Displaying items by tag: Cementa

Sweden: The Swedish Transport Association (ST) has arranged with Cementa for the supply of ‘climate-enhanced’ cement for the completion of an expansion of the Malmö – Lund Southern Main Line between Arlöv and Lund, including an underground section and three new stations. The company first concluded the contract with ST in 2017 and has since supplied normal Ordinary Portland Cement (OPC) to the major infrastructure project. It has now agreed with the client to switch to ‘climate-enhanced’ OPC produced at its 2.5Mt/yr integrated Slite cement plant, which burns over 60% alternative fuels in its kiln lines, for production of the remaining 65,000m³ of concrete required for the project. Cementa southern district manager Jenny Larsson said, “This project is in line with Cementa’s climate-enhanced vision for infrastructure.”

Sweden: The Land and Environmental Court has ruled in favour of Cementa for the renewal of its extraction licence for its quarry near the 2.5Mt/yr integrated Slite plant in Gotland. The company says that the decision ensures the continued operation of the cement plant. “We see this as confirmation that it is possible to continue limestone extraction without jeopardising water security or harming protected areas or species,” said Cementas CEO Magnus Ohlsson. “This gives us peace of mind and the chance to focus on future work in order to further develop sustainable cement production in Slite.”

Sweden: A failure on a conveyor belt between the kiln and a mill at the end of October 2019 has caused a ‘significant’ loss of production at Cementa’s Slite plant. The subsidiary of Germany’s HeidelbergCement says that a temporary solution is in place but that the unit’s capacity has been reduced. Repair work is expected to continue until the end of November 2019. The cement producer said that deliveries of its Basement product would be reduced while it looks for an external supplier to bolster supply.

Sweden: The Land and Environment Court will hear the dispute over Cementa’s licence to work a limestone quarry near its Slite plant in Gotland on 30 September 2019. The company has stated the supply of stone from the quarry is essential to the existence of the 2.5Mt/yr integrated cement plant. It is seeking to extend the permit, which expires in 2021, to 2041.

Sweden: Cementa has started using a gas-powered truck for bulk cement deliveries. The Volvo FH460 LNG will use the Skövde cement plant as its main base and delvier cement to customers in the west of the country. Typically gas-powered vehicles in Sweden use a mixture of 50% biogas and 50% natural gas, although this may change is greater amounts of biogas become available. The truck is owned and operated by Tommy Bremans Åkeri in Skövde, a supplier to XR Logistik.

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.

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

Sweden: Cementa says that it plans to stop production of cement and clinker at its Degerhamn cement plant at the end of April 2019. The subsidiary of Germany’s HeidelbergCement said that it made the decision due to low profitability at the site and tightening environmental regulations.

The unit will continue to be used as a terminal and port operations will carry on at the site. Microcement will also continue to be made at the plant. The site’s quarry permit will be withdrawn but Cementa will continue to own the land and it will be gradually be restored. Six staff members will work at the site and a new site manager, Tommy Pettersson, has been appointed.

Sweden: HeidelbergCement’s subsidiary Cementa has completed a feasibility study into electrifying its cement plant at Slite in Gotland as part of its Cemzero project. A report from the first phase of the project has been submitted to the Swedish Energy Agency.

The study found that using electricity to supply heat during the clinker production process is possible using plasma technology, although this needs to be tested on a larger scale. Using an electrified process was found to be competitive compared to other options for achieving high reductions in carbon emission. The production cost of cement would be doubled approximately but the research suggested that this might only mean a small percentage increase to the end cost of a building or an infrastructure project. Finally, the study reported that any future electrification of the Slite plant would work well with a planned expansion to wind turbine generation at the site. It would improve the energy balance and reduce the maximum power surplus that might occur.

Cementa and energy company Vatenfall will now look at how to build a pilot plant.

More details from HeidelbergCement this week on its divestment strategy. It has sold its half-share in Ciment Québec in Canada and a minority share in a company in Syria. A closed cement plant in Egypt is being sold and it is working on divesting its business in Ukraine. Altogether these four sales will generate Euro150m for the group. Chairman Bernd Scheifele said that the company expects to rake in Euro500m from asset sales in 2018. It has a target of Euro1.5bn by the end of 2020.

In purely cement terms that is something like seven integrated plants. So the usual game follows of considering what assets HeidelbergCement might consider selling. The group offered a few clues in a presentation that Scheifele was due to give earlier this week at the Commerzbank German Investment Seminar in New York.

First of all the producer said that it was hopeful for 2019 due to limited energy cost inflation, better weather in the US, the Indonesian market turning, general margin improvement actions and sustained price rises in Europe. It then said that its divestments would focus on three main categories: non-core business, weak market positions and idle assets. The first covers sectors outside of the trio of cement, aggregates and ready-mix concrete. Things like white cement plants or sand lime brick production. Countries or areas it identified it had already executed divestments in included Saudi Arabia, Georgia, Syria and Quebec in Canada. Idle assets included depleted quarries and land.

The first obvious candidate for divestment could be the company’s two majority owned integrated plants in the Democratic Republic of Congo. These might be considered targets due to the political instability in the country. However, this is balanced by the potential long-term gains once that country stabilises. Alternatively, some of the plants in Italy seem like a target. The company had seven integrated plants, eight grinding plants and one terminal in 2018.

The presentation also pointed out the sharp rise in European Union (EU) Emissions Trading Scheme (ETS) CO₂ emissions allowances, from around Euro5/t in 2017 to up to Euro20/t by the end of 2018. In late 2018 Cementa, a subsidiary of HeidelbergCement in Sweden, said it was considering closing Degerhamn plant due to mounting environmental costs. The group reckons it can fight a high carbon price through consolidation, capacity closure, higher utilisation, limited exports and pricing. It also pointed out that it is a technology leader in carbon reduction projects. It will be interesting to see how environmental costs play into HeidelbergCement’s divestment decisions.

Finally, a tweet by Sasja Beslik, the head of sustainable finance at Nordea, flagged up a few cement companies as being the worst companies for increasing CO₂ emissions between 2011 and 2016. HeidelbergCement was 19th on the list after LafargeHolcim and CRH. Sure, cement production makes CO₂ but it’s far from clear whether the data from MSCI took into account that each of these companies had expanded heavily during this time. In HeidelbergCement’s case it bought Italcementi in 2016. Cement companies aren’t perfect but sometimes there’s just no justice.

Sweden: Cementa’s Skövde plant working on project to optimise its grinding process and reduce the clinker factor of the cement it produces. The project is looked at grinding limestone separately as opposed to grinding it with clinker and gypsum, which it currently does. The plant is using a mill it only uses occasionally to grind the limestone to the desired size. A full-scale trial was run in the autumn of 2018. Products from the trial are now being tested at a laboratory.