TCC Stands as a Pioneer in Carbon Neutrality by 2050

Carbon Dioxide Emission and the Balance of Nature Is the Challenge of Our Cement Industry.

Taiwan Cement Will Do Our Best to Fulfill Our Responsibility and Obligation to Earth.

Nelson An-Ping Chang, Chairman

on “2050 Climate Ambition,” GCCA

September 1, 2020

“The year 2020 marked an unprecedented year.” The abrupt pandemic outbreak that lingers has changed the political and economic orders worldwide while flipping the existing work and living patterns of mankind. On this temporary halt of the global flows, TCC constantly reflects on itself and examines the balance between industries and the environment, learning magnanimity and humility from Mother Nature in the face of all the unknowns and challenges.

According to the latest data from the UNEP, despite a 7% reduction of global emissions in 2020 thanks to the lockdowns, it is estimated that the global warming will still rise above 3°C by the end of this century, which is far from the 2°C in the Paris Agreement, not to mention the 1.5°C threshold strictly adhered to by the Intergovernmental Panel on Climate Change (IPCC). The IPCC has further pointed out that only by achieving Net-Zero globally by 2050 can humanity secure a livable, sustainable future. “Carbon neutrality” thus became a universal keyword.

In conformity to the UN’s climate action, TCC as a member of the global industrial community, has been proactively partaking in the Global Cement and Concrete Association (GCCA). In September 2020, TCC joined 40 pioneering cement companies worldwide in committing to deliver carbon-neutral concrete by 2050. Moreover, TCC is tasked with the mission to provide an integrated viability assessment of the decarbonization for the cement industry in Taiwan and the direction for its transition to a low-carbon development for the 30 years to come.

TCC has committed itself to aggressive carbon-reducing actions and submitted the credible and rigorous Science-Based Target (SBT) in 2019. Following the methodology of the IPCC and the International Energy Agency (IEA), TCC set the carbon reduction targets and pathway with the scenario of a well below 2 degrees Celsius temperature increase.

Passing the scientific review in June 2020, TCC became the first cement company in East Asia that completed its target setting while being ahead of the rest of the companies by around one years. With 2016 as the base year, the Scope 1 emissions intensity (Direct Emissions) shall be reduced by 11%, and the Scope 2 (Indirect Emissions) by 32% by the target year 2025.

To fulfill its SBT by 2025 and carbon neutrality by 2050, TCC has accelerated its progress of AI smart technology. With the AI module, TCC calculates and tracks the products’ carbon intensity, inventories the local resources for carbon reduction, conducts benefit evaluations, consolidates optimal strategies, and constantly adjusts and optimizes solutions, ushering in opportunities via conceptual and technological advancements.

The First Cement Company in Taiwan to Introduce

“Life Cycle Assessment” (LCA)

To understand the carbon emission hotspots and deploy carbon reduction strategies, TCC conducted GHG emissions inventory in line with ISO 14064, calculated carbon footprints of products with ISO 14067, inventorying the potential impacts of cement manufacturing activities from the raw materials to production process, sales, disposal, and recycling. SimaPro, a world-class LCA software, was introduced. Provided systematic training from the Dutch developer, TCC further integrated the software with internal management systems and established models calculating the carbon intensity. To align its carbon reduction targets with the world, TCC established an LCA task force to improve its emission management in manufacturing activities via big data and cloud-based interconnection. By assisting subsidiaries/plants, 79,738 metric tons of CO2e were reduced in 2020 compared to the base year of 2016.

Strategy ①- Utilization of Alternative Raw Materials
TCC treasures natural resources, actively reducing the consumption, mining, and procurement of natural raw materials such as limestone, clay, and silica sand. With the high temperature of 1,300°C in the cement kilns, TCC engages in co-processing to form a circular economy ecosystem with foundries, steel plants, water treatment facilities, and construction companies. Turning waste into harmless reusable resources enables the utilization of alternative raw materials while resolving industrial wastes, thereby leveraging TCC’s core advantage to foster a business model towards a circular economy.

TCC helped process nearly 1.025 million metric tons of wastes in 2020,
which is equivalent to 5% of the industrial wastes in Taiwan.1

1Based on the 19.8 million metric tons of industrial wastes produced in Taiwan in 2020 according to the EPA statistics.
Strategy ②- Utilization of Alternative Fuels
TCC proactively reduces coal use in the cement production process and develops lower-carbon or alternative materials with caloric value like coal ash, sawdust, discarded wood, solid recovered fuel (SRF), and agricultural wastes such as rice hulls. These materials are added according to their respective properties to effectively reduce coal use. By 2025, biomass shall account for 10% of energy consumption. In addition, TCC continues to transform municipal solid waste into resources. TCC assists in ridding garbage piles with cement kilns and advanced gasifiers while utilizing the heat in municipal solid waste as alternative fuels to fulfill the circular economy of cement.

