Displaying items by tag: CO2

Norway: Oil and gas industry engineering firm Aker Solutions has won a contract to test and study the capture of CO₂ from flue gas emitted at Norcem's cement plant in Brevik, Norway. The award from the HeidelbergCement subsidiary, in cooperation with the European Cement Research Academy (ECRA) marks the first time technology to capture CO₂ will be used at a cement production plant.

Aker Solutions will perform long-term testing on the actual flue gas to select optimum chemical solvent for high content CO₂ flue gas at the plant. Tests will be performed with Aker Solutions' in-house developed Mobile Test Unit (MTU). The MTU is a CO₂ capture plant that includes all processes and functions found in a large scale commercial plant.

ECRA members chose Norcem Brevik as the site for ECRA operational CO₂-capture test project. The project is supported and partly financed by the CLIMIT programme, which is managed by Gassnova in cooperation with the Research Council of Norway.

Aker Solutions has developed CO₂-technology solutions since the early 1990s. A separate company, Aker Clean Carbon, was established in 2007 as a company under Aker ASA to commercialise carbon capture technology. Aker Solutions took full ownership of Aker Clean Carbon in 2012 and carbon capture and storage activities are an integrated part of Aker Solutions.

The Mineral Products Association (MPA), which looks after the interests of the cement industry (and other allied industries) in the UK, has said that it welcomes a temporary tax-freeze relating to climate change announced in the UK Budget of 20 March 2013. The MPA singled out the decision to freeze the indexation of the Aggregates Levy until April 2014 and the decision to introduce the Climate Change Levy mineralogical and metallurgical exemption for energy-intensive industries such as cement and lime.

Both of these moves by UK Chancellor George Osborne have been welcomed because they bring some relief to the UK cement industry and wider construction activities. MPA members make money from such activites and any potential cost that can be eliminated or delayed, even for a short time, is welcome amid the current slump that is the UK economy. This is especially true as the UK weathers the one of the longest and most severe winters for 50 years. So far, so much sense.

However, how does this reaction to the Climate Change Levy exemption tie in with the MPA's February 2013 announcement that it thinks that the UK cement industry's total CO₂ emissions should be reduced by 81% by 2050? What should UK cement producers make of this?

The MPA's cement industry CO₂ reduction targets are certainly bold. On the face of it, they look achievable given the progress that has been made to date by the UK cement industry, although much is left to the imagination as to which areas could and should contribute most to the reduction target. The 81% reduction target includes the successful future commercial development of carbon capture and storage (CCS) technologies. It also relies on an increased proportion of renewable sources for the electricity that the cement industry will receive in 2050, something else that is totally out of the industry's control.

However, much hard work has already been done by cement companies in the UK. As in other EU countries and developed nations, total dust and toxic emissions have fallen dramatically in the UK cement industry since 1990. The country's alternative fuel substitution rate has now hit ~40%. Yet, as the MPA highlights in its document detailing the targets for 2050, much of the low-hanging fruit has already been taken. Further reduction in overall CO₂ emissions will be significantly affected by both regulations and cement company progress. 

Cement companies can increase their consumption of 'wastes' and fit waste-heat recovery systems. Through such measures they can achieve further reductions in emissions. Some kilns have hit alternative fuel substitution rates of 100% for limited periods and examples from the near continent show that 80% alternative fuels can be the norm. However, unlike these 'bottom-up' approaches, which can be introduced at a plant in a period of months, regulations take years to evolve and come into force, often involving slow and lengthly debate by politicians, associations and consumers.

To discourage the government from seeking to impose stricter environmental regulations for the cement industry by welcoming the exemption, is the MPA undercutting its own calls to reduce CO2 emissions in the UK cement industry? From a cement producer's perspective, it looks like the MPA could hold two contradictory opinions on the same subject: that you can welcome reductions in climate regulation while also calling for stricter emissions regulations. This phenomenon was famously termed 'double think' by George Orwell in his classic novel '1984,' but the MPA's situation is far more subtle. Often the regulators and those being regulated can agree on the same target but not on how that target should be reached. The next 37 years will show whether or not this target is even possible.

