SCG, the largest cement and building materials company in Southeast Asia, has boosted the utilization of industrial waste as fuel and alternative raw materials at its Indonesian subsidiary, PT Semen Jawa.
The use of alternative fuel reaches 5,000 tons per month, accounting for 19.5 percent of PT Semen Jawa’s total fuel consumption.
SCG has adopted the Alternative Fuel & Alternative Raw Material (AF/AR) recycling technology. Since the operation of AF/AR in 2023 at PT Semen Jawa, it has entered its second phase.
The utilization of alternative raw materials at PT Semen Jawa reaches 8,000 tons per month, equivalent to 3 percent of the total raw materials.
Alternative Fuel (AF) is derived from selected waste and by-products, both internal and external. These alternative fuels can be utilized as substitutes or supplements to coal after undergoing processing.
Types of waste that can be processed into alternative fuel include plastic, rubber, textiles, activated carbon, wood chips, rice husks, palm kernel shells, coconut fibers, palm fibers, and other plant waste.
On the other hand, Alternative Raw Material (AR) includes iron slag, fly ash, bottom ash, artificial gypsum, as well as selected hazardous and non-hazardous waste containing substitution minerals such as calcium, silica, alumina, and iron.
Warit Jintanawan, SCG’s Country Director in Indonesia, said that through the implementation of AF/AR, the company not only enhances production efficiency but also actively reduces carbon footprint.
“In 2023, we have successfully multiplied the utilization of alternative fuels and involved alternative raw materials in the production process at an impressive percentage. With this development, we are optimistic about consistently seeing improvements, both in fuel and raw material utilization, in every SCG production process spread across Indonesia through various subsidiaries,” Warit said in a statement on Wednesday, April 17, 2024.
SCG is also committed to taking tangible actions to support Indonesia in achieving its Enhanced National Determined Contributions (ENDC) by reducing 31.89 percent of greenhouse gas emissions.
Additionally, SCG is realizing the ‘Set Net Zero’ commitment as part of the ESG (Environmental, Social, and Governance) 4 Plus principles.
ESG 4 Plus consists of four main commitments: achieving net-zero emissions by 2050 (Set Net Zero), establishing green industries (Go Green), reducing social inequality (Reduce Inequality), and embracing collaboration (Embrace Collaboration), with fairness and transparency in every operation (Plus).
PT Dayasa Aria Prima, an SCG subsidiary in the packaging business, has also been utilizing wood pallet waste as alternative fuel since 2022. The use of pallet waste has reduced coal consumption by up to 4 percent, equivalent to 1,211 tons, and is projected to increase to 6-10 percent.
Furthermore, PT Semen Jawa has been utilizing hazardous and non-hazardous waste as alternative raw materials in cement production through co-processing, reaching 8,000 tons per month, equivalent to 3 percent of the total raw materials.