EU Backs Pioneering CO2 Capture Project at Cemex’s Rüdersdorf Cement Plant

Rhea-AI Summary

Cemex and Linde have been selected to receive €157 million in funding from the EU Innovation Fund for a pioneering CO2 capture project at Cemex's Rüdersdorf Cement Plant in Germany. The project aims to capture 1.3 million metric tons of CO2 per year, ultimately decarbonizing the site by 2030.

Linde's HISORP® CO2 capture technology will be deployed in a cryogenic-adsorptive process that captures CO2 from the exhaust gas. The liquid CO2 will be transported by rail to an intermediate CO2 Hub and shipped to an offshore storage site in the North Sea. The project's environmental credentials will be enhanced by regional green electricity generation and water recycling.

This initiative is part of Cemex's Future in Action sustainability program, which aims to make the company a net-zero CO2 company by 2050.

Positive

• Received €157 million in funding from EU Innovation Fund
• Aims to capture 1.3 million metric tons of CO2 per year
• Plans to decarbonize the Rüdersdorf site by 2030
• Implements innovative HISORP® CO2 capture technology
• Enhances environmental credentials with green electricity and water recycling

Negative

• None.

Insights

Environmental Technology Expert

This pioneering CO2 capture project at Cemex's Rüdersdorf plant represents a significant leap in cement industry decarbonization efforts. The €157 million EU funding underscores the project's importance and potential impact. With a target to capture 1.3 million metric tons of CO2 annually, it's poised to make a substantial dent in the plant's emissions.

The innovative HISORP® technology by Linde is a game-changer, offering a more efficient CO2 capture process directly from emission sources. The project's comprehensive approach, including green electricity generation and water recycling, demonstrates a holistic view of sustainability. However, investors should note that while promising, large-scale CCUS projects can face technical and logistical challenges during implementation.

This initiative aligns with growing regulatory pressures and market demands for lower-carbon cement production. For Cemex, it could potentially lead to competitive advantages and new revenue streams from carbon credits or low-carbon product premiums. The success of this project could set a precedent for the cement industry, potentially influencing future regulations and market standards.

Financial Analyst

The €157 million EU funding significantly de-risks Cemex's investment in this CCUS project, potentially improving the company's financial outlook. This project aligns with the growing trend of sustainable investing, which could attract ESG-focused investors and potentially lower Cemex's cost of capital in the long term.

While the initial capital expenditure for such projects is substantial, the long-term benefits could be significant. Decarbonization efforts may lead to reduced carbon tax liabilities and potential new revenue streams from low-carbon products. However, investors should consider the project's impact on Cemex's balance sheet and cash flows in the short to medium term.

The success of this project could position Cemex as an industry leader in sustainable cement production, potentially leading to increased market share and improved pricing power. However, the financial returns of CCUS projects are still uncertain and heavily dependent on future carbon pricing and regulatory environments. Investors should closely monitor the project's progress and its impact on Cemex's financial performance and valuation multiples.

MONTERREY, Mexico--(BUSINESS WIRE)-- A consortium comprised of Cemex and Linde, a leading global industrial gases and engineering company, has been selected to receive €157 million in funding from the EU Innovation Fund for a pioneering CO₂ capture project at Cemex’s Rüdersdorf Cement Plant in Germany.

The project, Cemex’s largest planned Carbon Capture Use and Storage (CCUS) project to date, aims to capture 1.3 million metric tons of CO₂ per year from Rüdersdorf’s cement production, ultimately decarbonizing the site by 2030.

“Our Future in Action climate action strategy is working hard to drive several revolutionary CCUS projects across our global operations,” said Sergio Menéndez, President of Cemex Europe, Middle East, Africa & Asia. “While we are working hard to decarbonize using existing technology (“reduce before capture”), an important component of our Future in Action strategy is to develop breakthrough decarbonization solutions for our industry to reach Net Zero. This project is one of those tools. The Rüdersdorf project is Cemex’s largest CCUS project to date, with all the hallmarks and credentials to make a significant contribution to the decarbonisation of the cement industry.”

At Rüdersdorf, Linde’s pioneering HISORP®, CO₂ capture technology will be deployed for the first time in a unique state-of-the-art cryogenic-adsorptive process that captures CO₂ from the exhaust gas directly at the emission source. The raw CO₂ is then compressed and liquefied so that it meets the purity requirements for subsequent sequestration. Finally, the liquid CO₂ product will be transported by rail to an intermediate CO₂ Hub and shipped to an offshore storage site in the North Sea for permanent storage.

