Between the market and decarbonization
The year 2023 began with high energy costs in cement plants - an escalation that began in 2021 and was exacerbated in 2022 by the war in Ukraine - and ended with a sharply declining domestic market. From April to December, year-on-year cement consumption in Catalonia fell steadily.
Granted, the gradual decline in energy prices - and the consequent drop in inflation - gave our industry some breathing space. But it should not be forgotten that this drop in prices was largely due to European monetary policy and the increase in interest rates, which reached 4.5%. On the other hand, the price of mortgages rose sharply, which translated into a decline in home sales, one of the two main destinations for cement.
This scenario of contraction in the real estate sector was accompanied by problems in our industry's other major market: public works. Although infrastructure tenders remained stable during the year, their limited execution-whether due to a lack of diligence on the part of the various public administrations, to the fact that contests were deserted, or to the paralysis of projects due to rising costs-placed our business at a low level.
As a result, cement consumption closed 2023 with a 9% decline. Since exports did not grow either (-8.5%), the production of our factories had to be reduced (-5.1%). After 2 years of post-pandemic rebound, activity fell again.
Moving towards climate neutrality
Despite this adverse situation, all Catalan cement factories have continued to invest in 2023 to improve their facilities and processes and thus continue to reduce their CO2 emissions. The goal is to achieve climate neutrality by 2050 and thus contribute to the fight against climate change. In the last three decades we have reduced these emissions by around 40% through the increased use of decarbonated raw materials, the use of additives in cement and the energy recovery of waste.
But in order to move forward, we need to develop and implement technologies for CO2 capture, transport, storage and use (so-called CCUS technologies). At this point, we call on public administrations to provide aid beyond the PERTES, with a deadline of 25 years before the target to be met, and a clear regulatory framework. We need their decisive support both for CO2 storage, which is currently essential until new uses are found for the captured gas, and to streamline and make more efficient the administrative procedures necessary to start up the technological processes and capture facilities, so that they are in line with the zero carbon footprint objective.
Committed to Sustainability
During the 2023 financial year, the Catalan cement industry has continued to promote the application of circular economy practices, a production and consumption model that involves sharing, reusing, recycling and valorizing existing materials and products to create added value. In this way, the life cycle of products is extended. In the cement sector, these practices are deployed in two main areas: the recovery of raw materials to reduce the extraction of natural resources, and the energetic use of waste that has no alternative other than landfill.
As can be seen in this Report, our commitment to sustainability extends in all directions. Thus, we contribute to the minimization and reuse of the waste produced by our society, with the consequent reduction of the associated pollution. We contribute to the regeneration of nature through quarry restoration plans. We reduce atmospheric emissions from the cement kiln manufacturing process by using biomass as fuel. We purchase electricity from clean, renewable sources. We increase the thermal efficiency of our facilities with the application of advanced technological solutions, including the use of Artificial Intelligence.
The companies that make up Ciment Català want to promote the development of society and the quality of life of people by providing innovative and sustainable products. Throughout this Report you will be able to learn about the actions we have carried out in this regard during 2023, as well as the updated statistics of our industrial activity.
