ENERGETICALLY MODIFIED CEMENTS

High quality cements with over 50% fly-ash or quartz sand

Ladies & Gentlemen,

I thank Intercem for inviting me to speak here today. My attendance here will be
divided into two presentations. In this first presentation I will address the issue of
emissions from cement production, the challenge faced in reducing these emissions
and how EMC proposes to address these challenges. In the second presentation, later
today, I will share with the audience the challenges that are to be confronted in
bringing new technologies to the markets and the progress that EMC has made and
continues to make to overcome these.

Cement Production and CO2 Emissions

There are varying reports on the CO2 emissions from Portland cement production.
The industry seems to have settled on a figure of around 5% of global emissions.

It is the view of EMC Cement that this is a far too conservative figure and that the
figure is closer to 10%. To the extent that this figure is not already reached, with
Chinas expected growth to 1 billion tons of cement production within a few years
and the reduction of emissions from other sources, this figure will be reached very
shortly. Indeed, in all likelihood it will be surpassed.

Our estimates are based on the following calculation:

Global cement production at present is about 1.9 mill tons and with estimated
continued expansion of Chinas cement production it will exceed 2 billion tons in the
next few years.

In the most modern cement plants about 970kg of CO2 is emitted for each ton of
clinker produced.

With Portland cement consisting of about 95/96% ground Portland clinker, clinker
emissions contribution to Portland cement emissions is about 926.4 kg per ton
Portland cement produced.

In addition comes the energy consumed in the clinker grinding process which
represent about 12% of total emissions placing total emissions at 1.0527 tons of CO2
for each ton of Portland cement produced.

On the basis of global production of 1.9 billion tons, emissions are then 2 billion tons.

However, with 70% of the cement produced in China coming from higher polluting
vertical kilns and still significant existent of other old technology in other parts of the
world, it is safe to estimate that there is at least another 100-200 million tons of
emissions that can be referred back to cement production.

All in all this puts total emissions from cement production at about 2-2.2 billion tons
or around 9% of global emissions.

And, this does not include the emissions resulting from quarrying activities and the
transport of limestone to the cement plants.

Some may wish to take issue with the basis for this calculation, but if they are not
100% accurate, they are certainly indicative of the emissions as they presently are or
shortly will be.

The Challenge of Reducing CO2 Emissions in Cement Production

According to data issued by Cembureau, about 54% of the CO2 emissions in cement
production comes from the natural release of CO2 from the burning of the limestone
in the kiln. Another 34% comes from energy consumed in the kiln and the final 12%
comes from grinding the clinker into cement.

According to data issued by the Portland cement industry, there is very little scope for
reducing energy consumption. Accordingly, it is reasonable to assert that the only
way to reduce emissions from cement production in a meaningful way is to reduce the
production of clinker and thus the production of Portland cement.

Obviously, one way to achieve this reduction is to find ways to produce cement that
offers increased performance thus requiring reduced use of cement. A lot of research
has gone in this direction, but apart from some niche applications, it has not met with
success. The problems have ranged from unwillingness of the market to accept new
materials to the inability to develop products that can compete with Portland cement
on the important combination of performance and price.

Well Known Materials, Competitive Performance & Cost
Critical Elements to Successfully Replacing Portland Clinker

As previously mentioned, many cement materials have been announced as
replacement for Portland cement, but without exception they have always failed to
meet all three of the critical requirements of (i) using well known raw materials the
interaction of which over the long run is already well known, (ii) competitive
performance with Portland cement and (iii) Competitive cost.

We shall today talk about a technology that meets all of these criteria.

INTRODUCING EMC

With the foregoing background, I am pleased to introduce the EMC method for the
production cement and pozzolans.

The development of EMC technology started in 1992, when Dr Vladimir Ronin a
guest researcher at Lule University of Technology, Sweden initiated a scientific
project dealing with intergrinding in vibrating mills Portland cement with different
supplementary materials. The first EMC patent was filed in 1993. Between 1997 and
2002 two additional patents were granted and another two patents are pending with
respect to EMC cement and EMC-CemPozz.

