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Two reports out this week have looked at the carbon footprint of the cement industry. The first, a technology roadmap by the Cement Sustainability Initiative (CSI) and the International Energy Agency (IEA), laid out a technology pathway for the sector to reduce its direct CO₂ by 24% from current levels by 2050 to meet the IEA’s 2°C scenario (2DS). The second, a report by the CDP (formerly the Carbon Disclosure Project) on the progress of 13 major cement producers to reduce their emissions, was a progress report on the business readiness for a low carbon economy transition.

Graph 1: European Union industry emissions by sector, 2013 - 2017. Source: Sandbag, European Commission.

The scene was set last week when the environmental campaign group Sandbag picked up on the latest emission data from the European Union (EU) Emissions Trading Scheme (ETS). Industrial emissions as a whole rose by 2% year-on-year to 743Mt in 2017. The cement and lime industry reported a rise of 3% to 148Mt in 2017 from 144Mt in 2016. As Sandbag reported, industrial emissions have remained ‘stubbornly high’ for the duration of the ETS. It then went on to say that, “the EU urgently needs a new industrial strategy to bring about radical industrial process changes and/or carbon capture and storage, especially for the high-emitting steel and cement sectors.”

The CDP’s report provided a global scorecard on the readiness of the cement industry to adapt to a low-carbon future. Unfortunately, the report used data from self-reporting questionnaires and it lacked data from the two largest Chinese cement producers, Anhui Conch and China National Building Materials (CNBM), although it did try to compensate for this. The CDP assessed companies across four key areas aligned with the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).

Graph 2: Opportunity vs. risk for low-carbon transition. Source: Building Pressure report, CDP.

Surprisingly, the study, even with its limitations, found regional variation. As can be seen in Graph 2, the Indian cement producers came out on top from the criteria used: transition risks, physical risks, transition opportunities and climate governance and strategy. CDP pinned this on better access to alternative materials such as fly ash and slag coming from other carbon intensive sectors, such as thermal power generation and steel production. Reported process emissions measured by the clinker ratio for the Indian companies was 69% versus 78% for the other companies. They also benefited from newer cement plants driven by high market growth in the region compared to older plants in Europe.

The technology roadmap from the CSI and the IEA set out key actions for the industry to take by 2030 to have at least a 50% chance of achieving the 2°C 2DS scenario followed by a possible transition pathway that could be achieved through technology, legislation and investment. The key actions are protecting carbon pricing mechanisms from carbon leakage, putting new technology into action and supporting it by legislation, and greater government support for products with a lower clinker factor.

The CSI’s and IEA’s targets for 2030 included reaching a clinker to cement ratio of 0.64 in 2030 from 0.65 in 2014, a thermal energy intensity of clinker of 3.3GJ/t from 3.5GJ/t, an electricity intensity of cement of 87kWh/t from 91kWh/t and a alternative fuel co-processing rate of 17.5% from 5.6%. Perhaps the most optimistic is a CO₂ capture and storage amount of 14MtCO₂/yr in 2030 from nothing at the moment. This last target seems unlikely to be achieved given the lack of projects outside of the pilot stage, but it’s not impossible.

This column barely touches on the detail within either report or even the latest data from the EU ETS. Both reports offer ways forward to meet the 2°C global warming target outlined in the Paris Agreement. It’s easy to be pessimistic given the on-going clash between environmental optimism and business logic but both reports offer a way forward. The CDP report sets out a baseline with a look to the future, whilst the CSI/IEA roadmap offers what it says is a realistic route to reach that 2DS target. Lastly, if the CDP’s assessment is correct about the Indian producers then it’s possible that other developing cement industries may inherently be cleaner due to their use of newer plants and equipment. If worldwide government support can be provided for use of alternative fuels and materials on a much larger scale, as well as all the other recommendations, then meeting the Paris agreement may be easier than expected as new markets build new production capacity.

Two examples of carbon capture utilisation and sequestration projects will be covered in the May 2018 issue of Global Cement Magazine

Poland: Lafarge Poland has appointed Xavier Guesnu as the president of its management board. He succeeded Federico Tonettiego in March 2018. Tonettiego had held the role since 2014.

Guesnu has worked for LafargeHolcim for eight years. In 2010 he was responsible for Lafarge's strategy and development in global markets, acting as the Vice President for Strategy, Development, Acquisitions & Mergers. From 2013 he was the General Director of the aggregate business in eastern Canada. Previously he worked as a business consultant for Bain & Company. He is a graduate of Mines ParisTech engineering school in Paris, France.

US: Plibrico has appointed Norm Phelps as its new Vice President of Sales. Phelps will be responsible for aligning sales strategy and objectives with Plibrico's long term vision and corporate goals. He will be based in Atlanta, Georgia and will report to Plibrico president and chief executive officer Brad Taylor.

Phelps has worked in the refractory industry for 18 years, holding sales and marketing positions at Vesuvius and Zampell in the US. Later he moved to Europe to join Calderys as Global Market Manager responsible for the aluminum and boiler segments in 2011. In 2014, he took on the role of Business Development Manager, leading the Calderys expansion into North America, including the purchase and integration of Spar and the creation of Calderys USA. Most recently, he served as General Manager for Calderys North America.

