3.3.1 Structure and economic contribution
The non-metallic minerals sector contributed to 1.5% of the EU’s GDP in 2011 (Eurostat;
2013). Key economic contributions are delivered by 4 key groups: Manufacture of glass (NACE C23.1), ceramic (NACE C23.2; 23.3; 23.4; 23.7; 23.9), cement and lime (NACE 23.5, 23.6).
Key economic indicators for the non-metallic minerals sector are summarised in Table 3.27.
Table 3.27 Key economic indicators on sector division and group level for EU 28 for 2012
Description
NACE (Group)
Number of enterprises
[n]
No. of persons employed
[n]
Turnover [mil EUR]
Value added [mil EUR]
Production value [mil EUR]
Manufacture of other non- metallic products
C23 97,975 1,259,267 207,520 61,002 193,297 Manufacture of glass and
glass products
C23.1 15,711 305,862 45,000 15,000 42,424
Manufacture of refractory products
C23.2 860 30,932 5,899 1,640 5,268
Manufacture of clay building materials
C23.3 3,627 114,974 17,073 5,624 16,196
Manufacture of other porcelain and ceramic products
C23.4 13,288 97,819 8,822 3,314 7,679
Manufacture of cement, lime and plaster
C23.5 1,100 62,680 19,982 6,639 19,520
Manufacture of articles of concrete, cement and plaster
C23.6 23,500 385,483 69,810 17,520 65,239
Cutting, shaping and finishing of stone
C23.7 35,910 164,203 13,800 5,000 12,959
67 Description
NACE (Group)
Number of enterprises
[n]
No. of persons employed
[n]
Turnover [mil EUR]
Value added [mil EUR]
Production value [mil EUR]
Manufacture of abrasive products and non-metallic mineral products n.e.c.
C23.9 3,979 97,314 27,134 6,265 24,011
Source: Eurostat, accessed on Dec 2014
The sector has over 97,000 enterprises in the EU generating €207 billion of revenues. Cement and lime production (C23.5, C23.6) are the largest industries, accounting for nearly 45% of total sector revenues. Glass manufacture (C23.1) is the next largest contributor, with turnover accounting for over 20% of the non-metallic sector.
SMEs as a group dominate the sector in terms of number of enterprises (99% of the EU-27’s sectoral total) and persons employed (64% of the EU-27’s sectoral total) in 2010. The remaining enterprises (1%) are considered large and accounted for 47% of the value added and 36% of the sector’s workforce.
3.3.2 Subsector share of energy consumption
Table 3.28 provides an estimated overview of the share of energy consumption between the subsectors in EU28 based on statistics from various sources, including EUROSTAT, the European Cement Association, Glass Alliance Europe, and the European Lime Association.
Cement production accounts for nearly 60% of the energy use in the non-metallic minerals sub-sector. However, the most energy intensive part of the non-metallic minerals industry is the production of ceramic materials (IEA; 2007).
Table 3.28 Estimated EU28 subsector share energy demand in 2012 Sector Description NACE
(Group) Category Estimated share of final energy demand
[kTOE] [%]
Manufacture of glass and glass products
C23.1
Energy intensive 6,075 17%
Manufacture of ceramics and ceramic products
C23.2; 23.3;
23.4; 23.7;
23.9
Energy intensive
6,790 19%
Manufacture of cement C23.5, 23.6 Energy intensive 20,726 58%
Manufacture of lime C23.5, 23.6 Energy intensive 2,144 6%
Total final energy demand for non-metallic minerals sector for EU28 (2012):
35,735 100%
3.3.3 Key products
Glass (NACE 23.1). The EU-27 is the world’s largest glass market, in terms of production and consumption.33 The majority of glass production is for container packaging (60%); and flat glass for building, automotive and solar-energy panels (30%). The remainder is consumed in the domestic glass market (e.g., tableware, cookware); in glass fibre applications for the automotive and transportation (such as aircrafts), communication, and electronic sectors; and
33 http://www.glassallianceeurope.eu/en/industries
68
speciality glass products, such as laboratory glassware, heat-resistant glass, optical and ophthalmic glass.34
Ceramics (NACE 23.2; 23.3; 23.4; 23.7; 23.9). Ceramic products include, wall and floor tiles, bricks and roof tiles, household ceramics, refractory products, and expanded clay aggregates.
