MSW to RDF initiative – RDF Cilacap

AFR Division - PT Solusi Bangun Indonesia Tbk

Background
Jeruk Legi Landfill Condition
Waste volume in Landfill
Consider on current condition area,
000 ton waste
Landfill capacity already over Without waste management facility
capacity on 2017
Landfill
 With some management Capacity
effort, can be extended extended with
max
maximal up till 2018* management
Effort*
 Periodically need to invest
ideal
Land and new facility for new Capacity
Landfill site to accommodate 72,800 Im3
fresh waste

2014
2013

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
*rely on volume shrinkage from waste pilling and manage for pilling location

© 2019 Solusi Bangun Indonesia 2

Background
Operational and Investment Cost
• Collection Cost : Pemkab Cilacap spent cost around IDR 72,000 per ton (IDR 3,3
bio per year) for trucks and excavator (exclude salary for man power)
• Cost for Landfill management with sanitary landfill method in proper way :
 Cost of cover soil that should provide as regulation IDR 1.8 Bio per year ( current
condition budgeted but not in accordance with regulation)
 Cost of investment on Land to build New Landfill area IDR ~40 Bio* in every 5
year.
 Land availability limited and price for land always increase
 Potential Rejection from community for opening new Landfill
85
Cost of sanitary landfill
58
41

6 7 11 12 12
2 2 3 3 3 3 6 6

2014 2016 2021 2026 2029

* Estimation for 5ha, before land price increase
Sumber: DCKTR Cilacap - 2014
© 2019 Solusi Bangun Indonesia 3
Background
Operational and Investment Cost
Cilacap Condition
 Fresh waste volume send to Landfill
area 120 tpd , with increasing volume
average 0,39% per year ( in
accordance with population growth )
 Methan Gas emission produce by
Pilling waste.
 Current Solution limited by using
availability the land for landfill. If the
landfill already full capacity, need to
get new and not a small amount
investment to get new land.
 Quiet difficult to get a new land for
landfilling the fresh waste and also high
potential rejection from the
community if the land will use for
landfilling the wasate
What Solutions that Holcim
Offering
 Reduce 80% Cilacap waste /MSW
include non-organic & wet organic
material from Landfill
 Reduce CO2 Emission by Methane gas
produce from open landfill area.
 Extend using availability of existing
Landfill
 Provide better working environment
for wastepickers
 Increase Waste Management Quality
by using technology to reduce the waste
 Reduce the waste goes to landfill and
Potential landfill mining with 120 tpd

 Activity of the Wastepickers at above

the landfill area.

