Summit Materials and Green America Recycling Pioneer Alternative Fuel Technology at the Davenport, Iowa Cement Plant

Rhea-AI Summary

Summit Materials (NYSE: SUM) has successfully implemented the first global pre-commercial installation of FLSmidth's FUELFLEX™ Pyrolyzer system at its Davenport, Iowa Cement Plant. This $38 million investment expands Summit's Green America Recycling operation, enabling the plant to replace approximately 55% of its fossil fuel usage with non-hazardous waste. The project is expected to cut coal and petcoke consumption by over 50,000 tons annually while delivering significant savings.

This achievement aligns with Summit's sustainability goals and Carbon Reduction roadmap. The company, as the largest US-based cement producer, aims to lead in addressing emission reduction goals while adding value. The FuelFlex technology not only reduces reliance on fossil fuels but also improves plant efficiencies, material flow, and overall throughput.

Positive

• Investment of $38 million in sustainable technology expected to deliver significant annual savings
• Reduction of fossil fuel usage by 55% at the Davenport plant
• Annual reduction of over 50,000 tons in coal and petcoke consumption
• Improved plant efficiencies, material flow, and overall throughput
• Strengthened position as a leader in using waste materials for cement production

Negative

• None.

Insights

Environmental Engineer

Summit Materials' implementation of FuelFlex technology at their Davenport cement plant marks a significant leap in sustainable manufacturing. By reducing fossil fuel usage by 20% and replacing 55% with non-hazardous waste, they're addressing two critical environmental issues: carbon emissions and waste management. This dual-benefit approach not only cuts 50,000 tons of coal and petcoke consumption annually but also diverts waste from landfills or incineration. The $38 million investment demonstrates a serious commitment to sustainability, potentially setting a new industry standard. However, the long-term environmental impact and scalability of this technology across other plants remain to be seen.

Financial Analyst

Summit's $38 million investment in FuelFlex technology presents a compelling case for sustainable profitability. The projected significant annual savings from reduced fossil fuel consumption could substantially improve the company's bottom line. This move aligns with the growing trend of ESG-focused investments, potentially attracting environmentally conscious investors and customers. However, the financial success hinges on the technology's performance and market conditions. Investors should monitor the actual savings realized and any potential regulatory benefits. While the initial outlay is substantial, the long-term cost savings and potential market differentiation could provide Summit with a competitive edge in the cement industry.

Industry Analyst

Summit's adoption of FuelFlex technology positions them as an industry pioneer in sustainable cement production. As the largest US-based cement company, this move could catalyze a shift towards greener practices across the sector. The ability to use non-hazardous waste as fuel addresses both environmental concerns and potential future regulatory pressures. This innovation could reshape the competitive landscape, particularly if it delivers on efficiency and cost-saving promises. However, the cement industry is traditionally slow to change and widespread adoption may face resistance. Summit's success or failure with this technology will likely influence the industry's future direction towards sustainability and alternative fuel sources.

First global pre-commercial installation of FuelFlex technology will reduce Davenport's Fossil Fuel usage by 20%. 

DENVER, Sept. 11, 2024 /PRNewswire/ -- Summit Materials, Inc. (NYSE: SUM) ("Summit," "Summit Materials," "Summit Inc." or the "Company"), a market-leading producer of aggregates and cement, has successfully reconfigured and expanded Davenport's Green America Recycling operations.

Summit has completed the first global pre-commercial installation of the FLSmidth FUELFLEX™ Pyrolyzer system, which enhances the use of non-hazardous alternative fuels at its Davenport, Iowa Cement Plant. This $38 million investment expands Summit's Green America Recycling operation, enabling the plant to replace approximately 55% of its fossil fuel usage with non-hazardous waste. This achievement is a key milestone in Summit's sustainability goals and supports the Company's Carbon Reduction roadmap.

"As part of our commitment to being the most socially responsible construction materials company, we are proud to pioneer and invest in innovative ways to reduce our carbon footprint," said Anne Noonan, Summit Materials President and CEO. "As the largest US-based cement company, it's our responsibility to lead in addressing emission reduction goals in a way that adds value. The FuelFlex investment is a tremendous opportunity to meet our sustainability targets while delivering significant savings to our bottom line. We estimate this project will cut our coal and petcoke consumption by over 50,000 tons annually while delivering significant savings annually. This investment clearly demonstrates that we are building a cement business capable of meeting the opportunities and challenges of a dynamic marketplace."

