Sampangan Aerated Carboncrete Block

The first problem that we'd like to solve is housing poverty, which is a major issue in Indonesia. As of 2023, there is a backlog of 11.8 million houses, and the annual demand for 800,000 new houses remains unmet. As a result, millions of people do not have proper homes - 19.4 million living in substandard housing conditions such as slums and informal settlements. Indonesia is also prone to natural disasters, particularly earthquakes, which is a big contributing factor to homelessness. The 2022 earthquake alone destroyed 520,000 homes, leaving many people still homeless and displaced until today. 

Solution is urgently needed to provide suitable housing and disaster-resilient homes. However, this leads us to the second problem that we’d like to solve - construction’s contribution to climate change. The construction industry is a significant contributor to climate change, producing 39% of global carbon dioxide emissions. The production of concrete alone contributes to 8% of global carbon dioxide emissions. The production of one ton of cement can produce up to one ton of carbon dioxide emissions. A simple home built with concrete and bricks (the conventional materials used in Indonesian homes) can produce at least 28 metric tons of carbon dioxide emissions. 

We need a solution that addresses both the need for affordable and proper housing and the need to reduce the environmental impact of construction.

What if we can build better affordable homes while decarbonizing the housing construction?

Aerated concrete block is one of the most used staple for affordable housing in Indonesia due to its lightweight but relatively bigger size. Sampangan is introducing a better alternative to this - by converting mixed waste into sustainable raw materials for construction. 

Sampangan Aerated Carboncrete Block is made with activated carbon and liquid smoke as alternative ingredients to traditional concrete and foaming agent. The activated carbon and liquid smoke used in this carbon concrete are the products of waste processing from Sampangan’s proprietary technology called the Magic Box - a carbonization machine that converts all types of waste into new sustainable materials.

Sampangan activated carbon is created from biomass waste. Using it in concrete improves the properties of the concrete, such as:

• Increased compressive strength
• Increased tensile strength
• Increased durability
• Increased fire resistance
• Increased thermal resistance
• Reduces cement content by up to 60%
• Can help increase the adsorption of harmful gasses, limiting environmental pollution; Activated carbon reduces the content of NOx (nitrogen dioxide, nitrogen oxides) from pollution.
• Can help reduce the effect of radioactive elements and radon exhalation rate in concrete

Sampangan liquid smoke foaming agent is created from plastic waste. It is a sustainable foaming agent for aerated/lightweight concrete, which also eliminates the need for using machinery.

Combining activated carbon and liquid smoke foaming agent in concrete creates a better quality and sustainable alternative to the conventional aerated concrete blocks. The competitive advantage of Sampangan Aerated Carboncrete Blocks compared to conventional housing materials are:

• Better quality and technical specification
• More affordable due to using raw materials from waste processing (approximately up to 20% cheaper)
• Environmentally sustainable due to reduction of cement content and from using waste as resources

As of now, we have manufactured the first generation of Sampangan Aerated Carboncrete Blocks with the conventional size and shape of the common aerated concrete blocks. However, we are now developing a modular or knockdown design with lego and slot system to reduce mortar use and enable faster construction.

With the Sampangan Aerated Carboncrete Block, we aim to prioritize affordable housing projects in developing areas, serving the low-income segment, including rural and urban slum residents, and informal sector workers who are often underserved by conventional modern construction materials. 

By providing affordable material that does not compromise function and strength, these communities can have long-lasting homes that are more resilient against disasters. In the long term, it will help them re-allocate their resources to other essential needs. The block’s easy-to-assemble design means faster construction time, reducing labor costs. It also enables community participation in the building process since no specialized bricklaying skill is required. The block’s insulating properties will create a more comfortable indoor environment against the tropical heat, especially since the low income communities cannot afford air conditioning. Additionally, the blocks might also help to improve the air quality and health by adsorbing pollution. 

Eventually, we are also serving the world at scale by helping to decarbonize the housing construction through providing an environmentally sustainable construction material. 

