PCA: US$4.7B price tag for EPA proposal

PCA: US$4.7B price tag for EPA proposal
Published: 06 July 2010

In a June 28 webinar hosted by Portland Cement Association’s Vice President-Regulatory Affairs Andrew O’Hare, CAE, PCA’s Chief Economist Edward Sullivan and Cement Americas, cited dire consequences for the cement industry of national emission standards for hazardous air pollutants (NESHAP) proposed by the Environmental Protection Agency: chiefly, closure of a minimum 30 cement plants subject to compliance-related investments, amounting to an outlay of US$60m average per plant for abatement equipment and US$4.7bn industry wide. Moreover, in view of initial and operational expenses, US$21/t added to the cost of cement could be expected by 2020. Coinciding with the cement industry’s current US$7bn ramp up, Sullivan said, EPA regulations and associated costs stand to jeopardise expansion of domestic capacity, leading to imported supply of 36 per cent of U.S. powder consumption by 2020.