Afternoon presentation

1. 1
IEA-CSI Technology Roadmap:
Low-carbon Transition in the Cement Industry
Online launch: Friday, 6 April 2018
International Energy Agency
Cement Sustainability Initiative
World Business Council for Sustainable Development

2. 2
Agenda
Afternoon session
17h30 - 17h40
Opening
Alvaro Lorenz, WBCSD-CSI Vice Chair LD
Cecilia Tam, IEA Senior Energy Analyst
17h40 - 18h05
Cement Roadmap: technical analysis
Araceli Fernandez, IEA
Manuela Ojan, HeidelbergCement Group, WBCSD-CSI
18h05 - 18h10
Cement Roadmap: policy, finance and international collaboration
Alvaro Lorenz, WBCSD-CSI Vice Chair LD
18h10 - 18h30 Moderated Q&A
18h30 - 18h35
The way forward
Philippe Fonta, Managing Director, WBCSD-CSI

3. 3
24 member companies around the world
Operating in more than 100 countries; accounting for about one-third of global cement production
About the CSI

4. 4
WorldBusiness
Council for
Sustainable
Development
Our mission is to
accelerate the transition
to a sustainable world by
making moresustainable
business more successful.
Our vision is tocreate a
world where more than
nine billion people are all
living well and within the
boundaries of ourplanet,
by2050.
WBCSD is a global, CEO-led organization of 200 forward thinking businesses working together to
accelerate the transition to a sustainableworld.
GLOBAL
Our 200 members spanacross the globe and all
economic sectors.
We also work with 60+ Global Network
partners whoengage with sustainable business
at a nationallevel.
UNIQUE PLATFORM
Our members enjoy access to a sustainable
business community and a safe space to
exchange ideas and information with their peers.
Together, we develop business solutions that no
single company could achieve alone.
MARKET-DRIVEN
We put business at the center of sustainable
development.
CEO-LED
WBCSD is oriented towards and led by our
member-company CEOs.
About the WBCSD

5. 5
• Global urbanization leading to increasing demand for
cement and concrete
• Need for significant reduction of direct CO2 emissions from
the global cement manufacture
• CSI members have long been taking action to reduce CO2
emissions
• Continued collaboration with other stakeholders to
accelerate the sustainable transition
Turning challenges into opportunities

6. 6
Our mission is to ensure reliable, affordable and clean energy
for our 30 member countries and beyond.
ENERGY SECURITY
ECONOMIC
DEVELOPMENT
ENVIRONMENTAL
AWARENESS
ENGAGEMENT
WORLDWIDE
www.iea.org
The International Energy Agency
© OECD/IEA 2018

7. 7
IEA: the global clean energy hub
The IEA works around the world to support accelerated clean energy transitions that are enabled by real-
world SOLUTIONS, supported by ANALYSIS, and built on DATA
This map is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries, and to the name of any territory, city or area.
© OECD/IEA 2018

8. 8
• Since 2009, 22 Technology Roadmaps and How2Guides (33 publications)
IEA Technology Roadmaps
2011 2012 2013 2014 20152009 2010 2016 2017
© OECD/IEA 2018
• Re-endorsed at G7 Energy Ministerial Meetings in
2016 (Japan) and 2017 (Italy) “(G7 Ministers)
welcomed the progress report on the Second Phase of
IEA’s Technology Roadmaps, focused on viable and
high impact technologies”

9. 9
IEA-CSI: a long-standing collaboration
2009
GLOBAL
Roadmap
NATIONAL
Roadmaps
INDIA
2013
2018
Engaging local
stakeholders and
financing bodies
• Confederation of Indian
Industry
• National Council for Cement
and Building Materials
• International Finance
Corporation

10. 10
The Cement Technology Roadmap process
Developing an implementable long-term sustainable vision for the cement sector
Energy and CO2 emissions
related data collection
(CSI database, local data)
(energy, materials
availability, costs, etc.)
Analysis and modelling,
(building on long-term
least-cost scenarios)
Technology papers
(improvement potential and
costs)
Stakeholders review
(authorities, academia, trade
associations)

11. 11
CSI ECRA
Technology Papers 2009
CSI ECRA
Technology Papers 2017
IEA 2017
ETP modelling
• Roadmaps
• …
33 technologies 52 technologies
www.wbcsdcement.org/technology
• New papers (…), amendments
• Major updates
• Reference to 2014 data
Applications
• CO2
• Energy
Refinement on WHR
Pre-treatment of fuels
Energy efficiency and management
Optimized grinding technologies
New binding materials
Carbon capture and use (CCU)
CSI ECRA Technology Papers developed as
scientific reference

