Hello, and welcome 👋 to the second edition of Concrete Change. The cement industry is stuck between a rock and a hard place. As the cement industry continues to evolve, the pressure to decarbonize is intensifying. Yet recent market tumult triggered by tariffs and an overall slowdown in volumes has caused chaos for businesses.
Meanwhile, there’s a breadth of innovative projects that demonstrate how new market entrants are not only shaking up the cement industry, but securing investments to drive change. Keep reading to get my take on some novel solutions at play in the U.S. that could shake up the industry.
What a difference a year makes
Let’s look back at the state of the cement industry just 12 months ago. In the spring of 2024, volumes were up, the federal government had just announced approximately $1.5 billion in funding for a variety of cement decarbonization projects, and increasing demand gave cement companies the opportunity to raise prices, allowing their stock prices to soar.
Fast forward to today. Volumes have slowed down just as tariffs placed on some of the United States’ closest trading partners have caused a slowdown in the building sector and a rise in cement prices. To boot, companies like Heidelberg that were moving forward with decarbonization projects had their funding rescinded in the name of ‘efficiency,’ costing more than 1,000 jobs and a backwards step in industrial innovation.
How will these dynamics impact the cement industry? In past recessions, a drop in volume led to a price decline. Should a similar dynamic play out today with private demand slowing down and the threat of a data center ‘bubble’ undermining that demand further, cement companies will be forced to become more responsive to the market demand of states like California, Michigan, Minnesota that increasingly values low-carbon cement materials for government-backed infrastructure projects.
Piloting novel solutions: Leading the charge in low-carbon cement
The cement industry is embracing new solutions to address its carbon footprint, with Supplementary Cementitious Materials (SCMs) such as fly ash, slag, and calcined clay leading the way. These materials are playing a crucial role in reducing emissions by replacing clinker, the carbon-intensive ingredient in traditional cement production. Here’s a snapshot of four case studies that demonstrate the effectiveness of these alternatives:
- The Minnesota Department of Transportation tested 35 low-carbon cement mixes, including SCM blends, along Interstate 94. The results showed that one mix reduced cement content by 12.5% and increased concrete strength by 32%.
- Fortera, a key player in the low-carbon cement space, is also scaling its operations rapidly, securing investment to expand its technology. The company’s product emits 70 percent less CO2 than the conventional ordinary Portland cement, and recently supplied 15 metric tons of it for Simpson University Simpson University’s new Veteran Success Center (VSC) and STEM program facilities.
- Harvested fly ash is having a moment, with the humble but mighty SCM making up 40-50% of the concrete used to rebuild the eastern span of the Bay Bridge in California. Other notable mentions of substantial fly ash use include the W Philadelphia Hotel in Philadelphia, Pennsylvania, the Burj Khalifa in Dubai, and Bank of America Tower in Houston, Texas.
- The first project in North Carolina to use Type IL cement marked a major step toward lowering the carbon footprint of infrastructure development. Roanoke Cement Company was instrumental in the I-40/I-77 Concrete Paving Project in Iredell County, NC. This was the first NCDOT project to incorporate Type IL cement, and it’s estimated the project reduced carbon emissions by 2,647 tons compared to using Type I cement.
Fun fact: Thanks to its salt-resistant properties and greater strength, fly ash can help prevent both cracking of the cement when it is submerged in salt water and can prevent salt from entering the final concrete product long term.
These pilot programs and case studies underscore that SCMs are already being used in real-world applications, proving that low-carbon cement is viable and also superior in many respects.
What I’m Reading
- Mother Jones: Cement is a carbon bomb, and Trump just made it harder to defuse
- ESG News: Heidelberg Materials Gets Green Light for $522M UK Carbon Capture Cement Plant
- BlueGreen Alliance: 2025 Manufacturing Roadmap
- Real Clear Energy: Policymakers Should Pursue Stronger Construction to Save Lives, Homes, Long-Term Spending
- ICAP: Emissions Trading Systems map
Key question: This is what I’ve been noticing lately, but I’m curious to hear from you. How do you think these changing dynamics will impact the cement industry? Share your thoughts in the LinkedIn sidebar.
That’s it for today. We’ll be back next month with more. In the meantime, check out more thoughts on how emerging SCMs are essential to building a sustainable concrete market that is affordable, accessible and climate-safe, and how regions like sub-Saharan Africa can avoid emissions-intensive supply chains to produce SCMs with locally available materials.
Thanks,