Concrete

Low-Carbon Future: Reimagining Cement

Published

3 months ago

November 20, 2025

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Milind Khangan, Manager – Marketing, Vertex Market Research, discusses how cement, India’s hard-to-abate sector, is paving the path to Net Zero.

The Indian cement industry, the world’s second-largest, holds an installed capacity of around 700 million tonnes per annum (MTPA) and is fundamental to India’s infrastructure growth and urbanisation. However, it remains one of the country’s most challenging ‘hard-to-abate’ sectors, contributing nearly 7–8 per cent of national industrial CO2 emissions.
With India’s commitment to achieving Net-Zero by 2070, decarbonising cement production has become a national strategic priority. The sector’s transformation can be understood through the 3Cs of Decarbonisation — Cut emissions, Cement innovation, and Carbon capture and utilisation. Together, these pillars, underpinned by digital optimisation, automation and enabling policy frameworks, represent a structured pathway towards deep emission reduction while maintaining industrial competitiveness. Government-backed pilot projects and public-private testbeds are helping transition the sector from demonstration to early commercial adoption, creating a foundation for large-scale transformation.

Cut: Cutting operational emissions (near-term, high ROI)
The first pillar ‘Cut’ focuses on immediate, high-impact interventions targeting emissions from fuel combustion and electricity use, which collectively account for around 30 per cent of the industry’s total emissions.

Fuel switching and AFR
Co-processing Refuse-Derived Fuel (RDF), industrial waste, and biomass is steadily replacing coal and other high-carbon fossil fuels. This approach not only lowers Scope 1 emissions but also contributes to waste management in urban and industrial clusters.

Ambuja Cements increased its AFR consumption in kilns to 9.4 per cent in H1 FY25 from 7 per cent in H1 FY24, indicating an improved Thermal Substitution Rate (TSR).
Securing consistent, reliable and high-quality RDF feedstock through municipal partnerships has become a strategic priority.

Waste Heat Recovery (WHR)
WHR systems convert residual heat from the pyroprocess into captive electricity, reducing Scope 2 emissions and enhancing thermal efficiency. Increasingly, WHR is being integrated with renewable energy (RE) sources to stabilise green power supply.

As of March 2025, UltraTech Cement held 342 MW of WHR capacity, contributing to a total green energy portfolio of 1.36 GW, including solar and wind.
Dalmia Bharat increased its renewable energy share to 39 per cent in Q2 FY25, targeting 45 per cent by the end of the fiscal year.
In August 2025, UltraTech commissioned a 7.5 MW Hybrid Round-the-Clock (RTC) project (solar + wind + battery) in Gujarat in August 2025 to stabilise renewable energy supply.

Energy efficiency and process optimisation
Advanced digitised process controls, AI-driven kiln optimisation, and predictive maintenance
systems reduce clinker overburn, stabilise AFR use, and optimise thermal efficiency. Closed-loop kiln control using AI/ML is increasingly identified as a strategic differentiator.

AI and machine learning-based closed-loop kiln control delivers thermal energy savings of 5-10 per cent and reduces downtime.
Imubit reported clinker production efficiency improvements of 5-10 per cent and fuel consumption reductions of 3-5 per cent by deployment of Closed-Loop AI Optimisation (AIO).

Renewable power procurement
Vertex Market Research expects the expansion of on-site solar, wind, and open-access corporate PPAs is reducing reliance on grid electricity and mitigating Scope 2 emissions. The trend is shifting towards hybrid and RTC renewable solutions integrating solar, wind, and battery systems.

UltraTech added 269 MW of renewable capacity in Q4 FY25, meeting approximately 46 per cent of its power requirements. The total capacity consists of 1,021 MW of solar, wind, and hybrid energy sources and 342 MW of WHRS.
In its FY25 annual report, Dalmia Bharat announced that its total operational renewable energy (RE) capacity target is set to increase from 267 MW to 595 MW by the end of fiscal year 2026.

Green hydrogen integration
Supported by the National Green Hydrogen Mission, pilot projects are underway to explore green hydrogen as a substitute fuel in kilns and grinding units. While widespread commercial deployment is anticipated post-2030, early trials in calciners and low-temperature operations are creating a technological base for future zero-carbon heat applications.

Decarbonisation targets and commitments
Indian majors are aligning their climate goals with the Science Based Targets initiative (SBTi).

Ambuja and ACC are committed to Net Zero by 2050 and are the only 2 cement companies in India undergoing Net Zero target validation from the Science Based Targets initiative (SBTi).
UltraTech and Ambuja Cement aim for a 27 per cent reduction in Scope 1 CO2 emissions by 2032 and have already achieved a 12 per cent reduction.

Cement: Product and process innovations (medium-term structural change)
The second pillar ‘Cement’ centres on re-engineering materials, clinker ratios, and manufacturing processes to achieve structural emission reduction. It aims to reduce clinker intensity and embodied carbon, thereby addressing the intrinsic process emissions (around 60 per cent of total CO2 output).

Clinker substitution and SCMs
While fly ash and slag remain key SCMs, their long-term availability could decline as the power and steel sectors decarbonise. Consequently, the industry is diversifying into calcined clays, silica fume, and limestone fillers to sustain clinker replacement rates. Multi-component (ternary and quaternary) blends are being tested to maximise emission reduction potential.

Limestone calcined clay cement (LC3)
LC3 technology enables up to 50 per cent clinker replacement using locally available clays and limestone, achieving 30–40 per cent lower CO2 emissions without significant cost escalation.

In July 2025, JK Cement and JK Lakshmi launched India’s first commercial LC3 under BIS IS 18189:2023.
Early implementation of LC3 in infrastructure projects such as the Noida International Airport signals growing market acceptance.

