Towards an increasingly sustainable cement production

In Latvia, the only cement producer SCHWENK Latvija has installed the first CO₂ capture demonstration unit at the Brocēni cement plant. In order to attract additional funding, the company has applied for support from the European Union (EU) Innovation Fund and emphasizes that it will benefit not only itself, but also the state and the climate.

Global scale

Although the project with the support of the fund is planned in Latvia, the context is much wider. According to the 2016 Paris Climate Agreement, carbon dioxide (CO₂) emissions must be reduced to the extent necessary to limit global warming to below 2°C, but preferably below 1.5°C compared to pre-industrial development. Latvia, like all European Union countries, has signed this document. This agreement results in a Europe-wide strategy, the EU Green Deal, which aims to reduce emissions by 55% by 2030 compared to 1990. By 2050, the goal is to achieve climate neutrality.

One of the sectors where CO₂ emissions need to be reduced is industrial production. In this regard, the EU has introduced a Clean Industrial Deal program, which aims to boost industrial competitiveness while promoting decarbonisation. In Latvia, these goals are defined at the national level by the National Energy and Climate Plan for 2021-2030.

SCHWENK Latvija Brocēni cement plant is the largest CO₂ emitter in Latvia. The amount of these emissions reaches 800 thousand tons per year, or about 8% of the country's total CO₂ emissions. One of the best-known manufacturers of building materials in Europe, the German company SCHWENK acquired the Broceni cement plant along with other assets of the company in Northern Europe in 2019. Similar to Germany, in Latvia the company strives to develop almost zero emissions and sustainable production of building materials. Therefore, applying for EU Innovation Fund funding is in line with both global and local policies and company objectives.

Carbon capture – innovation around the world

The development of carbon capture developed by SCHWENK Latvia at the Brocēni cement plant will be a unique project not only in Latvia, but also on a wider scale. Currently, SCHWENK Latvija is the first manufacturer in Latvia that is already testing carbon capture equipment under plant conditions.

Evita Gosa, Member of the Board of SCHWENK Latvija, Environment and Legal Director, points out that the most emission-intensive element in production is clinker, which is the main component of cement. In the production of clinker, limestone is mainly used – in the amount of 85%. Among other components are clay, sand and, to a small extent, other raw materials. In the production of cement, the mixture of all raw materials, together with the fuel, is burned in a rotary kiln at 1500 – 2000 °C, obtaining clinker. When it is ground and added gypsum or other additives, cement is formed. Two-thirds of emissions come from the combustion process, while one comes from fuels. In this regard, however, the situation is relatively better, because since 2010, when the cement plant was commissioned, fossil fuels – natural gas and coal – have been replaced by alternative fuels, improving every year. The most widely used type of alternative fuel is solid recovered fuel (SRF), which consists of sorted municipal and industrial waste. In addition to it, crushed worn-out tires and tire fluff are also used. For several years, SCHWENK Latvia also used neutralized polluted soil (NPS) in the production process, participating in the remediation of Inčukalns sulfuric acid tar ponds.

Thus, explains E. Gosa, the current task is to reduce the impact of the other two-thirds, or clinker production, on the climate and the environment. This can be done by partially replacing clinker with various additives, thereby reducing its proportion. However, there is also a challenge here: the properties, quality and strength of cement as defined in the standard must be maintained.

Krists Mertens, Director of Decarbonization and Energy Projects at SCHWENK Latvia, adds that although active work is underway on the development of innovative construction materials, basic raw materials cannot be completely replaced in cement production at the moment, while preserving its basic properties, so there is nothing left but to look for other solutions to limit the amount of emissions into the air. "Carbon capture technologies are currently developing rapidly and are seen in Europe as the primary solution for the long-term decarbonisation of CO₂-intensive industry". In practice, the process, of course, is not so simple. The carbon capture system consists of several separate parts, including sections specially designed for it for the characteristics of a particular plant. Part of the equipment will be ordered and delivered from developers of these technologies abroad, but some elements will be produced here even on site, in Latvia. It is planned to transfer the maintenance of the plant and equipment after the implementation of the project to previously trained employees and contractors of the company itself, thereby ensuring the development of new jobs and competencies.

