- Version number
- Publication date
7 November 2022
- Suggested Citation
- Agora Industry, FutureCamp, Wuppertal Institut (2022): Carbon Contracts for transforming industry: Calculator for estimating the transformation costs of climate-friendly cement production. Model version 1.0, Berlin, 19.10.22
- This publication was produced within the framework of the project Carbon Contracts for the industrial transformation.
In addition to a range of decarbonisation strategies, particularly material efficiency and substitution in the entire value chain, the transformation of the cement industry from today's perspective requires the use of Carbon Capture and Storage (CCS) and Carbon Capture and Use (CCU) technologies for a greenhouse gas-neutral cement sector. These technologies can be used to separate and store or reuse the process-related emissions generated during cement clinker production. If CCS or CCU is used in combination with sustainable biomass (BECCS), then there is a possibility of overall negative emissions.
For transforming cement clinker production via a classic cement plant with a modern rotary kiln and calciner without CO2 separation, the Oxyfuel or the electrified LEILAC processes with CO2 separation are particularly suitable due to their high separation rates and cost efficiency. In both cases, an established CCS infrastructure is required. In order to stimulate these investments, the additional costs must be quantified and hedged by suitable policy instruments such as carbon contracts. The goal of the transformation cost calculator is to make an initial, qualified estimate of the additional costs of a climate-friendly cement clinker production via the Oxyfuel and E-LEILAC routes compared to the cement production with a classic cement plant. The overarching goals of the calculator are:
- The identification and general quantification of the main cost drivers for the transformation of a typical cement production based on the specific CO2 reduction costs.
- The definition of a tool that enables an initial assessment and discussion of specific projects, possibly as a first step in awarding carbon contracts.
- Creating a transparent basis for discussing the costs and benefits of transforming the cement industry and the overarching infrastructure.
- Creation of a basis for estimating the total investment and financing requirements for the transformation of the cement sector to climate neutrality.
This tool is intended to support the discussion and assessment of general transformation costs. While it is possible to use the tool to assess concrete projects (under the responsibility of the stakeholder), it cannot replace a specific investment analysis.