Cementir Holding will invest in natural gas to ensure significant carbon reduction in Denmark
The Danish subsidiary Aalborg Portland has recently signed an agreement with the Danish gas distribution company Evida and with an investment of DKK 40 million will be connected to the gas grid in 2022.
At first, natural gas will substitute coal and pet-coke in the production process and over time, a conversion to biogas will enable a carbon reduction of 800,000 tonnes. With this investment Cementir is taking a further important step towards achieving its 2030 carbon reduction goals.
As part of its strategy to ensure a carbon reduction of 30 per cent by 2030, Cementir has entered into an agreement with the state gas distribution company, Evida, to connect the Danish plant to the gas distribution grid on 1 April 2022.
With this agreement and an investment of DKK 40 million, the Group is ready to start the phase-out of fossil fuels such as coal and pet-coke in production in favour of low-fossil natural gas which has a 40 per cent lower carbon footprint and will ensure an estimated carbon reduction of 240,000 tonnes by 2030. The conversion to natural gas is an important step towards the use of carbon-neutral biogas, which over time can lead to CO2 reduction of 800,000 tonnes.
In fact by coal replacement with natural gas will reduce carbon footprint by 40 per cent while a conversion to biogas will reduce it by 100 per cent.
“Our goal is to lead the way and be a part of the solution in the green transition, firstly using natural gas and over time biogas. However, the conversion to biogas involves several challenges regarding sufficient supply and competitive prices. This transition will at least require certain changes to the regulatory framework as it is crucial that biogas not be subject to the same tariffs as natural gas, and that the use of biogas be included in the EU’s emissions trading system”, says Michael Lundgaard Thomsen, Director of Aalborg Portland.