Displaying items by tag: carbon capture

The Coronavirus Disease 2019 (COVID-19) took on direct implications for the international cement industry this week when an Italian vendor infected with the virus visited Lafarge Africa in Ogun state, Nigeria. The cement producer said that it had ‘immediately’ started contact tracing and started isolation, quarantine and disinfection protocols. This included initiating medical protocols at its Ewekoro integrated plant, although local press reported the unit’s production lines were still open. Around 100 people were thought to have had contact with the man.

Global Cement has been covering the epidemic since early February 2020 when the virus’ effect on the construction industry in China started to become evident. First, an industry event CementTech was postponed, financial analysts started forecasting negative financial consequences for producers and plants started going into coronavirus-related maintenance or suspension cycles. Then at least one plant started to dispose of clinical waste and now China National Building Material Group (CNBM) is considering how to restart operations at scale. Also, this week Hong Kong construction companies reportedly laid off 50,00 builders due to a lack of cement due to the on-going production suspension in China.

The major cement companies have identified that their first business risk from coronavirus comes from simply not having the staff to make building materials. LafargeHolcim’s chief executive officer Jan Jenisch summed up the group’s action in its annual financial results for 2020 this week when he said, “We are taking all necessary measures to protect the health of our employees and their families.” Other major cement producers that Global Cement has contacted have placed travel restrictions for staff and reduced access to production facilities.

The next risk for cement companies comes from a drop in economic activity. The Organisation for Economic Co-operation and Development (OECD) forecasts a global 0.5% year-on-year fall in real gross domestic product (GDP) growth to 2.4%, with China and India suffering the worst declines in GDP growth at around 1%. The global figure is the worst since the -0.1% rate reported by the International Monetary Fund (IMF) in 2009. The OECD blamed the disease control measures in China, as well as the direct disruption to global supply chains, weaker final demand for imported goods and services and regional declines in international tourism and business travel. This forecast is contingent on the epidemic peaking in China in the first quarter of 2020 and new cases of the virus in other countries being sporadic and contained. So far the latter does not seem to have happened and the OECD’s ‘domino’ scenario predicts a GDP reduction of 1.5%. All of this is likely to drag on construction activity and demand for cement and concrete for some time to come.

Moving to cement markets and production, demand is likely to be slowed as countries implement various levels of isolation and quarantine leading to reduced residential demand for buildings directly and as workforces are restricted. Business and infrastructure projects may follow as economies slow and governments refocus spending respectively.

The UK government, for example, is basing its coronavirus action plan on an outbreak lasting four to six months. This could potentially happen in many countries throughout 2020. This has the potential to create a rolling effect of disruption as different nations are hit. Assuming China has passed the peak of its local epidemic then its producers are likely to report reduced income in the first quarter of 2020. The effect may even be reduced somewhat due to the existing winter peak shifting measures, whereby production is shut down to reduce pollution. Elsewhere, cement companies in the northern hemisphere may see their busy summer months affected if the virus spreads. The effect on balance sheets may be visible with indebted companies and/or those with more exposure to affected areas disproportionately affected. The wildcard here is whether coronavirus transmits as easily in warmer weather as it does in the cooler winter months. In this case there may be a difference, generally speaking, between the global north and south. Exceptions to watch could be cooler southern places such as New Zealand, Argentina and Chile. Shortages, as mentioned above in Taiwan, potentially should be short term, owing to global overcapacity of cement production, as end users find supplies from elsewhere.

The cement industry is also likely to encounter disruption to its supply chains. Major construction projects in South Asia are already reporting delays as Chinese workers have failed to return following quarantine restrictions after the Chinese New Year celebrations. As other countries suffer uncontrolled outbreaks then similar travel restrictions may follow. Global Cement has yet to see any examples of materials in the cement industry supply chain being affected. On the production side, raw mineral supply tends to be local but fuels, like coal, often travel further. Fuel markets may prove erratic as larger consumers cut back and suppliers like the Organisation of the Petroleum Exporting Countries (OPEC) react by restricting production.

On the maintenance side cement plants need a wide array of parts such as refractories, motors, lubricants, gears, wear parts for mills, ball bearings and so forth. Some of these may have more complicated supply chain routes than they used to have 30 years ago. On the supplier side any new or upgrade plant project is vulnerable if necessary parts are delayed by a production halt, logistics delayed and/or staff are prevented from visiting work sites. Chinese suppliers’ reliance on using their own workers, for example, might well be a hindrance here until (or if) international quarantine rules are normalised. Other suppliers’ weak points in their supply chains may become exposed in turn. This would benefit suppliers with sufficiently robust chains.

Chinese reductions in NO₂ emissions in relation to the coronavirus industrial shutdown have been noted in the press. A wider global effect could well be seen too. This could potentially pose problems to CO₂ emissions trading schemes around the world as CO₂ prices fall and carbon credits abound. This might also have deleterious effects on carbon capture and storage (CCS) development if it becomes redundant due to low CO₂ pricing. In the longer-term this might undesirable, as by the time the CO₂ prices pick up again we will be that much nearer to the 2050 sustainability deadlines.

