Boral secure funding for Berrima alternative fuel project
A$25 million grant to accelerate transition of cement manufacturing to alternative fuel – targeting 60% substitution
BORAL Ltd have successfully secured A$25 million in New South Wales (NSW) Government funding for their alternative fuel project at Berrima cement works, to accelerate the transition of the kiln’s thermal energy source from coal to alternative fuels.
The project will deliver significant reductions in Scope 1 emissions associated with cement manufacturing; approximately 1.6 million tonnes of carbon emission reductions over its service life.
Part of Boral’s broader decarbonization pathway, the project demonstrates the viability and feasibility of providing up to 60% of kiln thermal energy from lower-carbon alternative fuels. It will divert approximately 73,000 tonnes of waste away from landfill each year, while reducing direct emissions and other environmental impacts.
The funding was awarded to Boral under the NSW Government’s High Emitting Industries Grant, which provides support for high-emitting manufacturing and mining facilities to develop and deploy decarbonization projects to achieve significant emissions reductions by 2030.
Berrima cement works is a strategically significant site for both Boral and Australia’s manufacturing capability, responsible for supplying up to 40% of cement in NSW and the Australian Capital Territory (ACT). Approximately 35% of the Berrima facility’s Scope 1 emissions originate from fuel combustion, while the remaining 65% are process emissions due to the calcination process, where limestone decomposes into calcium oxide and carbon dioxide during the clinker manufacturing process.
The alternative fuel project targets 60% substitution of thermal energy. Boral’s alternative fuel is derived from waste material with high biomass content that would otherwise end up in landfill.
Vik Bansal, Boral’s chief executive officer and managing director, said: ‘We are proud to receive this grant in support of our alternative fuel project, which marks a critical step towards decarbonization and safeguarding the future of local cement manufacturing in Australia. Cement production is not only a cornerstone of our national infrastructure, but a vital contributor to regional employment and economic resilience.
‘As the reformed Safeguard Mechanism introduces more stringent emissions reduction targets, it is imperative that trade-exposed industries like ours are equipped with practical, cost-effective pathways to decarbonization to support thousands of jobs and the local industry’s serious risk from offshore competition, which has already seen major decline over the last two decades.
‘It’s why we continue to advocate for a Carbon Border Adjustment mechanism to ensure an even playing field and avoid carbon leakage from imported products not subject to the same decarbonization measures.’
Dr Ali Nezhad, head of sustainability and innovation at Boral, added: ‘The NSW Government’s grant signifies a vote of confidence on Boral’s decarbonization and innovation efforts in sustaining local cement manufacturing capability during the transition to net zero.
‘Berrima cement works supplies a significant portion of the cement used in NSW and the ACT, dating back to 1929. This project will enable us to build technical and operational capabilities to sustainably achieve significant emissions reductions, ensuring that NSW’s only integrated cement facility remains competitive in a net-zero future.
‘We look forward to sharing our findings across the sector through industry workshops and conferences, helping to preserve and strengthen Australia’s domestic cement manufacturing capability for generations to come.’