The EU has 1,091 installations producing ceramics, with 80% of energy consumption associated with the production of bricks, wall, floor, and roof tiles.35
Cement and Lime (NACE 23.5; 23.6). Cement is widely used in construction and building industry; it is an important component in the production of mortar and concrete. Cements are typically characterized as being either hydraulic or non-hydraulic, depending upon the ability of the cement to be used in the presence of water. Portland cement, which is the most common type of cement used in the world, is hydraulic.
3.3.4 Key sector processes
Glass production comprises the six process steps. First, silica (high quality sand), soda (Na2CO3) and potash are mixed with stabilizers, such as lime (CaO), magnesium oxide (MgO) and aluminium oxide (Al2O3), to reduce weathering effects. Following this batch mixing and preparation step, the raw materials are melted, homogenized in a furnace, which operates up to temperatures of 1,600°C. After, the molten glass moves to the forming process, where depending on the final product, it passes through different blowing and pressing methods.
Once the glass has formed, it is annealed to remove stresses and treated with coatings or lamination to enhance durability and strength. There are approximately 309 glass manufacturing installations in the EU.36
Ceramic production takes place in different types of kilns, with a wide range of raw materials and in numerous shapes, sizes and colours; however, the general process is uniform. All ceramics start as a mixture of powdered base material (Zirconia, etc.), binders and stabilizers.
This mixture is "formed" into shapes and then fired (sintered) in kilns at temperatures between 1800°C - 2000°C for days or weeks at a time, depending on the ceramic and process details (e.g., for wall and floor tiles, and household ceramics multiple stage firing is used).
Cement production is a two-step process. First, clinker is produced from raw materials (calcium oxide (65%), silicon oxide (20%), alumina oxide (10%) and iron oxide (5%)) by heating in a rotary kiln at temperatures of up to 1,500°C. This step can be a dry, wet, semi-dry or semi-wet process according to the state of the raw material. After the clinker is produced, the second step involves gypsum (calcium sulphates) and possibly additional materials, such as coal fly ash, natural pozzolanas being added to the clinker. These are then ground to a fine and homogenous powder in a cement grinding mill, after which, the cement is dispatched either in bulk or bagged. There are approximately 268 installations producing clinker in the EU.37
Lime production, such as quicklime, dolime, is used in a variety of applications, including filler and bonding agents in building materials, purification agents in steel manufacture, and in soil and water treatment to remove impurities. Most lime producers are vertically integrated, so they undertake mining, crushing/sieving and calcination operations. Calcination is the most energy intensive step in the manufacture of lime. It involves crushed limestone or dolomite being heated to temperatures of 900 to 1200°C in kilns, where the thermal decomposition process produces lime or dolime, respectively.
34 http://www.glassallianceeurope.eu/en/main-glass-sectors
35 EUA Allowances allocation - sector report for the ceramics industry; Ecofys, 2009
36 Methodology for the free allocation of emission allowances in the EU ETS post 2012: Sector report for the glass industry; Ecofys, 2009
37 Methodology for the free allocation of emission allowances in the EU ETS post 2012: Sector report for the cement industry; Ecofys, 2009
69
■ CaCO3 (limestone) + energy → CaO (lime) + CO2 (carbon dioxide)
■ CaMg(CO3)2 (dolomite) + energy → CaMgO2, (dolime) + 2 CO2 (carbon dioxide) 3.3.5 Energy metrics
3.3.5.1 Energy intensity based on sector energy cost
Table 3.29 provides an indication of the sector’s energy intensity for selected EU Member States expressed in 2 ratios38 from 2008 - 2012. Based on the 5 year trend of the energy intensity ratios, it has remained flat, consistent with the longer term intensity trend discussed in Section 3.3.6.5. The non-metallic mineral sector ranks 3rd most energy intensive sector (after petroleum refineries and iron and steel) in comparison with the 8 industrial sectors evaluated in this Study in terms of energy cost spent per value added generated.
