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CCU for Decarbonising the Cement Industry

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Dr BN Mohapatra, Director General, National Council for Cement and Building Materials (NCCBM), expounds on the importance of carbon capture, utilisation and storage for achieving net zero goals for the industry.

Dr BN Mohapatra, Director General, National Council for Cement and Building Materials (NCCBM), expounds on the importance of carbon capture, utilisation and storage for achieving net zero goals for the industry.

Honourable Prime Minister of India Shri Narendra Modi has made the pledge to cut the CO2 emissions in the COP 26 summit at Glasgow in November. The new climate action targets ‘Panchamrit’ by India included:

  • a net zero target for India by the year 2070;
  • installing non-fossil fuel electricity capacity of 500 GW by 2030;
  • sourcing 50 per cent of energy requirement from renewables by 2030;
  • reducing 1 billion tonnes of projected emissions from now till 2030; and
  • achieving carbon intensity reduction of 45 per cent over 2005 levels by 2030.


Globally, the cement sector generates about 7 per cent of the total anthropogenic emissions. The sources of CO2 emissions in cement manufacture are categorised as direct sources, which includes calcination (55 per cent to 60 per cent) and combustion (25 per cent to 30 per cent) and indirect sources of CO2 including electricity (8 per cent to 10 per cent) and transportation (2 per cent to 5 per cent).
In hard-to-abate sectors like cement, it is technologically very difficult to reduce the process related CO2 emissions. The Indian cement industry has been working on the issue of its GHG emissions and has brought down the CO2 emission factor from 1.12 t of CO2/t of cement in 1996 to 0.670 t of CO2/t of cement in 2017. In October 2021, Global Cement and Concrete Association (GCCA) published a Cement and Concrete Roadmap 2050 for the
Net Zero Concrete. The leading cement and concrete companies in India including major cement companies in India like UltraTech Cement Ltd., Holcim Group, Shree Cement Ltd., Dalmia Cement (B) Ltd.,
JK Cement Ltd., JSW Cement, Orient Cement Ltd. have accepted the goal to achieve Net Zero Concrete by 2050 and committed to fully contribute to building the sustainable world of tomorrow. Dalmia Cement (Bharat) Ltd., the fourth largest cement company in India has committed to become Carbon Negative by 2040 and working on its roadmap to use
100 per cent biomass and capturing the biogenic CO2 emissions.
The journey towards decarbonisation of Indian cement industry started in 2012 with preparation of a Low Carbon Technology Roadmap specifically for the Indian cement industry, when International Energy Agency (IEA) and Cement Sustainability Initiative (CSI), in collaboration with the Confederation of Indian Industry (CII) and the National Council for Cement and Building Materials (NCB) prepared this document.
The identified levers in the low carbon technology roadmap of Indian cement industry are:
i. Substitution of Clinker,
ii. Alternate Fuel and Raw Materials,
iii. Improving Energy Efficiency,
iv. Installation of Waste Heat Recovery and
v. Newer technologies like Renewable Energy, Novel Cements, Carbon Capture and Storage/Utilisation.
The first four levers have already been implemented by the Indian cement industry and the impact has already been reflected in the reduction of CO2 emission factor from cement industry. The specific direct CO2 emissions of major cement companies in the year 2020-21 is given in table below:

(Source: Sustainability Reports and Annual Reports)

One of the important challenges for decarbonisation of the cement industry worldwide is to reduce the process emissions arising out of calcination of limestone. Therefore, to achieve the target of Net Zero cement industry, implementation of Carbon Capture and Utilisation is required. Carbon Capture and Utilisation (CCU) or Carbon Capture and Storage (CCS) is the process of separating Carbon Dioxide (CO2) from flue gases of point sources such as stacks of cement plants, power plants etc., transporting it to a storage site or utilisation site, and depositing it or utilising it, thereby not letting CO2 enter the atmosphere for mitigation of global warming.
The first stage of CCU is CO2 capture i.e., separating CO2 from the flue gases coming out of the stacks of cement kilns. A typical composition of flue gas from stacks of cement plants contains 18 per cent CO2, 10 per cent O2, 71.9 per cent N2 and 0.1 per cent Other gases. In the carbon capture process, the CO2 is separated as concentrated CO2 for storage and transportation and remaining CO2 free flue gases are emitted to the atmosphere as shown in figure 2.
Carbon capture techniques can be classified in three categories:

