Displaying items by tag: Sustainability
Holcim Philippines launches ECOPlanet slag cement
25 November 2021Philippines: Holcim Philippines has announced the launch of its ECOPlanet slag cement. It says the product has a 30% lower carbon footprint than other general purposes products. The company will sell 40kg bags of cement in both paper and plastic bags.
Holcim Philippines president and chief executive officer Horia Adrian said, “Winning with purpose requires delivering our customer promise while also caring for the planet.” He added, “We see a growing interest in building greener structures in the Philippines. ECOPlanet enables us to provide our partners with the best balance of delivering strength and durability while helping make construction more respectful of the environment. It is another key step in our promise to build greener, smarter and for all in the Philippines.”
Update on Holcim, November 2021
24 November 2021Holcim’s investors’ event last week confirmed the changes the company has been making to its sales mix. At its Capital Markets Day it revealed its commitment to expand the net sales of its Solutions & Products division to 30% of the group total by 2025. This division covers products such as roofing, mortar, precast concrete and asphalt. At the same time it is reducing the proportion of sales from its cement division. Graph 1, below, from a presentation given by chief executive officer Jans Jenisch, hints at what group may be aiming for: roughly a third of its sales from cement; a third from aggregates and ready mixed concrete; and a third from the Solutions & Products division in 2025.
Graph 1: Forecast growth of sales by Holcim’s Solutions & Products division to 2025. Source: Holcim Capital Markets Day 2021 presentations on website.
To give readers an idea of the scale of change in Holcim’s cement business since the merger with Lafarge in 2015, just look at the figures. In 2015 LafargeHolcim sold 256Mt of cement and it had a cement production capacity of 374Mt/yr. In 2020 it sold 190Mt of cement and it had a cement production capacity of 288Mt/yr. However, the ratio of sales from cement has remained consistent at just below 60%.
This all changed in January 2021 when Holcim announced it was buying roofing and building envelope producer Firestone Building Products for US$3.4bn. Instead of trimming down the business to make synergistic changes as it had been for the previous five years the group significantly changed its sales mix. As noted in ‘2021 in Cement’ in the December 2021 issue of Global Cement Magazine, Holcim remains the world’s largest non-Chinese cement producer. Yet its acquisitions in 2021 have consisted of ready-mixed concrete and aggregate companies in mature markets, and Firestone. Its divestments have been cement subsidiaries. Since 2019, and including the agreed Brazilian sale, planned to complete in 2022, the group has generated US$4.1bn in these divestments. Almost as if to reinforce this change of direction the group also switched its name to Holcim in May 2021.
Aside from the focus on expanding the scope of the Solutions & Products division over the next few years, the group said at its recent investors’ event that it wants to lead in sustainability and innovation. It also reminded investors that growth remains in building materials markets. Once Jenisch had established the potential the construction market has in the coming years it was all about so-called ‘green’ growth. On the sustainability side this includes promoting the group’s Science Based Targets initiative net-zero targets by 2050, pushing sales of its low-carbon concrete products and working on increasing the uptake of construction and demolition waste in Europe. The group has a target of reaching 25% or higher for sales of its ECOPact ready-mixed concrete product by 2025. Holcim reported Scope 1 CEM specific CO2 net emissions of 555kgCO2/t in 2020 and it has target of 475kgCO2/t by 2030. This is broadly in line with its peers. Cemex has also committed to 475kgCO2/t or lower and HeidelbergCement is currently aiming for 500kgCO2/t or lower by 2030.
Simultaneously promoting sustainability and growth in products that release CO2 during their manufacture is quite the balancing act for all cement producers. The way Holcim appears to be squaring this particular circle is by heading elsewhere. Back in January 2021 we asked whether Holcim would leave it with the Firestone acquisition or go further. This question has now been answered with Holcim’s intent to increase the share of its Solutions & Products to 30% by 2025. Other large cement producers don’t seem to be diversifying their sales mix at the same speed but similar strategic thinking along supply chains can be seen from the proposed buyer of LafargeHolcim Brazil, Companhia Siderúrgica Nacional (CSN) Cimentos. CSN is a steel manufacturer and buying cement assets gives it somewhere to use its slag. Fittingly, Holcim’s investors’ day ended with a night out at a museum holding an exhibition on the history of concrete. For now at least concrete looks set to remain a key part of the business.
Incheon National University team develops cement-based conductive composites for net-zero energy buildings
24 November 2021South Korea: Researchers at Incheon National University have discovered an optimal conductive carbon fibre volume for cement-based conductive composites for use in net-zero energy buildings. The team reported that a 1% conductive carbon fibre content facilitates maximum energy generation from the movements of occupants and the weather against floors and walls. It also enables the storage of electricity at safe voltages. The product is based on triboelectric nanogenerator (TENG) technology.
The team published its results in the journal Nano Energy in November 2021.
Cemex Zement appoints Orcan Energy for waste heat recovery system installation at Rüdersdorf cement plant
23 November 2021Germany: Cemex Zement has partnered with sustainable technology supplier Orcan Energy for the establishment of a waste heat recovery (WHR) plant at its Rüdersdorf, Brandenburg, cement plant. Orcan Energy will supply six generator modules for the installation. When commissioned in mid-2022, the WHR plant will cover part of the plant’s energy consumption. The German Federal Ministry for Economic Affairs and Energy contributed 50% of funds for the project.
