EKF supports the financing of a state-of-the-art cement facility reducing CO2 emissions by up to 20 percent
EKF has supported a project in Southern Ghana deploying the new technology with a buyer credit guarantee of USD 43.2m in a 10-year door-to-door debt financing transaction
The Cement industry accounts for 7-8 percent of global CO2 emissions but is a hard to abate sector in the green transition. Now FLSmidth has pioneered a new calcination technology substituting clinker made from limestone with calcinated clay thereby significantly reducing the CO2 footprint of the final cement product.
This technology will be used in what will become the world’s largest clay calcination installation and the second record-breaking clay calcination order. And here FLSmidth is set to provide significant reductions in carbon emissions to CBI Ghana Ltd.’s cement production outside of Accra in southern Ghana.
Together with the new grinding station, the Swiss-owned company expects both financial and environmental return-on-investment from lower specific CO2 emissions, energy- and fuel savings, and reduced costs from clinker imports.
The cement project in Ghana is a key milestone in the green transition of cement production where locally sourced calcinated clay is used instead of imported clinker, which is a major contributor to the high emissions from the production process. The substitution will reduce carbon emissions by up to 20 percent per ton of cement produced without compromising the quality of the product. Including the sale of calcinated clay to other cement producers in Ghana, the total avoided emission is expected to be close to 30 percent compared to current production technology.
EKF Denmark´s Export Credit Agency (EKF) has issued a buyer credit guarantee of USD 43.2m making it the largest contributor to the project.
A key project for the global energy transition
"This is a fantastic project of crucial significance for the global energy transition generally and for cement plants specifically", commented Senior Vice President, Large Corporates & Institutions, Jens Hestbech.
“The significance of this order cannot be overestimated - clay calcination is yet another example of how the cement industry is responding to the need for more environmentally friendly processes. The CBI project in Ghana marks a key milestone in the green transition of the industry,” said Carsten Riisberg Lund, Cement Industry President, FLSmidth. “It is our second record-breaking clay calcination order in less than a year and one that is set to become the world’s largest installation. We are very happy to have a series of financing partners on board to make this deal happen, both IFU, the Norwegian NORFUND, and EKF in cooperation with the bank Société Générale have shown true commitment to the sustainability aspects of this project.”
"Thanks to the great support from the Danish Export Credit Agency EKF and the Danish investment fund IFU, we established a strong relationship early in the negotiation process with CBI Ghana and developed jointly the financial solution for the project. The new green technology applied has been a strong driver for all parties", commented Tine Bremholm Kokfelt, Department Manager of Global Project & Export Finance at FLSmidth.
“Ghana is the perfect location for using clay as an environmental alternative to clinker,” said Frédéric Albrecht, CEO at CBI Ghana Ltd. “We are witnessing an increasing demand for cement in the region, but low-quality limestone has previously forced us to import clinker. With the help from FLSmidth, we can now increase our capacity without compromising on the environment,” Frédéric Albrecht concluded.
EKF's participation is thereby helping to support FLSmidth's vital MissionZero strategy for the cement industry. It is also perfectly aligned with the almost 90-year partnership between EKF and FLSmidth.
The Danish company FLSmidth will deliver the technology and equipment for the expansion of CBI’s production as well as the clay calcination unit. CBI expects both financial and environmental return on the investment from lower CO2 emissions, energy and fuel-saving, and reduced cost from clinker imports.
EKF has its own climate policy, where we commit ourselves to a net zero emission target by 2045.