The environmental credentials of this full chain CCUS project at Rüdersdorf will be further enhanced and supported by the regional generation of green electricity and the recycling of water obtained from the condensation of exhaust gases.

CCUS is part of the roadmap for Future in Action, Cemex's sustainability and decarbonization program, with the primary objective of becoming a net-zero CO₂ company by 2050. Through Future in Action, Cemex has achieved record-breaking progress in reducing its carbon footprint since its launch in 2020.

About Cemex

Cemex is a global construction materials company that is building a better future through sustainable products and solutions. Cemex is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. Cemex is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the help of new technologies. Cemex offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience enabled by digital technologies. For more information, please visit: www.cemex.com.

The grant referred to in this press release is subject to the successful completion of the grant preparation process and signing of an EU grant agreement. Except as the context otherwise may require, references in this press release to “Cemex,” ”we,” ”us,” ”our,” refer to Cemex, S.A.B. de C.V. (NYSE: CX) and its consolidated subsidiaries. This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Cemex intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These forward-looking statements reflect Cemex’s current expectations and projections about future events based on Cemex’s knowledge of present facts and circumstances and assumptions about future events, as well as Cemex’s current plans based on such facts and circumstances, unless otherwise indicated. These statements necessarily involve risks, uncertainties, and assumptions that could cause actual results to differ materially from Cemex’s expectations, including, among others, risks, uncertainties, and assumptions discussed in Cemex’s most recent annual report and detailed from time to time in Cemex’s other filings with the U.S. Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores), which factors are incorporated herein by reference, which, if materialized, could ultimately lead to Cemex’s expectations, expected results, and/or the project referred in this press release not producing the expected benefits and/or results, including Cemex not reaching a successful agreement to receive the grant. Forward-looking statements should not be considered guarantees of future performance, nor the results or developments are indicative of results or developments in subsequent periods. These factors may be revised or supplemented, and the information contained in this press release is subject to change without notice, but Cemex is not under, and expressly disclaims, any obligation to update or correct this press release or revise any forward-looking statement contained herein, whether as a result of new information, future events or otherwise, or to reflect the occurrence of anticipated or unanticipated events or circumstances. Any or all of Cemex’s forward-looking statements may turn out to be inaccurate. Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. The content of this press release is for informational purposes only, and you should not construe any such information or other material as legal, tax, investment, financial, or other advice. There is currently no single globally recognized or accepted, consistent, and comparable set of definitions or standards (legal, regulatory, or otherwise) of, nor widespread cross-market consensus i) as to what constitutes, a ‘green’, ‘social,’ or ‘sustainable’ or having equivalent-labelled activity, product, or asset; or ii) as to what precise attributes are required for a particular activity, product, or asset to be defined as ‘green’, ‘social,’ or ‘sustainable’ or such other equivalent label; or iii) as to climate and sustainable funding and financing activities and their classification and reporting. Therefore, there is little certainty, and no assurance or representation is given that such activities and/or reporting of those activities will meet any present or future expectations or requirements for describing or classifying funding and financing activities as ‘green’, ‘social’, or ‘sustainable’ or attributing similar labels. We expect policies, regulatory requirements, standards, and definitions to be developed and continuously evolve over time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241022468144/en/

Analyst and Investor Relations - New York

Blake Haider

+1 (212) 317-6011

ir@cemex.com

Analyst and Investor Relations - Monterrey

Fabián Orta

+52 (81) 8888-4327

ir@cemex.com

Media Relations

Jorge Pérez

+52 (81) 8259-6666

jorgeluis.perez@cemex.com

Source: Cemex

FAQ

What is the funding amount Cemex received for its CO2 capture project at Rüdersdorf (CX)?

Cemex and Linde received €157 million in funding from the EU Innovation Fund for the CO2 capture project at Cemex's Rüdersdorf Cement Plant in Germany.

How much CO2 does Cemex plan to capture annually at its Rüdersdorf plant (CX)?

Cemex aims to capture 1.3 million metric tons of CO2 per year from the Rüdersdorf Cement Plant's production.

What is the timeline for Cemex to decarbonize its Rüdersdorf site (CX)?

Cemex plans to ultimately decarbonize the Rüdersdorf site by 2030.

What technology will be used in Cemex's CO2 capture project at Rüdersdorf (CX)?

Linde's HISORP® CO2 capture technology will be deployed in a cryogenic-adsorptive process to capture CO2 from the exhaust gas at the Rüdersdorf plant.