Displaying items by tag: Gas
Germany: Rohrdorfer and Austria-based Andritz Group are in the process of installing a 2t/day CO2 separation plant on the roof of the former’s Rohrdorf cement plant in Bavaria. The pilot plant will capture CO2 from the plant’s emissions for use by the regional chemicals industry. The Ingenieur newspaper has reported that it will cost Euro3m and is scheduled for commissioning before June 2022. It is the first installation of its kind at a German cement plant.
Rohrdorfer’s plant and process engineering manager Helmut Leibinger said “We must begin to see CO2 as a product of value rather than a problem. With CO2 as a carbon source, Germany can protect the climate and at the same time become less dependent on oil and natural gas. In addition, value creation and jobs will remain in the country.”
Cementir’s revenue grows by 11% to Euro1.36bn in 2021
09 February 2022Italy: Cementir’s revenue grew by 11% year-on-year to Euro1.36bn in 2021 from Euro1.22bn in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 17.9% to Euro311m from Euro264m. Sales volumes of cement and concrete increased by 4.1% to 11.2Mt and 14.8% to 5.01Mm3 respectively.
“2021 marked for Cementir the year of the historic record of revenues and EBITDA despite the uncertainties related to the pandemic crisis, the substantial increase in energy costs, materials and services and the devaluation of the Turkish lira,” said Francesco Caltagirone Jr, chair and chief executive officer of Cementir.
The group also reviewed and approved the three-year Group Industrial Plan update for the period 2022 - 2024 and the 2022 budget. It has a target of reduce CO2 emissions (scope 1) by 30% in 2030 compared to 1990 levels. It is also planning to invest Euro116m in the 2022 – 2025 to meet this goal and others. Some of this will go towards building a new production line at its integrated Gaurain cement plant in Belgium, where the work is intended to raise the unit’s alternative fuels substitution rate to 80% from 40%. The group noted that this project has been delayed to 2022 due to the coronavirus pandemic. Changes at other cement plants include switching to natural gas and biogas as well as energy efficiency projects. It is also said it was planning to ‘significantly’ increase the production of its FUTURECEM calcined clay cement and related sustainable products.
Mexico: 200 police officers in 80 police cars arrived outside the gates of Cooperativa La Cruz Azul’s Cruz Azul cement plant in Tula, Hidalgo, on 15 December 2021, but failed to enter the plant. The El Financiero newspaper has reported that the police were following a court order to remove the company from the plant. Supervisory board president Alberto Lopez reasserted the company’s right to occupy the property in line with federal government ordinances. Lopez suggested an alleged collusion between cooperativists and Omar Fayad’s Institutional Revolutionary Party (PRI) Hidalgo state government to decieve the courts.
Authorities have frozen Cooperativa La Cruz Azul’s accounts with outstanding bills of US$800,000 in electricity, gas, equipment and services bills, as well as the payroll of its 1100 workers.
Coopertiva La Cruz Azul chair Federico Sarabia said that the developments threaten the existence of the Cruz Azul plant. He said "In terms of quality, Cruz Azul’s cement exceeds the standard. At the time that Cruz Azul disappears as a cement producer, prices will increase.”
CO2 credits could account for 12 – 15% of EU cement producers’ costs
16 December 2021Europe: 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.’
BMSD Chaux Algeria commissions lime plant
13 December 2021Algeria: BMSD Chaux Algeria has commissioned a 100,000t/yr lime plant. Italy-based QualiCal supplied the plant. It is powered by natural gas and relies on CogiTech bulkmaterial handling equipment, Mathios Refractories’ refractories, Laife steel structures and Sysware and Tecnoelettra automation systems.
PCA announces Energy and Environment Awards 2021 winners
09 December 2021US: The Portland Cement Association (PCA) has announced the winners of its Energy and Environment Awards 2021. The awards recognise cement plants’ outstanding environmental and social efforts beyond what is required.
CalPortland’s Mojave plant in California won the Energy Efficiency award for an efficiency-increasing upgrade to its vertical roller mill, which included the introduction of a bottom hopper cone on each of its cyclones and a replacement of its mill fan housing. Argos USA’s Calera plant in Alabama won the Land Stewardship award for its conversion an 8.5ha lime kiln dust stockpile into grassland. The area now forms a vibrant ecosystem including wetland habitats. The producer also installed ponds with the additional purpose of stormwater management. Titan America’s Pennsuco plant in Florida won the Overall Environmental Excellence award for its conversion of the plant’s kiln to natural gas from coal use. The upgrade has also enabled the plant to begin to substitute alternative fuel (AF) in the kiln. The Pennsuco plant plans to produce 100% Portland limestone cement (PLC) by ‘as early as 2023.’
Other awards went to Roanoke Cement’s Troutville, Virginia, plant in the Environmental Performance category and to Cemex USA’s Victorville, California, plant in the Outreach category.
PCA President and CEO Michael Ireland said “The US’s cement manufacturers continue to focus on researching and developing new and innovative ways to reduce their environmental footprint. These accomplishments and industry commitment to carbon neutrality across the entire value chain demonstrate PCA members’ dedication to energy efficiency and a more sustainable future.”