COVID-19 is a new pandemic in all but name with major secondary outbreaks in South Korea, Iran and Italy growing fast and cases being reported in many other countries. The bad news though is that individual countries and international bodies have to decide how to balance the economic damage disease control will cause, versus the effects of letting the disease run unchecked. Yet as more information emerges on how to tackle coronavirus, the good news is that most people will experience flu-like symptoms and nothing more. Chinese action shows that it can be controlled through public health measures while a vaccine is being developed.

Until then, frequent handwashing is a ‘given’ and many people and organisations are running risk calculations on aspects of what they do. It may seem flippant but even basic human interaction such as the handshake needs to be reconsidered for the time being.

UK: Germany-based HeidelbergCement’s subsidiary Hanson Cement will be the subject of a study in the use of biomass and hydrogen fuels coordinated by the Mineral Products Association (MPA). The Department for Business, Energy and Industrial Strategy is funding the Euro3.81m study, the results of which it says will be shared across the cement industry. HeidelbergCement CEO Dominik von Achten said, "In addition to our activities in the field of carbon capture, use and storage (CCUS), this project is an important step towards realising our vision of carbon-neutral concrete by 2050.”

Canada: McInnis Cement, Écotech Québec and the Gaspésie Cleantech Hub, in collaboration with the Québec Ministère de l’Économie et de l’Innovation, have launched a call for innovations to identify carbon capture and utilisation technologies for the Port-Daniel-Gascons, McInnis cement plant. This call for innovations will run until May 2020 and then selected organisations will be invited to explore future options.

“From the moment the company was founded, McInnis Cement has been exploring the option of replacing some of the hydrocarbons used as fuel for the plant with locally generated residual forest biomass so as to reduce its environmental emissions,” said Maryse Tremblay, Director of Communications and Corporate Social Responsibility at McInnis Cement. She added that a study to verify the feasibility of using this type of alternative fuels is underway and that this may be followed by a pilot project.

Écotech Québec is a non-profit organisation, funded by the provincial government, which represents Québec's ‘clean’ technology cluster. It supports businesses, researchers, investors and associations to help accelerate the development, financing and commercialisation of clean technologies. The Gaspésie Cleantech Hub is an economic development organisation created to help the region increase the economic benefits of establishing the McInnis cement plant.

France: Following a successful trial that began in December 2019, LafargeHolcim has inaugurated a FastCarb CO₂ absorption accelerator into concrete production at its Val d'Azergues cement and concrete plant (integrated capacity 0.4Mt/yr) in Lozanne. The technology involves the capture of CO₂ from the plant’s cement kiln for reinjection into concrete produced with recycled aggregates. François Petry, LafargeHolcim France managing director, said the installation ‘fits perfectly into our Lafarge 360 approach for more responsible construction.’ The five-pillar approach consists of alternative fuel substitution and development, power consumption reduction, formulation of new cements, cooperation with Airium insulation solutions and assistance with low-carbon building design.

If you needed a sign that the cement industry has become serious about carbon capture it was the presence of two organisations offering CO₂ transport and storage capacity in northern Europe at last week’s Innovation in Industrial Carbon Capture Conference 2020 (IICCC). Both Norway’s Northern Lights and the Rotterdam CCUS (Project Porthos) were busy at their stands during the event’s exhibition. Meanwhile, Cembureau, the European Cement Association, said that it will work on finding other potential storage sites for CO₂ and on identifying existing gas pipelines that could be converted. The industry is planning what to do about CO₂ transport and storage.

As with the previous IICCC event in 2018 the heart of the programme was the Low Emissions Intensity Lime And Cement (LEILAC) project. Since then Calix’s 60m tall pilot Direct Separation Calciner unit has been built at the HeidelbergCement cement plant in Lixhe and has been tested since mid-2019. Early results look promising, with CO₂ separation occurring, calcined material produced and the tube structure and mechanical expansion holding up. Problems with thermocouples failing, blockages and recarbonation at the base of the tube have been encountered but these are being tackled in the de-bottlenecking phase. Testing will continue well into 2020 and plans for the next demonstration project at another cement plant in Europe are already moving ahead. LEILAC 2 will see industry partners Cimpor, Lhoist, Port of Rotterdam and IKN join Calix, HeidelbergCement and other research partners to work together on a larger 0.1Mt/yr CO₂ separation pilot scheduled for completion in 2025.

Alongside this HeidelbergCement presented a convincing vision of a carbon neutral future for the cement industry at the IICCC 2020. It may not be what actually happens but the building materials producer has a clear plan across the lifecycle chain of cement. It is researching and testing a variety of methods to capture CO₂ process emissions, is looking at supply chains and storage sites for the CO₂ and is working on recycling concrete as aggregates and cementations material via recarbonation. In terms of carbon capture technology, an amine-based industrial scale CCS unit looks likely to be built at Norcem’s Brevik plant in the early 2020s. HeidelbergCement’s other joint-research projects – direct separation and oxyfuel – are further behind, at the pilot and pre-pilot stages respectively. Each technology looks set to offer progressively better and cheaper CO₂ capture as they come on line.

