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The cement industry is expected to benefit from the country’s huge potential for development in the infrastructure and construction sectors, says NITIN MADKAIKAR.

India is the second largest producer of cement globally and the industry has been a vital part of its economic development, providing employment opportunities to more than a million people, directly or indirectly. Since its deregulation in 1982, the Indian cement industry has grown at a tremendous pace, attracting huge investments, both from domestic as well as foreign investors. The sector is expected to largely benefit from the country’s huge potential for development in the infrastructure and construction sectors. Some of the recent major initiatives like development of 98 Smart Cities will provide a major boost to cement demand.

Industry Structure
The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 75 per cent of the total cement production of the country. A total of 188 large cement plants together account for 97 per cent of the total installed capacity in the country, with 365 small plants accounting for the rest. Of these large cement plants, 77 are located in Andhra Pradesh, Rajasthan and Tamil Nadu.

On the back of growing demand, due to increased construction and infrastructural activi-ties, the cement industry has attracted huge inve-stments and developments in recent years.

Construction Market
India’s construction business stands over at Rs 30,000 billion, and has been slowly expanding over the years. With value addition of over Rs 10,500 billion, its share in total GDP rose from 5.6 per cent in 1990-91 to over 7.7 per cent in 2016-17. This has given a major advantage to the cement industry, which is poised to expand with increased attention of the government promoting large infrastructure projects.

However, the growth of construction activity has slowed down significantly in recent years. The last highest yearly growth of 10.8 per cent was recorded in 2011-12, but thereafter it has not even touched 5 per cent until now. In 2016-17, it is estimated to have increased 3.1 per cent, slightly faster than the 2.8 per cent clocked in 2015-16. Going ahead, it appears that the growth will remain under 5 per cent, thus truncating demand for construction materials, including cement.

However, the growth will largely depend on the government’s initiative in developing infrastructure and the process of boosting the housing sector.

In construction, cement is the second-largest component, although its value accounts for only 12 per cent of total input cost of construction, whereas steel takes away nearly half the cost of inputs. Over Rs 2,000 billion worth of cement is consumed to construct a variety of structures. Within this premise, dwelling construction account for 30 per cent of all construction activity, while another 40 per cent is accounted for by non-residential buildings construction.

Roads and bridges, major infrastructure components, account for just 6 per cent of constru-ction. What remains is other structures and land improvement activity. Thus, housing and commer-cial construction is the major economic activity and it is largely dependent on cement and steel.

Cement production volume in 2016-17 has seen a year-on-year decline for the first time in 15 years, as the demonetisation exercise reduced demand. The industry, with an estimated capacity of around 420 million tonnes, saw production fall 0.7 per cent during the year. However, with no authentic data available on cement consumption or demand in the public domain, estimating actual production figures is a difficult exercise.

Cement demand has a close linkage with eco-nomic growth and government spends. Demand for housing is driven by income growth while infrastructure development largely depends on government expenditure, both state and Central.

In the recent past, demand for cement has remained poor as economic growth slowed down to less than 6 per cent between 2012-13 and 2016-17 from an average of 9 per cent between 2005-06 and 2010-11. During that period, cement demand had expanded by 8.5 per cent per annum, which has come down to around 4 per vcent per annum over the past five years.

Considering that the economy may grow at 8.50-9 per cent over the next five years, the statistical relation between cement demand and economic growth predicts that demand for the commodity may grow at the rate of 4 per cent per annum over the next five years.

The housing sector will be biggest demand driver for cement, which now accounts for about 45 per cent of total cement consumption. The other major consumers will include infrastructure (17 per cent), commercial construction (11 per cent) and the rest will be made up by industrial construction. Rural housing (40 per cent) and urban housing (25 per cent) will be the major demand drivers for the cement industry.

The industry is bullish over demand on account of the government’s focus on infrastructure and housing. The Union Budget for 2017-18 has raised the allocation for roads from Rs 5,798 billion in 2016-17 to Rs 6,490 billion in 2017-18, with a stress on laying 2,000 km of coastal roads.

According to estimates, cement comprises 30 per cent of the cost of laying a road and the budgetary allocation may translate into a Rs 1,947-billion business opportunity for the industry. For the transportation sector alone, Rs24,139 billion has been allotted for 2017-18.

Although demand for cement will not be significant, increase in volumes and prices will be pertinent for a cement industry as volume will satisfy increasing demand and prices will rise to help manage rising costs.

