Concrete

Carbon Capture: A Reality Check

Published

1 year ago

April 10, 2023

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What are the recent developments in carbon capture technology, and the challenges faced in making it more accessible to cement companies, discusses Dr Jose Casaban, Co-CEO, MOF Technologies.

Metal-Organic Frameworks (MOFs) are a new class of engineerable, super porous, sponge like solid materials that enable more efficient gas separation, gas storage and delivery solutions. MOFs are made up of two components: metal ions and organic ligands (also known as ‘linkers’) that are interconnected, creating repeatable porous networks that allow entrapment of specific gas molecules through physical adsorption. The choice of metal and linker allows us to engineer porous structures with unprecedented capacity and selectivity for a targeted gas molecule like CO2.
MOF Technologies has harnessed the unique properties of MOFs such as high CO2 capacity, selectivity and heatless regeneration and has engineered an ultra-energy efficient carbon capture system that uses pressure instead of heat to release the captured CO2 from the MOF filter. In principle, the carbon capture system combines mature vacuum swing adsorption technology with the novel highly performing MOF adsorbent material. By this way, CO2 can be separated from flue gas streams with an energy input of less than 1 GJ per tonne of CO2, cutting the energy requirements for carbon capture by up to 80 per cent versus the state-of-the-art amine scrubbing solutions. This represents a step change in carbon capture innovation that will bring down the costs for carbon removal and enable the mass adoption of CCS in hard-to-abate industries like cement.

Trial by Fuel
This year, the Nuada Carbon Capture technology was shortlisted by the Global Cement and Concrete Association’s (GCCA) Innovandi Open Challenge as one of the most promising technologies to decarbonise this hard-to-abate sector. This global programme aimed at fostering innovation within the cement industry by partnering GCCA member companies with innovative start-ups from around the world to ‘accelerate and commercialise the development of promising decarbonisation technologies.’
MOF Technologies was chosen as one of six start-ups, from more than 100 global entrants to the Open Challenge, to form formal consortiums with cement industry leaders for piloting innovative decarbonisation technologies. The company is now partnered
with Buzzi Unicem, Cementir Holdings and HeidelbergCement who will have the opportunity
to have a first glance of the innovative carbon capture technology and test the pilot plant for their flue gas. Their pilot plant is currently under construction, expected to be in operation during summer of 2023 to showcase the in-field performance of the Nuada Carbon Capture technology. This is an opportunity to prove the performance of this technology in its scaled-up form at the production sites of these three key GCCA members and enhance the confidence of the sector that Nuada will play a pivotal role for cement decarbonisation.

Technology and Productivity
Nuada Carbon Capture is an End-of-Pipe (EoP) solution that provides the opportunity to treat emissions directly from the stack without any modifications to the existing cement manufacturing processes.
This technology uses modular units that are prefabricated and containerised, so they can be easily installed on site with minimum disruption to the manufacturing operations. The modular nature of the technology provides flexibility for its end users to treat different scales of emissions and gradually add to the carbon capture capacity on their sites, in alignment with the evolution of carbon emission allowance schemes. Exploiting the high-capacity of MOF materials, Nuada carbon capture systems are designed to be very compact, occupying a minimum footprint to provide the comfort of retrofitting these systems, especially in cement production sites with minimum free space.
This is beneficial since most existing cement manufacturing sites were not built with a provision for adding a carbon capture process. Another advantage of this technology is the requirement of electricity as the only energy source to operate these carbon capture plants. Competitive technologies like amine-based solutions require copious amounts of steam, which is not always available on site and their integration in a cement plant is far more challenging. Overall, Nuada is a plug-and-play, easy to install and flexible carbon capture solution that can be easily retrofitted on existing cement plants. While these features will facilitate the adoption of this technology within the cement industry, the core advantage of this carbon capture system is its ultra-high energy efficiency, which slashes the cost associated with carbon capture and enables cement manufacturers to reduce their emissions, with the lowest possible impact on the cost of cement production.

Challenges Ahead
The development of this groundbreaking technology did not happen overnight. Instead, MOF Technologies have spent the last decade on developing knowhow around the development, production, shaping, optimisation, and testing of MOF materials combined with continuously increasing engineering capabilities for the design and prototyping of MOF-based systems. The company has gained a global reputation as the MOF material experts by collaborating with several blue-chip companies for the co-development of MOF-based solutions.
These collaborations have enriched the engineering knowhow for developing MOF-based adsorption systems whilst being part of EU-funded carbon capture projects with better insights about the carbon capture technology requirements. It was the inherited knowledge from the challenges and the lessons learnt across their R&D pedigree that has enriched their large IP portfolio, enabled technology breakthroughs, and now minimises the obstacles of commercial deployment for the innovative carbon capture technology. MOF Technologies is using the industrially scaled and proven Vacuum Pressure Swing Adsorption (VPSA) technology, so there are existing supply chains that can be immediately utilised to construct larger scale carbon capture systems. In addition, the company has already scaled up the production of the MOF filter and is now producing enough MOF material in-house to support commercial scales of carbon capture systems. While the road to commercial deployment of the Nuada carbon capture technology is relatively open, the real challenge ahead is to gain operating hours. By demonstrating the high in-field performance of Nuada and growing the industry’s confidence, they can move towards larger scale systems.

