CHANGING MINDSETS TO BUILD PARTNERSHIPS

From a world-first system to cut storage costs to innovative new uses for ash, Malaysian firm ACE GREENCEMT is driving change.

The term ‘game changer’ may be overused in industry, but in Malaysia there is a company that can genuinely claim to have altered attitudes to how fly ash is supplied and used in the South East Asian country.

ACE GREENCEMT, which was founded in 2010 by chairman Sukumar Kupusamy, revolutionised how coal-fired power plants deal with the ash they create.

It’s a strong market too – thanks to the continuing dominance of coal-fired power generation. More than 50% of the country’s energy capacity comes from coal, creating fresh fly ash and bottom ash, with the expectation that the situation will continue at least for another 25 to 30 years.

Sukumar said: “Prior to existence of ACE GREENCEMT, all the fly ash in Malaysia was either used to produce blended cements or left at the ash ponds. Bottom ash was always left behind at the ash ponds.

“So, the market was skewed towards ash going to cement companies, rather than being supplied to many different locations and uses.

“I came along and said to the power plants ‘let me to prove that our approach is a game changer’, and we manged to change their mindset.

“The birth of ACE GREENCEMT changed the rules of the game. As of now, no ashes are going to the ash ponds and majority of the coal ashes are being used directly by our customers at their ready-mix, precast or other construction sites.”

From its inception, the ACE group of companies embarked on a journey to innovate and establish unique business models that provided the competitive edge to play a key role in the construction and power industry.

The firm’s first breakthrough came in March 2010 with the founding ACE GREENCEMT VENTURE (M) SDN BHD, set up for the purpose of marketing and supply of Coal Ash to the construction industry. It is now the single largest collector and supplier of Coal Ash in Malaysia market, with approximately 55% volume share in Malaysia.

This market-leading position is backed by expertise that ensures end users get the complex design mixes they need to suit their different construction applications.

ACE’s Group CEO, Arian Haddadian, said: “From underground tunnels to high rise buildings, dams or highways, we provide clients with the right quality of coal ash needed and also support them throughout the project with technical support. We have different classes of coal ash in Malaysia, and based on the requirement of the projects we provide them with the right ones.”

Flexibility and efficiency also play a key role in ACE’s success. The company operates an innovative 24-hour mobile application and automated delivery system, which has helped power stations to not depend on silos as storage facilities, as ACE can collect all the ashes at any time required.

Arian said: “We believe we have managed to help the country’s power stations operate without the need for coal ash storage for the first time ever, silos nor ash ponds. We are pleased that the power stations see us as part of their own operations, and we value their trust.”

Beside Fly Ash and Bottom Ash, ACE also handles GGBFS and Raw Slag as well as Incinerator Fly Ash (IFA), Incinerator Bottom Ash (IBA) and Silica Fume under their cementitious products division. They also supply Natural Gypsum and Coal to cement and power plants from time to time.

The company also has experience with both incinerated fly/bottom ashes from waste to energy plants in Malaysia as well as volcanic ash, although their volcanic ash operation is in the Indonesian market, and not in Malaysia.

From the very start, innovation has been at the heart of ACE’s operation. In a country where ash was only used as an interground ingredient in pre-blended cement, ACE has introduced the site-blending of fly ash and bottom ash, the usage of bottom ash as fine aggregate and as cement replacement, as well as developing geopolymer concrete from fly ash as off-shore oil well cement.

The firm’s latest technology is a product called GreenLife, which is currently in a pilot programme. Made of up to 95% Fly Ash and Bottom Ash, it will be used to clean and purify dirty water and sediments.

Driving ACE’s ongoing success is Malaysia’s long-term commitment to using coal to power its growing economy.

Arian explained: “Malaysia is a tropical country and thanks to its tropical forests it has a low carbon footprint, so we can continue with coal power plants and still move towards a net carbon zero target, but with prior proper planning.

“There are eight coal power plants across Malaysia, which generate about 2.5 million tons of coal ash per annum.

“However, the government could consider to construct two more between 2031 to 2035, which have been listed in the Energy Commission’s Generation development plan.

“The fact is that Malaysia can source coal at a very cheap price, and the technology for a greener alternative is not there yet – options like solar, wind or hydrogen. Malaysia has no wind, we are not suitable for solar and hydrogen is too expensive.

“So, we have to choose gas or coal as it is a cost-effective option – and those cost savings can then be used to help meet net zero carbon ambitions.”

While moving towards using greener cements and sustainable construction methods is a hot topic in Malaysia and South East Asia, CO₂ emissions are not yet at the top of cement producers’ agendas.

Sukumar said: “Slowly but surely green concerns are coming more into conversations, but currently the buying behaviour of customers is still largely centred on the commercial benefits of ash use, such as cost savings and technical advantages.

“But at ACE GREENCEMT, our slogan has been “Nurturing a greener world” and we have made this our mission, vision and ambition.”

In Malaysia the import and export of coal ash is completely prohibited, but ACE believe that the country’s construction sector is a matured market which has both the technology and the demand to utilise all the ashes produced domestically.

However, ACE’s spirit of innovation and growth has ensured that they could still extend their business into exports – from outside Malaysia.

Arian explained: “From our perspective we don’t see export as an opportunity, because changes to the regulations would also allow import, and at the moment ACE are the major players with more than 50% in the market and we are also the only company to have access to all of the locations.

“But are we interested in international trade? Yes. We have already secured some source of fly ash from other Asian countries, which we are planning to export to US and European markets in the near future.”

After 13 years, Sukumar’s vision to recognise the potential in reinventing the Malaysian ash market has resulted in a unique position, where ACE GREENCEMT provides a trusted link between the producers of ash and the end users who enjoy its benefits.

Arian said: “In my personal opinion, the foresight of our chairman was the secret of our success. He saw the potential in coal ashes when no one realised it, when others in Malaysia just looked at coal ash as waste.

“Since then, we have been dedicated to serving our clients and the power stations as best as possible, always keeping them happy with great customer services, and by introducing the latest technology to this market.

“Our policy is to be a friend rather than a supplier or collector to both customers and power stations.”