Hallett Decarbonises Cement with CBA's Backing
Commonwealth Bank of Australia
The Hallett Group is embarking on an ambitious mission to revolutionise and decarbonise Australia's cement and concrete industry, thanks to the support of a Green Loan from the Commonwealth Bank.
As the primary supplier of building and construction materials in South Australia, Hallett has secured a substantial $51 million Green Loan to propel its Green Cement Transformation Project (GCTP). This visionary initiative is designed to transform industrial waste by-products into eco-friendly cement, setting the stage for a sustainable future.
Spanning across Port Augusta and the Port of Adelaide, Hallett's GCTP is focused on the production of supplementary cementitious materials (SCMs), innovative products poised to replace conventional, carbon-intensive clinker-based cement in various concrete and mining applications. The overarching goal is to replace more than 50 per cent of traditional cement, a major contributor to carbon dioxide emissions, and ensure a steady supply of SCMs, aligning with Australia's decarbonisation goals.
Cement is the second most consumed material globally, trailing only behind water. Shockingly, it stands as one of the leading sources of carbon dioxide emissions, responsible for nearly 8 per cent of the world's carbon footprint.
Chris Williams, Executive General Manager of the Major Client Group at Commonwealth Bank, emphasised the strategic importance of Hallett's infrastructure investments. These investments are set to play a pivotal role in reducing Australia's emissions while fortifying the nation's economic foundation.
Williams highlighted how Hallett's innovative approach simultaneously generates employment opportunities and addresses the imperative task of reducing greenhouse gas emissions in a carbon-intensive industry.
Williams stated, "Hallett's Green Loan acknowledges the environmental significance and circular economy attributes of its Green Cement Transformation Project. Cement is a ubiquitous component in modern construction, and it underpins critical elements of our future economy, including wind farms and mineral mining. Lowering cement's emissions is essential for propelling us toward a decarbonised future."
Kane Salisbury, CEO of Hallett Group, underscored the importance of securing Green Loan certification for their project through Commonwealth Bank. This milestone marks a significant step toward establishing Australia's most innovative and sustainable cementitious materials, a development with potential global implications.
Salisbury emphasised the opportunity to create a domestic supply chain for low-carbon cementitious materials, which play a pivotal role in concrete production—the cornerstone of our society. He acknowledged the fundamental role cement and concrete play in decarbonisation efforts and expressed pride in Hallett's role as a global trailblazer, demonstrating that challenging waste streams can be transformed into valuable resources.
In partnership with Hallett, Commonwealth Bank's Structured Asset Finance and Sustainable Finance teams have orchestrated a tailored $100 million debt finance package, with $51 million dedicated to the Green Loan component. The remainder of the project's funding is sourced from Hallett, bolstered by a $20 million Modern Manufacturing Grant from the Commonwealth Government.
Hallett's Green Loan strictly adheres to the Green Loan Principles established by the Asia-Pacific Loan Market Association (APLMA), with a focus on environmental and circular economy criteria. The funds from the Green Loan will fuel the GCTP, advancing Australia's journey towards a greener future.
Commonwealth Bank, serving as the sole Green Loan coordinator and financier, enlisted the independent expertise of DNV to provide a second-party opinion on the transaction's alignment with APLMA principles. This collaborative effort reflects a commitment to sustainability and innovation in the pursuit of a cleaner, more eco-conscious future.
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Source: CBA