We have a diverse group of professionals with a deep understanding of the communities and industry that we are serving. Our team lead and CPO, Hana Purnawarman, is an architect who has worked extensively with NGOs focused on housing solutions for low-income communities. Throughout her practice in Lombok (Indonesian island that had been hit by a major destructive earthquake), she also has been conducting research and development focused on designing earthquake resistant buildings and materials. 

Haraldi, our COO, is an affordable housing developer. He understands the intricacies of building affordable homes that meet the needs of low-income communities and also the government housing program. 

Dr. Ishenny (Chief Scientist) and Fauzal Rizki (CEO), are from Aceh, a region that was devastated by the 2004 tsunami. Their family was personally impacted by the disaster. The initial idea for our carbon concrete came from this experience, and we have since built two pilot houses in Aceh using our first generation carbon concrete blocks.

All of us within the founding team have direct experience with the communities and industry that we are serving. But to ensure that our solution meets the needs of those we are serving, we engage these communities quite extensively through research and consultations to understand their needs and preferences for housing materials and design. We have also connected with the Ministry of Public Works and Housing of Indonesia as well as NGOs such as Habitat for Humanity Indonesia and International to ensure that our solution is aligned with their priorities and initiatives.

That’s how we ended up with developing the carbon concrete into aerated blocks.

The core technology, the Magic Box, that enables us to process waste into construction material has been developed since 2015, before the formal incorporation of Sampangan company. Since then, we have distributed 19 Magic Boxes across Indonesia. The Magic Box technology is at the scale of 8/9 on the Technology Readiness Level. Our business model of selling raw materials from the product of our waste processing is already proven to be profitable. 

However, our circular use case development in the construction industry just started in 2021. Previously we have already conducted small-scale production of our carbon concrete into blocks and precast materials, and have built pilot houses and used them on our own factory buildings. They are not in the market yet, and this is what we are developing right now.

So technically, our technology is at the growth stage. However, our construction product is still at the prototype stage.

In construction segment: 32

We believe that Solve can support us in developing our construction product and segment in these 3 factors:

1. Technical

While we have conducted lab testing and developed different prototypes of our Aerated Carboncrete Blocks, we hope to connect with partners who can provide us with technical expertise and advice on 1) Improving our product on design and engineering aspect, and 2) Learning and optimizing the final product manufacturing process

2. Market

As our business model is product sales, we need support in reaching new markets and building partnerships with housing provider NGOs, affordable housing developers, and construction material companies. We hope to connect with partners who can help us expand our network and gain access to new markets, as well as develop and implement effective marketing and distribution strategies. 

3. Financial

As a startup, our financial resources to scale up production and reach more markets are limited. Any type or size of financial support, whether in the form of grant or connection with potential funders is always a great help towards our small and growing team who are working relentlessly to bring our solution to those who need it the most.

1. Created from waste

The current annual global waste generation is around 2 billion tons, and will only continue to increase. 90% of waste in developing countries like Indonesia end up in landfills, openly burned, or leaked into the environment. Sampangan’s innovation focuses on using waste as resources. For construction materials, we use activated carbon and liquid smoke from the products of our waste processing. As long as the world generates more waste than it can process, waste is an unlimited and growing resource that we are converting into construction materials. This also means that it can be manufactured anywhere, as waste is abundant in all parts of the world  

2. Aerated Carboncrete

Combining activated carbon and liquid smoke foaming agent in concrete produces lightweight yet stronger aerated concrete. Activated carbon improves the concrete's durability and strength, as well as reducing the required cement content. Liquid smoke foaming agent creates the porosity and foam structure that results in lighter concrete. By reducing the weight of the concrete without compromising strength, this offers a solution for affordable construction material. This also reduces the load on the building's structures, which can also help save construction costs and reduce environmental impact.

3. Modular/knockdown design

Currently we are developing a modular or knockdown design for the Aerated Carboncrete Blocks, using Lego and slot systems. This aims to reduce the amount of mortar used in walls, as well as increasing the speed of the building process. Designing blocks with interlocking features will potentially allow for disassembly as well, enabling the blocks to be reused in renovations and expansions. 