Sumber: DCKTR Cilacap - 2014

© 2019 Solusi Bangun Indonesia 4
 Background
Historical Development of Stages (1)
2014
Exploration Phase
Project Start
• General Concept lead by Holcim Indonesia,
• Field visit to Cilacap, Discussion with stakeholder
(Holcim, DLH Cilacap, Bappeda Cilacap)
Technical Concept Development
• Basic Design+Detail Engineering Design for Civil Work
 HTEC, Holcim Indonesia Team
• External Consultant ( Tiga Daun  FS RDF Technology
for Cilacap )
• Soil Test + Mining Permit Revision  by Holcim
Indonesia since the location in Holcim Quarry area
Cooperation Concept Development
• Concept Development  1st time offering was 100%
finance by Holcim
• Group discussions and Workshops  Holcim, Cilacap,
ESP3 , KLHK
• Danida – ESP3 visit to CIlacap
• Visit of waste picker expert from India
• start of legal study
Project Introduction
• Holcim Present to Head of Cilacap Region,
• Holcim Present to KLHK and Central Java Province
Government
• Holcim Present to Danida – ESP3
Search of External Funding
Holcim approach Danish Embassy, Switzerland Embassy,
British Embassy.
MoU with Cilacap Government
Holcim Indonesia and Pem Kab Cilacap to explore the
project.
© 2019 Solusi Bangun Indonesia
2015
Development Phase
Project Development
• Special Task Force establishment in Cilacap Government
( TKKSD = Tim Koordinasi Kerjasama Daerah ),
• Danida Review Team Visit  Danida should check all
proposal of the project and choose base on which Suhu dalam tanur
project can run and impact for Indonesia Government
• Visit of Bappenas to Cilacap
>1.800°C
Technical Concept Sharpening
Technical Concept Sharpening
Waste Specification and Charaterictis Study by ITB and
Technical Design adjustments by independent Technical
Consultant  lead and support by Holcim
Financial Feasibility Assessment
• Financial Model Audit by Deloitte support by Danida –
ESP3
• Workshops for financial model with tipping fee
mechanism  Deloitte, Holcim, Cilacap, Danida ESP3
Feasibility Study
• Legal Study  Holcim suggest and paid by Danida – ESP3
• Several Workshops with Ministry of Home Affair,
Ministry of Finance  conduct by KLHK, Bappeda
Central Java Province, Bappenas
• Risk Mapping, Feasibility Study  conduct by Danida,
• Waste Picker Study ( 2 times ) conduct by Holcim and
Danida
Raise for support from Government
• Got Danish Embassy support via DANIDA – ESP3
• Present To PUPR  Holcim, Cilacap Gov and KLHK
• Inter Ministries Coordination ( KLHK, MoF, Bappenas,
PUPR, Bappeda Central Java Province),
2016
Preparation Phase
Project Development
• Danida Review Team Visit  routine checking from
Danida on progress of the project,
• Monthly progress tracking  by Holcim, Cilacap,
Danida, Bappeda Central Java Province and KLHK
Detail Engineering Design Discussion and adjustment 
by Holcim, Danida and PUPR
Financial Feasibility Assessment
Financial Model Result Workshop, Potential Cost Level
and share discussion (alternative strategy)
 Holcim, Cilacap, Danida, Bappeda Central Java
Province and KLHK,
Alternative Strategy Discussion
• Adjustment of investment liabilities and its result of
cost,
• Adjustment of business model,
• more involvement of Central Java Province,
• Land Acquisition by Cilacap Government,
• Project Budgeting by Danida and PUPR
Raise for support from Government
• Danish Ambassador to Cilacap,
• Got PUPR on board
Note :
HTEC = Holcim Technology Consultant (Global)
DANIDA = Danish International Development Agency
ESP3 = Environmental Support Program Phase 3
5
 Background
Historical Development of Stages (2)
2017 - 2018
Building Phase
Cooperation Concept Development
• MoU between Central Java Governor, KLHK,
PUPR and Bupati Cilacap signed on 26 July
2017
• Concept Development with Machines
Vendor
• Group discussions : Training from Machines
Vendor
• Workshops –> Discussed on Financial model
change from tipping fee become sharing
cost  TKKSD Cilacap and Holcim/ SBI
Build the Project
• Ground breaking project at June 2017
• PUPR started to build on Q4 2017 and finish
at Q4 2018
• Danida ESP3 – start to order the machines
at Q4 2017, Machines arrived and
Machines Installment on Q4 2018
Technical Concept Development
• Q2 2017 Detail Engineering Design by
Holcim is reviewed and make new DED by
PUPR and under Danida’s Consultant
supervise
© 2019 Solusi Bangun Indonesia
2019 2020
Finalization Phase Operational Phase
Cooperation Concept Development Cooperation Concept Development
• Hand over Infrastructure from PUPR to • MoU (KSB ) between Semen Indonesia and
Kabupaten CIlacap at 25 July 2019
• Hand over Machines :
Suhu dalam tanur
Bupati Cilacap signed on Jan 2020
• Cilacap Consult to BPK Central Java
 Danish Embassy to KLHK on 14 Mei
2019
>1.800°C
Province on 2 June 2020, before sign the
Agreement with SBI
 Cilacap Consult to BPK Central Java • Agreement ( PKS ) between SBI and DLH
Province on August 2019 before Cilacap signed on 19 June 2020
Handover from KLHK to Cilacap
 KLHK to Cilacap on 19 Dec 2019 Technical Concept Sharpening
• 2nd Commisisoning  Feb and March 2020
Project Development • 1 week Sharpening training 2nd time by
• Special Task Force of Cilacap Government Machine Vendor
(TKKSD) and SBI (ex Holcim ) start reviewing
Operational Agreement Financial Model
• Workshops –> several Discussion on Financial Model closed for 5 year cooperation
Financial model for sharing cost  TKKSD using Sharing Cost system
Cilacap and SBI
Technical Concept Sharpening
• 1st Commissioning By Machines Vendor on
Feb and Mar 2019
• Training from Machines Vendor
Financial Feasibility Assessment
Financial feasibility Study 2019 by :
• UGM  support by SBI
• Universitas Jendral Soedirman  ask by DLH
Cilacap support by SBI
-
6
 RDF Cilacap Project
Update Project Schedule
2014 2015 2016 2017 2018 2019 2020
Activity S 1 S 2 S 1 S 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Holcim Internal Study (Pre FS)
Initial Coordination with Cilacap Region
Concept Development with Danida Involvement Suhu dalam tanur
Join Feasibility Study (Holcim – Danida)
Feasibility Discussion
>1.800°C
Concept Adjustment (Public Work Involvement)
Public Work Budgeting Process
Agreement between Govt. Stakeholders
Tender Danida
Tender Public Work
Equipment Manufacturing and Delivery
Civil Construction (Public Work)
Equipment Installation and Test
Commissioning and Hand Over
Infrastructure Hand Over( PUPR – Pemkab CIL )
Equipment Hand Over(Danida – KLHK)
Equipment Hand Over(KLHK – Pemkab CIL)
2nd Commisioning
MoU Kab Cilacap & Semen Indonesia
Agreement DLH Cilacap & SBI
RDF Production by SBI

