Energy and Co-processing

Value Chain Boundaries

Impacts of this topic reach Argos’ procurement processes and the supply chain.Supliers
Impacts of this topic are evaluated throughout all Argos operations.Argos
Impacts of this topic reach our industrial and/or retail clients.Clients
Impacts of this topic reach our communities, authorities and other individuals of the society.Society

Our management approach

Added value to the company

Heat and electricity are critical inputs for our production processes and managing them efficiently and substituting conventional fuels with alternative ones allows us to reduce the use of natural resources and minimize costs and net CO2 emissions.

Added value to society

Through energy stewardship and co-processing, we contribute to society by reducing environmental impact and reducing non-renewable resource use. The value to society for 2016 derived from avoided CO2 emissions due to fossil fuel substitution was estimated at USD 6.8 million in our Value Added Statement – VAS. For further details click here.

103-2 Initiatives, commitments, and policies


Cement Sustainability Initiative

Sustainability Policy

Low Carbon Technology Partnership Initiative

Environmental Policy

Energy Policy

103-2 Governance


Sustainability and Corporate Governance Committee

Energy Committee

Sustainability
VP

Environmental Corp Director and Managers

Regional
VP

Environmental Regional Directors and Managers/plant Director

Technical
VP

Strategic Resources Director and Managers

Innovation
VP

Alternative Resources Director and Managers

2016 performance

  • In order to meet our 2025 target, in 2016, we increased the substitution of fossil fuel with alternative fuel, achieving a total substitution of 6.8% at a company level.
  • Through the implementation of energy roadmap projects, as well as other initiatives, the company was able to move toward energy consumption reduction across its three regions (see internal energy consumption graphs and reduction of energy consumption table).
  • In 2016, at Rioclaro plant’s line 2, we successfully achieved a 6% alternative fuel heat consumption substitution with used tires.
  • Argos Newberry plant in the USA received EPA Energy Star certification.
Upcoming challenges
  • To minimize the energy intensity of our operations, with emphasis on cost stability, quality, and supply at a reasonable risk, across our three businesses.
  • To scale up the use of alternative fuels, in the cement industry while taking into account availability, quality, pre-treatment, and collection routes.

A-ENE1 Substitution of fossil caloric consumption with alternative fuels

We increased the substitution of fossil fuel with alternative fuel, achieving a total substitution of 6.8% at the company level.

A-ENE1 Internal energy consumption

Cement
Consumption of energy (GJ) Millions

201633.5
201537.2
201433.9
201327.5

Concrete
Consumption of energy (GJ) Millions

20161.1
20152.1
20141.2
20130.8

Energy Generation
Consumption of energy (GJ) Millions

20166.1
20156.6
20147.4
20136.2

Aggregates
Consumption of energy (GJ)

55,440
40,457
37,146
35,361

302-3 Cement energy intensity GJ/t

20162.96
20153.03
20143.05
20132.86
Note: This indicator includes all fuels and electrical energy consumed from the moment of extraction at the mine to the time of cement packaging

302-4 Reduction of energy consumption

Baseline year
Reduction in energy consumption in MJ by 2016
Type of consumption
Colombia - Energy roadmap thermal efficiency projects
2015
116,628,530
Fuel
Colombia - Energy roadmap electrical efficiency projects
2015
121,149,837
Electrical energy
CCA - Energy roadmap thermal efficiency projects
2015
19,099,290
Fuel
CCA - Energy roadmap electrical efficiency projects
2015
36,172,469
Electrical energy
USA - Energy roadmap thermal efficiency projects
2015
209,132,856
Fuel
USA - Energy roadmap electrical efficiency projects
2015
62,027,413
Electrical energy
Argos Total
564,210,396
2016 Goal tracking
···
· We continued to work on initiatives that enable us to increase the co-processing of tires and other alternative fuels.
· We continued to implement projects that contribute to decreased energy use in order to reach the goals established by our Energy Policy.
· We continued to monitor and analize different sources of energy that enable us to optimize and ensure the necessary energy resources for our business.
· We continued the study of additives in order to reduce the clinker/cement factor and reduce the consumption of electrical energy in the process.
2017 Goals
  • We will continue implementing energy roadmap projects that are aligned with the Argos Energy Policy.
  • We will increase our alternative fuels consumption at our Rioclaro and Newberry plants (Colombia and USA, respectively).
  • We will start using alternative fuels in the Cartagena plant in Colombia.
2025
  • We will reach 18% of heat consumption substitution from the use of alternative fuels.
  • We will decrease heat consumption by 10% and electricity consumption by 15% (2013 baseline).