International Experience on Increasing Use of Alternative Fuels and Raw Materials (AFR) in the Cement Industry, and Recommendations for China

Transcription

1 International Experience on Increasing Use of Alternative Fuels and Raw Materials (AFR) in the Cement Industry, and Recommendations for China Coal Consumption Cap and Energy Transition International Workshop November 17-18, Beijing, China

2 Outline Introduction to the Institute for Industrial Productivity (IIP) Cement, Energy, Emissions, and Waste in China and the World Alternative Fuel and Raw Materials (AFR) o Benefits o Challenges o Global Status o Best Practices Recommendations for China

3 About the Institute for Industrial Productivity (IIP) The Institute for Industrial Productivity provides industry and governments with the best energy efficiency practices to reduce energy costs and prepare for a low carbon future. Bridging the gap between government policy and industry implementation. Developing original research, analysis, and databases. Sharing best practices, including policy experience, and providing access to a network of international experts. 2

4 Cement Production in China, Region, and the World Source: IMF, 2013

5 World Cement Production Is Increasing Source: IEA

6 Global CO 2 Emissions from Cement Production Increasing Source: Campisano, 2011

7 Waste Production Also Increasing With Urbanization and Industrialization China produced 520,000 tonnesof MSW/day in 2004, and is projected to produce 1.4 million tonnes/day in 2025 (World Bank, 2012) Composting 1% Incineration 5% Uncollected waste 30% Controlled landfill with basic sanitary facilities 24% Uncontrolled landfill 40% Source: Zhang, et al, 2010 (2006 data)

8 AFR Is a Potential Solution to Both Problems Alternative Fuels and Raw Materials (AFR) replaces coal and CO2 producing raw materials Where waste cannot be managed by 3 R s (reduce, reuse, recycle), AFR reduces incineration, landfilling and uncontrolled disposal: Municipal Solid Waste (MSW) Industrial and municipal sludge Industrial waste (slag, etc.) Hazardous waste Fly Ash Used Tires Biomass Inherent advantages to co-processing waste in cement production o High kiln temperatures (up to 2000 C) and sufficient retention times destroys organic pollutants and burns off SO 2 Very low dioxin and furan emissions concentrations o Heavy metals and waste residue stored in final cement product

9 Implementing AFR in the Cement Industry Economics and environmental benefits depend on the development of a large, continuous supply of uniform high quality resources Waste resources generally require pre-processing Control water content, heavy metals, and volatile compounds Address variability Regulations, technology and good operational practices needed to develop the supply and ensure environmentally sound use

10 30+ Years of Successful Experience Addressing Technical, Policy, Environmental, and Financial Challenges Current Status of AFR in Cement Industry Country % TSR by AFR Country % TSR by AFR Netherlands 83 Sweden 29 Switzerland 48 Luxemburg 25 Austria 46 United States 25 Germany 42 Czech Republic 24 Norway 35 Japan 10 France 34 China 4 Belgium 42 India 1 TSR = Thermal Substitution Rate Source: CEMBUREAU

11 Significant Reduction of Coal Consumption in European Cement Production through use of AFR Coal Savings in Cement Production due to AFR Source: Heidelberg Cement, 2013

12 International Best Practices for Increasing Responsible Use of AFR Effective Institutional and Regulatory Framework: Part of an Integrated Waste Management Approach Sorting and Pre-treatment of Waste Control of Waste Inputs Environmental Performance Product Quality Operations and Safety Rigorous System for Permitting and Site Selection Monitoring and Reporting

13 Existing International Frameworks/Guidelines/Standards International Organizations/Agreements: UNEP Basel Convention Technical Guidelines Stockholm Treaty Guidelines Private Sector Initiatives and Public-Private Partnerships: Holcim-GiZ Guidelines WBCSD CSI Research Institutes: SINTEF

14 Europe (I): Waste Framework Directive (2008/98/EC) Member countries must align national laws with waste prevention, recovery, recycling, and management requirements Sets waste management hierarchy: Prevention, reuse/recycling, energy recovery (AFR), landfilling (last) Establishes polluter pays and extended producer responsibility principles Creates strong incentive and more economical access for coprocessing Waste-producing facilities (i.e. industrial companies) and wastehandling organizations (cities) must pay cement industry for waste it co-processes

15 Europe (II): Landfill Directive (1999/31/EC) Strict landfill regulations and reduction targets pushed market to find alternative treatment measures (i.e. co-processing) for waste that cannot be reused or recycled o Sweden banned landfilling separated combustible waste (2002) and organic waste (2005) o Poland set strong MSW landfill reduction goals for 2013 and 2020 Cement became biggest contributor to landfill reduction goals (used 20% of MSW) Reduced cement coal consumption by 36% in 2009

16 Europe (III): Waste Incineration Directive (2000/76/EC) Addresses public concern about health and environmental impact of waste burning Set requirements for all stages of co-processing: Permitting Delivery and reception of waste Operational conditions Air emissions limits for a broad set of pollutants Water discharges Residues Monitoring and reporting Access to information and public participation Penalties

17 Europe (IV): Integrated Pollution Prevention and Control Directive (2008/1/EC) Reduce industrial pollution using integrated approach Environmental permitting system requires application of Best Available Techniques (BATs) Use of suitable waste as AFR is BAT in cement production To receive permit, covered industrial facilities must: Meet general obligations to prevent large-scale pollution, use energy efficiently, limit damage to environment Meet specific emissions limits, soil, water, and air protection measures, and waste management measures

18 AFR in Japan Primarily MSW, sludge and incinerator ash Scarce landfill area High landfill fees Imported energy Policy framework Research on waste reuse and technology Economic incentives for industrial ecology projects Basic Law for Establishing a Sound Material-Cycle Society (2000) o Integrated environmentally sound waste and material management approach o Shift emphasis from waste management to materials management - 3R (reduce, reuse, recycle)

19 Next Steps for China to Increase Use of AFR and Reduce Coal Consumption in Cement Industry 1. Identify most promising AFRs: (MSW, Sludge, etc.) Current and potential use and supply Collection, pre-processing, transportation, storage, use needs Coal replacement and emissions reduction potential and ability to address other environmental issues 2. Evaluate existing pilots: Successes and challenges (technical, economic, logistic, policy, social/environmental) Stakeholder roles, interests, and engagement strategy 3. Strong, clear national and local policies and incentives, not just mandates, to foster sustainable behavior and make waste streams available

20 Elements of a Successful Policy and Incentive Framework Government and private sector jointly promote AFR as environmentally sound, financially feasible solution Robust regulatory framework for permitting, waste and product quality, emissions and reporting as part of an overall waste management plan Long-term policy stability/predictability to foster right climate for investment Refer to internationally recognized guidelines to increase confidence Create market and financial incentives (e.g., polluter pays principle) Build technical and environmental competence Set Goals/Targets: Increase AFR use to 10-15% of cement industry fuel and raw material needs by 2020 o Reduces CO 2 emissions by ~74 mt/year

21 Thank You! Bruce Hedman Technical Director Chen Dongmei Senior Advisor, China Programs ext. 107