1. Current CDM experiences HeidelbergCement
E-540, p. 1
Current CDM experiences HeidelbergCement
Rob van der Meer
HeidelbergCement
member of WBCSD / CSI

2. Current CDM experiences HeidelbergCement
E-540, p. 2
Current CDM experiences HeidelbergCement
Potentials in cement industry
Indocement CDM-project of HeidelbergCement
Experiences
Conclusions and recommendations

3. Cement sales > 65 Million Tons/Year 42.000 People
E-540, p. 3
HeidelbergCement
Turnover 6,9 Billion € (2004)
Producer of
Cement
Concrete
Building materials
Cement sales > 65 Million Tons/Year
People
Active in 52 Countries
Europe
Northern America
Africa / Asia / Turkey

4. Potentials in cement industry
E-540, p. 4
Potentials in cement industry
CO2 emissions at cement production
specific CO2 emissions
Process CO2
Combustion CO2
ca. 0,8 kg CO2 / t Portlandcement
ca. 2/3
ca. 1/3
Raw material
(CaCO3)
Kiln
Cement mill
Cement
Fuels
Additives :
o Blast furnace slag
o Limestone
o Puzzolanic materials

5. Potentials in cement industry
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

6. Total Production Capacity Indocement
E-540, p. 6
Indocement
Citeureup Factory
CITEUREUP PLANT
CIREBON PLANT
TARJUN PLANT
Total Production Capacity Indocement
> 15 Million Tons/Year

7. Indocement CDM project together 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.

8. Expected reduction and tradable CER
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

9. Indocement CDM project - Status
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)

10. Indocement CDM project - Status
E-540, p. 10
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)

11. In 2002 UNFCCC’s guidelines were vague.
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 US$ for consultants, validations, registrations etc.)
HR resources (patience required)

12. Conclusions and recommendations
E-540, p. 12
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.

13. Thank you for your attention!
E-540, p. 13
Thank you
for your attention!