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Content – The future of cement

1. HeidelbergCement – Our commitments for the future

2. The main factors influencing the future of the cement industry

3. Outlook 2025 – “Tomorrow”

4. Outlook 2030 – “The day after tomorrow”

5. Outlook 2050 – “Far far away…?”

6. Summary

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Outlook on AF in Cement Industry - Pasuki
Content

1. HeidelbergCement –
Our commitments for the future

2. The main factors influencing the


future of the cement industry

3. Outlook 2025 – “Tomorrow” Reducing our Environmental Footprint

4. Outlook 2030 – “The day after


tomorrow”

5. Outlook 2050 – “Far far away…?” Enabling the Circular Economy

6. Summary

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HeidelbergCement Sustainability Commitments
https://youtu.be/YSh7pGrXGc8
Reducing our Environmental Footprint

“We are committed to fulfilling our share of the global


responsibility to keep temperature rise below 2°C, and
we will continue to reduce our impacts on air, land and
water.”
Specific Net Emissions per Tonne of Cementitious
[kg CO2/t cem eq.]
750

700
Target for 2030:
We will reduce our
650 carbon footprint by
30% compared to
600
1990.
550

500
1990 2015 2016 2017 2018 2019 P2030

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Reducing our Environmental Footprint
“We conserve our natural reserves by continuously
increasing the use of alternative resources as
substitutes for natural raw materials.”

35

Target for 2030:


We will increase the
30
alternative fuels rate to
30%.
25

In 2019
20 HeidelbergCement
replaced approx.
3,4 Mt of coal by using
15
2015 2016 2017 2018 2019 P2030 waste derived fuels.
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10 measures to reduce the CO2 impact of cement

Efficient clinker production


Alternative fuels
Alternative raw materials

Clinker substitution
Concrete optimization
Limiting of the exposure class

Reduction of concrete in buildings


Reuse and recycling of concrete

Alternative binders

Carbon Capture and Storage/Utilization

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Summarizing HeidelbergCement’s roadmap and vision
on carbon-neutral concrete

Target of 30% Our goal is to realize


reduction of the the vision of carbon-
specific CO2 neutral concrete
emissions by 2030 latest by 2050.
confirmed by SBTi

2020 2030 2050


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Content

1. HeidelbergCement –
Our commitments for the future

2. The main factors influencing the “European Green Deal”


future of the cement industry

3. Outlook 2025 – “Tomorrow”

4. Outlook 2030 – “The day after “Climate Change”


tomorrow”

5. Outlook 2050 – “Far far away…?”


“Opposition to Co-processing in
cement kilns”
6. Summary

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Cement prodcution seen as a vaulable contributer in
the waste management chain
Strengths

Cement production
is an essential part
of Europe‘s circular
economy CO2 emission
reduction

Opportunities
Co-processing as Recognition of co-
a part of country processing as
sustainability recycling (“Basel”)
targets
Stepping out of
fossil energy

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Legislation and political background/actions

“New Circular Economy Action Plan - For a cleaner and more


competitive Europe”

Content will cover:

!  Production and Consumption


!  Measures and Legislation
!  Covering biomass, water, soil, plastics, textiles, construction and
buildings, electronics and mobility
!  Suggesting Actions

https://ec.europa.eu/environment/circular-economy/index_en.htm
https://ec.europa.eu/growth/industry/sustainability/circular-economy_en

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Ongoing campaigns to quit fossil fuels

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Ongoing campaigns to quit fossil fuels - Finance market reactions

13.12.2017 -
World Bank, ING, & AXA Announce Fossil Fuel Divestment Worth Billions
Lloyd's of London to divest from coal over climate change
Firm follows other big UK and European insurers by excluding coal companies from 1 April 2018
24.07.2018 -
Nippon Life Insurance will become first major Japanese institutional investor to ditch coal
21 February 2018 -
Generali approves climate change strategy. It will divest € 2 billion from coal…
14 March 2019 -
BNP Paribas fund arm plans €1bn coal divestment - French asset manager is latest
company to reduce fossil fuel exposure
Lloyd's of London to divest from coal over climate change
Firm follows other big UK and European insurers by excluding coal companies from 1 April 2018