Strategy ③-Waste Heat Recovery
To utilize the heat energy from the cement rotary kilns, all TCC plants are installed with waste heat electricity generation systems while introducing flash distillation technology to enhance heat recovery efficiency. To improve efficiency and achieve the SBT, TCC plans to invest NT$400 million for single-kiln low-temperature waste heat generation technology (with an average net generation of 5,800 to 6,000 kWh per yer), raising the net power generation per metric ton of clinker from 13 kWh to 29 kWh with the benefit of power generation elevated by over 100%. The emission reduction shall reach 13,281 metric tons CO2e per year based on the 2019 electricity EF of 0.509 kg of CO2e/kWh from the Bureau of Energy. TCC generated 119.024 GWh from its waste heat generation in 2020, equivalent to 29% of energy procured thereby in 2020, reducing approximately 60,000 metric tons of CO2.
Strategy ④-Carbon Capture
TCC has been actively invested in carbon capture R&D since 2011, working with the Industrial Technology Research Institute (ITRI) in developing carbon capture in the cement manufacturing process. We aim to expand the current 1.9MWt pilot plant to 10MWt, attaining 100,000 metric tons of CO2 captured per year by 2030.

Strategy ⑤-Equipment & ProcessEnhancements
TCC constantly improves production process, introducing the ISO 50001 Energy Management System, ISO 14001 Environmental Management System, and ISO 14064 Greenhouse Gas Accounting and Verification. The world-class management systems enable TCC to elevate energy efficiency and reduces GHG emissions.
Strategy ⑥-Reforestation
TCC fully leverages the natural ability of trees in carbon sequestration. We consolidate lands adjacent to the plants for afforestation and green belt creation. With the aim of planting 500,000 trees, the transformation into parks is expected to further reduce environmental impacts.
Strategy ⑦-Installation ofRenewable Energy
Electricity accounts for 3-4% of the energy consumed in the cement manufacturing process. TCC has planned to install solar power and energy storage systems on the rooftops of Suao and Hoping Plant with a total capacity of 6,848 kW, which will be completed in phases in 3 years to fulfill our renewable energy obligation.In addition, TCC Green Energy Corporation, a subsidiary of TCC, takes it further by investing more in solar energy and onshore wind power installations. It engaged in diversified renewable energy development like Taiwan’s first joint fishery-solar power plant in Taiwan and geothermal energy. By the end of 2020, the installed capacity in operation was 35.7 MW, with 43.43 MW under construction and 109.2MW in planning. The projected installed capacity by 2021 Q4 is approximately 79.88 MW, with over 129 million kWh of power generated, reducing about 65,815 metric tons of CO2e, equivalent to the annual power consumption of 36,901 households.2

2Based on the latest figure of an average monthly energy consumption of 292 kWh per household in Taiwan in 2018 according to the website of Taipower.

TCC’s Energy Business Development

TCC proactively invests in the new energy industry. In terms of energy generation, TCC completed a power plant at Changhua Coastal Industrial Park integrating wind and solar energy and started developing a joint fishery-solar power plant in Chiayi and a geothermal power plant in Hongye, Taitung. In Hongye Village, we plan to build a geothermal power plant with an installed capacity of 1 MW (i.e., 1,000 kW), which will incorporate the local features to offer a multi-purpose tourism leisure park with hot springs, water activities, and F&B combined. In terms of renewable energy, TCC experiments with all possibilities while assessing investments in the development of oceanic energy unique to the geography of Taiwan.

In terms of energy storage, TCC Green Energy and E-One Moli continue to develop our capacity in energy storage, smart grids, and battery production.

TCC participated in Taiwan’s first large-scale AFC Smart Storage System with 5 MW of installed capacity, which achieved grid connection in April 2021. By modulating power in a second, the system can resolve the intermittency issue of renewable energy, improving the stability and effectiveness of renewable energy utilization in Taiwan.

As for the R&D and investment in large power cells, the Board of TCC passed a resolution allocating NT$10 billion, planning to establish the first super battery factory in Kaohsiung, With the focus of advanced nickel ternary batteries high in capacity and cycling performance, its annual production capacity is expected to be 1.8 GW, equivalent to the volume of long-distance batteries needed for the annual production of 24,000 electric vehicles. Moreover, we have also invested in the electric bus improvement programs in Taiwan.

TCC Supports Ocean Waste Removal Projects

“AZURE” is a team of Taiwanese youth, dedicated to building the “vacuum cleaner” that can remove 70 kg of ocean wastes per day. E-One Moli Energy Corp. sponsored the team with the state-of-the-art lithium batteries often seen on sports cars to jointly bring the vision of zero ocean waste to life.