In brief
The cement industry is an energy intensive sector that uses both electrical energy and thermal energy. Thermal energy is provided by fossil fuels and alternative fuels, with the alternative fuel rate in the EU27 cement industry reaching 53% in 2021. The ambition for 2030, based on the updated CEMBUREAU 2050 Net Zero Roadmap, is to reach 60% for alternative fuels, with the ultimate goal of reaching 95% by 2050. Please see our section on Circular Economy for more information.
Electrical energy is provided by power producers, with the increasing use of renewable energy sources leading to decreasing indirect emissions for power consumption by the cement industry. However, the decarbonization of the industry is associated with at least a doubling of electrical energy consumption, requiring much more renewable electrical energy. The access of significant quantities of zero carbon electricity at a reasonable price is therefore critical for the decarbonisation of the sector.
Our view
As the EU’s carbon neutrality objective will necessitate significant amounts of renewable energy, it is essential to get the key parameters of the European energy market right. Topics like market design, permitting or infrastructure play a pivotal role.