Curbing Emissions
The company sees cleantech as a necessity for curbing future emissions. Among the options to tackle emissions from heavy polluting industries, carbon capture is widely regarded as a key lever for achieving net zero targets. For example, carbon capture is accounting for a total of 36 per cent emissions reductions by 2050 in the cement industry according to the GCCA’s net zero roadmap. However, the IPCC is quoted as saying, “Currently, global rates of carbon capture and storage deployment are far below those in modelled pathways limiting global warming to 1.5°C or 2°C.” This is because the technology’s rollout has been hindered by cost, energy-efficiency and other challenges. This generates extra pressure for innovation, cross-collaboration between technology developers and emitters, and investment in carbon capture projects. Innovative climate technologies like the Nuada carbon capture system, which addresses the main caveats for the mass adoption of CCUS, will prove transformational, not only in achieving Net Zero targets but in improving the quality of life for the people of the world.

ABOUT THE AUTHOR:
Dr Jose Casaban is a globally recognised CCUS expert with rich experience in sorbent materials and gas separation processes. He is leading the rapid expansion of MOF Technologies that will accelerate the decarbonisation of the cement industry.

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Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

Published

3 days ago

September 13, 2024

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India’s cement sector is set for further consolidation in the near-to-medium term, according to a recent report. With increasing competition, rising input costs, and the need for economies of scale, companies are expected to explore mergers and acquisitions (M&A) to strengthen their market positions. As the industry faces various challenges, including high energy costs and fluctuating demand, consolidation is viewed as a strategic move to drive growth and sustainability.

Key Points:
Market Consolidation: The Indian cement industry has already witnessed significant consolidation over the past few years, with several large firms acquiring smaller players to enhance their market share. The trend is expected to continue, driven by the need to optimize operations, cut costs, and gain better pricing power. Consolidation helps companies to expand their geographic reach and strengthen their portfolios.

Rising Costs and Challenges: One of the primary drivers of consolidation is the rising cost of inputs, particularly energy and raw materials. With costs of coal and petroleum coke (key energy sources for cement production) soaring, companies are looking for ways to maintain profitability. Smaller and medium-sized players, in particular, find it challenging to cope with these rising costs, making them more likely targets for acquisition by larger companies.

Economies of Scale: Larger cement companies benefit from economies of scale, which help them absorb the impact of rising input costs more effectively. Consolidation allows firms to streamline production processes, reduce operational inefficiencies, and invest in advanced technologies that improve productivity. These efficiencies become critical in maintaining competitiveness in an increasingly challenging environment.

M&A Activity: The report highlights the potential for more mergers and acquisitions in the cement sector, particularly among mid-sized and regional players. The Indian cement market, which is highly fragmented, presents numerous opportunities for larger companies to acquire smaller firms and gain a foothold in new markets. M&A activity is expected to accelerate as firms seek growth through strategic alliances and acquisitions.

Regional Focus: Consolidation efforts are likely to be regionally focused, with companies looking to expand their presence in specific geographic areas where demand for cement is strong. Infrastructure development, government projects, and urbanization are driving demand in various parts of the country, making regional expansions an attractive proposition for firms looking to grow.

Impact on Competition: While consolidation may lead to a more concentrated market, it could also intensify competition among the remaining players. Larger firms with more resources and market reach could dominate pricing strategies and influence market dynamics. Smaller firms may either merge or struggle to compete, leading to a reshaping of the competitive landscape.

Demand Outlook: The near-term outlook for the cement industry remains uncertain, with demand being influenced by factors such as construction activity, infrastructure projects, and government initiatives. The report notes that while urban demand is expected to remain stable, rural demand continues to face challenges due to slow construction activities in those areas. However, the long-term outlook remains positive, driven by ongoing infrastructure developments and real estate projects.

Sustainability Focus: Companies are also focusing on sustainability and environmental concerns. Consolidation can provide larger companies with the resources to invest in green technologies and reduce their carbon footprint. This focus on sustainability is becoming increasingly important, with both government regulations and market preferences shifting toward greener production practices.

Conclusion:
The Indian cement industry is poised for further consolidation in the coming years, driven by rising costs, competitive pressures, and the need for economies of scale. M&A activity is likely to accelerate, with larger firms targeting smaller and regional players to strengthen their market presence. While consolidation offers opportunities for growth and efficiency, it could also reshape the competitive landscape and influence pricing dynamics in the sector.

Concrete

Cement Companies May Roll Back Hike

Cement firms reconsider September price increase.

Published

3 days ago

September 13, 2024

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Cement companies in India might be forced to reverse the price hikes implemented in September due to weakened demand and pressure from competitive market conditions, according to a report by Nuvama Institutional Equities. The recent price increase, which was expected to improve margins, may not hold as demand falls short of expectations.