UK: The Minerals Products Association (MPA) has welcomed measures in the UK government's 2013 budget that will help boost the outlook for the cement industry and the wider mineral products and construction sectors. The MPA singled out the decision to freeze the indexation of the Aggregates Levy until April 2014 and the decision to introduce the Climate Change Levy mineralogical and metallurgical exemption for energy intensive industries such as cement and lime.

"The government is clearly listening and understands that investing in infrastructure and construction is key to securing growth. The issue remains of ensuring that cash flows into action on the ground to help improve confidence and induce private sector investment, which is needed to accelerate growth in demand," said Nigel Jackson, chief executive of the MPA.

UK: Building materials producer Hanson, a UK-based part of Germany's HeidelbergCement, has launched a new range of quality concretes designed to reduce the CO₂ emissions associated with construction projects. The EcoPlus range contains Hanson Regen, a sustainable substitute for Ordinary Portland Cement (OPC) in concrete. Hanson Regen is a ground granulated blastfurnace slag (GGBS) and can replace up to 70% of the OPC content. Replacing 1t of OPC with 1t of Regen in EcoPlus concrete reduces the embodied CO₂ by around 850kg.

Paul Lacey, Hanson's head of sustainability and marketing, said, "EcoPlus is designed to help engineers, specifiers and contractors meet current and future environmental legislation. Our online carbon calculator shows the CO2 savings that can be made by specifying one of our eight standard EcoPlus mixes, which are suitable for foundations, pavements and structural projects. We can also design and supply bespoke mixes."

Using Regen in EcoPlus also improves the durability of structures, particularly where sulphates and chlorides are an issue, and gives a lighter, more aesthetically pleasing colour to the concrete.

As 2012 draws to a close the challenges posed by the Australian carbon tax to the Australian cement industry are starting to show. First, Holcim Australia announced it was to lay off 150 staff. Then Boral released the news that it was planning to cut 90 jobs at its Waurn Ponds cement plant.

Following years of debate the Gillard government introduced the Clean Energy Act in July 2012. Heavy polluters were initially charged US$23/t of CO₂ emitted, more than twice the cost of similar schemes in Europe where it is US$10/t. A key criticism of the scheme was that it would damage the Australian domestic cement industry with cheap imports. However the Australian government cushioned the move with compensation packages for major polluters, including cement producers, currently set to last five years.

Although the Australian cement industry hasn't totally collapsed, with the loss of 1800 jobs as the Australian Federal Opposition warned of in 2011, imports have been favoured in recent months. Boral's suspension of clinker production at Waurn Ponds will increase imports. The change will result in 25-30% of Boral's clinker being imported. It's worth noting that Boral pointed out in its press release that this was 'in-line' with the Australian industry.

Adelaide Brighton, the country's third biggest producer after Holcim and Boral, may not have laid anybody off but it has secured a 10-year supply of foreign clinker. On 5 December 2012 the building materials producer announced that it was going to a buy a 30% stake in Malaysian white clinker and white cement producer, Aalborg Portland Malaysia. In the accompanying press statement the company's chief financial officer explicitly blamed the carbon tax as one of the reasons for the acquisition.

Whether the job losses at Boral and Holcim can be totally blamed on the carbon tax remains to be seen. Boral's second-half profit for the year ending 30 June 2012 suffered a fall of 59% to US$35.7m. Holcim noted weaker demand outside of mining regions for the third quarter of 2012. By contrast, Adelaide Brighton reported steady gains in its half-year report for 2012 although cement sales only increased 'marginally'. Elsewhere in its report Adelaide Brighton stated that it would cope with the impact of the carbon tax by reducing reliance on domestic manufacturing. These can hardly be comforting words for the Australian cement industry.

