Innovation

Holcim Indonesia is the first of the Holcim Group to receive United Nations Framework Convention on Climate Change (UNFCCC) approval to substitute fossil fuels with alternative fuels in a cement plant with the intention to making the world a better place by reducing emissions, reducing waste and reducing cost.

Rice husks are a byproduct of rice milling. At the mill about 65% of the harvested weight is received as rice, broken rice and bran, 25-27% is received as husk. Indonesia produced more than 10 million tons of rice husks a year and most of them were wasted.

Traditionally, rice husk has been used as an ingredient in ruminant and poultry feeds but the problem of low nutrients, digestibility, high silica/ash content and abrasive characteristics limit the amount that can be used. Now they can be used as clean and renewable fuel.

The project started at 2002. Holcim developed contracts to improve the incentive for farmers and truck owners to work together to generate a regular and reliable source of supply. A fixed contract system was successfully tested involving three types: 53,000-tonnes per year (2014), and a contract for small irregular deliveries.

This system has proved itself, not only guaranteeing supply for Holcim and fixed payment for the micro suppliers, but generating work for informally employed truck drivers and loaders working for the transporters.

Communication with local villagers was initially achieved through banners offering cash for rice husks set up by the Holcim Biomass Sourcing Team. Holcim’s new Biomass Field Officers meet face to face with local farmers and villagers to develop trust and dialogue. The community has responded warmly to this economic opportunity on their doorsteps.

Inspiration

Holcim sustainable development vision’s is to provide foundation for society’s future. In line with this vision, Holcim’s sustainable development goal is to create shared value. It has placed sustainable development at the heart of its business strategy for many years. The starting point is Holcim’s corporate values of strength, performance and passion – which are in effect a promise to be a solid partner, to deliver on their promises and to provide the best solutions for customers while caring about everything. This care extends to the people, the customers, the communities and the environment. Holcim has placed sustainable development at the heart of its business strategy for many years. Holcim follow the three pillar approach of the triple bottom line – economy, society and environment because of the belief that it creates added value for stakeholders.

Overall impact

The cement industry accounts for approximately 5% of global carbon dioxide (CO2) emissions. Cement is the primary ingredient in concrete, which in turn forms the foundations and structures of the buildings we live and work in, and the roads and bridges we drive on. Concrete is the second most consumed substance on Earth after water. On average, each year three tons of concrete are used for every person on the planet. Kilns are usually heated by coal, natural gas, or oil, and the combustion of these fuels produces additional CO2 emissions, just as they would in producing electricity. CO2 represents around 40% of emissions from cement manufacturing.

This project brings additional income to farmers and transporters from Bogor, Karawang, Bekasi, Cilacap and other places involved by supplying waste biomass to the company’s alternative fuels operations. In addition to creating employment for local people, this model enhances livelihood and quality of life, works towards a cleaner and safer environment, helps prevent environmentally hazardous practices, allows for the constructive use of waste, and improves understanding of the company’s activities within the community. Holcim is committed to continuously evaluate whether this is the most responsible way to source biomass.

Business benefit

Reduces cost of fuel and reduces CO2 emissions.

Social and environmental benefit

Creates a market for rice husks that farmers could not sell, increases income to small farmers in Indonesia, creates more work for transport workers, reduces the need for fossil fuel by replacing it with a renewable fuel source.

Interview

Ummu Mukarnawati, Devina Haryadi, Lilik Setyadi, Lena, Anang, Corporate Communication, Sustainable Innovation, Geocycle, Engineering Department, Field Officer Rice Husk/ Bio mass