Concrete
Cementing Circularity: From Waste to Value
Published
12 months agoon
By
Roshna
The cement industry is redefining its resource-intensive legacy by embracing circular economy principles such as co-processing, clinker substitution and industrial symbiosis. These strategies help cut emissions and unlock economic efficiencies, positioning cement as a driver of sustainable growth.
The cement industry is inherently resource-intensive, yet it holds immense potential to embrace circular economy principles, for example, shifting from wasteful linear models to regenerative systems of reuse and resource efficiency. According to joint research by the World Economic Forum and McKinsey, transitioning to a circular built environment could not only reduce embodied CO2 emissions by up to 75 per cent, but also generate US$ 360 billion in net profits annually by 2050. Cement, responsible for nearly 30 per cent of material-related emissions in construction, is a pivotal actor in this shift.
On a global scale, embracing circular strategies, such as recycling construction and demolition waste, substituting clinker with recycled content, and recovering energy from waste, could unlock up to €110 billion in value by mid-century and mitigate about 2 billion tonnes of CO2 emissions, according to McKinsey. Such measures, when applied systematically, offer both environmental traction and economic upsides across the cement value chain.
In India, the circular transformation is already underway. Cement companies are increasingly integrating industrial by-products like fly ash, slag and calcined clays to substitute virgin limestone, reducing both resource extraction and emissions. As identified in a systematic review, this shift is fast gaining industrial momentum, reflecting a widening interest in recycling, clinker substitution and co-processing of waste streams across research
and practice.
Why Circular Economy?
The cement industry’s transition to a circular economy isn’t just an environmental imperative, it’s a powerful economic opportunity. According to joint research by the World Economic Forum and McKinsey, shifting to circular practices in the built environment, including cement, could reduce embodied CO2 emissions by up to 75 per cent and generate as much as $ 360 billion in net profits annually by 2050. Cement alone contributes roughly 30 per cent of building-related materials emissions, underscoring why transforming its production processes is both urgent and economically compelling.
Sanjay Mehta, President Procurement and Corporate Affairs, Shree Cement, says, “Cement plants are widely recognised as optimal facilities for the safe and efficient disposal of industrial wastes, owing to their high-temperature processing and closed-loop systems. At Shree Cement, we co-process a wide range of materials in strict adherence to Central Pollution Control Board (CPCB) guidelines. Commonly used wastes include agricultural residues (such as crop stubble and biomass), municipal solid waste
in the form of RDF, rubber and plastic waste and dried sewage sludge. This approach not only
ensures sustainable waste management but also significantly reduces reliance on fossil fuels and virgin raw materials, reinforcing our commitment to circular economy principles.”
Embedded in the principles of industrial ecology, co-processing transforms what would be waste into useful feedstock, providing both energy and material value. According to the Confederation of Indian Industry (CII) and Shakti Foundation, different waste streams—Municipal Solid Waste (MSW) at 57 per cent, biomass at 34 per cent, tyre waste at 7 per cent, hazardous material at 3.5 per cent, and spent pot lining at under 1 per cent—could together serve as alternative fuels in cement kilns by 2025. Not only does this divert landfill-bound refuse, it replaces virgin mineral and fossil fuel inputs, aligning profit-generating practices with ecological responsibility.
Indian cement companies are trailing global frontrunners yet making encouraging strides. Ambuja Cement, through its Geoclean initiative, co-processed approximately 0.54 million tonnes of alternative fuels in FY 2023–24, accounting for about 6.36 per cent of their thermal energy needs. They also used 8.6 million tonnes of waste-derived raw materials like fly ash and slag, demonstrating how circular strategies can scale within existing operations.
Additionally, Geocycle India has co-processed over 2 million tonnes of waste in recent years, achieving up to 6 per cent TSR at select plants, including those in Gujarat at 7 per cent TSR, highlighting both opportunity and industrial momentum.
That said, co-processing demands careful planning, technology, and logistics. Pre-processing infrastructure, such as shredders, homogenous storage, feeder systems and on-site labs, is essential to ensure consistent calorific value, safe combustion and clinker quality. According to CPCB estimates, investing Rs.25–30 crore per million tonne per annum of clinker capacity is required to retrofit plants to achieve a 15 per cent thermal substitution rate (TSR). Yet, the combined environmental benefits, ranging from GHG reductions and natural resource conservation to supporting municipal waste solutions, make co-processing a smart, pragmatic step toward cementing circularity in the industry.
