About Us
About Us
Next Generation SCM is a UK company, established in 2023 by Christian Husum, a successful and experienced serial entrepreneur and former corporate lawyer.
Next Generation SCM has a license to produce calcined clay on the CemTower technology in a number of territories.
We have entered into a joint venture with Saudi Arabian Nizak Mining Company, a fully owned subsidiary of City Cement Company(Tadawul: 3003) – Saudi Arabias most dedicated sustainability driver in the building materials sector.
The plan with our first joint venture is to produce premium quality calcined clay SCM not only in Saudi Arabia, but also across the GCC and Jordan.
What is SCM and what is the market for SCM?
SCM – or Cementitious Supplementary Materials are substitutions for Portland Cement in Concrete mixes. These have traditionally been bi-products of CO2 intensive industrial production such as fly ash or slag.
Solving The Global SCM Crisis
The two most used SCM’s today are disappearing:
- Slag from Coal fired Steel Plant kilns is disappearing in Europe due to a shift into Electric steel plants and the EU-ETS will likely close the rest. Slag is now predominantly available in Asia and is expensive and CO2 intensive to transport.
- Fly Ash is disappearing in Europe as the Coal-Phase Out continues. Fly Ash is relatively inexpensive, but the substitution is limited compared to Slag and it is also expensive and CO2 intensive to transport.
- Meanwhile both Slag and Fly Ash are not likely to keep their zero CO2 status as both the steel and energy sectors have CO2 reduction targets to meet as well.
- Next Generation SCM can solve the SCM crisis by producing calcined clay with a consistent high quality, which can be used with a high substitution. We will use a commonly found feedstock and we can produce locally with little to no CO2 footprint.
- And our SCM will solve the crisis without customers paying a premium
SCM’s are likely to be one of the most attractive value pools in the future
Preliminary
Expected value shifts
Demand
Supply
Margins
Traditional clinker
Low-carbon clinker
Traditional SCMs/fillers
Innovative SCMs/fillers
Alternative blinders
Our Technology supplier
CemGreen is a Danish company, established in 2016 with a vision to become the leading knowledge provider to cement and concrete manufacturers for the utilisation of clay deposits. By commercialising in-house developed technical SCM solutions by partnering with established cement producers and other stakeholders.
CemGreen have managed to grow from a small startup with an idea to a fully operational technology provider with a 40% share in the first factory in Denmark , without having to dilute their equity.
The current and future focus of CemGreen is to keep optimizing the CemTower technology as well as to develop new add ons to the towers.
Our founder and CEO, Christian Husum, has strong and close relations with the owners of CemGreen and the mutual trusting relationship has lead to the exclusive rights.
The worlds biggest concrete supplier has approved the technology
- Fortune 500 company CRH, which is listed on the NYSE and with a current market cap of US$55 billion, is the biggest concrete supplier in the world. CRH owns 60% of the first SCM factory using the same technology as we have the rights to. Employing 75,800 people at 3,160 operating locations in 29 countries, CRH has market leadership positions in both North America and Europe.
- CRH has verified the technology and has performed large scale testing of the calcined clay product. The first factory will achieve commercial production in Q4 2024. EPD for the product was issued in July 2024 under the product name NovaClay.
- In their own words: “NovaClay is revolutionising the cement industry with a breakthrough innovation aimed at significantly reducing CO2 emissions.” The global market for SCM at full implementation is 35-50% of 4.3 billion ton = 1.5-2.25 billion ton per year or the equivalent of full production from 4.400-6.450 calcined clay plants.
Why Calcined Clay?
Raw material abundance
With suitable clay rich raw materials exceeding cement raw material limestone 5 to 1 globally utilisation of calcined clay to replace cement significantly reducing natural resources depletion.
Zero CO2 emission potential
As the CemTower® operates at below decarbonisation temperatures no process CO2 is emitted paving the way for Zero CO2 emissions cement replacement calcined clay. The CemTower® plant – is prepared for hydrogen or RDF-based processing and zero CO2 emissions but until hydrogen becomes locally available it can operate on natural gas resulting in 37 kg per tonne CO2 emissions equivalent to a 97% reduction compared to OPC cement production.
Market potential
With the development of the CemTower® technology and due to the superior reactivity of the premium performance SCM, the global market for calcined clay has grown exponentially.
What’s new about our calcined clay?
Under the EU ENV 197 CEM II and US ASTM C150, substitution of calcined clay is already allowed up to at least 35% in 85% of all concrete mixes as part of a pre-approved, mixed CEM II cement product.
