Displaying items by tag: US

US: Ash Grove Cement, part of CRH, says it will release the findings of technical studies supporting its plan to burn alternative fuels at its Mississauga cement plant. Ash Grove plans to burn materials such as construction and demolition waste, wood, plastics and rubber.

The company says the initiative will reduce fossil fuel emissions by limiting its current reliance on coal, while also diverting materials from landfill.

US: The US Department of Energy's (DOE) Office of Fossil Energy and Carbon Management has selected Cemex's Knoxville cement plant in Tennessee as the site for a carbon capture, removal and conversion test centre. The project is part of a US$101m initiative shared among five projects that aim to decarbonise cement plants and power facilities.

Cemex, in collaboration with the University of Illinois Urbana-Champaign (UIUC) and a coalition of US cement producers, will develop the conceptual design, business, technical and managerial frameworks for the test centre under Phase 1. Phase 2 will involve constructing and operating the centre to evaluate advanced carbon management systems.

Jaime Muguiro, president of Cemex US, said “While we are making steady progress, the cement industry has the opportunity to accelerate the pace of our decarbonisation even more. I am excited that our Knoxville cement plant has been selected as the host site for the carbon capture test centre. Through collaboration and continuous innovation with the University of Illinois and industry peers, Cemex is committed to advancing decarbonisation solutions.”

Holcim revealed the board members for its proposed North America business this week. Former group CEO Jan Jenisch was confirmed as the designated chair and CEO. He will be joined by nine directors chosen from sectors including construction, manufacturing, industrial operations and financial services. Notably, current Holcim director Jürg Oleas will be joining Jenisch at the new company. He previously worked as the head of GEA Group and had senior stints at ABB and the Alstom Group.

The group’s decision to split its business in North America from that in the rest of the world has been presented as a piece of financial engineering designed to increase earnings, margins and increase the value of the business. Markets in the US and Europe have diverged in recent years, with the former growing and the latter slowing in comparison. Splitting the business should, in theory, allow both companies to grow at their own pace. However, the spin-off company in North America will remain linked to Europe as it will be listed at both the New York Stock Exchange and the SIX Swiss Exchange. The latter is for the benefit of European investors. The separation is expected by the end of the first half 2025, subject to shareholder and customary approvals.

Naturally, other companies are also chasing growth in North America. Titan Cement announced this week that its US-based subsidiary, Titan America, has filed a registration statement with the Securities and Exchange Commission as part of a proposed initial public offering (IPO). Yet, the company said that the offering is subject to market conditions. As such it couldn’t say when it might happen, how big it might be or much else. Back in May 2024 the group said it was going to list Titan America in the US to “...facilitate the group’s and Titan America’s future growth and unlock new opportunities.” The IPO was intended to be of a minority stake without creating any large-scale tax issues. At this time the transaction was planned to be completed in early 2025.

Titan’s sales share in North America has remained similar from 2018 to 2023 at around 55%. Holcim’s, by comparison, grew to 39% in 2023 from 22% in 2018. This is due to big acquisitions in the US such as Firestone Building Products in 2021 as it built up its lightweight building materials segment. The size of the two companies’ operations in North America are also different. Holcim reported net sales in the region of over US$11bn in 2023. Titan reported net sales of just under US$1.5bn.

Ireland-based CRH moved its stock market listings to the US earlier than both Holcim and Titan. It completed the transition of its primary listing to the New York Stock Exchange in mid-2023, although it too retains a listing in Europe, at the London Stock Exchange in its case. Yet analysts have started to wonder whether the company might spin-off its businesses outside the US. As reported by the Irish Times, Bank of America analysts reckon that the non-US parts of the company now represent only 16% of the US$82bn concern. For sanity’s sake this is still a US$10bn-plus sized company! Although other commentators did wonder why CRH might have bought assets in Australia in 2024 if it was seriously considering making changes on this scale anytime soon.

Despite all this attention on the US and North America by some of the multinational cement producers, it is worth remembering that markets change over time. Europe may not look so hot right now but it is unlikely to stay like this. The head of Heidelberg Materials, for example, said in early 2024 that his company wasn’t planning a split in the US because it was focusing on decarbonisation. This may prove prescient in the longer term if Europe sticks to its sustainability goals. FInally, the US isn’t the only place where cement companies are attempting to build their value in growth markets. It was also reported this week that JSW Cement had obtained approval from the Securities and Exchange Board of India to proceed with its IPO.

US: Oakland, California-based cleantech startup Brimstone has received a US Department of Energy grant worth up to US$189m to establish a plant with a capacity of 80,000t/yr of ‘green’ cement and 20,000t/yr of smelter-grade alumina, according to the San Francisco Business Times. The grant will be paid out in instalments and requires matching funds from new investments, loans and other sources.

