Boral Ltd has been awarded $24.5 million in federal government funding for a new cement kiln infrastructure project at its Berrima Cement Works.

The project aims to reduce CO2 emissions from cement manufacturing by up to 100,000 tonnes per annum, based on predicted production rates.

The funding, announced today by Minister for Climate Change and Energy Chris Bowen MP, is part of the federal government’s Powering the Regions Fund.

It will support Boral’s kiln feed optimisation project, a key component of the company’s decarbonisation strategy.

The Berrima Cement Works, which supplies up to 40 per cent of cement in NSW and the ACT, is strategically significant to both Boral and Australia’s manufacturing capability.

The grant will supplement Boral’s investment in a specialised grinding circuit and supporting infrastructure.

The integration of this circuit will enable Boral to increase its use of alternative raw materials (ARMs) in kiln feed from 9 per cent to 23 per cent, reducing the amount of limestone needed.

Boral plans to use ARMs derived from by-products from steel manufacturing and industrial waste, including granulated blast furnace slag, steel slag, cement fibre board, fly ash, and fine aggregates from recycled concrete.

This will lower the carbon intensity of the resulting clinker by up to 11 per cent, with 9 per cent attributable to a reduction in calcination emissions and 2 per cent attributable to thermal efficiency gains, according to Dr Ali Nezhad, Head of Innovation and Sustainability at Boral.

Boral CEO Vik Bansal stated that the grant signifies the federal government’s confidence in Boral’s decarbonisation and innovation efforts.

He added that Boral is on track to remain below the baseline safeguard mechanism requirements and is investing in the future of Australia’s manufacturing and construction sector.

The project is expected to be fully operational in 2028.