Cemex Secures Major Funding for Eco-Friendly Vehicle Transition

Cemex, a leading global building materials company, has made significant strides in enhancing its sustainability efforts by securing considerable funding for lower-emission vehicle replacements. This initiative marks a pivotal moment in the ongoing journey toward greener operations, as Cemex engages with various government-sponsored sustainability initiatives and programs.

On January 6, 2025, Cemex announced that it has successfully obtained approximately $13 million from the Texas Emissions Reduction Plan (TERP). This funding will facilitate the acquisition of four lower-emission locomotives and two haul trucks specifically designated for the company’s cement and aggregate operations located in New Braunfels and Katy, Texas. The TERP program aims to provide financial incentives to businesses, individual entities, and local governments to aid in the reduction of emissions caused by polluting vehicles and equipment.

The integration of three of the four new locomotives and both haul trucks is slated for the late 2023 and mid-2024 operational timelines. This transition signifies an essential step in Cemex's commitment to improving air quality and reducing the impact of its operations on the environment.

Looking forward, Cemex has plans to further enhance its fleet with additional lower-emission vehicles in 2025. The company is set to receive a $2 million grant from the U.S. Environmental Protection Agency's (EPA) Diesel Emissions Reduction Act (DERA) Program, enabling the inclusion of two more lower-emission locomotives in its operations in Jacksonville and Miami by the summer of 2025.

Jaime Muguiro, Cemex U.S. President, stated, "Through these state and federal programs, significant strides toward advancing responsible business practices are more attainable. Our new lower-emission vehicles play a key role in the development of building materials for roads, schools, hospitals, and more, while also being pivotal to our CO2 reduction roadmap."

Each deployment of these emissions-reducing vehicles is accompanied by the decommissioning of conventional vehicles, a critical requirement of the funding programs which reinforces Cemex's commitment to sustainable practices and reducing its carbon footprint.

This funding initiative aligns with Cemex's broader efforts in various geographic locations, particularly with a notable focus in Victorville, California. There, Cemex has recently added several lower-emission locomotives to its transportation fleet. In 2022, the company successfully introduced nearly 40 low-emission natural gas trucks, effectively replacing an equal number of older diesel-powered vehicles. Additionally, in 2023, another lower-emission locomotive was put into service, supported by a $2.5 million grant from the EPA's Targeted Airshed Grants (TAG) Program.

Decarbonization remains at the forefront of Cemex's operational strategy, encapsulated in its Future in Action program. This comprehensive framework is dedicated to achieving sustainable excellence through climate action, circularity, and responsible management of natural resources, all aims converging toward the primary goal of becoming a net-zero CO2 company by the year 2050.

As a leading entity in the building materials sector, Cemex’s initiatives highlight the critical role that corporations can play in addressing environmental challenges while meeting the needs of modern infrastructure. With its extensive U.S. network comprising eight cement plants, nearly 50 strategically located cement terminals, around 50 aggregate quarries, and more than 280 ready-mix concrete plants, Cemex is uniquely positioned to drive progress in both sustainability and operational efficiency. Notably, the company has received multiple accolades for its sustainability and energy management practices, including the prestigious U.S. EPA ENERGY STAR® Partner of the Year recognition, consistently awarded since 2019.

Cemex's focused approach and tangible steps towards lower-emission vehicle deployment not only contribute to a cleaner environment but also serve as a robust model for other companies striving to improve their sustainability profiles in today's industrial landscape.