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.”
Japan: Taiheiyo Cement plans to secure a captive power supply for its Saitama cement plant through the installation of a new gas-powered generator. The company says that electricity from the generator will replace purchased energy in the plant's operations. It is also in the process of constructing a new waste heat recovery (WHR) power unit at the facility. Taiheiyo Cement claims that both upgrades will result in a 62,000t/yr reduction in operations' CO2 footprint. Construction is due to commence before 2022 in order for the producer to commission the new equipment in mid-to-late 2023.
Saitama cement plant's former coal and woodchip-powered generator exploded in April 2021. The producer said that work is on-going to prevent the incident's recurrence by investigating the causes of the accident and formulating preventative measures.
Iranian cement sector preparing for gas shortages in the winter
03 November 2021Iran: 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.
Energy costs mounting for the cement sector
20 October 2021UltraTech Cement, Taiheiyo Cement, Cimtogo and the Chinese Cement Association (CCA) have all been talking about the same thing recently: energy prices.
India-based UtraTech Cement reported this week that coal and petcoke prices nearly doubled in the second quarter of its current financial year, leading to a 17% rise year-on-year in energy costs. Japan-based Taiheiyo Cement released a statement earlier in October 2021 saying that due to mounting coal prices it was planning to raise the price of its cement from the start of 2022. It principally blamed this on increased demand in China and a stagnant export market. It added that it was ‘inevitable’ that prices would rise further in the future. Meanwhile in West Africa, Eric Goulignac, the chief executive officer of Cimtogo, complained to the local press that the reason the company’s cement prices were going up was due to a 250% increase in the cost of fuels for the Scantogo plant and an increase in the price of sea freight of over US$35/t for transporting gypsum and coal.
Other places where the cost of energy has been biting cement producers include Turkey and Serbia. In the former, Türk Çimento, the Turkish Cement Manufacturers' Association, warned in June 2021 that the price of petcoke had nearly tripled over the previous year. Whether it was connected or not, the Turkish Building Contractors Confederation (IMKON) organised a strike in September 2021 due to high costs. The confederation claimed that the price of cement had tripled over the last year. In Serbia electricity prices have risen sharply in recent months in common with much of Europe. Local press reported comments last month from President Aleksandar Vučić saying that an unnamed cement producer had warned of a 25% rise in the price of cement if electricity prices remained high. In the UK the Energy Intensive Users Group (EIUG), a network of lobbying groups for heavy industry including cement, has been holding talks with the government on how to cope with growing energy costs. Finally, in the US, Lhoist warned in September 2021 that is was going to increase the cost of all of its lime products from the start of November 2021 due to increasing gas prices. These are just some of the reactions by cement and lime producers to the current global energy market. No doubt there are many more.
The current global energy crunch has widely been attributed to the waking up of economies following coronavirus-related dormancy in 2020 with supply failing to meet demand. Gas prices have risen to record highs and this has promoted electricity producers to switch to coal in the US, Europe and Asia. This in turn has put pressure on industrial users as both electricity and coal prices have grown and governments have taken action in some cases to protect domestic users. In Europe price pressure has lead to reductions in ammonia and fertiliser production. Power cuts have been reported in China and India.
In China a variety of factors have converged to create a crisis. These include shutting down coal mines on environmental and safety grounds, anti-corruption measures and even promoting mine closures to facilitate clean skies for national events such as the Communist party’s 100th anniversary. Disruption to import sources such as a ban on Australian coal on political grounds, flooding in Indonesia and a renewed coronavirus outbreak in Mongolia can’t have helped either. Thermal coal futures traded on the Zhengzhou Commodity Exchange hit a high of US$263/t on 15 October 2021 marking a 34% rise through the week and the largest weekly growth since trading started in 2013. The International Energy Agency estimates that coal demand in China grew by over 10% year-on-year in the first half of 2021 but coal production increased by just over 5%.
Industrial users have suffered as energy supplies have been rationed and producers asked to cut output. In September 2021 cement output fell by 12% year-on-year to 205Mt from 233Mt in September 2020. This is the lowest monthly figure for September since 2011. It’s also not the usual direction of double-digit rate of change that the Chinese cement sector is used to. The CCA attributed this mainly to energy controls, power shortages and high coal prices in Jiangsu, Hunan, Zhejiang, Guangdong, Guangxi, Yunnan, Shandong and elsewhere. Cement output for the first nine months of 2021 is still ahead of 2020 at 1.77Bnt compared to 1.67Bnt but it’s been slipping noticeably since July 2021.
This will leave energy users, including cement producers, watching the weather forecasts rather closely this winter. Should the Northern Hemisphere suffer a cold one then energy prices such as coal will reflect it. Industrial users may also become subject to energy rationing in many places. The knock-on effect of this then will be higher cement prices. However bad the winter does turn out to be though we can expect more cement companies trying to explain bashfully why their prices are going up. On the plus side any producer that can diversify its energy mix through solar, alternative fuels or whatever else is likely to be doing so soon if they are not already.