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Emerging trends & challenges in Indian cement industry

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Cement companies put up capacities in excess of demand in anticipation of increased consumption of cement on account of expected hike in government spending, which did not materialize. N. A. Viswanathan, Secretary General, Cement Manufacturers’ Association dwells on the issues dogging the cement industry and spells out what needs to be done by the government to tackle these issues.Cement industry, which has a direct co-relation of 1.1 to 1.2 with GDP, plays a pivotal role in the infrastructure development of the country. Buoyed with various infrastructure policies and schemes of the government, particularly after 1982 (partial decontrol) of cement, this industry had added substantial cement capacities year-after-year, much ahead of the actual cement demand taking place. However, the overall slowdown in the economy at 6.5 per cent in FY12, which further contracted to 5.3 per cent in the Apr-Jun quarter of 2012, one of the lowest in nine years, resulting in dampening construction activities, weakening of the rupee value against dollar and higher interest rates of borrowings, to quote a few, have made a severe dent on the growth of the cement industry, from an average growth of around 10 per cent in the last couple of years to a low growth of 5 per cent in FY11 and 6.3 per cent in FY12 respectively. For no fault of theirs, the cement industry has recently been criticised and also harshly penalised for under-utilising the cement capacity, without appreciating the ground realities and the factors which have contributed to reduced capacity utilisation. Today, because of the huge mismatch between demand and supply of cement, the country is having about 93 million tonnes of excess cement capacity created after making colossal investments. To revive the economy from its present slackening mode, it is now imperative for the government to enh-a-nce cement demand by taking some positive and concrete policy measures.The backgroundThough the cement industry has been in existence since 1914, appreciable growth in the cement production has been witnessed only after the introduction of partial decontrol in 1982 culminating in total decontrol in 1989 and delicensing in 1991. With the implementation of liberalisation policies of the government in 1991 followed by government’s thrust on infrastructure development in the country, the pace of the growth of the cement industry has been unprecedented.Exponential GrowthThe burgeoning growth of the industry can be gauged from the fact that for creating the first 100 million tonnes capacity, prior to partial decontrol era, the industry took 83 long years, whereas to reach the second and third 100 million tonnes mark, the period had substantially shrunk to 11 years and less than 4 years, respectively (see chart). Cement capacity which was 64.55 million tonnes in 1990-91 reached 340.44 million tonnes in 2011-12. Similarly, cement production went up from 48.90 million tonnes to 247.32 million tonnes during the same period.World Class IndustryIndia is the second largest cement producing country in the world, next only to China both in quality and technology. It produces about 7 per cent of the global production. In 2010, world production of cement was 3294 million tonnes. It is a matter of concern that even after attaining the second position, our per capita cement consumption is very low at 180 kg., which is much below the global average of 450 kg. (see table).Per capita consumption of cement is accepted as an important index of the country’s economic growth. Hence, there is enough potential to enhance our per capita cement consumption to match with the world average.With the adoption of massive modernisation and assimilation of state-of-the-art technology, Indian cement plants are today most energy-efficient and environment-friendly and are comparable to the best in the world in all respects, whether it is kiln size, technology, energy consumption or environment-friendliness. Industry has progressively reduced its energy consumption from 800-900 kwh/tonne clinker in 80s to 650-750 kwh/tonne clinker now. Similarly, power consumption registered a remarkable improvement from 105-115 kwh/tonne cement to 70-90 kwh/tonne cement during the said period. Presently, about 99 per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology. Cement industry has now been making sincere efforts to utilise waste heat recovery in the plants.Problems plaguing the industryThere are a number of constraints and bottlenecks which are hindering the growth of this core sector industry. A few of the major concerns of the industry are discussed below:Excess cement capacity: Cement industry has been experiencing glut situation as there has been mammoth mismatch between cement demand and its supply. The industry had created the capacity on the back of government’s projection of potential cement demand arising out of the thrust given for infrastructure development in the country and the allocation of funds earmarked for the purpose. However, the cement demand, as projected, has not materialised, despite the capacity having been created well in advance after making huge investments.Acute shortage of coal: Coal is one of the major raw materials needed by the industry both in the manufacturing of cement and also for generating power. In the last couple of years, there has been a steep drop in the supply of linked coal to the cement industry from 70 per cent in FY04 to almost 39 per cent now, mainly due to diversion of coal to the power sector. Cement companies, therefore, have perforce to resort to either open market purchase or imported coal which works out to nearly 2 to 2.5 times higher than the domestic price or use of the alternate fuel like pet coke, lignite, etc. which also adds up significantly to the additional cost of production. What is worse, new capacities are not being given any coal under the Linkage Scheme and therefore there is a real fear that the shortage of the main fuel, with no assurance of its availability in future, may actually hamper the required capacity additions for future build up. With the increasing cost of coal and other input materials such as diesel, etc. the production cost of cement has gone up significantly.Inadequate availability of wagons: Rail is the ideal mode of transportation for cement industry. However, it has always been plagued by the short supply of wagons, particularly during the peak period. In addition to this, infrastructure constraints and also not factoring the points of view of the cement industry, which is one of its largest consumers, in the policies of the railways have been hampering the planned movement of cement to the consumption centres, adversely impacting the production schedule and also increasing the overall transportation cost of cement. Rail share for cement which was 53 per cent a couple of years back has come down to 35 per cent now, which is a matter of great