Due to the superior product properties of the calcined clay from the CemTower technology, Denmark, through rigorous certified third party testing of the calcined clay product, has now government approved calcined clay for usage in concrete as a direct substitute for cement in all environmental exposure classes. The ratified replacement ratio is up to 35% independent of the cement type – even including CEMII which results in a +50% OPC replacement. Denmark is the first country in the world to introduce this new standard which is based solely on the verified performance of the Made on CemTower® calcined clay. This resulted in the publishing of the updated DS 206:2024 concrete standards.
The building standards boards in 3-4 other EU countries are also being reviewed and following this, there will be an EU Harmonization process. Meanwhile we will lobby to have it changed around the world.
In lab tests, the 28-day strength at 50% substitution has been measured up to 53 MpA – higher than the minimum strength for maximum strength cement. Likewise, a 60% substitution has resulted in +43 MpA – 42.5 MpA is the most common cement.
Next Generation SCM will be part of the first wave of commercializing calcined clay. Even though there may be other players in the market, currently only calcined clay from the CemTower Technology can provide the maximum benefits that the new building standards allow. This is because the CemTower technology is currently the only technology, which can guaranteeCooking temperatures low enough to avoid the development of free lime in the calcined clay.
Furthermore there are a couple of hugely unique benefits regarding logistics and sulphur gasses.
Scaling THIS technology vs. others
- New and Boring is an odd combination, but it’s an excellent recipe for scaling fast.
- Calcined clay is already being used in construction so in a sense it is a simple and rather boring product. But if you want to go to scale fast, then simple and boring is good.
- Big investments need certainty. Our calcined clay delivers.
The Regulatory Push Is Here
EU Carbon Border Adjustment Mechanism:
EU ETS* free CO2 allowances to be reduced:
- 2026: 2.5%
- 2027: 5%
- 2028: 10%
- 2029: 22.5%
- 2030: 48.5%
- 2031: 61%
- 2032: 73.5%
- 2033: 86%
- 2034: 100%)
- 2034 =
- Effectively a "Carbon Tax"
EU Carbon Border Adjustment Mechanism: Cement price impact
2024 EU €/t Illustrative
Free Allocations
693kgCO2/tKK
EU Av. KK CO 2
811kgCO2/tKK
EUA
€80-90/tCO2
CO2 Cost/t Cem I
~€9-10/t
Cash cost Cem I inc. CO2
~€65-75/t
EBITDA Margin %
~27-32%
Cem I Price (Net Ex Plant)
-€90-110/t (already much higher in some countries)
2034 EU €/t Illustrative
Free Allocations
0
EU Av. KK CO 2
760kgCO2/tKK
EUA
€140/tCO2
CO2 Cost/t Cem I
~€9-10/t
Cash cost Cem I inc. CO2
~€150/t
EBITDA Margin %
~30%
Cem I Price (Net Ex Plant)
~€215/t
The Customer Pull is here
Office buildings with sustainability certifications command a 6% rental premium (CBRE, November 29, 2022)
Green Buildings Market Projected to Grow at a CAGR of 9.50%, Reaching USD 1312.12 Billion During Forecast Period 2023 and 2030(Report by MRFR, May 23, 2023)
Calcined Clay is the building material of right now and of the future as it integrates perfectly into the cement and concrete industry without loss of strength, durability or workability
And governments are now legally obligated to meet their climate targets under human rights law! And changes have followed – more will follow
Human rights violated by Swiss inaction on climate, ECHR rules in landmark case
Court finds in favour of group of older Swiss women who claimed weak policies put them at greater risk of death from heatwaves
Most polluting cements ruled out in Irish public procurement
Highly polluting cements are to be ruled out of public sector projects in Ireland from September, due to new government public procurement rules.
The new rules include a number of key provisions designed to drive down emissions from cement and concrete – including requirements to:
- Drive down the main source of CO2 in cement, clinker, by 30 per cent, and avoid high carbon CEM I cements
- Require Environmental Product Declarations (EPDs) when procuring cement and concrete
- The over-specification of materials
- Carry out whole life-cycle greenhouse gas emissions assessments for new infrastructure projects and buildings above certain budget thresholds - with the thresholds tightening over a phased timeline from 2024-2026.
The Minister for Enterprise, Peter Burke, will write to public bodies in the coming weeks to advise them of the new guidance.
The mandated 30 per cent target for clinker reduction is a European first for Ireland. A mix of limestone and minerals heated in kilns to temperatures of circa 1450C, clinker is the source of over 90 per cent of emissions from cement. In Ireland, cement currently averages almost 85 per cent clinker.
