Displaying items by tag: Pakistan
Gharibwal Cement raises sales as earnings drop in first quarter of 2024 financial year
02 November 2023Pakistan: Gharibwal Cement recorded sales of US$15.7m during the first quarter of its 2024 financial year (FY2024), up by 14% year-on-year from US$13.8m in the first quarter of its 2023 financial year (FY2023). The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) declined by 10% to US$3.49m from US$3.89m.
Gharibwal Cement said that it expects local cement demand to remain ‘sufficient’ to maintain its sales growth throughout the rest of FY2024. It noted that rising coal and fuel prices may further impact its earnings for the year.
Two die in shooting at Iskandarabad cement plant
19 October 2023Pakistan: The deputy general manager and a plant engineer of a cement plant in Iskandarabad died after being shot by a colleague on 18 October 2023. The shooter was a chemical engineer at the plant, who shot the men after ‘flaring up’ in a meeting. Emergency services took a third victim, an engineer, to hospital for treatment. The Dawn newspaper has reported that police are investigating the tragedy, including the matter of how the shooter managed to enter the plant armed.
Pakistan government to increase natural gas tariffs
11 October 2023Pakistan: The Ministry of Energy (Petroleum Division) is preparing a proposal for a ‘significant’ rise in gas tariffs in Pakistan. The Energy Update newspaper has reported that the rise will affect gas prices in the cement sector, besides other industries. The government aims to reduce the natural gas sector’s debts from US$10.5bn as part of a deal with the International Monetary Fund.
Fauji Cement raises sales in 2023 financial year
06 October 2023Pakistan: Fauji Cement sold 4.9Mt of cement during Pakistan’s 2023 financial year (FY2023), which ended on 30 June 2023. This generated revenues of US$244m, up by 25% year-on-year from US$194m in FY2022. The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) also rose, by 29% to US$72.3m from US$56.2m.
Managing director and CEO Qamar Haris Manzoor said “The transformation journey which started in 2020 on capacity enhancement, cost reduction initiatives and increasing captive green energy has now started to pay dividends, despite unpreceded economic challenges.” He continued “FY2023 has been challenging for businesses due to all-time high inflation and interest rates, which saw a drop in consumer demand, negatively affecting the industry. The cement industry saw a demand decline of 16% as construction activities decreased in both the northern and southern regions of the country. Despite the tough environment, Fauji Cement remained committed to its growth strategy, and successfully commissioned its 6500t/day expansion project at its Nizampur site.”
Pakistan: Cement producers increased their sales volumes by 23% year-on-year during the first quarter of the 2024 financial year, which began on 1 July 2023. They recorded despatches of 11.9Mt during the quarter, compared to 9.62Mt during the first quarter of the previous financial year. The Express Tribune newspaper has reported that exports grew by 72% year-on-year to 1.75Mt from 1.02Mt.
Dewan Cement reduces loss in 2023 financial year
28 September 2023Pakistan: Dewan Cement’s turnover rose by 22% year-on-year to US$69.8m in the year to 30 June 2023 from US$57.1m in the same period that ended in 2022. Its cost of sales increased by 29% to US$68.3m from US$52.8m. It reported a loss of US$2.03m compared to US$2.43m previously.
Storing energy at scale at cement plants
27 September 2023Taiwan Cement has just commissioned a 107MWh energy storage project at its Yingde plant in Guangdong province, China. Subsidiary NHOA Energy worked on the installation and has been promoting it this week. The battery storage works in conjunction with a 42MW waste heat recovery (WHR) unit, a 8MWp solar photovoltaic unit and a proprietary energy management system. It is expected to store about 46,000MWh/yr of electricity and save just under US$3m/yr in electricity costs.
NHOA Energy, formerly known as Engie EPS before Taiwan Cement bought a majority stake in it, claims it is one of the largest industrial microgrids in the world. We can’t verify this for sure, but it is definitely large. For comparison, the 750MW Vistra Moss Landing Energy Storage Facility in California often gets cited as the largest such facility in the world. This is run by a power company, as are many other large battery energy storage systems. In its annual report for 2022 Taiwan Cement said it was planning to using NHOA’s technology to build seven other large-scale energy storage projects at sites in Taiwan including its integrated Suao, Ho-Ping and Hualien cement plants.
The aim here appears to be supplying renewable electricity to the national grid in Taiwan. Taiwan Cement is diversifying away from cement production, with an aim to derive over 50% of its revenues from other activities besides cement by 2025. In 2022 cement and concrete represented 68% of its sales, while its electricity and energy division, including power supply and rechargeable lithium-ion batteries, represented 29%. The company is also not using its own batteries at the Yingde plant. Instead it is using lithium iron phosphate batteries supplied by Ningde Times. This is worth noting, as the cement producer’s batteries are used in vehicles.