To boost cement demand, the government has been approving various investment schemes (see Box-1) as fast as possible.

A Macro View
ACC believes that the prospects for economic growth have become buoyant with the rural economy benefiting from a good monsoon after two successive rain-deficient years. However, the Goods and Services Tax and the demonetisation scheme which aimed to usher in greater tran-sparency in financial transactions and a transition towards a cashless economy, over the short term, has squeezed liquidity and consumption across the economy, notably in the construction sector.

The outlook for 2017 is bright, as liquidity in the economy has moved towards normalisation, with expectations for early revival and growth in overall consumption across several sectors including construction and building materials. The Union Budget with thrust on the rural sector, infrastructure development and housing will boost the overall investment climate. If 2017-18 experiences a normal monsoon, GDP growth is likely to rebound during the year. Better liquidity and improved tax collections will enhance the government’s ability to spend on infrastructure and other development projects, leading to faster growth.

ACC foresees that the industry will continue to be dogged by the challenge of excess capacity leading to intense competition. If the government is successful in increasing its investment expen-diture on large infrastructure and other develo-pment projects as announced in the Budget, it will further energise construction activity. Any cut in interest rates on housing loans will boost investment in the housing sector. Together, these developments will provide the much-needed fillip to demand for cement and concrete in the coming year.

According to Gujarat Ambuja Cement, despite several challenges, the economy has immense potential, which will power economic growth. The securitisation of real estate – Real Estate Inve-stment Trusts and Infrastructure Investment Trusts – is likely to foster greater economic activity, along with a more efficient and transparent market.

For demand growth, the government has provided incentives for rural development and also allowed 100 per cent FDI in the construction of development and industrial parks. Overall, cement demand growth is expected to rise in 2017-18 on account of higher government spending on various initiatives as announced in the Budget along with incentives for affordable housing by providing it with ‘Infrastructure Status’. This will boost demand for cement by a positive multiplier.

Sensitive Outlook
Housing demand is not expected to see a significant turnaround in the short term. However, much would depend on higher-than-expected demand or significant progress by the government on schemes such as ‘Housing for All’ or Smart Cities. If they are well implemented, it could result in good demand for cement in the near future. A below-than expected pick up in construction and infrastructure projects could affect demand for cement and the credit profile of cement companies. This may play a negative role for cement demand.

The cement industry has now become intensely competitive, with the foray of new entrants and existing players expanding inorganically. This could potentially impact market share and margins.

With the new Mines and Minerals (Development & Regulation) Amendment Act 2015, the earlier policy of deemed renewal has been discontinued and all the mining leases will be allotted through an auction. This has made it difficult for cement companies to retain or acquire existing leases. Forest and wildlife clearances are now a prerequisite and land acquisition is becoming more challenging and expensive.

Concrete Push
Here are a few initiatives taken by the government in the recent past to boost cement demand:

  • Assigning ‘infrastructure status’ to affor-dable housing projects and facilitating higher investments and better credit facilities, with an aim to provide ‘Housing for All’ by 2022. The cement industry stands to gain from the grant of infra-structure status to affordable housing;
  • Interest rate rebate of 3 per cent for Rs 12 lakh housing loans will boost demand for real estate in Tier-II and Tier-III cities;
  • The Finance Minister has announced that the National Housing Bank will refinance individual housing loans of around Rs 2,000 billion ($3 billion) in 2017-18. The minister has also set a target of completing 10 million houses by 2019;
  • Increased allocation to rural low-cost housing under the Pradhan Mantri Awaas Yojana- Gramin scheme to Rs 2,300 billion ($3.45 billion) from Rs 1,600 billion ($2.4 billion) in FY17. This will directly drive a 2 per cent increase in cement demand;
  • With the Parliament clearing the amendments to the Mines and Minerals Development and Regulation (MMDR) Act, it has enabled companies to transfer captive mine leases, similar to mines won through auctions. This will lead to more mergers and acquisitions among cement companies;
  • The government’s plans to revive state-run cement factories across India will give a boost to road and realty projects by bringing down construction costs;
  • A 15 per cent increase in capital outlay on infrastructure projects will create cement demand in roads, railway projects, irrigation and port projects;
  • Higher allocation to MNEGRA will boost rural income and have a catalytic effect on rural consumption. This is expected to help the cement industry, as it will lead to increased and sustained levels of cement consumption.

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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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