*Arvind Pathak, CEO of Dangote Cement Plc, discloses the company is transitioning from diesel to Compressed Natural Gas (CNG) powered trucks, towards reducing haulage costs and creating more value for shareholders

Isola Moses | 绿帽献妻

Dangote Cement Plc (DCP) says the company has adopted measures aimed at driving energy efficiency across its locations, thereby reducing operational costs and emissions while creating more value for stakeholders.

Mr. Arvind Pathak, Chief Executive Officer (CEO) of Dangote Cement Plc, who disclosed this, said the company is transitioning from diesel to Compressed Natural Gas (CNG) powered trucks, to reduce haulage costs.

Pathak, in his comments on the company鈥檚 half year unaudited results for the period ended June 30 2025, stated: 鈥淥ur strategic priorities remain focused on long-term value creation.

“We have made significant progress in further strengthening our cost architecture.鈥�

With haulage being one of the biggest drivers of operational costs, DCP commissioned 1,500 CNG trucks in 2024, with phased delivery of an additional 1,600 trucks to support cost reduction initiatives.

The conglomerate said the development had helped to mitigate the impact that the volatility in the prices of traditional energy sources like diesel and coal have on operating costs.

The replacement of conventional fossil fuel with CNG will also enhance the company鈥檚 environmental efficiency, Dangote Cement Plc noted in a statement.

DCP, the company noted, is also ramping up the utilisation of alternative fuels (AF).

Typical AF materials for cement production include waste oil, refuse derived fuel, used tyres, plastics and biomass, such as palm kernel shells, rice husks, mango seeds, coffee husks, cotton lint, coconut husks among others.

According to Dr. Igazeuma Okoroba, Head of Sustainability, 鈥渦tilising these materials provide a waste management alternative to landfill as well as proffering a more sustainable energy mix for power and heat generation.

Okoroba stated: “This action will mitigate the adverse effects of these materials on the environment.

“Alternative fuels also reduce dependence on fossil fuel imports thereby improving energy security, lowering energy costs and creating economic opportunities through the provision of green jobs to our local communities.鈥�

Dr. Okoroba stated that, since 2019, DCP has diverted over 1.5 million tonnes of waste from the landfill which would otherwise have contaminated land and water sources.

She said: 鈥淲e have also provided leadership in the use of AF as smaller industries now see the benefit of utilising AF as biofuels for the generation of electricity.”

It is recalled that Mr. Emmauel Ikazoboh, a Director on the Board, in his acceptance speech, had equally identified cost reduction as one of his strategies.

Ikazoboh said: 鈥淲e will implement robust cost-reduction strategies to navigate inflationary pressures and enhance our competitiveness.

“We will accelerate our efforts to adopt alternative fuels and technologies, reducing our reliance on fossil fuels and contributing to a more sustainable future.鈥�

Dangote Cement Plc has about 52.0Mta capacity across the African continent with Nigeria accounting for 35.25Mta. Currently, additional greenfield plants are set for commissioning in Cote d鈥橧voire (3.0Mta) and under construction in Itori, Nigeria (6.0 Mta) pushing total capacity to about 61.0Mta.

Mr. Pathak said that 鈥渢his expansion in capacity will not only strengthen our position in Africa but also contribute meaningfully to our export strategy and revenue diversification.

“As we move into the second half of the year, we remain focused on driving innovation, strengthening our pan-African operations, and delivering sustainable returns to our investors.鈥�

Through investments geared towards expansion, Dangote Cement has succeeded in eliminating Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement and clinker, serving neighbouring countries.