UK: French multinational cement producer Lafarge has been named in a list of top ten companies surrendering offsets into the European Union's (EU) emissions trading scheme (ETS) by environmental campaign group Sandbag. According to Sandbag's report 'Help or Hindrance? Offsetting in the EU ETS,' Lafarge purchased 181,425 certified emissions reduction (CERs) credits in 2011.

Carbon offsetting by the European cement sector grew by 246% in 2011 compared to 2010 figures. Carbon offsetting by all European companies grew by 85% in 2011. The companies policed by the EU's Emissions Trading Scheme (ETS) submitted a total of 254 million credits to offset 13% of their carbon emissions. Sandbag's report observed that the majority of these offset credits were due to be banned from the scheme in 2013.

Lafarge surrendered 181,425 credits in 2011, HeidelbergCement surrendered 101,314 credits in 2008, Miebach Gruppe surrendered 65,813 credits in 2011, Colacem surrendered 59,756 credits in 2009 and Italcementi surrendered 37,867 credits in 2010. Sandbag did not report the breakdown of so-called 'grey' and 'green' credits for the cement industry.

"Offsetting was supposed to be a price containment measure to ensure that carbon prices didn't rise too high, but carbon prices have remained low due to excess supply in the market. Offsets are contributing significantly to this oversupply and are now depressing prices so low that the EU ETS almost ceases to have a function," said Rob Elsworth, policy officer at Sandbag.

Mexico: Cemex has been named by the Carbon Disclosure Project (CDP) as the best Latin American company in terms of climate change data disclosure and one of the top ten in overall carbon emissions performance.

The rankings were announced during the launching of the CDP's latest report, CDP Investor Latin America 2012, which comprises data on the emissions of greenhouse gases from 32 major companies in Argentina, Brazil, Chile, Mexico, and Peru. The CDP is a UK-based independent non-governmental organization that possesses the world's largest database of self reported climate change data.

According to data released by Cemex, the company achieved a 22.7% reduction on CO₂ net emissions per ton of cement produced in 2011 relative to its 1990 baseline. Cemex's rate of alternative fuel use rose to approximately 25% in 2011, an improvement from its rate of 20.3% in 2010. Cemex is on track to reach its 2015 target of 35% alternative fuels substitution rate.

UK: Lafarge has marked its 10th year of sustainability reporting in the UK with the release of its 2011/2012 Sustainability Reports.

Lafarge says that it has made significant investment in developing its sustainable credentials. Waste and water consumption have been cut by 92% and 88% respectively in the cement business since reporting began in 2001. The latest reports also show major advances in the reduction of emissions to air, an increase in the amount of material being moved by rail, greater bio-diversity in its landholdings and improvements in health and safety performance.

"Despite the economic downturn and challenging conditions in the construction market in recent years we have continued to invest in, and demonstrate our commitment to sustainability across, our UK businesses," said, the president of Lafarge UK, Dyfrig James.

Key highlights of the 2011 Sustainability Report for Lafarge Cement, which covers the period 2009 - 2011 inclusive in the UK include:

1. A 17% reduction in CO2 emissions through increased usage of sustainable, waste-derived fuels such as waste tyres and solid recovered fuel (SRF) in manufacturing processes.

2. A 17% reduction in the use of electricity driven by the implementation of Lafarge Cement's 'Golden Rules of Energy Management.'

3. A 26% cut in emissions to air in 2011.

4. Major reductions in waste production, with 76% of all non-hazardous waste sent off site now being recycled.

5. Progression in the regeneration of landholdings including granted approval for the creation of a mixed-use community including 500 new homes at the former Northfleet Works.

6. Significant improvements in health and safety performance, including a 31% decline in first aid instances in 2011 and Cookstown Works achieving a global record of 10 years with no Lost-Time Incidents (LTIs).

7. Piloting of independent water footprint assessments at a number of plants to identify ways to increase efficiency of water use.

