Cement: Background and Low-Carbon Production

Cement: Background and Low-Carbon Production

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November 3, 2023
Cement: Background and Low-Carbon Production
Though cement and concrete are often used
interchangeably, they are two different yet related
U.S. Production, Consumption, and Use
materials. Concrete is the finished composite that contains
In 2022, the United States produced 95 million MT of
cement, along with other ingredients, with extensive use in
cement, making it the fourth-largest producer, representing
the built environment in buildings, bridges, dams, and
2% of the 4.1 billion MT produced globally. China is the
roads. Concrete is the world’s most consumed material after
world’s largest cement-producing country, accounting for
water, and global demand for one of its necessary inputs—
more than 50% of global supply.
cement—is expected to increase from 4.2 billion metric
tons (MT) today to 6.2 billion MT by 2050.
In 2022, the United States imported 25.1 million MT of
cement, supplying 21% of the U.S. market, which totaled
Cement manufacturing contributes approximately 7% of
120 million MT. The U.S. Geological Survey indicates that
global carbon dioxide emissions, making it one of the
between 2018 and 2021, the four largest import sources of
highest-emitting industrial sectors. Given the size of the
cement were Canada, Turkey, Greece, and Mexico, in that
global cement sector, its transition to low-carbon
order, accounting for a combined 75% of total cement
production is expected to play an important role in reducing
imports. Over the past decade, U.S. cement consumption
the industry’s global carbon dioxide emissions.
increased each year. U.S. cement production also increased
yearly, albeit at a slightly slower pace (Figure 2).
The Cement Manufacturing Process
Cement production begins with the mining of materials,
Figure 2. U.S. Cement Production and Consumption
such as iron ore, limestone, and shale. Once quarried, these
Mil ion metric tons
materials are mixed together, placed in a kiln, and heated at
extremely high temperatures (approximately 2700oF),
yielding what is called clinker—small grey balls roughly
the size of marbles. Cement mills then grind clinker down
to a fine power and mix in additives to produce cement.
Cement comprises 10%-15% of concrete mix (Figure 1).
Figure 1. Cement Production Chain

Source: U.S. Geological Survey, Mineral Commodity Summaries,
“Cement Statistics and Information.”
Demand for cement is cyclical and depends on the level of
new construction—an interest-rate sensitive sector. Ready-
mix concrete producers account for up to 75% of the
industry’s annual shipments. Ready-mix concrete is used in
varied construction and infrastructure activity (e.g.,
industrial, residential, and transportation-related). Recent
data trends in demand for cement have provided conflicting
results. For example, U.S. durable goods shipments of
nonmetallic mineral products—an indicator of cement and
concrete demand—rose 1.8% year-to-date in September
2023, compared with the same period in 2022. By contrast,
the value of U.S. residential construction spending—

another determinate of demand for building materials—fell
Source: CRS from Ankit Kalanki and Dongyi Wang, “Bringing Low-
2.1% year-to-date in September 2023, compared with the
Carbon Cement to Market,” Third Derivative, June 30, 2022.
same period in 2022.

