Regulatory Considerations

Portland Cement Emissions

The Portland cement industry produces an estimated 5% of global man-made CO2 emissions.  Of these emissions, 50% are from the chemicals processed while producing Portland cement and the other 50% from burning fuel. It has been estimated that the production of one ton of Portland cement generates approximately one ton of CO2 emissions.

CO2 Legislation

President Barack Obama has stated that the issue of climate change is an area of focus during his second term. The President actually has the ability to increase the regulatory burden on coal-burning power plants through the Environmental Protection Agency. He does not need Congressional approval as the Supreme Court has previously determined that the EPA has the authority to regulate carbon dioxide emissions without further legislative authority. In September of 2013, the EPA released a proposal that would impose the first-ever limits on greenhouse gases produced by newly built power plants. It would especially impact coal burning power plants. The rule does not apply to existing power plants, though the EPA is expected to address those plants in a second rule due to be proposed next June and implemented a year later.

Carbon Credits

The implementation of a cap-and-trade program or a carbon tax could greatly benefit Reco Cement. We believe our additive would qualify for valuable carbon credits.

Although our products and technologies are attractive to the Portland cement industry even without such regulations, the urgency of switching to “green” products such as those produced by Reco Cement would accelerate if the EPA implemented rules that would significantly increase the regulatory costs associated with carbon emissions.