  1. Post-combustion processes
  2. Pre-combustion process
  3. Oxy-fuel combustion process

Post-combustion carbon capture process involves extracting CO2 from the flue gas after combustion of fossil fuels. Out of the three capture techniques, post-combustion is well established and commercially available. The advantage of this technique is that it does not interfere with the plant process. The various methods of post-combustion carbon capture are:

  • Chemical absorption: Monoethanolamine (MEA)
  • Calcium looping
  • Chilled ammonia process
  • Solvent Based absorption

Oxy-fuel combustion involves supply of complete Oxygen to replace Air. Burner, calciner and clinker cooler have been successfully tested under oxyfuel conditions, and the technology is being brought forward. Also, thyssenkrupp has demonstrated a pilot scale oxyfuel retrofit and greenfield cement kilns.
Pre-combustion involves converting coal to hydrogen through gasification. This hydrogen is derived from fossil fuel and called Grey Hydrogen. A cement kiln at the British Ribblesdale plant, UK, by HeidelbergCement successfully tested use of Grey Hydrogen in its main burner.
Several institutes and start-ups worldwide are working to find cost effective energy efficient ways to capture CO2 from flue gases. The status of carbon capture technologies all over the world is shown in table 2.

After capturing, the CO2 is transported to the utilisation/storage site. There are several utilisation pathways of captured CO2 like mineralisation, production of chemicals like urea, methanol, methane etc., as refrigerant, as inerting agent, for fire suppression, for enhanced fuel recovery, in production of plastics, for biological conversion to algae, for use in food products like beverages etc. as shown in Fig 3.


Dalmia Cement (B) Ltd. in association with Asian Development Bank has carried out a Pre-feasibility study to assess the techno-economic pre-feasibility of the CCUS options in its Ariyalur cement plant. The study found urea and mineralization as the top-ranking options for CO2 utilisation but dropped Mineral carbonation as the CO2 derived cement will require longer time for technical approval. Urea production was selected as the best option for utilisation. Similar type of study at industry level is required to assess the potential utilisation when the carbon capture will be implemented in all cement plants. Other than utilisation of captured CO2, the long-term storage of CO2 in deep subsurface rock formations is the option which will not be financially viable.

LeadIT initiative
For promoting low-carbon transition especially in the hard-to-abate sectors like Iron & Steel, Aluminium, Cement and Concrete, petrochemicals, fertilisers, bricks, heavy-duty transport, etc. through active participation of private sector companies, Government of Sweden and India launched an initiative ‘Leadership for Industry Transition (LeadIT)’ at the UN Climate Action Summit in New York in 2019. Stockholm Environment Institute hosts the Secretariat of LeadIT. Under the LeadIT initiative, preparation of the sectoral roadmap for the cement and steel sector in India has been undertaken.


