Concrete

World’s biggest cement producers bet on green alternative

Holcim and CRH announced a $75 million investment.

Published

1 year 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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ESL Steel Switches To PNG In Pact With IOCL

Bokaro Plant To Shift From LPG To Cleaner Natural Gas

Published

11 hours ago

December 9, 2025

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ESL Steel Ltd has entered into an agreement with Indian Oil Corporation Limited (IOCL) for the supply of Piped Natural Gas (PNG) to its steel plant in Bokaro, marking a significant move towards cleaner industrial energy. The agreement was formalised in the presence of senior leaders from both organisations, including IOCL Executive Director Manoj K. Sharma, General Manager Amiya Kumar Behera, ESL Steel Deputy CEO and WTD Ravish Sharma, and CFO Anand Dubey.

Welcoming the collaboration, Ravish Sharma said the transition from LPG to PNG represents a major step towards operational efficiency and sustainability. “By adopting PNG—a cleaner and more dependable fuel—we are strengthening our commitment to reliable operations and environmental stewardship,” he noted.

Under the agreement, PNG will replace LPG in selected operational processes at the Bokaro plant, providing a cleaner, safer and more reliable energy source. The partnership also reinforces broader cooperation between IOCL and ESL Steel on sustainable fuel solutions.

The initiative forms part of ESL Steel’s wider strategy to improve energy security, reduce emissions and enhance overall operational performance.

Concrete

EU Carbon Tax Set To Hit India’s Steel Exports

Mills Shift Focus To Middle East And Africa As EU Costs Rise

Published

11 hours ago

December 9, 2025

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India’s steel exports to Europe are expected to decline once the European Union’s carbon tax comes into force next month, prompting domestic producers to look for alternative buyers in Africa and the Middle East, according to industry executives and analysts. From 1 January, steel imported into the European Economic Area will be subject to a levy under the EU’s Carbon Border Adjustment Mechanism (CBAM), which also covers cement, electricity, fertilisers and other emissions-intensive products.

India, the world’s second-largest crude steel producer after China, currently directs around two-thirds of its steel exports to Europe. Experts say the new regime will force Indian mills to accelerate emissions reduction. Former steel secretary Aruna Sharma said companies recognise the need for environmentally responsible production but are simultaneously scouting for new export markets.

Most Indian steel is produced using blast furnaces, which generate significantly higher emissions than electric arc furnaces. The Ministry of Steel’s top civil servant, Sandeep Poundrik, noted earlier that further blast furnace expansion is a concern. Global Energy Monitor estimates that upcoming capacity additions could increase sectoral emissions by roughly 680 million metric tonnes of carbon-dioxide equivalent.

Steady domestic demand—backed by infrastructure spending—has spurred Indian steelmakers to expand capacity. However, the new EU levy is expected to weigh on export volumes in the near term. “Most companies are still figuring out how to deal with CBAM,” said Ravi Sodah, analyst at Elara Capital. “It is expected to slow down India’s exports to the EU.”

Two senior executives at major steel firms said they had little clarity on how the tax would be calculated. One noted that with about 60 per cent of their exports heading to Europe, clarity on whether the tax would be uniform or company-specific was crucial.

According to CreditSights’ Lakshmanan R, the levy will increase the cost of Indian steel exports to Europe—particularly those produced via blast furnaces—compressing margins and eroding market share unless emissions fall. In response, producers are seeking to diversify their customer base, with mills targeting the Middle East through quick delivery commitments and flexible payment terms, said CRU Group principal analyst Shankhadeep Mukherjee.

Concrete

JFE To Invest Rs 157.5bn In JV With JSW Steel

Deal Includes Transfer Of BPSL Steel Unit In Odisha

Published

11 hours ago

December 9, 2025

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JFE Steel Corporation of Japan will invest Rs 157.5 billion to form a joint venture with JSW Steel, according to a regulatory filing. The partnership will include the integrated steel plant of Bhushan Power & Steel Ltd (BPSL), a JSW Steel subsidiary, located in Odisha.

In its BSE filing, JSW Steel confirmed it has entered into a strategic 50:50 joint venture with JFE Steel. The steel business undertaking of BPSL will be transferred to the joint venture through a slump sale, with a cash consideration of Rs 244.83 billion. JFE will invest Rs 157.5 billion in two phases to acquire its half stake.

JSW Steel acquired BPSL in 2021 under the Insolvency and Bankruptcy Code process, transforming it from a distressed 2.75 million tonnes per annum unit into a profitable 4.5 million tonnes per annum operation. The plant currently employs around 25,000 people.

The transaction will enable JSW to monetise part of its holding in BPSL, supporting its broader growth strategy. The company said the partnership will combine JFE’s advanced technological capabilities with JSW Steel’s execution strength, enhancing value creation within the joint venture.

Jayant Acharya, Joint Managing Director and CEO of JSW Steel Ltd, said the collaboration brings together JSW’s expertise in India and JFE’s technological strengths, enabling the venture to scale and produce a wider range of value-added steels. JFE Steel’s President and CEO, Masayuki Hirose, added that the joint operation of an integrated steel plant in India will contribute to the growth of both companies and support the development of India’s steel industry.