Egypt: A report by the International Finance Corporation (IFC) has said that increased use of alternative fuels in the cement industry could save up to US$51m/yr by 2025. The study ‘Unlocking Value: Alternative Fuels for Egypt’s Cement Industry’ assessed the potential for producers to increase the use of alternative fuels and recommend sustainable market solutions. Those alternative fuels include municipal solid waste, agricultural waste, sewage, and old tyres. By 2025, the study suggests, alternative fuels could replace about 1.9Mt of coal and prevent the release of 3.9Mt of CO2.
“Egypt is executing a wide array of initiatives to provide new sources of energy,” said Ramon Piza, president of Cemex Egypt. “We believe that all sectors, public and private, should collaborate and join forces to facilitate the usage of alternative fuel to further support these initiatives and help reduce greenhouse gas emissions.”
The study found that the country produces enough alternative fuels to power the entire cement sector. It included a mapping tool that pinpoints the location of cement plants, sources of alternative fuels, and transport links. However, it found that several obstacles prevent cement producers from using alternative fuels, including the lack of a well-established supply chain that would collect, process, and deliver waste to cement plants. The report recommends that market players must come to clear and fair commercial and quality arrangements ensuring a secure supply and return on investment, a fair pricing mechanism, and regulatory improvements to increase waste collection and treatment efficiency.
The report was supported by the governments of Denmark and Italy, the Korea Green Growth Trust Fund, and the Earth Fund Platform. It is part of a larger effort by the IFC to combat climate change, improve waste management, and support the global cement industry. The IFC has invested $4bn in 180 projects in the cement sector during the last 55 years. IFC’s current cement portfolio includes 30 investments and 10 advisory projects.
