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Revisiting the Race to Net Zero

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The supply of carbon capture pathways holds the key for the cement industry’s success of being carbon neutral.

The Inter-Governmental Panel on Climate Change (IPCC) in their seminal thesis, ‘Working Group III Report’, which is a lengthy document, has summarised in three parts the currency of climate change actions so far and the visible pathways to the future. Firstly, it has been pointed out that the supply of renewable energy solutions from photo-voltaic cells, on-shore and offshore wind, solar and battery for electric cars have grown, hastening the drop in their unit cost. But the rise of emissions and the stock of emissions have grown unabated, other than the year 2020, when due to Covid, there was a brief respite. In 2022, the rise in emissions is back again. Thirdly, the global pathways to the emission reduction do not portray a possibility of less than a 1.5oC rise in the end of 2100, in fact the pathways are showing a rise above 2oC, simply from the fact that the stock of emissions out there do not seem to be coming down despite all the pledges and actions.
The Report summarises, “Projected cumulative future CO2 emissions over the lifetime of existing and currently planned fossil fuel infrastructure without additional abatement exceed the total cumulative net CO2 emissions in pathways that limit warming to 1.5°C (>50 per cent) with no or limited overshoot.”
Industry by industry, including the most emitting ones, has the same story line, unless outputs come down, the per unit emission after a brief sojourn, stopped to become lower.
Take cement, the per tonne emission that came down from the level of 1t to 900kg (global average) has now stagnated, with some faring better, but the overall industry is still at the alarming level and if the world continues to produce 4 billion tonne per annum of cement, with volumes moving up as new cities and urbanisation progresses, the stock of emissions do not have an easy and quick solution to be regressed.

Calculating the emissions
The major industrial pollutant emanating from the manufacture of cement is the evolution of CO2, an estimated 40 per cent of the total CO2 generated from the industry, emanates from fossil fuel burning which is used in the production process, and another 50 per cent, from the raw materials utilised and the manufacturing process, and 10 per cent from indirect emissions by transportation of finished goods. For every 1kg of cement produced, 0.9kg of CO2 is evolved, and this equates to the evolution of about 3.6 billion tonnes of CO2 produced annually, and these figures don’t take into account the emissions from the quarrying and transportation of raw materials and the transport and delivery of produced cement.

The stages where these emissions occur are:

  • The combustion of fossil fuel in the clinkering process to heat the raw material of limestone (CaCO3), produces CO2 at temperatures exceeding 1450°C.
  • The calcination process (raw material conversion) in cement production process, also generates a significant amount of CO2.
  • Indirect emission from transportation and delivery of raw materials and finished goods (electrification of vehicles shifts some of these pathways to more centralised use of renewable energy).
  • CO2 generated from fossil fuel based electricity generation means, for running plants and equipment. It should however be observed that the amount of CO2 evolved in the manufacturing process also depends on:
  1. The type of manufacturing process adopted i.e. type of kiln used.
  2. The type of fuel used (pet coke, natural gas, coal etc.).
  3. The clinker/cement ratio i.e. percentage of additives.
    CO2 emissions per kg of cement produced with several inputs used in the process reveals a picture as follows:
    It is clear that the opportunities that existed within the mix of inputs and outputs (clearly Portland cement, known as OPC in India is a no-go going by the emission pathways), the industry has exercised the best mix to get to the current improvement in emissions, which still hovers around 900 kg per tonne of cement produced and some leaders are at 850 kg, while the laggards are at 940 kg.
    This in itself would mean that lower clinker factor (slag cement, composite cement, PPC) will score over Portland cement and usage of slag (proximity to steel plants), fly ash (proximity to power plants), wet fly ash (proximity to fly ash ponds) and usage of wet fly ash and conditioned ash with freight incentives in rail have increased, thus taking us closer to the 850kg of CO2 emissions per ton of Cement output for some of the leaders in the fray. The efforts on efficiency improvement also seem to have stagnated after reaching a threshold.
    The journey from here needs to look at carbon capture and sequestration as also observed by the IPCC Report. IPCC models require carbon removals to ramp up from 0.1 gigatons of CO2 today to an average of around 6 gigatons by 2050. Carbon removals work alongside emissions reduction solutions; they are not a substitute. But at the current pace, the pipeline of carbon removal projects will fall short of the volume of carbon removals the IPPC says is required in 2025 by 80 per cent.
    What does this mean for the cement industry? What are the carbon capture and sequestration costs? How would these costs come down with development of new technology?
    If one goes by the best available technology, removing CO2 from the atmosphere and recycling it to produce synthetic fuel forever is where some of the progress is happening and the current costs of $600/T is projected to move to $100/T. But this may not be economically feasible for cement, where the current average cost of producing cement itself is $75/T.

