Thailand relies heavily on the burning of fossil fuels to supply electricity to its population and industries. In addition, cement production is a highly emissions-intensive activity, estimated to account for 5% of total man-made CO2 emissions globally.

This project involves the modification of five cement manufacturing plants, which previously burned a mix of fossil fuels to operate, to largely replace this with renewable biomass, such as rice husks, wood processing residues and other agricultural waste.

Cement production is a foundational component of the construction industry worldwide, but unfortunately, it does not perform well on the sustainability front, so significant R&D and investment is required to shift this industry to more sustainable practices to help in the reduction of global emissions. 

This project provides a genuine financial alternative to fossil fuels, enabling a shift to more sustainable production methods, all while benefitting the local community. 

Siam Cement Group was the first company in Thailand to adopt a new approach to become more sustainable, with the additional revenue from the sale of carbon credits funding the substantial costs associated with modifying existing plants, establishing new supply chains and overcoming various technology risks and barriers.

• Over 600,000t C02 emissions avoided per year
• Enables a circular ‘waste’ economy - reusing rice husks for fuel rather than leaving them to decay which produces methane emissions and the fine particles can also lead to respiratory problems.
• Creates supply chains and manufacturing processes for renewable biomass fuels, increasing their availability for local use.
• Local job creation & additional income for farmers

The project has also funded and implemented a range of social and environmental programs to the benefit of communities in the areas around the cement factories, including:

• Building over 6,500 check dams for upstream forest conservation
• Providing school scholarships
• Operating a mobile health clinic, providing valuable access to healthcare for local residents
• Planting over 9,000 hectares of eucalyptus, improving soil quality and biodiversity in nearby forests

We have worked with the team at Pangolin Associates to help fund this project.

This project is verified by Verra VCS - an external audit body that certifies climate projects at scale. Verra develops and manages standards that are globally applicable and advance action across a wide range of sectors and activities.