The North America division of Germany’s Heidelberg Materials (ETR: HEI) is making strides toward becoming a leader in sustainable cement production, following the completion of its $600 million cement plant in Mitchell, Indiana last year.
As the second-largest cement plant in the U.S., it has significantly increased Heidelberg’s production capacity. Now, the company is set to pioneer carbon capture and storage (CCS) technology in the industry.
Earlier this year, Heidelberg secured a $500 million grant from the U.S. Department of Energy (DOE) to develop a CCS system at its Mitchell plant.
This month, the company finalized its agreement with the DOE, outlining the use of multiple interconnected grants.
If successful, the Mitchell plant could become one of the world’s first full-scale cement facilities with a carbon capture system by 2030.
Carbon capture is essential for achieving net-zero cement production, which leads to more sustainable concrete, Jeff Sieg, Heidelberg’s Director of Corporate Communications, told Inside INdiana Business.
“Ultimately it’s a differentiator for the company,” Sieg said, explaining that the Mitchell plant could position Heidelberg as the only U.S. producer to provide net-zero cement.
Relevant: Heidelberg Materials Finalizes Award Contract With DOE For Mitchell Cement Plant
The CCS project is expected to cost over $1 billion and aims to capture 2 million tons of carbon dioxide (CO2) annually, preventing it from entering the atmosphere.
The construction will create thousands of jobs, with up to 30 permanent positions once the plant is operational.
The facility, though compact in appearance, will feature extensive underground infrastructure.
Heidelberg plans to build the CCS plant adjacent to the existing cement facility, allowing for efficient transport of CO2.
Additionally, the company plans to leverage the geological conditions at the Mitchell site to store the captured carbon directly underground.
Heidelberg’s Vice President of Sustainability, Greg Ronczka, explained that having already made a significant investment in a brand new plant, it made sense to align it with another major investment in a carbon capture facility.
The Illinois Geological Survey is currently assessing the feasibility of on-site CO2 storage at the Mitchell facility.
Read more: Heidelberg Materials Announces Milestone With The Edmonton Carbon Capture Project
The DOE funding is part of a broader $6 billion initiative by the Biden administration to reduce carbon emissions across various industries.
Heidelberg is also pursuing a similar CCS project at its Edmonton plant in Canada, as part of its goal to achieve carbon neutrality by 2050.
The Mitchell plant aims to reach this target by 2030, with two years of design work and three years of construction ahead, Ronczka said.
According to the executive, Heidelberg is seeking additional grants, tax incentives, and other funding sources to complete the project.
