Displaying items by tag: US
National Cement Company of Alabama installs new 5000t/day clinker line at Ragland cement plant
11 February 2021US: France-based Vicat subsidiary National Cement Company of Alabama has completed the installation of a new 5000t/day clinker line at its Ragland, Alabama cement plant. The line has a raw meal capacity of 13,000t.
Vicat engineering senior vice president Jean-Claude Brocheton congratulated the installation team on the ‘major step’ and on completing the work ahead of schedule.
Emissions trading in Europe and China
10 February 2021The European Union (EU) Emissions Trading Scheme (ETS) looked like it might be about to hit Euro40/t this week. It still might. You can blame it on the current cold front bringing snow to much of Northern Europe and the bedding into of the fourth phase of the ETS that started in January 2021. In early 2020 analysts were generally predicting an average price of around Euro30/t by 2030 bolstered by volatility in the price due to the start of the coronavirus pandemic. Yet the price recovered and so did the European Commission’s resolve to push through its European Green Deal. By mid-December 2020 the price had shot past Euro30/t and analysts were forecasting average prices of well over Euro50/t by 2030. Depending on one’s disposition this is the rate at which either serious decarbonisation attempts will begin to be viable for commercial companies, or the point at which more plants simply close.
Figure 1: European Union Emissions Trading System carbon market price in Euros (European Union Allowance), February 2020 – February 2021. Source: Sandbag.
One group which is well aware of the EU ETS and its consequences upon the cement industry is Cembureau, the European cement association. Some of its current lobbying efforts have been directed at trying to shape how the Carbon Border Adjustment Mechanisms (CBAM) will appear in legislation proposals in June 2021. Its argument boils down to protecting its members from carbon leakage both in and out of the EU’s borders and maintaining free allocation until 2030 to ease the transition to a lower carbon economy. The former should find common ground. However, calls for a CO2 charge exemption for EU exporters may perplex environmentalists, who might wonder how this could possibly encourage third party countries to introduce their own carbon pricing schemes. The latter is clearly pragmatism for an industry saying that it is facing change at a pace that may be too rapid for it to cope with. Concrete products do carry sustainability advantages over other building materials. Wiping out swathes of the region’s production base, simply because one knows exactly how much CO2 they emit compared to rival building materials that one doesn’t, may not help the EU reach its climate commitments by 2050. As if to underline this fear, another European clinker line was earmarked for closure this week when Lafarge France announced the planned conversion of the Contes cement plant into a terminal.
Figure 2: Estimate of global cement production in 2018 by region. Source: Cembureau.
Figure 2 above puts the situation into a global perspective, showing that Cembureau’s members were responsible for below 7% of cement production in 2018. China produced an estimated 55% of global cement production in the same year. In terms of overall CO2 emissions across all sources, the International Energy Agency (IEA) estimated that China produced 30% of CO2 emissions in 2018.
It seems odd then that the introduction of an interim ETS in China at the start of February 2021 didn’t receive more global news coverage. The new scheme covers 2225 power companies across the country. It follows pilot regional schemes that have run since 2011, covering seven provinces and cities including Beijing, Shanghai and Guangdong. Previously, the country’s largest local carbon market, the China Emissions Exchange (Guangzhou), was based in Guangdong province and it included power generation, cement, steel, and petrochemical sectors. State news agency Xinhua reports that this scheme reduced carbon emissions from these industries by 12% from 2013 to 2019. The new national ETS is expected to include cement and other industries at a later stage.
Commentators in the European press have pointed out that the Chinese national ETS is actually planning to make an effort on transparency and to force companies to publish their pollution data publicly. Yet, they’ve also said that the data may be inaccurate anyway, echoing the usual Western fears about Chinese figures. Other concerns include the method of giving out pollution permits rather than allocating them by auction as in other cap and trade systems, which could reduce the incentive to reduce emissions. It’s also worth pointing out that carbon was priced at US$6/t under the Chinese system compared to around US$35/t in the EU and US$17/t in California, US at the end of 2020. At this price it seems unlikely that the Chinese national ETS will encourage much change without other measures.
The EU and Chinese ETS are at different stages but the differences in scale are stark. When or if the Chinese one goes national across those eight core industries it will likely leapfrog over the EU ETS and become the world’s largest with an estimated 13,235MtCO2e under its purview. By contrast, the EU ETS manages 1816MtC02e according to World Bank data. The kind of dilemmas Cembureau and others are tackling with the EU ETS such as carbon leakage and how fast to tighten the system against heavy emitters are illustrative to other schemes in China and elsewhere.
Italy: Buzzi Unicem’s net sales remained stable at Euro3.22bn in 2020. Cement sales volumes grew slightly to 29.3Mt and ready-mixed concrete sales fell by 3.1% year-on-year to 11.7Mm3 from 12.1Mm3. The group attributed this to growth in the US and stable markets in Russia and Germany, compensating for weaker trends in Eastern Europe and Italy.
LafargeHolcim and Schlumberger New Energy to study carbon capture and storage studies at two cement plants
10 February 2021Europe/North America: Switzerland-based LafargeHolcim and US-based Schlumberger plan to study the feasibility of carbon capture and storage (CCS) systems at two cement plants in Europe and North America. The companies say that the partnership is intended to as a precursor towards the deployment of large-scale CCS solutions.
LafargeHolcim’s chief sustainability officer Magali Anderson said, “Today’s announcement is further proof of LafargeHolcim’s environmental leadership and commitment to pioneer new solutions to reduce carbon emissions on our journey to become a net zero company. Our partnership with Schlumberger, the world’s leading provider of technology to the global energy industry, will bring new advances in storage that could be replicated at scale across our sites.”
