South Valley Cement Company (SVCC) has announced that they are to invest EGP 140 m (US$20m) in coal as an alternative source of energy.
Samar Abdul Al-Gawad a representative of SVCC board members says the use of coal aims at increasing the company’s productivity level to reach 100%. She added that despite the fact that the use of agricultural wastes is great its percentage in the energy mixture cannot exceed 15% or 20%. “The challenge the company faces in the use of agricultural wastes is that the market is not consistent and the products that are used as wastes, such as the linen seeds and corn cobs, are seasonal,” she added.
VCC has also prepared studies for the use of coal and agricultural wastes, but company officials said that the application of alternative energy sources suggested by the government will take at least 12 months. The company has applied for licences for coal usage and agriculture waste and is awaiting approval from the Ministry of Environmental Affairs.
The company is currently seeking to increase its investment and double its production capacity. The expansions will include two mills and are expected to take 18 months.
SVCC operated at 70% of its full capacity last year due to the energy shortages and it exported around 80,000 tons of cement from its production last year. South Valley Cement financial results show a profit of EGP 133. 474m (US$19m) for the period of 2013 while in 2012, it posted a net profit of 106.867 m (US$15m).