9th October 2019

Jim Rushworth – Industrial Policy Director

THE ROLE OF INNOVATION IN THE CEMENT

2050 ROADMAP

DEEP DECARBONIZATION IN INDUSTRY

Today: 29 Members (27 full Members and

2 Associate Members)

Full Members = national cement

industry associations and cement

companies of the European Union

(with the exception of Malta and

Slovakia) plus Norway, Switzerland

and Turkey

Croatia and Serbia are Associate

Members of CEMBUREAU

Cooperation agreement with

Vassiliko Cement (Cyprus) and the

Ukrainian Cement Association

CEMBUREAU

THE EUROPEAN CEMENT ASSOCIATION

N

PL

CH

SFIN

UK

IRL

E

P I

F

BL

NLD

GRTR

A

CZ

ROH

EST

DKLV

SIHR

BG

LT

RS

CY

UKR

Raw material

transformation into clinker

in the rotary kilnGrinding of clinker and

mineral components

into cement

Preparation of raw

materials

CEMENT PRODUCTION LINE

SUSTAINABLE TRANSPORT RENEWABLE ENERGY THERMAL MASS

Quarries Clinker Cement Cement

(10%-15%)

Water

(15%-20%)

Aggregates

(65%-75%)

Concretelimestone

shale, iron,

silica

Clinker

gypsum

extenders

CEMENT & CONCRETE KEY ENABLERS FOR

THE LOW CARBON ECONOMY

2017 GLOBAL CEMENT PRODUCTION

BY REGION

WORLD CEMENT PRODUCTION 2017

BY REGION AND MAIN COUNTRIES %• Global cement production:

4.1 bn tonnes

• Construction markets grow

EU28: +1.7% (2016); + 2.7% (2017)

US: +1.1% (2016); 4.6% (2017)

• Cement consumption recoversEuroconstruct data: +1% (2016); +2.4% (2017); +3.5% (2018)

4.1 bn tonnes2.3 bn tonnes

80 million tonnes 280 million tonnes

175 million tonnes

EVOLUTION SINCE 2001 (2001 figures in red)

88 million tonnes

225 million tonnes 661 million tonnes

30 million tonnes 89 million tonnes 102 million tonnes

EVOLUTION OF GLOBAL CEMENT

PRODUCTION 2001 - 2017

CEMENT CONSUMPTION PER CAPITA:

WORLD OVERVIEW

• World (cement consumption kg/inhab.)

• Some consumers categorized by size (cement consumption kg/inhab.)

1913 1953 1993 2013 2014 2015 2016

25 68 232 557 553 574 565

Large Medium Small

Qatar 2950 Russia 436 Burundi 19

Saudi Arabia 1922 EU28 310 Rwanda 45

China 1705 (300 in 1993,

6 in 1953)

USA 287 Chad 57

India 208 (65 in 1993,

10 in 1953)

Source: ICR, Global Cement Report, 12th Edition, June 2017 & CEMBUREAU, World Cement Market in Figures, 1913-1995

EU CEMENT PRODUCTION TRENDS

Cement production (ktonnes)

