ACC ready to make the switch from gas, Egypt

ACC ready to make the switch from gas, Egypt
Published: 31 May 2013

Arabian Cement Company (ACC) has taken all the steps needed to make the switch from gas to coal and refuse derived fuel, according to the company's chief.

Jose Maria Magrina, CEO of Egypt-based ACC, told local press: "ACC is ready to substitute 100 per cent of the amounts of gas required to operate its plant and has applied for the necessary government permits to do so on 14 March 2013. However until now no answer has been received from the government, even though this is something that will positively impact the national economy."

Until late 2010, the government was encouraging producers to use natural gas, resulting in manufacturers investing in 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.

Over the course of the last four months, the Egyptian cement industry has lost 20 per cent of produciton capacity due to a shortage of energy sources, while ACC has lost 25 per cent. More losses are expected during the summer months and could result in a loss of production of 50 per cent.