Funds managing $2 trillion urge cement makers to act on climate impact


By Matthew Green, 22 July 2019, LONDON (Reuters)

European funds managing $2 trillion in assets called on cement companies to slash their greenhouse gas emissions on
Monday, warning that a failure to do so could put their business models at risk. […]
“The cement sector needs to dramatically reduce the contribution it makes to climate change,” […]

The group said investors had written to cement or construction materials companies including Ireland’s CRH, Franco-Swiss
group LafargeHolcim and France’s St Gobain to demand they achieve net zero carbon emissions by 2050. They also noted
that Germany’s HeidelbergCement had already adopted the target.

The funds urged all cement companies to align themselves with the 2015 Paris agreement to combat global warming, engage
with policy-makers to ensure an orderly transition to a low carbon economy, and increase their reporting of climate risk. […]

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Finance market reactions

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Cement production seen as a valuable contributor in
the waste management chain… and as a threat
Strengths Weaknesses
Waste imports
Cement production Getting permits
and exports
is an essential part to use AF
of Europe‘s circular CO2 emission
economy Investments AF
reduction equipment

Opportunities Threats
Co-processing as a Recognition of co- Cement imports
part of country processing as cheaper than
sustainability recycling (“Basel”) cement produced
targets in Europe Huge investments
Stepping out of (CCS&CCU)
fossil energy

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Questions from Members of the European Parliament to
the EC about Co-processing

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http://www.europarl.europa.eu/plenary/en/parliamentary-questions.html#sidesForm
Anti Co-processing activities

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Our Commitment:

We as HeidelbergCement are always open and transparent


about our actions and we are working together with NGOs
and neighbors on all levels to ensure a proper
communication.

!  Yearly Sustainability Reports


!  Blogs
!  Twitter
!  Facebook
!  Etc.

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…and we need to try even harder

https://www.rnz.de/wirtschaft/wirtschaft-regional_artikel,-kritik-an-
heidelbergcement-blumenwiesen-statt-betonwuesten-_arid,499626.html
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Content

1. HeidelbergCement –
Our commitments for the future

2. The main factors influencing the


future of the cement industry

3. Outlook 2025 – “Tomorrow” 2020 2025 2030 2035 2040 2045 2050

4. Outlook 2030 – “The day after


tomorrow” “Increase in Alternative Fuels Usage –
Step one”
5. Outlook 2050 – “Far far away…?”

6. Summary

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European Cement Industry – Key figures

Thermal energy from Alternative Fuels in the Cement


sector in the EU-28

50 14
Thermal Energy from Alternative Fuels [%]

45

Amount of Alternative Fuels [Mt]


12
40
35 10

30
8
25
6
20
15 4
10
2
5
0 0
1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Thermal Substitution Rate Amount of Alternative Fuels

Source: Cement Sustainable Initiative (CSI)


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CO2-Emissions: Reduction potential in gloabl cement
production

(IEA Ref. Technology Scenario)

(2 degree Celsius Scenario)

International Energy Agency – IEA and Cement Sustainability Initiative – CSI,


“Technology Roadmap - Low-Carbon Transition in the Cement Industry”, 2018

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AF-rate/fuel switch potential: global cement industry

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CO2-reduction potential in figures – today‘s status vs.
2050 vision, e.g. Germany and Austria

Germany Austria
2018 2018
33.7 5.2
0.73 0.69
3.92 3.88
110.9 113
67.5 81.2
0 0

VDZ, Zahlen und Daten 2019, Berichtsjahr 2018


VÖZ, „Emissionen aus Anlagen der österreichischen Zementindustrie“, Berichtsjahr 2018

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Alternative fuels development 2012 - 2018