Table 3.29 Energy cost intensity ratios per unit of VA and Turnover generated for selected MS*
Ratio 2008 2009 2010 2011 2012
1 Energy cost/
Value Added 23% 22% 21% 22% 23%
2 Energy cost/
Turnover 7% 7% 6% 7% 7%
Source: ICF analysis on EUROSTAT SBS, accessed Dec 2014
* Note: Data excludes Finland, Slovenia, Poland and Luxembourg 3.3.5.2 Energy intensity of key processes
The production of non-metallic minerals (glass, ceramic, cement and lime) is characterised by the use of intense heat to either melt (glass), sinter (ceramics, cement) or thermally decompose (lime) raw materials. As such, the key energy intensive process in these industries is the kiln or furnace, which can operate at temperatures exceeding 1,000°C. Electricity use, in comparison, is minimal (e.g., in lime production it is on the order of 1 to 2%). Table 3.30 to Table 3.33 provides a summary of the energy intensities associated with the production of glass, ceramics, cement and lime.
38 (1) Ratio of energy cost per unit of value added and (2) Ratio of energy cost per unit of turnover, i.e. the monetary value paid by manufacturers on energy products for every unit of value added or turnover generated by the sector.
70 Table 3.30 Energy intensity of glass production (Source: Ecofys, 2009)
Product
EU Electricity Use
kWh/t (GJ/t)
Production contribution39
Flat glass 203 (0.73) 25%
Container packaging 372 (1.34) 70%
Tableware unknown 2%
continuous filament fiber 1,110 (4) 2%
Specialty glass unknown 1%
Source: Ecofys, 200940
Glass Alliance Europe notes that in 2009 the total energy intensity of the industry was 8 GJ/tonne.41 Based on the data in Table 3.30, the weighted average specific electricity consumption in the EU is 1.2 GJ/t; consequently, the split between heat and power is approximately 85% and 15%, respectively.
Table 3.31 Energy intensity of ceramic production
Product
EU Energy Use
(GJ/t)
Production contribution
Brick and roof tiles 2.31 38%
Wall and floor tiles 5.6 42%
Refractory products 5.57 7%
Sanitary-ware 21.87 3%
Vitrified clay pipes 5.23 1%
Table and ornamental-ware 45.18 6%
Technical ceramics 50.39 2%
Source: BREF, 200742
Kilns used in the production of brick, roof, wall and floor tiles represent the largest contributor to energy consumption in the EU ceramics industry. Based on the data presented in Table 3.31, the weighted average energy intensity for the EU is estimated to be 8.1 GJ/tonne.
39 http://www.glassallianceeurope.eu/en/main-glass-sectors
40 Methodology for the free allocation of emission allowances in the EU ETS post 2012: Sector report for the glass industry; Ecofys, 2009
41 http://www.glassallianceeurope.eu/en/common-challenges
42 http://eippcb.jrc.ec.europa.eu/reference/BREF/cer_bref_0807.pdf
71 Table 3.32 Energy intensity of cement production
Process
Global Energy Use (GJ/t
clinker)
Production Contribution
Vertical shaft kilns 5
Wet kilns 5.8 – 6.7
Long dry process 4.4 – 4.5 4%
Semi wet/semi dry kiln 4.0 5%
Dry kiln (four stages pre-heater) 3.2 – 3.7 92%
Dry kiln (six stages pre-heater and pre- calciner)
2.8 – 3.4
Source: ABB, 2013; BCG, 201343,44
Dry kilns represent the majority of clinker kilns used in the EU (92%), with 5% semi-dry, and 4% long dry.45 As such, the specific energy consumption of the EU cement industry is approximately 3.78 GJ/tonne; which aligns closely with estimates reported by IEA (2007), 3.7 GJ/tonne clinker46.