HeidelbergCement identifies five assets to divest
09 February 2021Germany: HeidelbergCement has completed a review of its business and identified five assets to sell. Reuters has reported that the company plans to sell the first of the five assets in early - mid-2021. Chairman Dominik von Achten said that the group would not exit ‘rock-solid’ markets like Northern Europe. He added that Indonesia, where it holds a 51% stake in Indocement, is an ‘important market.’
Von Achten said that the group has made a strong start to 2021, though ‘visibility on future prospects’ remains low. Its focus is on raising the productivity of underperforming assets or selling them. He added that a margin improvement plan in its underperforming North American region is on track.
Cemex USA receives US Department of Energy grant for carbon capture technology study
09 February 2021US: The US Department of Energy has awarded a grant to Cemex USA, UK-based carbon capture and storage (CCS) specialist Carbon Clean and Oak Ridge National Laboratory. The grant covers the implementation of a CCS system at Cemex USA’s Victorville cement plant in California, in addition to the development of a commercially viable carbon utilisation solution. The producer says that the study is due to last 30 months.
President Jaime Muguiro said, “Cemex is committed to being part of the solution to reduce carbon emissions globally and to deliver net-zero CO2 concrete to all of our customers by 2050. We cannot achieve these aims without innovative technology and collaborative relationships with both public and private organizations who share a commitment to climate action. This grant gives us an excellent opportunity to further develop a new technology to help us all reach our goals.”
Italy: Cementir Holding recorded revenues from sales and services of Euro1.22bn in 2020, up by 1% year-on-year from Euro1.21bn in 2019. Cement and clinker volumes rose by 13% to 10.7Mt from 9.49Mt. Volumes registered the sharpest increase in Turkey, of 39%. Ready-mixed concrete (RMX) volumes grew by 7.8% to 4.4Mm3 from 4.1Mm3. The company maintained its 2019 earnings before interest, taxation, depreciation and amortisation (EBITDA) levels of Euro264m. It said that an improvement in performance in Turkey, Denmark, Egypt, China and Sweden balanced out negative effects on earnings in Belgium, US and Malaysia.
Chair and chief executive officer Francesco Caltagirone said, “In 2020, despite the serious pandemic, the group showed significant resilience with a 13% increase in cement volumes sold and revenue reaching the historical record. On a recurring basis, EBITDA increased by 2%, EBIT was up by 4% and yearly cash generation was Euro119m."
Under Plan 2021 – 2023 Industrial Plan, the company says that it envisages sales growth of 20% to Euro1.47bn and EBITDA growth of 29% to Euro340bn in 2023 compared to 2020 figures. It said that digitalisation investments begun in 2019 will contribute an expected Euro15m to EBITDA in 2023. As part of its sustainability commitments it has set a CO2 emissions reduction target of around 30% by 2030, with emissions below 500kg/t of grey cement. However, it said that under the future European Taxonomy criteria white cement emissions are not included.
The group is planning to invest around Euro107m from 2021 to 2023 on sustainability and digitalisation. This includes a the construction of a new calcination plant in Denmark for the production of its Futurecem product and, the installation of wind turbines with an installed capacity of 8.4MW. It is also planning to increase the alternative fuels substitution rate at its integrated Gaurain plant in Belgian to 80% from 40% and invest in the use of natural gas and biogas in some of its plants.
US: The Mississippi Lime Company (MLC) has appointed Ryan Seelke as its Director of Safety. His focus will be on proactive risk-based safety practices, leadership, and training.
Prior to joining MLC, Seelke worked at Doe Run as a leader in their safety department. He also owned and led a private legal practice specialising in mine safety law and consulting before that assignment. He holds an MBA from St. Louis University, a law degree from Washington University and an economics degree from the University of Central Missouri. He is also pursuing a master’s degree in Occupational Safety Management from the University of Central Missouri. In addition, Ryan is a Mine Safety and Health Administration (MSHA) certified trainer.
Mexico/US: Cemex has invested US$15m in recommissioning a 1Mt/yr cement kiln at its CPN cement plant in Hermosilla, Sonora. The decision is intended to reduce cement shortages in the western US and bolster its supply chain in Arizona, California and Nevada. The project at the CPN plant is scheduled for completion in the second quarter of 2021 and will create 130 jobs.
Cemex USA cement commercial executive vice president Joel Galassini said, “Many cement customers in California, Arizona and Nevada have been impacted by supply constraints this past year. The decision to recommission this kiln was made with our customers top-of-mind, to give them reliable access through a local supply chain to help meet their growing needs. Our unique network of production facilities in this region allows us to make these types of investments that will have a meaningful impact on meeting our customers’ needs.”
California regional president Francisco Rivera said, “We are excited to build greater synergies with our Mexican operations to strengthen our US cement supply chain and help our customers avoid or mitigate any potential delays to their projects in 2021.”
Portland Cement Association updates economic forecast
01 February 2021US: The Portland Cement Association (PCA) has updated its winter 2020 – 2021 economic forecast. Senior vice president and chief economist Ed Sullivan said that in light of possible delays of three months or more to the national Covid-19 vaccine rollout, predicted robust economic recovery will be ‘slower than expected’ compared to expectations stated in the original forecast in December 2020. The PCA’s Market Intelligence Group expects cement consumption to grow by nearly 1% year-on-year in 2021, fueled largely by residential construction.