Cairo, Egypt, October 31, 2016—A
new report by IFC, a member of the World Bank Group, finds that Egypt’s
cement producers could save money and lower greenhouse gas emissions by
using waste, so-called alternative fuels, to power their production facilities.
The study, Unlocking
Value: Alternative Fuels for Egypt’s Cement Industry,
assessed the potential for producers to increase the use of alternative
fuels and recommend sustainable market solutions. Those alternative fuels
include municipal solid waste, agricultural waste, sewage, and old tires.
Increased use of these wastes as fuel could help save the industry $51
million annually by 2025 and reduce reliance on traditional fossil fuels.
By 2025, the study suggests, alternative fuels could replace about 1.9
million tons of coal and prevent the release of 3.9 million tons of carbon
“Egypt is executing a wide array of initiatives to provide new sources
of energy,” said Ramon Piza, President of CEMEX Egypt. “We believe that
all sectors, public and private, should collaborate and join forces to
facilitate the usage of alternative fuel to further support these initiatives
and help reduce greenhouse gas emissions.”
The study is a timely one. Amid a nationwide shortage of natural gas, a
growing number of cement producers have turned to coal and petcoke to power
their plants. By 2025, the sector will use about 9.7 million tons of coal
per year which alone will produce 27 million tons of carbon dioxide, posing
health and environmental challenges for Egypt.
“Integrating alternative fuels into the energy mix brings with it significant
public and private benefits,” said Bryanne Tait, IFC Energy and Resource
Efficiency Regional Lead for the Middle East and North Africa. “It's important
for countries like Egypt to begin reducing their emissions, and alternative
fuels are an ideal way to do that as they represent an untapped local source
of energy security and hold economic profitability for the country.”
The study, the first of its kind in Egypt, found the country produces enough
alternative fuels to power the entire cement sector. It included a mapping
tool (available at http://arcg.is/1ToAspz)
that pinpoints the location of cement plants, sources of alternative fuels,
and transport links.
But it found that several obstacles prevent cement producers from using
alternative fuels, including the lack of a well-established supply chain
that would collect, process, and deliver waste to cement plants. The report
recommends that market players must come to clear and fair commercial and
quality arrangements ensuring a secure supply and return on investment,
a fair pricing mechanism, and regulatory improvements to increase waste
collection and treatment efficiency.
report was supported by the governments of Denmark and Italy, the Korea
Green Growth Trust Fund, and the Earth Fund Platform.
It is part of a larger effort by IFC
to combat climate change, improve waste management, and support the global
cement industry, a key source of employment in many developing countries.
IFC has invested $4 billion in 180 projects in the cement sector during
the last 55 years. IFC’s current cement portfolio includes 30 investments
and 10 advisory projects. More broadly in Egypt, IFC invested $1.5 billion
in private sector businesses between fiscal years 2011 and 2016, helping
to create jobs, and spur growth, considered vital in a country that has
struggled economically in recent years.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit