Displaying items by tag: costs

India: HeidelbergCement India’s results in the second quarter of the 2022 financial year showed an 11% year-on-year rise in sales to US$76.1m from US$68.5m in the corresponding quarter of the 2021 financial year. Dion News Service has reported that the company’s net profit for the quarter was US$7.96m, down by 4.6% from US$8.34m. Its operating costs were US$61.5m, up by 19% from US$51.8m.

Pakistan: The government of the Punjab will charge cement producers in the state up to US$0.93/m³ for ground water used in their cement production. The Dawn newspaper has reported that the charge will depend on water availability, and be US$0.6/m³ in water secure areas, US$0.85/m³ in semi-critical areas and US$0.93/m³ in critical areas most affected by drought. The measure aims to encourage rainwater harvesting in order to preserve water tables. The charges will fall upon Maple Leaf Cement, Gharibwal Cement, Dandot Cement, Flying Cement, Askari Cement and Fauji Cement. They will remain in force until the establishment of a Punjab Water Services Regulatory Authority and its enactment of water extraction rates.

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.

Spain/Norway: A team from Cartagen Polytechnic and Ostfold University College has demonstrated that Cementos La Cruz could reduce the cost of its concrete production by Euro1.45/m3, or Euro29,000/month by curing concrete with captured CO₂. EuropaPress has reported that the use of CO₂ would reduce the amount of cement required by 7 – 8%. This in turn would remove an estimated 4.6% of CO₂ from the concrete’s production.

US: The US Department of Energy has selected Central Plains Cement to receive US$5m-worth of funding to realise its plans for a cryogenic carbon capture (CCC) installation at its Sugar Creek, Missouri, cement plant. Contify Energy News has reported that the system will initially have a capacity of 30t/day of CO₂, with a view to eventually capturing 95% of the plant’s flue gas’ CO₂ content. The Eagle Materials subsidiary will receive US$5m in funding from the US Department of Energy for the project. The sum is part of a raft of a total US$45m-worth of grants to help towards decarbonising heavy industry and natural gas power. Chart Industries will carry out the work.

Chart Industries CEO and President Jill Evanko said that the company’s CCC model increases cement production costs by just 24%, compared to 38% - 130% for other types of system. She added “We are delighted that public and private entities recognise Chart as a leader in carbon capture technologies and products; we view this award as well as our third quarter 2021 commercial activity as meaningful steps and accelerators toward capturing - pun intended - a significant share of our anticipated US$6bn total addressable market for carbon and direct air capture in 2030.”

The St Louis Post newspaper has reported that Holcim US’s Ste-Genevieve, Missouri, cement plant is also among facilities chosen to receive funding for carbon capture and storage (CCS) installations.

Mexico: Cemex CEO Fernando Gonzalez has estimated that the impacts of the Covid-19 outbreak will cost the group US$100m in 2021. Gonzalez attributed the anticipated negative effect on full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) to supply chain disruptions and currency effects, especially on the Mexican Peso, as well as delays to projects globally.

Belgium: The low-emissions intensity lime and cement (LEILAC) consortium has published the results of its LEILAC-1 carbon capture and storage (CCS) study at HeidelbergCement’s Lixhe cement plant in Visé. The study found the cost of CCS to be Euro14 – 24/t of CO2 captured. It found that full-chain CO2 mitigation projects incur costs are Euro39 – 80/t, depending on transport and storage selections.

EU Emissions Trading Scheme (ETS) credits currently cost Euro62/t.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) recorded a 5.7% year-on-year decline in overall cement sales in the first quarter of the 2022 financial year to 12.8Mt from 13.6Mt in the corresponding period of the 2021 financial year. Intensified local construction activity increased domestic cement sales by 4% to 11.3Mt/yr from 10.9Mt/yr.

Costs increased – notably the price of coal, which more than tripled year-on-year to US$210/t from US$68/t. Its transport costs from South Africa more than doubled to US$30/t from US$11/t. Currency effects exacerbated the rise in costs. The Dawn newspaper has reported that exports fell by 44% in the period to 1.55Mt from 2.74Mt. Afghanistan had previously received 606,000t of Pakistani cement exports, 22% of the total. This figure fell by 36% year-on-year to 389,000t, 25% of the first-quarter 2021 total, due to political unrest and increased transport costs.

US: Lhoist will raise the price of its lime products by US$0.2/t for every US$0.05 rise in its natural gas costs above US$2.6/MMBtu from 1 November 2021. The producer says that the price rise reflects supply challenges and increased costs, of which energy costs have risen most significantly.

The producer said “We regret having to implement this energy surcharge, but believe it necessary in the face of these energy-related cost increases. Additionally, please note that this surcharge is independent of and in addition to 2022 price increases that will be necessary for Lhoist to keep pace with general inflationary factors impacting its cost structure.” It added “We appreciate your business and cooperation during this difficult time. If you have any questions regarding the above, feel free to contact your Lhoist sales representative.”

Poland: Germany-based HeidelbergCement has partnered with Norway-based Sintef Energi install a pilot carbon capture and storage (CCS) system at its Górazdze cement plant. The company will deploy new enzyme-based CCS technology, which it says allows greater use of the waste heat and simplifies the control of secondary emissions. The project, known as Project ACCSess, has received Euro15m-worth of funding from the EU’s Horizon 2020 industrial emissions reduction programme. 18 industry partners and research organisations will collaborate towards the deployment of the technology at the plant. The consortium will store captured CO₂ in storage fields in the Nordic countries. The project is due to conclude in April 2025. The total cost of the work is Euro18m.

HeidelbergCement chair Dominik von Achten said “The tests of an enzyme-based capture unit at our Górazdze plant in Poland will deliver important insights into how we can further reduce costs in the capture process.” He added “At the same time, it will emphasise our strategy to expand CCS further into our Eastern Europe-based assets.”