CountryLatest data

provided2000 2007 2015 2016 2017

Austria 2017 3,776 5,207 4,726 4,961 5,130

Belgium 2017 7,510 7,498 7,401 7,661 8,148

Bulgaria 2017 1,923 4,324 2,080 1,969 2,107

Croatia 2017 2,751 3,588 2,359 2,359 2,608

Czech Republic 2017 4,044 4,876 3,900 3,951 4,056

Denmark 2017 1,955 2,112 2,000 2,255 2,318

Estonia 2016 329 936 395 412 412

Finland 2017 1,423 1,771 1,174 1,341 1,534

France 2017 19,249 22,074 15,597 15,934 16,851

Germany 2017 35,414 33,382 31,160 32,674 33,991

Greece 2017 14,530 14,286 5,322 6,543 6,187

Hungary 2012 3,351 3,485 1,277 1,277 1,277

Ireland 2017 2,620 4,800 2,911 3,676 3,518

Italy 2017 38,925 47,399 20,825 19,325 19,300

Latvia 2017 240 520 1,018 741 988

Lithuania 2017 573 1,096 980 1,010 1,023

Luxembourg 2017 750 907 1,033 1,073 1,179

Netherlands 2017 3,580 2,933 1,839 2,098 2,274

Poland 2015 15,096 16,797 15,657 15,657 15,657

Portugal 2017 10,343 9,242 5,545 4,074 3,789

Romania 2017 5,431 10,060 8,424 8,038 8,508

Slovenia 2017 1,252 1,507 544 558 654

Spain 2017 38,116 54,720 15,077 15,046 16,082

Sweden 2017 2,651 2,934 2,767 2,792 3,067

United Kingdom 2017 12,452 12,571 9,280 9,370 9,359

CEMBUREAU - EU28 228,284 269,025 163,291 164,795 170,018

Norway 2017 1,650 1,859 1,648 1,746 1,924

Serbia 2017 na na 1,654 1,801 1,908

Switzerland 2017 3,771 4,129 4,280 4,529 4,419

Turkey 2017 35,953 49,256 71,419 75,403 80,606

CEMBUREAU 269,658 324,269 242,292 248,274 258,875

Cyprus 2017 1,157 1,786 788 1,019 1,350

Malta 2017 0 0 0 0 0

Slovak Republic 2017 2,985 3,572 3,309 3,430 3,685

EU28 232,426 274,383 167,388 169,244 175,053

EU CEMENT CONSUMPTION TRENDS

Cement consumption (ktonnes)

CountryLatest data

provided2000 2007 2015 2016 2017

Austria 2017 4,495 5,741 5,123 5,389 5,542

Belgium 2017 6,125 5,954 6,403 6,211 6,148

Bulgaria 2017 1,455 4,252 2,205 2,205 2,126

Croatia 2014 73 3,063 1,307 1,307 1,307

Czech Republic 2017 3,610 5,147 3,665 3,808 4,016

Denmark 2017 1,562 1,861 1,508 1,508 1,759

Estonia 2016 246 659 383 434 434

Finland 2017 1,704 2,042 1,591 1,818 1,971

France 2017 20,633 24,670 17,170 17,429 18,120

Germany 2017 35,782 27,352 26,638 27,497 28,826

Greece 2016 9,073 11,034 2,397 2,397 2,370

Hungary 2013 3,562 4,000 2,255 2,255 2,255

Ireland 2017 3,155 4,806 1,355 1,764 1,972

Italy 2017 38,338 46,368 19,596 18,650 18,650

Latvia 2017 272 895 417 417 295

Lithuania 2017 429 1,050 736 736 877

Luxembourg 2016 532 591 465 457 457

Netherlands 2016 6,270 5,564 4,040 4,240 4,240

Poland 2015 14,360 16,762 15,732 15,732 15,732

Portugal 2017 11,110 7,823 2,745 2,641 2,995

Romania 2015 4,299 9,776 8,292 8,292 8,292

Slovenia 2017 1,106 1,612 743 813 811

Spain 2017 38,439 55,997 11,492 11,140 12,373

Sweden 2017 1,534 2,349 2,315 2,584 2,849

United Kingdom 2017 13,314 13,757 10,890 12,001 11,796

CEMBUREAU - EU28 221,478 263,125 149,464 151,726 156,213

Norway 2016 1,272 2,040 1,901 1,901 1,901

Serbia 2017 na na 1,786 1,925 2,012

Switzerland 2017 3,881 4,549 4,898 5,053 5,086

Turkey 2017 31,515 42,456 63,697 66,805 72,227

CEMBUREAU 258,146 312,170 221,746 227,410 237,439

Cyprus 2017 945 1,792 463 582 731

Malta 2017 224 393 305 300 350

Slovak Republic 2016 1,608 2,476 2,014 1,922 1,922

EU28 224,255 267,786 152,246 154,530 159,216

ROLE OF CEMENT & CONCRETE

IN SOCIETY

INFRASTRUCTURE

USD 3.3 trillion annual

investment needed

URBANIZATION

55% of citizens globally

live in urban areas;

66% by 2050

(adding 2.5 bn,

mainly in Asia/Africa)

CONCRETE

IS ESSENTIAL

- LOW CARBON PRODUCT

- ENERGY EFFICIENT

- CO2 EFFICIENT

- DURABLE

- SAFE & RESILIENT

CLINKER & CEMENT

PRODUCTION

AT START OF INNOVATIVE

SUPPLY CHAIN

- Alternative fuel use

- Novel cements

- Clinker substitution

- Breakthrough CCU

quarries raw materials fuels clinker & cement production

concrete in the built environment recycling end-of-life

CO2 and ENERGY INTENSIVE

LOW CARBON PRODUCT THAT CONTRIBUTES TO

CARBON NEUTRALITY ALONG THE VALUE CHAIN

TAKING RESPONSIBILITY ALONG

THE SUPPLY CHAIN

limestone

shale,

iron,

silica

For recovery of energy and recycling of materials

from waste, we need

- Landfill ban

- National barriers to be addressed

- Material recycling counting towards national

recycling targets

For breakthrough technologies

- Consistent and accessible public

financing / risk financing

For cement and concrete in the built environment

- Standards and building codes that combine

environmental, reliability and durability criteria

- A building life cycle approach

- Recognition of thermal mass and thermal energy storage

in energy efficiency and grid discussions

At the demolition phase

- Join up with the building sector to increase

recyclability of concrete at the end of life

- Recarbonation (concrete as a carbon sink)

