Cement producerAfriSam launched a cement product yesterday with half the carbon intensity of the global average, attributing its achievement to a decade of environmental focus and substantial investment.
The carbon footprint of AfriSam Eco Building Cement stands at 453g a kilogram of cement produced, compared with a global average of 890g.
The company claims the strength of the cement has not been compromised.
AfriSam chief executive Stephen Olivier said the group had started the process of environmental reform “many years back when people weren’t thinking of this” because of the internal requirements of its former Swiss owner Holcim.
AfriSam was majority-owned by Holcim until 2007, when a R16.4 billion black economic empowerment deal transferred control of the group to the AfriSam Consortium and resulted in the South African company’s name changing from Holcim SA.
The Public Investment Corporation facilitated that deal, which had recently been criticised for exposing the Government Employees’ Pension Fund to concentrated risk.
Olivier said there had been “no single recipe” for cutting the carbon intensity of AfriSam’s cement, which dropped by about 34 percent between 1990 and 2006.
Rather, the reduction had come about as a result of a host of interventions, led by “substantial investment” to improve thermal efficiency consumption, most notably at the group’s Dudfield plant in North West, where about R350 million had been spent since 2003 on a major upgrade.
While certain components had to be replaced anyway, AfriSam used the opportunity to retrofit the plant’s entire system. “We could have done it ‘el cheapo’ and only spent say R100m, but we spent considerably more as a future investment,” Olivier said.
Cement producers generate about 60 percent of their carbon dioxide emissions from the chemical process involved in the calcination of limestone, and the remainder from burning fuels such as coal to heat cement kilns. Electricity consumption adds another 10 percent to emissions levels.
AfriSam launched a mark on its packaging last year that lists the carbon intensity of each of its products. About half of its cement is sold via retail outlets, while the other half is sold directly in bulk to building contractors.
The group has an estimated one-third share of the domestic cement market.
Olivier said the labelling initiative had not affected sales volumes, although there could be financial rewards in the future, particularly once a price was set on carbon.
“What we do see is that some groupings find it interesting… I’ve had e-mails from certain suppliers and customers who felt it’s quite nice,” he said, adding that bigger retailers were excited about the product and wanted more of it.
“In a subtle way, it will influence the industry in terms of how they behave, and they will catch up.”
Olivier said AfriSam’s green focus was a strong motivator for employees. “Our employees are proud to be associated with (green cement).”
He said cutting carbon emissions further would be more difficult to achieve, but AfriSam was working on “all kinds of tricks”, such as activating the fly ash in its product and reducing clinker content.
AfriSam says the cement industry is estimated to be responsible for about 5 percent of global carbon emissions, but South Africa’s proportion is about 1.6 percent due to coal’s dominance of the electricity mix.