Displaying items by tag: Europe

Europe: Australia-based Calix has announced that construction will begin on its second low emissions intensity lime and cement (Leilac) carbon capture and storage (CCS) installation at a ‘European cement plant’ on 7 April 2020. ASX ComNews has reported that collaborators on the project, which has received Euro16m under the EU’s Horizon 2020 grant scheme, are Portugal-based Cimpor, Germany-based HeidelbergCement, Germany and France-based energy companies Ingenieurbüro-Kühlerbau-Neustadt (IKN) and Engie and Belgium-based minerals and lime company Lhoist. Calix has said that the 100,000t/yr process emissions capture facility will be operational in late 2024.
The company has appointed Emma Bowring Leilac-2 project leader.

The first Leilac installation was completed at HeidelbergCement’s 1.5Mt/yr integrated Lixhe plant in Belgium’s Limburg province in mid-2019.

Colombia/Panama: Mexico-based Cemex has announced the suspension of production at all of its plants in Panama and those of its Colombian subsidiary Cemex Latam Holdings from 25 March 2020. It said it ‘may resume certain activities on or before 13 April 2020,’ according to Noticias Financieras News. The NAFTA 2.0 newspaper has included Cemex on a list of Mexico’s companies most exposed due to a large European presence to the impacts of the coronavirus there. Europe is the second-largest market for Cemex’s products, generating 24% of its revenue in 2019.

Ireland: CRH recorded sales of Euro28.3bn in 2019, up by 6% year-on-year from Euro26.7bn in 2018. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 25% year-on-year to Euro4.20bn from Euro3.36bn. The company said that the results were supported by a positive demand backdrop in the Americas and in key regions in Europe. It also set out a new CO₂ emissions roadmap with target of 520kg/t of cement by 2030, a 33% reduction compared to 1990 levels.

Tunisia: Carthage Cement has obtained CE marking for its products to help it penetrate the European market. It plans to start a 0.15Mt cement export contract in March 2020.

Belgium: Cembureau, the European Cement Association, says it will undertake a review of the targets set out in its 2050 Low Carbon Roadmap (2013/2018) in order to align the industry’s efforts with the carbon neutrality objectives contained in the European Green Deal published in December 2019. Following this reassessment, the association says it publish a revised low-carbon roadmap setting out the key role of cement and concrete in the circular economy and a path to achieving carbon neutrality along its value chain in Europe by 2050. Cembureau expects the revised roadmap to be published in early spring 2020.

“As an industry we are determined to ensure that we play our part in helping Europe to meet its emissions reduction targets. With concrete, our industry has a sustainable building material that is uniquely positioned as an essential enabler of the transition to a carbon neutral society,” said Cembureau’s president Raoul de Parisot.

Belgium: Cembureau, the European Cement Association, has called on the European Union’s (EU) Green Deal to incentivise investment in low-carbon technologies, provide long-term legal certainty and foster the industry’s global competitiveness. It said that the new proposal to tackle climate change showed ‘great promise’ and ‘ambitious vision’ but that this needed to be converted into action to support a successful industrial transformation.

The association is concerned about a new carbon border adjustment mechanism. In its view, “the replacement of the existing carbon leakage measures by an untested mechanism would create considerable uncertainty and risks.” Instead it called on the EU to look at a design that complements the existing carbon leakage measures and is fair for third country importers and EU producers.

Aspects of the European Green Deal that the association praised included the recognition that the cement industry is ‘indispensible’ to the European economy. It also liked the European Commission’s (EC) emphasis on the circular economy that fits with work the sector is doing already from alternative fuels usage to recycling concrete.

"The European Green Deal is our new growth strategy – for a growth that gives back more than it takes away. It shows how to transform our way of living and working, of producing and consuming so that we live healthier and make our businesses innovative. We can all be involved in the transition and we can all benefit from the opportunities,” said EC president Ursula von der Leyen in relation to the new policy proposal.

The EC published its recommendations on how to help energy-intensive industries meet the EU’s 2050 climate target in late November 2019. Its key suggestions were to create markets for climate-neutral and circular products, develop large-scale pilot projects on clean technologies and switch to alternative climate-neutral energy and feedstock sources. It added that the pilot projects should be supported by EU funds and given easier access to private financing. These recommendations will be presented to the EU member states, the EU Competitiveness Council and the European Parliament in early 2020.

Ireland: CRH has concluded a deal with an unspecified party for the sale of CRH Europe Distribution for Euro1.64bn. The Financial Times reported in July 2019 that private equity funds managed by American-based Blackstone would buy the company’s European distribution division. CRH will reportedly use the proceeds of sale for future acquisitions including its own share buyback programme.

Switzerland: LafargeHolcim has revealed a Euro145m investment plan to reduce its CO2 emissions in Europe by 3Mt/yr, equivalent to 15% of its carbon footprint, by 2022. The investment will target advanced equipment and technology to increase the use of low-carbon fuels and materials.

Ireland: CRH’s revenue for the six months up to 30th June 2019 was Euro13.2bn, up 11% from Euro11.9bn over the same period in 2018, with a 36% increase in EBITDA to Euro1.54bn from Euro1.13bn in the first half of 2018.

In its interim results, CRH attributed increased cement volumes in the US to synergy delivery and strong price realisation in spite of adverse weather conditions in its key markets, noting ‘a strong contribution from our Ash Grove acquisition,’ obtained at the end of June 2018.

A general improvement in cement pricing in the EU28 saw operating profits ahead of the first half of 2018, with increased demand in the French market from non-residential and civil engineering sectors offsetting the effects of reduced residential demand. The UK market reversed this trend, with operating profit behind 2018 due to higher input costs and volume pressure.

In addition to operating profit improvements reported by subsidiary businesses in the Philippines, CRH group benefited from its share in profit after tax of China’s Yatai Building Materials and India’s My Home Industries Limited, both of which enjoyed improved operating profits compared to 2018.

UK: The Institutional Investors Group on Climate Change (IIGCC) has called on European building materials companies to take steps to fight climate change or face commercial extinction. Recommended changes from its new ‘Investor Expectations of Companies in the Construction Materials Sector’ report have been sent to the heads of LafargeHolcim, HeidelbergCement, CRH and Saint-Gobain. The report informs investor engagement with other construction material firms on the initiative’s global list of 161 focus companies. Investment bodies in the group represent US$2Tn in assets, assets under management and under advice.

“The cement sector needs to dramatically reduce the contribution it makes to climate change. Delaying or avoiding this challenge is not an option. This is ultimately a business-critical issue for the sector,” said Stephanie Pfeifer, the chief executive officer (CEO) of the IIGCC. “Major economies such as the UK and France are increasingly adopting economy-wide net zero emission targets. The cement sector needs to get ahead of the profound transformation their sector faces by addressing barriers to decarbonisation in the short- to medium-term if companies are to secure their future.”

Key details set out in the ‘Investor Expectations’ report include becoming carbon neutral by 2050. Companies are expected to set short, medium and long-term science-based targets to reach this goal. Building material companies should be public policy transparent and advocate for the Paris Agreement, they should implement a ‘strong’ governance framework assigning specific responsibility for climate change to a board committee or board member and they should provide enhanced corporate disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The IIGCC recognised the steps HeidelbergCement in particular has taken in already having committed to meeting key aspects of the investor expectations it has outlined. CRH, LafargeHolcim and Saint-Gobain have been encouraged to follow suit, given the ‘significant’ role they play as European-based multinationals. The group also praised the ambitious targets set by India’s Dalmia Cement to become carbon negative by 2040.