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Strength. Performance. Passion.
© 2013 Holcim
Creating a Lean Energy Culture with Sustainability
Aidan Lynam
Strength. Performance. Passion.
National Energy Efficiency Conference, Area PH © 2013 Holcim
© 2013 Holcim
Agenda
Overview on the Holcim Group
Energy Activation
Waste Co-processing
National Energy Efficiency Conference, Area PH, OAP 1
© 2013 Holcim
Overview on the Holcim Group
National Energy Efficiency Conference, Area PH, OAP 2 © 2013 Holcim
© 2013 Holcim
Holcim produces cement, aggregates and concrete globally
Cement
Aggregates
Net sales CHF 24.5 billion Cement
Product segments 2012 Net sales per segment 2012
217.5 million tons
production capacity
147 cement and grinding
plants
Sales: 148 million
tons 10.4%
58.0%
31.6%
Op. EBITDA per segment 2012
Op. EBITDA CHF 4.0 billion
3.4%
86.5%
10.1%
Other Construction
Materials and Services
470 aggregates
plants
Sales: 160 million tons
1,286 RMX plants
99 asphalt plants
Sales of ready-mix
concrete: 46.9 million m3
Sales of asphalt: 9.1
million tons
Other construction
materials & services
Aggregates
National Energy Efficiency Conference, Area PH, OAP 3
© 2013 Holcim
We have 100 years of product and service excellence
Our first cement plant in Holderbank, Switzerland in 1912
National Energy Efficiency Conference, Area PH, OAP 4
© 2013 Holcim
Today, Holcim has a wide footprint in South Asia / ASEAN1
Source: Corporate Controlling
Note: draft figures, for internal circulation only
Integrated Plant
Grinding Station
Under construction
Terminal
• Cement sales 74.6 mt
• Aggregates sales 3.9 mt
• RMX sold 7.5 mm3
• FTEs total 33’070
M&S 3’000
Logistics 1’500
• Net Sales CHF 6.1 bn
• EBITDA CHF 1.5 bn
• Cash Flow CHF 1.1 bn
Key Figures FY 2012
National Energy Efficiency Conference, Area PH, OAP 5
© 2013 Holcim
Our region consumes colossal amounts of energy – and this
will only increase going forward
Annual regional energy consumed : 19 times the yearly power production
of a mid sized nuclear power plant …
19x
yearly production of nuclear power plant Mühleberg (Switzerland) equals approx. 2.6TWh
National Energy Efficiency Conference, Area PH, OAP 6
© 2013 Holcim
SOURCE: Global Insights; Mining Association of Canada; AME; EPA McKinsey analysis; Need.org; EIA glass report; CIPEC;CPBIS; UNIDO 2011, UN
26
5
7
10
12
15
15
24
30
30
32
Food and beverage
Oil refining
Glass
Paper & Pulp
Chemicals1
Metal ores mining
Coal mining
Cement
Steel
Aluminium
1 Based on US basic chemicals plants. Costs may vary by region and nature of chemical
However, high energy costs presents a challenge as well as
opportunity
Energy costs
Percent of total costs, % Industry
National Energy Efficiency Conference, Area PH, OAP 7
© 2013 Holcim
Cement Manufacturing process from quarry to lorry:
Main steps along the process
1
2
3
4
Quarry 5
6
7
8
Raw mill 9
10
11
12
Cooler
Crusher Filter bag Clinker silo
Conveyor Preheater Cement mill
Mixing bed Kiln Logistics
National Energy Efficiency Conference, Area PH, OAP 8
© 2013 Holcim
Cement Manufacturing process from quarry to lorry:
Consumption of thermal energy at the kiln
Burning zone Horizontal kiln
National Energy Efficiency Conference, Area PH, OAP 9
© 2013 Holcim
Cement Manufacturing process from quarry to lorry:
Consumption of electrical energy for clinker grinding
Cement mill Vertical roller mill
National Energy Efficiency Conference, Area PH, OAP 10
© 2013 Holcim 11
Holcim executed energy efficiency initiatives as part of its
strategy to drive profit growth through cost leadership
Value expansion
Additional operating profit (CHF m)
2014 2013 2012
Cost management
Energy and AFR
Logistics
Procurement
Fixed cost
Value
Proposition:
“Cost
Leadership”
- Optimization
of cost base
National Energy Efficiency Conference, Area PH, OAP 11
