Displaying items by tag: Cemex

UK: Carbon capture systems developer Carbon Clean has raised US$150m in its largest funding round to date. US-based energy company Chevron Corporation led the round, with participation from Cemex venture capital subsidiary Cemex Ventures, Marubeni Corporation, WAVE Equity Partners, AXA IM Alts, Samsung Ventures, Saudi Aramco Energy Ventures and TC Energy.

As a result of the new funding, Carbon Clean says that it will now scale the production of its CycloneCC fully modular carbon capture technology, increase investment in research and development grow its team to meet ‘exponential’ demand growth for its products.

Mexico: Cemex has expanded its Executive Variable Compensation program, which includes progress on its carbon reduction goals as a variable, to cover over 4500 executives. The initiative is part of the company's Future in Action program, which focuses on reducing the carbon footprint of Cemex's operations and products to become a net-zero CO2 company by 2050. From the start of 2022, the CO₂ emissions component will have an impact that will range from -10% to +10% in the total cash payout of the annual executive variable compensation.

Mexico: Cemex intends for its Vertua products to account for over half of all of its cement and concrete sales by 2025. The Vertua range was launched in 2020 and its cement and concrete products accounted for 34% and 31% of total sales respectively in the first quarter of 2022. Vertua products have a CO₂ reduction of at least 25% compared to traditional cements. For concrete the CO₂ reduction ranges from 30% up to a full net-zero option.

References for Vertua concrete include La Marseillaise, a skyscraper in Marseille, the HS2 high-speed railway in London, the Querétaro-Irapuato highway in Mexico, the San Diego State University stadium in California and the Pereira shopping centre in Colombia. Vertua cement and concrete products have been launched in Colombia, Croatia, the Czech Republic, the Dominican Republic, Egypt, France, Germany, Guatemala, Mexico, Panama, the Philippines, Poland, Puerto Rico, Spain, the US, the UK and the UAE.

US: Cemex USA has applied for a permit to continue mining at Dowe Flats to support operations at its integrated Lyons cement plant in Colorado. It has asked the Boulder County Community Planning and Permitting department to allow it continue mining for 15 years until 2037, according to the Daily Camera newspaper. It then says it will close the cement plant. Its existing mining permit will end later in 2022.

US: The Portland Cement Association (PCA) has received the 2022 Energy Star Partner of the Year award from the Environmental Protection Agency and the Department of Energy. This is the third year in a row that PCA has earned this award.

"We are proud to have won this award for the third consecutive year. This latest award confirms our commitment to reducing cement sector CO₂ emissions through longstanding, long-term efforts to improve energy efficiency," said Michael Ireland, president and chief executive officer of the PCA. "This award shows once again that the cement and concrete industries are leading the way toward a more sustainable future, even as demand for our products grows."

The 2022 Energy Star Partner of the Year Award follows the launch of PCA's Roadmap to Carbon Neutrality in October 2021. In addition to PCA's recognition, two member companies also earned awards. CalPortland and Cemex won Partner of the Year awards in the energy management category. This is the fifth year in a row that Cemex has won this award, and the 18th successive year for CalPortland.

Many first quarter financial results for cement producers are out already and what can be seen so far deserves discussion. The first observation is that the sales revenues of Chinese companies have suffered compared to their international peers. As can be seen in Graph 1 (below) CNBM increased its sales slightly in the first quarter of 2022 but Anhui Conch and China Resources Cement (CRC) had significant falls. Stronger results from CNBM’s non-cement production subsidiaries released so far suggest that the parent company’s slow performance is likely due to the cement market. The China Cement Association has reported that national cement output dropped by 12% year-on-year to 387Mt in the first quarter of 2022. It blamed this on the latest local coronavirus wave, limited construction project funds and poor weather.

Graph 1: Sales revenues in the first quarter of 2022 from selected cement producers. Source: Company financial reports. Note: SCG data is for its building materials division only.

Outside of China sales revenue growth has been better with Holcim and Dangote Cement leading the companies presented here. Holcim attributed its success to “strong demand, acquisitions and pricing”. Demand and pricing have been familiar refrains in many of the results reports this quarter. The undertone though has been the destabilising effects upon energy prices by the ongoing war in Ukraine. Holcim’s head Jan Jenisch summed it up as navigating “challenging times, from the pandemic to geopolitical uncertainty.” The producers with operations in the Americas and Europe seem to have coped with this so far mostly due to resurgent markets. Quarterly sales revenue growth for Holcim, CRH (not shown in the graphs) and Cemex each exceeded 10% year-on-year in both of these regions.

