Displaying items by tag: Electricity
Poland: Lafarge Cement Polska has signed a 15-year power purchase agreement (PPA) with KGAL Investment Management. The KGAL ESPF 4 renewable energy fund will provide the cement producer with around 230GWh/yr of electrical energy from two onshore wind farms. These will be the 35MW Krasin unit, which opened in 2022, and the 27MW Rywald unit, which is scheduled to start feeding the local grid from October 2023. With this latest agreement in place, Lafarge Cement Polska will be able to cover over half of its electrical supply requirements from renewable sources.
KGAL is an independent investment and asset manager based in Germany. It focuses its investments in real estate, sustainable infrastructure and aviation sectors.
Image credit: KGAL GmbH & Co. KG.
Bestway Cement inaugurates Mianwali cement plant
30 March 2023Pakistan: Bestway Cement has ignited the kiln of Line 1 of its Mianwali cement plant in Punjab. The line has a capacity of 2.3Mt/yr. The Pakistan Observer newspaper has reported that it increases the producer's cement capacity by 18% to 15.3Mt/yr and brings its total number of production lines to eight. The Mianwali cement plant is equipped with a 20MW solar power plant and will run on 50% renewable energy. It also has a 9MW waste heat recovery (WHR) plant, an air cooled condenser (ACC) system and a rainwater harvesting system.
Bestway Cement CEO Lord Zameer Choudrey said "It's a great day for the company. Our new greenfield production line at Mianwali has been set up in a record time, despite various hurdles and supply chain disruptions caused by Covid-19."
China: Anhui Conch Cement plans to invest US$2.81bn in capital expenditure (CAPEX) throughout 2023. The investments will go towards building new capacity, upgrading to new technologies and increasing plants' energy efficiency. The Morning Star newspaper has reported that the producer currently faces high energy costs, against a backdrop of reduced cement demand.
Anhui Conch Cement recorded sales of US$19.2bn in 2022, down by 21% year-on-year from US$24.4n in 2021.
Holcim Philippines' sales fall slightly in 2022
27 March 2023Philippines: Holcim Philippines recorded sales of US$490m during 2022, down by 1% year-on-year from US$499m. Sales rose by 9% year-on-year to US$266m during the second half of the year, 53% of the full-year figure. Throughout the year, the producer increased its alternative fuel (AF) substitution rate by 20% year-on-year and processed 1Mt of waste from industrial partners and local government bodies. Digitisation initiatives and alternative raw materials substitution helped the producer to reduce its specific CO2 emissions by 7%. The Business Mirror newspaper has reported that the year also brought 'surging' energy and fuel costs for the producer.
President and CEO Horia Adrian said "In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country. Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated the decarbonisation of our operations."
El Salvador: Holcim El Salvador says that the upcoming solar power plant at its El Ronco cement plant will have a capacity of 21.4MW, across three separate installations. Energy provider AES El Salvador holds a 20-year power supply agreement for construction and operation of the plant. The La Prensa Grafica newspaper has reported that Banco Cuscatlán supplied a loan for the project. When operational, the new solar power plant will lower Holcim El Salvador's oil consumption by 43,000 barrels/yr.
Holcim El Salvador CEO Rodrigo Gallardo said "We are not only making solutions and products with a lower CO2 content, but also cutting CO2 in our production processes."
Afghanistan: Ghori Cement says that its Baghlan cement plants currently produce 600t/day of cement, corresponding to annual production of 0.22Mt/yr. The producer states that production is restricted by shortages of electricity and vehicles. With regular supply of these, it would increase its production by 33% to 800t/day (0.29Mt/yr), according to the company.
Production at the Baghlan cement plants was previously suspended for four months in mid-2022 due to high coal prices. This was resolved when the government began supplying the plants with coal at a pre-agreed price. The plants then reopened with a daily production of 520t/day (0.19Mt/yr), up by 49% from 350t/yr (0.13Mt/yr).
The provincial government said that an upgrade with equipment from China and Iran since increased production by 15% to its present 600t/day (0.22Mt/yr).
Pakistan: Dandot Cement recorded a net loss after taxation of US$463,000 during the first six months of the 2023 financial year. This corresponds to a year-on-year rise of 8% from US$429,000 in the first half of the 2022 financial year. Its finance costs rose by 10% to US$437,000, while its administrative expenses fell by 18% to US$71,400.
The producer's 0.5Mt/yr Lahore cement plant closed in 2019 for a 'balancing, modernisation and replacement' upgrade. Dandot Cement says that the on-going project is on schedule for completion before the end of the current Pakistani financial year on 30 June 2023. The company anticipates a rise in domestic cement demand due to new infrastructure projects and the renovation of existing infrastructure. However, it noted several principal risks and uncertainties, namely rising coal, diesel and electricity prices, rising interest rates, currency devaluation and current overcapacity in the Pakistani cement industry.
Alamo Cement launches solar power unit in Texas
03 March 2023US: Alamo Cement has completed a new solar power unit that supports its integrated cement plant in San Antonio, Texas. The unit has a capacity of 17,800MWhr and is situated on an 18 hectare site. It is expected to generate up to 15% of the plant’s annual power consumption and reduce electricity costs.
CRH expects earnings and profit to rise in 2022
28 February 2023Ireland: CRH expects to record increased earnings before interest, taxation, depreciation and amortisation (EBITDA) and profit before tax in its 2022 results. The producer has predicted an EBITDA of US$5.5bn, up by 10% year-on-year from US$5bn in 2021. This would entail a 0.8% year-on-year decline in its fourth-quarter EBITDA in the year. The producer also expects its profit after tax to rise by comparison to its 2021 figure of US$3.1bn.
CRH said that its projection “captures the impact of bad weather, higher energy costs in Europe, the risk of destocking in the building products chain and all this against tough comparisons from 2021.”
FLSmidth increases cement business sales and earnings in 2022
27 February 2023Denmark: FLSmidth's cement business recorded 29% year-on-year sales growth to US$2.14bn in 2022, from US$1.66bn in 2021. The business' earnings before interest, taxation and amortisation (EBITA) totaled US$28.9m, compared to negative earnings of US$2.7m in 2021. During the year, its Americas region contributed 34% of sales, its Europe, North Africa and Russia region (subsequently Europe and North Africa) 26%, its Sub-Saharan Africa, Middle East and South Asia region 25% and its Asia-Pacific region 15%. Overall, FLSmidth's sales rose by 24%, while its EBITA fell by 8%, year-on-year.
The supplier said "Overall, our cement service showed strong performance throughout the year. In some countries, we did however start to see the first cases of budget constraints imposed to counter the increasing energy costs."
Looking forward to 2023's anticipated result, it noted a 'healthy' order pipeline, but an anticipated slow-down in producers' decision making. This is due to concerns related to energy volatility continuing the wake of the outbreak of war in Ukraine. FLSmidth concluded "The short-term outlook for the cement industry remains impacted by overcapacity, and the potential recession is expected to impact market demand negatively over the coming period."