Table 3.33 Energy intensity of lime production
Process
EU-27 Energy use
Heat Use (GJ/t) Kiln electricity use (kWh/t)
Heat Electricity
Horizontal kiln
Long rotary kiln 6 – 9.2 18.25 99% 1%
Rotary kilns with pre- heater
5.1 – 7.8 17.45
Vertical kilns Parallel flow regenerative
kilns
3.2 – 4.2 20.40 98% 2%
Annular shaft kilns 3.3 – 4.9 18.35
Mixed feed shaft kilns 3.4 – 4.7 5.15
Other kilns 3.5 – 7.0 20.40 98% 2%
Source: UNIDO, 201047
43 Global Energy Efficiency Trends 2013 – ABB; http://www.enerdata.net/enerdatauk/press-and- publication/publications/the-state-global-energy-efficiency.php
44 The Cement Sector: A Strategic Contributor to Europe's Future; Boston Consulting Group, 2013
45 ibid
46 Tracking Industrial Energy Efficiency and CO2 Emissions; IEA, 2007
47 Global Industrial Energy Efficiency Benchmarking; UNIDO, 2010
72
There are approximately 449 lime kilns in the EU; 7% are horizontal, 72% are vertical, and 21% are “other” kilns.48 The European Lime Association (EuLA) indicates that the average fuel consumption in 2010 was 4.25 GJ/tonne quicklime, which aligns with the information presented by UNIDO.
3.3.5.3 EU final energy consumption for non-metallic mineral production
Furnaces used in the production of glass consume natural gas and/or oil as the primary fuel source. Solid fuels, such as coal or lignite are not typically used as they would result in the production of molten ash in the glass phase, which would reduce product quality49. In the ceramics industry, natural gas is the primary energy source for kiln firing; accounting for approximately 85% of total energy consumption. The remainder is made up electricity50. Table 3.34 and Figure 3.29 provides a summary of the final energy consumption and fuel mix for non-metallic mineral sector for EU28 as a whole.
Table 3.34 Final energy consumption for EU non-metallic mineral sector in 2012 EU primary energy consumption for the
sector kTOE % of total
Gas 13,766 39%
Electricity 5,987 17%
Solid fuel 5,238 15%
TPP 7,483 21%
Other 3,263 9%
Total final energy demand 35,735
Source: EUROSTAT, accessed Dec 2014
48 A Competitive and Efficient Lime Industry Cornerstone for a Sustainable Europe; EuLA, 2014
49 Glass production: Guidebook 2013; Jeroen Kuenen
50 Paving the way to 2050: The Ceramic Industry Roadmap; Cerame-Unie; 2012
73 Figure 3.29 Energy mix for EU non-metallic mineral sector in 2012
Source: EUROSTAT, accessed Dec 2014
3.3.5.4 Energy end use profile
Based on the estimated share of energy consumption amongst the glass, ceramic, cement and lime manufacturing industries, and the fuel mix profiles discussed, the following figures present an aggregate energy use profile for the primary energy sources, including electricity, natural gas, total petroleum products, coal, renewables, waste heat, and biomass.51
Figure 3.30 Electricity use profile
Source: ICF internal data
51 Based on ICF energy efficiency studies within the non-metallic minerals sector Gas 38%
Electricity 17%
Solid fuel 15%
TPP 21%
Other 9%
74 Figure 3.31 Natural gas use profile
Source: ICF internal data
Figure 3.32 Total petroleum product use profile
Source: ICF internal data
75 Figure 3.33 Coal use profile
Source: ICF internal data
Figure 3.34 Energy use profile for other sources, including renewable, biomass, and waste heat recovery
Source: ICF internal data
3.3.6 Projection of energy consumption trend
The following details are an extracted summary of the sector profile in Annex 1.
