Danish Climate Strategy.”

Published in Global Cement News
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Aalborg Portland increases turnover in 2018

19 April 2019

Denmark: Aalborg Portland Cement increased its turnover by 5% to Euro1.19bn in 2018, from Euro1.14bn in 2017. It attributed the growth largely to acquisitions it made in recent years. It saw its sales drop slightly in Denmark but exports to nearby markets and to the US increased.

Aalborg Portland's profit after tax increased to Euro140m in 2018 from Euro119m in 2017. Its profit margin increased to 12.8% from 12.6%.

Published in Global Cement News
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European Union CO2 emissions data from cement plants in 2018

03 April 2019

The European Union’s (EU) verified CO2 emissions figures were released earlier this week on 1 April 2019. The good news is that no cement plant is within the top 100 largest emitters. All the top spots are held by power plants, iron and steel producers and the odd airline. Indeed, out of all of the verified emissions, cement clinker or lime production only represents 7% of the total emissions. Of course this is too much if the region wants to meet its climate change commitments but it is worth remembering that other industries have a long way to go as well and they don’t necessarily face the intrinsic process challenges that clinker production has. If the general public or governments are serious about cutting CO2 emissions then they might consider, for example, taking fewer flights with airlines before picking on the cement industry.

The EU emitted 117Mt of CO2 from its clinker and lime producers in 2018, a 2.7% year-on-year decrease compared to 120Mt in 2017. This compares to 158Mt in 2008, giving a 26% drop in emissions over the decade to 2018. However, there are two warnings attached to this data. First, there are plants on this list that have closed between 2008 and 2018. Second, there are plants that provided no data in 2018, for example, all the plants in Bulgaria. Climate change think tank Sandbag helpfully pointed out in its analysis of the EU emissions data that industrial emissions have barely decreased since 2012. The implication here being that the drop from 2008 to 2012 was mainly due to the economic recession. Sandbag also made the assertion that 96% of the cement industry’s emissions were covered by free allocations in the EU Emissions Trading Scheme (ETS) thereby de-incentivising sector willingness to decarbonise.

By country the emissions in 2018 from cement and lime roughly correspond with production capacity, although this comes with the caveat that emissions link to actual production not potential capacity. So, Germany leads followed by Spain, Italy, Poland and France. Of these Poland is a slight outlier, as will be seen below.

Plant Company Country CO2 Emissions (Mt)
Górazdze Plant Górazdze Cement (Heidelberg Cement) Poland 2.73
Rørdal Plant Aalborg Portland Cement Denmark 2.19
Ozarów Plant Grupa Ozarow (CRH) Poland 2.01
Slite Plant Cementa (HeidelbergCement) Sweden 1.74
Kamari Plant Titan Cement Greece 1.7
Warta Plant Cementownia Warta Poland 1.55
Volos Plant Heracles General Cement (LafargeHolcim) Greece 1.27
Vassiliko Cement Plant Vassiliko Cement Cyprus 1.21
Małogoszcz Plant Lafarge Cement Polska (LafargeHolcim) Poland 1.18
Kujawy w Blelawach Plant Lafarge Cement Polska (LafargeHolcim) Poland 1.15

Table 1: Top 10 CO2 emitting plants in the European Union in 2018. Source: European Commission.

Poland leads the count in the top 10 EU CO2 emitting cement plants in 2018 with five plants. Greece follows with two plants. This list is deceptive as all of these plants are large ones with production capacities of 2Mt/yr and above. As it contains many of the largest plants in the EU no wonder the emissions are the highest. It is also worth considering that there are far larger plants outside of the EU.

In summary, as most readers will already know, the cement industry is a significant minority CO2 emitter in the EU. Countries with larger cement sectors emit more CO2 as do larger plants. So far, so obvious. Emissions are down since 2008 but this mostly seems to have stalled since 2012, bar a blip in 2017. The change though has been the rising carbon price in the EU ETS in 2018. Coincidentally the carbon price has been fairly low and stable since 2012. If the mechanism is working properly then changes should start to appear in 2019. Already in 2018 a few European cement producers announced plant closures and blamed the carbon price. Watch this space.