8. Winning the Environment Agency Water Save Award for the Cauldon Shale Lake Project – the creation of a closed loop water system to recirculate water for gas conditioning and industrial cooling at Cauldon Works.

9. Growth in sales of lower CO2 packed cements from 51% in 2009 to 54% in 2011.

Lafarge also made improvements in its extensive UK ready-mix concrete operations, which saw a 30% reduction in the CO2 emissions resulting from concrete production compared to figures recorded in 1990 and a 16% reduction in CO2/t between 2010 and 2011.

According to government advisors cement producers pay more in the UK than other nations for their electricity and it's getting worse.

A Department for Business, Innovation and Skills (BIS) report published on Friday 13 July 2012 has shown that firms in the UK will be forced to pay an extra Euro36 in green taxes on top of the market price they pay for every megawatt hour of electricity by 2020 due to climate policies. This compares with Euro22 in Germany, Euro20 in Denmark, Euro19.3 in France and Euro12.7 in China.

As the Mineral Products Association (MPA) put it, "...cement is an internationally traded commodity and, if it costs more to make it here than to import it, then we are threatening a strategic indigenous manufacturing industry for no environmental gain." Or to put it more bluntly, if the cost of importing cement from France to the UK is less than the energy saving then say 'goodbye' to the UK cement industry. The issue raises one of the core problem of any carbon tax in a global economy. If your neighbours don't have the same tax as you then they can undercut you. Similar arguments rage in Australia and the US.

The UK will be the first country with legally binding targets for greenhouse gas emissions beyond 2020, with a pledge to introduce a carbon floor price of Euro19.98/t in 2013. As Edwin Trout explained in his recent article in Global Cement Magazine on the British Cement Industry in 2011 and 2012 the government took steps to address this in November 2011 with a Euro318m package for energy-intensive industries. Unfortunately as the MPA has now pointed out, the cement industry is ineligible for the first Euro140m of this package because the EU has ruled against such support for the sector in relation to the EU Emissions Trading Scheme.

Unsurprisingly alternative fuels trials are thriving in the UK, such as that at Lafarge UK's Aberthaw plant, which celebrates 100 years of operation this weekend.

UK: The Mineral Products Association (MPA) has demanded that the UK government protect the domestic cement industry from rising electricity costs. The comments came in the MPA's response to a Department for Business, Innovation and Skills (BIS) report has stated that electricity bills for UK manufacturers were higher than other key nations because of environmental regulation.

Commenting on the BIS report the MPA said that the new data confirmed what it had been telling the government since 2011. The MPS added the report clearly shows that the UK cement industry must receive some help if it is to survive and supply the UK's low carbon economy.

"The Government now has the evidence to corroborate the industry evidence," said Nigel Jackson, chief executive of the MPA. "It is time for them to respond and take the action we have been urging them to take for so long and to come forward with their long awaited Energy Intensive Industries Strategy."

The BIS report stated that electricity bills for UK manufacturers were higher than other key nations because of climate change levels. It added that by 2020, green taxes will be double those in other EU nations and many times higher than those in the US. According to the report firms in the UK will be forced to pay an extra Euro36 in green taxes on top of the market price they pay for every MWH of electricity by 2020 due to climate policies. This compares with Euro20 in Denmark, renowned for its renewable energy drive, Euro19.3 in France, Euro22 in Germany, Euro12.7 in China and a fall in the US and Russia.

In its response to the BIS report, the MPA stated that the UK cement industry had reduced its CO2 emissions by 57% since 1990 confirmed its commitment to tackling climate change. It approved of the government's 2011 autumn statement to compensate some energy intensive industries against electricity costs by Euro318m. Yet it also pointed out that the UK cement industry will not qualify for a share of the first Euro140m of this because the EU has ruled against such support for the sector, in relation to indirect costs associated with the EU Emissions Trading Scheme.