EMC cements and pozzolans are produced through a patented process of high
activation grinding of Portland cement together with pozzolans or fine quartz sand. In
the process, the materials are exposed to high energy impacts that create submicro
cracks in the particle surfaces, deform the particles, activate the surfaces, expand
particle surface and, in the process, increase the reactivity of the materials.

It is important to note that while the materials are exposed to high energy impacts,
energy consumption is low and the over all production cost highly competitive. Thus
EMC products can be marketed at prices that are very competitive with Portland
cement as well as today's blended materials while still leaving sufficient economic
margins.

EMC today focuses on the production and sales of three principal products;

(i) Cement with about 70% fly ash content, a product that we market as
EMC70f,

(ii) cement with about 50% fine quartz sand content, a product we market as
EMC50q, and

(iii) a pozzolan consisting of 90-95% fly ash and 5-10% Portland cement
and/or cement kiln dust, a product we market as EMC CemPozz.

It is also possible to make EMC cements based on Ground Granulated Blast Furnace
Slag. This possibility will be developed further in the future.

As mentioned EMC has a significant experience in the industrial production. A pilot
EMC plant has been in operation since 1994 and the total amount of EMC production
to date exceeds 3500 tonnes.

A significant number of reference construction projects have taken place, including
cement for two bridges in the far north of Sweden (projects with Swedish State Road
Construction Commission) with very severe climate conditions with summer
temperature up to +30 and winter temperature as low as -30 degrees C.



EMC Patents today cover over 70% of the global cement market, including China
which by itself represents 40% of the global cement market.

The licensing rights to the EMC technology are today held by EMC Cement BV of
the Netherlands.

The EMC activities are today divided into two principle activities (i) Joint ventures
and licensing of the technology through EMC Cement BV and (ii) Research,
Development and Testing, conducted through EMC Development AB and EMC
Production AB, both of which are Swedish companies.

The products and technology presently being commercialised are the result of almost
13 years of research and testing. During this period, a number of pilot projects have
been concluded, from heavy industrial floors to bridge construction for the Swedish
Road Building Administration and extensive testing by independent experts from
Europe and the USA, all of which confirm that EMC products perform better than
existing cements.

At present a plant to produce EMC fly ash is under construction in the state of Texas
in USA with production start-up in June of 2004. The plant is located in conjunction
with a thermal power plant that produces about one million tons of fly ash and
500.000 tons of bottom ash per year.

Additional projects are under negotiation.

EMC VIZ PORTLAND CEMENT - A PERFORMANCE COMPARISON

Cement specifications vary from region to region and country to country. For
example, until recently virtually only Portland cement were used in Norway and
Sweden, while in Italy pozzolanic materials are used extensively for some 2000 years.

We shall here share with you a selection of the huge volumes of data that has been
generated on EMC cement over the past 10 years, including by leading cement
producers, concrete producers, and leading independent experts.


EMC CEMENT WITH 50-70% FLY ASH CONTENT

It is well known that from a durability point of view materials such as coal
combustion fly ash provide far superior performance to that of Portland cement and
that the only real limitation to the increased use of fly ash are (i) setting time, (ii)
workability, (iii) finishability and (iv) early age strength development.

Compressive strength development of EN mortar with
EMC50fa and EMC70fa
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10
20
30
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50
60
1 3 7 28
Curing time, days
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M
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PC
PC+20%FA
EMC50fa
EMC70fa

Above figure represents the strength development of EN mortars produced with EMC
cements containing 50% and 70% of fly ash Class F in comparison with pure Portland
cement and Portland cement with 20% FA. As can be seen, EMC50fa cement has
strength development in line with pure OPC and EMC70fa performs in line with OPC
with 20% FA.


