Page 64 - 2023 Sustainability Report
P. 64

ENVIRONMENTAL STEWARDSHIP



        Understanding the Impact of Blending                  Alternate Fuel Use
        and Fuel Choice
                                                              Similarly, not only is clinker substitution different around
        While we are proud of these achievements — and, in fact,  the world, but the reported numbers are being generated
        as discussed below, we have committed to further reduce  using different calculation methods. Our reported intensity
        the carbon intensity of our cement and Magnesia       is based upon the USEPA Clean Air Act Part 98 and the
        Specialties businesses — we also believe it is important to  data generated by our Continuous Emission Monitors
        recognize both critical regulatory differences between the  (CEMs) and reflects actual measured CO . If instead of this
                                                                                                2
        U.S. and the EU (and other international jurisdictions) and  method, we were simply to switch to the Global Cement
        differing calculation methodologies that result in    and Concrete Association (GCCA) calculation method, and
        meaningful differences in the makeup of corresponding  make no change to our actual clinker factor, our intensity
        end-products and reported emissions metrics. Those    would drop from 0.619 to 0.564.
        differences, in turn, make like-for-like comparisons of the
                                                              In addition, alternative fuel use by the cement industry
        emissions performance of such companies challenging.
                                                              in the United States averages only 15 percent of the fuel mix,
                                                              compared to 36 percent of the fuel mix used in the European
        Clinker Substitution and Blending
                                                              Union and as high as 60 percent in Germany. In large part,
                                                                                                   2
                                                              this is because combustion of secondary alternate fuels is
        For example, outside of the U.S., the allowable rate of
                                                              incentivized in the European Union, whereas in the U.S.
        “clinker substitution” — the replacement of ground clinker
                                                              environmental laws and USEPA regulations create hurdles to
        in cement with alternate materials such as pozzolan, slag
                                                              using these materials as fuel sources. Moreover, the
        and fly ash — is much higher than it is in the U.S. because
                                                              calculation of reportable CO emissions under international
                                                                                     2
        of the limitations imposed by ASTM and Department of
                                                              regulations differs materially from the calculation allowed
        Transportation (DOT) standards for cement. While our
                                                              under USEPA regulation. The European Union Gross CO 2
        clinker substitution rate (like other U.S. producers)
                                                              Emission rates exclude CO emissions from biogenic fuels
                                                                                   2
        generally does not exceed 20 percent, the average clinker
                                                              while the widely reported Net CO emission rates using the
                                                                                         2
        substitution rate for international cement companies is in
                                                              GCCA method as noted above do not include the biogenic or
        the range of 28 percent to 50 percent, depending on the
                                                              alternative fuel CO contributions. Again, if we used a
                                                                             2
        type of cement. Accordingly, even where their clinker
                      1
                                                              hypothetical 75% clinker factor and calculated our
        intensity (the amount of CO generated in producing a
                                2
                                                              emissions using the GCCA calculation method and our
        tonne of clinker) is comparable to our 2023 rate of 0.760
                                                              current fuel mix, we estimate that our carbon intensity
        gross metric tonnes of CO /metric tonnes of clinker (and in
                               2
                                                              would see a further reduction to approximately 0.519
        many cases is actually higher), international cement
                                                              net metric tonnes of CO /metric tonnes of cement
                                                                                   2
        companies can reduce the carbon intensity they publicly
                                                              equivalent basis.
        report by simply substituting higher percentages of non-
        clinker products for clinker in their end product, rather
        than actually reducing total emissions or improving
        efficiencies in the manufacturing process.
        In fact, if we used a hypothetical 75% clinker factor
        for our cements, we estimate our carbon intensity
        would be reduced from 0.619 to approximately 0.570
        gross metric tonnes of CO /metric tonnes of cement
                                 2
        equivalent.
        1  European cement standard EN 197-1 “Cement – Part 1: composition, specifications and conformity criteria for common cements”, as reported by CEMBUREAU.


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