Egypt-based Arabian Cement Company (ACC) has taken all steps needed to substitute natural gas with coal and refused derived fuel (RDF) as energy sources in its plant, said its CEO Jose Maria Magrina.

He said that the company has applied for the necessary government permits to do so and is awaiting approvals. It will be ready to make the conversion, a $40 million investment, by the fourth quarter of this year after receiving the permits, he added.

Over the course of the last four months, shortage of energy sources has caused the cement industry in Egypt a loss of 20 per cent in production capacity, while ACC has lost 25 per cent of its production capacity in the same period. More losses are expected during the summer months of the year.

Until late 2010, the government was encouraging producers to use natural gas, causing the players of the industry to invest hundreds of millions to make the switch to natural gas as the main energy source. However, due to the current energy crisis the government has changed its approach and is asking the producers to change their energy dependency to coal and other sources of alternative fuel.

Substituting natural gas with coal and RDF is a widely used practice by cement producers across the world, especially in countries facing issues with the supply of energy sources. - TradeArabia News Service