• The production costs for LC3 can be up to 25 per cent lower than for

OPC due to savings from energy and material.

• Where clinker has to be imported, the savings can be even greater.
• Last but not least, LC3 technology is readily available and can be
commercialized
• About 75 per cent of cement plants worldwide can produce LC3 with
slight adjustments in their production lines and with their current
infrastructure and abundantly available materials.
• No special training is required, and conversion to LC3 production can be
combined with other de-carbonisation technologies, available or in
development
• In Africa, growing demand, the high costs of imported clinker and the
wide availability of raw materials are giving rise to many LC3 projects
and initiatives.
• The production costs for LC3 can be up to 25 per cent lower than for
OPC due to savings from energy and material.
• Where clinker has to be imported, the savings can be even greater.
• Last but not least, LC3 technology is readily available and can be
commercialized
• About 75 per cent of cement plants worldwide can produce LC3 with
slight adjustments in their production lines and with their current
infrastructure and abundantly available materials.
• No special training is required, and conversion to LC3 production can be
combined with other de-carbonisation technologies, available or in
development
• In Africa, growing demand, the high costs of imported clinker and the
wide availability of raw materials are giving rise to many LC3 projects
and initiatives.
 Financial statement extract for the year ended December 2022
For one of top cement producers in Sub Saharan Africa

Description Amount in USD

Revenue 3,484,010.76
Cost of production 1,427,104.41
Gross profit 2,056,906.35
Administrative expenses 171,967.71
Selling & distribution expenses 635,595.26
Profit from operating activities before tax 1,249,343.38
Tax 374,803.01
Profit after tax 874,540.37
   
Total asset invested 3,427,758.88
 Financial extract if LC3 is produced
Description Amount in USD

Revenue 3,484,010.76

Cost of production 1,070,327.70

Gross profit
2,413,683.06
Administrative expenses
171,967.71
Selling & distribution expenses 635,595.26

Profit from operating activities before tax 1,606,120.09

Tax
481,836.03
Profit after tax
1,124,284.06
   
Total asset invested 3,427,758.88
Investment appraisal for OPC & LC3 production
Investment appraisal OPC production Investment appraisal LC3 production
NPV 153,824.81 NPV 1,176,619.62
IRR  11.67%  IRR  19.95%
PAYBACK PERIOD 4.9 years Payback period 3.7 years

       
       
 Sensitivity Analysis at 10%
OPC PRODUCTION
  PRODUCTION COST ADMIN EXPENSES SELLING EXPENSES
NPV (255,293.11) 104,525.61 (28,385.79)
IRR 6.87% 11.15% 9.67%
Payback period   4.10 years  
       
LC3 PRODUCTION
NPV 869,781.18 1,127,320.41 994,409.01
IRR 17.88% 19.64% 18.76%
Payback period 3.10 years 3.7 years 3.8 years
       
 Grinding Plant Financial statement extract
Description Amount in USD
Revenue 19,185.61
Cost of production 7,866.10
Gross profit 11,319.51
Administrative expenses 946.98
Selling & distribution expenses 3,500.10
Profit from operating activities before 6,872.43
tax
Tax 2,061.73
Profit after tax 4,810.70
   
Total asset invested 26,839.61
 Investment appraisal for OPC & LC3 production
Investment appraisal OPC production Investment appraisal LC3 production

NPV 6,256.64 NPV 15,732.52

IRR 14.34% IRR 18.46%

PAYBACK PERIOD 7.7 years Payback period 5.6 years

 Sensitivity Analysis at 10%
OPC PRODUCTION
  PRODUCTION ADMIN EXPENSES SELLING EXPENSES
COST
NPV 2,466.28 5,794.40 4,574.09
IRR 11.93% 14.07% 13.34%
Payback period   7.8 years 8.08 years
       
LC3 PRODUCTION
NPV 12,889.75 15,270.28 14,049.97
IRR 17.44% 18.31% 17.88%
Payback period 6 years 5.7 years 5.9 years