Strength. Performance. Passion.

Solving landfill issue for Yogya

Idea for Yogyakarta, Sleman, Bantul

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 2

Yogya situation and how RDF2 is a solution

Yogya1 situation What RDF solves Yogya gov’t to do

 Piyungan landfill is  Divert more than 80%  Continue waste
maturing of municipal waste collection
from landfill including  Convert landfilling
 Gov’t needs to start the wet organic waste
sanitary landfill into waste mining and
from landfill backfilling
 MSW is coming in at  Reduce the existing  Allocate & clear out 2
350tpd, at growth of 6- landfill by 30 tpd by ha land for RDF
10% p.a. mining it into the RDF plant3, either next to
 Scavengers and cows processing landfill or near the city
are working on top of  Let scavengers  Provide USD 20
landfill continue taking million capex3 to build
recyclables which they the RDF plant
take today, and provide  Setup management
better working contract with RDF
environment for them plant operator/off-taker,
i.e. Holcim

1 Kartamantul: Yogyakarta, Sleman, Bantul

2 Refused Derived Fuel 3 Early estimates by Holcim for 350tpd incoming waste, to be refined in DED
RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 3
The municipal waste flow with RDF processing plant
Illustration for Yogyakarta, Sleman, and Bantul
The three cities
Piyungan landfill

100 tons
waste
Mining
70 tons
RDF plant inert
300-350 tons
fresh waste MSW RDF 140 tons
RDF
Holcim Cilacap
10 tons
recyclables

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 4

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 5

MSW1 to RDF2 processing: who does what
Can be managed
by Holcim

2
4

3
6
Outside Holcim scope (to be managed by gov’t):
1. Operations which can be managed by
1 Waste collection and transportation to RDF Holcim:
plant
2 Landfill operations, including waste mining
2. 4.4 Operations of RDF plant
into, and residue handling out of RDF plant 5.5 RDF transportation to Cilacap plant
3 Scavengers and recyclables management
3. 6.6 RDF quality risk management

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 6

Processes in RDF plant include bio-drying step which can
process wet, organic material

Example of bio-drying equipment setup

Processes in the
MSW-to RDF
plant:
• Reception
• Storage
• Pre-processing
• Bio-drying
• Upgrade to RDF
• Recycling

This bio-drying
process enables the
processing of wet,
organic materials

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 7

MSW to RDF processes include all leftover and organic
matter and reduce water content to become fuel
Processed in our Products from
Fresh MSW
MSW-RDF plant process

Inerts 10%, Inerts 10%, Inerts 10%, • Recyclables

recycleables 5% recycleables 5% recycleables 5% taken by
30% of output scavengers
• Inert goes to
landfill
Evaporated water
Food waste 65% ~50%

70% of output

Dried food waste RDF (<20%

High calorific and high calorific moisture) Fed to cement kiln
solids 20% solids 35% 35% as alternative fuel

This approach reduces significantly the requirement

for landfilling, at same time providing fuel

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 8

RDF plant general layout and land requirement for 350tpd

• Land area requirement <20,000 m2

• To be designed to be Yogya-specific during DED
• Can be operated temporarily on top of landfill (at higher opex)

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 9

Example pictures from Holcim plant in Wuxue, China

Waste reception

Storage & pre-processing

© 2013 Holcim Ltd

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 11

Elements of capital and operational costs of the solution
For Yogyakarta 350 tpd

In million USD
At RDF plant
 Equipment 8
Capex  Civil 12
 Maintenance Capex every two years 0.3
At cement plant
 Storage, handling TBD

In USD/ton incoming waste

 At RDF plant, i.e. processing 12
Opex  Transfer, i.e. loading, transport, unloading 7
 At cement plant, i.e. storage and feeding 2

Cost allocation, i.e. who covers which

element of cost, is to be discussed

RDF Solution to Tangerang, 2013-10-28 © 2013 Holcim Ltd 12

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 13

Social impact assessment
• For the Scavengers at Landfill Area :
 Improved working environment
 Better working time management
 Therefore better living condition/habit for the scavengers family

• For the community around the Landfill area :

 Decreased odor from Landfilling
 No more landfilling area extension

• For community of the 3 cities :

 Larger area to be covered by the government waste collection
in the future
 Better solutions than landfilling
 Cleaner cities

