EU funds Latvian low-carbon cement factory

Overview

Updated 1 hour ago

The European Commission's Innovation Fund has selected Swedish cleantech company Cemvision for a grant of up to €27.5 million to build its first commercial-scale cement plant in Ventspils, Latvia. The facility is designed to produce 500,000 tonnes of ultra-low-carbon cement per year using steel-industry slags and an electrified process that cuts CO₂ emissions by roughly 93% compared to traditional cement.

Cement production accounts for close to 8% of global CO₂ emissions, and the industry has struggled to find scalable alternatives. This grant moves Cemvision from demonstration to industrial scale — the company currently operates a demo plant with capacity of up to 4,000 tonnes per year. The grant agreement still needs to be finalized with the EU's climate agency CINEA, expected between November 2026 and March 2027.

Why it matters

If this plant works at scale, it could give the cement industry — 8% of global emissions — a commercially viable path to near-zero-carbon production.

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Key Indicators

€27.5M

EU Innovation Fund grant

Maximum grant awarded to Cemvision for its first commercial-scale plant

500,000 tonnes/year

Planned annual cement production

Ultra-low-carbon cement capacity at the Ventspils plant

93%

CO₂ emissions reduction vs. traditional cement

Reported reduction using supersulfated cement technology

3.1M tonnes

Estimated CO₂ avoided over first 10 years

Projected emissions savings from the Ventspils plant

77 of 358

Projects selected for Innovation Fund grants

77 projects across 23 countries chosen from 358 applications in this funding round

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

People Involved

Claes Kollberg

CEO of Cemvision (since October 1, 2026)

Leading the company as it moves from demonstration to commercial production

Organizations Involved

Cemvision AB

Swedish cleantech company

Developing its first commercial-scale cement plant in Ventspils, Latvia

Swedish cleantech company developing low-carbon cement using circular feedstocks including steel-industry slags.

EU Innovation Fund

European Commission funding program

Funding 77 net-zero projects with €3.4 billion in this round

One of the world's largest funding programs for demonstrating and deploying net-zero technologies, financed by revenues from the EU Emissions Trading System.

European Climate, Infrastructure and Environment Executive Agency (CINEA)

EU Executive Agency

Will negotiate and sign the grant agreement with Cemvision

The EU agency responsible for implementing the Innovation Fund and negotiating grant agreements with selected projects.

Timeline

3 events Latest: Today

October 2026
Global Construction Review reports on the grant
Today Media

Global Construction Review covers the EU Innovation Fund grant for the Ventspils low-carbon cement plant.
Today
European Commission selects Cemvision for Innovation Fund grant
Funding

Cemvision is chosen among 77 projects from 358 applications for a grant of up to €27.5 million. The plant site in Ventspils, Latvia is publicly confirmed.
2 days ago
Claes Kollberg becomes Cemvision CEO
Leadership

Co-founder takes over from Oscar Hällén to lead the company through construction of its first plant.
October 1st, 2026

Scenarios

Cemvision's Ventspils plant opens on schedule in 2028

Likely Resolves by End of 2028

Discussed by: Cemvision executives and EU Innovation Fund documents

The grant agreement is signed with CINEA between November 2026 and March 2027 as expected. Construction proceeds on schedule, and the plant reaches its 500,000-tonne annual capacity by 2028 or 2029. The facility's commercial agreements with Vattenfall and Mannok expand as production ramps up. The company's technology validation at scale would be a significant proof point for low-carbon cement across Europe.

Grant agreement is delayed or renegotiated

Possible Resolves by Q2 2027

Discussed by: EU Innovation Fund observers; CINEA negotiation process

Negotiations with CINEA take longer than expected — possibly due to budget, timeline, or emissions-reduction commitments. The grant amount is reduced or timelines are extended. Construction is delayed but not canceled. This is standard for large EU grants; the Innovation Fund's own documents note that agreements typically take 3-6 months to finalize.

Cemvision's technology fails to scale commercially

Unlikely Resolves by End of 2029

Discussed by: Industry analysts; cement sector observers

The sup ersulfated cement technology proves difficult to scale or doesn't achieve the cost or performance needed for widespread adoption. The plant opens but operates below capacity or faces technical challenges. The company or its investors reassess the commercial viability. This outcome would be a setback for the broader low-carbon cement movement, though the technology would still have been validated at a scale never before attempted.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2010s

LC3 Cement Development (2010s)

Materials scientists at École Polytechnique Fédérale de Lausanne and IIT Delhi developed LC3 (Limestone Calcined Clay Cement), an alternative cement using clays and limestone that reduces CO₂ emissions by about 40% compared to Portland cement. The technology has been piloted in multiple countries but has struggled to gain commercial traction at scale.

Then

Several pilot plants built in India, Cuba, and parts of Africa. LC3 is now recognized in some building codes and standards.

Now

LC3 demonstrated that alternative cement chemistries can work technically, but adoption remains modest due to industry conservatism and established supply chains.

Why this matters now

Shows that low-carbon cement technologies often succeed technically but face commercial barriers. Cemvision's approach — using existing industrial slags and an electrified process — aims to lower both the technical and economic hurdles.

2023-2024

EU Innovation Fund's Hydrogen Bank (2023)

The EU launched its Hydrogen Bank pilot auction, using Innovation Fund revenues to support green hydrogen production. The first auction allocated €800 million to 7 projects. The second round expanded to €1.2 billion and attracted bids from across Europe. Some projects have faced delays, but the mechanism established how ETS revenue can be channeled into industrial decarbonization.

Then

First projects began construction in 2024-2025; some have missed initial timelines due to cost inflation and permitting delays.

Now

Established the Innovation Fund as a reliable source of industrial decarbonization capital and demonstrated real demand for the program.

Why this matters now

Cemvision's grant follows the same mechanism and joins the Fund's portfolio. The Hydrogen Bank's mixed record on construction timelines suggests potential delays for capital-intensive projects like the Ventspils plant.

2010s-2020s

Steel and Cement Decarbonization Under ETS (2010s-2020s)

The EU Emissions Trading System has been the primary policy lever pushing heavy industry toward decarbonization. Rising carbon prices (from below €10/tonne in 2017 to over €80/tonne in 2023) made low-carbon alternatives increasingly attractive. Many cement and steel producers have announced pilot projects, but few have reached commercial scale.

Then

Several pilot projects launched across Europe, funded partly by the Innovation Fund.

Now

The ETS has proven it can change industrial economics, but technology readiness and capital costs remain the binding constraints.

Why this matters now

Cemvision's grant is one of the largest single investments in an alternative cement production method, and its success or failure will inform how the EU allocates future decarbonization funding.