Phelps holds a degree in Materials Science and Engineering from Pennsylvania State University and is a graduate of the Executive Development Program at the University of Chicago Booth School of Business.

India: The Supreme Court has been informed that the government is considering a ban on the use of petcoke by various industries. Additional Solicitor General A N S Nadkarni, representing the Ministry of Environment, Forest and Climate Change, told the court that a decision on the matter could be made within one month, according to the New Indian Express newspaper.

At present it is unclear whether the cement industry would be affected. However, if it was included in the ban, this potentially could be a problem for Shree Cement, which uses 100% petcoke in its fuels mix, according to India Infoline News Service. Additionally, UltraTech Cement, JK Cement, JK Lakshmi Cement and Mangalam Cement have petcoke usages in the range of 75 - 85% and would also be negatively affected.

India: Dalmia Bharat has sought intervention by the Central Vigilance Commission (CVC) in the insolvency proceedings of Binani Cement. It argues that the lenders’ reported move to allow owner Binani Industries to seek an out of court settlement violates CVC guidelines and circumvents the dedicated insolvency process, according to the Economic Times newspaper.

A consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. However, UltraTech Cement then made a direct bid to Binani Cement a few weeks later. In a letter to the CVC Dalmia Bharat alleged that UltraTech Cement’s direct offer was a revised bid in an auction that forbade them.

India: Wonder Cement has ordered two vertical mills from Germany’s Gebr. Pfeiffer for its Nardana plant in Rajasthan. The order includes a MVR 6000 C-6 mill for grinding slag cement and a MPS 3070 BK mill for grinding fuel. Delivery is scheduled for early 2019 and mid-2019 respectively.

The MVR mill will feature a total drive power of 5820kW. Mixed cements will be be ground to a fineness of up to 5% R 45µm. The grinding plant will be designed to process granulated blast-furnace slag with a target fineness of approximately 4500 cm²/g Blaine and blast-furnace cements with different proportions of granulated blast-furnace slag, fly ash and gypsum and different product fineness degree. Wonder Cement has requested the option to grind relatively hot clinker in the mill while at the same time being able to reduce the cement temperature, and alternatively to use cold clinker from stockpiles.

The core components such as the tension system and the grinding rollers will come from Gebr. Pfeiffer in Germany. The grinding bowl and the gearboxes for the mill and classifier will also be delivered from Europe. Gebr. Pfeiffer’s subsidiary, Gebr. Pfeiffer India, will provide the housing parts, the foundation parts and supports of the rollers as well as almost the entire high-efficiency classifier type SLS 5600 BC. Gebr. Pfeiffer India scope of supply will incorporate most of the equipment to complete the grinding plant including the plant fan.

The MPS mill will grind petcoke with a capacity of 40t/hr to a product fineness of 2% R 90µm. It will come with a SLS BK classifier, allowing both coal and petcoke to be ground in the mill, dried with process gases and then classified in the integrated classifier. Due to the high abrasiveness of Indian coal, the mill will be designed with appropriate wear protection.

Most components of the coal mill will be supplied by Gebr. Pfeiffer India. The housing and foundation parts, the grinding bowl and a large part of the power-transmitting parts will be manufactured in India. Setting up the new MPS mill is planned to coincide with the commissioning of the entire kin line.

Vietnam: Fico Tay Ninh Cement (Tafico) plans to start building a new production line at its plant Tan Hoa, Tan Chau District in mid-April 2018. The US$212m project will have a clinker production capacity of 4000t/day, according to the Viet Nam News newspaper. The project is scheduled to be completed in 2020.

Nigeria: Lafarge Africa’s sales rose by 36% year-on-year to US$835m in 2017 from US$613m in 2016. Its recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) nearly doubled to US$161m from US$81m. Michel Puchercos, the chief executive officer of Lafarge Africa, attributed the strong margins in its Nigerian business to cost initiatives and higher prices. He added that the company’s increased use of alternative fuels and coal to offset gas shortages in the west of Nigeria and a focus on coal and gas in the east and north of the country aided market share.

However, the cement producer reported a ‘challenging’ business environment in South Africa, where operations are expected to ‘stabilise’ in 2018. Its Lichtenburg cement plant returned to normal operations during the course of the year and a turnaround plan was initiated in order to transform the company’s operations.

Uganda: Trade minister Amelia Kyambadde has given local cement producers three weeks to lower cement prices otherwise. If they do not cooperate she will allow cheaper exports of cement into the country, according to the Daily Monitor newspaper. A recent surge in the price of cement has led to a crisis in the construction industry with panic buying, hoarding and rationing reported by retailers and consumers.

Egypt: Khaled Fahmy, the Minister of Environment, has opened a new production line at Arabian Cement Company’s Ain Sokhna plant in Suez. The line uses FLSmidth’s Hotdisc combustion device to allow it to use high levels of alternative fuels, according to the Watani newspaper. The opening was attended by Muhammad Shehab Abdel-Wahab, chief executive of the Egyptian Environmental Affairs Agency, Nahed Youssef, head of waste management organisation, as well as a number of representatives of the financiers, and director of the European Investment Bank.

In 2015 Arabian Cement Company commissioned another Hotdisc installation. At the time is said it had a designed fuel mix of 70% coal and 30% alternative fuels, using a mixture of agricultural wastes, municipal sludge, and refuse-derived fuel (RDF).