concern both to the cement industry and the railways.Cement highly taxed: Although cement is a high volume low value product, it is one of the highly taxed commodities (60 per cent of the ex-factory price), even more than luxury goods. This is exclusive of the freight transportation, which is about 20 per cent of the operating cost. The levies and taxes on cement in India are far higher compared to those in the countries of Asia-Pacific region or even compared to the developing economies like Pakistan and Sri Lanka. Cement and steel are two major materials needed for construction of any infrastructure. However, it is ironic that the rate of VAT charged on cement and steel differs vastly. While the value-added tax (VAT) on steel is only four per cent, it is 12.5 per cent on cement/clinker which goes up to even 15 per cent in some of the states.Steep fall in cement exports: With the high incidence of government levies, infrastructure constraints at ports and the regulatory policies of the government providing encouragement for import of cement with nil custom duty, the export of cement and clinker from India has been steadily and continuously declining from 9 million tonnes in FY07 to 3.5 million tonnes in FY12, despite the fact that Indian cement industry is presently having the substantial excess capacity of cement and clinker.Use of fly ash unviable: Cement industry’s initiative and investment to the tune of more than Rs 1000 crore for effectively utilizing the industrial waste fly ash, which was otherwise posing a nuisance as a health hazard, has helped the thermal power plants in addressing and tackling the menace of fly ash related health and environmental hazards. However, power plants which had been earlier supplying fly ash to the cement industry free of cost have for the last couple of years, as per the order of the Ministry of Environment and Forests, started charging for fly ash from November 2009. The order has also made it mandatory for the cement plants having captive power plants to supply 20 per cent of the fly ash generated as free of cost to the small scale brick manufacturers, etc. within the vicinity of 100 kms of their plants. Both these have severely impacted the production cost of cement and also seriously threatened the fly ash recycling potential in the country.XII Plan – cement demand projectionsAs per the report submitted to the Planning Commission recently by the Working Group on Cement Industry for XIIth Plan, the country’s cement production and capacity is estimated to surge from 247.32 million tonnes and 340.44 million tonnes respectively in FY12 to 407.4 million tonnes and 479.3 million tonnes respectively by FY17.Future OutlookThe slackening economy will take at least one or two years to bounce back to its earlier level. This would, as a thumb rule, apply to the cement industry also. Since India has been emerging as one of the fastest growing economies in the world, the future outlook for cement looks to be bright, provided government formulates facilitating growth oriented policies so that our per capita cement consumption matches with at least with some of the developing economies.Measures for stimulating cement demandIt is imperative to bring back this core cement industry on higher and faster growth trajectory by revival of cement demand through faster growth of infrastructure sector, including roads, ports, airports, housing, irrigation projects, and so on. This would be possible particularly by bringing out more encouraging schemes for affordable housing with income tax relief and by constructing long-lasting cement concrete roads and adopting cement concrete canal lining to conserve 50 per cent precious water that presently seeps through our unlined canals. Water thus saved can be effectively utilized for our agriculture and other needs. The government’s long cherished ‘dream’ to provide ‘world-class standard roads’ can be fulfilled only if cement concrete roads and white topping (a technology on which a concrete layer is laid on the existing bitumen road) are adopted in the country on a larger scale. It is a well-established fact that cement concrete roads are long-lasting, maintenance-free for 30-40 years and today, in most of the cases, are even economical than bitumen roads in the construction stage itself and are, therefore, much-needed for the exponential growth of our economy. Further, cement roads can simultaneously resolve, without entailing any extra financial cost, a number of national issues and problems the government is grappling to find solutions even after spending thousands of crores of rupees every year. The problems which would be addressed are – (a) conservation of diesel and petrol up to 14 per cent as heavy load carriers consume less fuel on concrete roads than while plying on bitumen roads (b) preservation of precious foreign exchange being spent on the import of bitumen used in the construction of roads (c) utilization of fly ash up to 35 per cent, disposal of which is a nuisance and health hazard (d) conservation of 10 per cent electricity used for the street lights (e) protection of our quarries and mines and above all (f) generation of substantial downstream employment.Coal supply and wagon availability to the cement industry, which have become very acute and uncertain in the recent past, needs to be assured on a consistent and regular basis to the cement industry to facilitate it to meet the projected cement demand of the country.Further, the government needs to initiate certain measures in the form of providing tax incentive to the industry, reduce the overall tax value on the commodity and phase out cross subsidy on electricity, diesel and railway freight in a gradual manner. The government can also consider classifying cement as "Declared Goods" like steel having a uniform VAT rate of 4 per cent throughout the country. The overall taxation value on cement can be brought down to a level of 20-25 per cent of ex-works selling price from the current level.Tax incentive should also be pro-vided by the government for pro-moting blended cement in the larger interest of mineral conservation, waste utilization and bringing down carbon emission.Above all, level playing field needs to be provided to the domestic manufacturers to encourage cement and clinker exports by re-imposing custom duty on cement, which is nil at present. Additionally, Ready Mix Concrete (RMC) needs to be encouraged leading to bulk supply of cement and consequent reduction in pack-aging cost.It is a matter of record that even during the worst phase of economic slow-down, the Indian cement industry has surprised the economy watchers by its pace of sustained growth bucking the general trend of negative or slow growth of economy and the industry sector. It is, therefore, not too optimistic to presume that if the suggested measures are implemented, the cement industry will not only become a leader amongst the various sectors of the industry but will also emerge as a showpiece of model infrastructural growth contributing, in turn, to economic growth.