Europe, Middle East, Africa & Asia regional president Sergio Menendez said “Efforts to achieve carbon neutrality at our Rüdersdorf cement plant by 2030 continue apace, and this project to install a WHR system is the latest significant milestone in our journey. It further demonstrates the value of forming expert alliances to investigate and then implement innovative technologies that will ensure the decarbonisation of our operation.”
Philippines: Singapore-based Blueleaf Energy says that it has secured a 20-year solar power supply with Holcim Philippines. The companies have signed a power purchase agreement whereby Blueleaf Energy will finance, build and operate a total of 29MW of solar power infrastructure in Norzagaray, Bulacan, and Bacnotan, La Union. These will supply 15% of the energy requirements of Holcim Philippines’ Bulacan and La Union cement plants respectively. Construction is scheduled for completion in 2024.
Holcim Philippines president and CEO Horia Adrian said “Reducing the carbon footprint of our operations is one of our key sustainability commitments. This year, we have made great progress in this area by stepping up production of blended cements and replacing coal with alternative fuels. Shifting to renewable solar energy will help us further improve as an environment steward and a partner in building progress in the country sustainably.”
Vicat presents its climate strategy
22 November 2021France: Vicat has reiterated its CO2 emissions reduction target of 55% between 1990 and 2030 and reaffirmed its 2050 carbon neutrality commitment. The company says that its will invest Euro800m in transitioning to lower-CO2 cement production between 2021 and 2030 in order to meet the 2030 target. It said that eight US and European cement plants with ‘limited decarbonisation standards’ currently generate 67% of its earnings before interest, taxation depreciation and amortisation (EBITDA).
Japan: Taiheiyo Cement and the University of Tokyo have patented a carbon capture system based on a new carbon fixation method. The method passes CO2-bearing gas over 40mm granules of a hardened cementitious material at 75 - 100°C. The granules then fix the CO2 from the stream to themselves, for utilisation or storage.
Vicat project at Montalieu-Vercieu cement plant to test hydrogen production technology from Genvia
19 November 2021France: Vicat plans to test hydrogen electrolysis technology provided by Genvia for a pilot project at its Montalieu-Vercieu cement plant. Genvia made the announcement following a tour of its facilities by President Emmanuel Macron. It will be working with Vicat, Hynamics, a subsidiary of EDF group, and EDF Energy on the initiative. Other pilot projects have been announced with steel producers ArcelorMittal and Ugitech.
Genvia is a hydrogen production joint venture between French Alternative Energies and the Atomic Energy Commission (CEA), Schlumberger New Energy, VINCI Construction, Vicat Group and the Occitanie Region. It is developing and promoting solid oxide technology to enable industrial decarbonisation through hydrogen production, energy storage and fuel applications at scale.
Uganda: Security provider G4S has installed solar powered laser security systems for Hima Cement at one of its plants and several mines. The system was commissioned in March 2021 and it uses chargeable solar cells in perimeter security towers. G4S says that the system will improve sustainability and reduce costs compared to conventional alternatives. Where sensors detect a breach, security guards will investigate using electric bikes. The supplier says that the bikes facilitate more covert operations compared to motor vehicles, in addition to having sustainability benefits.
Head of technology Samuel Tebandeke said “We wanted to challenge ourselves to think of a better solution for our customer. We knew that we wanted to introduce electronic perimeter security to enhance the protection for the three mines and the cement plant we protect. Other providers were proposing laying many kilometres of cabling underground to provide power for their electronic perimeter monitoring, but our team decided to investigate a greener solution.”
Holcim launches Strategy 2025 – Accelerating Green Growth
18 November 2021Switzerland: Holcim has launched its Strategy 2025 – Accelerating Green Growth plan to become a global innovative and sustainable building solutions leader. Under the plan, the group will expand its solutions and products sales to account for 30% of consolidated sales by 2025. During the three-year period, it aims to deliver continuous group sales growth of 3 – 5% and over-proportional recurring earnings before interest, taxation, depreciation and amortisation (EBIT) growth on a like-for-like basis. It is also targeting a 10% return on invested capital (ROIC), cash conversion of 45% and leverage below 1.5x.
As part of the new strategy, the group will aim to recycle 75Mt of materials, including 10Mt of construction waste, in its products in 2022 – 2024. It aims to invest Euro476m in green capital expenditure (CAPEX) and link 40% of its financing agreements to its sustainable performance.
Chief executive officer Jan Jenisch said “We delivered what we promised with our Strategy 2022 one year in advance, setting strong foundations for our next era of growth. With our new level of performance, we have the firepower to invest in solutions and products to make it 30% of our company, while leading the way in green building solutions from ECOPact green concrete to energy-efficient roofing.” He added “With our Accelerating Green Growth strategy, we are ready to seize the opportunities ahead on our way to becoming the global leader in innovative and sustainable building solutions.”