A FACILITATING REGULATORY

FRAMEWORK

Overall

need for

CEMENT

CONCRETE

CARBONATION

46% alternative fuel use

replacing fossil fuels

Reducing clinker

to cement ratio

Carbon capture

& storage / useThermal mass of

concrete saves

CO2

CLINKER

CONSTRUCTION

Biodiversity /

responsible quarrying

Novel cements & low

CO2 binders

Admixtures to

optimise mix

constituents

Recyclability of

concrete

Life-cycle analysis

of the built

environment

Up to 25% of process

emissions can be

reabsorbed through

(re)carbonation

VALUE CHAIN APPROACH

“5 C APPROACH”

2050 ROADMAP FOR CEMENT SECTOR

- MtCO2

0

100

200

300

400

500

600

700

800

1990 2015 2017 2050 2050emissions emissions emissions

783 674 669

530 156

emissions emissions

-32%reduction using

conventional

technologies

-80%reduction using

breakthrough

technologies

Carbon capture technologies -374

Kg

CO

2/t

ce

me

nt

Dir

ec

t, in

dir

ec

t a

nd

tra

ns

po

rt e

mis

sio

ns

in

clu

de

d

Thermal efficiency -18

Alternative fuels -27

Clinker efficient cements -39

Transport efficiency -32

Carbon neutral electrical power -5

New binding materials -18

CO2 REDUCTION MEASURES:

2050 PERSPECTIVE

-15%Reduction

to date

FIVE PARALLEL ROUTES TOWARDS 2050

Technological Pathways to Reduce CO2

Electrification

of Production

ALTERNATIVE FUELS / CO-PROCESSING

46% thermal energy replacement

20.1 M t CO2 avoided/year

Dried sewage sludge, 3%

Animal meal, bone meal and

fat, 7%

Other biomass , 5%

Tyres, 11%

RDF including Plastics, 40%

Solvents, 6%

Impregnated saw dust, 2%

Mixed industrial

waste, 18%

Other fossil based wastes,

8%

BREAKDOWN OF ALTERNATIVE FUELS 2017

30%

16%

54%

THERMAL ENERGY CONSUMPTION BY FUEL TYPE for the year 2017

Alternative FosilFuels

Biomass

Conventional FossilFuels

CO-PROCESSING POTENTIAL &

ALTERNATIVE RAW MATERIALS

Substitution rate

36% (2012) 60%

(achievable)

95%

(feasible)

Volume waste 10M tonnes 18M tonnes 37M tonnes

Saved public investments 5 - 10 billion € 9 - 16 billion € >16 billion €

Avoided CO2 17M tonnes 26M tonnes 41M tonnes

Ecofys studies (analysing EU and national markets) carried out for CEMBUREAU do not identify technical impediments to take up AF use to

95%. Barriers are regulatory:

- Availability of waste materials/development of waste markets

- Permitting procedures

- Lack of landfill ban for recoverable/recyclable waste

- Market distortions: e.g. biomass subsidies in power generation

ECOFYS study taken up by EU

Commission in “Waste-to-energy”

communication

Satellite burner

Alternative Raw Materials

Bauxite residues

CLINKER SUBSTITUTES /

NOVEL CEMENTS

• Clinker substitution / lower carbon cements new binders /

novel cements product durability remains key▪ Transformation of cement and concrete production: continued efforts for CO2 emissions

reduction

▪ Most commonly used mineral additions to cement, fly ash and slag, becoming short of

supply new replacement materials and admixtures new recipes

▪ Niche applications early development development of cement types suitable for all

user segments

Limestone-calcined clay technology

Belite-Ye’elimite-Ferrite (BYF) class

of low-CO2 binders

Novel hydraulically active

calcium hydrosilicates

Less limestone, lower temperatures and less energy

Cement and concrete cured using CO2

Carbon reinforced concrete

CARBON CAPTURE & USE / STORAGE

OTHER INNOVATION PROJECTS

Forced carbonation of demolition waste

CCS through Calcium Looping

INNOVATION IN BUILDINGS

Building with thermal mass

reinforced steel

concrete

pipe grid

© Aichinger Hoch- und Tiefbau GmbH, Z+B

Building Component Activation

• To enable large scale innovation projects to proceed in Europe it is vital

that Energy Intensive Industries such as cement get access to R&D

funding

• To reach a carbon neutral society by 2050 it is necessary to complete

industry scale demonstration projects before 2030

• Initiatives such as the Innovation Fund, Horizon Europe and IPCEI

(Important Projects Common European Interest) are possible routes to

funding. Which would be supplemented with company investment and EIB

and/or funding through green funding mechanisms

• However to enable role out of these technologies, to ensure there is the

necessary CO2 pipeline infrastructure and sufficient supply of green

energy, significant investment will need to be made by the EU and MSs

FUNDING TO MOVE TO A CLIMATE

NEUTRAL SOCIETY IN 2050

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Thank you for your attention