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Displaying items by tag: lime

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SigmaRoc to buy CRH's Polish lime operations

05 June 2024

UK/Poland: SigmaRoc announced it has entered a share purchase agreement and exercised a call option to acquire the Polish lime operations of CRH. The deal, valued at €100m for deferred consideration, follows SigmaRoc's acquisition of CRH's lime operations in Germany, Ireland, the Czech Republic and the UK. The acquisition includes two production sites in Kujawy and Sitkowka, along with an associated distribution network. Completion is contingent upon clearance from the Polish Competition Office, anticipated by the end of September 2024.

SigmaRoc said it is ‘pleased’ with the progress to date on the integration of the German, Czech, Irish and UK entities, and will provide a further update alongside its interim results for the period ending on 30 June 2024.

Published in Global Cement News
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When the CO2 starts flowing for the cement sector

22 May 2024

Delegates at the Global CemCCUS Conference last week applauded when Anders Petersen, the Senior Project Manager Brevik CCS, Heidelberg Materials said that the Brevik cement plant will be capturing CO2 and permanently storing it within the year. Rightly so. This moment will mark a historic milestone for the sector when it arrives. Net zero cement production is coming.

Last week’s event in Oslo delivered an overview of the current state of carbon capture in the cement and lime industries. It explored the practical challenges these industries face in capturing CO2 emissions and - crucially – then working out what to do with them afterwards. Incredibly, delegates were able to view the construction site of Heidelberg Materials’ forthcoming full-scale carbon capture unit at its Brevik plant in Norway. On the same day as the tour, Holcim broke ground on the Go4Zero carbon capture project at its Obourg plant in Belgium.

The key takeaway at the conference was that a (dusty) bulk solids sector is starting to work with handling (clean) gases in a way it hasn’t before. This recurred repeatedly throughout the conference. Petersen summarised it well when he described Brevik as a meeting pointing between the cement industry and the petrochemical one. It looks likely at present that there will not be a single predominant carbon capture technology that the majority of cement plants will deploy in the future. Similarly, CO2 storage infrastructure and sequestration sites differ. Utilisation plans are less developed but also offer various options. Yet, if carbon capture becomes common at cement and lime plants, then these companies will need to learn how to filter and handle gases regardless of the capture method and destination for the CO2. So presentations on filtration and compressors were a revelation at CemCCUS.

The key obstacle remains how to pay for it all. By necessity, most of the big early projects have received external funding, mostly from governments. Although, to be fair, the private companies involved are often investing considerable amounts of their own money and taking risks in the process too. In the European Union (EU) CO2 is being priced via the Emissions Trading Scheme and investments are being made via the EU Innovation Fund and other schemes. In the US the approach lies in tax breaks, on-shoring and investment in new sustainable technologies.

However, other countries have different priorities. Or as a South Asian contact told Global Cement Weekly at a different conference, “How can our government think about sustainability when it can’t feed everyone?” The world’s biggest cement producing countries are China and India, and then the EU and the US follow. Brazil, Türkiye and Vietnam are at similar levels or not far behind. The EU and the US represent about 9% of global cement production based on Cembureau figures for 2022. China and India cover 61% of production. Neither of these countries has announced a plan to encourage the widespread construction of carbon capture units. Once China ‘gets’ cement carbon capture though, it seems plausible that it will dominate it as it has in many other sectors such as solar panel production. Exporters such as Türkiye and Vietnam will have to adapt to the rules of their target markets.

The march by the cement and lime sectors towards carbon capture has been long, difficult and expensive. It also has a long, long way to go. Yet, the next decade promises to be exciting as new technologies are developed and tested, full-scale projects are commissioned and CO2 pipelines, sequestration sites and usage hubs come online. The next key milestones to look out for include the first full-scale installations using other capture methods (such as oxy-fuel kilns), the first CO2 pipeline network that hooks up to a cement plant, the first land-based sequestration site, the first industrial hub that uses CO2 at scale to manufacture a product, new government policies in China and India, and the first large unit that is funded entirely from private finance. To end on a positive note, a Cembureau representative at the Global CemCCUS Conference reckoned that Europe will be able to capture 12Mt/yr of CO2 by 2030. If it happens, this will be a major achievement and a serious statement of intent towards net zero for the sector.

