1 JISC WORKSHOP : JI 0001 October 2007 CRH Europe Materials Switch from Wet-to-Dry Process at Podilsky Cement A Joint Implementation Project

2 JISC WORKSHOP : JI 0001 October 2007 CRH Europe Materials

3 JISC WORKSHOP : JI 0001 October 2007 CRH Europe MaterialsCRH  Founded in 1970 by merger of cement and concrete companies in Ireland.  Over 3300 facilities in 28 countries.  20 cement plants in 12 countries  22 million ton capacity.  2006 Sales revenue was € million  2006 Profit before tax was €1 602 million  Current market capitalisation is €17 billion  CO 2 “footprint” from cement making is 12 million tonnes CO 2.

4 JISC WORKSHOP : JI 0001 October 2007 CRH Europe Materials Podilsky Cement  Podilsky Cement operates close to the town of Kamyanets Podilsky in Khmelnitsky Oblast of Ukraine.  A historical area with a growing tourist industry.  Cement production started in 1971 using wet process technology.  Peak capacity was 3.8 million tonnes cement.  Current capacity is 2.5 million tonnes cement per annum.  Employment at the plant is  The company was privatised in 1994 with CRH becoming a shareholder in 1999

5 JISC WORKSHOP : JI 0001 October 2007 CRH Europe Materials Joint Implementation Project.  To switch the process of cement making from wet to dry.  Total project cost is estimated to €150 million  Key Dates:  Initial Concept: November 2004  PIN: December 2005  PDD: July 2006  Determination: September 2006  Letter of Approval Ukraine: December 2006  Letter of Approval Ireland: January 2007  Registration: March 2007  Contracts with suppliers: March 2007  Plant Start up: Autumn 2009  Total lead time is 5 years.

6 JISC WORKSHOP : JI 0001 October 2007 CRH Europe MaterialsConcept  CRH prepared a CO 2 strategy which has led to our target of a 15% reduction in specific emissions on 1990 levels by  Concepts considered:  Dilution of clinker in cement  Use of Biomass  Development of new products  Replace high emitting and inefficient plants.  Podilsky Cements kilns are high emitters but investment in Ukraine was not attractive due to low return on investments.  The JI process offered an opportunity to bridge the gap between the project cost and acceptable returns.

7 JISC WORKSHOP : JI 0001 October 2007 CRH Europe MaterialsBenefits The key benefits from the project will be:  Estimation of CO 2 emission reductions: 3.03 million tonnes  Reduction in dust emissions from 150 to 10 g/sec.  Continuation of production.  45% reduction in fuel consumption  Implementation of modern technologies