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IMPLEMENTING CIRCULAR ECONOMY FOR SUSTAINABLE INDUSTRY

DEVELOPMENT

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 UNIVERSITAS DIPONEGORO
SEKOLAH VOKASI (VOCATIONAL SCHOOL)

Circular Economy & Sustainable Entrepreneurship:

IMPLEMENTING CIRCULAR ECONOMY FOR
SUSTAINABLE INDUSTRY DEVELOPMENT

P. PURWANTO
UNIVERSITAS DIPONEGORO
Semarang, 4 September 2023
E-mail: purwanto@live.undip.ac.id
SUMMER COURSE
BUSINESS INNOVATION, ENTREPRENEURSHIP,
AND SUSTAINABILITY:
TURNING IDEAS INTO SUCCESSFUL AND
SUSTAINABLE FUTURE
Semarang, 4-8 September 2023
 Outline

1 The Cost of Waste 4 Circular Economy

2 Sustainable Development 5
Implementing Circular Economy
for Sustainable Entrepreneurship

3 Sustainable Industry
6 Industrial Symbiosis
 themanufacturer.com

1. The Cost of Waste

3
Emerging and globalization issues

• Population growth
• Consumption of natural resources
• Deindustrialization of the Developed World
• Technology development
• Development of information technology
• Clean energy needs
• Emerging market business models
• Supply Chain Disruption
• Government regulations
 Industry

Gas emission
Heat emission
Particulate
Raw material
Water lateet.com
Product
Energy By Product
Other resources Wastewater
Solid waste
Hazardous waste
remrisk.com

5
The linear economic model also referred to as “take, make, waste,” is energy-
intensive and incredibly wasteful.
We take natural resources, manufacture products, use most products for a
minuscule amount of time, and discard them (driving demand for more natural
resource extraction).

The Circular Economy: What it means for Fracking and Plastic - FracTracker Alliance
6
Waste Can Impact Our Environment

https://www.youtube.com/watch?v=Cti5HQZnTrQ 7
 True Cost of Waste
• The true cost of waste to your institution will
not just be the costs of disposing of your waste

• True cost of waste = Disposal cost

+ Cost of purchasing material

+ Handling / processing / maintenance costs
+ Management time
+ Lost revenue
+ Any potential liabilities

True cost of waste | Sustainability Exchange

8
Waste Prevention and Management
• How to prevent generation of waste?
• How to reduce generation of waste?
• How to minimize generation of waste?

• How to reuse waste?

• How to recycle waste?
• How to reclaim waste?

Can waste be used as raw material?

Can waste be processed into products and energy?

https://blogs.iu.edu/

Minimize use of virgin material from natural resources

9
 themanufacturer.com

2. Sustainable Development

10
11
Pillars of Sustainable Development

3E → 3P
Economy → Profit
Environment → Planet
Social Community (Equity) → People

12
Circular Economy and Sustainable Development

circular economy “refers to an economic concept

that is part of sustainable development and
whose objective is to produce goods and services
while limiting the consumption and waste of raw
materials, water and energy sources, based on the
principle of “closing the life cycle” of products,
services, wastes, materials, water and energy”.

Sustainable development and circular economy at the

heart of the agglomeration market - Euragglo
The holistic view of sustainability

(2) (PDF) Improving communities through knowledge intensive

regeneration - Mediacity Iconic Project: 1st deliverable as a
project report about diagnosis (researchgate.net)
14
15
 themanufacturer.com

3. Sustainable Industry

16
 Sustainable Industry

Sustainable
Sustainability Industry Industry

Sustainability

Sustainable
Industry

Industry
19
Technology for Industry 4.0

Ten technologies

20
21
 Industry 5.0 complements
the Industry 4.0 approach

M. Breque, L. De Nul, A. Petridis

Industry 5.0: towards a sustainable, human-centric and resilient European industry
European Commission, Directorate-General for Research and Innovation, Luxembourg, LU (2021) 23
Industry 5.0
• Changing the vision of the industry which was originally oriented
towards efficiency and productivity, to be expanded by strengthening
the role and contribution to society.
• Placing the welfare of workers at the center of the production process.
• Use new technologies to provide prosperity (not just jobs and growth),
and accommodate the production limits of the planet.
• Industry 5.0 complements the Industry 4.0 approach that specifically
places research and innovation in the service of transitioning to
industries that are sustainable, people-centred, and resilient.

