Carbon Capture Moves to the Center of Cement’s Climate Fight

Holcim’s backing of Capsol highlights carbon capture’s growing role alongside efficiency, fuels, and policy in cement decarbonisation

2 Feb 2026

Europe’s push to cut emissions from heavy industry is sharpening its focus on cement, as producers acknowledge the limits of efficiency gains and alternative fuels. An investment by Holcim, one of the world’s largest building materials groups, in carbon capture specialist Capsol Technologies underlines the sector’s shifting approach to decarbonisation.

Financial terms of the deal have not been disclosed, but the strategic rationale is clear. As carbon prices rise and climate regulation tightens, cement producers are increasingly treating carbon capture as a core operational tool rather than a long-term option. The aim is to reduce emissions at source, rather than rely on offsets or incremental improvements.

Cement is one of the most difficult industrial products to decarbonise. The International Energy Agency and the Intergovernmental Panel on Climate Change estimate that it accounts for a sizeable share of global industrial emissions, largely because carbon dioxide is released during the chemical conversion of limestone into clinker. This process-related emissions profile means that switching to renewable electricity alone cannot deliver deep cuts.

As a result, carbon capture is gaining traction alongside energy efficiency measures, the use of alternative fuels and supportive policy frameworks. Holcim has identified capture technology as central to its ambition to offer near-zero cement, responding to rising demand for lower-carbon construction materials from governments, developers and investors.

Early adoption may also help producers manage long-term exposure to high and volatile carbon costs, particularly in Europe, where emissions trading rules continue to tighten. Embedding capture systems into existing plants could provide a degree of regulatory and cost certainty over time.

Capsol Technologies has developed a system designed to capture carbon dioxide from industrial exhaust gases while reusing waste heat from the process, limiting additional energy demand. Energy use is a critical issue in cement production, where margins are narrow and fuel costs significant. For Capsol, partnering with an established industrial group offers a route to scaling its technology under commercial operating conditions.

The deal reflects a wider trend across heavy industry, with companies favouring partnerships and targeted investments over in-house development of climate technologies. This approach allows risks and costs to be shared while accelerating deployment.

Obstacles remain. Carbon capture requires large upfront capital investment and depends on access to transport and storage infrastructure. Retrofitting existing plants can also be technically complex.

Even so, the direction of travel is increasingly clear. As policy pressure mounts and low-carbon products gain value, carbon capture is moving closer to the centre of cement strategy, alongside other decarbonisation tools shaping the sector’s future.