Hello! I would not bet on saying yes to the first question. But anyways, I think even by mixing with conventional cement the builders gets carbon credits and reduces its carbon footprint.
For the unit costs, they use industrial waste, they recently signed a contract with the largest paper recycler in France, so its kind of bulk raw material. They don't disclose separate segments for now, so it's difficult to know unit costs without asking. One point is that the Hoffmann product is manufactured in a cold environment, so no need to burn things during hours, that reduces energy costs a lot. Hoffmann is selling at a premium price compared to Portland CEMI type, at 160€/t.
For the third question, Builders, distributors etc. at least in the EU, are incentivized with the carbon credits they earns if they don't reach the carbon emission cap. But, The EU has a system called the EU ETS that limits how much CO2 companies, like those making cement, can emit. It gives them a set number of permits to pollute, and each year, it reduces these permits by 2.2%. Fewer permits mean companies have to buy more if they emit a lot of CO2, and these permits are getting more expensive—over €100 per ton in 2023 and likely going up. Hoffmann's is not affected by this costs given its 5-fold less carbon footprint than traditional cement producers.
Thanks for the piece!
A few questions jump out at me:
1. Is Hoffman "cement" a 1-for-1 replacement for Portland cement?
2. What is unit cost compared to conventional cement?
3. Do sales rely on the green angle? Are any government subsidies/regs involved, either directly or indirectly?
Hello! I would not bet on saying yes to the first question. But anyways, I think even by mixing with conventional cement the builders gets carbon credits and reduces its carbon footprint.
For the unit costs, they use industrial waste, they recently signed a contract with the largest paper recycler in France, so its kind of bulk raw material. They don't disclose separate segments for now, so it's difficult to know unit costs without asking. One point is that the Hoffmann product is manufactured in a cold environment, so no need to burn things during hours, that reduces energy costs a lot. Hoffmann is selling at a premium price compared to Portland CEMI type, at 160€/t.
For the third question, Builders, distributors etc. at least in the EU, are incentivized with the carbon credits they earns if they don't reach the carbon emission cap. But, The EU has a system called the EU ETS that limits how much CO2 companies, like those making cement, can emit. It gives them a set number of permits to pollute, and each year, it reduces these permits by 2.2%. Fewer permits mean companies have to buy more if they emit a lot of CO2, and these permits are getting more expensive—over €100 per ton in 2023 and likely going up. Hoffmann's is not affected by this costs given its 5-fold less carbon footprint than traditional cement producers.