Demand For Low-Carbon Cement Is On The Rise

Because the cement sector is responsible for 7% of global anthropogenic CO2 emissions, lowering the carbon footprint of concrete will be essential for meeting global net-zero targets.

But there is a big problem: technologies for cement decarbonization raise cement production costs, and there has historically been little appetite to pay a green premium in the low-margin cement sector.

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In the IDTechEx report "Decarbonization of Cement 2025-2035: Technologies, Market Forecasts, and Players," many emerging cement decarbonization technologies such as electrification for kilns/calciners and new cement alternatives are analyzed, but the success of these technologies depends on increasing demand for low-carbon cement.

The cement sector is difficult to decarbonize for many reasons.

Stimulating demand for low-carbon cement - Public sector

Governments generally have the biggest role to play in global decarbonization as they strive to reach net-zero targets.

A cement-specific approach to government intervention can be taken, with one example being China's National Development and Reform Commission plan to cap clinker production, improve thermal efficiency, and increase the use of alternative fuels by implementing incentives and giving financial support to cement plants.

The European Union includes cement decarbonization in regulations covering several industries, such as the Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM).

Another European Union mechanism is the Innovation Fund, which reinvests money from the ETS. So far, over a US$1 billion has been allocated to cement sector carbon capture projects in Europe from this fund.

Many innovative carbon capture approaches will be demonstrated within the cement sector, including oxyfuel combustion and hybrid pressure-swing adsorption with cryogenic distillation. Key technology providers for these projects include Air Liquide, Linde, and Thyssenkrupp. Green public procurement is a powerful tool available to all governments.

For infrastructure projects, governments buy massive amounts of cement. Public procurement is estimated to be responsible for a quarter of global construction revenue.

At COP28 in December 2023, the governments of Canada, Germany, the United Kingdom, and the United States pledged to adopt timebound commitments to procure low-emission steel, cement, and concrete.

The United States government has deployed over US$4 billion from the Inflation Reduction Act to procure low-embodied carbon concrete, asphalt, glass, and steel for federal buildings as part of Biden's Federal Buy Clean Initiative. At a state level, New York has committed to reduce the CO2 emissions from concrete used in the state's infrastructure projects by 30% by 2028.

Stimulating demand for low-carbon cement - Private sector

In the private sector, businesses are increasingly becoming active in the low-carbon cement space. Securing deals with emerging low-carbon cement players generates positive press and can help future-proof operations. The AI boom has highlighted the carbon footprints of data centers, sparking demand for low-carbon cement.

This is particularly topical for major data center players. For instance, low-carbon cement solutions are part of many efforts to decarbonize data centers.

Meta announced a partnership with CO2-derived concrete company CarbonBuilt, AWS invested in calcium silicate cement start-up Brimstone, and Microsoft signed a Memorandum of Understanding with electrochemical cement player Sublime Systems. However, supply chains for low-carbon cement are currently underdeveloped.

There is often a mismatch between where green cement suppliers and end-consumers are located. Moreover, voluntary demand may be on a project-by-project basis and lack consistent volume, making long-term certainty difficult for emerging green cement players.

Taking inspiration from the power sector, there are now efforts to develop a "book and claim" system for low-carbon cement. This system allows the positive environmental attributes of low-carbon cement to be purchased even if used elsewhere.

Outlook

Global demand for low-carbon cement is increasing. Government regulation for low-carbon cement production is strongest in the European Union, and the US government has been particularly active in green public procurement. Private sector demand is growing, and innovations like book and claim systems could accelerate this trend.

To find out more about this report, including downloadable sample pages, please visit www.IDTechEx.com/Cement. For the full portfolio of decarbonization market research available from IDTechEx, please see www.IDTechEx.com/Research/Energy.

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