24
Industry 5.0 goals and the technological enablers

Müller, J., 2020, Enabling Technologies for Industry 5.0

25
 themanufacturer.com

4. Circular Economy

26
Toth, G., Resources 2019, 8(4), 159; https://doi.org/10.3390/resources8040159
 From Linear to Circular Economy

Zero Waste – Zero Waste SG 28

True Principles of Circular Economy

The circular economy - What is it and why does it matter? -

Recycle Track Systems (rts.com) 29
The circular economy: Don’t trash it, fix it

https://www.youtube.com/watch?v=k0-KHah21w8
30
Circular economy
used the biological
cycle concept in the
nature applied to
the industry

31
Reuse, repair, remaking
and recycling can support
the transition from a linear
to circular economy of
plastic

Motivation for rethinking plastics | Office of the Prime

Minister's Chief Science Advisor (pmcsa.ac.nz)
32
Zero Waste is an
extraordinary concept
that can lead societies,
businesses, and cities to
innovative
breakthroughs that can
save the environment,
lives, and money
Zero Waste – Zero Waste SG
Zero Waste 33
 The current waste hierarchy
can be updated to prioritise
avoiding the use of the
material if feasible.

Waste to Product
Waste to Energy

Motivation for rethinking plastics | Office of the Prime

Minister's Chief Science Advisor (pmcsa.ac.nz)
34
A circular economic
model offers a
sustainable
alternative.

The Circular Economy: What it means for Fracking and Plastic - FracTracker Alliance
35
 Social aspect

Economy aspect

Environment aspect

The circular economy - What is it and why does it matter? - Recycle Track Systems (rts.com) 36
 themanufacturer.com

5. Implementing Circular Economy for

Sustainable Entrepreneurship

37
Why is entrepreneurship is important in the circular flow?

Entrepreneurs create new and improved services, products,

or technology to fulfill the demand, generating more wealth.

Entrepreneurial ventures create jobs that increase

the rate of employment.

From waste to product and energy

The Importance of Entrepreneurship in Economic Growth -
Entrepreneurship Basics
38
Circular economy for business development

https://www.youtube.com/watch?v=cQqhKzcHnAg
39
Circular economy for plastic
Closing the circular
economy loop in
plastics can boost
the industry’s
competitiveness
and address
climate change
issues.
In the context of
plastics production
and conversion,
this means that
plastics never
become waste
How a Circular Economy for plastics can help the GCC realize its
sustainability potential | GPCA 40
Not all types of plastic
can be recycled

41
Waste Bank

Collecting waste from domestic activities,

Utilizing waste (plastic, paper, metal) to
create a new products

42
Textile and
clothing from
recycled plastic

43
Composting from domestic waste

44
Metal Scrap Foundry
Klaten Regency, Central Java Province, Indonesia

logamceper.com Gallery | PT. Baja Kurnia

Traditional
“tungkik” furnace Cupola furnace

Waste to product and technology change

• Ferrous metal/cast iron, aluminum, zinc scraps as raw materials for all kinds of metal products
• Replacing the traditional “tungkik” furnace with a Cupola furnace
• Environmental, economic and social benefits such as: utilization of waste to create products,
reduced cokes, better product quality, reduced production costs, and safer
Production of Fish Meal
Rembang Regency, Central Java Province, Indonesia

Waste to • Fish waste as a raw material for making fish meal

• Fish meal is used as raw material for chicken feed
product • Environmental, economic and social benefits such as: utilization of waste to
create products, creation of new industry, and creation of jobs
 From waste to
biogas by anaerobic
digestion
(fermentation
process)

Anaerobic digestion systems

convert organic waste into
biogas, which can be used for
electricity, heat, vehicle fuel, or
injected into the natural gas
grid. Digestate, a by-product,
can serve as a biofertilizer or
animal bedding, among other
uses

Converting biowaste to biogas could power cleaner,

sustainable Earth future (mongabay.com) 47
From
waste to
energy
 themanufacturer.com

6. Industrial Symbiosis

49
Agroindustrial symbiosis
Sukoharjo Regency, Central Java Province, Indonesia
soybean, water, energy

Tofu
production

solid waste
wastewater solid waste
sludge

energy
CATTLE Benefit:
FARM
Environment
Biogas wastewater - zero waste
- waste to
Grass Catfish product
plant farming
Economical
- energy & raw
raw material
dung/ sludge material
fertilizer manure efficiency
Soybean farming - profit increase
Composting Social
- new jobs
 Evolution of industrial symbiosis
EIP Kalundborg Denmark

www.symbiosis.dk

Symbiosis started in 1961 driven by the City of

Kalunborg, Dong Energy Asnaes Power Station,
Statoil Refinery, and Novo Nordisk
51
https://www.kalundborg.dk/Borger/Job_og_ledighed.aspx
 Industrial symbiosis
EIP Norrköping
Swedia
ECONOMIC & BUSINESS BENEFITS
Utilization of waste as raw materials
and energy
Supply of water, steam and energy
from one industry to another
industry and city
ENVIRONMENTAL BENEFITS
Reduction of greenhouse gas
emissions
Reducing waste to landfill
Reducing dependency on fossil
energy
http://www.industriellekologi.se/symbiosis/norrkoping.html 52
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