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Concrete

Fornnax Unveils the World’s Largest NPD and Demo Centre to Accelerate Global Recycling Innovation

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A 12-acre innovation campus enables Fornnax to design, test and validate high-performance recycling solutions at global standards in record time.

Fornnax has launched one of the world’s largest New Product Development (NPD) centres and demo plants, spanning more than 12 acres, marking a major step toward its vision of becoming a global recycling technology leader by 2030. Designed to accelerate real-world innovation, the facility will enable faster product design cycles, large-scale performance validation, and more reliable equipment for high-demand recycling applications.

At the core of the new campus is a live demo plant engineered to support application-specific testing. Fornnax will use this facility to upgrade its entire line of shredders and granulators—enhancing capacity, improving energy efficiency, and reducing downtime. With controlled test environments, machines can be validated for 3,000 to 15,000 hours of operation, ensuring real-world durability and high availability of 18–20 hours per day. This approach gives customers proven performance data before deployment.

“Innovation in product development is the key to becoming a global leader,” said Jignesh Kundariya, Director and CEO of Fornnax. “With this facility, we can design, test and validate new technologies in 6–8 months, compared to 4–5 years in a customer’s plant. Every machine will undergo rigorous Engineering Build (EB) and Manufacturing Build (MB) testing in line with international standards.”

Engineering Excellence Powered by Gate Review Methodology

Fornnax’s NPD framework follows a structured Gate Review Process, ensuring precision and discipline at every step. Projects begin with market research and ideation led by Sales and Marketing, followed by strategic review from the Leadership Team. Detailed engineering is then developed by the Design Team and evaluated by Manufacturing, Service and Safety before approval. A functional prototype is built and tested for 6–8 months, after which the design is optimised for mass production and commercial rollout.

Open-Door Customer Demonstration and Material Testing

The facility features an open-door demonstration model, allowing customers to bring their actual materials and test multiple machines under varied operating conditions. Clients can evaluate performance parameters, compare configurations and make informed purchasing decisions without operational risk.

The centre will also advance research into emerging sectors including E-waste, cables, lithium-ion batteries and niche heterogeneous waste streams. Highly qualified engineering and R&D teams will conduct feasibility studies and performance analysis to develop customised solutions for unfamiliar or challenging materials. This capability reinforces Fornnax’s reputation as a solution-oriented technology provider capable of solving real recycling problems.

