Interim Meeting of the Project on Low-Carbon City Planning in Surabaya, Indonesia. November 20, 2013 AMITA CORPORATION

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1 Interim Meeting of the Project on Low-Carbon City Planning in Surabaya, Indonesia November 20, 2013 AMITA CORPORATION 1

2 Business Concept ~Waste Reuse in Cement Plant~ Virgin raw material CaO SiO 2 Al 2 O 3 Fe 2 O 3 Coal Mine AMITA Alternative raw material Waste Waste Generator 100% Recycle (Reuse) SlurMix CRM Cement plant CRM is used as alternative SiO 2 &Al 2 O 3 Landfill Incinerator 2

3 Survey items 1 Baseline Survey Cement production Waste consumption rate in cement industry Energy consumption amount, Energy consumption rate, CO 2 emission amount 2 Market Survey Generation amount of each industrial waste Simulation of the products Treatment cost of each industrial waste Relevant environmental regulation 3 Feasibility Study Initial cost of intermediate treatment plant for cement raw material Government support Project finance (JBIC, JICA, etc.) 3

4 Survey items 1 Baseline Survey (Achievements) Cement production Waste consumption rate in cement industry Energy consumption amount, Energy consumption rate, CO 2 emission amount Production Kiln Semen Gresik/ Tuban 2,880,000t/ year 4 (SP) Waste recycling Biomass byproducts recycling Paper sludge ash, Fly ash, Bottom ash, Heavy oil sludge, Waste grease, Cu slag, BF slug, Waste rubber, Tobacco filter, RDF Coco peat, Rice husk Energy substitution ratio Biomass 3% 4

5 Waste Utilization in Indonesia and Japan Indonesia Japan Population 230,000, ,000,000 Area 1,910,931 km 2 377,930 km 2 Industrial waste generation 7,000,000 t / year 400,000,000 t / year Cement production 55,000,000 t / year 57,579,000 t / year Waste recycled amount by cement industry Waste consumption rate in cement industry? t / year 44,400,000 t / year? kg / cement 1t 469 kg / cement 1t Findings Indonesian cement makers are utilizing mainly agricultural by-products, not much industrial by-products. Indonesian cement industry has huge capacity to accept industrial byproducts. 5

6 1 Baseline Survey (Future plans) Visit other cement companies as much as possible. Analyze each companies status and figure out the potential ability for recycling. Study Waste Acceptance Criteria of all cement companies. 6

7 Survey items 2 Market Survey (Achievements) Generation amount of each industrial waste Simulation of the products Treatment cost of each industrial waste Relevant environmental regulation Company A Company B Company C Company D Product Waste and amount Musical products Waste water treatment sludge: 25t/ day Blass grinding scrap: 5t/ day Stationary goods Waste plastics: 2t/ month Metal Waste oil: 2t/ month Dust: 12t/ month Cost Unknown Rp. 5,500/ kg Rp. 2,000-2,700 /kg Food products Waste water treatment sludge: 5t/ day Coffee sludge: 25t/ day Rp. 130/ kg 7

8 Company E Company F Company G Company H Product Auto-parts Food products Auto-parts Pharmaceutical Waste and amount Ash: 2t/ month Waste glass: 1t/ month Waste oil: few drums/ month Waste oil: 0.2t/ month Waste plastics: 0.2t/ month Canteen waste: 6t/ month Waste water treatment sludge: 2t/ month Cost Unknown Rp. 600,000/ drum Rp. 350,000/ drum Rp. 600,000/ drum Findings Metallic scraps and plastics are usually sold to recyclers. Organic waste are also sold as raw material for animal feed and fertilizer. B3 waste are mainly treated by PPLi (P.T. Prasadha Pamunah Limbah Industri) and TLI (PT. Teknotama Lingkungan Internusa). Companies in Surabaya region are burdened with high transportation cost of B3 wastes. Most of wastes are not utilize as raw material for cement industry. 8

9 2 Market Survey (Future plans) Visit other waste generator as much as possible. Collect information from Japanese companies by using attached questionnaire. Simulate chemical composition of CRM (Cement Raw Material) made of industrial wastes. Survey market price of treatment cost. Study relevant environmental regulation. 9

10 Survey items 3 Feasibility Study (Achievements) Initial cost of intermediate treatment plant based on Japanese plant. (Estimation) SlurMix plant Rp. 25,000,000,000 (Treatment capacity: 10,000t/ year) CRM plant Rp. 13,800,000,000 (Treatment capacity: 24,000t/ year) 10

11 3 Feasibility Study (Achievements) Government support Information KLH JETRO JICA support municipal waste management, not B3 wastes. Most of JICA projects are Yen loan projects. There is a waste management law though, final judgment might depends on the person in charge. JETRO does not have enough information about B3 wastes. 1,400 Japanese companies in Jakarta and many of them are automobile related industries. Minimum wage has been raised for 40%. JETRO will support making questionnaire to the Japanese companies. 3 Feasibility Study (Future plans) Visit relative agencies. (JBIC, JICA, etc.) 11

12 Reduction of CO 2 Assumption: Constructing SlurMix plant in Surabaya Production of SlurMix : 10,000t/ Year Calorific value of SlurMix : Ave. 3,349kcal/kg 10,000t 3,349kcal/kg =33,500,000kcal/kg Ave. calorific value of coal is 6,354kcal/kg 5,270t of coal CO 2 emission of coal is 2.33t/coal ton Cement manufacture could save about 12,280t -CO 2 / Year by using SlurMix. 12

13 Reduction of CO 2 Assumption: Constructing CRM plant in Surabaya Production of CRM: 24,000t/ Year Calorific value of CRM: Ave. 1,800kcal/kg 24,000t 1,800kcal/kg =43,200,000kcal/kg Ave. calorific value of coal is 6,354kcal/kg 6,800t of coal CO 2 emission of coal is 2.33t/coal ton Cement manufacture could save about 16,000t -CO 2 / Year by using CRM. 13

14 Schedule Baseline Survey Survey Items Jul Aug Sep Oct Nov Dec Jan Feb Cement production Waste consumption rate in cement industry Energy consumption amount, energy consumption rate, CO 2 emission amount Market Survey Generation amount of each industrial waste Treatment cost of each industrial waste Relevant environmental regulation Feasibility Study Construction cost of intermediate plant for cement raw material Government support Project finance (JBIC, JICA, etc.) 14