Clinker Substitution and AFR
Reducing clinker usage remains one of the most impactful pathways for decarbonising cement. A report by Indian Cement Benchmarking mentions that India has lowered its national average clinker factor to around 0.68–0.70, compared to the global average of 0.75–0.77, with top producers pushing it further down to 0.65 or below using blended cements like Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). Beyond emission cuts,
clinker substitution conserves limestone, lowers production costs and reduces energy demand per tonne of cement produced.
The concept of industrial symbiosis enables industries to feed off each other’s by-products, creating value from what would otherwise be waste. A notable example is Denmark’s Kalundborg Eco-Industrial Park, where gypsum from a power plant is used in wallboard manufacturing, and fly ash and clinker by-products support road construction and cement production. This circular collaboration significantly enhances environmental and economic efficiency, encouraging resource sharing, cost-saving and reduced waste. In India, similar models can redefine material cycles between steel, power and cement clusters, leveraging by-products like slag, fly ash and effluent residues as valuable inputs.
“Collaboration begins with shared sustainability goals. Cement companies can work with traders to identify low-carbon alternatives, co-develop supplier standards and invest in pre-processing infrastructure. Long-term partnerships can unlock access to circular materials like biomass, construction waste and industrial residues, while also ensuring traceability and quality control across borders,” says Uttam Sur, Chief Sustainability and Security Officer, Valency International Pte.
Co-processing waste as alternative fuels and raw materials aligns economic viability with sustainability. According to ‘From Grey to Green – Decarbonising India’s Cement Industry,’ India’s Thermal Substitution Rate (TSR) has risen from one per cent in 2010 to around seven per cent, with some plants reaching TSR levels as high as 25 per cent to 35 per cent using Refuse-Derived Fuel (RDF), biomass, hazardous wastes and industrial residues. This shift reduces reliance on coal, curbs emissions and embeds a circular fuel-and-feedstock cycle within cement operations.
Expanding on this, data from Indian Cement Benchmarking 2023 shows an average TSR of seven per cent, with leading plants achieving up to 38 per cent TSR, and many targeting 20 per cent to 30 per cent per cent plus TSR in the near future. Embracing biomass, industrial waste and novel fuel mixes, these plants are setting the stage for a more resilient and sustainable fuel portfolio.
Quarry to Kiln
The cement industry’s transition from resource depletion to circular sourcing hinges on securing raw materials responsibly, from the quarry to the kiln. Sustainable sourcing not only mitigates ecological impact but also shields businesses from supply disruptions and volatile commodity prices. For instance, utilising locally available raw materials like Nimbahera stone can dramatically reduce transportation emissions and the environmental footprint associated with long-haul logistics. Nimbahera stone, a blue limestone prevalent in Rajasthan, is widely sourced for regional cement plants, exemplifying how proximity-to-resource offers both sustainability and economic benefits.
Clinker substitution further reinforces sustainable sourcing by curbing reliance on virgin limestone. A report by the Cement Manufacturers’ Association reveals that India’s clinker-to-cement ratio stands around 69.5 per cent, closely aligned with global top performers at 65 per cent, meaning nearly 30 per cent of material inputs derive from supplementary resources like fly ash and slag. Reducing clinker demand not only conserves natural resources but also cuts CO2 emissions, estimated at 0.83 tonnes per tonne of clinker displaced.
Beyond raw material sourcing, upstream innovations such as recycling spent refractories are gaining traction. A report in Indian Cement Review notes that leading firms like ACC and UltraTech have begun blending 30 per cent to 40 per cent spent refractories into raw meal, significantly reducing dependence on virgin inputs. This shift is projected to reduce refractory disposal costs by `15–20 crore annually, while enhancing thermal efficiency in
kiln operations.
Digital Technologies
The cement industry is increasingly leveraging digitalisation and artificial intelligence (AI) to unlock circular economy practices. Advanced AI- and IoT-powered process-control systems are instrumental in optimising production, minimising waste, enabling predictive maintenance and streamlining material flows, thus facilitating the integration of by-products like fly ash and slag back into the process. These smart systems also support emissions monitoring and ensure resource efficiency across operations.
Moreover, digital twins, which refers to virtual replicas of physical plant operations, allow operators to simulate and optimise process changes in real time. A report by KPMG illustrates how a digital twin of a raw mill can optimise energy usage by continuously modelling variable process parameters. Parallelly, AI-based ‘mine mix optimisers’ and fuel schedulers dynamically balance inputs to flatten energy loads and enhance material consistency.
These interventions not only elevate energy efficiency but also lay the groundwork for circularity-enabled production.
