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Ignore at Your Own Peril

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ICR looks at the impact of various methods such as use of alternative fuel and raw materials, tackling the emissions issue and encouraging carbon capture in a bid to make green cement and progress towards Net Zero goals.

The analytical journey is long past its prime when it comes to diagnosing the emission problem pertaining to cement and concrete. There is no denying the fact that the problem is too big.
If concrete was a country, it would be the biggest production centre as all other commodities put together will not even come close to the 30 billion tonnes of concrete that the world produces every year. If cement was a country, it would be the third highest emitter of CO2 in the world. But the efforts have been to find an approach that would force corporations to either limit and progressively reduce over time the impact on the environment through a slew of measures directed at reducing the carbon footprint of cement.
The chart attached shows the distribution of the CO2 emission based on the processing steps for making cement from limestone.

United efforts
The last five years has seen acceleration in the efforts towards finding significant pathways for reducing carbon footprint in cement production around the world. The progress on substantial reduction has been positive with concentration in the following areas:

  • Focus on Calcination Emission: Reducing clinkering by adding alternative materials that can replace clinker
  • Focus on Fossil Fuel Emission: Efficiency improvement in a number of areas that reduce the use of fossil fuels per unit of cement output, together with the use of alternative fuel.
    Under the first category, we see a rise in the use of fly ash from the coal-based power plants that replace clinker during grinding and the percentage increase in the last five years on this count would be around 2 per cent (31 per cent moving to 33 per cent with the balance being clinker). Alternatively, the use of blast furnace slag has seen a rise of 5 per cent (50 per cent moving to 55 per cent with the balance being clinker). Both of these actions have taken the total CO2 emission to 860 kg per tonne for some of the best operating plants of the world.
    The challenges for the future in this regard is that fly ash will remain a constantly depleting resource as all fresh investments into coal fired power plants are scrutinised and it is most likely that the current generation of fly ash will not move up in the coming years. This poses some challenges for the future as the emission pathways that consider use of fly ash as a potential lever for replacing clinker would have to find new pathways as a countermeasure. The use of blast furnace slag also has the same problem brewing at large as steel production is slated for overall sustainability improvement measures, which ordains reduced output of blast furnace slag as a definitive measure.

Tackling the emissions issue
This leaves the focus on alternative use of other non-fossil fuels for producing cement, where the actual progress is almost entirely hinged on renewable sources producing electricity that would be used for clinkerisation as well as for grinding. While the latter has progressed well, the former is still at a stage where a handful of cement units have signed up for the alternative technology in kilns.
Most of the technologies so far have progressed little towards solving the real issue of emission stemming from the clinkerisation process itself, as the molecular structure change from limestone to clinker involves generation of CO2 quite inevitably. The solutions therefore looked at ways of capturing carbon from the emission process, somewhat similar to the photo-synthesis process in plants as Professor Dr Aldo Seinfeld from ETH Zürich has shown. However, the progress is still at a laboratory scale and to find an economic solution will still take some time. For example, most cement kilns today produce close to 2.5 million tonnes of clinker and the sizing is only moving up, which means the amount of CO2 generation from these kilns per year would be close to 2 million tonnes. To get CO2 capturing systems to scale up to these levels would need many years.

Putting carbon to good use
The question is how can we help to scale up the capacity to sequester and store carbon from the emissions from cement kilns? The problem needs to be approached scientifically to make the process economical, which is where the current focus is. But more than the laboratories where this progress is well grounded, we need the cement corporations to set aside funds for investments that need to be made for all future kilns that have the provisions for carbon capture.
The next question is to look at how the stored carbon can be put to use in production of concrete? This requires more than the usual scientific research, as the supply chain of concrete making must factor in ways and means of finding pathways for using stored carbon in the concrete making. The Economist reports that companies like CarbonCure, a Canadian firm, are doing this. They have fitted equipment, which injects CO2 into ready-mixed concrete to more than 400 plants around the world. Its system has been used to construct buildings that include a new campus in Arlington, Virginia, for Amazon, an online retailer (and also a shareholder in CarbonCure), and an assembly plant for electric vehicles, for General Motors in Spring Hill, Tennessee.

Piloting new technologies
One of the other areas of focus has been to find an alternative route to clinkerisation that is based on electricity.
Calix, based in Sydney, Australia, is working on an electrically powered system, which heats the limestone indirectly, from the outside of the kiln rather than the inside. That enables pure CO2 to be captured without having to clean up combustion gases from fuel burnt inside the kiln—so, if the electricity itself came from green sources, the resulting cement would be completely green.
A pilot plant using this technology has run successfully as part of a European Union research project on a site in Belgium operated by Heidelberg Cement, a German firm that is one of the world’s biggest cement-makers. A larger demonstration plant is due to open in 2023, in Hanover, to help scale up the technology.
Almost all of this would need sacrifice from many stakeholders, as the cost of making cement and concrete will rise as investments have to be made in new technology. Bill Gates’ book, ‘How to Avoid a Climate Disaster,’ projected an increase of the cement making cost from the current $125 per tonne to a range of $219 to $300 if the CO2 emissions have to be taken care of for achieving Net Zero. However, the price of cement is already much above $125 per tonne even without factoring any of the carbon capture and sequestration measures, so the real rise could be much more.
A community of stakeholders, starting with the corporation making cement, the community near the cement kilns, the customers, the suppliers and the government, all have a role to play to find a solution how this increase in costs would have to be borne and distributed. Carbon taxes have always been the time-tested path to decarbonisation. Stringent use of taxes as a potent tool has seen better progress, especially in Europe, where some serious progress has happened. Recycling of cement from the demolition waste is one great example.
The best example of coordination and collaboration is captured in the initiatives of the world’s largest kiln near Wuhan, where one would witness how the city municipality came forward to proactively recycle the entire city municipal waste into the kiln of the cement unit situated on the Yangtze river. The waste is transported by barges and through a pipeline taken directly into the cement kiln. Such collaboration could replace the hard stand of putting penalties, which after all could be regressive at times.

-Procyon Mukherjee

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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