Holcim is in the process of implementing a globally unique project: a zero-emission cement plant. Kujawy Go4ECOPlanet is the first implementation of full-scale CCS technology in Poland and Europe, and one of the first in the world. What is CCS technology and how did you get the idea to use a CCS (Carbon Capture Storage) installation in Kujawy?
Maciej Sypek: The CCS technology consists of capturing and storing carbon dioxide. The first installation of this kind is being built at the Kujawy Cement Plant using the cryogenic technology, which will make it possible to completely reduce the carbon footprint from the firing of clinker - the basic ingredient in cement production. Ultimately, we plan to start capturing 100% of carbon dioxide emissions within the next few years thanks to the project in Kujawy.
At Holcim Poland, the idea of using this process was born a few years ago. At that time, a group of enthusiasts, led by the then CEO, Xavier Guesnu, applied for a grant from the European Union. The project was approved and received EU funding, and so our adventure began. At first, I was mainly involved in the commercial and marketing aspects of the project, but since this March, I have been fully committed to it.
It is definitely the most exciting project we have ever worked on in the company. It is a pioneering project that requires innovative solutions on various levels. At the same time, we are becoming increasingly confident as a team about what needs to be done to achieve success.
What stage is the project currently at? What steps have you already taken and what is still ahead of you?
MS: We are currently in the project analysis and concept preparation phase. One of the options being considered is transporting CO2 from the Kujawy cement plant via the terminal in Gdańsk and then by ship to the North Sea. Naturally, the ideal solution would be if we could store the carbon dioxide in Poland.
So you could say that we are blazing a trail. Political will is now crucial. Projects like ours, which are groundbreaking and innovative, create new paths, but without government support it is difficult to implement them. The difficulty is not so much with the financial side of things, but with solutions that enable such projects to be implemented and that create conditions to make the projects viable also from a business perspective, which will ultimately benefit the competitiveness of the Polish economy.
Essential needs include the right infrastructural solutions at the state level, appropriate legislation, but also, following the example of Croatia, the inclusion of CCS on the list of strategic projects.
How does the CO2 capture process work and what happens with the captured carbon dioxide?
MS: There are many carbon capture technologies. Currently, we consider the cryogenic technology to be the most promising. In this process, the gases will be purified to obtain carbon dioxide parameters that meet the requirements of the sequestration site operators. The CO2 will then be cooled to -50 degrees, which will cause it to liquefy, making it possible to transport. Ideally, pipelines would be used for this purpose, which could directly deliver this compressed carbon dioxide to appropriate storage locations in the country, which is what we call the ‘onshore’ solution.
The second option is ‘offshore,’ which means storing CO2 under the seabed, for example in the Baltic Sea or another body of water. In the scenario we are currently considering, the CO2 will be captured, purified, liquefied and transported by rail to a port, from where it will be shipped to the North Sea or stored onshore in Scandinavia – where the infrastructure is already in place.
How much space do you need to store CO2 underground?
MS: According to geological estimates, we have enough storage space for more than 10 billion tonnes. That is a lot. Poland emits some 300 million tonnes of CO2 per year, of which cement accounts for around 10 million tonnes. In terms of our country's total emissions, our storage potential is therefore huge. I believe that this is an opportunity to use these resources in an effective and sustainable way.
You said that the ideal option would be to be able to store carbon dioxide locally in Poland. When will this be possible? What obstacles are there?
MS: Poland currently lacks the appropriate regulations and infrastructure. We should assume that this will take at least five years. We have excellent geological conditions that are worth utilising, we have rock strata that are suitably porous as well as saline strata, which are also suitable for storing carbon dioxide.
The regulations for this process are still being developed. We do not yet know exactly how it will work, but the process is already underway. Political will is crucial. We need to come up with a concept for infrastructural solutions. However, this must also be followed by corresponding amendments to the mining and geological law. Questions arise as to who will have the right to search for such areas, what the conditions of the licence will be, and the rules regarding storage. All of this is now under discussion.
Where are the areas that could potentially be used?
MS: To begin with, we are thinking about central Poland. The area south of Bełchatów, i.e. the Łódź Province, and some regions in eastern Poland.
Is carbon dioxide storage safe for people, the soil and the environment?