12. 12
61%13%
9%
2% 3%
13%
Coal Oil
Gas Biomass
Waste Electricity
37%
63%
Energy-related CO2 Process CO2
Opportunities and challenges in the
cement sector Global cement sector indicators, 2014
Final energy use
(3rd industrial energy user)
(2nd industrial coal use)
Direct CO2 emissions
(2nd industrial CO2 emitter)
(1st industrial process CO2 emitter)
Estimated average cement
composition
(Reliance on industrial by-products)
Reference: IEA-CSI, 2018.
65%
13%
6%
8%
2%
5%
Clinker Blast furnace & steel slag
Fly ash Limestone
Natural pozzolana Gypsum
Calcined clay

13. 13
Cement production by region
Strong growth in cement production growth in Asian countries compensates for the decline in Chinese cement
sector activity, but the region still loses 10% of its global production share by 2050.
0
1 000
2 000
3 000
4 000
5 000
6 000
2014 2020 2025 2030 2035 2040 2045 2050
Mtcement/yr
Africa
Middle East
Eurasia
Europe
America
Other Asia Pacific
India
China
World high-variability case
World low-variability case
Reference: IEA-CSI, 2018.

14. 14
Strategies to reduce CO2 emissions from
cement production
CARBON
EMISSIONS
REDUCTION
IN CEMENT
Energy
efficiency
Reducing
clinker-to-
cement
ratio
Innovative
technologies
Switching
to
alternative
fuels
Carbon emissions reduction levers can influence
the potential for emissions reductions of other
options.
The equivalent of almost 90% of today’s direct global
industrial CO2 emissions are cumulatively avoided
from cement production in the 2DS compared to RTS.
1 500
1 700
1 900
2 100
2 300
2 500
2014 2020 2025 2030 2035 2040 2045 2050
Thermal energy efficiency
(3%)
Fuel switching (12%)
Reduction of clinker to
cement ratio (37%)
Innovative technologies
(incl. carbon capture)
(48%)
2DS
RTS
Direct CO2 emissions from global cement production (Mt/yr)
Reference: IEA-CSI, 2018.

15. 15
The role of energy efficiency
Energy efficiency levels reach best performing levels by 2050 but savings are offset by additional energy
demand from implementing other carbon mitigation levers.
Global average thermal energy intensity of clinker Global average electric intensity of cement
© OECD/IEA 2018
Reference: IEA-CSI, 2018.

16. 16
0.0
0.2
0.4
0.6
0.8
1.0
2014 2DS 2030 2DS 2040 2DS 2050 2DS 2030 2DS 2040 2DS 2050
Low-variability case High-variability case
Waste
Biomass
Gas
Oil
Coal
The role of alternative fuels
Greater use of waste and biomass reduces the share of fossil fuels in cement thermal energy demand by 27%
in average in the 2DS by 2050. The direct energy-related CO2 intensity of cement decreases by 34%.
Global thermal energy mix in cement
Reference: IEA-CSI, 2018.

17. 17
65%
13%
6%
8%
2%
5%
2014
Clinker Blast furnace & steel slag Fly ash Limestone Natural pozzolana Gypsum Calcined clay
60%
7%
1%
18%
2%
4%
8%
2050 2DS
Can we solve the challenge of process CO2
emissions from cement production?
The increased use of emerging cement constituents instead of clinker and greater market penetration of
blended cements reduce the global clinker to cement ratio to 0.60 by 2050 in the 2DS.
Global average estimates of cement
composition
Reference: IEA-CSI, 2018. © OECD/IEA 2018

18. 18
Innovations creating low carbon solutions
• High performance cements and concretes resulting in the reduction of CO2
• Impact of very high / very low lime saturation factor
• Further reduction of clinker content in cement by:
o Use of granulated blast furnace slag (GBFS)
o Use of fly ash
o Use of natural pozzolanas
o Use of calcined clays
o Use of other materials
Use of calcined clay
Reference: CSI ECRA Technology Paper 2017
Calcined clay,
natural pozzolana:

19. 19
Alternative binding materials offer further CO2
reduction potentials
0
100
200
300
400
500
600
PC clinker Belite clinker CSA clinker BCSA clinker CACS clinker MOMS clinker Alkali-activated
binders
kgprocessCO2/tbindingmaterial
Potential comparative
process CO2 savings
Process CO2 intensity
Commercial
Demonstration-pilot phase
R&D phase
Limitations to further deployment:
• Raw materials & operational costs
• Limited market applicability & standards
• Further R&D needed in some cases
Reference: IEA-CSI, 2018; adapted from Quillin, 2010; UNEP, 2016; Gartner and Sui, 2017.