Completed On Going Planned

RDF Project Jeruk Legi - Cilacap Plant © 2019 Geocycle
 Cooperation Model within Government institutions
MoU for Cooperation Agreement within Government Institution signed on 26 July 2017

Services Equipment Gurantee letter to

- Legal / Regulation Study - Mechanical Equipment
Ministry of KLHK
- Cooperation Agreement - Shredder
- Screen Environmental &
DANIDA
guidance
- Financial Viability Study - Conveyors Forestry (KLHK) ESP3
- International Waste Picker
Expert
- Packing System
- Bio Drying Membrane
Suhu
from dalam
Support Letter
DANIDA tanur
- Fire Fighting
Provide >1.800°C
Equipment
Investment Contribution : 45 Bio IDR

Investment Contribution : 9 Bio IDR

Investment Contribution : 3 Bio IDR And Supporting Opex : 8 Bio IDR

Cooperation Central Java

Cilacap Region
Agreement - supporting
Province
Land, Trucks and Opex
cost operation - Other cost
Provide the Land Supporting Opex
Provide additional Truck (weight
for collections Bridge,etc
Services cost/OPEX

Infrastructure Provide
- Picking Bay Infrastructure SBI ( ex Holcim )
- Access road
- RDF Plant Building • Project Initiator
• RDF Facility Operator and Offtaker
Service Ministry of Public • Capex at Kiln (Investment : 13 Bio IDR)
- Checked DED Works & Housing • Engineering (DED Concept, Soil Test)
• Social Study (Community and Waste Picker)
• Waste Characteristic study
Investment Contribution : 30 Bio IDR
SBI - MSW to RDF 8
Cilacap MSW to RDF Pilot Project

© 2019 Solusi Bangun Indonesia 9

CIL RDF Flow of Diagram
Sortir Sampah
Jembatan Timbang Pre Treatment
Picking bay 120ton perhari jumlah pemulung +/- 100 orang
Shredder max kapasitas 40TPH atau 800TPD

Weighing Truk Truk

Penimbangan Pencacahan Sampah
Unloading
Penumpahan Sampah Pemilahan Sampah
Bay
Pemuatan RDF Kapasitas max 20tph atau 400tpd
Product akan ada setiap hari
Fasilitas pengeringan ada 9 Bay
Kapasitas max 500
Product Proses pengeringan max 21 hari
Reject Dari kadar air +/-60% menjadi dibawah 25%
Hasil panen 50% dari volume awal panen
Masa panen 3 hari sekali
Loading & Delivery
Pemuatan dan pengiriman
RDF RDF Inert

Process Pengeringan
Gudang Penyimpanan Fasilitas Pengumpan
Kapasitas gudang max 600 ton
Kapasitas feeidng max 5 tph
Kiln

RDF siap
readyuntuk
to bediumpankan
fed Feed to ke
Umpan Kiln
Kiln

© 2019 Solusi Bangun Indonesia 10

Technology of processing MSW into fuel
Bio Drying Membrane

• Biological drying using Bacteria from organic waste

• Special membrane that can evaporate water but will not penetrate water from outside
• Air flow and turning process to help bacteria stay alive during the drying process
• It takes 21 days of the drying process to produce RDF with the specifications required by the Cement
plant
© 2019 Solusi Bangun Indonesia 11
Technology of processing MSW into fuel
RDF specifications that can be used in the cement industry
RDF
NCV kcal/kg 3.000