© 2013 Holcim
Energy Activation
National Energy Efficiency Conference, Area PH, OAP 12 © 2013 Holcim
© 2013 Holcim
We developed EARN which focuses on 5 main pillar streams
to generate competitive advantage and sustainable savings
Capabilities (People) and Capacities (Supply Chain-
Infrastructures) Development
Lean Energy Culture
EARN
Objectives
EARN
Set-up
Thermal
Energy
Process
▪ Introduces a new standard for Energy Management Excellence building on
elements covering operations as well as sourcing
Electrical
Energy
Process
Admixtures
and Clinker
Factor
Reduction
Alternative
and
Renewable
Energy plus
CO2
Reduction
Coal
Sourcing
and Pooling
Energy
Management Excellence
National Energy Efficiency Conference, Area PH, OAP 13
© 2013 Holcim
EARN is a journey to energy excellence and aims to build
foundations by developing capabilities and capacities
Measure for
transparency
Best practice
sharing through
regional com-
munities of
excellence
Develop
Capabilities
(People) and
Capacities
(Infrastructure) Create
academy and
equip them to
drive energy
projects
Drive on-ground
cultural change
Create
competitive
advantage EARN
(Energy
Activation across
our Regional
Network)
How will we get there? Where do we want to be?
“New energy culture to
improve efficiency of
production, products and
consumption to reduce
or limit energy usage”
“EARN is NOT a
technical project alone, it
is a transformation
initiative, to build a lean
energy culture with
raised competency
levels to achieve energy
management
excellence”
National Energy Efficiency Conference, Area PH, OAP 14
© 2013 Holcim
EARN needed to be transformational in nature to
accomplish this aspiration. . .
Transformational
change
Fundamental
Irreversible
Significant
Build institutional capabilities
Common approach to continuous improvement
Sharing of regional expertise and collaboration
Changes in mindset and culture
Rigor of monitoring
National Energy Efficiency Conference, Area PH, OAP 15
© 2013 Holcim
. . .and go through a step by step journey. . .
Phase 2 – Academy &
Road Map
Architect: Set-up
infrastructure to drive
projects
Phase 4 – Dream run,
communication, PEER
Institutionalisation:
Institutionalizing through
increase momentum
Phase 1 – Heat Map
Assess and develop
tools for transparent
process
Phase 3 – Wave &
foundational elements
Action: Implementing and
execute initiatives
0
Individuals involved as academy coaches should be high calibre
people from different levels of organization
▪ Academy coaches lead
individual modules
▪ Academy coaches are selected
by merits and ability from all
levels of the organization.
▪ Academy coaches develop into
future business leaders through
– Building strong networks of
relationships
– Involvement in a wide range
of cross-functional issues
– Extensive exposure to senior
management
Academy coaches are high
calibre people who evolve into
future business leaders
Each OpCo is progressing on implementing the complete
“EARN house” of foundational elements
PMO setup
▪ PMO architecture
▪ War rooms
▪ Performance dialogues
▪ Savings tracking
▪ KPI delivery process
▪ Rewards and recognition
EARN Foundation
▪ Academy ▪ Module creation &
dissemination
▪ Model plant
▪ Coach certification/
accreditation
▪ Pillar communities
▪ Communication
▪ Experts
▪ Peer visits
▪ Heat maps
Organization Capability buildingRegional
collaboration
1 2 3
4
2.1
2.2
3.1
3.2
3.3
3.4
3.5
4.1
4.2
4.3
4.4
4.5
1.1
4.6
1
2.3
EARN Phase IV – HVL (1/2)
1
Jun Jul Aug Sep Oct Nov Dec Jan
Idea generation; evaluation; and implementation with
performance dialogue and war rooms
Institutionalize EEI foundational elements and communication; rewards; PEER and SWAT visits; PMO
Certify and
accreditDevelop coaches
Assess
coaches
Launch Wave 2
Training and development of coachesAssess
coaches
Plan for the next set of
waves
Finish dream
run
Foundational
elements
Coach
development
Wave
process
• Plant Visit to
HN for
preparation of
dream run on
Coal
Status check
on 10 point
Dream Run
readiness
Bringing best
practices
from other opco &
launching
facilitation
• Coach
assessment &
base lining
along with
external expert
• Attend HVL
steerco &
provide
feedback
• 3 day boot
camp at HN on
Wave
technology
for
improvement
Idea
generation
session
Analyze,
prioritization
& problem
solving
• Coach training
session 1 -
Management of
wave process &
collaboration
• Work shop -
EARN
communication
design & roll off
• EARN regional
steer co
facilitation
• SWAT visit to
HN for CF
Expert
validation of
CF road map
Learning of
new ideas from
other opcos
• HVL coach
accreditation
process design
• HVL Coach
training session
2- on
Communication
• PEER visit to
HN
External view
on EEI
elements
implementati
on stage
Getting best
practices of
other opcos
• HVL Coach
training
session 3 on –
Achievement
mind set,
leadership &
passion for
excellence
• EARN regional
steer co
facilitation
• On ground
plant visit &
check health of
performance
dialogue &
feedback on
the same
• Session 4 to
roll out coach
accreditation
process in HVL
• Start
accreditation of
first set of
coaches
• Completion of
coach
accreditation
Process
completion
Sustainability
architecture
• Facilitating
HVL
preparation for
EARN regional
steer co
• Process sustainability & hand
over RPMO support
National Energy Efficiency Conference, Area PH, OAP 16
© 2013 Holcim
…building on various foundational elements
PMO setup
▪ PMO architecture
▪ War rooms
▪ Performance dialogues
▪ Savings tracking
▪ KPI delivery process
▪ Rewards and recognition
EARN Foundation
▪ Academy ▪ Module creation &
dissemination
▪ Model plant
▪ Coach certification/
accreditation
▪ Pillar communities
▪ Communication
▪ Experts
▪ Peer visits
▪ Heat maps
Organization Capability building Regional
collaboration
1 2 3
4
2.1
2.2
3.1
3.2
3.3
3.4
3.5
4.1
4.2
4.3
4.4
4.5
1.1
4.6
2.3
National Energy Efficiency Conference, Area PH, OAP 17
© 2013 Holcim
One of these elements is about setting up model plants
Sustainable experiential
learning through model
factory
▪ Experiential energy
efficiency learning in a
real-life plant environment
▪ End-to-end production
with different learning
stations across process
chain
▪ Step-by-step coaching
and immediate application
of improvement measures
National Energy Efficiency Conference, Area PH, OAP 18
© 2013 Holcim
As a result pocket of excellence created touching core
foundational elements
EARN leaders activated
in boot camps
Dream runs planned in
May-Jun 2013 Improvement waves and
dream runs planned in
Jul-Dec 2013
Model plants planned
across Asia, covering
all pillars
Cross-cutting levers of
opportunity across all
pillars with technical
modules for each
Ideas generated in
Phase 3
Peer visits plant
in 2013 Plants
Coaches driving
improvement through
plant academies
National Energy Efficiency Conference, Area PH, OAP 19
© 2013 Holcim
Now it is time to intensify momentum & institutionalise the
foundational elements
1 2 3 4 5
3-5 years
Time Launch:
Initiation:
Setup:
Rollout & Sustainability:
Consolidation:
Prepare the change
Start the process
Build and bring energy into the system
Execute and hold the momentum
Get into an “Auto-pilot” status
EARN: We are
here now
National Energy Efficiency Conference, Area PH, OAP 20
© 2013 Holcim
EARN is a step change in our approach to achieve our
ambitions in a sustainable and competitive way
National Energy Efficiency Conference, Area PH, OAP 21
© 2013 Holcim
Waste Co-processing
National Energy Efficiency Conference, Area PH, OAP 22 © 2013 Holcim
© 2013 Holcim
Geo means “earth” in Greek, while Cycle calls to mind the cycle of life.
