Gypsum industry news
Update on European gypsum supplies, June 2023
22 June 2023Eurogypsum added its views on the European Union’s (EU) proposed Critical Raw Materials Act (CRMA) last month. It wants gypsum to be added to the bill’s list of critical and strategic raw materials. It is not surprising that the European federation of national associations of producers of gypsum products might want to do this. However, when compared to rare earth minerals of the sort required to manufacture batteries for electric vehicles (EV), gypsum doesn’t seem all that, well, rare.
What may be rare though is people’s patience with new gypsum mines. The association’s argument is that gypsum is indeed abundant in the EU but that accessing it is increasingly becoming difficult. The EU’s sustainability agenda has made the energy efficiency of buildings as important as reducing CO2 emissions from the transportation sector. Gypsum and other materials used to make lightweight building materials are a way of renovating existing buildings and improving energy efficiency. Therefore it suggests that the act should either recognise gypsum as strategic or introduce a new ‘essential’ category. This would then make the process of extracting gypsum more easy.
This approach ties back to initiatives such as one by the Federal Commission on Geosciences (BLA-GEO) in Germany, which previously started to compile an inventory of the nation’s gypsum deposits with the intention of putting this in front of policy makers. Nor is the gypsum sector alone in targeting the potentially lucrative retrofit market. In May 2023 Daikin, Danfoss, Knauf Insulation, Rockwool, Saint-Gobain, Signify and Velux signed an agreement to promote building energy efficiency in Central and Eastern Europe (CEE). Radek Bedrna, Knauf Insulation’s managing director for Eastern Europe and Middle East, noted that two thirds of the 43.6m homes in single- and multi-family houses in the CEE region were reportedly built before 1989 and are energy inefficient. The European Commission places transport-related greenhouse gas emissions at about 25% of the region’s total. Renovating buildings fully, by contrast, could save up to 5% of the EU’s emissions. Targeting transport emissions may be a higher priority for the EU but the savings from retrofitting are not trivial either.
Then - on cue in mid-June 2023 - there was an example of the difficulties gypsum product producers can face with building new quarries or enlarging old ones when expansion plans for a gypsum quarry supporting Placoplatre’s wallboard plant in Chambéry in France were scaled back from local opposition. The subsidiary of Saint-Gobain met similar issues in late 2022 when a public enquiry started examining its plans to build a new quarry at Fort Vaujours, Seine-Saint-Denis. This site is intended to serve the Vaujours gypsum wallboard plant as a replacement for its Bernouille quarry after the latter closes in 2026. This one has a happier ending, for the gypsum sector at least, since the project received an environmental permit in late May 2023. One of the key issues that came up in the enquiry was a disagreement over the means of extraction. A local environmental group favoured underground mining but an open-cast approach was preferred by the producer as it would yield much more gypsum. The latter was eventually approved.
What this suggests is that making gypsum an ‘essential’ raw material in Europe requires engagement with the general public as much as legislators. Some people may not like having a wind farm built near where they live but the chances are that there will be less opposition than building a new coal mine. Digging up new gypsum deposits should be presented as more like the former than the latter. Whizzing around in a new EV is generally seen as being more fun than bragging about how great the lamba factor is for one’s house. However, this may change if energy prices keep ticking upwards. Gypsum may not be rare but Eurogypsum and others can make a strong case for it being essential.
Belgium: Eurogypsum, the European federation of national associations of producers of gypsum products, is lobbying for building materials such as gypsum to be included in a list of critical and strategic raw materials as part of the European Union’s (EU) proposed Critical Raw Materials Act (CRMA). The organisation welcomes the CRMA but wants it to also consider the energy renovation of the building stock in addition to raw earth minerals such as those required to build batteries. It has suggested either amending the proposed act to include certain building materials as strategic or introducing a new category of ‘essential’ raw materials, with streamlined permitting processes and access to finance.
It noted that Europe was, in principle, self sufficient in gypsum due to abundant deposits. However, it said that, “increasing difficulties in the access to extractive permits, combined with the foreseen reduction of alternative gypsum sources from the flue gas desulphurisation of coal power plants in the energy transition, are raising serious concerns about the future supply of this mineral essential for the construction and renovation of buildings.”