Or put another way, cement companies in Europe could build industrial scale amine-based carbon (CC) capture plants now. Yet the game appears to be to wait until the cost of CCS falls through new technology versus the rising emissions trading scheme (ETS) price of CO₂. CC is expected to become economically feasible in a decade’s time, sometime in the 2030s. At which point there might be an upgrade boom as plants are retrofitted with CC units or new production lines are commissioned. Other ways of reducing the cement industry’s CO₂ emissions, of course, are being explored by other companies such as further reducing the clinker factor through the use of calcined clays (LC3 and others), solar reactor or electric-powered kilns and more.

The usual problem of how the construction industry can cope with a higher cost of cement was acknowledged at IICCC 2020 but it is largely being worked around. Higher priced cement poses competitive issues for specifiers and construction companies but it is widely expected to result in price rises below 5% for most residential end users. In the short-term government policy such as requiring low carbon cement in state building projects could stimulate the market. The start of this process can be seen already with the use of slag cements in various infrastructure projects.

Hans Bergman, Head Unit ETS Policy Development at the Directorate-General for Climate Action (DG Clima) partly addressed the cost issue by talking about the EU Green Deal. The EU wants to meet its new targets but it also wants to let gross domestic product (GDP) rise whilst greenhouse emissions fall. The EU ETS is its principle vehicle for this but the commission is wary of changes, such as making modifications linked to CCS, in case it undermines the system. Discussions are ongoing as the work on the Green Deal continues.

IICCC was a wider forum beyond just what LEILAC is up to. To this extent the CC projects involve multiple partners, including those from other cement companies like Cemex and Tarmac (CRH) in LEILAC and Dyckerhoff (Buzzi Unicem), Schwenk Zement and Vicat in the oxyfuel project. The decarbonisation fair included representatives from Vicat’s FastCarb project and Polimi’s Cleanker. Speakers from the European Climate Foundation, Acatech, INEA, TCM, SINTEF and Lhoist were also present.

During one speaker discussion Calix was described as the 'Tesla' of industrial CC by one speaker, who said that, “…there is a genuine competitive opportunity for those bold enough to grasp it.” Calix’s managing director Phil Hodgson enjoyed the accolade but the point was that leading innovation or setting the agenda offers advantages. In the case of industrial CC for the cement industry, change feels a step closer.

US: Holcim US’s 1.9Mt/yr Portland cement plant in Colorado has become the latest site to host a large-scale cement plant carbon capture and storage (CCS) study. Holcim US, in partnership withCanada-based Svante, France-based Total and US-based Occidental subsidiary Oxy Low Carbon Ventures, will install a facility designed to capture 0.73Mt/yr of CO2, which Occidental will take for safe storage underground. The study will assess the financial viability and design requirements of such an installation on a permanent basis.

Hungary: Lafarge Cement Hungary has announced plans to upgrade clinker production at its 1.0Mt/yr Kiralyagyháza integrated plant with a Euro1.79m investment in chlorine bypass technology, which uses powdered limestone to remove chlorine and one tenth of the carbon dioxide (CO₂) from gases released in clinker production, which will then be used in clinker cooling. There will be a concomitant increase in the rate of alternative fuel (AF) substitution in the plant’s kilns, with an AF fuel store expansion in early 2020 set to raise AF usage to 80% from 60%.

Germany: Four of Europe’s leading cement producers have partnered to found and operate a 100% carbon capture and storage (CCS) plant at Schwenk Zement’s 1.0Mt/yr Mergelstetten plant in southern Germany. HeidelbergCement has announced that the catch4climate project will enter operation in 2020.

Belgium: A team of researchers from the University of Mons in Hainaut province has concluded a study in the use of amine-based solvents for carbon capture on between 20% and 60% CO₂ flue gas with funding from HeidelbergCement and the European Cement Research Academy. Lab tests and industrial-scale simulations showed that the solvents lowered regeneration energy, equivalent work and operating costs of carbon capture across the CO₂ concentration range of flue gases tested.

US: California-based Heliogen has developed concentrated solar-thermal plants (CSPs) with the ability to focus sunlight to generate temperatures over 1000°C by micro-adjusting mirrors using computer technology. It has now engaged Parsons Corporation to build arrays of its CSPs for installation in cement pre-calciners. Requiring 900°C heat, these represent the largest part of the industry’s CO₂ output. The technology will firstly reduce this by replacing fossil fuels with a clean heat source, which moreover entirely bypasses the electrical grid. Heliogen CEO Bill Gross says that the installations will make carbon capture and storage (CCS) of the remaining CO₂ emissions from the conversion of limestone to lime easier by removing other pollutants. Heliogen is now targeting 1500°C from its CSPs, which would enable them to supersede cement fuels in kilns.