Developing Global Recycling Talent

Beyond technology, the facility also houses a comprehensive OEM training centre. It will prepare operators and maintenance technicians for real-world plant conditions. Trainees will gain hands-on experience in assembly, disassembly and grinding operations before deployment at customer sites. Post-training, they will serve as skilled support professionals for Fornnax installations. The company will also deliver corporate training programs for international and domestic clients to enable optimal operation, swift troubleshooting and high-availability performance.

A Roadmap to Capture Global Demand

Fornnax plans to scale its offerings in response to high-growth verticals including Tyre recycling, Municipal Solid Waste (MSW), E-waste, Cable and Aluminium recycling. The company is also preparing solutions for new opportunities such as Auto Shredder Residue (ASR) and Lithium-Ion Battery recovery. With research, training, validation and customer engagement housed under one roof, Fornnax is laying the foundation for the next generation of recycling technologies.

“Our goal is to empower customers with clarity and confidence before they invest,” added Kundariya. “This facility allows them to test their own materials, compare equipment and see real performance. It’s not just about selling machines—it’s about building trust through transparency and delivering solutions that work.”

With this milestone, Fornnax reinforces its long-term commitment to enabling industries worldwide with proven, future-ready recycling solutions rooted in innovation, engineering discipline and customer collaboration.

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Concrete

Balancing Rapid Economic Growth and Climate Action

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Dr Yogendra Kanitkar, VP R&D, and Dr Shirish Kumar Sharma, Assistant Manager R&D, Pi Green Innovations, look at India’s cement industry as it stands at the crossroads of infrastructure expansion and urgent decarbonisation.

