Transcript Waste Management Presentation For

UKWIN AGM
The Changing Face of Waste and Resources in the
UK
21st March 2009
Peter Jones, OBE
[email protected]
Why are we Here?
• Regulatory and climate drivers
• Landfill uneconomic
• New technologies
• Market expectations
• Energy policy
= Opportunities
The Three Musketeers of Policy
Implementation
ECONOMICS
TECHNOLOGY
ATTITUDE
Waste in the UK
Source: DEFRA
Drivers in the Waste Resource Sector
(=Composition/Mix Impacts)
Waste
Minimisation
IPP
Energy
Integration
Composting
Recycling
Composition
Technology
Shifts
Change
Process
Change
Market
Change
Great Britain - Waste Sectors
Industrial &
commercial
collection
25%
Special/
hazardous
10%
Industrial &
commercial
landfill
40%
Municipal
25%
Total Value £8bn
(including taxes)
UK – Arisings by Sector 2008
Total arisings, 430
million tonnes
Estimated Total Annual Waste Arisings, By Sector
Total = 428 million tonnes
Agriculture
13%
20%
19%
Mining and Quarrying
Sewage Sludge
Dredged Spoils
Household
6%
7%
27%
8%
<1%
Comercial
Demolition and
Construction
Industrial
Source: DEFRA, Environment Agency, Water UK
Convergence in the Waste Industry
Market size £3bn
Top 5
16%
Market size £5bn/€8bn
Next 15
14%
DSOs
15%
Top 6
60%
Others
25%
Biffa
Sita
Veolia
WRG
Pennon
14%
12%
17%
11%
8%
Others
70%
Shanks
Leigh
Biffa
Cleanaway
UK Waste
1992
5%
3%
3%
3%
2%
Source: Biffa
2007
Arctic Ice Melts at Record Levels
This satellite image shows the Arctic sea ice
spread on September 21, 2005, when it dropped to
the lowest extent yet recorded. The yellow outline
indicates where the concentration of ice was as of
September 21, 1979.
Source: AFP
Stern Messages
• We are close to a tipping point
• New opportunities and growth
• Opportunities for UK
• Improved policies in
– Carbon pricing and technology efficiency
– Carbon measurement and Dataflow
– Removing blockages
• The global dimension
• Attitudes to discounting
The Support Maze
Climate Change Programme Route
Map
Kyoto Agreement
UK Climate Change Programme
Renewables
Obligation
Tradeable
Green Certificates
(ROC's)
Carbon Offsets
Tax on Energy
supplied to
Industry
(0.43p / kWh)
Flexible Mechanisms
Climate Change
Levy
Energy Efficiency
Fund
Voluntary Emission
Cap Agreements
Enhanced
Capital
Allowances
(£100m)
Joint
Implementation
Negotiated
Agreements
Emissions Trading
Domestic
Scheme
Emission
Cap
Carbon Trust
(£27m)
Renewable
Energy
(£13m)
Agriculture
Energy Crops
(£4m)
80% Discount
on CCL
Steelworks
Brickworks etc
% of £ 30m
fund
International
Scheme
Why is Landfill so “Cheap”?
Landfill Costs
Per Tonne
Labour &
Operations
Acquisition
& Aftercare
New Technology
Labour
Maintenance
Gross Margin
£12/Tonne
Margin & Cost Of Capital
£50/Tonne
Categorising Instruments
Hi
Price/
Quantitative
Drivers on
Supply of
Product or
Service
Virgin Input Taxes
Incineration
Directive Landfill Permits
Landfill Directive
Planning Consents
CCL
IPPC
Renewables Obligation
Abstraction Charges
Regulatory Fees
Lo
Licensing
Discharge Consents
Best Value
PFI
Recycling Credits
Producer Responsibility
VAT
Landfill Tax
Quantity/Price
Contract Conditions
Impacts on
WRAP
Demand for
Fuel Duty
Product or
Service
Timing the Landfill Transition 2007
Tonnes to Landfill
(millions)
£ Gate
Fee
100
100
90
90
80
80
70
70
60
60
50
50
?
