THE CHALLENGE

As a leading cement producer in Egypt, Arabian Cement Company, recognised for its global impact and commitment to excellence, faced the critical challenge of balancing profitability and economic performance with the commitment to decarbonization while maintaining profitability and market competitiveness. With the cement industry increasingly under pressure to align with global decarbonization targets, Arabian Cement CEO sought the expertise of A³&Co. to provide strategic support, helping to articulate the challenges the company faced and to prioritize the necessary changes through a structured and economically viable decarbonization strategy that could deliver measurable CO₂ reductions, optimize energy efficiency, and ensure long-term resilience.

THE SOLUTION

A³&Co. carefully assessed Arabian Cement's challenges and formulated a comprehensive decarbonization roadmap designed to achieve decarbonization targets without compromising economic performance.

Our Complete Decarbonization Solution® (CDS®) provided a structured, data-driven approach, integrating:

1. Decarbonization Roadmap Aligned with Strategic Objectives: crafting a Decarbonization Roadmap tailored to client’s capabilities, potential and in line with their strategic objectives, while maintaining compliance with local and international standards.

2. Operational Excellence: Initiatives designed to achieve maximum CO2 reduction based on the current asset design, focusing on operational processes optimized for sustainability.

3. CAPEX Improvements (Maximum 5 Years Investments) up to 2030: Strategic capital expenditures aimed at further reducing CO2 emissions within a reasonable time frame, in alignment with 2030 targets.

4. Major CAPEX Improvements for Net Zero (> 3 Years Investments) up to 2050: Strategic investments in major capital improvements to position the plant for Net Zero emissions, aligning with 2050 targets.

5. Fully Integrated Roadmap with Various Investment Scenarios: A roadmap offering flexibility through various investment scenarios, ensuring adaptability to changing circumstances and market dynamics.

6. Certification Fulfillment: Pursuit of certifications such as SBTI (Science-Based Targets Initiative) and EPD (Environmental Product Declaration) Certificate, reinforcing the company's commitment to transparency and sustainability.

7. Project Management: End-to-end project management, covering feasibility studies, tendering, contracting, execution, and commissioning of decarbonization projects.

8. Carbon Trading Market Register & Support: Expert guidance in navigating carbon trading markets and fulfilling associated requirements, optimizing the company's position in the market.

9. Complete ESG Business Model Implementation: Integration of a comprehensive Environmental, Social, and Governance (ESG) business model, embedding sustainability across all facets of the company's operations.

THE OUTCOMES

The decarbonization strategy led to transformative outcomes:

1. Strategic Alignment: The decarbonization roadmap seamlessly aligned with the company's strategic objectives, positioning sustainability at the forefront of its operations.
2. Operational & Market Gains: Enhanced energy efficiency, reduced operational costs, and strengthened competitiveness in regional and export markets.
3. Future-Proof Investments: Strategic capital expenditures positioned the plant for both short-term and long-term emission reduction goals.
4. Certification Attainment: Successful attainment of certifications affirmed the company's commitment to transparency and sustainability.
5. ESG Integration: Implementation of a comprehensive ESG business model embedded sustainability into the core of the company's operations.
6. Project Success: Effective management and execution of decarbonization projects, including proof of concept and the achievement of performance guarantees.

Key outcomes of the project included:

• EBRD’s Financial Backing for the Roadmap: Creating a financially viable decarbonization strategy backed by data-driven insights, ensuring a structured and actionable pathway toward Net Zero. The European Bank for Reconstruction and Development (EBRD) recognized the roadmap’s impact and provided direct financial support for its development, reinforcing it as a benchmark for industrial decarbonization. (Explore the joint press release)
• €25 Million Loan for Project Implementation – Following the roadmap, EBRD and the EU provided a €25 million investment to execute identified projects, including alternative fuel expansion, energy efficiency upgrades, and process optimization to cut CO₂ emissions by 130,000 tons annually. (Read more)
• Industry-First Clinker EPD – Arabian Cement became the first cement producer to achieve an EPD for Clinker, reinforcing its commitment to transparency and sustainability.

A Proven Model for Cement Industry Decarbonization
This case study stands as a proof of concept for A³&Co.’s Complete Decarbonization Solution® (CDS®)—demonstrating that industrial decarbonization can be strategic, investment-ready, and economically viable. If you are looking to develop a structured Net Zero strategy, or execute high-impact decarbonization projects, A³&Co.® provides the expertise and execution support to make it happen. [Contact us] to explore tailored decarbonization solutions and drive sustainable growth.