Oman Cement turns to waste as fuel alternative

MUSCAT, MAR 9

Oman Cement Company has announced the launch of a project that harnesses industrial waste to supplement its energy requirements while reducing its dependence on fossil fuels, chiefly natural gas.

Currently installed at the cement manufacturer’s Misfah complex in Muscat Governorate is a shredding machine designed to prepare industrial waste as a fuel resource. At the same time, a contract has been awarded for the supply and installation of a plant that will feed industrial waste into Kiln-1.

The initiative is part of the publicly listed company’s strategy to enhance efficiency, increase capacity and reduce reliance on fossil fuels, said Xu Gang, Chairman of the Board of Directors of Oman Cement. It also aligns with Oman Vision 2040 and the company’s broader decarbonisation goals, he stated in the company’s 2025 annual report.

Earlier in 2024, Oman Cement announced plans to invest in a waste-to-energy plant designed to utilise Refuse Derived Fuel (RDF) — a form of processed municipal solid waste — as an alternative source of energy supply. RDF derived from municipal solid waste typically consists of different types of waste, such as non-recyclable plastic and paper, wood chips and sawdust and other mixed combustible materials processed according to required specifications.

Previously in February 2020, Oman Environmental Services Holding Company (be’ah) had formalised a deal to supply Oman Cement with processed scrap tyres as a fuel resource for use in its cement kilns. Under the agreement, be’ah committed to supplying around 30,000 tonnes per annum of Tyre-Derived Fuel (TDF) processed from scrap tyres.

“The company is, under its alternative fuel initiatives, considering using products derived from municipal solid waste to reduce gas consumption towards decarbonisation in line with Oman Vision 2040”, the Chairman stated.

Oman Cement reported modest operational growth in 2025, with clinker production rising to 2.97 million tonnes and cement output reaching 3.38 million tonnes, representing increases of 3.39% and 2.19% respectively compared with the previous year. Cement sales volumes also climbed 2.9% to 3.40 million tonnes, generating revenues of RO 68.94 million, slightly higher than the RO 67.65 million recorded a year earlier. Clinker sales more than doubled to 57,554 tonnes, reflecting the company’s efforts to diversify its product mix.

Despite higher production and sales volumes, profitability declined during the year. Profit before tax fell to RO 9.57 million from RO 13.07 million in the previous year, while profit after tax dropped to RO 8.30 million from RO 11.12 million. The decline was attributed mainly to higher natural gas and electricity costs, increased lease rentals and greater kaolin consumption, among other factors.

Oman Cement is majority-owned by Hong Kong-based Huaxin International Holdings Limited through its wholly owned subsidiary, the Mauritius-based Abra Holdings Limited.