Clay is a naturally occurring material found almost everywhere around the world with the potential to replace 30 per cent of the energy intensive clinker. But how does the calculations look in terms of fuel- and power consumption. We did the math.
One of the great benefits of calcined clay is that it activates at a much lower temperature than that required to make clinker. With temperatures of 750 to 850˚C instead of 1,400 to 1,500˚C and much lower costs for grinding and handling, you gain significant fuel and power savings – 30 per cent and 40 per cent, respectively – when comparing the operating cost to make 1 tonne of clay versus 1 tonne of clinker. While this is obviously a great result for the environment, it also makes for much lower operating costs, enabling you to achieve a reduced cost per tonne of cement.
Table 1 shows typical values for a direct comparison between traditional OPC (95 per cent clinker and 5 per cent gypsum) and LC3, a cement made of 50 per cent clinker, 15 per cent limestone, 30 per cent activated clay and 5 per cent gypsum. The impact is clear: 40 per cent lower CO2 emissions per tonne of cement. That is without considering the further reductions you could gain if you also switched to more environmentally friendly fuels.
Table 1
You’ll note that Table 1 also references the fact that by halving clinker content, you could double cement production. This would certainly be a driver for cement manufacturers seeking to increase productivity. However, even where extra capacity is not required, the benefits are incredibly valuable. A more efficient, more environmentally friendly process – working smarter, not harder.
Managing the risks of a new investment
With any new technology, there will always be some hesitation. Being an early adopter carries risks as well as benefits. But having dedicated ourselves to MissionZero – equipping the cement industry with the means to achieve net zero emissions by 2030 – we want to give cement manufacturers the confidence that they are investing in solutions that will work for them. That’s why we set up a pilot plant in our test facility in Denmark, specifically dedicated to calcined clay.
Here, we can carry out full chemistry and mineralogical testing of your clay source, as well as a clay reactivity analysis. We can also put your clay through our pilot test system, including crushing/drying, calcining, colour control, strength testing, etc. to show that the clay will meet the strength and colour requirements of a blended cement for ultimate peace of mind before making an investment.
This facility was instrumental in the decision by French cement manufacturer Ciment Vicat to invest in a 525 tpd clay calcination plant, which will be built in France. Citing increasing demand for sustainable cements as one of their main drivers, Ciment Vicat approached us with the project knowing we had the ability to confirm the suitability of their locally available clay source. We tested 5 tonnes of clay and were able to give them the reassurance they needed to proceed with the investment.
“With the results from the pilot studies at FLSmidth’s test facilities, we are confident that this technology will provide a truly environmentally-friendly alternative, enabling us to reduce CO2 emissions by 16 per cent compared to our existing cement products as soon as the site is commissioned in 2023, and perhaps even more than that in the future,” says Renaud Claie, Project Director at Vicat Group. Leadership like this is so important to moving the industry forward. Where one global leader moves, others will follow. We congratulate Ciment Vicat on their initiative and commitment to their sustainability goals.
One decade to make a difference
Calcined clay is a stable, widely available resource that slots in easily to the existing cement manufacturing process. It requires new but familiar technologies. It produces a different but equally high-quality cement product, at a lower cost, using less energy and less fuel. It has the potential to dramatically reduce the cement industry’s environmental impact.
What are we waiting for? FLSmidth is ready to assist with your clay calcination plans and to help answer any questions or concerns you might have. This is our decade to make a difference. We can reduce the pressure on our industry and on our planet by moving the cement industry over to a more environmentally friendly cement product as standard.
Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.
Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.
The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.
Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.
UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.
The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.
As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.
UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.
The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.
In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.
Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.
Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.
He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.
The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.