Waste Management
Partnerships between cement players and waste management firms are emerging as pivotal enablers of circularity. Indian digital recycling platforms like Recykal are transforming the supply-side value chain by connecting waste generators, collectors, and recyclers—thus ensuring a steady stream of alternate inputs into cement kilns. Recykal’s digital platform scaled rapidly—from recycling 30,000 tonnes of plastic in 2017 to over 200,000 tonnes by 2021—demonstrating the power of tech-enabled collaboration to feed circular processes.
On the ground, municipal collaborations are also gaining traction. For instance, the Haryana government recently sanctioned a `89.9 crore PPP to reclaim 14 lakh tonnes of legacy waste at the Bandhwari landfill, explicitly mandating the use of resulting refuse-derived fuel (RDF) by industrial users like cement plants. This public-private model repositions waste as feedstock and not as landfill fodder, shifting the circular sector into action.
Regulatory Push and Policy Support
Regulatory frameworks are emerging as powerful levers for circular economy adoption in India’s cement sector. The Perform, Achieve and Trade (PAT) scheme under India’s National Mission for Enhanced Energy Efficiency is a prime example. According to the Bureau of Energy Efficiency, cement plants participating in PAT cycles have consistently surpassed their energy-saving targets, achieving around 1.48 MTOE in Cycle I and 1.56 MTOE in
Cycle II—both significantly over their targets. Furthermore, the upcoming Carbon Credit Trading Scheme (CCTS) is expected to evolve from PAT, setting specific carbon intensity targets per tonne of cement and enabling tradable credits for greener performance. These market-linked incentives are nudging the industry to align energy efficiency initiatives with regulatory expectations.
Beyond energy-specific schemes, waste management rules underscore circular pathways like co-processing. The 2016 Solid Waste Management rules, and the Hazardous Waste Management standards, explicitly recognise co-processing in cement kilns—facilitating faster approvals provided emission standards are met, while enabling interstate waste movements through simplified protocols. Complementing these measures, the CII Waste Material Exchange portal offers a marketplace connecting waste generators with cement plants, fostering resource-sharing partnerships across sectors. Together, these policies and platforms are lowering institutional barriers and creating structured pathways for cement’s engagement in the circular economy.
Market Incentives and Green Financing
Financial mechanisms are pivotal in scaling circular and low-carbon transitions. According to a joint report by MUFG Bank and the Climate Bonds Initiative, India will need a staggering $ 1.3 trillion in cumulative green, social and sustainability-linked funding by 2030 to decarbonise energy-intensive sectors like cement and steel. Concrete proof of financial innovation’s potential is seen at UltraTech Cement, which secured $ 500 million in sustainability-linked loans in 2024, its second such financing, tying funding to ESG performance and green energy uptake. These instruments allow cement companies to raise capital while embedding sustainability targets within debt structures.
On the institutional front, green credit channels are emerging to support circular upgrades. Recently, the State Bank of India (SBI) signed a €100 million (`900 crore) green finance agreement with Agence Française de Développement (AFD), aimed at scaling up climate mitigation projects across India. SBI’s goal is to increase its green loan portfolio to 7.5 per cent to 10 per cent of domestic advances by 2030.
Meanwhile, MSMEs, often integral to cement value chains, stand to benefit from initiatives like MSE-SPICE and MSE-GIFT, which offer incentives and concessional financing for adopting circular economy and clean technology practices. These emerging financing tools make circular investments more accessible and create a viable economic framework for industry-wide scale-up.
Challenges Ahead
India’s journey toward circularity in cement hinges critically on building robust infrastructure and coordination across value chains. According to a CEEW study, transitioning to widespread industrial symbiosis, where waste streams are repurposed effectively, faces major logistical and infrastructure constraints, with fragmented collection systems, inconsistent waste segregation and limited pre-processing facilities hampering scale. Meanwhile, the country’s municipal solid waste (MSW) generation is already estimated at 62 million tonnes annually, of which only approximately 70 per cent is collected, and a mere 20 per cent processed, leaving the rest in landfills or open disposal, undermining cement sector efforts to source viable refuse-derived fuel (RDF).
Beyond infrastructure shortfalls, there is a pervasive awareness and standardisation gap that slows circular adoption in cement operations. Many industry players remain unconvinced about the quality and consistency of alternative raw materials like construction-demolition waste or spent refractories. In addition, while technical guidelines on co-processing exist, variance in enforcement, lack of uniform standards across states and lingering misconceptions about emissions compliance contribute to slow uptake. Overcoming these perceptual and regulatory asymmetries will require concerted efforts in training, stakeholder alignment and harmonised norms to ensure that circular practices are not just technically viable but trusted across the sector.
