High-performance, less carbon-intensive and more energy-efficient cement LC3 can reduce greenhouse gas emissions and help protecting the climate. This technology calcines raw clay at lower temperatures than traditional clinker, thereby significantly reducing the amount of energy required. LC3 is the only low-carbon cement available for deployment at scale for decarbonising this industry sector.

The SCG Ta Luang Plant Cement LC3 Project Thailand is managed by Siam Cement (Ta Luang) Company Limited (STL). Implementation is scheduled to begin in August 2026, with production and monitoring commencing in November 2027, measured against a conservative reference scenario of blended hydraulic cement with an 84% clinker factor. By utilising LC3 technology for clinker substitution, the activity generates surplus greenhouse gas (GHG) emission reductions which go beyond the clinker substitution measures defined in the current sectoral action plans of the NDC Action Plan on Mitigation in Thailand (2021–2030). Furthermore, this activity is well-aligned with the national climate mitigation targets and strategy for clinker substitution and is actively contributing to the national 2050 Net Zero target.

ITMO revenue is crucial to unlock investment for the activity and to subsidise the LC3 sales revenue, keeping its selling price comparable to traditional cement to remain competitive. By leveraging ITMO revenue to offset initial costs and knowledge gaps, this activity establishes a self-sustaining commercial model capable of operating independently beyond 2030, continuing to reduce GHG emissions in the long term.

The activity demonstrates additionality by overcoming technical and market barriers, addressing a critical financial gap where the internal rate of return without carbon finance falls well below the benchmark. A robust monitoring is conducted, utilising an automated system to track production volumes and energy consumption to ensure verified emission reductions through 2030.

Environmental benefits: The activity reduces GHG emissions via clinker replacement, integrates solar power alongside biomass and alternative fuels like Refuse Derived Fuels (RDF) which are produced from domestic and business waste, which includes biodegradable material as well as plastics.

By piloting LC3 and demonstrating its successful application in crucial infrastructure projects, this activity is creating a powerful demonstration effect. It is expected to catalyse market confidence, driving broader adoption among commercial consumers. Ultimately, this shift in demand will incentivise other domestic cement producers to transition toward LC3 technology, resulting in a sector-wide transformation that significantly accelerates Thailand’s GHG emission reductions beyond 2030.

The activity also addresses multiple Sustainable Development Goals (SDGs):

SDG 7 (Affordable and clean energy): In addition to reducing clinker, STL has made significant strides in adopting solar power, replacing grid electricity and thereby increasing the share of renewable energy in the national mix.

SDG 9 (Industry, innovation and infrastructure): The innovation of LC3 is a primary driver for the transition to low-emission infrastructure, facilitating a cleaner cement production process that aligns with Thailand’s national decarbonisation targets.

SDG 12 (Responsible consumption and production): Furthermore, the lower temperature needed for calcined clay directly translates to a substantial reduction in the fossil fuel consumption during manufacturing, supporting a shift towards more sustainable production methods.