The regionally focused companies presented here have suffered more. India-based UltraTech Cement said that its energy costs grew by 48%, with prices of petcoke and coal doubling during the period. Nigeria-based Dangote Cement reported that its group sales volumes were down 3.6% mainly due to energy supply challenges in Nigeria. Internationally, its operations relying on cement and clinker imports – in Ghana, Sierra-Leone and Cameroon – were also hit by high freight rates caused by global supply chain issues. Thailand-based SCG said that national demand for cement demand fell by 3% due to negative geopolitical effects causing inflation, a delay to the recovery of tourism and a generally subdued market.

Graph 2: Cement sales volumes in the first quarter of 2022 from selected cement producers. Source: Company financial reports.

It’s too early to read much into it but one final point is worth considering from cement sales volumes in the first quarter of 2022. They have appeared to fall for the companies that have actually released the data. The reasons for CRC in China and Dangote Cement in Sub-Saharan Africa have been covered above. Holcim’s volume decline was 2% on a like-for-like basis and the others were all very small changes.

To summarise, it’s been a good quarter for those cement producers covered here with operations in North American and Europe. Energy instability caused by the war in Ukraine so far seems to have been passed on to consumers through higher prices with no apparent ill effect. The regional producers have suffered more, with the Chinese ones having to cope with falling demand and the others finding it harder to absorb mounting energy costs and supply chain issues. Plenty more first quarter results are due from other cement companies in the next few days and weeks and it will be interesting to see whether these trends hold or if others are taking place.

Mexico: Cemex recorded consolidated sales of US$3.77bn in 2022, up by 13% year-on-year from first-quarter 2021 levels. The group recorded operating earnings before interest, taxation, depreciation and amortisation (EBITDA) growth of 3% year-on-year, to US$691m. Cemex said that sales growth in its Europe, Middle East and Africa region led the earnings increase, supported by strong underlying demand conditions with robust volume growth in Europe and the US. It recorded double-digit like-for-like price rises across its global operations. During the quarter, group CO₂ emissions fell by 4% year-on-year.

Chief executive officer CEO Fernando González said “We are quite pleased with our first quarter performance despite the unprecedented global macro challenges. Against the backdrop of the worst inflation headwinds in more than 40 years, we achieved strong pricing traction across our products. Given the tight supply and demand dynamics in most of our markets, we are optimistic that we can recover input cost inflation. In addition, our diversified energy, supply chain and Climate Action strategies are paying off and helping us respond to energy cost pressures.”

Regarding the quarter’s sustainability achievements, González said “Our performance gives me great confidence that we can reach not only our 2030 climate goal but also our Net Zero ambition.”

Dominican Republic: Mexico-based Cemex has reopened the second production line at its integrated San Pedro Macoris plant. The decision will add 0.5Mt/yr to the plant’s production capacity bringing its total to 2.5Mt/yr. The decision has been made to support customers in the Caribbean market. Other recent investment in the country by Cemex include new packaging machines, palletisers, hydro combustion, new trucks and tanks.

Jesús González, the president of Cemex South, Central America and the Caribbean said “The reactivation of the production line is a clear example of our commitment to the sustainable development of the Dominican Republic. This investment contributes to the revitalisation of the national economy, promotes exports, reduces the need for imports and supports employment and a more sustainable environment in the country."

Mexico: Cemex has reported its successful completion of laboratory tests aimed at converting CO₂ emitted by cement kilns into carbon nanomaterials. The producer said that it was able to turn 50% of available carbon in a flue gas stream into nanomaterials. Possible industrial uses for carbon nanomaterials include in building materials, biomedicines, electronics and agriculture. Cemex says that its next step will be to scale the technology for a cement plant pilot study.

CEO Fernando Gonzalez said “This breakthrough technology is significant for Cemex, not only because it offers the potential to commercialise carbon emissions, but because it demonstrates the value of our Smart Innovation platform. The path to carbon neutrality will be built with innovation, and we remain committed to being at the forefront in developing new circular technologies and processes.”

Canada: Carbon Upcycling Technologies has secured US$6.15m in financing from a group of companies led by Clean Energy Ventures, Cemex Ventures, Amplify Capital and Oxy Low Carbon Ventures (OLCV). The investment round includes participation from Zero Carbon Partners, Purpose ESG, Clean Energy Venture Group, Fund for Sustainability and Energy, Prithvi Ventures, Bryan Trudel, and Mark and Faye McGregor. Carbon Upcycling intends to use the funding to grow its team and build its second commercial-scale facility in North America, with a production capacity of over 200t/day of its cement and concrete additive. Carbon Upcycling sequesters CO₂ in secondary cementitious materials such as fly ash, which are then used in cement or concrete production.