Conclusion
The cement industry’s embrace of circular economy principles marks a decisive shift from linear ‘produce–use–discard’ models toward regenerative resource use. By scaling co-processing of waste, clinker substitution, and industrial symbiosis, cement manufacturers are demonstrating that environmental responsibility and business competitiveness can go hand in hand. According to the International Finance Corporation (IFC), co-processing alone could help the sector reduce up to 15 per cent of its fossil fuel use in India, while clinker substitution strategies could curb emissions by 200–250 kg of CO2 per tonne of cement. These gains not only lower the industry’s carbon footprint but also unlock cost efficiencies and extend the lifespan of finite raw material reserves.
Looking ahead, the sector’s success in circular transitions will depend on three enablers: policy harmonisation, collaborative ecosystems and digital technologies. With regulatory frameworks tightening around waste management and carbon emissions, and with green financing mechanisms gaining traction, the cement industry has both the mandate and opportunity to lead by example. By forging stronger partnerships with waste managers, technology providers and policymakers, and by investing in AI-driven monitoring and resource optimisation, the industry can accelerate its path toward net-zero cement production. In doing so, it positions itself not just as a consumer of resources, but as a vital solution-provider in building a sustainable, circular economy.
– Kanika Mathur
Concrete
CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech
To build capacity of 100,000 tonnes a year
Published
3 days agoon
August 28, 2026By
admin
CarbonStrong has raised Rs 125 million (125 mn) to scale a low carbon cement technology and build commercial production capacity. The startup was founded in 2022 by Harsh Jain and Vikramaditya Singh and has moved from customer trials to plans for industrial supply. The company said its material replaces up to 50 per cent of cement in concrete while reducing costs and improving durability.
CarbonStrong states the product is around 30 per cent cheaper than cement and compatible with existing concrete plants, reducing the need for new equipment and operational disruption. Trials and paid pilots have been conducted in Bengaluru, Hyderabad and Chennai with demonstration projects involving ready-mix firms and precast manufacturers. Compatibility with current workflows forms a central part of the commercial strategy, aiming to ease adoption by builders and contractors.
The funding will support construction of a facility with capacity of up to 100,000 tonnes (100,000 t) a year over the next two years to supply early customers commercially. The firm is also developing materials from steel slag, copper slag and mine tailings to expand its feedstock base, while noting the technical challenge of homogenising different waste streams. Recognition by HCL ClimaForce in 2026 and by the Avaana-Startup India-NITI Aayog AIM Grand Challenge in 2025 has underscored progress.
Industry adoption remains the principal test and will require consistent material performance, supply reliability and competitive economics. CarbonStrong projects the Indian market for cement substitutes could reach Rs 250 billion (250 bn) by 2030 and has set an ambition to produce 10 million tonnes a year by 2035 (10 mn t), a target far above its near term capacity. Moving from pilots to production demands capital, manufacturing discipline and customers willing to specify the material beyond demonstrations. The recent Rs 125 million raise is intended to fund the next phase of scale and to demonstrate that industrial waste can become a dependable input for lower carbon construction.
In a research-backed article, Dr SB Hegde examines why carbon-adjusted profitability and LC3 will decide the next set of winners in cement manufacturing.
The Indian cement industry has achieved world-class operational efficiency through lower specific energy consumption, high plant utilisation and a reduced average clinker factor of approximately 67.5 per cent. These traditional measures of operational excellence remain essential. However, they are no longer sufficient. Carbon now carries a measurable financial cost under India’s Carbon Credit Trading Scheme (CCTS) and under European carbon markets. Future leadership will be defined by carbon-adjusted profitability, the ability to generate strong returns while systematically lowering the carbon intensity of every ton sold.
Limestone calcined clay cement (LC3) offers a practical, scalable pathway to achieve this dual objective. By replacing up to 50 per cent of clinker with calcined clay and limestone, LC3 can reduce CO2 emissions by 30–40 per cent while delivering comparable or superior durability performance.
This article examines the technical foundations of LC3, European industrial practices, the emerging Indian carbon market and a concrete roadmap for Indian companies to embed carbon-adjusted metrics and LC3 into daily operations, incentives and commercial strategy.
Limits of traditional operational excellence
For many years, plant performance has been judged primarily by five indicators: specific heat consumption, specific power consumption, kiln and mill utilisation, clinker factor and overall equipment effectiveness. These metrics drove continuous improvement and helped the industry reduce energy use and increase the share of blended cement. Three structural changes have rendered them incomplete as sole measures of success.
