Switch from Wet-to-Dry Process at Podilsky Cement

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Switch from Wet-to-Dry Process at Podilsky Cement

• A Joint Implementation Project

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CRH

• Founded in 1970 by merger of cement and concrete
  companies in Ireland.
• Over 3300 facilities in 28 countries.
• 20 cement plants in 12 countries
• 22 million ton capacity.
• 2006 Sales revenue was 18 737 million
• 2006 Profit before tax was 1 602 million
• Current market capitalisation is 17 billion
• CO2 footprint from cement making is 12 million
  tonnes CO2.

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Podilsky Cement

• Podilsky Cement operates close to the town of
  Kamyanets Podilsky in Khmelnitsky Oblast of
  Ukraine.
• A historical area with a growing tourist
  industry.
• Cement production started in 1971 using wet
  process technology.
• Peak capacity was 3.8 million tonnes cement.
• Current capacity is 2.5 million tonnes cement per
  annum.
• Employment at the plant is 1050.
• The company was privatised in 1994 with CRH
  becoming a shareholder in 1999

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Joint Implementation Project.

• To switch the process of cement making from wet
  to dry.
• Total project cost is estimated to 150 million
• Key Dates
• Initial Concept November 2004
• PIN December 2005
• PDD July 2006
• Determination September 2006
• Letter of Approval Ukraine December 2006
• Letter of Approval Ireland January 2007
• Registration March 2007
• Contracts with suppliers March 2007
• Plant Start up Autumn 2009
• Total lead time is 5 years.

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Concept

• CRH prepared a CO2 strategy which has led to our
  target of a 15 reduction in specific emissions
  on 1990 levels by 2015.
• Concepts considered
• Dilution of clinker in cement
• Use of Biomass
• Development of new products
• Replace high emitting and inefficient plants.
• Podilsky Cements kilns are high emitters but
  investment in Ukraine was not attractive due to
  low return on investments.
• The JI process offered an opportunity to bridge
  the gap between the project cost and acceptable
  returns.

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Benefits

• The key benefits from the project will be
• Estimation of CO2 emission reductions 3.03
  million tonnes
• Reduction in dust emissions from 150 to 10 g/sec.
• Continuation of production.
• 45 reduction in fuel consumption
• Implementation of modern technologies