Displaying items by tag: Limestone

India: The state of Himachal Pradesh will lose US$11.7m-worth of anticipated tax revenues in the first month of Adani Cement’s on-going closure of its Darlaghat and Gagal cement plants. In previous months, the 1.6Mt/yr Darlaghat cement plant paid US$3.29m/month in goods and services taxes, US$1.75m/month in electricity duties, US$1.45m/month in value-added tax (VAT) on diesel, US$640,000/month in mining royalties and US$363,000/month in goods carried by road and additional goods taxes. Meanwhile, the 4.4Mt/yr Gagal cement plant paid US$1.9m/month in goods and services taxes and mining royalties, US$1.57m/month in VAT on diesel, US$1.47m/month in electricity duties and US$701,000/month in goods carried by road and additional goods taxes.

The Tribune India newspaper has reported that, despite attending several rounds of talks with the state administration, Adani Cement has yet to signal any intention to resume operations at the plants. Both facilities have been closed since 15 December 2022.

Bangladesh: The Bangladesh Cement Manufactures Association (BCMA) has demanded that an additional 30% increase to import duties on limestone be removed. A supplementary duty was introduced in November 2022 when the National Board of Revenue (NBR) changed the way limestone was coded in response to a significant increase in imports since 2020, according to the New Nation newspaper. Previously limestone importers were paying a duty US$7.80/t. Now they are reportedly paying US$14.60/t.

The BCM wrote to the NBR about the issue in mid-November 2022. BCMA president Alamgir Kabir renewed his association’s lobbying to remove the additional duty at a press conference held in mid-December 2022.

Sweden: The Land and Environmental Court has granted Cementa a four-year permit to continue mining operations in Slite on Gotland. The latest temporary permit was set to expire at the end of 2022. Both the Environmental Protection Agency (Naturvårdsverket) and the county administrative board of Gotland recommended rejecting Cementa’s application earlier in 2022. Prior to this the central government extended the cement company’s mining licence by one year from late 2021.

The subsidiary of Germany-based Heidelberg Materials said that it viewed the latest four-year permit as a ‘bridge’ until it is able to secure a long-term permit. It is aiming to submit an application for a 30-year permit in 2023.

US: Titan America has successfully converted its cement operations to 100% Portland limestone cement (PLC) production. As part of its transition, the producer established two new 70,000t storage domes to serve its key markets.

President and CEO Bill Zarkalis said "I would like to thank all members of the Titan America team who are able and energised to provide the highest performing products to our customers, and do so with our 2030 goals for a sustainable future at top of mind. Our conversion to 100% Type IL PLC production and our expanded investments to deliver lower carbon products and solutions to customers showcase the progress we have made and our commitment to accelerate our contribution to addressing climate change."

France: Switzerland-based Holcim has taken control of Carbocia, a producer of limestone fillers based at the Marquise quarry basin in Hauts-de-France, via the acquisition of a 90% stake in the company. The acquisition provides the group with greater access to raw materials used in the manufacture of low and / or zero-CO₂ cements and concretes.

"Micronised calcium carbonates make it possible to give compactness and resistance, in addition to reducing the share of the components of the cement most loaded with CO₂," explained the president of Holcim France, François Petry. Holcim also hopes to maximise its new subsidiary’s expertise to take advantage ‘compatible deposits in France’ that it already owns. It plans to grow Carbocia’s output from 0.4Mt/yr at present to 0.6Mt/yr in 2024.

In Australia and New Zealand, four producers operate a total of six integrated cement plants, with another 13 grinding plants situated in Australia. This relatively small regional cement industry has been on a decades-long trajectory towards ever-greater sustainability – hastened by some notable developments in recent weeks.

Oceania is among the regions most exposed to the impacts of climate change. In Australia, which ranked 16th on the GermanWatch Global Climate Risk Index 2021, destructive changes are already playing out in diverse ways.¹ Boral reported 'significant disruption' to its operations in New South Wales and southeast Queensland due to wet weather earlier in 2022. This time, the operational impact was US$17.1m; in future, such events are expected to come more often and at a higher cost.

Both the Australian cement industry and the sole New Zealand cement producer, Golden Bay Cement, have strategies aimed at restricting climate change to below the 2° scenario. Golden Bay Cement, which reduced its total CO₂ emissions by 12% over the four-year period between its 2018 and 2022 financial years, aims to achieve a 30% reduction by 2030 from the same baseline. The Australian Cement Industry Federation (CIF)'s 2050 net zero cement and concrete production roadmap consists of the following pathways: alternative cements – 7%; green hydrogen and alternative fuels substitution – 6%; carbon capture – 33%; renewable energy, transport and construction innovations – 35% and alternative concretes – 13%, with the remaining 6% accounted for by the recarbonation of set concrete.

