Displaying items by tag: Electricity

Europe: Cembureau, the European cement association, has calculated that if the European Union (UN) emissions trading scheme (ETS) CO₂ cost reaches Euro90/t then this could represent 12 - 15% of the production costs of cement producers. The association made its calculation for an average cement plant in the region using data from Ecorys, WIFO, the National Institute of Economic and Social Research for the EU Commission and Agora Energiewende.

Cembureau has called for the EU government to delay its proposed ETS free allocation phase-out and to bring forward the implementation of its proposed carbon border adjustment mechanism (CBAM) from 2026. It has called on policy makers to ‘use all the tools available to stabilise market prices, support energy intensive industries through state aid and examine the functioning of the European gas and electricity markets, as well as the EU ETS.’

India: Finance company ICRA reported all-India cement sales in the first half of the 2022 financial year of 124Mt, up by 22% year-on-year. Mint News has reported that the total value of cement sales rose by 5% in the period compared to the first half of the 2021 financial year. Producers’ raw materials costs rose by 16%, while power, coal and petcoke costs rose by 26% and freight costs rose by 7%. Granulated blast furnace slag (GBFS) and gypsum prices also rose.

ICRA corporate ratings assistant vice president and sector head Anupama Reddy said "Despite some easing in the cost-side pressures, the input costs are likely to remain elevated in the near term, and are expected to exert pressure on operating margins, which are likely to decline by 200 to 230 basis points (BPS) in the 2022 financial year as a whole. While the capacity additions are expected to increase year-on-year in the 2022 financial year, the reliance on debt is likely to be lower owing to the healthy cash generation and strong liquidity of the cement companies. The debt coverage metrics are expected to remain strong in the 2022 financial year."

Canada: France-based Fives FCB has secured a contract to upgrade the grinding unit at Ciment Québec’s Saint Basile integrated plant in Quebec. The supplier will install two FCB Horomill grinding workshops with FCB TSV 5000 THF classifiers, FCB aerodecanters and flash dryers and Fives TGT process filters. It said that its mills met the customer’s specifications: namely zero water use; minimum power consumption; data processing; and full automation with rapid recipe change.

Ciments Québec president and chief executive officer Luc Papillon said “After a thorough technical review of the various technologies available today for cement grinding, we have selected the Horomill, being confident that it is the best adapted solution for our multiple cements portfolio and our quest to reduce our cement environmental footprint.”

Spain: Cementos Cosmos plans to scale down the production of clinker at its Córdoba cement plant as a result as the high cost of electricity. The Cordoba Day newspaper has reported that parent company Votorantim Cimentos said that clinker grinding operations at the site will continue to ensure a sufficient cement supply in the region.

The Córdoba cement plant employs 48 people. The company is currently negotiating the situation and the scope of its impacts with the workforce.

Nigeria: Finland-based Wärtsilä has secured another contract for the supply of a 70MW dual-fuel gas-fired power plant to BUA Cement, this time for the upcoming Line 3 of its Obu cement plant in Edo state. The Sun newspaper has reported that the line and a new fourth line at Sokoto cement plant will bring the company’s total cement capacity to 17Mt/yr when commissioned in 2022. BUA Cement is scheduled to commission the Sokoto cement plant’s new Line 3 in November 2021.

Chair Abdul Samad Rabiu said “Currently, we have phased out the use of coal across our factories and are now shifting to gas-powered plants. As we ramp up our capacity, there is need to complement it with efficient power supply and Wärtsilä’s technology has been found to be durable and uniquely aligned with our vision for more efficient power generation at all our production locations.”

UK: Breedon Group has told investors that its consolidated sales in the first ten months of 2021 were Euro1.24bn, up by 31% compared to their levels in the corresponding period of 2020. The group said that its ‘layered hedging policy’ mitigated key commodity cost pressures during the period. As such, it raised its 2021 full-year underlying earnings before interest, depreciation and taxation (EBIT) forecast to more than Euro145m.

Austria: W&P Zement says that it has commissioned an expanded 18GWh Wietersdorf hydroelectric power plant chain on the River Görtschitz in Carinthia. The chain consists of two new power plants and an existing one which the company optimised during a Euro12m project begun in October 2019. Together, the plants will supply 25% of the producer’s Wietersdorf cement plant’s electricity needs.

Technical director Florian Salzer said “With six modern Francis turbines, 18GWh of green electricity are generated in three power plants along the Görtschitz.” He added “That roughly corresponds to the supply for 3600 four-person households.”

Colombia: Dow Jones has named Grupo Argos in its Sustainability Index 2021, the company’s ninth time appearing in the ranking. It achieved its highest ratings in materiality, risk management, environmental reporting, climate change strategy, social reporting and human rights. The group said that the listing constitutes its recognition as the most sustainable cement company in the world. Its sustainable initiatives include offering collection of its used cement bags, supplying all the electricity for its Colombian operations from renewable sources and currently having three credit facilities linked to environmental, social and governance indicators.

Legal and sustainability vice-president Maria Isabel Echeverri said “At Argos, we are greatly satisfied with this result which places us as a world benchmark in sustainability and reassures our commitment to closing gaps and implementing best practices in social, environmental, financial and corporate governance matters. This drives us to continue moving forward in creating social value to build the dreams of housing and infrastructure for millions of people.”

Italy: Buzzi Unicem’s consolidated sales rose by 5.6% year-on-year to US$2.54bn in the first nine months of 2021 from US$2.41bn in the first nine months of 2020. It recorded consolidated cement sales of 23.4Mt, up by 7.5% from 21.7Mt in the corresponding period of 2020. Sales growth in Eastern Europe - especially the Czech Republic and Poland - and the US offset a partial slowdown in Italy, particularly in the third quarter of the year.

The group expects global construction activity to generally remain level into the fourth quarter of 2021. It forecast “favourable” volume and price effects in its full-year results for 2021. It nonetheless noted “growing concern” at rising energy, fuels, logistics, raw materials and services costs in various regions. It forecast group recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) not in excess of 2020 levels.

Iran: The Cement Industry Employers' Association has confirmed that cement plants will store heavy fuel oil to cope with a potential shortage of gas in the winter. The association told the Iranian Labour News Agency that plants had been granted permission to store up to 15 days worth of heavy fuel oil following negotiation with the Ministry of Oil. Fuel storage is a sensitive issue locally due to the potential for misuse in the black market. The cement sector faced gas and electricity shortages earlier in 2021.