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Cement giants flip to inexperienced hydrogen, carbon seize to curb emissions

The device is in a converted shipping container.

RICE, Energy Security Research Institute, Swansea University

A subsidiary of the multinational building materials company HeidelbergCement is working with researchers from Swansea University to install and operate a demonstration unit for green hydrogen at a location in the UK

The collaboration is another example of how companies involved in energy-intensive processes are looking for ways to maintain productivity while reducing emissions.

In a statement last week, Swansea University said the green hydrogen unit, housed in a converted shipping container, has been installed at Hanson UK’s Regen GGBS facility in the town of Port Talbot, South Wales.

The term GGBS refers to ground granulated blast furnace slag that can be used in place of cement in concrete production.

The effects of cement production on the environment are significant. According to a 2018 report by the British think tank Chatham House, over 4 billion tons of cement are produced annually. According to the political institute, this corresponded to around 8% of global CO2 emissions.

Regen GGBS, while having a smaller carbon footprint than Portland cement, remains an energy-intensive product that requires significant amounts of electricity and natural gas.

According to Swansea University, the idea behind the Port Talbot project is “to replace some of the natural gas used in the facility with green hydrogen, which is considered a clean source of energy as it only gives off water when burned”.

The facility at the Hanson UK site produces hydrogen through electrolysis, which splits water into oxygen and hydrogen.

When the electricity comes from renewable sources – the project in Wales uses on-site wind and solar panels – the end product is called “green hydrogen”.

The system was put together as part of the Industrial Carbon Emission Reduction initiative led by the Energy Safety Research Institute at Swansea University.

In a statement, Charlie Dunnill, a lecturer at ESRI, described cement making as “one of the most energy and carbon intensive industries, and therefore a perfect place to have an impact on carbon reduction”.

Last week, the world’s largest cement company, LafargeHolcim, also announced that it would be part of a collaboration to “explore” the development of carbon capture and storage solutions.

In a statement, the company said it will “study the feasibility of carbon capture” at two facilities, one in Europe and one in North America, using Schlumberger New Energy’s carbon sequestration technology.

The United States Geological Survey describes carbon sequestration as “the process of capturing and storing atmospheric carbon dioxide”. Carbon capture can occur naturally – for example through forests – or through man-made systems developed by humans.

Cement making is just an industrial process that can be significantly improved in terms of emissions and other sustainability metrics.

The production of aluminum is different. BMW recently announced that it has started sourcing and using aluminum, made using solar power, for example.

In an interview with CNBC’s “Street Signs Europe” last Friday, the CFO of aluminum manufacturer Hydro spoke about the market for more sustainable offers.

“We are seeing a demand for our specific products, Hydro REDUXA and Hydro CIRCAL, which are low carbon or recycled … and really pick up again,” said Pal Kildemo.

“And we can charge a premium for these products compared to other ‘more normal’ products.”

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Business

European warehouse demand surges as e-commerce giants snap up areas

Staff walk the aisles collecting items before sending them to the on-site shipping hall to be packed in one of the UK’s largest Amazon warehouses in Dunfermline, Fife.

Jane Barlow | PA pictures | Getty Images

BEIJING – Big investors are investing money in warehouses in Europe, while online purchases of goods – some from China – are increasing after the coronavirus pandemic.

E-commerce was already growing before Covid-19 forced people to stay home and close store fronts. Now the pandemic has likely sped up e-commerce adoption by about 12 months, real estate consultancy Savills said in a December report quoting the Center for Retail Research.

One of the biggest challenges for companies looking to capitalize on the trend is finding ways to get orders done faster. Companies that previously relied on globally distributed supply chains are faced with a shortage of shipping containers, resulting in high delivery costs and long waiting times.

The new strategy is to find warehouses near customers and store them ahead of time so customers can receive their orders in a few days or less.

This has spiked warehouse demand and pushed the vacancy rate in Europe to a record low of around 5% – and the rate is still falling, said Marcus de Minckwitz, director of the London Omnichannel Group at Savills.

“In the course of 2020, under the leadership of the UK, we saw record utilization of warehouse space across the continent,” he said. “This was driven by Amazon and then third-party logistics service providers.”

There is an Amazon warehouse in the Port of Belfast as the Coronavirus disease (COVID-19) spread continues in Belfast, Northern Ireland on April 6, 2020.

Jason Cairnduff | Reuters

Total investment in European logistics rose last year to 38.64 billion euros (46.5 billion US dollars). According to Savills, this is the highest value since 2013.

Now Europe expects more demand from Chinese e-commerce players entering the market under the leadership of Alibaba, de Minckwitz said.

Alibaba has grown its cross-border e-commerce business primarily through its AliExpress platform and Cainiao’s logistics arm.