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 14

Environment impact
• Highly reduced carbon foot print – The carbon footprint is reduced due to
 Avoidance of methane formatting substances at the landfill
 Substitution of fossil fuels at the cement kiln
 The carbon emission reduction is estimated at 240,000 t CO2 equiv/y.
• Improved properties of the landfill body. Due to avoidance of the organic matter the
settling of the landfill is significantly reduced, and the site can be utilized for other
purposes within a shorter time frame (from the time that waste depositing is
completed).
• Reduced environmental impact from the landfill. Due to removal of the organic
fraction, leachate formation and foul odor is significantly reduced.
• Strong reduction in waste for depositing. The amount of waste for depositing is
reduced to 10-20% in weight. In relation to saving of landfill space, the reduction is
much higher, due to high specific weight of the residues and the hereto
corresponding smaller volume.

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 15

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 16

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 17
Holcim Sustainable Development Ambitions

Why a Sustainable Development Ambition?

• From “part of the problem” to • To close the gap between our

“part of the solution” brand promise and value delivery

• Is motivating and inspiring for • Contribute to maintain the planet

employees in its safe operating space

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 18

Holcim Sustainable
SD Abitions Development Ambitions

Focused 2020 Targets and 2030 Aspirations over the Life

Cycle of Buildings and Infrastructure
Continuous improvements Prepare the change Transform

2015
2015 2020
2020 2030
2030 Aspirations
Aspirations

Reduce specific carbon Reduce specific carbon Achieve no net increase in

emissions by 25% vs. 1990 emissions by 30% vs. 1990 absolute carbon emissions vs.
Carbon 2012*
Footprint

Achieve HLJ targets of AFR and TSR = 20% Valorize 1 Bio tons of
Energy streams Valorize 10 Mio tons of Construction secondary materials between
Demolition Waste and other alternative AGG 2012 and 2030

Resource Define operational water Improve water efficiency by 20% vs. 2012 Positive impact on water
Conservation footprint of all sites and meet water quality criteria in all sites resources in water- stressed Sustainable
areas Solutions

Implement Biodiversity Action 1/3 of revenues from

Assess the biodiversity quality of all our Positive change on biodiversity
Plans in all sensitive sites sustainable solutions
extraction sites

Invest 75% of CSR spending in Improve shelter and

Implement 50 inclusive
strategic social and livelihood for 100 Mio people
business projects
collaborative projects between 2012 and 2030
Value for
Society

* No net increase requires to compensate the increase in emissions in our operations with products, services and solutions that save CO2
emissions of our customers. Between 2012 and 2020, Holcim will need to compensate 100Mt CO2

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 19

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 20

Risk assessment for government and Holcim
Applicable to…
Type of risk Gov’t Holcim Mitigation

• Operations
 Waste volume and quality Clause in contract
variability
 Technical challenges Technical support contract
 Variability in cost components
 Coal price fluctuation Price adjustment formula

• Financials
• Payment delays Clause in contract

• Social
 Challenge from community Community engagement
plan
• Environment
 Targets are not achieved Environmental monitoring
committee

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 21

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 22

Yogyakarta agreement is expected in Q4 2013
Oct Nov Dec
Activity 20. 27. 03. 10. 17. 24. 01. 08. 15. 22. 29.

Internal approval
BOC approval

Decision on
Technology

Align with World Bank

Yogya states
MoU with Yogya
technology preference to WB
before end 2013

Agreement w Yogya
Proposal to Yogya province

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 23

Agenda: RDF for Yogya

Overview: what is MSW to RDF

Technical
Financials
Social and Environmental
Holcim's motivation
Risk mitigation
Next steps
Backup: landfill reduction calculation

RDF Solution to Yogyakarta, 2013-10-28 © 2013 Holcim Ltd 24

Possible waste mining
Amount waste mined/day 400 t/day

Backfilled directly 75%

Transferred to membrane drying 25%

Output of mined waste:

Evaporation of water 17%
RDF 65%
Inerts and fines 18%

(To compare - Outputs incoming waste)

Evaporation of water 47%
RDF 31%
Recyclables 3%
Inerts and fines 19%
© 2013 Holcim Ltd
Summary for including waste mining in process
• Total input for membrane drying: 400t/day

• Total outputs:
 RDF 140t
 Recyclables 10t
 Inerts and fines 70t

• Mined from the landfill/day : 100t

• Deposited at landfill/day (if fines not recycled) -70t
• Free space gained at landfill/day 30t

© 2013 Holcim Ltd