Vicat Group's carbon capture project funding canceled by US Department of Energy

French cement, aggregates and concrete producer Vicat Group announced on June 3 that the US Department of Energy's Office of Clean Energy Demonstration has canceled its funding agreement for the carbon capture storage Lebec Net Zero project, which was signed on Dec. 4, 2024.

This decision is said to be part of a broader announcement involving the termination of 24 awards issued by the DOE and comes at an early phase of the LNZ project, which aimed to pioneer advancements in carbon capture technologies within the cement industry.

When the agreement with the DOE was announced in December 2024, it was stated that the deal would commit up to $500 million, contributing up to 50% of the phase 1 cost to finance the project. The LNZ project would include the construction of a CO2 sequestration facility, known as carbon capture and storage, with an annual capacity of around 950,000 mt of CO2, which would account for almost all the cement plant's emissions.

The Vicat Group said the announcement "does not call into question Vicat's commitments to decarbonization," as the group "has committed to reducing its direct specific carbon emissions to 497 kg CO2 net per ton of cement equivalent, and 430 kg CO2 net per ton of cement equivalent in Europe."

"This objective is solely based on existing proven technologies, including energy efficiency, alternative fuel substitution, and clinker rate reduction, and does not rely on any technological breakthroughs, such as carbon capture and storage," Vicat said in the statement.

Vicat is a player in the mineral and biosourced building materials industry, operating in cement, ready-mixed concrete, and aggregates. The group generated consolidated sales of Eur3,884 million in 2024 and has a presence in 12 countries.

Contacted by Platts, Vicat claimed not to have any further comments on this subject.

Platts, part of S&P Global Energy, last assessed CEMDEX Turkey at $54/mt and Cement Freight Med to Houston at $21/mt on May 29.