First, carbon now carries a real or opportunity cost. Plants that improve volume or lower cash cost while raising or stagnating emissions intensity create a hidden liability that will surface as CCTS trading matures and as green procurement expands.
Second, lower-carbon products such as LC3 and high-performance blended cements are creating differentiated market segments. Customers in infrastructure, real estate and export-oriented construction are beginning to specify embodied-carbon limits.
Third, investors and lenders increasingly treat carbon intensity as a financial risk factor. Traditional KPIs can mask the divergence between short-term cash profit and long-term carbon-adjusted value.
What is carbon-adjusted profitability?
Carbon-adjusted profitability evaluates normal profit after explicit adjustment for carbon performance. A practical expression is:
Carbon-Adjusted EBITDA = Conventional EBITDA – Carbon Cost + Green Premium Income
Carbon cost may be an internal carbon price, the actual cost of purchasing Carbon Credit Certificates under CCTS, or the opportunity cost of high emissions relative to peers. Green premium income arises when customers pay more for verified lower-carbon cement or when the company sells surplus credits. Tracking both conventional and carbon-adjusted profit side-by-side gives management a clearer picture of value creation under evolving market rules.
Table 1. Traditional KPIs versus Carbon-Adjusted Leadership Metrics
Traditional Focus New Leadership Metric Why It Matters
Specific energy consumption Emissions intensity (kg CO2/t cement) Directly linked to future CCTS and CBAM costs
Kiln utilisation Carbon-adjusted contribution margin Reveals true value of incremental volume
Clinker factor Share of lower-carbon products sold (incl. LC3) Measures commercial success of the transition
Power cost per tonne Effective carbon cost per tonne sold Expose hidden liabilities
Absolute EBITDA Carbon-adjusted EBITDA + green premium Aligning profit with future market reality
LC3: Technical foundations and performance advantages
LC3 is a ternary blended cement that typically combines approximately 50 per cent clinker, 30 per cent calcined clay, 15 per cent limestone and 5 per cent gypsum (the classic LC3-50 formulation). The decisive technical advantage is that clay is calcined at 700–850 °C, far below the 1,450 °C required for clinker production. This lower temperature, together with the substantial reduction in clinker content, delivers CO2 reductions of 30–40 per cent relative to ordinary Portland cement (OPC).
Chemistry is synergistic. Calcined kaolinitic clay (metakaolin) reacts with calcium hydroxide from clinker hydration and with limestone to form additional C-A-S-H gel and carboaluminate phases. These phases densify the microstructure, reduce porosity and improve durability.
Field experience shows superior resistance to chloride ingress, sulphate attack and alkali–silica reaction. Early-age strength can match OPC with high-reactivity clays; later-age strengths routinely meet 42.5 and 52.5 grade requirements.
Importantly, LC3 does not require high-purity kaolin. Clays with 40 per cent or even lower kaolinite content can be activated successfully, expanding raw-material availability across India. Calcination can use adapted rotary kilns or dedicated flash calciners, making the technology compatible with existing plant infrastructure and far less capital-intensive than carbon capture.
Economic analyses show that LC3 can be produced at equal or lower cost than OPC in many locations because of reduced energy demand and cheaper clay. Life-cycle assessments consistently report 30–40 per cent lower embodied CO2 per tonne of cement.
Table 2. Comparative profile: OPC versus LC3-50
Parameter OPC LC3-50
Typical clinker content ~95 per cent ~50 per cent
CO2 emissions (relative) Baseline (≈0.85 t CO2/t cement process + fuel) 30–40 per cent lower
Clay calcination temperature Not applicable 700–850 °C
Key hydration products C-S-H, portlandite, ettringite C-A-S-H + carboaluminates
Chloride & sulphate resistance Good Superior
Production cost potential Baseline Equal or lower in most locations
Infrastructure compatibility Existing High (minor adaptations)
In India, commercial adoption has begun in earnest. JK Cement commenced the first commercial production of LC3 in the Indian subcontinent at its Mangrol plant in Rajasthan in 2025 under BIS standard IS 18189.
By early 2026, approximately 2,000 tonnes had been produced and sold, avoiding an estimated 500 tonnes of CO2. JK Lakshmi Cement followed with commercial launch of its Green PRO LC3 grade from the Jaykaypuram plant. As of mid-2026, two producers are supplying LC3 to the market. The first large-scale infrastructure application is the Noida International Airport (Jewar), where LC3 was used in the runway and a building complex, demonstrating full constructability and performance under demanding conditions. These early volumes are still small relative to national cement demand, but they mark the critical transition from pilot to commercial reality. Companies that scale capacity now will be positioned to capture both CCTS credits and emerging green-procurement demand.
