The UK Mineral Products Association (MPA) has criticized the lack of government plans that balance the demand for sustainable housing with the planning of key resources such as aggregates, cement, and concrete. In the case of cement, the MPA warns that the lack of competitiveness bears worrying similarities to the crisis that has affected the British steel sector.
The MPA warns that the British cement industry faces similar issues to those of the steel sector, such as rising energy costs, the threat of carbon leakage, and deindustrialization. Dr. Diana Casey, MPA’s Executive Director of Energy and Climate Change, noted that the government’s steel plan reflects concerns shared by the cement sector, particularly regarding energy cost competitiveness. Although the UK has capped energy prices, its dependence on external sources has exposed the industry to significant increases, while demand for clean energy continues to rise with the transition to electrification and carbon capture.
The UK ended coal-fired power generation in October 2024, but the cement industry still requires an abundant supply of clean energy at competitive prices. In recent years, the country has made progress in its transition to renewable sources, with wind power being its main resource, while solar, biomass, and hydropower have had a more limited contribution. Despite the growth of renewable energy, the UK remains reliant on natural gas and nuclear power to supplement its energy supply.
An analysis of the UK cement sector reveals the MPA’s concerns about its vulnerabilities. In its 2024 annual report, Breedon announced plans to develop three new renewable energy projects. The company highlighted its strategy in the United Kingdom and the Republic of Ireland, based on securing the majority of its energy and carbon needs at least one year in advance, complemented by longer-term phased purchases. This approach seeks to provide short-term cost stability, particularly for its cement plants in the country.
Breedon has stepped up its investments in energy infrastructure in recent years, reflecting its commitment to sustainability and operational efficiency. In 2024, the company allocated £23.4 million to tangible capital investment projects, a significant shift from 2023, when no investments were made in this area. These initiatives include the import of alternative feedstock (AFM) from its slate mines in Wales, the implementation of a new primary crusher at Hope Cement, and the development of a solar farm at the Kinnegad plant. With these investments, the company seeks to strengthen its energy resilience, optimize costs, and advance its emissions reduction targets. The UK government is aware of the additional pressure the cement sector faces to maintain production levels close to full capacity while advancing its decarbonization process. However, government funding for initiatives such as carbon capture and decarbonization could be at risk as the new UK administration seeks to manage the budget deficit and more rigorously scrutinizes environmental spending.
Currently, the Industry Energy Transformation Fund (IETF) has $63.3 billion to promote low-carbon technologies, reduce energy costs, and facilitate the transition to more sustainable practices across 25 projects. One of the most significant for the cement sector is the 0.8 Mta carbon capture and storage project at Heidelberg Materials’ Padeswood plant, part of the HyNet industrial cluster. Following the completion of its regulatory consultation, Padeswood is expected to become a net-zero emissions plant in 2028, producing carbon-capture cement under the evoZero brand.
Government support has been key to the development of Padeswood’s carbon-capture unit. In October 2024, Heidelberg Materials UK highlighted the importance of this support, stating that investment in this technology is a clear signal of the government’s commitment to transitioning British industry to a low-carbon future. The company emphasized that producing carbon-capture cement by 2030 represents a significant step forward for the sector.
Source: cemnet.com
