Post on 17-Dec-2015
Current CDM experiences HeidelbergCement
Rob van der Meer
HeidelbergCement
member of WBCSD / CSI
E-540, p. 1
Current CDM experiences HeidelbergCement
1. Potentialsin cement industry
2. Indocement CDM-projectof HeidelbergCement
3. Experiences
4. Conclusions and recommendations
E-540, p. 2
E-540, p. 3
HeidelbergCement
• Turnover 6,9 Billion € (2004)• Producer of
– Cement
– Concrete
– Building materials
• Cement sales> 65 Million Tons/Year
• 42.000 People• Active in 52 Countries
– Europe
– Northern America
– Africa / Asia / Turkey
• www.heidelbergcement.de
E-540, p. 4
Potentials in cement industry
CO2 emissions at cement production
Kiln Cement
Additives: o Blast furnace slago Limestoneo Puzzolanic materials
Process CO2 ca. 2/3
Combustion CO2 ca. 1/3
Raw material(CaCO3)
Fuels
specific CO2 emissions ca. 0,8 kg CO2 / t Portlandcement
Cement mill
E-540, p. 5
Potentials in cement industry
Alternative Fuels• Rice husk • Palm oil kernels• Wood• Sewage sludge, paper sludge• Waste tyres• Waste oil, solvents• Plastics• Sorted municipal waste materials
Clinker substitution• Blast furnace slag• Limestone• Puzzolanic materials• Fly ash
Energy efficiency
E-540, p. 6
Indocement
Citeureup Factory
Total Production CapacityTotal Production Capacity
Indocement Indocement
> 15 Million Tons/Year> 15 Million Tons/Year
CITEUREUP PLANTCITEUREUP PLANT
CIREBON PLANTCIREBON PLANT
TARJUN PLANTTARJUN PLANT
E-540, p. 7
Indocement CDM projecttogether with the Prototype Carbon
Fund
Clinker substitution
• Production of cement with less CO2 emissions by using alternative materials like limestone, fly ash and puzzolanic (Trass) materials in cement.
Alternative fuels• Recovery of waste tyres, rice husk, palm oil kernels, waste
wood materials and later sorted municipal waste materials (plastics, paper, etc.) as alternatives for fossil fuels.
E-540, p. 8
Expected reduction and tradable CER
Increase the blend in cement production– Crediting period : 10 years– Clinker content reduction from 90% to about 83%
Substitute fossil fuel with alternative fuel – Crediting period : max 21, 7 years which may be renewed at
most two times– Substitute 15% fossil fuel
Contract Indocement and Prototype Carbon Fund, World bank
E-540, p. 9
Indocement CDM project - Status
PIN• The Project Idea Note (PIN) forwarded December 2002 together
with a „Letter of Acceptance“ of the Indonesian Environmental Ministry to the World Bank.
• Feasibility studies and Environmental Assessment Studies finalized at the end of 2003.
PDD• The Project Design Document (PDD) is written by Indocement and
the World Bank (PCF) together and submitted to UNFCCCC 23rd. January 2004.
Methodologies• Begin 2005 the Executive Board of the UNFCCC has approved the
first methodology for the use of alternative fuels (ACM0003, May 2005)
• The approval of the (second) methodology for the use of blended cement followed in September (ACM0005, November 2005)
E-540, p. 10
Indocement CDM project - Status
Validation and approval and registration– Validation by Norske Veritas (DOE) in November– Written approval by Designated National Authority (DNA)
by end 2005
Registration– Formal acceptance by CDM Executive Board (EB)
Monitoring– Monitoring according to monitoring plan (part of the PDD)
E-540, p. 11
Experiences
Procedures
• Indocement initiated the project end of 2002 when the Project Idea Note (PIN) was sent to Worldbank’s Prototypcarbonfund (PCF).
• In 2002 UNFCCC’s guidelines were vague.
• Indocement – being inexperienced in the field of CDM required assistance from consultants (to comply with national legislation, meeting requirements from Indonesian DNA etc). and the PCF (Development of two new Methodologies).
Resources and Costs
• Developing costs are too high and definitely a big hurdle.– financial resources (Indocement’s costs around 350.000 US$ for
consultants, validations, registrations etc.)
– HR resources (patience required)
E-540, p. 12
Conclusions and recommendations
Procedures• Lengthy and complicated procedures• Procedures only understandable for insiders.• Not stimulating for industrial projects.• UNFCCC has to strive towards faster and more
efficient procedures
Resources and Costs• At the moment, CDM is not attractive for industrial participants. • The procedures for CDM have to be simplified to make it
attractive.• More standardization and guidance is required.
E-540, p. 13
Thank you
for your attention!