David Loomes, EVP & President of Summit's Cement Segment, added, "We identified FuelFlex as a cutting-edge technology that not only reduces our reliance on fossil fuels but also improves plant efficiencies, material flow, and overall throughput. Summit's a leader in using waste materials to fuel our cement plants.  This unique strength creates benefits for our customers and communities by consuming waste which would otherwise be incinerated or landfilled, while delivering a vital construction material with lower embodied carbon. I commend our entire team for their tireless efforts in safely completing this project. Their flawless execution truly exemplifies our Summit values, extends our sustainability leadership, and enhances the overall quality of our business."

To celebrate this achievement, Summit Materials hosted a ribbon cutting event at its Davenport, Iowa Cement Plant. The event was attended by state and local elected officials, customers and suppliers. Anne Noonan, David Loomes, and several members of the Senior Management team from Summit Materials also attended.  To learn more about Summit's Environmental, Social and Governance (ESG) commitment, download 2023 ESG Report.  

About Summit Materials

Summit Materials is a market-leading producer of aggregates and cement with vertically integrated operations that supply ready-mix concrete and asphalt in select markets. Summit is a geographically diverse, materials-led business of scale that offers customers in the United States and British Columbia, Canada high quality products and services for the public infrastructure, residential and non-residential end markets. Summit has a strong track record of successful acquisitions since its founding and continues to pursue high-return growth opportunities in new and existing markets. For more information about Summit Materials, please visit www.summit-materials.com.

Cautionary Statement Regarding Forward-Looking Statements   

This press release contains "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as "believes, " "expects," "may," "will," "should," "seeks," "intends," "trends," "plans," "estimates," "projects" or "anticipates" or similar expressions that concern our strategy, plans, expectations or intentions. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements to be different from future results, performance or achievements expressed or implied by such forward-looking statements. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the effect of known factors, and, of course, it is impossible to anticipate all factors that could affect our actual results.   

In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be realized. Important factors could affect our results and could cause results to differ materially from those expressed in our forward-looking statements, including but not limited to the factors discussed in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023, and Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2024. Such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.  

Investor Contact  
Andy Larkin  
VP, Investor Relations  
Summit Materials, Inc.  
Andy.Larkin@summit-materials.com

Media Contact  
Karli Anderson
EVP, Chief People and ESG Officer and Head of Communications
Summit Materials, Inc.  
Karli.Anderson@summit-materials.com

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SOURCE Summit Materials, Inc.

FAQ

What is the FUELFLEX™ Pyrolyzer system implemented by Summit Materials (SUM)?

The FUELFLEX™ Pyrolyzer system is a technology developed by FLSmidth that enhances the use of non-hazardous alternative fuels in cement production. Summit Materials (SUM) has implemented the first global pre-commercial installation of this system at its Davenport, Iowa Cement Plant.

How much did Summit Materials (SUM) invest in the FUELFLEX™ Pyrolyzer system?

Summit Materials (SUM) invested $38 million in the FUELFLEX™ Pyrolyzer system and the expansion of its Green America Recycling operation at the Davenport, Iowa Cement Plant.

What are the expected benefits of the FUELFLEX™ Pyrolyzer system for Summit Materials (SUM)?

The FUELFLEX™ Pyrolyzer system is expected to reduce fossil fuel usage by 55% at the Davenport plant, cut coal and petcoke consumption by over 50,000 tons annually, deliver significant savings, improve plant efficiencies, and enhance material flow and overall throughput for Summit Materials (SUM).

How does the FUELFLEX™ Pyrolyzer system align with Summit Materials' (SUM) sustainability goals?

The FUELFLEX™ Pyrolyzer system aligns with Summit Materials' (SUM) sustainability goals by reducing the company's carbon footprint, supporting its Carbon Reduction roadmap, and demonstrating its commitment to being a socially responsible construction materials company.