“Geocycle” refers to our ability to convert waste into a safe, useable
resource
Geocycle is waste management brand of Holcim, one of the
world’s leading supplier of construction materials
National Energy Efficiency Conference, Area PH, OAP 23
© 2013 Holcim 24 National Energy Efficiency Conference, Area PH, OAP
© 2013 Holcim
Waste is an important societal issue in Asia
The issue is significant and is growing
Geocycle Asia Network offers a viable solution
Waste can be a resource
Waste as an energy source is underutilized
Potential to replace virgin raw material
Significant potential for CO2 reduction
Co–processing is ecologically and economically beneficial
Ecological benefits
Economic benefits
Committed to stakeholder dialogue
Stakeholder concerns
Regulatory frameworks
Alliances
Strict guidelines in place
Policies + ACert
Safety guidelines
Environmental guidelines
Holcim is committed to ongoing stakeholder dialogue and to support the development of adequate legal frameworks to ensure the responsible use of waste materials.
Society needs environmentally sound waste management practices to address the issue of waste produced by households and industries.
Waste has the potential to replace a substantial part of the energy and material needs of resource intensive industries (RII) such as the cement industry.
Resource intensive industries (RII) use or co-process waste derived fuels and raw materials to conserve scarce natural resources for both ecological and economic reasons.
Holcim sets strict guidelines for the safe use of waste derived resources in its processes and products.
Waste to Alternative Resources for Holcim in South and
Southeast Asia
National Energy Efficiency Conference, Area PH, OAP 25
© 2013 Holcim
Main drive: LCA
* GIZ Guidelines on Co-processing of waste materials in Cement Production
Recovery
Disposal
Waste Management Hierarchy
National Energy Efficiency Conference, Area PH, OAP 26
© 2013 Holcim
What is Co-processing?
National Energy Efficiency Conference, Area PH, OAP 27
Co-Processing is…
…the disposal of waste materials in RII’s (Resources Intensives Industrial processes)
such as cement, lime, steel, glasses, power generation etc.
..instead of fossil fuels & natural resources*b
* GIZ Guidelines on Co-processing of waste materials in
Cement Production
© 2013 Holcim 28 National Energy Efficiency Conference, Area PH, OAP
© 2013 Holcim 29 National Energy Efficiency Conference, Area PH, OAP
© 2013 Holcim
Reduction of GHGs
National Energy Efficiency Conference, Area PH, OAP 30
Co-processing and
Incineration Reduction in GHG Emissions
Co-processing and
Landfill Prevention of Methane*
Emissions
* Methane has 21 times more global
warming potential than CO2
Co-processing is THE alternative to save our environment and improve
industry ecological footprint
© 2013 Holcim
Examples: Geocycle Waste Destruction Projects
• BRR Aceh (expired Medicine of Tsunami)
• Oil Sludge from PERTAMINA Balikpapan (Div IV)
National Energy Efficiency Conference, Area PH, OAP 31
© 2013 Holcim
Pirate Goods from Government Agencies e.g. DIP, DSI,
Customs Dept. etc.
National Energy Efficiency Conference, Area PH, OAP 32
© 2013 Holcim
Security Destruction - Off-Specs Products
National Energy Efficiency Conference, Area PH, OAP 33
© 2013 Holcim
Chemical Waste & Waste Water
National Energy Efficiency Conference, Area PH, OAP 34
© 2013 Holcim
Used PPE, Contaminated Packaging, Laboratory Waste,
Mixed waste
National Energy Efficiency Conference, Area PH, OAP 35
© 2013 Holcim 36
36 National Energy Efficiency Conference, Area PH, OAP
Ozone Depleting Substances
Rubber Products
© 2013 Holcim
Geocycle Waste Destruction Projects
Consumer Products (Candy–Milk–Household-Toys)
National Energy Efficiency Conference, Area PH, OAP 37
Candy Milk
Household
Shoe Polish
Branded toys Branded garment
© 2013 Holcim 38
38 National Energy Efficiency Conference, Area PH, OAP
Bio Mass
Sorted Municipal Waste
© 2013 Holcim
What can Geocycle Offer to Our Customers?
“Peace of Mind”
National Energy Efficiency Conference, Area PH, OAP 39
• We are able to offer a safe, secure and
environmentally sound way of solving your waste
concerns, particularly sensitive waste.
• The assurance of working with a global company
with expertise and experience in co-processing of
waste in over 38 countries
• We have a strict code of conduct which is
monitored on a corporate level.
• We have capacity to take large volumes of waste
materials.
• Working with an ISO 9001 and ISO 14001 certified
company