26 November 2015, Aloft Kuala Lumpur Sentral Hotel

Focus Group Discussion: Cement Sector

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NAMA FORMULATION IN THE CEMENT AND

IRON & STEEL SECTORS

Discussion Outline 2

Recap - Stakeholder Discussion on 22 September 2015

Municipal Solid Waste as Alternative Fuel Substitution in Cement Sector

NAMA Proposal Preparation

Recap – Discussion from Stakeholder Workshop - 22 September’15

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Cement Sector

Discussion Outcome (Cement Sector)

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Fuel Substitution

Technology Option

Potential use of MSW derived fuel in Cement kiln

Challenges/ Barriers

> Issue on supply

> Investment cost

> Lack of experience

Possible Intervention/ Action

Propose NAMA project to assist in engagement of waste sector, research and feasibility assessment

Waste Management

Technology Option

Use of blast furnace slag for concrete construction

Challenges/ Barriers

Education/knowledge

Possible Intervention/ Action

Support needed to ensure wider acceptance of concrete usage

Proposal for Carbon Reduction Through Fossil

Fuel Substitution Using Municipal Solid Waste Derived Fuel 5

Municipal Waste – Source of

Greenhouse Gases & Pollution 6

Key Project Concept 7

Methane avoidance from dumpsites by converting

municipal solid waste (MSW) to alternative fuel for

replacing coal in cement kilns

Reduce waste to landfills/dumpsites which leads to less

environmental problems

Cement kilns can reduce reliance on coal and reduce

carbon footprint (potentially also cost savings!)

Multiple GHG Benefits 8

Main Processes 9

MSW • High moisture mixed waste

Bio-drying & Sizing

• Reduce moisture using natural heat

• Increase calorific value for burning

• Shredding and sorting

Inject into Cement

kiln

• Replace fossil fuel e.g. coal

• High kiln temperature > 1400 deg C destroys waste effectively

• Chlorine bypass (if needed)

Proven Technologies Available 10

© CONVAERO Malaysia Sdn. Bhd.

Membrane

Cover

O2- Sensor

Cover-

sealingHeat

OdourMoisture

CO2

Temperature profile-

probe

Weather

Germs

Bacteria

air air

Bio-Dry™: Cross- Section of Waste or Biomass Heap with Bio-Dry™ Membrane

Example of Biodry – Convaero Systems

Example of Biodry – Gore Cover 11

Chamber bio-drying principles

• EcoDeco • Entsorga

Example of Similar Projects 13

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Example of Similar Projects

Huaxin

Cement,

Holcim

China

Example of Similar Projects 15

Cjele Slovenia (26,000 TPA)

Alternative Fuel for Cement 16

Source: Adapted from Press Release NEDO, 17 March 2014

Solid Recovered

Fuel (SRF) from

MSW

Example of Similar Cases (1) 17

Example of Similar Cases (2):

Carbon Reduction Potential 18

1200 metric tons/d MSW capacity

Potential Pilot Projects

Lafarge Holcim (Langkawi, Kedah)

N.S. Cement (Perlis)

YTL Cement ?

Case of Langkawi 20

In line with Kedah Green Agenda (Oct 15)

Low Carbon Langkawi Initiatives (KETTHA)

Proximity of incinerator/landfill to cement kiln

(approx. 8 km)

Approximately 100 mt/d of MSW

Case of N.S.Cement (Perlis Plant) 21

Expressed interest in previous stakeholder

discussion

Plans to explore use of MSW as alternative

fuel

Approximately 130 mt/day transferred to

Padang Terap (Kedah)

Discussions 22

Questions and Answers

Opinion / Existing and Future Plans on MSW

as Alternative Fuels by Cement Sector in

Attendance

Lafarge Holcim

NS Cement (CIMA)

YTL Cement

NAMA Proposal Preparation 23

Types of NAMA

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Unilateral Domestically funded and unilaterally implemented

Supported

Financial, technological and/or capacity building support from developed

countries

Credited Generating revenues from

carbon offsets relative to the amount of emissions reduced

Credited NAMAs have not been formally agreed or accepted during negotiations and

considerable disagreements remain. However, especially private sector entities consider

crediting and carbon markets essential for attracting private finance for NAMAs.

3 Classifications of NAMA

Strategy

• Long-term comprehensive plan of measures and actions designed to achieve a common goal

• Examples: Long-term transformative plan to switch to RE

Policy

• Government-led programme or measure that has been or is intended to be embodied in legislation

• Examples: Feed-in-tariff & emissions trading scheme

Project

• Localized activity that has a defined timeline and scope

• Examples: Building of a concentrated solar power plant

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Stages of NAMA

Stages

Templates

Remarks:

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Source: http://www.nama-database.org/index.php/NAMA_development_process (accessed on 11 July 2014)

Details of the Development Stage

• NAMA has a

prior NAMA

proposal

presented to

the UNFCCC

• Some support

secured to

undertake

implementation

activities

specified in this

proposal

Implementation

Stage

• Cost estimates

• Specification of support needs

• Estimates for GHG mitigation

• Timeframe for implementation specified

• Clear proponent

• Specification of types of activities

Proposal / Planning Stage

• Described as a NAMA and/or intention to seek

financing, capacity building or technology

transfer support under UNFCCC agreements

• Specific mitigation objective given

• Published or traceable sources

• Country specified

• Sector(s) specified

• Government-backing

Concept Stage 27

What is needed for a good NAMA?

Need to be embedded in existing policies and are based on sound analysis

Have secured a certain level of political ownership through a process of stakeholder engagement

Ambitious and fit in a comprehensive, long-term national or sectoral strategy or vision and target multiple mitigation and development benefits

Have a pragmatic but robust system for measurement, reporting and verification (MRV)

Clearly identified financing needs

Maximise the mobilisation of private finance with limited public finance means

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Source: Status Report on Nationally Appropriate Mitigation Actions (NAMAs) June 2014, Mid-year

update 2014, ECOFYS

Issues for Discussions

Structural issues (arrangement, agreement) to be

discussed among stakeholders (government,

cement player)

Municipal waste current management (quantity,

composition, current payment etc.)

Key stakeholders involved

Potential barriers/challenges

Issues for Discussions

Technical issues involved in the proposed ideas to

be further elaborated:

- Assessment of waste amount and composition

(fuel quantity and quality)

- Feasibility of biodrying and pre-treatment

- Modifications required at cement kiln (feeding

systems, burner etc.)

- Concerns on smell and nuisance

- Financial implications and feasibility

- Etc.

Propose Cooperation Structure 31

Government Agency

KeTTHA

DOE

JPSPN

MP Langkawi

MP Kangar

Cement Industry

Lafarge Holcim Malaysia Bhd

Negeri Sembilan Cement Industries Sdn Bhd

YTL Cement Berhad

Industry Association

The Cement & Concrete Association of Malaysia

Note:

KeTTHA : Ministry of Energy, Green Technology and Water

DOE : Department of Environment

JPSPN : National Solid Waste Management Department

MP Langkawi: Majlis Perbandaran Langkawi Bandaraya Pelancongan

MP Kangar : Majlis Perbandaran Kangar

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Potential Financing Activities

Technical Cooperation

Baseline study

R&D (fuel quality, modification at cement etc.)

Review of bio-drying technologies and local adaptation

Feasibility Study

Facilitation

Technical facilitation

Structural agreement

Pilot Project Testing and Implementation

Small scale testing

Develop MRV (Measurement, Reporting and Verification) system

Thank You!

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