CO₂ can potentially become the basis for a new value chain

The long-term vision is that CO₂ becomes the basis for a new value chain. For example, when it is used in the production of synthetic fuels or in other industries. Currently, these industries are in the very early stages of development and available technologies, such as aviation or ship fuel production, generate a lot of emissions. Consequently, the objective of overall emission reductions would not have been achieved. Therefore, the solution in many countries is currently to store CO₂ in the depths of the earth. SCHWENK Latvia is actively working on identifying various options and exploring the CO_2.

There are currently no CO₂ storage sites in Latvia, but the Law on the Subsoil provides for the possibility to create such sites from 1 July 2025. This opens opportunities for extensive study of geological structures to ascertain their practical suitability. The development of a potential storage site is a long process, since there are high safety requirements in the industry. In this sense, K. Mertens once again points out the uniqueness of the project, which has no similar ones: "CO₂ is topical everywhere and there is no example that can be looked at." In addition, the project is unique not only for cement manufacturers, but also for state institutions and scientists. Latvian institutions are also gradually getting acquainted with such an innovative project, adapting the requirements of the law, while Latvian researchers – gaining unprecedented experience.

EU Innovation Fund: essential support for development

SCHWENK Latvia submitted a multi-month application to the EU Innovation Fund in April 2025. The application of about 1000 pages was attended not only by specialists of the company, but also by scientists and other experts.  Support from the EU Innovation Fund will be very important in the implementation of the project, while the initial engineering project is already being developed, there have been various tests, as well as negotiations with potential installers of the equipment and developers of CO2 storages.

K. Mertens explains that SCHWENK Latvia chose the EU Innovation Programme, which is administered in Latvia by the Investment and Development Agency of Latvia (LIAA), because it supports the introduction of green and innovative technologies. The company applied in the category of large industrial projects. The total investment of the project is estimated at at least €500 million and part of it could be covered by the EU Innovation Fund. "If, after evaluation, our project receives sufficient support, it will be considered innovative and mature enough from the point of view of the financial perspective, then if we receive the requested support in full, without changing the overall calculation of the project, we can receive support in the amount of 150 million from the Innovation Fund. The rest is their own investments," says a company spokesman.

The evaluation of the project will be known in November. If the decision is positive, the company will enter a contract with the LIAA, and the work will continue. In case of a negative answer, the company will evaluate whether to submit the project with corrections again.

Also, customers require cement with a lower CO₂ footprint.

SCHWENK Latvia confirms that more environmentally and climate-friendly cement production is not only the result of the company's sustainability efforts and global contracts, but also a requirement of customers. 70% of the cement produced in Brocēni is exported by the company to the Nordic countries. But there, demand is growing for cement, which has produced fewer emissions. If SCHWENK Latvia did not respond to these demands, then the company would start losing the market, admits E. Gosa. "Either we jump on this train, or we don't," says Mr. Merten.

The development of carbon capture is not only a climate and environmental, but also a business project. Even if SCHWENK Latvia does not receive 150 million euros of support, the company will develop carbon capture because the market requires it. "It's a matter of reputation. Who will implement decarbonisation more effectively? There is no question of not doing it! The question is: who is faster, better, more!" emphasizes E. Gosa. She also adds that Nordic customers have confirmed that they are willing to buy cement produced in Brocēni at a higher price, which will be after carbon capture.

The company hopes that if SCHWENK Latvia receives support from the EU Innovation Fund, it will be positive for the whole of Latvia. Firstly, the volume of emissions in Latvia will decrease by about 8%. Secondly, such a project in reducing emissions is cheaper compared to, for example, replacing the entire Latvian car fleet with electric cars.