Gypsum industry news
France: Saint-Gobain Placo has installed a heat and water recovery system in its Val-de-Cognac gypsum wallboard plant. In a post to LinkedIn, the company said that the new system has reduced the plant’s CO₂ emissions by 14%, its energy consumption by 11% and its water consumption by 10% compared to 2019 levels.
Oregon government holds consultation on new emissions standards for natural gas users
05 August 2024US: The Oregon Department of Environmental Quality is receiving public comment on its revised 2021 Climate Protection Program, under which natural gas users, including gypsum wallboard producers, will face tighter emissions regulations. The programme will enable plants to buy credits for emissions above regulation level, with the money raised primarily going to fund community-based projects. Local press has reported that the revised rules aim to help realise a 50% reduction in CO2 emissions by 2035 and a 90% reduction by 2050. The latest revision also shortens companies’ compliance period from three years to two.
BASF reports results for first-half FY2024
29 July 2024Germany: Chemicals company BASF's sales fell by 19% year-on-year to €37.3bn in the first half of the 2024 financial year (FY2024). Its earnings before interest, taxation, depreciation and amortisation (EBITDA) declined by 34% to €4.72bn. As a result, the company now anticipates full-year sales of €73 – 76bn in FY2024, down from the previously forecast €84 – 87bn. It revised its earnings forecast to €4 – 4.4bn, from €4.8 – €5.4bn previously. At the same time, it increased its anticipated reduction in CO₂ emissions for the year. It now expects to generate 17 – 17.6Mt of CO2 from its operations, down from its previously forecast 18.1 – 19.1Mt.
Europe/US: Tristan Suffys, secretary general of Eurogypsum, the European gypsum association, presented the association’s net zero roadmap at the Global Gypsum Conference 2023 in Chicago, US, on 9 November 2023. Live and online audiences heard Eurogypsum’s full life cycle-based carbon footprint analysis, according to which European gypsum wallboard currently generates CO2 emissions of 2kg/m2, 14% lower than 2008 levels. On its pathway to net zero by a deadline of 2050, Eurogypsum plans to reduce wallboard’s CO2 emissions from raw materials by 13%, from transport by 12%, from production by 69% and from end-of-life processes by 6%.
Suffys said “Presenting our roadmap today in Chicago is a clear signal that global warming requires global action. We want to engage with other regional actors along the way to climate neutrality.”
Eurogypsum president Jörg Ertle added “We are committed to making this transition a reality. First examples show that we can move towards net-zero emission production if we have access to low-carbon energy at affordable costs and optimal raw material supply, but this will require significant investment from our sector.”
US: USG says that the Science Based Targets initiative (SBTi) has approved its 2030 emission reduction targets. The subsidiary of Germany-based Knauf said that it was one of just a few companies in the US building-product sector that has signed onto SBTi. The company has agreed to reduce its carbon emissions from manufacturing (Scope 1 and 2) at the WB-2°C (well below 2°C) level, which equates to a 30% reduction in greenhouse gas emissions by 2030. USG has also committed to reducing carbon emissions associated with purchased raw materials and services, transportation and waste generation (Scope 3) by 15% within the same period.
Etex embarks on Road to Sustainability 2030
23 September 2022Belgium: Etex has launched its new Road to Sustainability 2030 circularity and decarbonisation strategy. The strategy sets out the company’s 2030 ambitions under five headings. Under health, safety and well-being, Etex aims to reach zero fatalities, burnouts or incidents of harm; under customer engagement, it aims to build a sustainable roadmap for each product platform by 2025; under diversity, equity and inclusion, it will extend its policies, procedures and practices across all teams. Meanwhile, under decarbonisation, Etex will reduce Scope 1 and 2 greenhouse gas emissions by 35% compared to 2018, and under circularity it will use over 20% of circular input as raw material, send zero waste to landfill, use 100% recycled packaging and reduce plastic packaging by 20% compared to 2018, offer a product take-back service across 80% of its European markets and dedicate 50% of its innovation resources to sustainability.
Chief executive officer Bernard Delvaux said “Today Etex has sustainability as a guiding compass of business transformation, with concrete objectives that reflect the company’s ambition. We are on an exciting journey towards improving sustainability in the short and long term. We know there is a long road ahead, which is why we invite all our stakeholders to further support us in becoming a leading benchmark in our industry.”
France: SaintGobain says that the Science Based Targets initiative (SBTi) has approved its CO2 reduction targets. The group plans to achieve net zero CO2 emissions, both direct and indirect, along its entire value chain by 2050. This will entail a reduction in CO2 emissions of at least 90% in the three scopes by 2050, with additional sequestration projects planned for residual emissions.
Saint-Gobain's commitments to reduce, in absolute terms, by 2030 from 2017 its direct and indirect CO2 emissions (scopes 1 and 2) by 33% and its scope 3 emissions, mainly linked to purchasing and transport, by 16% by 2030 was already validated in 2020 by the SBTi. The group says it will continue to accelerate its roadmap, notably through improvements in energy efficiency, product weight reduction, increased recycled content and the use of green energies, in order to align its targets with the most demanding trajectory, which limits the rise in temperatures to 1.5°C.
Japan: Chiyoda Ute has reported that it has produced 100% climate neutral and 100% recycled wallboard at its Yokkaichi factory in Mie Prefecture. The company says that, to the best of its knowledge, this is a world first. The board was produced on 1 August 2022.
Speaking about the achievement, Frederick Knauf, Chiyoda Ute’s representative managing director said “We do not know whether another manufacturer has achieved this already on an industrial scale, but it shouldn't matter who was first, as the whole industry needs to come to this point. Being second, third or 25th is the same achievement from my point of view."
Saint-Gobain launches sustainability-linked bond
09 August 2022France: Saint-Gobain has launched a Euro1.5bn bond issue. The issue consists of three Euro500m tranches, with maturities of three, six and 10 years. It is linked to two indicators of Saint-Gobain sustainability targets, namely its progress towards a 33% reduction in Scope 1 and 2 CO2 emissions and an 80% reduction in production waste between 2017 and 2030. The company said that the transaction will enable it to extend the average maturity of its debt with mid to long-term funding.
CFO Sreedhar Natarajan said “Sustainable growth is at the heart of Saint-Gobain’s business model. The issuance of a sustainability-linked bond demonstrates the strength of Saint-Gobain’s commitments set out in its environmental and social governance roadmap. The group aims in particular to tackle the big energy and environmental challenges faced by the world with its contribution to reduce CO2 emissions in its operations, and also decarbonise construction and industrial activities through its sustainable solutions”
Canada/US: Saint-Gobain North America and its subsidiary CertainTeed say they have reduced their CO2 emissions from electricity usage by about a third in 2021 through the use of renewable energy contracts. In February 2020, Saint-Gobain entered into a 12-year virtual power purchase agreement with the Blooming Grove Wind Farm in McLean County, Illinois. At the time, the agreement was the largest renewable energy deal in Saint-Gobain’s 356-year history. Saint-Gobain worked with Edison Energy, an industrial energy advisor, on the arrangement.
“We’re thrilled with the results of our partnership with the Blooming Grove Wind Farm, and will continue to look for ways to maximise our positive impact, for our customers and the communities where we do business, while minimising our environmental footprint,” said Mark Rayfield, the chief executive officer of Saint-Gobain North America and CertainTeed. “In this next chapter of our company’s history, our team will strive to lead our industry towards a more sustainable future.”