Concrete

World’s biggest cement producers bet on green alternative

Holcim and CRH announced a $75 million investment.

Published

5 months ago

September 27, 2024

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Two of the world’s biggest cement producers, Holcim AG and CRH PLC, are investing in a startup attempting to decarbonize the cement production process. Cement and concrete are responsible for about 8% of emissions, more than any other industrial sector.

Holcim and CRH announced a $75 million investment into Sublime Systems, including a promise to purchase green cement from the startup’s pilot facilities and to work with Sublime on additional plant sites. (CRH invested through its venture arm.) Somerville, Massachusetts-based Sublime has developed an electrochemical method of cement production that avoids the process of heating up limestone with kilns powered by fossil fuels.

Reducing cement emissions has long been a technological and economic challenge. Cement is essential to making concrete, and to roads, buildings and other critical infrastructure. But the material’s production generates carbon dioxide emissions from burning fuel (often coal) to heat kilns, from the decomposition of limestone and from quarrying, grinding and transforming the materials.

In tests at its 250-ton-per-year pilot plant, Sublime has been able to demonstrate a 90% reduction in CO2 emissions compared to traditional concrete, according to Leah Ellis, co-founder and chief executive officer. The company is developing a commercial plant in Holyoke, Massachusetts, that would have a capacity of 30,000 tons per year and is set to be completed in 2026. The Energy Department’s Office of Clean Energy Demonstrations will fund up to 50% of that plant’s construction.

Ellis said Sublime’s goal is to provide its technology to larger cement companies with existing infrastructure and supply chains, which would either build new cement plants with the tech or retrofit old ones.

While Sublime’s process generates far fewer emissions, there are many hurdles the company and others like it need to overcome before they can commercialize successfully. One major limitation is the significant capital costs associated with retrofitting cement plants — often large, custom operations — or building new ones.

Another is demand: Low-carbon cement remains more expensive, on average, than traditional cement, making it a hard sell for a construction industry that already operates on razor-thin margins. New regulations, including New York’s mandate for state agencies to buy clean concrete, could help boost demand, said Ash Lauth, a senior campaign strategist for the global cement initiative at Industrious Labs, a US-based nonprofit focused on industrial decarbonization. But the industry still has a long way to go: Last week, Industrious Labs published an analysis that gave Holcim a “D” grade on its sustainability efforts.

“While we’re encouraged that Holcim is investing in Sublime’s innovative technology, we also still want them to show up for the rest of the ways to decarbonize… and work towards issuing a clear and transparent plan for how they’re going to decarbonize their existing US fleets,” Lauth said. Nollaig Forrest, Holcim’s chief sustainability officer, said Holcim is among “the only players in our sector that really takes a whole value chain approach to decarbonizing building at scale.”

The investment from Holcim and CRH brings Sublime’s total funding to over $200 million since its founding in 2020. It’s another signal of confidence in the startup, which was one of six projects selected for the Energy Department’s $1.6 billion program to fund cement and concrete decarbonization.

Related Topics:CRH Plc Holcim AG Sublime

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UltraTech Cement Ventures into Wires and Cables with Rs 18 Bn Plan

The New Gujarat Plant Marks Expansion in Construction Value Chain.

Published

1 week ago

February 28, 2025

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UltraTech Cement has announced its foray into the wires and cables segment, further expanding its footprint in the construction value chain. The Aditya Birla Group company will invest Rs 18 billion in setting up a state-of-the-art manufacturing facility near Bharuch, Gujarat, which is expected to commence operations by December 2026. An initial investment of Rs 1 billion has already been made towards the project.

The UltraTech board of directors approved the strategic expansion, reaffirming the company’s commitment to strengthening its position as a comprehensive building solutions provider. This move follows last year’s entry into the decorative paints sector with the launch of Birla Opus, signalling the company’s diversification beyond its core cement business.

Strategic Market Entry and Growth Potential
UltraTech Cement aims to tap into the growing demand for wires and cables across residential, commercial, infrastructure, and industrial sectors. The wires and cables industry in India has witnessed a robust revenue growth of approximately 13% between FY2019 and FY2024, driven by rising urbanisation, infrastructure development, and increasing adoption of branded products over unorganised players.

UltraTech believes its entry into this high-growth sector will be value accretive for its shareholders, presenting a compelling opportunity to establish a credible, large-scale presence in the organised market.

Core Cement Business Remains a Priority
Despite this diversification, UltraTech Cement remains firmly committed to its core cement business. The company recently achieved a milestone cement production capacity of over 175 million tonnes per annum (mtpa) in India. It continues to strengthen its leadership position through strategic acquisitions and capacity expansions, especially amid intense competition from Ambuja Cements, owned by the Adani Group.

