Hallett Group aims to innovate and decarbonise Australia’s cement and concrete industry, supported by a Green Loan from Commonwealth Bank.

Hallett is the largest supplier of building and construction materials in South Australia and its $51 million Green Loan will advance its Green Cement Transformation Project (GCTP) – an initiative to repurpose industrial waste by-products by manufacturing them into green cement.

Split across the regional city of Port Augusta, along with new infrastructure in the Port of Adelaide, Hallett’s GCTP will manufacture supplementary cementitious materials (SCMs) – or products that can replace cement. The goal is to replace more than 50 per cent of traditional, emissions-intensive clinker-based cement used in concrete and mining applications, and to develop a secure supply of SCMs to support decarbonising Australia’s cement industry to help realise the nation’s decarbonisation plans.

Cement is the world’s second-most consumed material after water and one of the largest single sources of carbon dioxide emissions, with the industry being responsible for almost 8 per cent of the world’s carbon emissions footprint.1

CBA Executive General Manager Major Client Group Chris Williams said Hallett is investing in strategically important infrastructure that will play a key role in reducing Australia’s emissions while building the future economy.

“Hallett is bringing innovation to the construction materials industry to simultaneously create jobs and reduce the nation’s greenhouse gas emissions in a heavy-emitting industry – that’s the kind of win-win we need to get Australia to net zero by 2050,” said Mr Williams.

“Hallett’s Green Loan recognises the important environmental and circular economy attributes of its Green Cement Transformation Project. Cement is ubiquitous in modern construction, but you also need concrete foundations for building wind farms or mining critical minerals to deliver the inputs needed for the future economy. Getting cement’s emissions profile down helps everyone advance to that future, decarbonised economy.

“CBA is proud to support Hallett in making this important project a reality. Our structured and sustainable finance capabilities allowed us to tailor a bespoke solution that meets Hallett’s objectives, while appropriately managing the risks associated with a project of this nature.”

Adelaide Hallett cement dome Adelaide Hallett cement dome

Downloadable photos

Hallett Group Chief Executive Officer Kane Salisbury said: “Achieving Green Loan certification for our project finance through CBA has been an important milestone on our journey to build the most innovative and sustainable cementitious material offering in Australia and possibly the world. 

“We see a real opportunity to create a sovereign and circular domestic supply chain for low-carbon cementitious materials that are used in the manufacture of concrete which continues to be the critical building material for society as we know it. 

“The world cannot decarbonise without cement and concrete. Every wind farm, solar farm, battery and hydro plant is built on foundations made of concrete. That’s a real win for our industry and for the people of South Australia.

“Hallett’s generational investment in the GCTP project is creating global interest in what can be achieved by pioneering new solutions to benefit by-product waste streams that have previously been regarded as too difficult to bring to market. 

CBA Relationship Executive Shaun Bradford; Hallett Group Site Manager for Port Adelaide, Peter Heading; CBA Managing Director, Commercial Banking South Australia, Kylie Allen; Hallett Group Chief Executive Officer, Kane Salisbury CBA Relationship Executive Shaun Bradford; Hallett Group Site Manager for Port Adelaide, Peter Heading; CBA Managing Director, Commercial Banking South Australia, Kylie Allen; Hallett Group Chief Executive Officer, Kane Salisbury

“We are incredibly proud that our project is being looked at as a template that can be replicated around the world to enable a substantial carbon reduction impact well beyond our region.”

CBA’s Structured Asset Finance and Sustainable Finance teams played a leading role in supporting Hallett by tailoring a $100 million debt finance package, including the $51 million Green Loan tranche, with the remainder of the project to be funded by Hallett with the crucial support of a $20 million Modern Manufacturing Grant from the Commonwealth Government.

Hallett’s Green Loan is aligned with the Asia-Pacific Loan Market Association (APLMA)’s Green Loan Principles, under APLMA’s criteria covering the environment and circular economy. The net proceeds from the Green Loan will be used to finance the GCTP.

CBA acted as sole Green Loan coordinator and financier. Second Party Opinion – an independent opinion on the transaction’s alignment to APLMA principles – was provided by DNV.

Banner image: CBA Relationship Executive, Shaun Bradford; Hallett Group Chief Executive, Officer Kane Salisbury; CBA Managing Director, Commercial Banking South Australia, Kylie Allen; Hallett Group Site Manager for Port Adelaide, Peter Heading

1 https://www.chathamhouse.org/2018/06/making-concrete-change-innovation-low-carbon-cement-and-concrete

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