Displaying items by tag: Taiheiyo Cement

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.

Japan: Taiheiyo Cement has revealed that a weakness in an evaporator tube in a fluidised bed heat exchanger in a captive power plant was the cause of an explosion that took place at its Hidaka cement plant in April 2021. It said that inspections had been carried out annually but that it was difficult to detect defects visually. The company has apologised for the incident. It says it will make changes including a review of inspection standards, including more personnel in the process, improved information sharing and starting regular training on the issue. These changes will be implemented across all of the company’s plants.

The 50,000kW circulating fluidised bed (CFB) boiler was supplied by Mitsubishi Heavy Industries and commissioned in 1996. It ran on coal, wood chips and refuse-derived fuel. No blame for the explosion has been attributed to the manufacturer.

The explosion took place in the evening of 27 April 2021. No major injuries were sustained. However, 40 vehicles parked outside a Pachinko gambling parlour near the plant were damaged. Scattered debris was noted nearby and ash was reported up to 5km from the cement plant.

UltraTech 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.

Japan: Taiheiyo Cement says that the cost of producing its cement has increased throughout 2021. The company said the coal prices have risen due to increased coal demand in China and a reduction in exports from coal-producing countries. It anticipates further rises in the price of coal. Additionally, it foresees a rise in maintenance costs as the equipment at its plants nears the end of its service life. The producer says that it is endeavouring to improve productivity and reduce costs.

Philippines: Japan-based Taiheiyo Cement has underwritten a US$250m capital increase for its subsidiary Taiheiyo Cement Philippines. Nikkei Business Trends News has reported that the company has scheduled six payments between July 2021 and January 2024. The funding will increase Taiheiyo Cement Philippines’ total capital to US$291m.

Japan: Taiheiyo Cement recorded full-year consolidated net sales of US$7.89bn in its 2021 financial year to 31 March 2021, down by 2% year-on-year from US$8.07bn in the 2020 financial year. The group’s net profit rose by 20% to US$427m from US$357m. Domestic cement sales volumes fell by 4.8% to 13.8Mt and exports sales dropped by 2.2% to 3.8Mt. The cement producer attributed this to falling local demand for cement since June 2020 due to the suspension of construction work in response to the coronavirus pandemic. It also noted a shortage of construction workers.

North America: UK-based Carbon Clean has signed a memorandum of understanding with US-based onsite hydrogen provider BayoTech. Under the agreement, the carbon capture and storage (CCS) specialist will install a CCS system at a BayoTech hydrogen plant in North America, which is expected to be operational by the end of 2022.

The two companies have agreed on a roadmap for the technology integration of a carbon capture process on their hydrogen generating units. The demonstration facility will include a BayoTech H2-1000 generating unit and Carbon Clean’s carbon capture technology. This partnership is intended to enable process optimisation to decrease the cost for small scale hydrogen and CO₂ production.

Carbon Clean was announced in April 2021 as the technology provider for a CO₂ capture demonstration project by Taiheiyo Cement in Japan. It is also working on projects with Cemex USA and LafargeHolcim España.

Japan: An off-grid power system at Taiheiyo Cement’s Hidaka cement plant in Saitama prefecture exploded overnight on 27 April 2021, damaging a car in a nearby car park. Fire services quickly fought and extinguished a fire in woodland surrounding the plant. Kyodo News has reported that none of the 14 people working at the site at the time was harmed. Residents 2km away reportedly heard and felt the blast.

Japan: Taiheiyo Cement plans to start a CO₂ capture demonstration project at its Kumagaya plant in Kumagaya City, Saitama. It will use technology for CO₂ chemical absorption supplied by UK-based Carbon Clean, which has been awarded by Japan-based Marubeni Protechs in Japan. The project will have a capacity of 10t/day and demonstration tests will begin in September 2021. Taiheiyo Cement says that it believes that CO₂ recovery technology from cement kiln flue gas will require compact equipment that could be installed in cement plants and that suitable amine solvents for cement kiln flue gas are essential conditions. Its ultimate goal is to establish a technology that can be used to help it reach carbon neutrality by 2050.

The cement producer has been developing this technology as a sole grant recipient of the ‘Development of Carbon Circulation Technology for the Cement Industry,’ a project funded by the New Energy and Industrial Technology Development Organization (NEDO) which was awarded in June 2020. It also launched its internal Carbon Neutral Technology Development Project Team in April 2020, which has led on the project.

Marubeni Protechs, a wholly owned subsidiary of Marubeni Corporation, which invested in Carbon Clean, have been involved in a variety of domestic and international projects involving equipment supply and construction. The project at the Kumagaya plant is expected to be the first CO₂ capture plant that Marubeni Protechs and Carbon Clean have introduced in Japan. Marubeni Protechs and Carbon Clean intend to jointly introduce CO₂ capture plants in the future.

Indonesia: Semen Indonesia has detailed its plans for future exports of cement to North America. The Investor Daily newspaper has reported that the producer and subsidiary Solusi Bangun Indonesia will target 0.5 – 1Mt of cement exports to North America in 2021, according to president director Hendi Santoso. The export plans will be carried out in partnership with Japan-based Taiheiyo Cement, which already has a US market presence and owns a 15% stake in Solusi Bangun Indonesia. Hendi said that the move aims to ‘cushion’ the decline in domestic cement sales, down by 28% bulk and 13% bagged year-on-year in 2020. The company successfully exported cement to Australia, Bangladesh, China, Fiji and Sri Lanka in 2020.

President commissioner Rudi Antara said, "The Covid-19 outbreak still colours our lives. There is no other choice but to increase business efficiency and the top line outside of our main markets."