H20/moisture % 25
Ash % 15
Chlorine % 0.8
Sulfur % 0.5

From our commissioning at RDF Plant in Cilacap, the drying

processing of fresh MSW can produced +/- 50% of RDF
product that consist of:

1. Inert (0-20mm) equivalent with compost  15%

2. RDF Product (20-50mm)  51%
3. Reject product ( >50mm) Oversize  34% (Re-shredded)
and combined into RDF product

© 2019 Solusi Bangun Indonesia 12

Cooperation concept between Cilacap Regency, RDF
operator and SBI
Waste collection Waste processing Off Taker

Govt role RDF Operator as Cement Plant

business unit Suhu dalam tanur
>1.800°C

Transporting Transporting
waste to RDF to cement
plant facility plant

Waste processing facilities

Managing Risk at Kiln:
• Waste processing
• Emission
• Storing
Manage
• Recyclables • Production
Residue and
Leachate
Treatment

Regency government
SBI - MSW to RDF
Business Model and cooperation are developed to develop Cilacap’s
ability in operating the facility of RDF (Old Version – Tipping Fee)
Initiation Phase Operational Phase
1st - 5th Year Year 6th and next

X
IDR IDR
Suhu dalam tanur
RDF Plant Cement Factory RDF Plant >1.800°C
RDF Off Taker

PP 50 Region Government
Mecanism 2007 Bidding Process Owned Company
1st offering to SBI

Cilacap
Owner Region Government Private
Dinas Lingkungan
Owned Company
Hidup

UPT Region Government

Management Jeruk Legi, Private
Owned Company
DLH Cilacap

Region Government
Operator Owned Company
Private

Tipping Fee for • Tipping Fee + Replacement of

Income Subtitution Benefit
Operator • RDF Selling Price Energy cost
•

Operator Service cost • Investment on New

OPEX + • Buying RDF
Cost from : Feeding Facility for • OPEX
RDF Maintenance Cost
Tipping Fee
• Operasional
RDF Project Jeruk Legi - Cilacap Plant © 2020
Business Model and cooperation are developed to develop Cilacap’s
ability in operating the facility of RDF (New Version – Sharing Cost)
Initiation Phase Operational Phase
1st - 5th Year Year 6th and next
IDR
300.000 IDR
Suhu dalam tanur
RDF Plant Cement Factory RDF Plant >1.800°C
RDF Off Taker

PP 50 Appointed since SBI Region Government

Mecanism 2007 is a part of State Owned Company
1st offering to SBI
Owned Company

Cilacap
Owner Region Government Private
Dinas Lingkungan
Owned Company
Hidup

UPT Region Government

Management Jeruk Legi, Private
Owned Company
DLH CIlacap

Region Government
Operator Owned Company
Private

Sharing Cost
Between Operator & Subtitution Benefit • Tipping Fee ? + Replacement of
Income • RDF Selling Price Energy cost
DLH Cilacap
•

• Investment on New • Buying RDF

Cost OPEX include Feeding Facility for OPEX +
Maintenance Maintenance Cost • OPEX
RDF
• Operasional
RDF Project Jeruk Legi - Cilacap Plant © 2020
Sharing Cost Model Based on latest agreement with Pemda
Cilacap

SBI - MSW to RDF

Cooperation Agreement SBI & Cilacap Regency on RDF Facility Operation, 19 June
2020  Significant SDG (Circular Economy) Milestone Even During Pandemic

This RDF (Refuse-Derived Fuel) Plant is able to process at least 120 tons per day of the MSW
(Municipal Solid Waste). The product of RDF can substitute coal consumption partly in the
cement plant. This project is certainly an alternative solution in overcoming waste problems not
only in Cilacap Regency but also in other Indonesia cities. The RDF project is supported by the
Ministry of Environment and Forestry, Ministry of Public Works and Public Housing, Central Java
Province, the Kingdom of Denmark. With this signing ceremony, now the RDF Plant ready to
commence with the full operation.

SBI - MSW to RDF

18