40
40
30
30
20
20
10
10
1997
2000
2002
2004
2006
2008
2010
2012
The Yellow Brick Road
The Carbon Competitors
Form
Long term
- Handicaps
- Planning
Consents
- Taxes
- Better odds
elsewhere
Early
Faller
- Traded Permits
- Renewable targets
- Import dependency
on rivals
- Rising logistics costs
- High value prizes
- Improving technology
Expensive
Thoroughbred
Regular Winner
- Low value prizes - EU targets
- Staying power
- Energy trends
- Plenty of local
- High value prizes
runners
- Traded Permits
- Cheap setup
- Producer reuse
- Soils directive
- Low distribution costs
Stayer
Good Value
All Rounder
The Resource Balancing Act
Technology
Logistics
North
Destroy
or
Preserve
Scotland
Wales
North West
South East
Midlands
South West
From Waste to Product …
Plastics
Metals
Waste
Fibres
US Energy from Agricultural
Digestion
State
Year
Scale
Installed cost
£k
California
1982
1,650 sows
140
California
1986
550 sows
50
Virginia
1993
60 sows
60
Colorado
1999
5,000 sows
240
Connecticut
1997
600 milkers
300
Iowa
1999
5,000 sows
360
Minnesota
1999
1,000 milkers
200
Iowa
1999
2,800 hogs
160
Total US farm energy output = 1 million Mwh
Avoided methane = 4,800 tonnes
Avoided carbon equivalent = 27,500 tonnes
Source: US EPA
Tonnage/Cost Ratios
Mixed Waste
54
46
Capital OPTG
40
MW
SS
OPTG
44
Capital
OPTG &
Profit
Capital
25
Separated
50
76
Source
£ Per Tonne
75
Aerobic Digesters
94
100
0
10,000 TPA
Sales Value
Digestate
Methane
50,000 TPA
100,000 TPA
£0.6 – 0.3/tonne
£4.2 – 3.2/tonne
Source: Whyte & Perry, Enviros Canada, Biocycle
Tonnes
Bedfordia Biogen Plant, Milton
Ernest
Source: BIOGEN
Biffa-Leicester MHW Treatment
New cascade ball mill-Bursom
Willesden: A Typical Shredder
350,000 tpa vehicles and white goods & other light
iron
Licensed, paved and full drainage
Rail sidings and loading equipment
Weighbridges, offices and communications
Experienced management and data handling
Source: EMR
Source: Teg Environmental
Wanlip – Bio Filters
MBT in Action: Waste is Shredded at
Ecodeco’s Montanaso Plant in Italy
UK - Arisings by Sector 2003
Total arisings, 430
million tonnes
Estimated Total Annual Waste Arisings, By Sector
13%
20%
19%
Agriculture
Mining and Quarrying
Sewage Sludge
Dredged Spoils
Household
6%
27%
7%
8%
<1%
Commercial
Demolition and Construction
Industrial
Total = 428 million tonnes
Source: DEFRA, Environment Agency, Water UK
Central Bottling
Overview of tank system where digestion occurs
Biogas Plant
Biowaste
Pretreatment
Electricity
Anaerobic
Digestion
Biogas
CHP
Heat
Posttreatment
Biofertiliser
Source: Greenfinch
Flue Gases
Mixed Biowaste AD Plant in Sweden
Source: Greenfinch
Source: Greenfinch (October 2005)
Japanese Gasification Technologies
Kazusa, Japan, Nippon Steel,
2002, 60,000 tpa
Aomori, Japan, Ebara, 2001,
135,000 tpa (ASR)
Kawaguchi, Japan, Ebara TIFG,
Toyohashi, Japan, Mitsui R21,
2002, 125,000 tpa Source: Juniper
2002, 120,000 tpa
Gasification Plant – Isle of Wight
Marchwood EFW 165,000 tpa
Source: Veolia
Cement Plant
Source: Buxton Lime Industries (UK)
The Lights Go Out???
Source: DTI
1,600
Approval granted (MW)
1,400
1,200
1,000
LFG
EfW
Biomass
Hydro
Wind
800
600
400
200
———————————— R O designed ——
The RO – Effect on Diversity
Planning Applications
0
Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03
Source: REA
Meeting the Energy Challenge
200
5000 x 500kW CHP units
TWhr
+18% fuel economy for all cars
4 x 800 MW nuclear reactors
100
2500 x 500kW biomass CHP
5000 x 2MW wind turbines
200 million X 1m2 PV panels
1 Severn Barrage
10% transport biofuels
0
2006
2020
Each wedge = 17 TWh
Energy and Carbon Efficiency
Linkages
MOTIVATOR
A
Rate of
transition
B
Scale of
transition
C
Investment
in
transition
AUDIENCES
Renewable
producers
1
= trigger point
Existing
Domestic Commercial Government
producers consumers consumers
enactors
2
3
4
5
The Regional Route Map
• Define the energy sink
• That defines the energy need
• That defines the technology
• That defines the ‘fuel’ mix
• That defines the logistics
• That defines the collection discipline
Carbon Recycling
• Soils
• Materials
• Heat and steam
• Electricity
• Gas-methane-town gas-hydrogen
Changed Added Value in Waste
Today
+Collection fee
-Transport
-Landfill
A Living
2010
+/-Collection fee
-Transport
-Landfill
+Renewable energy
+LATS
+Product fee
+Tradeable Permits on products
+Producer Responsibility recharges
-Shipping and handling
?
New Alliances in Carbon Efficiency
Electrical &
Heat Users
Energy Suppliers
•
•
•
•
•
Technology Skills
Grid Backup
Grid Inputs
Regulatory Risk
Infrastructure
• Contracts
• Locations
• Economic Role
Solutions
&
ESCOs
in Communities
• Carbon CSR
Agenda
• Forward Price
Uncertainty
Technology
Suppliers
Waste & Resource
Logistics
•
•
•
•
•
Rising Gate Fees
Process Technology
Conditioning Technology
Supply Chain
Strong Balance Sheets
www.massbalance.org
www.bif
f a.co.uk