Boral secures $25M grant to advance low-carbon cement manufacturing transition

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Image supplied by Boral.

Boral has announced it has secured $25 million in NSW Government funding to support a major alternative-fuel project aimed at reducing emissions from cement manufacturing at its Berrima Cement Works.

According to Boral, the project will accelerate the transition of the site’s kiln from coal to lower-carbon alternative fuels, targeting 60 per cent thermal-energy substitution and enabling an estimated 1.6 million tonnes of Scope 1 carbon-emission reductions over its service life.

The funding was awarded under the NSW Government’s High Emitting Industries Grant, which supports decarbonisation efforts across high-emitting manufacturing and mining facilities. 

In a media release, Boral said the project will also divert around 73,000 tonnes of waste from landfill each year.

Berrima Cement Works supplies up to 40 per cent of cement used in NSW and the ACT, making it a key asset for Australia’s manufacturing capability. 

Boral noted that about 35 per cent of the site’s Scope 1 emissions come from fuel combustion, with the remainder linked to the calcination process integral to clinker manufacturing.

Boral CEO and Managing Director Vik Bansal said the grant represents “a critical step towards decarbonisation and safeguarding the future of local cement manufacturing in Australia.” 

He added, “Cement production is not only a cornerstone of our national infrastructure but a vital contributor to regional employment and economic resilience.”

Bansal also highlighted the pressures facing trade-exposed industries under the reformed Safeguard Mechanism. 

“It is imperative that trade-exposed industries like ours are equipped with practical, cost-effective pathways to decarbonisation,” he said, reiterating Boral’s call for a Carbon Border Adjustment to prevent “carbon leakage from imported products not subject to the same decarbonisation measures.”

Boral’s Head of Sustainability and Innovation, Dr Ali Nezhad, said the grant reflects confidence in the company’s decarbonisation efforts and its commitment to maintaining local manufacturing capability. 

“This project will enable us to build technical and operational capabilities to sustainably achieve significant emissions reductions,” he said. 

“We look forward to sharing our findings across the sector… helping to preserve and strengthen Australia’s domestic cement manufacturing capability for generations to come.”