MINISTRY OF NATURAL RESOURCES AND ECOLOGY FEDERAL SERVICE FOR SUPERVISION OF NATURAL RESOURSCES USE

Waste management in Russian Federation

Chief Vladimir Vladimirovich Kirillov

Belgium 28 October 2010

General situation in waste management • Currently, in the territory of the Russian Federation in waste dumps and stockpiles are accumulated more than 94 billion tons of solid waste • Over the past 5 years the total amount of waste produced in Russia increased by 1.5 times

Type of waste 54% 17% 16% 12% extraction of fuel and energy minerals non-ferrous metals other waste, including utilities ferrous metal

2

Assessment of volumes of MSW and secondary resources for several cities of Russia

City Population Volume of waste (t/year) Volume of SDW (t/year) Waste paper (t/year) Ferrous metal (t/year) PE (t/year) 2 625 3 935 1 311 000 307 026 220 336 10 N.Novgorod

Samara Omsk Rostov Ufa Volgograd Perm Ykaterinburg Kaluga Tver Total 1 158 100 1 133 900 1 070 200 1 047 600 1 012 800 1 100 000 1 293 000 334 750 408 900 10977250 271 218 265 550 250 632 245 340 237 190 257 611 302 810 78 396 95 761 2570285

Note: PE – polyethylene LPP – Low-pressure polyethylene HPP – high-pressure polyethylene

271 218 190 571 179 866 176 067 170 218 184 874 217311 56 261 68 723 1844916 9 269 9 075 8 565 8 384 8 106 8 804 10 2 679 3 273 87853 2319 2 270 2 143 2 097 2 028 2 202 2 589 670 819 21897 3 476 3 403 3 212 3 144 3 040 3 301 3 881 1 005 1 227 32945 LPP+ HPP (t/year) 4 320 3816 3 737 3 527 3 452 3 338 3 625 4 261 1 103 1 348 36175 Base metal (t/year) 551 Glass (t/year) 10 492 487 476 450 440 426 462 543 141 172 4612 9 269 9 075 8 565 8 384 8 106 8 804 10 348 2 679 3 273 87853

3

Disposal and utilization of MSW

5243 6000 5000 4000 3000 2000 1000 0 1699 MSW landfills 576 Industrial waste disposal facilities Illegal dumps 39 10 5 0 40 35 30 25 20 15 7 5 Incinerators Trash recycling plants Waste sorting complexes

4

The most widely used ways of storing and processing of MSW

1. Pre-sorting 2. Sanitary dirt fill 3. Incineratio n

5

The main economic benefits of pre-sorting

1.

Return of recycled materials in processing due to what saving of natural resources of oil, ferrous and nonferrous metals is made, which are irreplaceable natural resources, and also due to sorting it is possible to reduce the need of cellulose industry in wood raw material that has a direct environmental effect on conservation of forest lands. 2. As a result of the solid waste sorting and reuse of sorting products the volume of solid waste reaching the disposal of waste at landfills decreases, as the major sorted products are waste with long expansions (PE, HPP and other plastics), decrease of landfill reclamation and return of lands allocated for it to the utility take place.

3. Not a few important effect of reducing the volume of solid waste to be disposed of is to reduce the land needed for landfills for disposal of solid waste and allocation of these areas for agricultural use. 6

Household waste Landfill gas Sanitary dirt fill Landfilling Biogas energy complex 1 tons 100 m3 7

Germany

Incineration level of municipal solid waste in some countries

France Denmark 80% 20-40% Italy 10% England Japan 70% Austria Russia 2% Moscow 10% Belgium 48-50% Switzerland USA Sweden

8

Waste sorting systems in Russia

Voronezh St. Petersburg Belgorod Moscow Tolyatti Ufa Arkhangelsk Barnaul

9

Assessment of volumes of MSW and extracted secondary resources for several cities of Russia