Looking ahead
The long term focus remains to be in the direction of carbon capture and storage for cement that would mean that concrete serves as the holistic Carbon sink in more ways than one. This would mean progressing on technologies that enable capture and utilisation of CO2 directly at cement manufacturing facilities; carbon mineralisation methods in which CO2 is captured and injected into fresh concrete where it becomes permanently embedded and actually helps improve its strength; and carbon storage in which CO2 is captured and stored securely in long-term geologic reservoirs (and not used for enhanced oil recovery).
Much of this would need clear investments and transparency is of paramount importance as every progress will attract more investment and only then can the costs come down.
Going by the current gaps in the progress for Net Zero, the investment gap for the Carbon Capture and Storage and Utilisation is where all the focus must shift. The days of glorifying the achievements in mostly exploiting the low hanging fruits is over.

-Procyon Mukherjee

Concrete

Nuvoco Vistas Reports Record Q2 EBITDA, Expands Capacity to 35 MTPA

Cement Major Nuvoco Posts Rs 3.71 bn EBITDA in Q2 FY26

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Nuvoco Vistas Corp. Ltd., one of India’s leading building materials companies, has reported its highest-ever second-quarter consolidated EBITDA of Rs 3.71 billion for Q2 FY26, reflecting an 8% year-on-year revenue growth to Rs 24.58 billion. Cement sales volume stood at 4.3 MMT during the quarter, driven by robust demand and a rising share of premium products, which reached an all-time high of 44%.

The company continued its deleveraging journey, reducing like-to-like net debt by Rs 10.09 billion year-on-year to Rs 34.92 billion. Commenting on the performance, Jayakumar Krishnaswamy, Managing Director, said, “Despite macro headwinds, disciplined execution and focus on premiumisation helped us achieve record performance. We remain confident in our structural growth trajectory.”

Nuvoco’s capacity expansion plans remain on track, with refurbishment of the Vadraj Cement facility progressing towards operationalisation by Q3 FY27. In addition, the company’s 4 MTPA phased expansion in eastern India, expected between December 2025 and March 2027, will raise its total cement capacity to 35 MTPA by FY27.

Reinforcing its sustainability credentials, Nuvoco continues to lead the sector with one of the lowest carbon emission intensities at 453.8 kg CO? per tonne of cementitious material.

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Concrete

Jindal Stainless to Invest $150 Mn in Odisha Metal Recovery Plant

New Jajpur facility to double metal recovery capacity and cut emissions

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Jindal Stainless Limited has announced an investment of $150 million to build and operate a new wet milling plant in Jajpur, Odisha, aimed at doubling its capacity to recover metal from industrial waste. The project is being developed in partnership with Harsco Environmental under a 15-year agreement.

The facility will enable the recovery of valuable metals from slag and other waste materials, significantly improving resource efficiency and reducing environmental impact. The initiative aligns with Jindal Stainless’s sustainability roadmap, which focuses on circular economy practices and low-carbon operations.

In financial year 2025, the company reduced its carbon footprint by about 14 per cent through key decarbonisation initiatives, including commissioning India’s first green hydrogen plant for stainless steel production and setting up the country’s largest captive solar energy plant within a single industrial campus in Odisha.

Shares of Jindal Stainless rose 1.8 per cent to Rs 789.4 per share following the announcement, extending a 5 per cent gain over the past month.

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Vedanta gets CCI Approval for Rs 17,000 MnJaiprakash buyout

Acquisition marks Vedanta’s expansion into cement, real estate, and infra

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Vedanta Limited has received approval from the Competition Commission of India (CCI) to acquire Jaiprakash Associates Limited (JAL) for approximately Rs 17,000 million under the Insolvency and Bankruptcy Code (IBC) process. The move marks Vedanta’s strategic expansion beyond its core mining and metals portfolio into cement, real estate, and infrastructure sectors.

Once the flagship of the Jaypee Group, JAL has faced severe financial distress with creditors’ claims exceeding Rs 59,000 million. Vedanta emerged as the preferred bidder in a competitive auction, outbidding the Adani Group with an overall offer of Rs 17,000 million, equivalent to Rs 12,505 million in net present value terms. The payment structure involves an upfront settlement of around Rs 3,800 million, followed by annual instalments of Rs 2,500–3,000 million over five years.

The National Asset Reconstruction Company Limited (NARCL), which acquired the group’s stressed loans from a State Bank of India-led consortium, now leads the creditor committee. Lenders are expected to take a haircut of around 71 per cent based on Vedanta’s offer. Despite approvals for other bidders, Vedanta’s proposal stood out as the most viable resolution plan, paving the way for the company’s diversification into new business verticals.

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