The Global Future Cement Conference & Exhibition on low and zero CO2 cement production will take place in Brussels, Belgium on 22 - 23 May 2019

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Aalborg Portland signs five-year transport deal

26 September 2018

Denmark: Aalborg Portland has signed a five-year cement transport deal with Demstrup Autotransport and Silo Trans following a tendering process. The deal covers the producer’s domestic cement distribution of over 1.25Mt/yr. This involves more than 33,000 movements per year. Demstrup Autotransport will be responsible for distribution in North and Central Jutland and Zealand. Silo Trans will handle distribution in Sønderjylland and in Funen.

Published in Global Cement News
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Nothing says I love you like a white cement plant

21 February 2018

HeidelbergCement made Italy’s Cementir Holding its Valentine last week in the form of a deal for the Italian company to buy up the remaining shares in Lehigh White Cement in the US. Cementir takes control of the former joint venture by upping its share to 63.25% for US$107m and one of the other partners, Cemex, increases its share to 36.75% for US$34m. Despite making the announcement on Valentine’s Day HeidelbergCement then described the sale in fairly unromantic language, “As a niche product with small volumes, the standalone production of white cement does not fit to the strategic focus on efficiency of HeidelbergCement.” Maybe they could just send flowers to each other next year instead!

More seriously, this latest deal by Cementir is yet another intriguing evolution of the Italian multinational building materials producer. The company says it is the largest white cement producer in the world through subsidiaries like Aalborg Portland in Demark, Sinai White Cement in Egypt and Lehigh White Cement in the US. Its plant at El-Arish in Egypt is the largest white cement unit in the world. In 2016 it reported a white cement production capacity of 3.3Mt/yr from six plants in Denmark, Egypt, China, Malaysia and the US. Its volume sales of white cement were 2.2Mt at this time or a capacity utilisation rate of 67%. In the US it operates two white cement plants located in Waco, Texas and York, Pennsylvania with a total capacity of 0.26Mt/yr, as well as a distribution network throughout the country, which is also used to distribute white cement imported from its partners across North America. In 2017 Cementir produced 10.3Mt of Ordinary Portland (grey) Cement and white cement, a rise of 24.6% year-on-year from 8.25Mt in 2016. The boost was delivered by the acquisition of Compagnie des Ciments Belges. Like-for-like sales volumes increased by around 1.7% year-on-year.

Cementir left the Italian market in 2017 when it sold Cementir Italia to HeidelbergCement for Euro315m. As this column commented as the time (GCW320) the deal seemed cheap given that HeidelbergCement paid Euro315m for five integrated cement plants plus extras. However, Cementir appeared to actually make a profit on Sacci which it picked up cheaply in 2016.

Now HeidelbergCement has returned the favour by selling Cementir the controlling stake in Lehigh White Cement. The German cement producer may have grumpily rubbished the sale in its press release but the language makes one wonder whether this was a quiet part of the Cementir Italia deal in 2017. The white cement industry is miniscule compared to the OPC one but HeidelbergCement has just handed even more control of it to Cementir. From Cementir’s perspective this probably seems very efficient.

Published in Analysis
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HeidelbergCement sells Lehigh White Cement stake

15 February 2018

US: HeidelbergCement has announced that its subsidiary Lehigh Cement Company has signed an agreement to sell its 51% position in Lehigh White Cement Company to the minority shareholders Aalborg Cement Company and Cemex. Closing of the transaction is subject to customary conditions and is expected during the first quarter 2018. Authorisation by the Antitrust Authority has already been obtained.

Lehigh White Cement Company operates two plants in Waco, Texas and York, Pennsylvania with a combined production capacity of approximately 0.26Mt/yr.

“As a niche product with small volumes, the standalone production of white cement does not fit to the strategic focus on efficiency of HeidelbergCement,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “The disposal is part of our global portfolio review and optimisation with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”

Cemex, via its US subsidiary, will increase its stake from 24.5% to 36.75% when the deal is completed. It will pay US$34.0m. Cementir, via Aalborg Cement, will pay US$107.m for the purchase of a further 38.75% stake. This will take its total share to 63.25% once the deal goes through.

"This acquisition gives us the opportunity to enter the direct management of assets in the US in a segment, that of white cement, which is our core business, strengthening our global leadership consistent with our development strategy," commented Francesco Caltagirone Jr, President and chief executive officer of Cementir Holding.

Published in Global Cement News
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Aalborg Portland inaugurates terminal at Rochefort

21 September 2017

France: Denmark’s Aalborg Portland has inaugurated its terminal at Rochefort. The Atlantic port terminal is intended to supply the west of France, according to the Sud-Ouest newspaper. The terminal has a capacity of 4900t and it has been operational since May 2017.

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