Our ambition is to be part of the solution to provide affordable housing in Indonesia by creating Aerated Carboncrete Blocks from waste, and removing carbon emission generated from waste. 

By 2024 (next year) we plan to be part of the solution to solve ~0.001% of Indonesia’s housing backlog, as well as prevent the emission of 2300 tons of CO2eq.

By 2027 (in 5 years) we plan to be part of the solution to solve 10% of Indonesia’s housing backlog, and prevent 5800 CO2eq generated yearly.

To achieve this goal, we plan to scale our operations significantly. We aim to process 1500 tons of waste annually in 2024 to 7500 tons of waste annually in 2027 while preventing 1200 tons of CO2eq emissions in 2023 to 5800 tons of CO2eq in 2027 from being released annually.

(In 2027) Operationally this would mean we'll be operating 5 facilities with average annual processing capacity of 1500 tons of waste, producing 105 tons of activated carbon annually per site that will be used in construction materials.

As we work on reducing housing poverty in Indonesia and decarbonizing the housing construction, we are measuring our progress toward our impact goals through these indicators:

1. Number of low-income families with access to affordable housing - We are tracking the number of low-income families who are able to access affordable housing through our solution. This aligns with UN SDG 1: No Poverty.
2. Reduction in carbon footprint - We are tracking the reduction in carbon emissions associated with our housing solutions. This includes emissions reductions during construction, operation, and end-of-life. This aligns with UN SDG 13: Climate Action.
3. Disaster-resilience of housing - We are measuring the disaster-resilience of our housing solutions by assessing their ability to withstand natural disasters, such as earthquakes. This helps us ensure that our solutions are safe and structurally sound. This aligns with UN SDG 11: Sustainable Cities and Communities.
4. Increase in the percentage of the urban poor who have access to proper housing - This indicator is focused on ensuring that our solutions are reaching the target population of low-income urban communities in Indonesia. By tracking this indicator, we can ensure that our efforts are having a measurable impact on reducing housing poverty (UN SDG 1).
5. Improvement in the overall health and well-being of low-income families who are living in sustainable and resilient housing - We will start to track the health and well-being outcomes associated with our housing solutions. This includes factors such as reduced exposure to air pollution and improved indoor air quality. By tracking these outcomes, we can ensure that our solutions are having a positive impact on the lives of low-income families.
6. Percentage increase in the use of sustainable and locally-sourced building materials in housing construction - We are committed to produce our Aerated Carboncrete Blocks from waste generated from the surrounding local area, and only set up production nearby our waste processing facilities to reduce carbon footprint impact from material transportation. This aligns with UD SDG 12: Responsible Consumption and Production.
7. Increase in the number of jobs created through sustainable housing construction - We believe that sustainable housing can also have a positive impact on local economies by creating jobs in sustainable construction. By tracking the number of jobs created through our solutions, we can ensure that we are contributing to the economic well-being of low-income urban communities.
8. Reduction in the number of informal settlements and slums in urban areas - Our ultimate goal is to eliminate housing poverty in Indonesia, and this includes reducing the number of informal settlements and slums in urban areas. By tracking the reduction in these types of housing, we can ensure that our solutions are giving a measurable impact on improving housing provision for the urban poor (UN SDG 10).

Our goal: to provide affordable housing materials while decarbonizing housing construction.

Our activities:

1. Produce Aerated Carboncrete Blocks from the product of waste processing.
2. Establish partnerships with construction material manufacturers to ensure quality materials and efficient operation.
3. Establish partnerships with housing NGOs, affordable housing developers, and Ministry of Public Works and Housing to reach target market and provide education on sustainable construction material.

Outcomes:

1. Using the product of processed waste means that we will be able to provide building materials with up to 20% less cost compared to other conventional materials, which will help reduce housing poverty.
2. Converting waste into construction materials means that we are directly reducing not only CO2 emission from unprocessed waste, but also reducing the carbon footprint of construction materials.
3. Our carbon based concrete reduces the cement content requirement, resulting in a reduced CO2 emission compared to conventional concrete.
4. Our carbon based concrete also provides housing material that is better quality and also more disaster resilient. 