Why the shift is accelerating
According to the World Bank’s State and Trends of Carbon Pricing 2026, direct carbon pricing now covers nearly 30 per cent of global greenhouse-gas emissions and generated more than US$107 billion in public revenue in 2025. The average global carbon price stands at approximately US$21 per tonne, although regional prices vary widely.
In Europe, the EU ETS price has traded near €80–85 per tonen in mid-2026. Free allocation for cement is being withdrawn in parallel with CBAM. European producers therefore face a clear signal: every tonne of avoided CO2 improves both compliance and competitiveness. Holcim has scaled calcined-clay production, including Europe’s first dedicated line at Saint-Pierre-la-Cour (France) and a second line in the Czech Republic (2026). Heidelberg Materials, Cementir (FUTURECEM) and others have commercialised low-clinker calcined-clay blends across multiple markets, showing that carbon-adjusted profitability is already reshaping capital allocation in the world’s most mature carbon market.India’s CCTS is now operational. Binding emission intensity targets apply to 186 cement facilities for FY 2025–26 and FY 2026–27. Average required reductions for integrated plants are modest (around 2.7 per cent by FY 2027), yet the direction is clear.
Trading of Carbon Credit Certificates is expected in the second half of 2026, with early prices likely in the `800–1,500 per tonne range. Plants that outperform targets can sell credits; those that underperform must buy them or face compensation. Cement is well positioned to be a net supplier of credits if clinker factor continues to fall through LC3 and other low-clinker systems.
Way forward for India
India starts from a strong baseline, world-class energy efficiency and a clinker factor already lower than the global average. The next competitive frontier is the deliberate reduction of process emissions through clinker substitution at scale. LC3 is uniquely suited to Indian conditions because suitable clays are widely distributed, the technology fits existing kiln and grinding infrastructure, and the resulting product can meet the performance demands of both infrastructure and building construction.
A practical national pathway contains five interlocking elements:
- Standards and acceptance: Accelerated finalisation and promotion of BIS specifications for calcined-clay and limestone–calcined-clay cements will remove a key barrier to commercial uptake. Alignment with European practice (EN 197-5) can facilitate knowledge transfer and export readiness.
- Supply-chain development: Investment in flash calcination capacity and systematic characterisation of regional clay deposits will secure reliable, low-cost feedstock. Existing rotary kilns can be adapted for initial volumes while dedicated calciners are built.
- Incentive alignment: Part of variable compensation for plant managers, sales teams and senior leadership should be linked to emissions intensity reduction and to the volume of lower-carbon products (including LC3) sold. Without this link, traditional volume and cost targets will continue to dominate behaviour.
- Product-level carbon accounting: Reliable measurement of emissions intensity at the individual cement grade level, supported by third-party verification where required, is essential for both CCTS compliance and credible green claims.
- Demand-side pull: Green public procurement policies that specify maximum embodied-carbon thresholds for major infrastructure projects will create a predictable market for LC3 and other low-carbon cements, accelerating scale and cost reduction.
Companies that treat LC3 as a strategic product line rather than a niche offering will be better positioned to generate surplus Carbon Credit Certificates, capture any emerging green premium, and protect margins as carbon costs rise.
Organisational changes required
Technical capability alone is insufficient. Three organisational shifts are required.
Daily management: Emissions intensity must appear on the same daily and monthly dashboards as heat consumption, power consumption and utilization. Plant reviews should examine both conventional and carbon-adjusted results.
Incentives: A meaningful portion of bonuses for plant heads, technical teams and sales leadership should be tied to lower emissions intensity and successful commercialisation of LC3 and other low-carbon grades.
Commercial approach: Sales teams need clear volume and pricing targets for lower-carbon products, supported by technical service that helps customers specify and place the material correctly. Without commercial pull, excellent technical performance remains under-utilised.
Table 3. Three-stage roadmap to carbon-adjusted profitability
Time Horizon Priority Actions Expected Outcome
Next 12 months Add emissions intensity to plant dashboards; establish internal carbon price; initiate LC3 pilot production and customer trials Visibility and early organisational learning
12–24 months Revise incentive systems; scale LC3 and other low-carbon grades to key accounts; secure third-party verification capability People and sales aligned with carbon goals
24–36 months Embed carbon-adjusted metrics in board reporting and capital allocation; expand calcined-clay capacity Full system integration and competitive advantage
Questions senior leaders should ask
Boards can accelerate the transition by insisting on answers to a short list of questions:
• Is our carbon-adjusted profit improving, stable or declining relative to conventional EBITDA?
