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The impact is clear: 40 per cent lower CO2 missions from cement

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The maths is simple: replace 30 per cent of clinker with calcined clay for up to a 40 per cent reduction in CO2 emissions. It’s smart, it’s efficient, and it’s something almost every cement manufacturer could do right now. Steven Miller, Global Process Line Manager at FLSmidth, shares insights on the naturally occurring mineral that is set to accelerate the green transition of cement.

With 7 per cent to 8 per cent of all global carbon emissions coming from cement production, the pressure is rising. Environmental regulations grow progressively more demanding. Financiers shy away from emissions-intensive investments. And around the world, citizens, governments, and a broad range of other organisations are calling for action on climate change. For the cement industry, it’s the perfect storm – and it calls for innovation and ingenuity. Right now, there is no substitution at scale for concrete. But we all know we can’t continue our current practices. To meet our sustainability commitments in line with the Paris Agreement, we need to make some radical shifts. This challenge presents a new opportunity for a centuries-old material combined with 21ˢᵗ century technology.

Step one: Cut the clinker factor
The science of the cement manufacturing process is well known. Reducing energy consumption and switching from fossil fuels to carbon neutral alternative fuels have the capability to cut CO2 emissions by up to ~35 per cent. But the majority of the CO2 coming from the manufacturing process occurs during limestone calcination. In the future, we hope these emissions will be captured before entering the atmosphere, but right now that technology is still some way off widescale availability. Instead, we have a more accessible solution: Cut the clinker factor – i.e. the quantity of clinker used in the cement mix.

For many years, cement manufacturers around the world have been doing just that. Fly ash from coal fired power plants, blast furnace slag from iron and steel manufacturing, and a range of other natural and manmade pozzolans have helped cement manufacturers achieve clinker factors as low as 0.4 for some cement types.

However, these low clinker factors are not possible across the board. They are highly dependent on local availability. And as coal-fired power is phased out and iron and steel producers work to reduce their environmental impact, the availability of these industry by-products will fall away altogether. What we don’t want is to see the clinker factor increasing again, along with emissions.

Fortunately, we have an alternative. A widely available, naturally-occurring mineral can be activated into a supplementary cementitious material that can replace 30 per cent of clinker and eliminate up to 40 per cent of CO2 emissions.

In some cases, an even higher percentage of clinker replacement is possible. Best of all, the technology to incorporate it into your process already exists. It has a low ROI, and it’s actually cheaper to manufacture than clinker. What are we talking about?

Calcined Clay – the future of green cement
Clay is found almost everywhere in the world, making it a natural solution in regions where a lack of limestone availability drives up the cost of cement. With the right treatment, it makes an excellent replacement for clinker. You may even be able to use some of the equipment you already have on site, further reducing your investment.

The process is simple. We use the best available technologies from the cement and mining industries to optimise clinker substitution while maintaining cement quality.

This begins with our established ET dryer crusher, which is especially designed for materials like clay with up to 40 per cent moisture content. Using waste gases from the preheater, feed material is dried and crushed in one operation, achieving both the required fineness and a free moisture content of just 1 per cent by the time the clay enters the preheater.

From the dryer crusher, the material is fed to the 2-stage preheater/calciner system for calcination. It’s important to note that any fuels you fire in your existing calciner can be used in the clay calciner, including up to 100 per cent waste fuels.

What colour should green cement be?
Perhaps in the future, the natural red colour of calcined clay will be a sign of a green cement. For now, however, our clay calciner includes colour control technology to ensure the final result is traditional cement grey. This will ensure easy adoption by the cement industry’s customers who have had many decades of building grey buildings, bridges and roads – and may need additional time to change their perspective on colour.

The calciner is engineered for consistent clay activation. This ensures you get the uniform product quality that enables you to substitute more clinker in your cement product. After the activated clay has been collected in the bottom stage of the calciner, it is sent to a reducing zone where the colour control process takes place. From there the clay is introduced to a series of cooling cyclones to attain a final product temperature in the range of 100 – 120˚C. Cooling is achieved using fresh air, which is then heated by the cooling clay and recovered for use as combustion air in the calciner. This is significantly more efficient than water cooling and ensures the lowest possible fuel consumption.

Elimi nate f ossil f uels by electrif ying clay calcination To further decarbonise the cement industry, FLSmidth and a series of leading industry experts have formed a new partnership called ECoClayTM.

To reduce CO2 emissions from cement production by up to 50 per cent, the ECoClay partners will develop and commercialise the technology needed to replace fossil fuels in the calcination of clay by fully electrifying the process.

Led by FLSmidth, the global ECoClay partners include US-based industrial heating expert Rondo Energy, cement producers VICAT from France and Colombian Cementos Argos, and the Technical University of Denmark.

Based on the shared research and tests on hightemperature electric heat generation, storage solutions and renewable grid integration, the ECoClay partnership will build a pilot plant at FLSmidth’s R&D Center in Denmark. The consortium will seek to demonstrate how the ECoClay process is superior to the conventional combustion processes, has a smaller physical footprint on site and significantly lower emissions of air pollutants.

According to the project plan, the ECoClay partners expect to be able to commence construction of the first full-scale electric clay calcination installation by the end of 2025.

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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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.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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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.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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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.

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