Australia produces 5.2Mt/yr of clinker, with specific CO₂ emissions of 791kg/t of clinker, 4% below the global average of 824kg/t.² Calcination generates 55% of cement’s CO₂ emissions in the country, and fuel combustion 26%. Of the remainder, electricity (comprising 21% renewables) accounted for 12%, and distribution 7%. Australian cement production has a clinker factor of 84%, which the industry aims to reduce to 70% by 2030 and 60% by 2050. In New Zealand, Golden Bay Cement's main cement, EverSure general-purpose cement, generates CO₂ at 732kg/t of product.³ It has a clinker factor of 91%, and also contains 4% gypsum and 5% added limestone.

Alternative raw materials

Currently, Australian cement grinding mills process 3.3Mt/yr of fly ash and ground granulated blast furnace slag (GGBFS). In Southern Australia, Hallett Group plans to commission its upcoming US$13.4m Port Augusta slag cement grinding plant in 2023. The plant will use local GGBFS from refineries in nearby Port Pirie and Whyalla, and fly ash from the site of the former Port Augusta power plant, as well as being 100% renewably powered. Upon commissioning, the facility will eliminate regional CO₂ emissions of 300,000t/yr, subsequently rising to 1Mt/yr following planned expansions. Elsewhere, an Australian importer holds an exclusive licencing agreement for UK-based Innovative Ash Solutions' novel air pollution control residue (APCR)-based supplementary cementitious material, an alternative to pulverised fly ash (PFA), while Australian Graphene producer First Graphene is involved in a UK project to develop reduced-CO₂ graphene-enhanced cement.

Golden Bay Cement is investigating the introduction of New Zealand's abundant volcanic ash in its cement production.

Fuels and more

Alternative fuel (AF) substitution in Australian cement production surpassed 18% in 2020, and is set to rise to 30% by 2030 and 50% by 2050, or 60% including 10% green hydrogen. In its recent report on Australian cement industry decarbonisation, the German Cement Works Association (VDZ) noted the difficulty that Australia's cement plants face in competing against landfill sites for waste streams. It described current policy as inadequate to incentivise AF use.

Cement producer Adbri is among eight members of an all-Australian consortium currently building a green hydrogen plant at AGL Energy’s Torrens Island gas-fired power plant in South Australia.

Across the Tasman Sea, Golden Bay Cement expects to attain a 60% AF substitution rate through on-going developments in its use of waste tyres and construction wood waste at its Portland cement plant in Northland. The producer will launch its new EcoSure reduced-CO₂ (699kg/t) general-purpose cement in November 2022. In developing EcoSure cement, it co-processed 80,000t of waste, including 3m waste tyres. The company says that this has helped in its efforts to manage its costs amid high coal prices.

Carbon capture

As the largest single contributor in Australia's cement decarbonisation pathway, carbon capture is now beginning to realise its potential. Boral and carbon capture specialist Calix are due to complete a feasibility study for a commercial-scale carbon capture pilot at the Berrima, New South Wales, cement plant in June 2023.

At Cement Australia's Gladstone, Queensland, cement plant, carbon capture is set to combine with green hydrocarbon production in a US$150m circular carbon methanol production facility supplied by Mitsubishi Gas Chemical Company. From its commissioning in mid-2028, the installation will use the Gladstone plant's captured CO₂ emissions and locally sourced green hydrogen to produce 100,000t/yr of methanol.

More Australian cement plant carbon capture installations may be in the offing. Heidelberg Materials, joint parent company of Cement Australia, obtained an indefinite global licence to Calix's LEILAC technology on 28 October 2022. The Germany-based group said that the method offers effective capture with minimal operational impact.

Cement Australia said “The Gladstone region is the ideal location for growing a diverse green hydrogen sector, with abundant renewable energy sources, existing infrastructure, including port facilities, and a highly skilled workforce." It added "The green hydrogen economy is a priority for the Queensland government under the Queensland Hydrogen Industry Strategy.”

Logistics

Australian and New Zealand cement facilities' remoteness makes logistics an important area of CO₂ emissions reduction. In Australia, cement production uses a 60:40 mix of Australian and imported clinker, while imported cement accounts for 5 – 10% of local cement sales of 11.7Mt/yr.

Fremantle Ports recently broke ground on construction of its US$35.1m Kwinana, Western Australia, clinker terminal. It will supply clinker to grinding plants in the state from its commissioning in 2024. Besides increasing the speed and safety of cement production, the state government said that the facility presents 'very significant environmental benefits.'

