Innovations and Investments Driving Cement and Concrete Decarbonization

Cement and concrete may possibly be the most difficult subsector to decarbonize within Materials & Chemicals. Cement and concrete production are responsible for 7-8% of global CO₂ emissions and require approximately 3% of the global energy demand. Direct greenhouse gas emissions are primarily from the decarbonation of limestone itself (approximately 60%) and combustion of the fuels used in the cement kiln and other plant processes (approximately 40%).

Excitedly, investment in 2024 has taken off in comparison to previous years. Leading players like Fortera, Sublime Systems, Solidia, and Neustark, have attracted significant funding from VCs together with presale offtake agreements with incumbents and even grant funding, e.g., U.S. IRA. The top solutions are clinker cement substitution, alternative fuels, electrification, novel kiln processes, and even Carbon Capture, Utilization and Storage (CCUS). It's still in the early stage for play with few pilots coming online in the near-term. As shareholder pressure and consumer awareness grows, the demand for low-carbon cement is outpacing production capacity.