MS: CO2 storage is a safe method that has been in use for years. I think education and a proper communication strategy are necessary in this case. There used to be huge resistance to nuclear power, but today there is significant support for it. In retrospect, it is clear that people are beginning to understand the benefits and safety of nuclear energy.
Similar awareness will be needed for carbon dioxide storage. CO2, although only present in the atmosphere in low concentrations, is essential for photosynthesis and plant life. In Poland, we use the propane-butane gas in most homes, which is explosive, but we have become accustomed to it, and no one protests. CO2, on the other hand, is not explosive.
Moreover, the proposed CO2 storage is at a depth of more than one kilometre below ground level – knowing this significantly changes people’s perception of the safety of this process. Globally, this is already being done, and the technology is available. Carbon dioxide is used, among other things, to extract crude oil, and then it remains in the deposits. There are specialised companies with the experience and technology. By utilising their know-how, we can carry out this process in a completely safe way.
In the United States, CO2 has long been used to increase the pressure in gas and oil fields in order to make better use of them. There are currently over 30 such sites worldwide. In Poland, too, acid gases (80% CO2) have been injected into a depleted gas field in the Wielkopolska Province since 1996. No dangerous incidents have been recorded at these storage sites.
Holcim has obtained funds from the European Union for this investment. What is the estimated cost of the entire project and what will the successive stages of the investment look like?
MS: This is funding from the Innovation Fund, amounting to €228 million, and it accounted for 60 percent of the total expenditure in 2022. These funds cover both capex and opex. They are intended for the execution of the carbon capture project in the cement plant and the operating costs of the entire supply chain – from the cement plant to permanent storage in the North Sea. The project will naturally be implemented in stages, step by step.
The first phase of the project is well underway. It started with the submission of the application, then we carried out preliminary analyses of the costs and the method of execution. We are now entering the next, more detailed phase, called FEEDIT (front-end engineering design). In this phase, we carefully analyse all technical and logistical aspects, as well as the costs.
The thing about innovative projects is that we learn a lot as we go along. This is completely different from projects that have been done before and for which we have hard data. In this case, we discover new things as we move forward.
We also know that this project is just one of several possible scenarios under consideration. There are not many options, but we do have a few. Ideally, however, we would like to shorten the supply chain and store carbon dioxide locally. This would be the simplest, cheapest and therefore most effective solution.
In addition, some of the money would remain in Poland instead of going to countries such as Norway or Germany, which are offering their storage sites. Since we have the appropriate geological structures in Poland, and globally there already are technologies that make it possible to store CO2 safely and with respect for local communities, we should ultimately do that locally.
When we talk about this kind of funding, the first thing that comes to mind is the benefits for Holcim: a huge investment subsidy, which means media coverage, a boost to the company's image, business partnerships, cooperation at a ministerial level... But what benefits will this project bring to other, smaller stakeholders?
MS: I have to make a major correction here. From the company's perspective, it is primarily an investment project with a very high business risk. We have to make a number of financial decisions at a very early stage, because more than 40 percent of the financing comes from Holcim. The operational risk also lies with Holcim, for example the cost of capture and transport, the choice of technology etc. In addition, we have obligations to CINEA, and the grant depends on meeting them. Meanwhile, the entire investment and its profitability are impacted by external factors, including legal, political and business factors on the part of the partners.
When it comes to external stakeholders, I would like to start with individual consumers and the construction sector as a whole. People talk a lot about competitiveness and in this context, ETS issues should be addressed. The reform involves the gradual phasing out of free emission allowances between 2026 and 2034. Every emitter will have to pay for the right to emit CO2 if they do not eliminate it. In the cement industry, it is impossible to eliminate CO2 emissions during the production of clinker, the main component of cement, because they are generated as a result of chemical processes. Therefore, if there is no way to decarbonise, we will incur emission costs that will be passed on to the entire value chain, including end customers.
If we do not implement CCS, the competitiveness of the Polish cement sector will be at risk. In addition, the investment brings benefits to partner companies – railway carriage suppliers, transport companies, etc.
The capture and storage of carbon dioxide, along with its transport, is only one part of the investment. In one of your interviews, you said that in addition to government support, Holcim needs further investments in order to implement this project. What exactly did you mean?
MS: Firstly, we need to create a market for zero- and nearly-zero emission products. This market does not exist yet, but it is fast approaching.
