U.S. Cement Industry Will Spend $685 Million yr. for Air Pollution Control in 2013-15

U.S. Cement Industry Will Spend $685 Million/yr. for Air Pollution Control in 2013-15

The promulgation of tough air toxic rules will cause the cement industry to spend $685 million/yr. for air pollution control equipment over each of the next three years. This is the conclusion reached by the McIlvaine Company in its “Cement Plant and Project Tracking System.”

Equipment Type	$ Millions/yr
Fabric Filter	300
Electrostatic Precipitator	5
SCR	50
SNCR	30
Scrubber	250
Thermal Oxidizer	50
Total	685

The largest expenditures will be for fabric filters. They will be needed to provide better particulate and mercury capture. Substantial investments in scrubber systems will be made in order to meet the HCl limits. In addition to the above listed equipment, there will be substantial expenditures for activated carbon and continuous emissions monitoring systems.

After many rounds of litigation, the cement MACT was promulgated in December 2012. Existing kilns must comply by September 9, 2015. EPA estimates that mercury will be reduced by 93 percent, hydrochloric acid by 96 percent, particulate matter by 91 percent and total hydrocarbons by 82 percent.

Pollutant	Criteria	Existing	New
Mercury	Lbs/million ton of clinker averaged over 30 days	55	21
Total hydrocarbons	PPMV averaged over 30 days	24	24
Organic air toxics alternate to hydrocarbons	PPMV with stack test every 30 months	12	12
Particulate	Lbs/ton of clinker	0.07	0.92
Hydrochloric acid	PPMV averaged over 30 days	3	3

Most of the kilns in the country will make the necessary expenditures rather than shut down. One reason is the improving market for cement. According to the latest forecast from the Portland Cement Association (PCA), there will be an 8.1 percent growth in cement consumption in 2013. The upward revisions reflect adjustments made in light of the recent fiscal cliff accord, recognition of stronger economic momentum and markedly more optimistic assessments regarding residential construction activity.

PCA also upwardly revised its long-range projections for 2015-2017. Annual growth during that period is expected to be as high as 9.2 percent. Cement consumption is dictated by the level of construction activity and by the prevailing cement intensity. While 2017 cement intensity levels remain well below the pre-recession averages and upside risks remain, these risks have been significantly reduced.