DPP Low Carbon Cement

DPP Low Carbon Future by De-bottlenecking Waste Recovery in Cement Kilns

(“Low carbon cement – LCC”) – An approach towards GHG mitigation actions in the Indonesian cement sector

The challenge

The Government of Indonesia has committed to reduce the country’s greenhouse gas (GHG) emissions by 26% (with national resources) and up to 41% with international support by 2020, as benchmarked to the emission level from a business-as-usual (BAU) scenario. Sources of GHG emissions in the industry sector are companies’ energy consumption, industrial processes and industrial waste. Since the industry sector hence has a crucial role to play in reducing GHG emissions in order to achieve Indonesia’s climate change mitigation goals it has become one of the sectors in which Nationally Appropriate Mitigation Actions (NAMAs) are to be implemented.

In line with the fact that the Indonesian cement industry alone accounts for almost 1/3 of the industry sector’s overall share of the country’s emissions, the cement industry is the priority sector from which the most significant emission reductions are expected.

There are different options for mitigating GHG emission from the cement industry, i.e. through a) energy efficiency, b) alternative fuels, and c) cement additive or blending materials. Most of the cement kilns use coal for the combustion of fuel. By substituting the coal by alternative fuels, however, the cement industry can reduce up to 40% of their emissions (Indonesia Climate Change Sectoral Roadmap – ICCSR, 2010). The alternative fuels are varied, ranging from biomass or agricultural waste, municipal solid waste, to industrial waste that can belong to the categories of hazardous or non-hazardous waste. For the recovery of valuable resources from waste through the cement kiln, co-processing is seen as a very promising means to reduce CO2 and other GHG emissions by full or partial carbon neutral substitution of fossil fuels.

To support the implementation of the National Climate Change Mitigation Action Plan (“RAN-GRK”), it is important that the cement industries are enabled to apply the available options to mitigate GHG emissions. In 2008, through a successful PPP program between GIZ, Holcim and Indocement, the National Guideline for Co-processing Waste in the Cement Kilns was established. This project was followed by several seminars and workshops involving industry, government agencies and various other organizations. The guideline enabled the relevant policy makers to have a good reference point for releasing permits to cement companies willing to take up the challenge to head towards a lower carbon foot print.

By having the guideline for co-processing waste in the cement kilns, one step to enable the cement industries in using alternative fuels and to ensure the respective framework condition has been done. However, further steps to truly achieve this condition are still necessary. At the moment, cement players are permitted to co-process waste. However, in order to develop and build the capacity to manage a significant volume of waste, to prevent pollution from waste mismanagement, and to close the gap between waste generated and waste managed, the existing non-technical and technical conditions and barriers need to be overcome. The success in removing these bottlenecks will enable the cement industries to tap the full potential to reduce GHG emissions and reach a low-carbon future.

Our Goal

The objective of the development partnership is to improve the technical capacities and readiness of the cement industry for using waste as alternative fuel, and to give input to the improvement of the associated regulatory framework conditions. Inputs and linkages to the establishment of voluntary partnership agreements (VPA) between the respective industry actors and the Indonesian Ministry of Industry (MoI) are explicitly sought. With this, the DPP contributes to the implementation of NAMAs for the industry sector.

Our Approach

The development partnership addresses the technical and regulatory issues related to waste as alternative fuel (waste co-processing) in the cement industry. The project covers the analysis of the current conditions, starting from the cement companies themselves and then tackling the related permit conditions. The analysis is to show the readiness of the cement industries regarding waste recovery as alternative fuels as well as the barriers and challenges the companies currently face in this regard. The results of these analyses are to serve as input for the development of regulations and permits that are up-to-date and in line with international standards, especially concerning emission limits.

Additionally, capacity building on proper management of industrial waste will be conducted, i.e.: Trainings on technical aspects related to the management of industrial waste generally, and waste recovery in the cement industries in particular, are given to the cement companies, waste producers, and policy makers. The results of the initial analyses regarding the technical conditions of the cement industries will provide the basis for this training. The training is expected to be one part of the solution to overcome the industries’ current barriers.

Finally, the results and documented experiences of the project will be disseminated among relevant public and private stakeholders through publications, network meetings and stakeholder dialogues.

The Impact

At the pilot level the improved technical and regulatory conditions lead to an increase in waste recovery (co-processing) activities in the cement industry, which leads to a significant decrease in the compaines’ fossil fuel consumption and a reduction in their carbon footprint. This contributes to the implementation of NAMAs (Nationally Appropriate Mitigation Actions) for the Indonesian industry sector.

The overall process of the project also contributes to the preparation of voluntary partnership agreements (VPA) between industrial actors and the Ministry of Industry (MoI) through the provision of relevant data (baseline) and fostering interactions between the different stakeholders.

Apart from mitigation of GHG emissions, these achievements will also indirectly increase the capacity to properly manage waste and prevent pollution from mismanaged waste in Indonesia.