Secondly, we need access to huge amounts of energy, which must come from renewable sources. In Poland, this is not at all self-evident. Why is it so important? Because if we want to protect the environment, I cannot imagine using energy that itself pollutes the environment. The two must go hand in hand for it all to make sense. Common sense is key here.
Green energy is undoubtedly one of the most important elements. It would certainly make investment decisions easier for many entrepreneurs. An agreement with the government would be needed, similar to those in the Netherlands and the UK. Bear in mind that the price of carbon is neither fixed nor predictable at the moment – we don't know what it will be in 5 or 10 years' time. Therefore, in order to minimise this risk, some governments are introducing differential mechanisms, especially in the hydrogen sector. Agreements of this sort reduce the risk associated with emission price fluctuations. We must also remember that within our group we also compete for funds and investment decisions regarding projects like this one. The country that is best prepared and has a good working relationship with the government will gain an advantage.
But coming back to the reduction of emissions, we have managed to reduce them by almost half in a few years. Of course, we are aiming for 100% and we know that there is no better technology than CCS if we are to achieve this. It is the only method that can eliminate process emissions. In our case, it is particularly important because it is the only option in the cement sector.
Who do you need to cooperate with on this project? What kinds of partners or companies can support this investment at different stages?
MS: For me, the key aspect is cooperation at the ministerial level. As I mentioned earlier, this is not just about financial support, but about discussions, dialogue and arrangements that require decisions at the national level. This is the most important thing. We are able to organise the rest – from the provision of carbon capture technology to transport and storage. For example, the cooperation with Orlen in the context of the terminal in Gdańsk is going very well. I think that the people who work in these companies have a lot of knowledge and skills, but to implement the project, you also need the political will to treat it as a priority and to expedite the work. Poland is now competing with other countries, for example Norway, and I believe that we can do it faster and better.
What dates are realistic for the completion of this project? When will the Kujawy Cement Plant be carbon neutral?
MS: Using the option of transporting carbon dioxide to the North Sea, I think that a realistic date would be around 2030.
By: Katarzyna Łabuz
Source: https://esgtrends.pl/wywiad-maciej-sypek-holcim-polska-wdrozenie-ccs-na-kujawach-to-ekscytujacy-projekt/
CCS is an opportunity to increase the competitiveness of the cement industry in Poland in the light of the phase-out of the free emission rights under the ETS system, and Poland is currently the third largest cement producer in Europe. That is why Holcim (formerly Lafarge) has undertaken a unique global project to create an infrastructure capable of capturing 1 million tonnes of carbon dioxide per year from the kiln flue gases during clinker production.
During a meeting with stakeholders from the Świętokrzyskie and Kujawsko-Pomorskie Voivodships that was held on 12 September, Holcim Polska summarised its environmental activities and investment projects. The Environment Day was also attended by a representative of the Marshal's Office in Kielce from the Department of Agriculture, Climate and the Environment, who touched on the development of circular economy in the region.
‘We are focusing on reducing our carbon dioxide emissions. As a result, over the past 20 years we have halved our CO2 emissions from 800 kg to 400 kg per tonne of cement. In addition, we will have implemented a modern carbon capture technology by 2030,’ said President of Holcim Polska Maciej Sypek, PhD, during the 33rd Economic Forum in Karpacz, Poland (3-5 September 2024).
In its expectations of businesses, the EU repeats 'zero net emissions' like a mantra. Holcim is taking up this challenge. As a result, the Kujawy Cement Plant may become the first full ydecarbonised construction materials plant in Poland. Jolanta Zdunowska, Technical Director of Carbon Capture and Storage Projects at Holcim Polska, talks about the PLN 2-bln investment project.
The first zero-emission cement plant in Europe is to be built in 2027 in Poland, in the Kujawy region. Holcim is in the process of implementing the GO4ECOPLANET project, under which 100 percent of the carbon dioxide produced by Cementownia Kujawy will be captured.
The Kujawy Go4ECOPlanet project, which aims to capture 100 percent of CO2 emissions in Kujawy Cement Plant, enters the next stage.
The cement sector is characterized by a high degree of innovation in introducing solutions conducive to reducing the negative impact on the environment.
Holcim and the Innovation Fund (CINEA European Agency) signed the project grant agreement in Brussels on 19 January 2023.
