Enigin Update - Global Corporation Benefit from Energy Efficiency Self-Funding
HOLCIM Group, one of the world's leading suppliers of cement and aggregates, has set aside CHF100 million (Swiss Francs) each year to further improve energy efficiency across the Group.
This company are benefiting from financing many energy efficiency projects across its operations globally, countering rising energy prices, tough economic conditions, reduced CO2 footprint and now positive PR. It is a good example of the what can be achieved when improvements to energy efficiency are made.
The fund, started in 2010, is part of the Group's energy strategy and is financed by the proceeds from the sale of excess CO2 emissions certificates. With the various projects finance through this scheme, Holcim will save around 200,000 tonnes of CO2 annually which is approximately as much as the annual CO2-emissions of a small town with 30,000 inhabitants.
Concrete, a highly energy and CO2-efficient building material, globally is the second most consumed commodity by volume, after water, and vital to a functioning infrastructure. Production of the intermediate product cement is, however, energy-intensive – with thermal and electrical energy accounting for approximately 40 percent of the cost of production. In US dollar terms, energy costs have risen by around 8 percent per year over the last five years. In addition, CO2 emissions occur – 60 percent of which are caused by the chemical conversion of stone in the rotary kiln and 40 percent by the use of fossil fuels.
Because the European cement industry currently emits less CO2 than it is entitled to, large sums of money are raised each year from the sale of excess emissions certificates. The reasons for this excess are the sluggish European growth and the industry's endeavors to boost energy efficiency and reduce emissions. Holcim is leading in these areas in particular.
Holcim allocates these proceeds to a fund to promote energy efficiency – normally some CHF 100 million annually. With the clear objective: to save fossil fuels and boost energy efficiency, resulting in an improvement in our environmental footprint and a reduction in production costs; this is particularly important against the backdrop of rising global energy costs. The energy fund is an element in the Group's comprehensive strategy for countering these cost pressures.
Holcim has produced a list of criteria for the assessment of projects to be financed. The emphasis is on economic efficiency, the potential to reduce CO2 and the possibility of multiplying innovations speedily and successfully across the Group.
The creation of the Fund led to competition between the Group companies to produce the best project proposals, and sparked a whole series of new approaches for sustainable energy projects. 2010 saw funds earmarked for projects in Vietnam, India, Romania, Lebanon and Switzerland. These projects will be completed between the end of 2011 and 2013. Another six projects were approved this year. They include projects in Canada, Slovakia, Mexico, India, Germany and France.
Although most businesses do not have the resources or the opportunity to trade CO2 emissions like Holcim, by a lot less investment all businesses can start to save by turning to their local Enigin Distributor and Enigin plc's EnergyMaps programme.
Picture of a Holcim CementPlant supplied by Holcim Ltd.