The non-metallic minerals sector contributes four primary outputs: glass; ceramics, cement and lime which in 2011, contributed to 1.5% of the EU’s GDP (Eurostat; 2013). It is a mature and energy–intensive sector, with energy costs accounting for a significant portion of production costs (i.e., >30%).52,53 The non-metallic minerals sector accounts for 13% of total EU industrial energy consumption in 2011.54
52 The role of cement in the 2050 low carbon economy; CEMBUREAU; 2013
53 Paving the way to 2050: The Ceramic Industry Roadmap; Cerame-Unie; 2012
54 Energy, transport and environment indicators; Eurostat; 2013
76 3.3.6.1 Glass production
EU-27 is the world’s largest glass market, in terms of production and consumption, with 80%
of production traded within the EU.55 Foreign imports do not play a dominant role, with export to import ratio being 1.26 in 2012.56 The market is dominated by less than a dozen multinationals that produce over 80% of the total glass produced in the EU. Between 2004 and 2012, production declined by approx. 5%, primarily as a result of large decreases in demand for domestic, specialty glass and glass fibres due to low cost foreign imports. In 2012, glass production totalled 33 million tonnes.57 However, container and flat glass production remained relatively constant. Demand for these products is driven by consumer industries, where packaging is required, and the construction and automotive industries. While future growth could be driven by access to new markets, such as the Middle East and Asia, and new EU provisions for buildings energy performance (i.e., glass insulation), it is anticipated that glass production will follow historic trends and remain relatively stable.
3.3.6.2 Ceramic production
Six member states dominate ceramics production (Germany, France, Italy, UK, Portugal and Poland), accounting for nearly 80% of total EU production. In 2000, EU production was 55 million tonnes58, which remained relatively constant through 2007. However, since 2007, across all ceramic sub-sectors, production value has declined by 36% through 2012.59 As such, it is estimated that EU production was around 35 million tonnes in 2012. Demand for bricks, wall, roof, and floor tiles are influenced by new builds and renovation; as such population growth and the rising number of households is important to future growth. However, recent declines have been due to significant competition from low cost imported products; and a reliance on raw materials from outside markets (e.g., China) where costs are rising. This is anticipated to continue; as such, production is assumed to continue declining slowly into the future.
3.3.6.3 Cement production
Between 1998 and 2007, cement production increased by 23%; however, since the economic crisis, production has been declining. In 2012, cement production declined by 13% compared to 2011, reaching 228.4Mt, which was a record low. Major European markets recorded sharp drops, including Spain (-39.5%) and Italy (-20.8%), whereas more moderate falls were in Germany (-4.8%) and France (-7.3%).60 Demand is cyclical and driven by building and civil engineering works. It is expected that the overall EU cement consumption per capita will remain around 450 kg per capita with local variations per country. Assuming these average values, cement production in Europe will be about 234 Mt by 2030, i.e., relatively constant.61 3.3.6.4 Lime production
Lime is a heavy product with a low sales price, so transport costs dictate consumption patterns.
Consequently, exports are minimal, and only to neighbouring countries. Germany, France, Poland, Belgium, Spain and Italy are the largest producers of lime in the EU-27. Between 2006 and 2011, EU lime production declined from 28 million tonnes62 to 22 million tonnes63,
55 http://ec.europa.eu/enterprise/sectors/metals-minerals/non-metallic-mineral-products/index_en.htm
56 http://www.glassallianceeurope.eu/
57 ibid
58 EUA Allowances allocation - sector report for the ceramics industry; Ecofys, 2009
59 Paving the way to 2050: The Ceramic Industry Roadmap; Cerame-Unie; 2012
60 The cement industry is exposed to carbon leakage regardless of the assessment method used and the relevant product level; CEMBUREAU, 2013
61 http://setis.ec.europa.eu/cement-energy-efficiency
62 http://ec.europa.eu/enterprise/sectors/metals-minerals/non-metallic-mineral-products/index_en.htm
63 A Competitive and Efficient Lime Industry Cornerstone for a Sustainable Europe; EuLA, 2014
77
reflecting a 20% decline. Demand is driven by the environmental and construction industries;
however, access to raw material, calcium carbonate, and competition from producers on the periphery of EU is the primary threats. Future production is anticipated to continue to decline, but at a lower rate.