• Did recent volume growth improve or worsen our emissions intensity?
• What share of sales already comes from lower-carbon products, including LC3, and what is the trajectory?
• How exposed is our capital expenditure plan to rising carbon costs under CCTS and potential CBAM-related requirements?
• Do our incentive systems still reward only volume and cost, or have they been updated to include carbon performance?
Treating carbon with the same seriousness as energy cost or kiln utilization does not diminish operational excellence; it expands the definition of excellence to match the new competitive reality.
Looking ahead
By 2030 the gap between leading and lagging cement companies will not be decided by who records the lowest specific heat consumption. It will be decided by who delivers the strongest carbon-adjusted profits.
Absolute emissions may still rise as national production grows. That is not the issue. Companies that reduce intensity year after year and successfully sell cleaner products will pull ahead in both domestic and export markets. Those that do not will fall behind, even if their traditional efficiency numbers look strong.
Operational excellence built the Indian cement industry. It remains the foundation. It is no longer the complete picture. Carbon-adjusted profitability is the clearer measure of success.
LC3 is not a distant technology. It is available now. It cuts CO3 by 30–40 per cent, works with existing plants, and is already in commercial production in India. Companies that treat it as a strategic product, not a pilot, will protect their margins and generate tradable credits.
Leaders who act now will place carbon metrics on daily dashboards, link incentives to intensity reduction and LC3 sales, invest in calcined-clay capacity, and build commercial capability to sell lower-carbon products. They will shape the next chapter of the industry.
References
- World Bank. (2026). State and Trends of Carbon Pricing 2026. Washington, DC: World Bank Group.
- International Carbon Action Partnership (ICAP). (2026). India Carbon Credit Trading Scheme – Status and Coverage. Berlin: ICAP.
- Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency. (2025). Greenhouse Gases Emission Intensity Target Rules, 2025. New Delhi: Government of India.
- Scrivener, K., Martirena, F., Bishnoi, S., & Maity, S. (2018). Calcined clay limestone cements (LC3). Cement and Concrete Research, 114, 49–56.
- RMI. (2024). The Business Case for LC3. Rocky Mountain Institute.
- European Commission. (2026). EU Emissions Trading System – Allowance Price Data and Free Allocation Phase-out Schedule. Brussels.
- Holcim. (2025–2026). Scaling Calcined Clay for Sustainable Building – Corporate Updates on European and Latin American Capacity. Zurich: Holcim Ltd.
- LC3 Project / EPFL. (2026). LC3 – A Guide to Best Practices for Scalable, Affordable and Sustainable Low-Carbon Building. Lausanne: École Polytechnique Fédérale de Lausanne.
- Business Today / Industry Reports. (2026). First Large-Scale LC3 Application at Noida International Airport, Jewar. New Delhi.
- NITI Aayog / Industry Analyses. (2026). Roadmap and Baseline Performance Indicators for the Indian Cement Sector. New Delhi.
- Springer / Innovative Infrastructure Solutions. (2026). LC3 Systems: A Review of Chemistry, Performance, Durability and Sustainability toward Market Adoption.
- Cementir Holding / Industry Sources. (2025–2026). FUTURECEM and Related Low-Clinker Technologies in Europe.
- Climate Risk Horizons & Independent Analyses. (2026). Assessment of Emission Intensity Targets under India’s CCTS for Cement and Other Hard-to-Abate Sectors.
- GCCA / TERI. (Various years). Decarbonization Roadmaps for the Indian Cement Industry.
- EN 197-5:2021. Cement – Part 5: Portland-composite cement CEM II/C-M and Composite cement CEM VI. European Committee for Standardization.
Concrete
More Oversight Makes Cement Plants Less Safe
Published
3 days agoon
August 28, 2026By
admin
Dijam Panigrahi makes a counterintuitive but data-backed argument that routing every sensor alert through human approval does not make cement plants safer.
India’s cement industry has spent the last two years wiring kilns, mills and coolers with sensors and automated control systems, and the safety case for doing so is strong on paper. Contract workers still make up the majority of the industry’s workforce, and fatal accidents remain a recurring problem. The Indian National Cement Workers Federation has noted that around 83 per cent of workers in the sector hold precarious positions, a fact that resurfaced after an oxygen cylinder explosion killed three contract workers at a plant in Chhattisgarh.
