The federal government has granted $50 million to Adbri, a building materials group, through the Commonwealth’s Powering the Regions Fund.

This funding aims to accelerate the decarbonisation efforts within the challenging-to-address cement production sector.

The investment will bolster the capacity and output of lower-carbon cement products at Adbri's Birkenhead plant in Adelaide, which stands as South Australia’s largest cement facility.

Specifically, the grant will facilitate the initiation of front-end engineering and design (FEED) studies and potentially the construction of a new vertical roller mill (VRM), along with a post-production blending system at the Birkenhead site.

Mark Irwin, CEO of Adbri, remarked, "Adbri has achieved notable progress in emission reduction at its Birkenhead site, being the pioneer cement manufacturer in Australia to integrate alternative fuels alongside natural gas in the clinker manufacturing phase."

He added, "With the backing of the Commonwealth, we have the opportunity to expedite the decarbonisation of our processes and offerings."

Adbri anticipates the completion of the FEED study by the first half of 2025.

Subsequently, pending board approval, construction of a new vertical roller mill is projected to commence, aiming for operational status by 2026.

The schedule coincides with the introduction of a new hybrid electric battery vessel slated for 2026.

The vehicle will have the capacity to transport up to 2.7 million tonnes of limestone annually from Adbri’s Klein Point quarry to Birkenhead.

Expressing gratitude to the government, the CEO stated, "I appreciate the government's assistance in expediting the reduction of emissions in industries like cement, which are high in emissions and challenging to address, all while bolstering local manufacturing and employment opportunities."

He emphasised, "Cement serves as a vital ingredient in concrete, the most widely utilised man-made product globally."