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Meeting international standards of cleaner production in developing countries: Challenges and financial realities facing the Indonesian cement industry

Panjaitan, Togar Wiliater Soaloon and Dargusch, Paul and Wadley, David and Aziz, Ammar abdul (2021) Meeting international standards of cleaner production in developing countries: Challenges and financial realities facing the Indonesian cement industry. [UNSPECIFIED]

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      Abstract

      A key challenge for heavy industry in emerging economies is how to meet international greenhouse gas (GHG) emission standards since they are often based on the conditions and capacities of manufacturing in advanced countries. Firms in developing nations are typically cost-driven and reliant on older, less efficient technology: very few have achieved the relevant targets. Cement making underscores the point: no study to date has specifically quantified, in technical and financial terms, the gap between existing firm performance and global GHG emission standards. We examine Indonesia�s largest cement manufacturing facility to investigate what needs to be done to overcome the discrepancy. The article starts by reviewing key contextual issues such as the facility�s location, scale, organisational configuration, available materials, energy use, and technological capacities. The plant�s direct emission intensity is 0.69 t CO2e/t cement, higher than the global target for 2030 (0.55 t CO2e/t). Analysis reveals six potential emissions reduction activities: (1) utilising fly ash as a clinker substitute; (2) employing limestone as a clinker substitute; (3) using biomass from rice husks as an alternative fuel; (4) adding pre-heating stages in kilns; (5) waste heat recovery for power generation; and (6) using refused-derived fuel from municipal solid waste as an alternative fuel. These measures, if adopted in full, could reduce GHGs at the facility by up to 33%, or a total of 34,145,190 t CO2e over a 10-year timeframe (2020-2030). This abatement action would leave the facility�s direct emissions intensity to 0.48 t CO2e/t cement. In present values, assuming a 10% discount rate, they would result in savings of US$415 million for a US$94 million outlay. Despite the apparent technical and financial advantages, all measures together are unlikely to be adopted, since the plant studied is well advanced in its lifecycle and the parent company is experiencing financial constraints common to those in developing nations.

      Item Type: UNSPECIFIED
      Uncontrolled Keywords: cement industry, emerging economies, emission standards, emissions reductions, abatement measures
      Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
      Divisions: Faculty of Industrial Technology > Industrial Engineering Department
      Depositing User: Admin
      Date Deposited: 16 Aug 2021 14:53
      Last Modified: 10 Sep 2021 04:31
      URI: https://repository.petra.ac.id/id/eprint/20011

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