Production Process and Raw Materials
Cement is produced by calcining a finely milled raw mix of mainly limestone (calcium carbonate) with clays,
shales or other silica- and alumina‐rich materials 1 2 . In a rotary kiln the mix is heated to ~1450 °C
(often with a fuel such as coal, petcoke or gas), driving off CO₂ and forming clinker minerals 1 . Key raw
components include ~80% limestone plus clay/shale and small amounts of iron or alumina sources 1 2 .
After cooling, the clinker is ground with gypsum (and often slag or fly ash) to form the grey powder cement
3
4 . Modern plants typically use the dry process with preheating stages for efficiency 5 .
Supply‐chain considerations are critical: cement plants are sited near limestone quarries to minimize
haulage costs 6 , and many operate captive mines with restoration schemes for topsoil (e.g. in South
Africa) to ensure sustainable sourcing 7 8 . Other common raw inputs (clay, shale, sand, iron ores) are
usually available locally, but sometimes fly ash or slag must be imported or locally substituted. Gypsum
(added to control setting time) is sometimes imported (for example, some African plants import gypsum by
sea). Energy supply is also part of the chain: traditional kilns run on coal/oil or natural gas, and many
producers are co-processing waste fuels (biomass, refuse-derived fuel, tyres) in kilns to reduce costs. Finally,
finished cement is delivered either in bulk (tankers) or bagged (50 kg bags) to local or export markets.
Logistics can be a constraint: for example, Ghana’s cement sector (dominated by grinding plants) relies on
imported clinker and faces transport bottlenecks and foreign-exchange risks 9 10 .
Market Size and Commercial Trends
Global Market
Cement is a multi‐billion‐ton industry. World production reached about 4.1 billion tonnes in 2022 11 .
(China alone accounts for ≈50–57% of this output 12 13 .) According to market analysts, the global cement
market was worth roughly $407–408 billion in 2024 14 and is projected to grow to over $674 billion by
2033 (CAGR ≈5%) 15 . Growth is driven by infrastructure and urban construction demand, especially in
Asia. The Asia-Pacific region dominates the market (over 70% share in 2023 16 ) due to rapid construction in
China, India and Southeast Asia. North America and Europe each represent a smaller share; for example,
U.S. Portland cement output was about 88 Mt in 2023 (slightly down from 2022) 17 , reflecting modest
growth tied to infrastructure spending and residential demand. Europe’s cement use is relatively flat, with a
shift toward blended cements (using industrial byproducts) under regulatory pressure to cut emissions.
Africa Market
Africa’s cement market is growing faster than the global average. A recent industry report projects 8–9%
annual growth in African cement demand 18 , reaching roughly $8.7 billion by 2025 (from ≈$8.1 billion in
2024) 18 . Urbanization and mega-infrastructure projects (roads, rail, housing) in Nigeria, Ethiopia, Kenya
and West African countries are major demand drivers 19 20 . Governments’ green housing and regional
trade plans also support demand. However, high energy costs, foreign-exchange volatility, and import
dependence (on clinker and fuel) pose challenges 19 9 .
1
Key players in Africa include Dangote Cement (Nigeria), Lafarge Africa/GHACEM (Heidelberg Materials,
Ghana/Nigeria), BUA Group (Nigeria), Ciments de l’Afrique (Togo/West Africa) and local firms like CIMAF.
East and West African markets lead growth: for instance, new grinding plants and cement capacities are
opening in Kenya, Tanzania, and Senegal 21 . Lagos-based Dangote alone plans to raise its total African
capacity to ~55 Mt/yr (across Nigeria, Congo, Senegal, etc.) 22 . South Africa and Egypt are older markets
with multiple plants; South Africa produces only ~15 Mt/yr (≪1% of global) 13 but has been adjusting to
cheap imports from Asia.
Ghana Market
Ghana’s cement industry is comparatively small. Official data (2021) put national production at ~7.2 Mt with
capacity ~10.7 Mt, implying significant import overcapacity 23 . Supply comes mainly from grinding plants
(importing clinker) run by GHACEM (Heidelberg Materials), Dangote (bagging terminal), Ciments de
l’Afrique, CBI Ghana (GHACEM JV) and smaller players 24 . Only one integrated plant exists (Savannah
Cement, 1.5 Mt in northern Ghana). Domestic demand has grown with construction but stalled by economic
headwinds in 2023–24 (currency depreciation and inflation). In 2023 Ghana’s biggest import was clinker
($206 M) 9 , illustrating dependence on imports. Key market issues include pricing regulation attempts
(July 2024 proposals) and stricter permitting (new Cement Development Committee, LI 2480) aimed at
ensuring quality and local sourcing 25 26 . Ghana’s cement price battles reflect global trends: producers
cite 80% of costs tied to exchange rates 27 , suggesting margins are squeezed by FX rather than pure
industry malfeasance.