This short recap of the event barely touches the surface of what happened so be sure to read the full review of the 1st Global CemCCUS Conference.

The 2nd Global CemCCUS Conference will take place in Hamburg in May 2025

Published in Analysis
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South Korea investigates low-lime cement for reduced CO₂ emissions

02 April 2024

South Korea: A recent study from Daejeon explored the potential of low-lime calcium silicate cement as a low CO₂ emission alternative to Ordinary Portland Cement. Researchers from the Korea Institute of Geoscience and Mineral Resources examined the setting and flow characteristics of a mixture of Ordinary Portland Cement and low-lime calcium silicate cement under carbonation curing conditions. The study was financially supported by the Ministry of Trade, Industry & Energy's industrial strategic technology development programme.

The study aimed to explore the reaction and microstructural characteristics of these cement pastes. The low-lime calcium silicate cement was synthesised using limestone and silica fume, with varying proportions added to the Portland cement pastes. The research findings suggest improvements in compressive strength with the inclusion of 30% or more low-lime calcium silicate cement, highlighting its ability to enhance the durability and sustainability of construction materials.

Published in Global Cement News
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CRH sells UK lime business

27 March 2024

Ireland: CRH says that it has completed the sale of its UK lime business. The sale concludes the second phase of the group’s divestment of its lime operations in Europe, first announced in November 2023. The total sale value of CRH’s European lime business is US$1.1bn.

Published in Global Cement News
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Umeå University joins ELECTRA project for green industry transition

22 March 2024

Sweden: Umeå University is part of the ELECTRA project, a €20m EU initiative aimed at advancing green transition in cement and lime production through electrified processes. This project, involving global industry leaders, is funded under the Horizon Europe initiative and led by VTT Technical Research Centre of Finland.

The Department of Applied Physics and Electronics at Umeå University has collaborated with the Swedish quicklime and cement industry since 2007. Matias Eriksson, director of the Centre for Sustainable Cement and Quicklime Production at Umeå University, said “This is an important project. It is the first Horizon Europe project we are participating in," He continued "We are pleased with the confidence the European Commission, heavy materials industry and other research performers show in our work. ELECTRA can play an important role in the industry's green transition, first and foremost in Sweden and the rest of Europe. But because the technology and the industry are global, the effects can be extensive."

Published in Global Cement News
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Adbri's lime contract with Alcoa ends early

21 March 2024

Australia: Adbri has announced the early termination of its contract to supply quicklime to aluminium producer Alcoa, ending in April 2024 instead of the original plan for six months later. This decision is part of an amendment to meet changing demand. The news comes amid Adbri's ongoing review of its Western Australia lime operations and follows Alcoa's recent production curtailment at its Kwinana refinery. Adbri previously supplied to three Alcoa alumina refineries in Western Australia, but the number was reduced to one in 2021. 

Adbri is also in the process of finalising a US$2.1bn buyout with Irish company CRH.

Published in Global Cement News
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Azerbaijan's construction materials sector grows in first two months of 2024

18 March 2024

Azerbaijan: The latest figures from the State Statistical Committee show a 35% year-on-year increase in the value of building materials produced in Azerbaijan, to US$102m in January - February 2024. Cement production notably surged to 546,000t in the two-month period, a 30% increase. However, clinker production fell by 17% year-on-year. The production of ready-mix concrete increased by 60%, but construction lime production dropped by 57%. These trends continued an increase in building materials production from 2023, when it rose by 32% from 2022 levels.

Published in Global Cement News
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Update on Chile, February 2024

14 February 2024

A few news stories from Chile give us the opportunity to take at look at the local cement market this week. Firstly, Freehill Mining was keen to promote a new order it has obtained from Cementos Melón. The Australia-based company operates magnetite mineral concessions at Yerbas Buenas, about 500km north of Santiago. The US$180,000 deal starts in March 2024 but the raw material supplier says it is currently negotiating a longer-term supply contract with Melón for larger volumes in the future.

A large order for raw materials is not unusual, although the public nature of the Freehill Mining one suggests that the mining company is promoting itself. The story also highlights the importance of the mining sector in Chile. However, a wider view of the Chilean cement sector could be glimpsed recently from the latest cement despatch data from La Cámara Chilena de la Construcción (CCHC). Despatches fell by 11% year-on-year to 5.2Mt in 2023 from 5.9Mt in 2022. As can be seen in Graph 1, despatches recovered in 2021 following the first year of the Covid-19 pandemic but they have declined since then.