Conclusion

Antipodean cement production is undergoing a sustainability transformation, characterised by international collaboration and alliances across industries. The current structure of industrial and energy policy makes it an uphill journey, but for Australia and New Zealand's innovating cement industries, clear goals are in sight and ever nearer within reach.

References

1. Eckstein, Künzel and Schäfer, 'Global Climate Risk Index 2021,' 25 January 2021, https://www.germanwatch.org/en/19777

2. VDZ, 'Decarbonisation Pathways for the Australian Cement and Concrete Sector,' November 2021, https://cement.org.au/wp-content/uploads/2021/11/Full_Report_Decarbonisation_Pathways_web_single_page.pdf

3. Golden Bay Cement, 'Environmental Product Declaration,' 12 May 2019, https://www.goldenbay.co.nz/assets/Uploads/d310c4f72a/GoldenBayCement_EPD_2019_HighRes.pdf

Malaysia: Borneo Oil has entered into a conditional share sale agreement with Makin Teguh's 45% owner Global 2332 to enlarge its stake in the cement company by 31%, to 60%. Borneo Oil has proposed a private placement to raise US$11.3m towards funding the US$21.2m deal. It previously completed a US$4.65m shares issue on 26 October 2022. Bernama Daily Malaysian News has reported that Makin Teguh plans to commence operations at its 220,000t/yr Sabah integrated cement and clinker plant in early 2023. It owns two limestone mines, with total reserves of 14.4Mt.

Germany: Ireland-based CRH has agreed to sell its subsidiaries Opterra Zement and Opterra Beton to Thomas Gruppe. Thomas Gruppe expects to complete its acquisition of the businesses later in 2022. Opterra Zement owns the 1.4Mt/yr Karsdorf, Saxony-Anhalt, cement plant and 0.5Mt/yr Sötenich, North Rhine-Westphalia, grinding plant, the latter of which is closed. Opterra Beton operates the Neufahrn, Bavaria, ready-mix concrete batching plant.

Thomas Gruppe said "For years, we have been pursuing a steady and long-term growth course in the field of cement and precast and ready-mix concrete. In the cement segment, our competitive position improved significantly with the purchase of the Erwitte (North Rhine-Westphalia) plant in 2017. Together with the grinding plant in Dorndorf (Thuringia), we have achieved a significantly larger area coverage in Germany, and also in the Netherlands, and benefit from synergy effects." It continued "We would like to continue on this growth course. An opportunity like the one to take over the cement plant in Karsdorf does not come often. The Karsdorf plant, with its gigantic limestone deposits, its market position of well over 1Mt/yr of cement and its experienced team, enables us better to supply our customers, and to leverage improvement potential. In addition, Karsdorf is of sufficient size for us to install CO₂ separation technology in its production of clinker for the Dorndorf grinding plant." Thomas Gruppe concluded "We are convinced that cement will become a clean building material and believe in its future."

Japan: Taiheiyo Cement has agreed to buy the cement business of chemicals company Denka for an undisclosed sum. Denka operates an integrated plant in Itoigawa City, Niigata Prefecture where Taiheiyo Cement’s subsidiary Myojo Cement also operates a plant. The three companies have been working on a joint-development plant for local limestone resources since 2018. However, Denka has decided to leave the cement market due to poor local demand and the necessity of upgrades at its plant from 2025 onwards.

From April 2023 cement sold from Denka’s Omi plant will carry the Taiheiyo Cement brand name. Taiheiyo Cement and Myojo Cement have also agreed to continue supplying Denka’s other businesses, such as carbide production, with limestone from 2025. Denka will send by-products and other waste streams to the cement producer. Finally, Taiheiyo Cement, Myojo Cement and Denka will carry on developing the local limestone resources near to Itoigawa City.

Nepal: Udayapur Cement has urged the Nepalese government's Ministry of Finance to process its application for a loan of US$3.82m. The Kathmandu Post newspaper has reported that the producer plans to invest in an upgrade to its 800t/day-capacity Gaighat cement plant in Province No.1. The plant is reportedly unable to meet its capacity due to frequent issues with its 33-year-old equipment. The producer hopes that an upgrade will increase the plant's production capacity by 41% to 2.5m bags/yr. It also expects its expenditure on coal to fall by 25% as a result.

Director general Gopi Neupane noted the Gaighat cement plant's access to high quality limestone not available elsewhere in the country. He said "We will turn the factory into a profit-making enterprise if the additional investment is provided. We have huge scope for exporting cement to Uttar Pradesh and Bihar (in India)."