Meet The Team
Christian Husum started Next Generation SCM in March 2023 with an aim to become a first mover and industry leader within Calcined Clay SCM. Originally a tax and corporate lawyer, Christian has been a succesful serial entrepreneur for almost 20 years, working primarily in Shipping, FMCG, Media, Corporate Services and Real Estate/Construction.
40+ years of experience in banking, financing, manufacturing, business consulting, business setup and development, particularly in The Middle East and Asia. Jason is a also a committed conservationist and climate change activist.
20+ years of experience in business development (Europe, USA, China, Japan), innovation, operations, and complex project management in the AEC industry (Architecture Engineering - Construction).
30+ years of experience managing operations in international companies, including senior leadership roles in the built environment. He has primarily worked as a contractor and developer but also successfully as a client consultant and entrepreneur.
20+ years of experience as Senior Financial Management Professional with a high-level skillset as well as both local MENA and international experience, especially from the US.
Core Technology
- At the core of our production is the exclusive use of a new, revolutionizing, patented technology, which provides a superior quality, low to zero carbon SCM, made by locally sourced raw materials and which can significantly help reduce the carbon footprint of cement.
- The product is approved for use under the EU ENV 197 CEM II and US ASTM C150 and in Denmark now under the revised DS 206: 2024
- The technology uses an external heat source, so the source of fuel can be Natural gas, hydrogen, electricity or even refuse-derived fuel.
Core Technology
- CemTower™ vertically integrates the pre-heating, heating (kiln) and cooling phases into one single tower, and the granular material is transported downwards by gravity over inclined grate plates within the tower.
- The use of CemTower™ reduces production costs. This is achieved most significantly through the maximized recuperation of excess heat (up to 95%), which allows for a drastic reduction of fuel and energy consumption.
- Additionally, CemTower™ has no moving parts resulting in enhanced efficiency and less maintenance due to less equipment wear. Combined with the low Capex requirements in erecting a CemTower™, the CemTower™ ensures higher profit margins. Also, as CemTower™ employs an external heat generator, the calcination process can be fueled by renewable energy, e.g., biomass, which is not possible in OPC production. Through the use of renewable energy for heating, the production of calcined clay on CemTower™ has the potential to become a zero-emission process.
Summary: Ground-breaking Technology
Currently, the CemTowers can be delivered within 4 months
Our first market: Saudi Arabia Strategy
We have partnered with a local respected, listed Cement company on a 50/50 basis to produce and deliver Calcined Clay to local and export clients. We have a lot of interest from the local Mega Projects.
The product will be positioned as a premium alternative to Fly Ash and Slag, of which there is no local production. They have high quality and plentiful clay deposits in Saudi Arabia. Our partner has 32 million MT available with high kaolin clay mineral and low moisture content.
The initial project is to install and operate 12 CemTowers in Saudi Arabia with a total production capacity of approx. 2.1 million MT/year or approx. 10% of the market for SCM at 35% substitution. Our JV Partner is interested in rolling out the production and product in all the GCC countries, which we are willing to explore.
We have a full Business Plan and 10-year budget, which can be shared with a signed NDA.
Why Saudi Arabia?
Why Saudi Arabia?:
Saudi Arabia is a leading G20 Nation Proud to be contributing
- 1st in population growth rate among G20 over the next 5 years
- Overall, 48% of the GCC economy
- 18th largest economy in the world
- 2nd largest GDP per capital amongst G20
Saudi Arabia is rich in clay resources and has an extraordinary demand for SCM with the Vision 2030 environmental goals.
Next Generation SCM is partnering with a listed, local cement company to produce calcined clay. Details will be public later in 2024.
Next Up: 15 further territories
Our exclusive territories stretch across Northern Africa and The Middle East and we have an option for further territories. We are specifically looking to go where there is a combination of an individually strong local market, paired with the strategic locations for exports (to Europe and Sub-Saharan Africa). This creates an optimal space for creating hubs of sustainable calcined clay production plants.
With our Saudi Arabian JV partner, we will likely explore the rest of the GCC and we are in talks to explore Morocco, Turkey, Greece, Egypt and US with another major listed European Cement company.
Funding needs
In our base case budget, we are projecting to need a total funding of US$200 million over 7 years, however the business will generate a significant return and therefore we estimate, that US$40 million will be sufficient to ignite the returns to the extent that the business will be self financed as well as to cover initial working capital.
The funding can be equity, debt, a revolving credit facility or a combination of equity and debt.