Our solution is powered by The Magic Box, a waste processing technology invented by our Chief Scientist, Dr. Ishenny after 25 years of research in biochemical engineering. The Magic Box uses a thermal radiation system combining pyrolysis and gasification plus using proprietary biocatalyst to reduce energy requirement (down to equivalent of only 1 unit of AC) and has the capacity to process up to 10 tons of waste per day. Combining pyrolysis and gasification results in a better carbon conversion rate and eliminates toxic materials from the waste input. The process is then directed into the enzymatic hydrolyzed cyclone reactors to immediately react with the flue gas produced from the reactor with water and biocatalyst and transform it into liquid smoke and steam. This process emits minimal emissions and results in a significantly reduced carbon footprint compared to traditional waste processing methods. 

This technology converts all kinds of unsorted waste into raw materials such as activated carbon, liquid smoke, biofertilizer and fuel, which we use in downstream circular implementations such as sustainable construction materials, regenerative agriculture, and renewable energy.

Activated carbon and liquid smoke are a key component in our Aerated Concrete Block. Our core technology not only provides sustainable housing materials, but also creates a pathway to decarbonize the housing construction industry.

The Magic Box has been certified and audited by Indonesia’s Ministry of Environment and Forestry. The output products of the process have been certified and lab tested by various organizations such as SUCOFINDO and Bogor Institute of Agriculture.

Link: https://drive.google.com/drive/folders/1Ovx0ShZChjjV01NWvL3k5VqzKOaT3d6I

We believe that the core of any organization is the people, and diversity is very important to propel creativity and innovation in solving complex problems. Therefore, we make it very intentional to:

1. Have a diversity policy for hiring, we hire based on merits and competency according to the job needed, not based on race, religion, or gender. 
2. Have a welcoming culture in which everyone’s background is respected.
3. Provide support on diversity-related issues and needs
4. Have a policy on personal wellness and emotional health, where we provide counseling services on top of the health benefit package.

We have 2 business models:

1. Waste processing - we offer waste processing services to B2B and B2G. However this is not our main business model as we still do waste processing regardless of profitability.
2. Product sales - we sell the products from the result of our waste processing. This is our main business model, that is also already proven profitable. 

The reason why our business model focuses on product sales is because waste processing is not truly circular and sustainable unless we use the products in circular industries. The industry that we are focusing on to develop now is construction. 

We have gone through a series of iterations in the construction sector, from producing only raw materials to manufacturing the final product ourselves. We have found that our ideal business model is through:

1. Partnerships with blocks/bricks manufacturers to manufacture and sell the Aerated Carboncrete Blocks together. As of now we are not yet planning to manufacture the blocks on our own. But we have already built partnership pipelines with factories that can manufacture the blocks.
2. Supplying activated carbon and/or liquid smoke foaming agents to concrete block manufacturers. There have been quite a lot of interests from construction material manufacturers to buy our activated carbon and/or liquid smoke foaming agent for them to produce their own products. We are also open to collaborations on R&D and new product development.

Our business model focus is on raw materials supply, R&D, and market creation. We have potential partnerships and clients in the construction sector across South East Asia, specifically in Indonesia, Malaysia, Philippines, and Cambodia.

Our core business model, sales of products of waste processing, is already proven profitable. Right now we are developing our business model in construction specifically, which also follows our core business model of product sales.

Frankly speaking, this business model is conventional. But we are offering a higher quality and more affordable alternative to the conventional housing material staple, which is blocks and bricks. Due to the conventionality of our product shape and size (following the standard size and shape of the conventional concrete blocks), there should not be much adaptation needed by the customers. Thus it will be a matter of product manufacturing, as well as sales and marketing to the housing sector. 

As a company, we are already revenue generating. However in our specific construction sector, we have not yet started to serve the target market. Currently, aside from revenue, we have also been funded by grants and angel investors. Within this year, we are planning to start raising seed investment capital to develop and scale our construction sector.

Revenue up to date: within USD 500,000 range
Grants: USD 70,000

Pre-Seed Investment: cannot be disclosed publicly, but can be informed privately