Global CemFuels News

Australia: Adelaide Brighton boss Martin Brydon said that he would pursue funding from the Abbott Government's US$2.55bn Emissions Reduction Fund (ERF) as Adelaide Brighton accelerates its alternative fuel use to head off its rising gas bill. The ERF is the centre-piece of the government's direct action climate policy and the first auction for funding starts on 15 April 2015.

Adelaide Brighton has a total energy bill of around US$130m/yr. Brydon said that the group will save US$6m/yr from the repeal of the carbon tax. "We are energy-intensive and capital-intensive. Anything that happens that can reduce the cost of energy is critical," said Brydon.

Adelaide Brighton's Birkenhead cement plant in south Australia, which recently expanded its cement production capacity to 750,000t/yr, generates 15% of its energy from waste wood used in construction. Brydon said that he plans to take that number to 30% and that he 'will certainly' be bidding for grants from the ERF. "The cost of that waste wood energy is significantly below the cost of natural gas," said Brydon.

In 2014, Adelaide Brighton reported a 14.3% rise in net profit to US$136m and a 9% rise in revenue to US$1.06bn. The profit and revenue numbers were both records for the company, although after stripping out one-off items the underlying profit was US$132m. Strong residential housing activity in NSW and Queensland, work on the Pacific Highway upgrade and ongoing demand from resource projects in western Australia and the northern regions buoyed sales. Adelaide Brighton said that it expects price increases in 2015 across all of its products.

In August 2014 the company acquired two concrete businesses and a quarry. Brydon said that he is looking for other businesses to buy, but opportunities for quality long-term assets were 'few and far between.'

UK: SITA UK has completed the construction of its Solid Recovered Fuel (SRF) manufacturing plant at Malpass Farm in Rugby, Warwickshire. The plant will undergo a series of commissioning tests over the next few months before starting full-scale production of Climafuel SRF. This will be used to power the kiln at the adjacent Cemex UK Rugby cement plant.

The residual waste material arriving at the site will primarily be collected from commercial and industrial businesses across the region that would otherwise go to landfill. Once received on site any metals, plastics and paper will be extracted for recycling. Similarly, materials with a high chlorine content, which could damage the kiln, will also be extracted. Any residual waste material that is removed from the production process will be processed into refuse derived fuel (RDF) for use in waste-to-energy applications.

To produce the SRF, the remaining material is sifted, shredded and blended while being continuously analysed using infrared technology. This allows the plant operators to ensure that the fuel, which has a confetti-like consistency after processing, has the precise chemical composition and calorific value required by Cemex UK.

SITA UK's Head of Alternative Fuels, Andy Hill, said, "The residual waste material that will be delivered to this facility would have gone to landfill but, instead, we are going to take out anything that can be recycled and then turn what's left into a replacement fuel."

"We have been producing this fuel very successfully at our sister plant at Landor Street in Birmingham for the past couple of years, but this new facility implements the latest technology and will substantially increase our production capacity," continued Hill. "Between the two plants, we'll be producing around 250,000t/yr of Climafuel."

SITA UK is currently also investing in new SRF manufacturing facilities at the Port of Tilbury in Essex, which are currently under construction. SITA UK currently supplies SRF to CEMEX UK and to CEMEX Latvia.

Belarus: Belarusian manufacturers are expected to export 1.8Mt of cement in 2015, including 1.3Mt to be supplied to Russia's Eurocement, according to Construction minister Anatol Chorny. Belarus sold 980,000t of cement to Eurocement in 2014. Belarus' cement output is expected to total 6.1Mt in 2015, up from 5.8Mt in 2014.

"This year we have signed an exclusive contract for the supply of 1.3Mt," said Chorny. "The contract is advantageous to Belarus because 50% of the total amount shall be paid in advance and the rest shall be paid within 10 days of the delivery date. If the price of cement in the Russian market is lower than in Belarus, the Russian company will cover the losses. If the price will be higher, the difference will be equally divided." Belarus will also export cement to Russia's Kaliningrad exclave, Poland and Lithuania in 2015.

Belarus' AAT Krychawtsementnashyfer in Krychaw, Mahilyow, operated at a loss in 2013. This was caused by its old production plant, which still uses natural gas to manufacture cement. In contrast, the company's new production facility generated a profit of about Euro676,000 in 2014. To reduce the cost of cement production, Krychawtsementnashyfer installed a cement kiln fuelled by waste tyres in 2014 and plans to start using coal dust as a fuel in 2015, according to Chorny.

Lithuania: Finnish-owned Lithuanian recycling services company Kuusakoski saw its revenues grow by 21% year-on-year to Euro32.5m in 2014. Its annual profit doubled to approximately Euro0.29m.

The company's performance has improved amid changes in the scrap metal purchase market, in particular the bankruptcy of Liepajas Metalurgs in 2013 and the exit of one more company from the Lithuanian market in 2014, Paulius Juska, according to Kuusakoski CEO Verslo Zinios. In 2015, Kuusakoski expects the waste tyre collection business to fuel its growth.

"We hope that Akmenes Cementas will resume burning waste tyres at its cement plant this year. If that is the case, we could supply tyres to the facility. It would enable us to increase the quantities of tyres that we collect and to generate more revenues from car service centres for the collection of old tyres and their supply to the disposal facility," said Juska.

Colombia: Cementos Argos innovation vice-president Camilo Restrepo has persisted with a project to use waste tyres as an alternative fuel in Colombia. Some 120,000 - 130,000/yr tyres are wasted in Colombia.

Cementos Argos is already using waste tyres as fuel in the US and Honduras and says that the same will be done in Colombia. It put forward its plans to local associations and has been discussing these for five years. Cementos Argos could use 60,000 - 70,000t/yr. Its kilns will have to be adapted at cost of US$5 – 20m each. It will start with its unit in Rioclaro, where tests are underway already. The plant can use 15,000 - 20,000t/yr of waste tyres.