Australia's Boral wins NSW grant to scale alternative fuels at Berrima Cement Works

Australia's Boral cement has received A$25 million ($16.6 million) in funding from the New South Wales government to support an alternative fuel project at its Berrima Cement Works, the company said in a statement on Dec. 12.

The grant, awarded under the NSW High Emitting Industries program, will support upgrades that allow the kiln's thermal energy to be sourced increasingly from lower-carbon alternative fuels. Boral said the project aims to achieve up to 60% substitution of kiln energy, representing a major shift in the fuel mix at the integrated facility.

Company estimates indicate the project could deliver about 1.6 million mt of cumulative Scope 1 CO2 reductions over its operating life. The alternative fuels are expected to be derived largely from waste streams with high biomass content, diverting roughly 73,000 mt/year of material from landfill.

Berrima Cement Works is a strategically important asset for Boral, supplying up to 40% of cement demand in New South Wales and the Australian Capital Territory. Nearly 35% of the site's Scope 1 emissions stem from fuel combustion, while the remainder is linked to process emissions from limestone calcination during clinker production, according to the company.

Boral CEO Vik Bansal said the funding represents a key step in safeguarding domestic cement manufacturing as Australia tightens emissions rules under the reformed Safeguard Mechanism. He added that trade-exposed industries require "practical and cost-effective" decarbonization pathways to remain competitive amid growing import pressure, reiterating support for a carbon border adjustment mechanism to address potential carbon leakage.

Ali Nezhad, Boral's head of sustainability and innovation, said the project would help build operational and technical capability as the sector transitions toward net-zero targets. He added that Boral plans to share learnings from the project across the industry through workshops and conferences.

The NSW government's grant program is designed to help emissions-intensive manufacturers deploy technologies that can deliver measurable reductions by 2030, supporting longer-term climate objectives while maintaining local industrial capacity.

Several producers and traders across Asia said that cement makers are placing greater emphasis on reducing their carbon footprints.

"Last week, we heard Ambuja Cement in India collaborating with Sweden on a carbon capture and utilization (CCU) project. It seems we are seeing new developments almost every week as cement producers step up their decarbonization efforts," a Southeast Asia–based producer said.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $36.5/mt on Dec. 12, unchanged from the previous week. Platts also assessed cement clinker FOB Vietnam at $31.5/mt on Dec. 12, up from $31/mt FOB the previous week.