Industry tallies compiled by IndustriALL found cement plants recorded at least seventeen accidents in one year with 21 workers killed, and ten accidents the following year with nine killed, most of them contract staff. Automated monitoring, in theory, closes that gap. A sensor never gets complacent and never skips a check because a shift is short staffed.
However, plants that respond by routing every anomaly reading to a person for approval are quietly building a system that fails the same way understaffing does. When operators receive dozens of flagged deviations a shift, most of them minor, they learn a simple lesson: the fastest way through the queue is to approve without reading closely. The safety benefit disappears, not because the technology failed, but because the humans supervising it adapted to the volume.
Why alerts get ignored
A study cited by manufacturing technology publisher Applied SmartFactory found more than 95 per cent of alarms in a semiconductor fab were low priority, and only about 4 per cent ever triggered an action, with just 100 out of 5,000 alarms accounting for 70 per cent of all alarm activity. The mechanism is the same whether the trigger is a vibration sensor or an AI model flagging a kiln temperature swing. Once the ratio of noise to signal crosses a threshold, workers stop treating the system as a decision aid and start treating it as a formality to clear.
The scale of AI deployment underway makes this more than a theoretical risk. Stanford’s 2026 AI Index Report found organisational adoption of AI has reached 88 per cent, even as documented AI incidents rose to 362 in 2025, up sharply from 233 the year before, according to analysis of the report. The Index also found only about a third of organisations have adopted a formal governance framework, with NIST’s AI Risk Management Framework cited by 33 per cent and ISO/IEC 42001 cited by 36 per cent.
Most manufacturers are deploying monitoring systems faster than they are building the judgment for when a flagged event actually needs a person’s attention. In India, plants run by JK Cement have begun pairing CCTV feeds with AI to define safe zones around heavy machinery, a promising direction that still depends on operators trusting and reading the alerts the system generates.
A three-tier model for cement plant
The fix is not less monitoring or more monitoring. It is classifying decisions by risk and by novelty, rather than treating human oversight as a single switch that is either on or off. A workable model sorts factory floor events into three tiers.
The first tier, proceed, covers deviations the plant has seen before that fall within known safe bounds, such as a kiln feed rate adjustment within an established range. These should run without a stop for approval, because routing them to a person only trains that person to click through.
The second tier, pause, covers events that are unusual but not yet dangerous, such as a vibration reading trending toward a limit or a fuel blend shifting outside its typical mix. These warrant a brief human check before the system proceeds, giving an operator the chance to apply judgment the model does not yet have.
The third tier, escalate, covers events that are both high risk and unfamiliar, such as a pressure reading combined with a temperature spike that has no close precedent in the plant’s history. These should stop the process entirely and require a decision from someone with the authority to shut down a line.
Who should set the threshold
Where these tiers get drawn matters as much as the framework itself. Threshold setting is frequently handed to the vendor supplying the monitoring software or to a plant’s IT department, both of which understand the technology but not the specific tolerances of a given kiln, mill or line. Operations staff, who know that a particular grinding unit runs hotter under monsoon humidity or that a calciner behaves differently after a refractory reline, are better positioned to calibrate what counts as routine on their own equipment.
Handing threshold ownership to operations does not remove IT or vendors from the process, but it puts the calibration decision closest to the people who live with its consequences on the floor.
Signals that oversight is actually working
A few concrete indicators reveal whether a monitoring setup is functioning as intended or simply providing the appearance of safety. The escalation rate over time is the first: a rate that stays flat or climbs slowly as operations mature is healthy, while one that spikes and then falls sharply often means operators have started overriding the system rather than engaging with it. Time to resolution is the second: escalations that take progressively longer to close suggest fatigue or confusion about ownership, not diligence. The third, and most telling, is how accurate the system’s own uncertainty estimates turn out to be, meaning whether events flagged as high risk actually correlated with real incidents, and whether events waved through stayed incident free. A system whose escalations do not track with actual outcomes trains operators toward the same complacency that unmonitored equipment produces.
None of this argues against automation in Indian cement manufacturing, where a labor structure built on contract work and a track record of serious accidents make better monitoring an urgent need. It argues for treating human oversight as a design problem with three distinct settings, rather than a single
dial turned up whenever a plant wants to look safer on paper.
About the author:
Dijam Panigrahi, Co-founder and COO, GridRaster, is a spatial computing platform for industrial enterprises and manufacturers.
CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech
Protect Your Margins
More Oversight Makes Cement Plants Less Safe
The biggest gap arises from inconsistent leadership
The Future of Vertical Material Handling
CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech
Protect Your Margins
More Oversight Makes Cement Plants Less Safe
The biggest gap arises from inconsistent leadership