In May 2022, DG-NCCBM as part of Indian Delegation to Sweden visited Heidelberg Cement Ltd.’s Slite Cement Plant at Gotland, Sweden and SSAB Steel Plant and the pilot plant of the HYBRIT Project at Lulea, Sweden Under LeadIT initiative as shown in Fig 4 and 5.
The Slite cement plant is Sweden’s largest cement factory with a production capacity of 2.5 million tonnes per year and is currently the second-largest source of greenhouse gas emissions in Sweden, responsible for three per cent of all its CO2 emissions. HeidelbergCement is upgrading its Slite Cement plant to develop it into World’s first ‘Carbon-Neutral Cement Plant’, and it will be having facility to capture up to 1.8 million tonnes of CO2 annually, which corresponds to the plant’s 100 per cent CO2 emissions and store the same in an underground long storage facility. The pre-feasibility study for a Carbon Capture and Storage (CCS) facility at the Slite Cement Plant has been completed recently and got promising results, which were presented during the visit. In the pre-feasibility study, amine capture was found to be the most suitable technology for Post-combustion Carbon Capture. It was informed that the implementation of the carbon capture facility will require some modification to the plant. As capturing CO2 is an energy intensive process, the power demand of the Slite Cement Plant is also expected to rise significantly. The pre-feasibility study has identified Geological sequestration, which involves the process of storing carbon dioxide by injecting the captured CO2 from a cement plant into deep subsurface rock formations for long-term storage. To store the captured CO2 from the Slite cement plant, the carbon dioxide will be buried under the North Sea in cavities created by the extraction of fossil fuels.
HYBRIT is a partnership between LKAB (Europe’s largest iron ore producer), Vattenfall (one of Europe’s largest energy companies) and SSAB (steel producer) formed to develop hydrogen-based production of fossil free sponge iron production, in order to reduce the negative climate effects of steel production. Using HYBRIT technology, SSAB aims to replace coking coal, traditionally needed for ore-based steelmaking, with fossil-free electricity and hydrogen, resulting in the world›s first fossil-free steelmaking technology. The pilot plant using fossil-free hydrogen at the SSAB site in Luleå, Sweden started in 2020. This facility demonstrates the feasibility and scalability of the new technology replacing coal by hydrogen in the steel production process and aims to produce 1.3 million tonnes of steel by the year 2026.
The slite cement carbon capture plant is targeted to start full scale operation by 2030 to capture the plant’s 100 per cent CO2 emissions. The plant officials informed the visiting delegation that a 400,000t/yr CCS system is being built by Norcem, a subsidiary of Heidelberg Cement, at its Brevik cement plant in Norway. The CSS facility at Brevik is presently under construction and will start operating by 2024. The Slite cement plant will have four times the capacity of that at the Brevik plant. Additionally, the use of bio-based fuels in the cement production at Slite will be increased.
For implementation of CCU in the Indian cement industry, such demonstration projects need to be implemented in a few plants, which will help in creating expertise in the cement industry to run CCU facilities and will also encourage other cement companies to move in this direction. There is a need to assess the impact due to implementation of CCU in all the integrated plants in terms of increase in cost of product due to high capture cost, avenues for utilisation of captured CO2, integration in existing plants and funding required for implementation at plant level.

About the author:
Dr BN Mohapatra is the Director General of National Council for Cement and Building Materials (NCCBM).
He is a PhD in Cement Mineral Chemistry and the chairman of the Cement Sectoral Committee of the Bureau of Energy Efficiency (BEE). He is also a member of various technical committees of Bureau of Indian Standards (BIS), member of Research Committee of CSIR-National Physical Laboratory (NPL) and member of Research Advisory Committee of DISIR and AKS University.

Concrete

Dalmia Bharat to Buy Jaypee Cement Assets for Rs 28.5 bn

Purchase under Adani led resolution plan valued at Rs 28.5 bn

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Dalmia Bharat will acquire the cement assets of JAL (Jaypee Associates Limited) for Rs 28.5 bn under an Adani led resolution plan, according to company sources. The transaction involves the purchase of manufacturing facilities and associated assets that form part of JAL’s cement operations, and it is framed as a strategic acquisition within a larger insolvency resolution overseen by an Adani group consortium. The move is presented as a consolidation play in a fragmented domestic cement market.

The company indicated that the acquisition will strengthen Dalmia Bharat’s geographic footprint and supply chain, enhancing its ability to serve regional demand and optimise logistics. The assets are expected to complement the purchaser’s existing capacity and provide additional clinker and grinding resources, allowing for potential efficiency gains through integration. Executives have described the deal as aligned with a broader strategy of targeted inorganic growth.

Financially, the headline consideration converts to roughly Rs 28.5 bn, reflecting the resolution price agreed under the plan. The purchase price and related terms are structured as part of the approved resolution framework and are subject to completion formalities. The parties expect customary regulatory clearances and creditor or adjudicatory confirmations to be completed before closing, with standard conditions precedent governing the transfer of assets.

