Czech Group Warns of SCM Shortages as Coal Phase-Out Accelerates

Why It Matters

SCM shortages threaten to raise Czech construction costs and slow critical infrastructure projects, highlighting a pressing need for policy reform and circular‑economy solutions.

Key Takeaways

• Fly ash, slag, gypsum output could drop to 8% by 2030‑31
• Closure of Pocerady plant triggers first major SCM shortage
• Stored legacy stockpiles hold tens of billions CZK (~$900M) value
• Regulatory hurdles block reuse of existing SCM stockpiles
• SCM scarcity may raise Czech construction costs and delay projects

Pulse Analysis

The Czech construction sector has long depended on supplementary cementitious materials (SCMs) sourced from coal‑fired power plants. Fly ash, slag and gypsum—by‑products of thermal generation—provide the pozzolanic properties that lower cement clinker demand and improve concrete durability. As the nation accelerates its coal phase‑out to meet EU climate targets, the output of these by‑products is projected to plunge from 7.5 million tonnes in 2025 to merely 8% of that volume by 2030‑31. This structural supply shock mirrors a broader European trend where decarbonisation policies intersect with legacy industrial supply chains.

The immediate consequence is a tightening of the raw material market for cement, concrete and plasterboard manufacturers. With SCMs becoming scarce, producers may revert to higher‑clinker mixes, driving up CO₂ emissions and material costs. ASAM estimates that existing stockpiles contain tens of billions of Czech crowns—approximately $900 million—of viable SCMs, yet ambiguous permitting rules prevent their commercial deployment. Without regulatory clarity, developers face higher construction budgets and potential delays in infrastructure projects, from highways to housing units, undermining the Czech Republic’s growth agenda.

Policymakers have a narrow window to convert this challenge into an opportunity. Streamlining the legal framework for stockpile utilization could unlock a sizable circular‑economy resource, reducing reliance on virgin clinker and supporting the EU’s Green Deal objectives. Additionally, encouraging alternative binders such as calcined clays or limestone‑supplemented cements can diversify the supply base. Investment in SCM‑recycling facilities and public‑private partnerships will be crucial to maintain competitive construction costs while advancing sustainability goals. The coming years will test whether Czech industry and government can align climate ambition with pragmatic material management.