Oman Cement is expanding its alternative fuels and raw materials strategy as part of efforts to reduce production costs, lower greenhouse gas emissions and improve the sustainability of cement manufacturing. In its Board of Directors’ report for the first half of 2026, the Muscat-based cement producer said it is strengthening the sourcing and use of alternative fuels and raw materials to increase its Thermal Substitution Rate, which measures the share of kiln thermal energy supplied by non-fossil fuel sources. The company is evaluating several options, including tire-derived fuel, recovered carbon black and oil sludge, while also continuing work with government authorities and other stakeholders on pretreatment and co-processing of municipal solid waste. The strategy could create additional outlets for end-of-life tire materials by linking tire recycling, pyrolysis outputs and cement kiln co-processing.

Alternative fuels strategy targets lower fossil fuel use

Oman Cement said it is evaluating a basket of alternative energy and feedstock options to reduce dependence on conventional fossil fuels and lower raw material costs. The company’s strategy is intended to support its broader decarbonization objectives while improving the long-term sustainability and efficiency of cement production.

Tire-derived fuel included among options

Tire-derived fuel is one of the alternative fuels under evaluation. Produced from shredded end-of-life tires, TDF offers a calorific value comparable to coal and can allow cement kilns to replace part of their traditional fuel requirement. Its use can also divert waste tires from landfills and other disposal routes while supporting circular economy objectives.

For the tire recycling sector, cement kiln demand for TDF can provide a large-volume outlet for end-of-life tires, particularly where local recycling markets for crumb rubber, molded products, rubberized asphalt or other material recovery routes are still developing.

Recovered carbon black also under review

Oman Cement is also considering recovered carbon black, which is typically obtained through tire recycling or tire pyrolysis. The material can serve as an alternative fuel and, in some applications, as a supplementary raw material. Its use could support better resource efficiency by replacing part of the conventional fossil-based inputs used in cement manufacturing.

Recovered carbon black and tire-derived oil are among the key outputs of tire pyrolysis. While recovered carbon black is increasingly being developed for higher-value applications in rubber, plastics and tire production, industrial uses such as cement manufacturing may also support broader market development for tire-derived materials.

Oil sludge and municipal waste also considered

The company is evaluating oil sludge as another alternative kiln fuel. Oil sludge is a by-product of oil production, refining and storage operations. After appropriate treatment, its recoverable hydrocarbon content can be used to replace part of the fossil fuels consumed in clinker production while providing a controlled disposal pathway for the waste.

Oman Cement also said it is working with government authorities and other stakeholders to advance the pretreatment and co-processing of municipal solid waste. Once processed into refuse-derived fuel or solid recovered fuel, the combustible fraction of municipal waste can replace coal or petroleum coke in cement kilns and reduce landfill volumes.

Thermal substitution expected to improve sustainability

Collectively, the initiatives are expected to increase Oman Cement’s Thermal Substitution Rate. A higher TSR can lower greenhouse gas emissions, improve energy efficiency and reduce dependence on fossil fuels in cement production. The approach also aligns cement manufacturing with circular economy practices by using selected waste-derived materials as alternative energy and raw material inputs.

Company also pursues growth initiatives

Alongside its decarbonization strategy, Oman Cement is pursuing other growth initiatives. Chairman Xu Gang said the company is progressing plans to establish an aggregates business using surplus crushing capacity. The project is expected to diversify revenue by supplying industrial customers and could create a platform for future expansion into ready-mix concrete and mortar production.

The company is also still considering a proposal for a new cement plant in Duqm with a clinker production capacity of 5,000 tonnes per day, reflecting its long-term growth ambitions.

First-half financial performance strengthened

Oman Cement reported stronger financial results for the first half of 2026. Cement sales increased 7.9% year-on-year to 1.761 million tonnes, while revenue rose 14.9% to RO 38.06 million. Net profit increased 41% to RO 6.70 million, compared with RO 4.75 million in the corresponding period of 2025.

The company’s alternative fuels work therefore comes at a time of stronger operating performance and continued investment planning. For tire recycling and pyrolysis markets, Oman Cement’s evaluation of tire-derived fuel and recovered carbon black shows how cement manufacturers may become important downstream users of selected end-of-life tire materials as they work to reduce emissions and fuel costs.

Article source: Oman Observer.