Key Points:
Price Hike in September: Cement firms across India increased prices in September, aiming to improve their margins amidst rising input costs. This was seen as a strategic move to stabilize earnings as they were grappling with inflationary pressures on raw materials like coal and pet coke.

Weak Demand and Pressure: However, demand has not surged as expected. In some regions, particularly rural areas, construction activity remains low, which has contributed to the tepid demand for cement. The combination of high prices and low demand may make it difficult for companies to maintain the elevated price levels.

Competitive Market Forces: Cement manufacturers are also under pressure from competitors. Smaller players may keep prices lower to attract buyers, forcing larger companies to consider rolling back the September hikes. The competitive dynamics in regions like South India, where smaller firms are prevalent, are likely to impact larger companies’ pricing strategies.

Nuvama Report Insights: Nuvama Institutional Equities has highlighted that the September price hikes may not be sustainable given current market conditions. According to the report, the demand-supply imbalance and weak construction activities across many states could push cement companies to reconsider their pricing strategies.

Impact on Margins: If companies are compelled to roll back the price hikes, it could hurt their profit margins in the near term. Cement firms had hoped to recover some of their input costs through the price increases, but the competitive landscape and slow demand recovery could negate these gains.

Regional Variations: Price rollback might not be uniform across the country. In regions where infrastructure development is picking up pace, cement prices may hold. Urban areas with ongoing real estate projects and government infrastructure initiatives could see a sustained demand, making price hikes more viable.

Future Outlook: The outlook for the cement sector will largely depend on the pace of recovery in construction activity, particularly in the housing and infrastructure sectors. Any significant recovery in rural demand, which is currently subdued, could also influence whether the price hikes will remain or be rolled back.

Strategic Adjustments: Cement firms may need to adopt a cautious approach in the near term, balancing between maintaining market share and protecting margins. Price adjustments in response to market conditions could become more frequent as companies try to adapt to the fluctuating demand.

Conclusion:
The September price hikes by cement companies may face reversal due to weak demand, competitive pressures, and market dynamics. Nuvama’s report signals that while the increase was aimed at margin recovery, it may not be sustainable, particularly in regions with low demand. The future of cement pricing will depend on construction sector recovery and regional market conditions.

Concrete

Bridge Collapse Spurs Focus on Stainless Steel

Climate change prompts stainless steel push.

Published

3 days ago

September 13, 2024

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The Ministry of Road Transport and Highways (MoRTH) is turning its attention to the use of stainless steel in bridge construction to counteract corrosion, an increasing issue linked to climate change. With recent bridge collapses highlighting the vulnerability of existing infrastructure to corrosion and extreme weather events, the ministry is promoting the adoption of durable materials like stainless steel to ensure the longevity and safety of India’s critical transport infrastructure.

Key Points:

Bridge Collapse and Climate Change: Recent incidents of bridge collapses across the country have raised alarm over the durability of current construction materials, with corrosion cited as a leading cause. Climate change, leading to harsher weather patterns and increased moisture levels, has accelerated the deterioration of key infrastructure. This has prompted MoRTH to consider long-term solutions to combat these challenges.

Corrosion: A Growing Concern: Corrosion of structural materials has become a serious issue, particularly in coastal and high-moisture regions. The Ministry has identified the need for a more resilient approach, emphasizing the use of stainless steel, known for its resistance to corrosion. This shift is seen as crucial in ensuring the longevity of India’s bridges and reducing maintenance costs over time.

Stainless Steel for Bridge Construction: Stainless steel, while more expensive initially, offers long-term savings due to its durability and resistance to environmental factors like moisture and salt. The Ministry is advocating for the material’s use in future bridge projects, particularly in areas prone to corrosion. Stainless steel is seen as a solution that can withstand the pressures of both natural elements and increasing traffic loads.

Government’s Proactive Steps: The government, through MoRTH, has started consulting with experts in the field of metallurgy and civil engineering to explore the expanded use of stainless steel. They are considering updates to construction standards and specifications to incorporate this material in new and rehabilitated infrastructure projects.

Economic Considerations: Although the initial investment in stainless steel may be higher than conventional materials, the reduced need for repairs and replacements makes it a cost-effective option in the long run. This approach also aligns with the government’s push for sustainable infrastructure that can withstand the test of time and climate change effects.

Future of Indian Infrastructure: With the push for stronger, more durable infrastructure, the Ministry’s move to adopt stainless steel for bridge construction marks a shift towards building climate-resilient structures. The use of this material is expected to not only enhance the safety and longevity of bridges but also reduce the financial burden on the government for constant repairs.

Industry Perspective: The stainless steel industry sees this shift as an opportunity to expand its market, particularly in the infrastructure sector. Stakeholders are engaging with the government to demonstrate the benefits of stainless steel, advocating for its increased use not just in bridges but across various infrastructure projects.

Conclusion: In response to the growing threat of climate change and its impact on infrastructure, the Ministry of Road Transport and Highways is prioritizing the use of stainless steel in bridge construction to combat corrosion and ensure the long-term durability of critical transport structures.