Page 97 - Sigmaroc Annual-Report 2023

CO2 AND THE LIME INDUSTRY AND HOW IT VARIES FROM CEMENT AND OTHER INDUSTRIES
The directive concerning Phase IV (2021-2030) of the ETS entered into force on 8 April 2018. Secondary legislation and guidance documents defining the revised ETS scheme were published in 2023 to align it with the target of a 55% reduction of EU Green House Gas emissions. The new benchmark values (the value at which the free allowance is set) are below the actual emissions of the covered industries, and this deficit, along with market measures such as a stability reserve held by the EU and the faster reduction in year-on-year allowances drove traded prices in 2023 up to values of €80-€100/tonne, though at the time of publishing they have dropped.
Recently the Cross Border Adjustment Mechanism (CBAM) was brought in for many industries, including cement. Lime however is not part of CBAM. CBAM is a mechanism whereby importers of materials such as steel and cement into Europe will have to pay a duty / tax to ensure that European business and importers are equally priced with regards to carbon costs. In order for those industries to protect their boundaries, the consequence was to relinquish all free allocation by 2034 compared to allowing allowance to run until the 2050 timeline associated with the current legislation. As previously mentioned, lime is excluded from this and will continue its gradual reduction of free allocation under the existing rules.
To deal with CO , it is crucial to understand how CO is 22
governed and how it is produced.
European Union Emissions Trading System (EUETS)
The EUETS regulates greenhouse gas emissions of energy and energy-intensive industries as well as inner-European aviation. The EUETS puts a cap on the carbon dioxide (CO2) emitted by business and creates a market and price for carbon allowances. It covers 45% of EU emissions, including energy intensive sectors and approximately 12,000 installations.
The EUETS works on the ‘cap and trade’ principle. A ‘cap’, or limit, is set on the total amount of certain greenhouse gases that can be emitted by factories, power plants and other installations in the system within the cap, and companies receive or buy emission allowances which they can consume or trade as needed.
An allowance gives the right to emit a tonne of CO2, and any allowance surplus to requirement can be accumulated and used to offset future emissions or traded.
Lime Industry and CO2
majority of CO emissions: fuel and process emissions from the calcination part of the process.
For lime there are sources of CO emissions throughout the production process, however there are two primary sources that 2
2
make up the majority of CO2 emissions: fuel and process emissions from the calcination part of the process.
Mining Calcination Hydration
Mining Calcination Hydration
97
Lime Industry and CO
For lime there are sources of CO2 2 along the production process, however there are two primary sources that make up the
majority of CO emissions: fuel and process emissions from the calcination part of the process.
For limLeimtheeIrnedua2sretrysoanudrcCeOs2of CO2 along the production process, however there are two primary sources that make up the
CO2 Power & energy
CO2
Fuel & process emissions
Drilling and blasting
Crushing Sieving
Secondary crusher
limestone to produce quicklime
limestone to
Hydrated lime
Water
Water
Milk of Hydration of lime
Milk of Hydration of lime
quicklime
Calcination of
quicklime
Drilling and blasting
Crushing Sieving
Secondary crusher
Calcination of
Water
Water
Hydrated lime
produce quicklime