The cement industry plays an indispensable role in India’s infrastructure development and economic growth. As the world’s second-largest cement producer after China, India accounts for more than 8 per cent of global cement production, with an output of around 418 million tonnes in 2023–24. It contributes roughly 11 per cent to the input costs of the construction sector, sustains over one million direct jobs, and generates an estimated 20,000 additional downstream jobs for every million tonnes produced. This scale makes cement a critical backbone of the nation’s development. Yet, this vitality comes with a steep environmental price, as cement production contributes nearly 7 per cent of India’s total carbon dioxide (CO2) emissions.
On a global scale, the sector accounts for 8 per cent of anthropogenic CO2 emissions, a figure that underscores the urgency of balancing rapid growth with climate responsibility. A unique challenge lies in the dual nature of cement-related emissions: about 60 per cent stem from calcination of limestone in kilns, while the remaining 40 per cent arise from the combustion of fossil fuels to generate the extreme heat of 1,450°C required for clinker production (TERI 2023; GCCA).
This dilemma is compounded by India’s relatively low per capita consumption of cement at about 300kg per year, compared to the global average of 540kg. The data reveals substantial growth potential as India continues to urbanise and industrialise, yet this projected rise in consumption will inevitably add to greenhouse gas emissions unless urgent measures are taken. The sector is also uniquely constrained by being a high-volume, low-margin business with high capital intensity, leaving limited room to absorb additional costs for decarbonisation technologies.
India has nonetheless made notable progress in improving the carbon efficiency of its cement industry. Between 1996 and 2010, the sector reduced its emissions intensity from 1.12 tonnes of CO2 per ton of cement to 0.719 tonnes—making it one of the most energy-efficient globally. Today, Indian cement plants reach thermal efficiency levels of around 725 kcal/kg of clinker and electrical consumption near 75 kWh per tonne of cement, broadly in line with best global practice (World Cement 2025). However, absolute emissions continue to rise with increasing demand, with the sector emitting around 177 MtCO2 in 2023, about 6 per cent of India’s total fossil fuel and industrial emissions. Without decisive interventions, projections suggest that cement manufacturing emissions in India could rise by 250–500 per cent by mid-century, depending on demand growth (Statista; CEEW).
Recognising this threat, the Government of India has brought the sector under compliance obligations of the Carbon Credit Trading Scheme (CCTS). Cement is one of the designated obligated entities, tasked with meeting aggressive reduction targets over the next two financial years, effectively binding companies to measurable progress toward decarbonisation and creating compliance-driven demand for carbon reduction and trading credits (NITI 2025).
The industry has responded by deploying incremental decarbonisation measures focused on energy efficiency, alternative fuels, and material substitutions. Process optimisation using AI-driven controls and waste heat recovery systems has made many plants among the most efficient worldwide, typically reducing fuel use by 3–8 per cent and cutting emissions by up to 9 per cent. Trials are exploring kiln firing with greener fuels such as hydrogen and natural gas. Limited blends of hydrogen up to 20 per cent are technically feasible, though economics remain unfavourable at present.
Efforts to electrify kilns are gaining international attention. For instance, proprietary technologies have demonstrated the potential of electrified kilns that can reach 1,700°C using renewable electricity, a transformative technology still at the pilot stage. Meanwhile, given that cement manufacturing is also a highly power-intensive industry, several firms are shifting electric grinding operations to renewable energy.
Material substitution represents another key decarbonisation pathway. Blended cements using industrial by-products like fly ash and ground granulated blast furnace slag (GGBS) can significantly reduce the clinker factor, which currently constitutes about 65 per cent in India. GGBS can replace up to 85 per cent of clinker in specific cement grades, though its future availability may fall as steel plants decarbonise and reduce slag generation. Fly ash from coal-fired power stations remains widely used as a low-carbon substitute, but its supply too will shrink as India expands renewable power. Alternative fuels—ranging from biomass to solid waste—further allow reductions in fossil energy dependency, abating up to 24 per cent of emissions according to pilot projects (TERI; CEEW).
Beyond these, Carbon Capture, Utilisation, and Storage (CCUS) technologies are emerging as a critical lever for achieving deep emission cuts, particularly since process emissions are chemically unavoidable. Post-combustion amine scrubbing using solvents like monoethanolamine (MEA) remains the most mature option, with capture efficiencies between 90–99 per cent demonstrated at pilot scale. However, drawbacks include energy penalties that require 15–30 per cent of plant output for solvent regeneration, as well as costs for retrofitting and long-term corrosion management (Heidelberg Materials 2025). Oxyfuel combustion has been tested internationally, producing concentrated CO2-laden flue gas, though the high cost of pure oxygen production impedes deployment in India.
Calcium looping offers another promising pathway, where calcium oxide sorbents absorb CO2 and can be regenerated, but challenges of sorbent degradation and high calcination energy requirements remain barriers (DNV 2024). Experimental approaches like membrane separation and mineral carbonation are advancing in India, with startups piloting systems to mineralise flue gas streams at captive power plants. Besides point-source capture, innovations such as CO2 curing of concrete blocks already show promise, enhancing strength and reducing lifecycle emissions.
Despite progress, several systemic obstacles hinder the mass deployment of CCUS in India’s cement industry. Technology readiness remains a fundamental issue: apart from MEA-based capture, most technologies are not commercially mature in high-volume cement plants. Furthermore, CCUS is costly. Studies by CEEW estimate that achieving net-zero cement in India would require around US$ 334 billion in capital investments and US$ 3 billion annually in operating costs by 2050, potentially raising cement prices between 19–107 per cent. This is particularly problematic for an industry where companies frequently operate at capacity utilisations of only 65–70 per cent and remain locked in fierce price competition (SOIC; CEEW).
Building out transport and storage infrastructure compounds the difficulty, since many cement plants lie far from suitable geological CO2 storage sites. Moreover, retrofitting capture plants onto operational cement production lines adds technical integration struggles, as capture systems must function reliably under the high-particulate and high-temperature environment of cement kilns.
Overcoming these hurdles requires a multi-pronged approach rooted in policy, finance, and global cooperation. Policy support is vital to bridge the cost gap through instruments like production-linked incentives, preferential green cement procurement, tax credits, and carbon pricing mechanisms. Strategic planning to develop shared CO2 transport and storage infrastructure, ideally in industrial clusters, would significantly lower costs and risks. International coordination can also accelerate adoption.
The Global Cement and Concrete Association’s net-zero roadmap provides a collaborative template, while North–South technology transfer offers developing countries access to proven technologies. Financing mechanisms such as blended finance, green bonds tailored for cement decarbonisation and multilateral risk guarantees will reduce capital barriers.
An integrated value-chain approach will be critical. Coordinated development of industrial clusters allows multiple emitters—cement, steel, and chemicals—to share common CO2 infrastructure, enabling economies of scale and lowering unit capture costs. Public–private partnerships can further pool resources to build this ecosystem. Ultimately, decarbonisation is neither optional nor niche for Indian cement. It is an imperative driven by India’s growth trajectory, environmental sustainability commitments, and changing global markets where carbon intensity will define trade competitiveness.
With compliance obligations already mandated under CCTS, the cement industry must accelerate decarbonisation rapidly over the next two years to meet binding reduction targets. The challenge is to balance industrial development with ambitious climate goals, securing both economic resilience and ecological sustainability. The pathway forward depends on decisive governmental support, cross-sectoral innovation, global solidarity, and forward-looking corporate action. The industry’s future lies in reframing decarbonisation not as a burden but as an investment in competitiveness, climate alignment and social responsibility.