Economic forecasts from the Portland Cement Association
(PCA) estimate cement demand to decline 2.9% through
2023—the first time in over a decade—as the U.S.
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Cement: Background and Low-Carbon Production
economy is gradually weakening based on a tightening of
consultancy firm McKinsey & Company estimates that
monetary policy. PCA expects cement consumption to
expanding low-carbon cement production capacity,
rebound by 1.4% in 2024 and continue to rise consecutively
combined with CCUS equipment, could increase the cost of
each year through 2028.
the average ton of cement by 45% in 2050 relative to today.
Cement is a basic commodity product, which means the
Government Initiatives and Programs
industry’s customers are generally price-sensitive. Prices
P.L. 117-169, commonly referred to as the Inflation
fluctuate due to changes in supply and demand and are also
Reduction Act of 2022 (IRA), contains several provisions
affected by general economic conditions. Cement prices, on
that seek to reduce the carbon intensity of U.S.
a tonnage basis, have increased in recent years in the United
manufacturing. For instance, IRA provisions support
States from $121 in 2018 to $142 in 2022, a 17% rise. High
federal government plans to leverage its buying power to
production costs and increased demand have contributed to
help establish a market for low-carbon construction
rising cement prices.
materials. Other IRA provisions support efforts to
decarbonize several energy-intensive industrial processes,
Low-Carbon Cement
including for cement and concrete.
The chemical reaction inherent in cement making—
calcination to produce clinker—accounts for about 60% of
IRA provided funding for a $2.15 billion pilot procurement
the industry’s carbon emissions. The remainder comes from
program to purchase low-carbon materials in federal
direct and indirect processes (e.g., fossil-fuel combustion
projects. In May 2023, the U.S. General Services
and energy use). Kilns and precalciners consume around
Administration (GSA) announced this six-month pilot, the
90% of the energy used in cement manufacturing.
Low Embodied Carbon (LEC) Material Requirements Pilot
Program. The pilot program will apply GSA’s interim LEC
Several present strategies aim to reduce emissions in
material requirements into procurement for 11 GSA
cement manufacturing. One strategy involves innovative
construction and modernization projects. GSA’s interim
chemistry, which seeks to increase the share of
requirements are based on the Environmental Protection
supplementary cementitious materials (SCMs) in cement
Agency’s interim determination, which set global warming
production and the use of less carbon-intensive alternative
potential limits for four LEC products: asphalt, concrete
binding materials. Globally, the clinker-to-cement ratio is
(and cement), glass, and steel.
more than 70% and higher in the United States. Reducing
the clinker-to-cement ratio is one aspect of cement
IRA also created a new Department of Energy venture, the
decarbonization. For example, blended cements reduce the
Advanced Industrial Facilities Deployment Program, that is
clinker-to-cement ratio by substituting clinker with SCMs,
to provide funding (up to $5.8 billion) for producers to
to include calcined clay, limestone, fly ash, blast-furnace
retrofit and upgrade their operations. Cement producers are
slag, or silica fume. Availability of some of these industrial
one of several industrial manufacturers that are eligible to
byproducts—notably fly ash and blast-furnace slag—may
receive financial assistance.
decline should these industries decarbonize themselves.
The federal government and some state governments have
LC3—limestone calcined clay cement—is blended from
cooperated to promote low-carbon construction materials.
limestone, clinker, and calcined clay. LC3 technology
In March 2023, as part of the Federal Buy Clean Initiative,
developers assert it could reduce carbon emissions in the
the Federal-State Buy Clean Partnership was created with
cement production process by up to 40%. The developers
commitments from 12 states. These states have committed
also assert that LC3 is cost-effective and would require
to prioritize efforts that support the procurement of low-
minimal capital investments at existing cement mills.
carbon construction materials (including cement and
concrete) in state-funded projects and to collaborate with
Potential technical challenges to decarbonizing cement and
the federal government to help establish demand for such
concrete production remain. For cement that incorporates a
goods.
higher share of SCMs and alternative binding materials,
questions remain about meeting durability and performance
As cement manufacturing is both a carbon- and energy-
requirements in certain construction applications, cost-
intensive industrial process, Congress may also consider
effectiveness of the process, and costs of conversion of
creating a federally led research program designed for low-
existing facilities.
carbon cement. For example, the CHIPS and Science Act
(P.L. 117-167), enacted in August 2022, established a
Another strategy that may help decarbonize cement
research and development program specific to low-
manufacturing—specifically in addressing process-related
emissions steel manufacturing. The program—led by the
emissions—is carbon capture, utilization, and storage
Department of Energy in collaboration with partners across
(CCUS). Although CCUS is deemed a mature technology
academia, industry, and government—is in its early stages
in certain contexts, its current use in cement manufacturing
of deployment. Lessons learned from any economic or
is limited by economic challenges, namely high capital and
technical successes arising from the steel program might be
operating costs for individual U.S. plants.
applied to cement, such as incentivizing alternative fuels for
heat combustion and studying the effectiveness of CCUS
Cement decarbonization is likely to require capital
use.
investments in processes and technologies that reduce fuel-
related and process emissions. An analysis by the
https://crsreports.congress.gov

Cement: Background and Low-Carbon Production

Christopher D. Watson, Analyst in Industrial
Organization and Business
IF12526

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