The pace of decarbonisation for cement producers worldwide varies significantly depending on a multitude of factors, both internal and external to the company.
Industrial regulation and resource availability are both key external factors. High landfill costs in Europe in tandem with mature waste management systems coupled with an increasingly stringent emissions trading system have resulted in high levels of alternative fuel utilisation across the region. According to CEMBUREAU’s 2022 Activity Report, the average thermal substitution rate (TSR) for cement producers in the EU is over 50 per cent.
Meanwhile, in India the high availability of fly ash for manufacturing blended cements has allowed this industry to achieve world-class levels of clinker reduction. On average in India, the clinker factor is 65-70 per cent, according to the Cement Manufacturers Association (India).
In many other countries, however, where these positive external conditions prevail, progress on decarbonisation tends to be far less advanced.
In Vietnam, for example, where Cemtech Asia 2023 was held last week and which is home to one of the largest industries in the world (112Mta capacity), the average TSR is just one per cent. Here, the typical regulatory and economic drivers for alternative fuels, long established in Europe, are entirely absent.
The use of cement extenders is growing, and with good availability of fly ash, blended cement types are increasingly available on the market.
Nevertheless, direct CO2 emissions (kg/t of cement) are estimated at 667kg, according to the Vietnam National Cement Association,13 per cent above the worldwide average of 590kg (IEA estimates) or 550kg for Holcim (Switzerland), one of the leading multinationals.
Given these benchmark figures, it was impressive to learn that Siam City Cement (Vietnam) Ltd, a subsidiary of the Thailand-based INSEE group, has achieved far superior levels of decarbonisation, primarily achieved through the increase of alternative fuels and clinker factor reduction.
In his presentation at Cemtech Asia, Eamon Ginley, CEO of SCC, revealed the company’s direct CO2 emissions at 419kg/t of cement were a gaping 37 per cent lower than the Vietnam average, and even 24 per cent below Holcim group average.
According to Ginley, these achievements were the result of a deliberate long-term strategy to increase co-processing and minimise the use of fossil fuels. The company started developing its waste fuel supply chain 16 years ago, creating a reliable source of alternative fuels from textile and plastic waste, biomass in the form of rice husk, paints, solvents and other materials.
The company’s Hon Chong plant reached a TSR rate of 27 per cent in 2020 and is on track to reach 43 per cent by 2030 – 20 years ahead of the target set by the Global Cement and Concrete Association (GCCA) in its recently-published Net Zero roadmap.
Moreover, the company is developing a new low carbon cement product portfolio to drive down its clinker factor. Already, it is the only company in Vietnam to have all of its products certified by an Environmental Product Declaration (EPD) and the Singapore Green Building Product Certificate (SGBP).
These remarkable achievements have only possible due to long-term commitment from top management, Mr Ginley argues. The company has been explicit in creating a roadmap with targets, and methodical in developing internal capabilities, aligning technologies, and creative in accessing green finance to provide the funds required for the associated investments.
The benefits to SCC go well beyond decarbonisation. All activities have to be economically viable – SCC is a business operating in a competitive environment where lowest cost production is a prerequisite for success.
Fuel diversification away from fossil fuels during the last two years when coal prices have surged has given them a competitive advantage, and offset the brutal cost inflation and price pressures caused by an oversupplied local market.
Moreover, while many producers have had to stop kilns this year due to poor local demand and a collapsed export market, SCC is moving ahead with plans to install a new kiln at Hon Chong.
SCC’s experience should inspire producers worldwide to explore all avenues for decarbonisation as early as possible. The results may be surprising.
