EBRD Supports Arabian Cement Company's Green Transformation with Hydrogen Solution
Key Ideas
  • EBRD provides a 5-year EUR 25 million loan to Arabian Cement Company for energy and plant efficiency upgrades, including a low carbon hydrogen injection system.
  • The project aims to reduce 130,000 tons of CO2 emissions annually through the innovative hydrogen injection system and increased alternative fuel capacity.
  • Arabian Cement Company, Egypt's 6th largest cement producer, will benefit from the financing to enhance its sustainability and environmental performance.
  • The Environmental and Social Summary highlights the project's positive impact on decarbonization, environmental permits, and adherence to international standards.
The European Bank for Reconstruction and Development (EBRD) has approved a 5-year EUR 25 million loan to Arabian Cement Company (ACC) in Egypt. The financing will be used to support ACC's energy and plant efficiency capex program, which includes the acquisition and installation of energy-efficient solutions. Notably, the project will feature a low carbon hydrogen injection system, marking a significant step towards reducing CO2 emissions. The hydrogen injection system is a novel technology that enhances combustion efficiency in the kiln, leading to a decreased reliance on fossil fuels. ACC plans to increase its alternative fuel capacity as part of the transition towards greener practices. By implementing the hydrogen injection system, the project is expected to lower approximately 130,000 tons of CO2 emissions annually, contributing to environmental sustainability. This initiative aligns with ACC's commitment to greener operations and supports the company's goal to improve its environmental performance. Arabian Cement Company, established in 2008, is known for its integrated cement production and public listing on the Egyptian Stock Exchange. The EBRD financing will enable ACC to enhance its sustainability efforts and cement its position as a leader in the industry. The Environmental and Social Summary categorizes the project as B (2019 ESP) and highlights the positive aspects of the initiative. Despite associated risks, such as environmental and social challenges specific to the site, ACC has shown a strong commitment to adhering to international standards. The company has an established management system based on various ISO certifications and has obtained all necessary environmental permits. Moreover, the Environmental and Social Action Plan (ESAP) outlines steps for the proper integration of the low-carbon hydrogen system and emphasizes the importance of compliance with Egyptian regulations. The project underscores the importance of continuous monitoring and improvement in emissions control, aligning with EU Best Available Techniques for cement production. Overall, the collaboration between EBRD and ACC signifies a significant advancement in sustainable practices within the cement industry.
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