Cement sector needs $30 bln to achieve net-zero target 

ISTANBUL

Türkiye’s cement industry needs to make at least $30 billion worth of investments to meet the target of becoming net-zero carbon by 2053, according to representatives of the sector.

Meanwhile, the industry should make around $2 billion of investments in order to comply with the requirements under the European Union’s Carbon Border Adjustment Mechanism (CBAM), said Fatih Yücelik, the board chair of the Turkish Cement Manufacturers’ Association (TÜRKÇİMENTO).

“The most important issue for us this year is carbon emissions,” he added.

The amount of investments to be made swiftly in transformation and efficiency work to overcome the barriers created by the CBAM is around $2 billion, Yücelik said.

“However, under the current situation, it is difficult for us to find this financing,” he stressed.

There are 77 factories producing cement in Türkiye, according to Yücelik.

“They all use furnaces which heavily consume energy. We are establishing waste heat recovery facilities. The amount of electricity generated by those units can power 618,000 homes,” he said.

On the other hand, the cement industry is struggling with rising costs, said Adil Sani Konukoğlu from the association.

“A shipload of coal costs around 150 million Turkish Liras ($4.7 million). Energy accounts for around 80 percent of our costs,” he noted.

The cement industry’s production increased by 10.5 percent last year compared to 2022 to reach 81.5 million tons, according to Yücelik.

Domestic sales grew 19 percent in 2023 to 65 million tons, but the industry’s exports plunged 28 percent to 19.7 million tons, he said.