Industry Outlook: A Diversified Future for Construction Materials
The construction materials industry in India is witnessing rapid evolution, with companies increasingly diversifying their portfolios to cater to a growing and dynamic market. With infrastructure development and urbanisation on the rise, demand for complementary building materials such as wires, cables, and paints is expected to surge. UltraTech’s strategic expansion aligns with this trend, positioning it to capitalise on emerging opportunities while reinforcing its leadership in cement manufacturing.

Concrete

Star Cement to Invest Rs 32 Bn in Assam for New Clinker Plant

The MoU was signed at Advantage Assam 2.0 to boost state’s industrial growth.

Published

1 week ago

February 28, 2025

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In a significant boost to Assam’s industrial expansion, Star Cement Ltd has announced a Rs 32 billoninvestment to establish a state-of-the-art cement clinker and grinding plant in the region. The commitment was formalised with the signing of a Memorandum of Understanding (MoU) between the Assam government and the company on the concluding day of the Advantage Assam 2.0 Investment and Infrastructure Summit 2025.

Chief Minister Himanta Biswa Sarma, addressing the gathering, lauded the commitment of leading investors towards the state’s economic progress. He underscored that such projects reinforce Assam’s position as an emerging industrial hub. “The investment commitments we have received reflect Assam’s potential as a centre for industries and innovation. These projects will significantly contribute to our vision of a developed and self-reliant Assam,” he stated.

This ambitious proposal by Star Cement aligns with Assam’s broader vision of fostering large-scale industrialisation, particularly in key sectors such as manufacturing, infrastructure, and green energy. The project is expected to create significant employment opportunities and contribute to the state’s economic landscape.

Surge in Investments Across Sectors
Beyond Star Cement’s investment, the Assam government secured several other strategic MoUs during the summit. Among them was an agreement with Matheson Hydrogen Lvt Ltd, which will set up a Rs 15 billion hydrogen and steam generation facility, marking a crucial step in Assam’s transition towards clean energy.

Additionally, the state signed a Rs 5 billion MoU with Global Health Ltd to bolster healthcare infrastructure, while ITE Education Services partnered with the government to enhance educational facilities through two non-financial agreements.

Over the two-day event, Assam witnessed the signing of a record-breaking 164 MoUs spanning 15 sectors, reinforcing its status as a promising investment destination. The chief minister hinted at further agreements being finalised, underscoring the growing confidence of investors in Assam’s potential.

Market Outlook: Assam’s Industrial and Economic Trajectory
The surge in investments at the Advantage Assam 2.0 summit highlights the state’s evolving business landscape. With an emphasis on industrial diversification, infrastructure development, and sustainable energy solutions, Assam is poised to emerge as a key player in India’s economic growth story. The increasing participation of major companies across various sectors signals a robust economic trajectory, further solidifying Assam’s reputation as a preferred destination for investors seeking growth and innovation.

Concrete

Kaushalya Logistics Expands with New Varanasi Depot for Adani Cement

Kaushalya Logistics has been actively expanding its depot network to support cement manufacturers with faster turnaround times.

Published

2 weeks ago

February 27, 2025

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Kaushalya Logistics, a diversified conglomerate specializing in logistics for the cement industry, has expanded its operations with the commencement of services at the Varanasi (Uttar Pradesh) depot of ACC, a part of the Adani Cement Group. This development aligns with the company’s strategic growth objectives, aimed at enhancing supply chain efficiencies and streamlining cement distribution across key regions in India.

The Varanasi depot, established under the CCFA model, marks the company’s sixth location and eighth depot under this framework. Designed to manage over 20,000 metric tons of cement per month, the facility will contribute to improved inventory management and timely deliveries. As the cement industry experiences strong demand growth, efficient distribution networks play a critical role in ensuring seamless supply chain operations.

Kaushalya Logistics has been actively expanding its depot network to support cement manufacturers with faster turnaround times, optimized inventory management, and cost-effective logistics solutions. Through automation, digital tracking systems, and operational excellence, the company continues to enhance its service offerings, aligning with the evolving needs of the industry.

The launch of the Varanasi depot is part of Kaushalya Logistics’ aggressive expansion strategy, which has seen the establishment of 19 new depots in FY 2024-25. With this addition, the company’s total network has grown to 93 depots, significantly strengthening its market presence. This expansion further reinforces Kaushalya Logistics’ role as a key logistics partner for leading cement manufacturers, ensuring efficient and uninterrupted cement distribution across diverse regions in India.

News source: ANI