National Cement announced the execution of a cooperative agreement with the U.S. Department of Energy (DOE), Office of Clean Energy Demonstrations, for the Lebec Net-Zero Project. The agreement secures funding for the previously announced award from DOE in March 2024.

Once completed, the Lebec Net-Zero Project, led by the National Cement Company of California, will produce carbon-neutral cement at National’s cement plant in Lebec, California. DOE is committing up to $500 million in matching funds for National Cement to develop the project. The project is one of 33 from across 20 states selected for award via DOE’s Industrial Demonstrations Program.

"This is an exciting, first-of-a-kind project in the cement industry. We are making a large investment because we believe in creating a cleaner future. We are thankful for the Department of Energy’s partnership to help accelerate our path to zero carbon,” said Steve Wise, President of National Cement Company of California.

The project has three components:

• Producing blended cement, which substitutes clinker with a less carbon-intensive alternative (calcined clay) to produce limestone calcined clay cement (LC3).
• Increasing consumption of alternatives to fossil fuels, via locally sourced biomass from agricultural byproducts, such as pistachio shells.
• Capturing and sequestering the plant’s remaining approximately 950,000 metric tons of carbon dioxide each year.

The project will bring significant economic development benefits. It is anticipated to bring hundreds of construction jobs, and at least 20 new jobs dedicated to plant operations. Further, the project aligns with Kern County’s Carbon Management vision for attracting new investment and diversifying the local economy.

The project has received strong support from environmental organizations, who recognize that the cement industry requires multiple levers, including carbon capture, to reach carbon neutrality.

National Cement is partnering with the Kern Community College District and other local organizations to establish a robust community engagement process and develop a community benefits plan, beginning in Phase 1.

Initial activity in Phase I will last through Q1 2026 and include a technology study, a Pre Front End Engineering and Design (Pre-FEED) study, and establishing a Community Advisory Body.