The CRMA was originally announced by EU President Ursula von der Leyen in September 2022 before being formally proposed in March 2023. It is now being considered by the European Parliament and the Council of the European Union.
Belgium: Eurogypsum, the European federation of national associations of producers of gypsum products, has welcomed proposed changes to the European Union’s (EU) Construction Products Regulation (CPR). It said that it welcomed “…the proposal presented by the European Commission (EC) on 30 March 2022 as an ambitious basis to strengthen and modernise the existing rules, as well as to speed up the uptake of sustainable and circular practices in the construction product manufacturing industry.”
In preliminary feedback comments the association said that it supports a European Committee for Standardisation (CEN) driven system as opposed to increased regulatory powers for construction material manufacturing that the new proposals might create. For the assessment of the environmental performance of products the association wants more clarity about any potential new digital approach. It reiterated that it supports the continued use of Life-Cycle Assessments (LCA) and Environmental Product Decelerations (EPD). It also called for product labelling to be provided in an electronic format with easy-to-understand pictograms as the norm. However it suggested that any consumer should be able to request a paper version if required.
The CPR regulations were originally introduced in 2011 and are recognisable to consumers through the use of the CE (Communauté Européenne) markings on certain products. The EC has since decided to revise the regulations to fit with newer policy priorities including the European Green Deal.
Eurogypsum at 60: The door is open
16 June 2022Members of Eurogypsum, the European Gypsum Association, gathered at the Les Atelier des Tanneurs in Brussels on 27 - 28 April 2022 to formally celebrate the 60th Anniversary of their association, despite a delay of 12 months due to Covid restrictions. Over two days, they participated in meetings and panel sessions reminiscent of pre-pandemic times. Attending the Open Congress session on 28 April 2022, Global Gypsum found the event to be very dynamic and surprisingly open.
The Open Congress began with welcomes from the moderator, Knauf Insulation’s Sian Hughes and outgoing Eurogypsum President Emmanuel Normant, of Saint-Gobain. He introduced the past 60 years as one of ‘enormous change’ for the sector, but this was not meant to be a retrospective. Turning to the next 60 years, Normant said that gypsum’s inherent benefits, including its low embodied CO2 emissions, recyclability, high degree of safety and ease of use, would make it even more crucial to global development in the future than in the past.
A series of quick-fire presentations from the industry’s big hitters then highlighted a wide range of ways to increase the sustainability of our sector.
Saint-Gobain’s Klaus Birk introduced Gyproc's project to switch its Fredrikstad wallboard plant in Norway to use a 100% electric wallboard production process by 2023. This will use renewable energy, predominantly sourced from hydroelectric power, and lead to a 70% drop in CO2 emissions. This approach could be applicable to any wallboard plant with access to sufficient renewable power.
Knauf's Jörg Demmich then spoke about a project to extract gypsum from the ‘waste’ from the lithium production process. Even the best lithium ores only contain 3 - 6% lithium by mass, leaving 94 - 97% currently unused. As electric mobility grows, by-product gypsum from the lithium sector could partly offset the expected fall in flue-gas desulphurisation (FGD) gypsum supplies.
Iryna Yermakova introduced the Etex Group's approach to the wallboard plant of the future. One area she highlighted was the potential for prefabrication at the wallboard plant before panels reach the job site. This has the potential, on some projects, to save up to 10% of the wallboard cost, transport cost and CO2 emissions of the board used. Surely a quick win for contractors.
Nikolai Halle from Cobuilder introduced the Define tool, freely-available to the construction sector. Define will act like the Swift payment system, but for sustainability data instead of financial data. This would unify different sustainability metrics to cut through the confusing terms used by producers and reveal the 'real' performance of different products, rather than how effectively their attributes are marketed.
The keynote presentation, from the former European Commissioner for the Environment Janez Potočnik – ‘The Father of the Circular Economy’ - then highlighted why innovation is key, not only to the future of the gypsum sector, but to the planet itself. At current rates, the mass of man-made material will be three times larger than all biomass by 2040.
To avoid this, Potočnik argued that the entire economy needs to become service-based, rather than product-based. Under such a model, wallboard producers would become part of the ‘building envelope services sector’ rather than selling wallboard. The desire is then to sell wallboard with a long service life, that can be repurposed and recycled, rather than selling ever-increasing volumes of board.Taking this approach across the entire economy would help society to maximise gross domestic product while reducing environmental impacts, eventually decoupling them from each other entirely. Potočnik concluded that nature is already the 'perfect' circular economy. Humans just need to reintegrate into it.
