>Alternative Fuel

InterCement is an entity fostering co-processing internationally. 

The company, by promoting the use of alternative fuels in its units, boosts the efficiency of production by reducing CO2 emissions and, in parallel, providing society with a safe process for the recovery of waste that can be co-processed.

InterCement has had units with co-processing capacity since 2001, and it will implement until 2024 a program comprising more than 90 projects with investments estimated at over EUR

200 million, expanding its activity and broadening the spectrum and amounts of co-processed waste.

The goal is to replace about half of the fossil fuels used for waste by 2024.

The approach to co-processing, as befits its DNA, is done in the logic of building sustainable partnerships, either through taking stakes in the waste collection and/or waste preparation companies or by contributing to the technological development of this activity and the welfare of society in general.

EGYPT

>History, Prospects & Positioning

 The co-processing activity of Amreyah Cement Company, an InterCement company, first started in 2011.

Currently, about 30 KT of waste per year is co-processed as a substitute for fossil fuels.

This activity, still in the embryonic stage of its development, has been showing sustainable growth in a context where the optimization of the local energy matrix is increasingly pressing.  An increase of the activity is expected, which registered in 2014 a thermal fuel substitution rate of 3% and around 5% in 2015. In 2016 we should reach around 16%, benefiting from recent investments in this area, including the equipping of Kilns 1 and 3 with co-processing capacity.

 >Partnerships, Licensing Entities & Regulatory Bodies

The model adopted by InterCement in Egypt, in terms of partnerships, takes three forms:

1-Making available an area at the perimeter of the plant for a third-party tyre preparation company to set itself up and supply the plant.

2-A partnership to support the implementation of a Portuguese company in Egypt which has invested EUR 1.5 million in a waste preparation unit from municipal solid waste to supply InterCement on an exclusive basis;

3-Deepening the relationships with the biomass suppliers, a broad sharing of know-how and networking.

The Co-processing activity in Egypt is licensed and regulated by EEAA - Egypt Environmental Affairs Agency (responsible for licensing the co-processing activity) and the local government, namely the Ministry of Environment and Environmental Affairs.

>Challenges

The present energy framework in Egypt has encouraged local cement producers to optimize their energy matrices, making the search for alternative fuels more competitive

In this context, InterCement progresses with partnerships that permit cost reductions at the source, while at the same time aiming to stabilize the production process, which is essential to achieve the proposed increase of the fossil fuel substitution rate.

InterCement, aware of the added value offered by this process to the Egyptian economy, is a natural promoter of the national process of the residue derived fuels preparation activity from municipal solid waste, in order to encourage co-processing as an alternative to the use of landfills as a waste disposal solution.

>Projects under Development

InterCement has investments in the region amounting to EUR 21 million in the portfolio, aiming to achieve a fossil fuel substitution rate of 51% by 2024.