Novel kiln concepts
The calcination process is a major source of process emissions. To address calcination-related emissions, innovations such as electrified calciners and Electric Arc Calciners (EAC) are being piloted.

The collaboration between Dalmia Cement and SaltX Technology is focused on advancing the Electric Arc Calciner (EAC) pilot project in India. These pilots are heavily dependent on low-cost renewable electricity. Although at a pre-commercial stage, such technologies are vital for achieving deep decarbonisation beyond 2035.

Blended products portfolio and cement use efficiency (CUE)
The GCCA India–TERI Decarbonisation Roadmap (March 2025) projects that optimised mix designs and multi-blend cements could reduce India’s cement demand from 1,440 MT to 944 MT by 2047, a 34 per cent reduction. Efficient structural design, increased Ready-Mix Concrete (RMC) use, and multi-component blends will be critical enablers.
Recarbonation and circular concrete
Concrete naturally reabsorbs CO2 during its lifecycle, a process termed recarbonation. GCCA India estimates that recarbonation could offset up to 5.9 per cent of cumulative cement sector emissions by 2070. Recycling concrete aggregates can accelerate this process, closing material loops and promoting circularity.

Carbon: CCUS and carbon management (long-term, residual emissions)
The ‘Carbon’ pillar addresses intrinsic process emissions from clinker calcination, which cannot be fully eliminated through fuel switching, process optimisation or clinker substitution.

Carbon capture and utilisation (CCU) and testbeds
India’s approach prioritises CCU over storage (CCS) to convert captured CO2 into value-added products to offset high CAPEX, improving project economics.
India prioritises CCU over storage, converting captured CO2 into value-added products to offset high CAPEX. DST-supported public-private pilot projects validate indigenous technologies such as oxygen-enhanced calcination and solvent-based capture. Pilot-scale operations (1–2 tpd) target products including lightweight concrete blocks, precipitated calcium carbonate, and formic acid.

In May 2025, the Department of Science and Technology (DST) launched five CCU testbeds for the cement sector under a public–private partnership (PPP) framework.
These pilots (1–2 TPD scale) are testing oxygen-enhanced calcination and solvent-based capture technologies, with utilisation routes for precipitated calcium carbonate, lightweight blocks, and formic acid.

Policy and financial levers
The Carbon Credit Trading Scheme (CCTS), established under the Energy Conservation (Amendment) Act 2022, mandates GHG intensity reduction for large cement plants. This creates
financial incentives for low-carbon investments and CCUS adoption.

The Carbon Credit Trading Scheme (CCTS), established under the Energy Conservation (Amendment) Act, 2022, is now being implemented. The Bureau of Energy Efficiency (BEE) released notifications in mid-2025, setting GHG Emission Intensity (GEI) targets for large entities. Cement is a compliance sector with targets for 2 per cent reduction in GEI for FY 2025-26, increasing in subsequent years.
Cement plants are mandated to meet GHG Emission Intensity reduction targets, creating a financial incentive for CCUS adoption and low-carbon cement production. The establishment of a domestic carbon market provides the critical price signal for high-CAPEX solutions such as CCUS. This creates a direct financial mandate for CCUS and low-carbon investment.

Hub-and-cluster infrastructure
Developing shared CCU infrastructure across cement clusters or hubs can lower capital intensity per plant. High-density cement regions such as Andhra Pradesh, Telangana, Gujarat and Rajasthan are under evaluation for hub-and-cluster carbon management models, in alignment with GCCA India’s recommendations.

Conclusion
Indian cement industry is entering a decisive decade of transformation. Through the 3Cs approach, the sector is not merely mirroring global practices but crafting a contextually tailored, India-specific roadmap to Net-Zero.
Near-term measures under Cut can be rapidly scaled, Cement innovations will drive material efficiency and cost competitiveness, and high-tech Carbon management will mitigate unavoidable and residual emissions. Success hinges on sustained policy continuity, financial incentives, functional carbon credit trading scheme, and close coordination among industry leaders, government agencies, and R&D institutions. The collective goal is to translate pilot projects into scalable business models that preserve competitiveness while achieving verifiable emission reductions and positioning India as a global benchmark in low-carbon cement manufacturing.

ABOUT THE AUTHOR:
Milind Khandan, Manager – Marketing, Vertex Market Research, comes with over five years of experience in market research, lead generation and team management.

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FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

Published

2 weeks ago

February 5, 2026

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FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

Concrete

Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

Published

2 weeks ago

February 2, 2026

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Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

Concrete

Steel: Shielded or Strengthened?

CW explores the impact of pro-steel policies on construction and infrastructure and identifies gaps that need to be addressed.

Published

2 weeks ago

January 31, 2026

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Going forward, domestic steel mills are targeting capacity expansion
of nearly 40 per cent through till FY31, adding 80-85 mt, translating
into an investment pipeline of $ 45-50 billion. So, Jhunjhunwala points
out that continuing the safeguard duty will be vital to prevent a surge
in imports and protect domestic prices from external shocks. While in
FY26, the industry operating profit per tonne is expected to hold at
around $ 108, similar to last year, the industry’s earnings must
meaningfully improve from hereon to sustain large-scale investments.
Else, domestic mills could experience a significant spike in industry
leverage levels over the medium term, increasing their vulnerability to
external macroeconomic shocks.(~$ 60/tonne) over the past one month,
compressing the import parity discount to ~$ 23-25/tonne from previous
highs of ~$ 70-90/tonne, adds Jhunjhunwala. With this, he says, “the
industry can expect high resistance to further steel price increases.”

Domestic HRC prices have increased by ~Rs 5,000/tonne
“Aggressive
capacity additions (~15 mt commissioned in FY25, with 5 mt more by
FY26) have created a supply overhang, temporarily outpacing demand
growth of ~11-12 mt,” he says…

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