VÖZ, „Emissionen aus Anlagen der österreichischen Zementindustrie“, Berichtsjahr 2017


VDZ, Umweltdaten 2017

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Alternative fuels development 2012 - 2018

VÖZ, „Emissionen aus Anlagen der österreichischen Zementindustrie“, Berichtsjahr 2017


VDZ, Umweltdaten 2017
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Content

1. HeidelbergCement – Our
commitments for the future

2. The main factors influencing the


future of the cement industry

3. Outlook 2025 – “Tomorrow” 2020 2025 2030 2035 2040 2045 2050

4. Outlook 2030 – “The day after


tomorrow” “Increase in Alternative Fuels Usage –
Step two”
5. Outlook 2050 – “Far far away…?”

6. Summary

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CO2-Emissions: Reduction potential in global cement
production

(IEA Ref. Technology Scenario)

(2 degree Celsius Scenario)

International Energy Agency – IEA and Cement Sustainability Initiative – CSI,


“Technology Roadmap - Low-Carbon Transition in the Cement Industry”, 2018

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Prognosis – Ecofys study/Cembureau

Ecofys/Cembureau: Status and prospects of coprocessing of waste in EU cement plants – excecutive summary

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Content

1.  HeidelbergCement – Our


commitments for the future

2. The main factors influencing the


?
future of the cement industry

3. Outlook 2025 – “Tomorrow” 2020 2025 2030 2035 2040 2045 2050

“Increase in Alternative Fuels Usage –


4. Outlook 2030 – “The day after Step three”
tomorrow”

5. Outlook 2050 – “Far far away…?”

“Reading the crystal ball”


6. Summary

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CO2-Emissions: Reduction potential in global cement
production

(IEA Ref. Technology Scenario)

(2 degree Celsius Scenario)

International Energy Agency – IEA and Cement Sustainability Initiative – CSI,


“Technology Roadmap - Low-Carbon Transition in the Cement Industry”, 2018

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Outlook on AF in Cement Industry - Pasuki
What will be the role of…
!  Fossil fuels?
Not anymore in cement production:
Solar heated cement kilns, electrification, Oxyfuel technology,
hydrogen, etc. in combination with AF
!  Alternative fuels?
For sure in plants/countries where the role of the cement plant as part
of the circular economy is defined
Biomass will be increased where possible
!  Waste imports/exports?
Minor role or even disappearing
!  Cement?
Will remain the strongest binding material for buildings and
infrastructure, however produced with New Technologies reducing the
carbon foot print
New regulations on building houses and infrastructure awaited

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All this has already lead to the implementation of projects and
actions:

Short and mid term actions:


!  Process optimization, including energy reduction in clinker and
cement production
!  Reuse of waste heat
!  Increased use of cementitious materials to substitute clinker in
cement (with high risk in losing sources in Europe)
!  Recycling of concrete
!  Increased use of alternative fuels and raw materials (R15!)

Long term projects:


!  Developing low energy clinker and/or cement
!  New production methods without using fossil fuels
!  Capture and Storage/Utilization of CO2

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The vision for 2050

Super efficient cement clinker production line

+
AF and biomass

+
Carbon Capture and storage or preferably utilization
equipment

=
CO2 neutral clinker cement line

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Content

1. HeidelbergCement – Our
commitments for the future

2. The main factors influencing the


future of the cement industry

3. Outlook 2025 – “Tomorrow”

4. Outlook 2030 – “The day after


tomorrow”

5. Outlook 2050 – “Far far away…?”

6. Summary

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Summary
AF rate
CO2 reduction
projects along the
full production and
usage chain

Innovative projects:
production
technology,
CCS and CCU

Zero CO2
emission cement
production

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Contact:
Newly modernized Cement Plant Sussan Pasuki
Burglengenfeld, Bavaria, Germany Senior Alternative Fuels Manager
HeidelbergCement AG
sussan.pasuki@heidelbergcement.com
www.heidelbergcement.com

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