Investment Potential
Infrastructure projects and urban growth continue to attract capacity investments in cement. African
producers are expanding grinding facilities (e.g. Dangote’s new lines, BUA’s expansions in Nigeria) and
building integrated plants (Savannah Cement in Ghana; Dangote Congo). Foreign direct investment is
notable (e.g. Dangote’s $310 M plant in Senegal) 28 . Financing often combines corporate equity,
development banks and export credit: Dangote’s Okpella plant ($1 B, loan from ICBC) 29 exemplifies
Chinese-backed financing. Greenfield plants in Ethiopia, Kenya and elsewhere are also under planning.
Beyond capacity, capital is flowing into low‐carbon cement technologies. Global capital markets saw a
record ~$372 M funding for low-carbon cement R&D in 2024 30 , though an estimated $20 B is needed by
2030 for full decarbonization 31 . Corporate venturing is active: major cement companies have invested in
cleantech startups (e.g. Cemex Ventures funding carbon-capture innovators 32 ). In Africa, climate finance
agencies and the IFC are piloting waste-heat-recovery, biomass fuel use and calcined-clay cement trials 33
34 . For example, Heidelberg Materials opened the world’s largest calcined-clay (“LC3”) plant in Ghana (400
kt/yr) in 2023 to produce low-clinker cement.
Opportunities for new entrants hinge on these trends: niche suppliers of SCMs or precalcined clays for
blended cements, modular alternative clinker units, or CO₂-capture tech could find markets. Startups like
California’s Carbon Upcycling (capturing CO₂ into cement additives) or MIT spinouts (biocement) are gaining
interest in Europe/US 35 36 , suggesting potential in Africa if regulatory support emerges. However, high
capital costs and entrenched incumbents pose barriers. Regional development funds (Africa50, AfDB) could
accelerate greenfield projects, while PPPs in infrastructure are sustaining short-term cement demand 20
2
37 . In summary, traditional cement remains CAPEX‐heavy, but emerging climate-tech offers differentiated
entry points for innovators.
Regulatory and Sustainability Dynamics
The cement industry faces increasing regulatory pressure to decarbonize. Globally, cement accounts for ~7–
8% of CO₂ emissions 38 , so climate commitments (Paris Agreement/NDCs) spur action. Major economies
are implementing policies: the EU’s Emissions Trading System (EU ETS) and Carbon Border Adjustment
Mechanism penalize high-carbon imports, prompting producers to lower clinker ratios and invest in CCS 39
40 . For example, the GCCA (Global Cement & Concrete Association) calls for 20% CO₂/ton reduction by
2030, requiring ~$20 B cumulative investment 31 . Many multinationals have net-zero targets (e.g. Holcim,
Cemex) and are scaling green projects. In the US, the Infrastructure Investment and Jobs Act (IIJA) and IRA
(2022) indirectly benefit cement by funding sustainable construction; California is considering a carbon tax
on cement.
In Africa, regulations are nascent. Most countries lack cement-specific carbon rules, but urban planning and
public tender requirements are increasingly favoring “green” concrete. At COP and AfDB forums, African
cement associations have pledged to improve energy efficiency. Some governments (e.g. Kenya, South
Africa) mandate blending levels for cement or ban high-emission fuels. Ghana introduced cement
manufacturing regulations (LI 2480, 2023) requiring licensing and local content plans 26 , aiming to ensure
quality and domestic sourcing. Ghana’s building codes (based on British standards) allow blended cements
(e.g. CEM II, III per EN197-1) 41 but do not yet mandate low-carbon content. National standards bodies are
exploring sustainability criteria for construction materials (e.g. green procurement policies in Ghana’s 2030
development agenda).
Environmental mandates (ESG) also pressure the industry. International financial institutions and bond
markets are factoring in scope‑3 emissions. For instance, the IFC’s Performance Standards encourage
emission controls in industrial projects (including cement). Suppliers seeking funding often need credible
decarbonization plans (e.g. cement co‑processing of waste, alternative fuels). In sum, while detailed carbon
regulation varies by region, the global trend is clear: governments and purchasers increasingly reward lowcarbon cement production.
Regulatory Comparison (By Region)
Region
Carbon Policy / Targets
Cement-Specific
Measures
Notes
Europe
EU ETS (c.€85/tCO₂), CBAM
(2026+)
Standards allow
blended cements
(EN 197-1)
Forcing emissions cuts; CCUS
pilots (CNBM) 42
North
Am.