Market observers noted that the deal illustrates ongoing consolidation in the sector, where larger groups are acquiring stressed or non core assets as part of resolution processes. Such transactions are seen as a mechanism to expedite recovery of value while enabling active players to expand capacity without developing greenfield projects. The combination of strategic fit and available asset bases is likely to influence competitive dynamics in specific regional markets.

Upon completion, Dalmia Bharat will integrate the acquired operations into its existing reporting and operational framework, with the intention of preserving operational continuity. Stakeholders will monitor execution on integration, regulatory approvals and the realisation of anticipated synergies as the parties move towards finalising the transfer of assets.

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Concrete

Dalmia Acquires Five Point Two MnTPA Cement Assets in Central Region

Acquisition adds capacity, power and rail access

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Dalmia Cement (Bharat) Limited (DCBL) executed a business transfer agreement on 21 May 2026 to acquire a cement undertaking from Jaiprakash Associates Limited (JAL) and Adani Infra (India) Limited. The assets include plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh with five point two million tonnes per annum (mn tpa) cement capacity and three point three mn tpa clinker capacity, plus 99 megawatt (MW) thermal power and railway sidings. The transaction carries an enterprise value of Rs 28.5 billion (bn).

DCBL, a wholly owned subsidiary of Dalmia Bharat Limited (DBL), will see cement capacity rise to 54.7 mn tpa on completion. Ongoing expansions at Belgaum, Pune and Kadapa are expected to raise capacity to 66.7 mn tpa by the second to third quarter of fiscal 2028. The company said the transaction would be consummated within two weeks.

The deal follows a framework signed in December 2022 to settle long running disputes with JAL, including a long term clinker supply arrangement. Completion was delayed when JAL entered insolvency and the earlier sale did not finalise. Following approval of a resolution plan under the Insolvency and Bankruptcy Code, DCBL executed a fresh business transfer agreement to resolve pending legal and arbitral matters.

Company statements described the acquisition as strategic, accelerating access to central markets compared with a greenfield route and offering scope for expansion through debottlenecking and brownfield investment. Proximity to the company’s captive mines and established vendor relationships should support faster ramp up. The assets should augment EBITDA delivery and enhance returns by enabling entry into newer markets with relatively better prices.

Senior executives said the addition aligned with a long term plan to build a pan India presence and would provide a head start in central markets. They noted that familiarity with the plants under earlier tolling arrangements offers operational insight and strengthens channel relationships, supporting quicker market entry. Management expressed confidence that the assets’ expansion potential would generate value for stakeholders.

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Concrete

Ramco Cements Reports FY26 Revenue Growth And Higher Profit

Net debt reduced as exceptional items boost FY26 earnings

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Ramco Cements reported standalone audited results for FY26 with net revenue of Rs 90,560 million (mn) and profit after tax of Rs 6,940 mn. EBIDTA rose to Rs 14,820 mn and blended EBIDTA per tonne was Rs 788 on a two per cent volume rise to 18.81 million (mn) tonne (t). Cement revenue increased by five per cent and construction chemicals revenue rose by 66 per cent.

Raw material cost per tonne rose to Rs 1,023 from Rs 956 mainly due to a mineral bearing land tax of Rs 160 per t in Tamil Nadu, adding about Rs 86 per t. Power and fuel cost per tonne fell to Rs 1,098 from Rs 1,123 with petcoke mix down to 47 per cent and green power up to 40 per cent.

Profit before tax after exceptional items was Rs 8,790 mn. Net exceptional items were Rs 5,530 mn, including Rs 5,740 mn from sale of surplus land and Rs 200 mn of past service cost. The company monetised Rs 10,980 mn from non core asset sales over the past two years and recorded capex of Rs 9,970 mn, with guidance of Rs 8,000 mn for FY27.

Net debt fell by Rs 8,170 mn to Rs 36,640 mn at 31 March 2026 and cost of debt eased to 7.29 per cent, reducing net debt to EBIDTA to 2.47 times. Management indicated the full impact of higher fuel costs is expected from Q2 FY27, while packing and diesel cost increases will be visible in Q1 FY27. The board has proposed a dividend of Rs two point five zero per equity share and the company flagged risks from elevated fuel and logistics costs, commodity volatility and competitive pricing.

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