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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

Jefferies’ Optimism Fuels Cement Stock Rally

The industry is aiming price hikes of Rs 10-15 per bag in December.

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Cement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.

JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.

“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”

According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.

The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
(ET)

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Concrete

Steel Ministry Proposes 25% Safeguard Duty on Steel Imports

The duty aims to counter the impact of rising low-cost steel imports.

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The Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.

Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.

The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.

Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.

The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.

(ET)

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Concrete

India Imposes Anti-Dumping Duty on Solar Panel Aluminium Frames

Move boosts domestic aluminium industry, curbs low-cost imports

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The Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.

The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.

Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.

India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.

The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.

With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.

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