CONCRETE WITH 50-60% CEMPOZZ CONTENT

Compressive Strength Development of EN mortar
0
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20
30
40
50
60
1 3 7 28
Curing time, days
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PC
PC+20%FA
PC+50%E-CemPozz

Above information demonstrates strength development of EN mortars containing
EMC-high reactive pozzolan: EMC-CemPozz in comparison with pure OPC and OPC
containing 20% of Fly ash (OPC replacement). This product can be simply added to
the concrete mixer in the same way as the concrete producer is doing today with fly
ash in traditional recipes. The test results show that replacement OPC by EMC-
CemPozz as high as 50% is equivalent to traditional 20% fly ash replacement level.

In USA, where an EMC pilot unit is in operation it has been confirmed by extensive
industrial tests, that EMC-CemPozz performs even more effective when it is used in
concrete. Below figure represents the strength development of housing concrete with
ca 271 kg of binder content per m3
with replacement of OPC with EMC-CemPozz up to 60%, which performs in line
with concrete containing only 20% of fly ash.

Strength Development of the Concrete Produced with EMC -
CemPozz (binder content 271kg/m3, w/B = 0.60)
0
5
10
15
20
25
30
7 28
Curing time, days
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OPC+20%FA
OPC+50%EMC-CemPozz_
OPC+60%EMC-CemPozz


As the data that we have shown demonstrate, EMC has resolved the strength
development challenges and we are pleased to confirm that we have also resolved all
of the other four critical criteria mentioned above.
































EMC CEMENT WITH 50% FINE QUARTZ SAND CONTENT

The data on EMC cements, containing 50% of fine quartz sand content clearly
demonstrate that concretes produced with these cements perform in line with or better
than OPC based concretes. This applies to strength development and other properties,
including setting time, workability, gas and liquid permeability, frost resistance, etc.

SUMMARY OF THE TEST RESULTS FOR EMC- 50q and EMC-20q
CONCRETES (w/B ratios 0.45 and 0.60)
(Test program performed by SINTEF, Norway)

Parameter Standardised method of testing
k-value of quartz filler in
EMC-blends
Properties of fresh concrete
NS 3662 (ISO 4109),
NS 3664 (prEN 1015-13)
1)
28 days compressive strength ISO 4012 2)
Capillary suction and porosity SINTEF-procedure, KS70 110 > 1.0
Carbonation
Accelerated SINTEF
Carbonation Test
0.5-0.8 (EMC-20),
0.5-0.6 (EMC-50)
3)
Water vapour diffusion Nordtest Build 443 > 1.0
Resistance to water
penetration
ISO/DIS 7031 > 1.0
Chloride permeability
Nordtest Build 443, ASTM C
1202 and Nordtest Build 355
> 1.0
Frost resistance Nordtest Build 376 4)

1) The tests showed that the concrete production properties of EMC cements did
not differ significantly from OPC reference mixes.

2) The tests showed that EMC-20q performs better than OPC and EMC-50q
performs in line with OPC.

3) Accelerated Carbonation Test showed that EMC cements perform in line with
traditionally blended cements, which demonstrated excellent resistance to carbonation
after decades of exploitation in real life conditions.

4) The tests showed that frost resistance may be achieved with proper air
entrainment, in line with normal procedures for OPC-concrete.

Recent tests show that the customer can also introduce 20-30% fly ash in the concrete
produced with EMC50q in the same manner as presently done with ordinary Portland
cement and with similar performance results.

For cement experts this will not be a surprise.


WHY FINE QUARTZ SAND CAN REPLACE PORTLAND CEMENT

While the use of pozzolans dates back some 2000 years before the invention of
Portland cement, the use of fine quartz sand has been first introduced by EMC.

How is the use of fine quartz sand in cement possible?

1. Typically, only about 50% of the Portland cement hydrates in the concreting
process because that is the extent of the water's penetration into the cement particles.
Through the EMC activation process, the hydration level is significantly improved
with the result that more of the performance potential of the Portland cement is
utilized.