Global Cement regularly reports news stories on cement plants that are building photovoltaic solar power arrays. However, so far at least, energy storage projects at scale have been rarer. One earlier example of an energy storage system loosely associated with a cement plant includes the now decommissioned Tehachapi Energy Storage Project that was situated next to the Tehachapi cement plant in California. That project tested using lithium ion batteries to improve grid performance and integrate intermittent generation from nearby wind farms. It is also worth noting that Sumitomo Osaka Cement’s sister company Sumitomo Electric is one of the world’s larger manufacturers of flow batteries, although no installation at a cement plant appears to have happened yet. In simple terms, flow batteries are an alternative to lithium ion batteries that don’t store as much energy but last longer.
More recently, Lucky Cement in Pakistan started commercial operation of a 34MW solar power plant with a 5.59MWh energy storage unit at its Pezu plant in Khyber Pakhtunkhwa in late 2022. Reon Energy provided the equipment including a lithium-ion based battery approach to the storage. Then, in March 2023, Holcim US said that it was working with TotalEnergies to build solar power capacity and a battery energy storage unit at the Florence cement plant in Colorado. TotalEnergies will install, maintain and operate a 33MW DC ground-mounted solar array and a 38.5MWh battery energy storage system at the site. Operation of the renewable energy system is expected to start in 2025.
Away from electrical batteries, the other approach to energy storage at cement plants that has received attention recently from several quite different companies has been thermal batteries. The two prominent groups using them at different scales are Rondo Energy and Synhelion. The former company has developed its Heat Battery technology, which uses refractory bricks to absorb intermittent renewable energy and then supply the energy back as a steady stream of hot gas for use in a cement plant mill, dryer, calciner or kiln. Both Siam Cement Group (SCG) and Titan Cement have invested in Rondo Energy. In July 2023 SCG and Rondo Energy said that they were planning to expand the production capacity of a heat battery storage unit at a SCG plant to 90GWh/yr. Synhelion, meanwhile, has been working with Cemex on using concentrated solar power to manufacture clinker. It achieved this on an ‘industrially viable scale’ in August 2023. It has since been reported that the companies are working on building a small scale industrial plant at Móstoles near Madrid by 2026. Crucially for this discussion though, the process also uses a thermal energy storage unit filled with ceramic refractory material to allow thermal energy to be released at night, and thus ensure continuous operation.
The examples above demonstrate that some cement companies are actively testing out storing energy at scale. Whilst this will not solve the cement sector’s process emissions, it does potentially start to make using renewable energy sources more reliable and reduce the variable costs of renewable power. Whether it catches on remains to be seen. Most of these kinds of projects have been run by power companies and that is where it may stay. It is instructive to note that Reon Energy was the only company to state that its battery-based energy storage system has a life-span of 8 - 12 years. Our current vision of a net-zero future points to high electrical usage but it may be shaped by how good the batteries are… from our phones to our cars to our cement plants.
For more information on Rondo Energy read the January 2023 issue of Global Cement Magazine
Pakistan: Pioneer Cement has appointed Talha Saif as its company secretary. He succeeds Abdul Wehab in the role. The company also appointed Jan Mohammad as Head of Internal Audit. He replaces Jamal Uddin.
Lucky Cement to build solar and wind power plants at two cement plants
18 September 2023Pakistan: The board of directors of Lucky Cement has approved US$37.1m-worth of investments in the construction of renewable energy infrastructure at the company’s Karachi and Pezu cement plants. The producer plans to build a 6.3MW solar power plant and a 28.8MW wind power plant at the Karachi plant in Sindh and a 2.5MW solar power plant at the Pezu plant in Khyber Pakhtunkhwa. Pakistan Company News has reported that the board also empowered Lucky Cement to evaluate its participation in the equity of its diversified industrial manufacturing subsidiary, Lucky Core Ventures.
Coal and road projects to boost cement production in Pakistan
08 September 2023Pakistan: The Central Development Working Party (CDWP) has cleared four development projects worth US$528m that are likely to lead to increased cement demand. This includes the Coal Rail Connectivity Project to connect significant coal reserves in the Thar Coal Mines with the existing rail network, including last mile connectivity to the Port of Qasim, according to the Nation newspaper. The project, part of the government’s Pakistan Vision 2025 policy, has been designed to provide reliable and efficient railway infrastructure to ‘break the geographical barriers’ of accessing domestic coal for industrial use, including cement production, which is currently reliant on more expensive imported fuels.
Separately, funding has been approved for a road project to connect the N50 and N70 national highways, to serve as the main route to connect the Central Cities of Northern Balochistan to Southern Punjab. This is expected to raise cement demand in these areas.