Titan Zlatna Panega Cement AD is part of the TITAN Group and is one of the main manufacturers of cement in Bulgaria. The company is currently operating ready-mix concrete plants in four cities and actively seeking new quarries for extraction of gravel, sand and crushed stone. The company owns a cement plant in the Zlatna Panega village and eight ready-mix concrete plants in Sofia, Plovdiv, Stara Zagora and Veliko Tarnovo. Adamantios Frantzis is the General Manager of Titan Zlatna Panega Cement.
Mr. Frantzis, cement production is considered a heavy polluter but at the same time, there is a lot of leeway to improve the sustainability aspect of its operations and processes. Titan Zlatna Panega counts among the pioneers with respect to its proprietary cement technology. Can you tell us a bit more about this?
Concrete, and particularly cement, is the most widely used building material in the world. According to the EU’s Sustainable Finance Taxonomy, cement supports the transition to a climate-neutral and resilient economy. Cement is everywhere around us – it is used for the construction of energy-efficient buildings, road and railway infrastructure, water treatment plants, and for the foundations of wind turbines and solar panels.
The cement sector faces many economic and technological limitations for its full decarbonisation. However, we at TITAN are committed to delivering carbon-neutral concrete to our society by 2050. TITAN Group was among the first cement companies worldwide to have its near-term CO2 emissions reduction targets validated by the Science Based Targets initiative (SBTi) as consistent with the reductions required to keep global warming to 1.5°C.
Like all other companies in the TITAN Group, Zlatna Panega has set decarbonisation goals by 2030. To achieve them, the company relies on a palette of measures – using more and more alternative fuels, increasing energy efficiency, modernising its equipment and processes, investing in renewable energy sources, creating low-carbon products and implementing cutting-edge technologies and solutions. Our roadmap streamlines the efforts of the company and ensures reaching our ambitious targets and our growth.
Over the last two years, we faced many external challenges: the pandemic, the war in Ukraine, extreme energy prices and high inflation. Within this context, Zlatna Panega Cement managed to strengthen its operation and achieve significant results with respect to energy efficiency and carbon emissions. The plant decreased its CO2 emissions by 4% in 2022 y-o-y and the consumption of natural gas by 60%.
The cement factory in Zlatna Panega village is also on the road to becoming more sustainable. What measures have you implemented there recently?
In 2022, we invited one of the most reputable research institutes in the cement sector in Europe – the Research Institute for the German Cement Industry, to conduct an energy efficiency audit in the cement plant. Following up on that, we have already implemented some of the measures and succeeded in significantly reducing the electrical energy consumption in the process of preparation of raw meal. In line with our key priorities, we have installed an electrolyser at our site in Zlatna Panega and started producing hydrogen, which is currently used as a combustion catalyst in the cement clinker kilns. The use of hydrogen and premium-quality alternative fuels helped us reduce the use of fossil fuels in our kilns. In 2022, we reached close to 50% share of alternative fuels in our fuel mix. The alternative fuels are produced at our premises in Zlatna Panega and consist of non-recyclable plastics, rubber, paper, and agricultural wastes. In 2022, Zlatna Panega Cement utilised 120,000t of waste in the form of fuel and raw materials. If not used in our plants, these wastes would have been landfilled and would have polluted the soil and the water of the country. By utilising alternative fuels and raw materials the company contributes to the circular economy and to the sustainable development of the country.
Earlier this year we launched on the market two new types of cement with a much lower carbon footprint compared to the old types. One of them is new not only for Bulgaria but also for Europe – it has been produced in conformity with an EU standard adopted just a year ago.
Last but not least, we continued our effort in halting the biodiversity loss and preserving the quality of the air and water. We have finalised recently a net impact assessment on biodiversity and an ecosystem services assessment for the areas of our quarries. These studies assisted us in planning better rehabilitation activities and reaching a net positive impact on biodiversity at the end of the concession period. We apply a strict water management plan and maximise the use of recycled water. In 2022, we reduced the specific fresh water consumption by 33% compared to 2021 and increased the use of recycled water by 20%.
Cement production requires a high level of expertise and is also not without its hazards. How do you engage and retain employees?
Nearly 250 people work in the company and almost 90% of them are from the region. Our people are special. Our product is the second most consumed product in the world after water. Concrete is a landmark material of modern civilisation. Our employees share the company’s ambition to constantly decrease our carbon footprint while we deliver quality products to our customers. This creates a purpose and a sense of significance and importance. We are committed to maintaining the best working environment, promoting employee development, improving health and safety, efficiency and productivity and ensuring physical and mental well-being.
For the fifth year in a row, the factory has received a "Green grading" for its health and safety performance in a 360-degree safety audit by the TITAN Group. The effect of these efforts is reflected in the numbers. The company is deservedly proud that for two years (more than 740 days) we have not had a single accident while working with our own employees. This is our greatest reward.
How do the Bulgarian operations contribute to Titan Group’s sustainability efforts and strategy?
Decarbonisation, digitalisation, growth-enabling work environment, positive local impact and responsible sourcing are the focus areas of TITAN Group. The cement plant in Bulgaria is among the best in the Group with respect to specific net CO2 emissions and the leader in the use of alternative fuels as substitutes to traditional fossil fuels. TITAN Zlatna Panega is the first plant in the Group to implement the use of hydrogen in the clinker production process, testing of chemicals for optimisation of the production process, and digitalisation in the area of preventive maintenance.
Are there new sustainability projects or measures in the pipeline?
We continue to invest in our plants (cement and ready-mix concrete) and in the sustainability of the communities we operate. In 2023, we aim to complete the modernisation of our installation for alternative fuels and start the construction of a 5-MWp solar plant. These projects will enable us to further increase the use of alternative fuels, will strengthen our resilience to external energy crises and at the same time will decrease our environmental footprint. We expect to reduce our direct CO2 emissions by more than 5,000 t per year and our indirect CO2 emissions by 3,000 t per year.