Graph 1: Cement despatches in Chile, 2018 – 2023. Source: La Cámara Chilena de la Construcción.

Graph 1: Cement despatches in Chile, 2018 – 2023. Source: La Cámara Chilena de la Construcción.

Two of the three larger cement producers have reacted to these market conditions in the last couple of years by cutting costs. Cementos Melón started a restructuring process in late 2022 whereupon it closed down a concrete plant at Penalolen near Santiago and embarked on a spending review. Its income fell by 4% year-on-year to US$182m in the first nine months of 2023, from US$189m in the same period in 2022. Cemento Polpaico followed suit in November 2023 by closing two concrete plants in the Santiago Metropolitan Region and temporarily suspending operations at its Quilicura cement grinding plant with work shifted to the integrated Cerro Blanco plant instead. In June 2023 it reported that its income had risen slightly year-on-year for the first half of 2023, but it noted a loss compared to a profit previously. Cbb (formerly Cementos Bío Bío) managed to avoid the fate of its peers mainly through the performance of its lime division. Its cement and concrete shipments fell by 9% and 15% year-on-year to 775,000t and 750,000m3 respectively in the first nine months of 2023. It blamed the falling sales volumes on a decline in economic activity that dragged upon investment in infrastructure and housing. However, lime shipments grew by 2% following tough trading conditions in 2022 due to high fuel costs, amongst other reasons. Altogether this meant that the company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 54% to US$44.3m from US$28.8m.

Finally, a third news story this week illustrated one reaction to the poor construction market in Chile, when Unacem Chile announced that it was buying two concrete plants, at San Antonio and Talca. Once the US$1m deal completes, the subsidiary of Peru-based Unión Andina de Cementos (UNACEM) will hold 12 concrete plants in the country. This follows its entry into the market in 2018 when it acquired Hormigones Independencia from Cementos Polpaico. In December 2023 Grupo Gloria subsidiary Cal y Cementos Sur (Calcesur) said that it was preparing to strengthen its presence supplying lime to the mining sector both at home in Peru and in neighbouring countries including Chile. While this isn’t a cement story, Grupo Gloria does operate the integrated Yura plant near Arequipa in southern Peru and this resonates with both the mining and lime sectors.

Chile’s cement market is suffering as the general construction market contracts. Yet as the stories from Freehill Mining and Calcesur show, the mining sector remains a key part of the national economy and this links to the cement industry. Another related story, for example, is a US$39m deal that Denmark-based FLSmidth signed in mid-2023 to supply equipment for a copper mine. Chile’s northern neighbour Peru has a cement sector that is nearly twice as large based on production capacity and some of its producers look internationally for expansion opportunities, as in the example of Unacem Chile. The CHHC didn’t hold back in mid-January 2024 when it said that it forecast that 2024 would be the worst year for investment and construction spending since the late 2010s. Yet it also expects the decline in the construction sector to slow as gains from government infrastructure spending continue to almost counteract falls in the private sector. Until the situation improves, it continues to lobby for economic reforms.

For more information on cement markets in South America read the feature in the February 2024 issue of Global Cement Magazine

Published in Analysis
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Maerz commissions two lime kilns at Guizhou Gangli plant in Guizhou province

24 January 2024

China: Switzerland-based Maerz has commissioned two lime kilns for Guizhou Gangli Xinmin New Material’s plant in Guizhou province. The new plant includes a 600t/day R4S kiln and an 800t/day R5S kiln. Both kilns are coal fired. This is the first time Maerz has supplied kilns to Guizhou Gangli. As part of the project, Maerz supplied engineering and key equipment as well as technical support services for the commissioning and firing of the kilns. Maerz’s long-standing local partner Shanghai Maiyao built the turnkey plants and will operate them on behalf of the customer for the next few years.

Published in Global Cement News
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CRH completes divestment of lime operations in Czech Republic, Germany and Ireland

04 January 2024

Europe: Ireland CRH announced the completion of its divestment of its lime operations in the Czech Republic, Germany and Ireland on 4 January 2024. The deal marks the first phase of the group’s divestment of its entire European lime business, for US$1.1bn.

Published in Global Cement News
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