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

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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)

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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)

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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!