2. Fine quartz sand consists of up to about 90% of silicon dioxide in a natural form.
By comparison, silica fume consists of about 98% silicon dioxide. The EMC process
also serves to activate the quartz sand particles. Tests done by SP Swedish National
Testing and Research Institute show that fine quartz sand put through the EMC
process attains a pozzolanic index above 25 (as required for CEM IV ). Obviously the
index will depend on the chemical composition of the material. However, because of
the effects of the EMC activation process, we can achieve the required performance
with significantly lower pozzolanic indexes.

3. In the EMC grinding process, the fine quartz sand acts as a grinding media to
further enhance performance.

4. The resulting size distribution and composition of the EMC provides for a very
dense concrete, yet with excellent concreting characteristics.

It is important to note that through the EMC process, the sand and the resulting
cement are both amorphous. The process is fully enclosed and automated and
excludes any contacts with operating personal. This combined with the
amorphization that takes place in the process means that there are no silicosis issues in
the manufacturing process and in the final product.


EARLY AGE PERFORMANCE - THE CHALLENGE OF POZZOLANS

As we have mentioned previously, traditionally, the only disadvantage of high volume
pozzolans such as fly ash and blast furnace slag compared to Portland cement are (i)
workability, (ii) setting time, (iii) finishability and (iv) compressive strength
development up to 28 days.

In all other aspects, notably the all important area of durability, these pozzolans
outperform Portland cement.

This is a very important issue because it sets out clearly the challenge for increased
use of pozzolans as one of proving short term performance. In other words, we will
know in 28 days the performance of innovative cements that are based on the
increased use of well known pozzolans.

As I hope to have shown in this presentation with EMC products we have resolved
these challenges. Time is too short in this presentation to provide an overview of all
aspects of the EMC Technolog but for those that are interested in further information,
EMC has prepared a complete book with technical, economical and commercial
information on its technology.

COST AND ENVIRONMENTAL CONSIDERATIONS

We stress that these products are all the result of a cost efficient and environmentally
friendly grinding process, not expensive and harmful processes or admixtures.

For example:

The grinding process does not emit pollutants into the air or into water.

There is essentially no waste material.

The grinding takes place in an enclosed process with the required dust
protection features.

Energy consumption ranges from 30-50 Kwh per ton product.

An EMC plant producing some 150,000 tons per annum can be operated by
about 12 people in total.

For comparison, the grinding of EMC products costs less and with less environmental
impact than that of grinding klinker.

It is also important to note that the EMC production process is not based on superfine
grinding; indeed, our cements have only about 25% increase in fineness. Moreover,
workability and finishability are improved.


REPLACING PORTLAND CEMENT WITH POZZOLANS AND FINE
QUARTZ SAND - THE ONLY WAY IN WHICH MEANINGFUL
REDUCTION IN CO2 EMISSIONS CAN BE ACHIEVED.

In March 2002, the World Business Council for Sustainable Development issued a
report entitled Towards a Sustainable Cement Industry. The Climate Change
Section of the WBCSD report identifies on page (vi) the principal areas that the
cement industry must follow if it wants to achieve sustainability. Those areas are:

1. Expanding sales of cement with lower clinker content (e.g. composite cement with
fly ash or blast furnace slag).

2. Increasing the use of alternative fuels (bio-based, low carbon, or waste fuels that
provide a net carbon dioxide emissions reduction).

3. Initiating energy efficiency enhancements (improving equipment and phasing out
inefficient plants.

4. Committing itself to innovation.

The report goes on to state that "without a commitment to long-term innovation, the
industry will likely find itself facing growing emission liabilities as individual nations
commit themselves to ever-tighter CO2 constraints in an attempt to stabilize
atmospheric concentrations of greenhouse gases".

EMC agrees with this assessment and we have been working for the past 12 years to
offer a technology that will achieve this objective. EMC understands the reluctance of
the cement industry to adopt a technology that strongly reduces the need for clinker
production. However, EMC would like to point out that when the cement industry
adopts the technology it still produces a cement on which it can make a profit. When
the cement does not adopt the technology, as our experience in the USA shows, others
use the technology, producing a cement replacement material, that has the same
reducing effect on clinker production and does nothing to enhance the profitability of
the cement industry.

I thank you for your attention.