The company spearheaded rapid growth in cross-border e-commerce, which helped Cainiao sales jump 51% year over year in the final three months of 2020 to $ 1.74 billion at the time, according to Alibaba.

Some of the largest companies in the investment world are taking note of the trend.

E-commerce increases China’s exports

The Chinese authorities are also talking about the trade impact.

Cross-border electronic trade between China and other countries rose 31.1% last year to 1.69 trillion yuan, mainly in exports, according to the national customs authority. As a result, overseas warehouses rose 80% year over year to over 1,800 in 2020, the Commerce Department said in January.

Diane Wang, founder and chairman of Chinese e-commerce website DH Gate, said last month the company has 10 warehouses overseas and plans to add 40 more this year.

About half of the products are upstream abroad, so customers can receive their orders within three days, she said. Wang predicts that cross-border e-commerce will increase from around 5% of China’s international trade to 30% over the next decade.

Official data by country or region was not available, but anecdotes show that much of the foreign interest in e-commerce with China comes from Europe. The region is already one of China’s most important trading partners.

“A lot of people buy Chinese products in Europe,” said Suresh Dalai, senior director of Alvarez & Marsal consultancy, which focuses on retail operations in Asia. He expects more investment in technology for order tracking, same-day delivery and storage of packages in central lockers so consumers can pick up packages when they want.

“There is a lot of demand. I don’t think (new Chinese players) are really influencing Alibaba that much,” said Dalai. “I think it helps because it only spurs additional investment in warehouses and technology and more and more consumers are getting used to shopping across borders and shopping on China-made websites.”

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World News

NYSE says it would now not delist three Chinese language telecom giants

The New York Stock Exchange said it no longer plans to delist three Chinese telecommunications giants and overturned a decision announced four days earlier.

The NYSE said late Monday it dropped the plans after “further consultations with relevant regulators related to the Bureau of Foreign Wealth Control”.

Hong Kong-listed stocks of China Telecom, China Mobile and China Unicom rebounded on news of the reversal.

On Thursday, the NYSE announced that it would delist American custody shares of the companies under an executive order signed by President Donald Trump. The November regulation was designed to prevent American companies and individuals from investing in companies that the Trump administration claimed to have helped the Chinese military.

Big stock index giants like MSCI, S&P Dow Jones Indices and FTSE Russell, as well as popular trading app Robinhood, have also taken steps to fulfill the executive order.

The Chinese Securities Commission said Monday that the executive order was based on “political purposes” and “completely ignored the real situations of relevant companies and the legitimate rights of global investors, and severely damaged market rules and regulations”.

Trump’s investment ban will go into effect next Monday, just over a week before President-elect Joe Biden’s inauguration.

Biden is unlikely to make any immediate changes to US-China relations, but has repeatedly stated that he would prefer to work with US allies to enforce “traffic rules” for world trade.

Still, this approach would be at odds with that of the Trump administration, which often took aggressive, unilateral measures to challenge China on economic and national security issues.

– CNBC’s Evelyn Cheng contributed to this report.

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Categories
World News

China says it should reply to delisting of telecom giants

Flags of the United States and China are displayed on the booth of the American International Chamber of Commerce (AICC) during the International Trade Fair for Services in Beijing, China on May 28, 2019.

Jason Lee | Reuters

China on Saturday promised to respond to the New York Stock Exchange’s delisting of three telecommunications giants under an executive order signed by President Donald Trump in November.

The Ministry of Commerce said in a statement that China “will take the necessary measures to vigorously protect the legitimate rights and interests of Chinese companies,” according to the state-run Global Times.

The NYSE announced Thursday that it had acquired China Telecom Corp. Limited, China Mobile Limited and China Unicom Hong Kong Limited will delist. Trump signed an order in November preventing Americans from investing in companies alleged to be affiliated with the Chinese military.

The investment ban goes into effect on January 11, just days before President-elect Joe Biden is inaugurated. According to the NYSE, trading with the three companies may stop as early as Jan 7th or Jan 11th.

The Commerce Department said the US is “abusing national security and using state power to crack down on Chinese companies” and that the move “is inconsistent with market rules and logic, which not only harms the legitimate rights of Chinese companies,” but also the interests of investors in other countries, including the US. “

It added, “We hope that the US and China will work together to create a fair, stable and predictable business environment for companies and investors, so that bilateral economic and trade relations can re-emerge.”

Trump has pursued an aggressive economic agenda against China that has become even more restrictive since the emergence of Covid-19, which Trump derogatoryly called the “China virus” in Wuhan.

Biden is not expected to change US-China relations dramatically, and he said Monday he would “hold China’s government accountable for its abuses in trade, technology, human rights and other areas.”

The White House did not immediately respond to a request for comment on China’s statement on Saturday. The Biden transition team also did not respond to a request for comment.

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