U.S.: no federal CO₂ price; CA
cap-and-trade; Canada
Emissions Cap per ton
IRA funding for
clean steel/concrete
Infrastructure law boosts
demand; some states curb
emissions
3
Region
Carbon Policy / Targets
Cement-Specific
Measures
Notes
Asia
China: national ETS (power for
cement in 2023); India: small
market incentives
Variable (e.g. India
promoting flyash
use)
Rapid growth markets; focus on
efficiency and substitution
Africa
Few carbon prices; most
countries NDC targets
Limited (some S.A.
blending rules)
Energy subsidies common; Ghana
enforces LI2480 for local
production 26
Global
Paris Agreement (2050
neutrality goals)
GCCA roadmap to
net-zero (2050)
International finance (GCCA,
WBCSD) guidelines; UN SDGs
encourage green buildings
Opportunities: Biocement and Other Alternatives
The search for low-carbon binders has spawned biocement and other novel cements. Biocement (e.g. using
microbial CaCO₃) and certain mineral-based cements aim to reduce or capture CO₂ during curing. While
promising, these are largely in R&D/pilot phases. For example, U.S. startups (e.g. Sublime Systems,
BioMason) have raised tens of millions but production is not yet scaled. In Ghana/Africa there are no known
large-scale biocement deployments yet; however, universities and NGOs are investigating uses of bacterial/
magnesium cements and coral-derived binders for local construction. Regulatory recognition is limited:
standards focus on performance, so new cements must prove equivalency. A gradual path is substitution
blending: countries can adapt standards to allow higher SCM use.
Geopolymer cements (alkali-activated materials using fly ash or slag) are technically mature and have seen
limited use (e.g. in precast concrete) in some countries, though not widespread due to cost and supply of
raw materials. Africa has abundant lateritic clays, suggesting geopolymers or LC3 (limestone-calcined clay
cement) could be viable locally. LC3 has seen pilot projects (notably Ghana’s Heidelberg plant), and technical
standards are under development (EN 197-1 may be updated to include LC3). LC3 can cut clinker content by
~50% and halve emissions at similar cost. Supplementary cementitious materials (SCMs) like fly ash and
slag are already used (especially in South Africa); mining or industrial waste (rice husk ash, pumice) can act
similarly.
Carbon-capture solutions can be retrofitted to existing plants or new builds. For instance, the world’s first
cement plant CCUS facility (Qingzhou, China, 200kt/yr capture) began in 2024 43 . Globally, major players
like Holcim and Cemex plan multiple CCUS projects 44 . In Africa, CCUS investment is nascent; North Africa
(e.g. Egypt) is exploring CO₂ hubs 45 . Deployment depends on power and CO₂ storage availability. Still,
African developers could collaborate with international partners: e.g., East African Rift has geological
storage potential, and Ghana’s emerging oil sector (Ghana Gas) might one day link to cement CCUS.
In summary, market readiness for alternatives is still low: traditional cements dominate. However, interest
is growing. Biocement and geopolymers offer environmental benefits but must overcome performance/
cost hurdles. Regional pilot studies (e.g. Ghanian joint ventures on calcined clay) and policy interest
(national green building codes) could accelerate uptake. Meanwhile, suppliers of SCMs (e.g. domestically
produced calcined clay or rice husk ash) can readily supply low-carbon blends. Ultimately, sustained
4
adoption will require aligned standards, incentives (tax breaks, carbon credits) and demonstration projects
showing that these alternatives meet technical specs and affordability.
Summary Tables
Table 1. Traditional vs. Alternative Cement Technologies
Feature
Traditional
(Portland)
Geopolymer/LC3
Biocement
CCS-Enabled
Cement
Key inputs
Limestone
(CaCO₃), clay/
shale 1
Fly ash/slag or
calcined clay 2
Microbially
precipitated CaCO₃,
organic waste
Same as
traditional +
CO₂-capture
chemicals
Clinker
content
~95–100%
(CEM I)
LC3: ~60–65% (claylimestone mix)
0% (no clinker
produced)
~95–100% plus
capture stage
Calcination
temp.
~1450 °C (kiln)
LC3: ~900 °C
(calcine clay);
geopolymers:
ambient
<40 °C (bioreactor)
Same kiln +
capture (~40–80
°C cooling)
CO₂
emissions
~0.7–0.9 t CO₂/t
cement (60%
calcination, 40%
fuel) 46
~30–50% lower
(due to less clinker)
Potential net-negative
(biomineralization
uses CO₂)
~80–100% of
kiln CO₂
captured (if full
CCS)
Technology
maturity
Proven for 200+
years 1
Emerging: pilot
production (e.g.