References

  • Infomerics, “Indian Cement Industry Outlook 2024,” Nov 2024.
  • TERI & GCCA India, “Decarbonisation Roadmap for the Indian Cement Industry,” 2023.
  • UN Press Release, GA/EF/3516, “Global Resource Efficiency and Cement.”
  • World Cement, “India in Focus: Energy Efficiency Gains,” 2025.
  • Statista, “CO2 Emissions from Cement Manufacturing 2023.”
  • Heidelberg Materials, Press Release, June 18, 2025.
  • CaptureMap, “Cement Carbon Capture Technologies,” 2024.
  • DNV, “Emerging Carbon Capture Techniques in Cement Plants,” 2024.
  • LEILAC Project, News Releases, 2024–25.
  • PMC (NCBI), “Membrane-Based CO2 Capture in Cement Plants,” 2024.
  • Nature, “Carbon Capture Utilization in Cement and Concrete,” 2024.
  • ACS Industrial Engineering & Chemistry Research, “CCUS Integration in Cement Plants,” 2024.
  • CEEW, “How Can India Decarbonise for a Net-Zero Cement Industry?” (2025).
  • SOIC, “India’s Cement Industry Growth Story,” 2025.
  • MDPI, “Processes: Challenges for CCUS Deployment in Cement,” 2024.
  • NITI Aayog, “CCUS in Indian Cement Sector: Policy Gaps & Way Forward,” 2025.

ABOUT THE AUTHOR:
Dr Yogendra Kanitkar, Vice President R&D, Pi Green Innovations, drives sustainable change through advanced CCUS technologies and its pioneering NetZero Machine, delivering real decarbonisation solutions for hard-to-abate sectors.

Dr Shirish Kumar Sharma, Assitant Manager R&D, Pi Green Innovations, specialises in carbon capture, clean energy, and sustainable technologies to advance impactful CO2 reduction solutions.

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Concrete

Carbon Capture Systems

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Nathan Ashcroft, Director, Strategic Growth, Business Development, and Low Carbon Solutions – Stantec, explores the challenges and strategic considerations for cement industry as it strides towards Net Zero goals.

The cement industry does not need a reminder that it is among the most carbon-intensive sectors in the world. Roughly 7–8 per cent of global carbon dioxide (CO2) emissions are tied to cement production. And unlike many other heavy industries, a large share of these emissions come not from fuel but from the process itself: the calcination of limestone. Efficiency gains, fuel switching, and renewable energy integration can reduce part of the footprint. But they cannot eliminate process emissions.
This is why carbon capture and storage (CCS) has become central to every serious discussion
about cement’s pathway to Net Zero. The industry already understands and accepts this challenge.
The debate is no longer whether CCS will be required—it is about how fast, affordable, and seamlessly it can be integrated into facilities that were never designed for it.

In many ways, CCS represents the ‘last mile’of cement decarbonisation. Once the sector achieves effective capture at scale, the most difficult part of its emissions profile will have been addressed. But getting there requires navigating a complex mix of technical, operational, financial and regulatory considerations.

A unique challenge for cement
Cement plants are built for durability and efficiency, not for future retrofits. Most were not designed with spare land for absorbers, ducting or compression units. Nor with the energy integration needs of capture systems in mind. Retrofitting CCS into these existing layouts presents a series of non-trivial challenges.
Reliability also weighs heavily in the discussion. Cement production runs continuously, and any disruption has significant economic consequences. A CCS retrofit typically requires tie-ins to stacks and gas flows that can only be completed during planned shutdowns. Even once operational, the capture system must demonstrate high availability. Otherwise, producers may face the dual cost of capture downtime and exposure to carbon taxes or penalties, depending on jurisdiction.
Despite these hurdles, cement may actually be better positioned than some other sectors. Flue gas from cement kilns typically has higher CO2 concentrations than gas-fired power plants, which improves capture efficiency. Plants also generate significant waste heat, which can be harnessed to offset the energy requirements of capture units. These advantages give the industry reason to be optimistic, provided integration strategies are carefully planned.