3.3.6.5 Sector projection summary
Overall, production in the non-metallic minerals sector is assumed to remain relatively flat through 2050; slight declines in lime and ceramics will be offset by stable production in cement and glass. Table 3.35 presents the anticipated production profile for the sector.
Table 3.35 Projected production of non-metallic minerals in EU (million tonnes)
2011 2012 2015 2020 2025 2030 2035 2040 2045 2050 Production
(MT)
318.2 318.2 317.2 316.6 316.1 315.6 315.3 315.0 314.9 314.8 The non-metallic minerals sector is energy- and raw materials–intensive, with energy costs contributing to significant part of production costs. The sector is defined by high capital costs, with long term investment cycles (e.g., kilns have 40 year lifetimes). Consequently, once an investment is made the ability to upgrade and improve energy efficiency is impacted. 2050 sector roadmaps have been developed for all sectors, and energy efficiency is listed as a key objective. However, many of the sectors are dependent on breakthrough technologies that are not available today. As such, overall energy intensity for the sector is anticipated to remain stable for the near future and then decline slowly through 2050. Table 3.36 presents the anticipated energy intensity trend through 2050.
Table 3.36 Projected energy intensity trends for production of non-metallic minerals (Thousand tonnes oil equivalent per dried metric tonne)
2011 2012 2015 2020 2025 2030 2035 2040 2045 2050 Energy intensity
(TOE/ tonne)
0.118 0.118* 0.118 0.118 0.118 0.117 0.116 0.116 0.115 0.115
*Base year energy intensity based on: Glass – Glass Alliance Europe (2014); Ceramics - Ecofys (2009), Cement – BCG (2013) and Lime – EuLA (2014)
Figure 3.35 illustrates the BAU projection trend (energy consumption and production) of non- metallic minerals in EU28 over the period 2012 to 2050.
78 Figure 3.35 BAU projection for EU production of non-metallic minerals
3.3.7 Projection of energy saving potential
Figure 3.36 presents the energy consumption projections from 2011 through to 2050 under the BAU, technical and economic scenarios64 from the modelling outputs of IEEM.
A total of 83 ESOs which are technically feasible to the sector were accounted for in the modelling process. The projected savings under the technical65 potential scenario is 7.2 million TOE (19% saving) in year 2030 and 6.3 million TOE (18% saving) in year 2050 with reference to the BAU projections. The sharp increase in technical potential by the first milestone, 2015, is based on the assumption that if technically feasible options are available, they will be implemented immediately. For some ESOs, such as those that are emerging technologies, it is assumed that they will be implemented when the currently installed equipment has reached its end of life.
A total of 33 ESOs were included under economic scenario 1, resulting in a projected saving of 1.2 million TOE (3.3% saving) in year 2030 and 2.4 million TOE (6.6% saving) in year 2050 with reference to the BAU projections.
An additional 19 ESOs, i.e. a total of 52 ESOs, were included under economic scenario 2, resulting in a projected saving of 1.3 million TOE (3.6% saving) in year 2030 and 2.6 million TOE (7.2% saving) in year 2050 with reference to BAU projections. This is only an additional of 0.3% savings in 2030 and 0.5% savings in 2050 in comparison with economic scenario 1.
Similar to the other sectors, the additional ESOs under economic scenario 2 have a much lower energy saving impact, despite a higher payback time and they only accounted for 8% of the overall savings in comparison with ESOs under economic scenario 1. The full list of Energy
64 The economic scenario 1 assumes an uptake of ESOs which fulfils the less than 2 year simple payback criteria, whereas the economic scenario 2 assumes an uptake of ESOs of less than 5 year simple payback.
65 Under the technical potential scenario, it is assumed that all technically feasible ESOs relevant to the sector is implemented regardless of economic viability.
300.00 305.00 310.00 315.00 320.00 325.00
30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000
2011 2015 2020 2025 2030 2035 2040 2045 2050
Sector production [mil tonnes]
Energy Consumption [kTOE]
Sector production BAU energy consumption