Cement industry is closely related to the development of national economy, especially in emerging markets, but it is also one of the main sources of carbon emissions. Siam Cement Group (SCG) and Siam City Cement Company (SCCC), two major cement producers in Thailand, are tackling the carbon reduction challenge from different perspectives.
SCG: Marching into the power sector and laying out the three-stage net zero road
map, the cement production process consumes heat and electricity, which is the key area for emission reduction. SCG mainly replaces coal with biomass and refuse-derived fuel (RDF), and also promotes the cultivation of energy crops such as bamboo and Pennisetum. Its project has attracted much attention in the low-carbon urban sandbox initiative in Saraburi Province, with the proportion of alternative fuel use reaching 28.5% in 2024.
SCG has five major business units. The cement business segment actively adopts green solutions such as solar photovoltaic, smart grid and energy storage, and also enters the renewable electricity retail market through the power purchase agreement (PPA) to achieve rapid access to green electricity, emission reduction and new revenue.
Its low-carbon cement products are upgraded to the second generation, which reduces emissions by 15% -20% compared with traditional Portland cement, and the third generation of products under development aims to reduce emissions by 40% -50%. Its downstream product, ultra-high performance concrete (UHPC), is superior in strength and durability, reducing emissions by 20% -60% compared with traditional concrete.
SCG uses a comprehensive risk management approach to consider macro trends such as economy, society and environment, identifies 16 key risks including regulatory uncertainty in low-carbon transformation, and formulates special management strategies to deal with them. The
group's goal is to achieve net zero emissions by 2050, which will be promoted in three stages: the first stage (2020-2030) will reduce emissions in scope 1 and 2 by 25% compared with 2020, shift from fossil energy to clean energy, and launch low-carbon products; The second stage (2031-2049) focuses on green process innovation, in-depth technology research and development, especially carbon capture, utilization and storage (CCUS) and hydrogen energy technology, while expanding the scale of clean energy systems; The third stage (2050) is to complete the transformation to green manufacturing, adopt negative emission technology based on bioenergy, and enhance the competitiveness of clean technology. In the
2024 Sustainable Development Report, SCG made it clear that CCUS is essential to achieve 48% greenhouse gas emission reduction. It is planned to be implemented in stages, with cost assessment and infrastructure construction carried out first. It is also emphasized that hydrogen energy, oxy-fuel combustion and biochar carbon removal are priority technologies.
SCCC: Siam City Cement Company (SCCC), a smaller company with outstanding
carbon reduction performance by reducing clinker ratio and fuel conversion, has not set a formal net zero target, but aims to achieve three climate-related goals by 2030: first, to reduce net emissions per ton of cement to 470 kg of carbon dioxide; The second is to reduce electricity consumption by 10%, and the third is that 20% of electricity comes from alternative fuels.
According to company data, SCCC has made key progress in 2024, with net emissions falling to 562 kilograms of carbon dioxide per ton, clinker coefficient falling to 69.2%, and thermal substitution rate (TSR) rising to 28%, all exceeding expectations. TSR increased significantly, from 21% to 28%, mainly due to the improvement of waste pretreatment and control from other industries, which improved the thermal efficiency of fuel conversion, and the increase of biomass fuel consumption also reduced the dependence on coal.
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