The US$378m facility, which is still in the site selection phase, will be located near an existing quarry in order to mine calcium silicate rocks.

CEO Cody Finke said “We’re exclusively looking at brownfield sites. The goal is to build our own plant while utilising existing quarries to ensure a sustainable and economically viable operation.”

Brimstone plans to begin pilot operations in 2025 and aims to have the plant fully operational by the end of the decade. The company is currently testing its decarbonised cement with potential customers from its Oakland research and development facility.

US: The Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management has announced US$101m in funding for five projects to establish carbon capture, removal, and conversion test centres for cement plants and power facilities. The test centres aim to cost-effectively research and evaluate technologies to capture and convert CO₂ into products from utility and industrial sources, or by removing CO₂ from the atmosphere. The initiative aims to reduce CO₂ emissions, promote sustainable technologies and create job opportunities.

Notable projects include the University of Illinois in Urbana, which plans to design a test centre to evaluate carbon management technologies for the cement industry, and Holcim US, which intends to establish a Cement Carbon Management Innovation Centre at its Hagerstown facility in Maryland.

Brad Crabtree, assistant secretary for Fossil Energy and Carbon Management, said “Carbon management technologies such as carbon capture can significantly reduce emissions from fossil energy use and key industrial processes, like cement production. By investing in test centres, we are helping reduce barriers to commercial-scale deployment of carbon capture, conversion and removal technologies that will ultimately help reduce pollution and create jobs.”

US/France: Hoffmann Green Cement Technologies has extended its licensing agreement with Hoffmann Green USA, signed in July 2024, to cover 25 states in the eastern United States. This has triggered an additional entry fee of €8m, following the €2m already received. The agreement grants industrial and technological transfer rights and exclusivity in the expanded territory. It includes fixed and variable royalties based on sales of Hoffmann Green cements. Hoffmann Green USA may also sub-license units in these territories, with discussions currently underway with potential sub-licensees.

US: Titan America, the US subsidiary of Titan Cement, has filed a registration statement for its proposed initial public offering (IPO) with the Securities and Exchange Commission. The company plans to list shares on the New York Stock Exchange (NYSE), including both primary and secondary sales, aiming to raise up to an estimated US$500m, subject to market conditions.

Switzerland/US: Holcim is progressing towards the planned listing of its North American business and has designated its future board members. The board will comprise 10 members and will become effective following the execution of the spin-off, expected in the first half of 2025, subject to shareholder and customary approvals.

Jan Jenisch, current chair of Holcim and its former CEO from 2017 to 2024, has been designated chair and CEO of the new business. Jenisch will remain Holcim’s chair until the Annual General Meeting on 14 May 2025.

The Board will include nine independent directors: Theresa Drew, Nicholas Gangestad, Dwight Gibson, Holli Ladhani, Michael McKelvy, Jürg Oleas, Robert Rivkin, Katja Roth Pellanda, and Cristina Wilbur.

US: The US Department of Energy (DOE) has awarded funding for two Leilac projects to conduct preliminary front-end engineering design (pre-FEED) studies, subject to final negotiations.

A project at Roanoke Cement Company in Virginia, led by Titan Group in partnership with Leilac, Amazon and Virginia Tech, received US$1.49m. It aims to capture over 500,000t/yr of CO₂ from cement Scope 1 emissions using Leilac’s technology.

A project at Mississippi Lime Company in St Louis, Missouri, in partnership with Leilac, Industrial Ally and Nuada, received US$1.5m. It seeks to achieve net-zero lime manufacturing by integrating Leilac’s CO₂ capture technology with Nuada’s carbon capture system for combustion emissions.

Calix CEO Phil Hodgson said “We look forward to concluding the grant agreements and developing these exciting projects that have the potential to demonstrate industry-leading solutions to produce both low-carbon cement and lime at commercial scale.”

US: Cemex has obtained US$13m through the Texas Emissions Reduction Plan (TERP) to deploy four lower-emission locomotives and two haul trucks at its cement and aggregate sites in New Braunfels and Katy, both in Texas. TERP provides financial incentives to businesses and governments to reduce emissions from vehicles and equipment. Three of the four locomotives and both trucks began operations in late 2023 and mid-2024 in New Braunfels, respectively, according to Energy Tech news. Cemex reportedly intends to deploy additional equipment in 2025.

A US$2m grant from the Environmental Protection Agency’s (EPA) Diesel Emissions Reduction Act (DERA) will fund two additional locomotives for Cemex’s Florida operations in Jacksonville and Miami in the summer of 2025. Cemex plans to decommission the vehicles that are replaced and expand its low-emission fleet for its operations in Victorville, California.