To say that the panel discussion that followed was ‘lively’ would be an understatement. Member of the European Parliament Iskra Mihaylova, speaking the day after Russia halted gas supplies to her native Bulgaria, said that talk of energy independence and solidarity was 'not enough' and that Europe needed to act on the European Union Green Deal, particularly with a view to energy and resource efficiency and security.
Josefina Lindblom, the European Commission’s Policy Officer for Sustainable Buildings for Circular Economy, introduced what she hoped would become the next buzzword: ‘sufficiency’ - properly taking pause to consider what is truly required of new buildings. This includes the need to apply full circularity to renovation projects.
Adrian Joyce, from the European Alliance of Companies for Energy Efficiency in Buildings, asked the audience to think not in terms of 'energy efficiency,' but 'conservation of energy.' The two terms are subtly different, with the latter akin to ‘sufficiency.' Both point to the need to reduce the use of resources, not just the effectiveness which we use increasing amounts of resources.
Tristan Suffys, Secretary General of Eurogypsum, said that gypsum is well suited to fit into the low-CO2, low-resource-use sector of the future. He called for re-use of derelict buildings, re-purposing and optimising the use of space by building above existing buildings.
The Open Congress drew to a close with a speech by the incoming President of Eurogypsum (and Head of Corporate Social Responsibility at Etex) Jörg Ertle. He told Eurogypsum members that the 'doors' marked 'Green Deal,' 'Decarbonisation,' and 'Recycling' were all 'open' and that they should be making the most of the opportunities behind each. From Global Gypsum’s perspective, it seems that they have burst through each of the doors into the rooms behind. Some are even measuring up for wallboard.
In conclusion, it appears that the European wallboard sector is at the start of a major increase in sustainability efforts. This will be backed by politicians who are keen to decouple their economies from Russia’s and a public that is increasingly asking for change. And, with three major global producers - Knauf, Saint-Gobain and Etex - based in Europe, between them sharing 47% of the world’s wallboard capacity, we can expect to see these innovations spread to other regions rapidly.
Here’s to the next 60 years!
Saint-Gobain lobbies for higher 2030 emissions reduction targets
15 September 2020France: Saint-Gobain is among 157 businesses which signed a letter to European Union (EU) members’ governments urging the enactment of higher 2030 greenhouse gas emissions reduction targets. The letter calls on all EU leaders to target a reduction of 55% by 2030 in line with the European Green deal.
Chair and chief executive officer (CEO) Pierre-André de Chalendar said, “The right decisions now can help create and protect healthy, thriving and fair communities and secure a roadmap for a prosperous economy. From a business and investor perspective, clarity on the net zero transition pathway and timetables for each sector - as well as policy that enables substantial investments in carbon neutral solutions - is essential. This in turn would provide us with the confidence needed to invest decisively at the necessary pace and scale to reduce emissions, create decent green jobs, drive innovation, and accelerate the rebuilding of a resilient zero carbon economy."
Germany: The European Commission has approved Euro33m investment aid to Hamburger Rieger. It designated the aid as being in line with European Union (EU) state aid rules, in particular the Guidelines on Regional State Aid for 2014 -2020, because it furthers regional development without unduly distorting competition in the single market. The German producer of paper and plasterboard liner has plans to invest Euro363m to upgrade its paper production capacity by setting up a new stock preparation process and building an additional paper machine in its plant in Spremberg.
"It's important that public investments foster economic growth in disadvantaged regions in Europe. We have carefully assessed the project. The investment aid to Hamburger Rieger will further develop the region without distorting competition and will help bringing truly innovative production processes to market," said EU Commissioner in charge of competition policy Margrethe Vestager.
UK: Claude-Alain Tardy, the president of Saint-Gobain's gypsum and insulation activities, has warned that a UK exit from the European Union (Brexit) could 'destabilise' the wider European economy as well as impacting the UK market. Tardy made the comments while speaking to Building in Prague and Building News then reported his comments. France and western Europe represented 70% or Euro27.7bn of the group's sales revenue in 2015. The UK will hold a referendum on membership of the European Union on 23 June 2016.