20. 20
The role of carbon capture
Between 25% and 29% of total generated direct CO2 emissions in cement are captured annually in 2050
globally in the 2DS.
Reference: IEA-CSI, 2018.
0%
20%
40%
60%
80%
100%
0
100
200
300
400
500
600
700
800
2014 2020 2025 2030 2035 2040 2045 2050
CapturedMtCO2/yr
Full oxy-fuel
Partial oxy-fuel
Post-combustion
Captured CO2 - Low-variability case
Captured CO2 - High-variability case
Captured CO2 share of generated CO2
- Low-variability case
Captured CO2 share of generated CO2
- High-variability case
Global deployment of carbon capture in the cement sector in the 2DS

21. 21
Scaling up carbon capture
Oxyfuel technology
Reference: CSI ECRA Technology Paper 2017

22. 22
Roadmap milestones
From a sectoral approach…
… to a systemic perspective
Energy efficiency
Switching to alternative fuels and raw materials
Reduction of the clinker-to-cement ratio
Emerging and innovative technologies
Alternative binding materials
Transitioning to a low-carbon built environment

23. 23
Key collaborative actions to 2030 & beyond
Governments and industry must collaborate to accelerate the
sustainable transition by:
• Creating an enabling, level playing field
• Putting technological change into action
• Facilitating uptake of sustainable products

24. 24
Investment requirements and financial support
Realising the RTS would require between USD 107 and 127 billion global additional cumulative investments
by 2050 compared to the status quo. Achieving the 2DS would require increasing those investments by
between USD 176 and 244 billion cumulatively.
0
100
200
300
400
500
600
700
800
900
No action Additional
investments
RTS Additional
investments
2DS - Roadmap
vision
USDbillion
Net additional cumulative
investments high-bound
cost
Net additional cumulative
investments low-bound
cost
Overall cumulative
investment
Overall cumulative investments by scenario (2015-2050)
Reference: IEA-CSI, 2018.

25. 25
Moderated Q & A
www.wbcsdcement.org/technology
www.iea.org/publications/freepublications/publication/TechnologyRoadmapLow
CarbonTransitionintheCementIndustry.pdf

26. 26
The way forward
• Adopt a whole life-cycle approach and work collaboratively along the
whole construction value chain
• Mobilize public-private investment to support the sustainable transition
of the cement industry
• Leverage international collaboration to support the 2DS vision

27. 27
Thank you for your attention.
www.wbcsdcement.org/technology
www.iea.org/publications/freepublications/publicati
on/TechnologyRoadmapLowCarbonTransitionintheCe
mentIndustry.pdf

28. 28
References and notes
Reference:
• IEA (International Energy Agency) and CSI (Cement Sustainability Initiative) (2018), Technology Roadmap: Low-Carbon Transition in the Cement
Industry, IEA and CSI, Paris and Geneva.
• ECRA (European Cement Research Academy) and CSI (eds.) (2017), Development of State of the Art Techniques in Cement Manufacturing: Trying to
Look Ahead, ECRA, Düsseldorf and Geneva, www.wbcsdcement.org/technology.
• Gartner, E. and T. Sui (2017), “Alternative cement clinkers”, Cement and Concrete Research, https://doi.org/10.1016/j.cemconres.2017.02.002.
• UNEP (United Nations Environment Programme) (2016), Eco-efficient Cements: Potential, Economically Viable Solutions for a Low-CO2, Cement-based
Materials Industry, UNEP, Paris.
• Quillin, K. (2010), Calcium Sulfoaluminate Cements: CO2 Reduction, Concrete Properties and Applications, Buildings Research Establishment, Watford,
United Kingdom.
Notes:
Slide 15: thermal energy intensity of clinker and electricity intensity of cement refer to the low-variability case.
Slide 19: PC = Portland cement, CSA = calcium sulphoaluminate, BCSA = belite calcium sulphoaluminate, CACS = carbonation of calcium silicates, MOMS
= magnesium oxide derived from magnesium silicates. OPC clinker mainly contains 63% alite, 15% belite, 8% tricalcium aluminate and 9% tetracalcium
alumino-ferrite. Belite clinker is considered to mainly contain 62% belite, 16% alite, 8% tricalcium aluminate and 9% tetracalcium alumino-ferrite. CSA
clinker is considered to mainly contain 47.5% ye’elimite, 23.9% belite, 12.9% wollastonite and 8.6% tetracalcium alumino-ferrite. BCSA clinker is
considered to mainly contain 46% belite, 35% ye’elimite and 17% tetracalcium alumino-ferrite. Commercial compositions of CACS clinker are not
currently available. CACS clinker in this assessment is considered to primarily consist of wollastonite but commercial composition is likely to be different
at some extent, and possibly higher in process CO2 emissions. Process CO2 emissions generated in CACS clinker making are in principle re-absorbed
during the curing process.