LC3 in Ghana)
Early-stage R&D (no
large plants)
1
Early-stage:
pilot plants
(CNBM in China)
42
CO₂
reduction
method
None (legacy
high emissions)
Clinker substitution
CO₂ bio-capture
Carbon capture
post-calcination
Examples/
Projects
Global cement
majors (Holcim,
Cemex)
LC3 demonstration
plants (Malaysia,
Ghana)
Sublime Systems (US)
– pilot mixing plant
CNBM
Qingzhou CCUS
(China) 43 ;
Cemex pilot (US)
Table 2. Cement Market and Investment Outlook by Region
5
Region
Market Size (2023)
Growth Drivers / Trends
Investment Focus
AsiaPacific
Dominant (73% of
$407B market in
2023) 16
Rapid urbanization, megainfrastructure (China, India,
SE Asia)
Capacity expansion, blended
cement R&D; CO₂ capture pilots
~$8.1B (2024); ~7–
8% CAGR (2020–29)
Infrastructure corridors,
housing projects, intra-Africa
trade
New plants (grinding &
integrated); local SCM use;
renewable fuels 34
Africa
18
Europe
Mature (~303 Mt in
2023) 47
Flat demand; renovation
market; strict climate policies
(EU ETS)
Emissions reduction (CCUS,
fuels), import substitution
(trade) 44
North
America
Moderate (US ≈88
Mt in 2023) 17
Infrastructure spending
(roads, housing), stable
growth
Green credits (IRA), efficiency
upgrades, low-carbon R&D
Latin
America
Smaller (Brazil/
Mexico lead)
Infrastructure and residential
demand; commodity cyclesensitive
Plant modernization,
alternative fuels, potential
carbon pricing
Table 3. Regional Regulatory Highlights
Region
Carbon Pricing / Goals
Cement Regulations
Key Notes
EU
Emissions Trading
System (ETS) (~€85/t);
55% cut by 2030
EN 197-1 cement classes
(CEM I–V) allow up to 95%
SCM 41
Proposals for carbon border
tax (CBAM); funding for
decarbonization
USA/
Canada
US voluntary net-zero by
2050; Canada carbon tax
rising (~$50/t)
ASTM cement standards
(ASTM C150) permit up to
25% pozzolans
IRA funding for “green”
construction; some state-level
CO₂ regs
China
National ETS (power
grid; expanding to
cement); 2060 neutrality
goal
GB standards permit
composite cements (P·II)
Largest cement consumer;
shifting from export to
stockpiles
Africa
Most countries: NDC
targets (20–45%
reduction by 2030)
Varies: South Africa
mandates 10% SCM in
grade-32.5 CEM I; Ghana/
others drafting green codes
NDC: 15% unconditional
cut (by 2030)
Ghana Standards Board:
cement quality specs (ENbased); exploring green
building code
Ghana
Energy subsidies common;
Ghana’s LI2480 enforces local
manufacturing registration
26
Recent cement pricing
regulations; new industry
committee (LI 2480) 26
Sources: Production details 1 2 ; Global production data 11 ; Market valuations 16 15 18 ; Growth
forecasts 18 ; Investment news 22 31 ; Ghana industry reports 23 9 ; Sustainability analyses 48 42 .
6
1
3
41
cembureau.eu
https://cembureau.eu/media/drylkjo0/manufacturing-process-factsheet_update-jan2021.pdf
2
4
5
6
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industrialefficiency.co.za
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9
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24
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Chamber of Cement Manufacturers Ghana - Cement industry news from Global
Cement
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11
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Activity Report 2023
https://cembureau.eu/media/dnbf4xzc/activity-report-2023-for-web.pdf
14
15
17
47
Global Cement Market Expected to Reach USD 673.8 Billion by 2033 - IMARC Group
https://www.imarcgroup.com/cement-market-statistics
16
Cement Market size is expected to reach USD 592.38 billion
https://www.openpr.com/news/3674389/cement-market-size-is-expected-to-reach-usd-592-38-billion
18
19
20
21
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34
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Africa Cement Industry Report 2025 | Market to Grow by 8.1%
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22
28
29
Dangote Group The Largest Cement Company In Sub-Saharan Africa - CEMENTL
https://www.cementl.com/dangote-group-the-largest-cement-company/
30
31
35
38
39
42
43
44
46
48
Record $371.9M Raised for Low-Carbon Cement in 2024, But $20B
Needed by 2030 | Cleantech Group
https://www.cleantech.com/record-371-9m-raised-for-low-carbon-cement-in-2024-but-20b-needed-by-2030/
32
Cemex Ventures invests in acclaimed CCUS startup to become front ...
https://www.cemex.com/w/cemex-ventures-invests-in-acclaimed-ccus-startup-to-become-front-runners-in-carbon-capture
36
6 innovative startups that are kicking CO2 out of… | Canary Media
https://www.canarymedia.com/articles/clean-industry/6-innovative-startups-that-are-kicking-co2-out-of-cement-and-concrete
45
[PDF] Holcim Climate Report 2024
https://www.holcim.com/sites/holcim/files/docs/28022025-holcim-climate-report-2024.pdf
7