From acceptance to implementation
The cement sector has already acknowledged the inevitability of CCS. The next step is to turn acceptance into a roadmap for action. This involves a shift from general alignment around ‘the need’ toward project-level decisions about technology, layout, partnerships and financing.
The critical questions are no longer about chemistry or capture efficiency. They are about the following:

  • Space and footprint: Where can capture units be located? And how can ducting be routed in crowded plants?
  • Energy balance: How can capture loads be integrated without eroding plant efficiency?
  • Downtime and risk: How will retrofits be staged to avoid prolonged shutdowns?
  • Financing and incentives: How will capital-intensive projects be funded in a sector with
    tight margins?
  • Policy certainty: Will governments provide the clarity and support needed for long-term investment
  • Technology advancement: What are the latest developments?
  • All of these considerations are now shaping the global CCS conversation in cement.

Economics: The central barrier
No discussion of CCS in the cement industry is complete without addressing cost. Capture systems are capital-intensive, with absorbers, regenerators, compressors, and associated balance-of-plant representing a significant investment. Operational costs are dominated by energy consumption, which adds further pressure in competitive markets.
For many producers, the economics may seem prohibitive. But the financial landscape is changing rapidly. Carbon pricing is becoming more widespread and will surely only increase in the future. This makes ‘doing nothing’ an increasingly expensive option. Government incentives—ranging from investment tax credits in North America to direct funding in Europe—are accelerating project viability. Some producers are exploring CO2 utilisation, whether in building materials, synthetic fuels, or industrial applications, as a way to offset costs. This is an area we will see significantly more work in the future.
Perhaps most importantly, the cost of CCS itself is coming down. Advances in novel technologies, solvents, modular system design, and integration strategies are reducing both capital requirements
and operating expenditures. What was once prohibitively expensive is now moving into the range of strategic possibility.
The regulatory and social dimension
CCS is not just a technical or financial challenge. It is also a regulatory and social one. Permitting requirements for capture units, pipelines, and storage sites are complex and vary by jurisdiction. Long-term monitoring obligations also add additional layers of responsibility.
Public trust also matters. Communities near storage sites or pipelines must be confident in the safety and environmental integrity of the system. The cement industry has the advantage of being widely recognised as a provider of essential infrastructure. If producers take a proactive role in transparent engagement and communication, they can help build public acceptance for CCS
more broadly.

Why now is different
The cement industry has seen waves of technology enthusiasm before. Some have matured, while others have faded. What makes CCS different today? The convergence of three forces:
1. Policy pressure: Net Zero commitments and tightening regulations are making CCS less of an option and more of an imperative.
2. Technology maturity: First-generation projects in power and chemicals have provided valuable lessons, reducing risks for new entrants.
3. Cost trajectory: Capture units are becoming smaller, smarter, and more affordable, while infrastructure investment is beginning to scale.
This convergence means CCS is shifting from concept to execution. Globally, projects are moving from pilot to commercial scale, and cement is poised to be among the beneficiaries of this momentum.

A global perspective
Our teams at Stantec recently completed a global scan of CCS technologies, and the findings are encouraging. Across solvents, membranes, and
hybrid systems, innovation pipelines are robust. Modular systems with reduced footprints are
emerging, specifically designed to make retrofits more practical.
Equally important, CCS hubs—where multiple emitters can share transport and storage infrastructure—are beginning to take shape in key regions. These hubs reduce costs, de-risk storage, and provide cement producers with practical pathways to integration.

The path forward
The cement industry has already accepted the challenge of carbon capture. What remains is charting a clear path to implementation. The barriers—space, cost, downtime, policy—are real. But they are not insurmountable. With costs trending downward, technology footprints shrinking, and policy support expanding, CCS is no longer a distant aspiration.
For cement producers, the decision is increasingly about timing and positioning. Those who move early can potentially secure advantages in incentives, stakeholder confidence, and long-term competitiveness. Those who delay may face higher costs and tighter compliance pressures.
Ultimately, the message is clear: CCS is coming to cement. The question is not if but how soon. And once it is integrated, the industry’s biggest challenge—process emissions—will finally have a solution.

ABOUT THE AUTHOR:
Nathan Ashcroft, Director, Strategic Growth, Business Development, and Low Carbon Solutions – Stantec, holds expertise in project management, strategy, energy transition, and extensive international leadership experience.

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