71433 80000 70000 60000 50000 40000 30000 43293 64939 20000 10000 0 1731 Waste paper (t/year) Ferrous metal (t/year)

Note: PE – polyethylene LPP – Low-pressure polyethylene HPP – high-pressure polyethylene

PE (t/year) LPP+ HPP (t/year) 23811 Mix (t/year) 1731 Glass (t/year)

10

Forecasted annual gross revenue for some cities in Russia(euro)

6 000 000,00 5 000 000,00 4 000 000,00 3 000 000,00 2 000 000,00 1 000 000,00 0,00 5 154 822,09 912 833,08 МС-11 Ferrous metal 4 590 309,39 5 315 910,29 PE LPP+HPP 885 985,05 Mix 4 080 900,82 Glass

Note: MC – waste paper PE – polyethylene LPP – Low-pressure polyethylene HPP – high-pressure polyethylene 11

Cost of services for export of solid waste in some regions of Russia (euro)

№ City

1 2 3 4 5 6 7 Moscow St. Petersburg Voronezh Kursk Yaroslavl Ryazan Lipetsk

Rate / person / month

0,37 0,27 0,18 0,14 0,14 0,20 0,19

Rate / person / year

4,42 3,25 2,12 1,69 1,72 2,43 2,23

Population, person

10 101 500 4 668 400 848 700 412 600 613 200 521 700 506 000 12

Belgorod Pilot projects of Rosprirodnadzor in Kemerovo, Belgorod, Kirov and Kaluga Regions

Russian Federation

Kaluga region Kemerovo region Kirov region

13

Project purpose

Improvement of slum populated areas of municipalities of the Kemerovo, Belgorod, Kirov and Kaluga Regions Creation of a modern system of treatment of consumption waste, including transportation, sorting and disposal Involvement in recycling of useful components contained in the consumption waste 14

Project task

Modernization of appropriate enterprises of utilities complex in view of the developed complex system of treatment of consumption waste in population Establishment of sanitary epidemiological service meeting the current requirements of the order of operation of landfills for disposal of consumption waste and working conditions of staff Organization of design and construction of efficient waste sorting complex providing deep recycling of consumption waste 15

Payment by municipal enterprises of housing and utilities services for acceptance and disposal of solid waste

Source of incomes

Payment by business enterprises for acceptance and disposal of solid waste Income from sale of sorted secondary raw materials 16

Project risks

Marketing

•

Possible lack of regional municipal rates for acceptance and disposal of solid waste without the appropriate cost-based rates, which may affect the value of sales revenue

•

Less than taken in the project percentage of recycled output, which may be related to morphological composition of MSW of the specific regional project

Technological

Connected with possibility of increasing expenses and estimated cost of the project relating to implementation of regional projects. At this stage, the risk can be defined as the average because it mainly depends on the expenses connected with the preparatory work and arrangement of land

Legal

Connected with possibility of non-license or permit under the competence of regional authorities. This kind of risk can be estimated as low, cause in all pilot regions there are letters of the governors about the readiness of territories to participate in pilot projects 17

Effectiveness

1 2 3

№ п/п Subject Rights holder Purpose of the investment project Expectations Belgorod region, Kaluga region, Kemerovo region, Kirov region

Designing and building of block-modular plants of complex processing of MSW Transport company «Ekotrans ltd» Creation of complex system of processing of MSW by a principle of territorial zoning.

Capacity of each plant at two-shift work - 40 thousand tons of MSW a year, at three-replaceable – 60-70 thousand tons a year.

It will allow to process from 280 to 490 thousand tons of MSW a year. Application of innovative technologies increases selection of secondary raw materials to 30-35 %, division of the remained weight of a waste into 2-3 streams, processed depending on structure in boiler and furnace fuels, carbon, organo-bacterial fertilizer and-or biogas. Decrease volume of nonrecycled waste products in 5-7 times which provides landfills reduction and its negative influence on environment.

Designing and building of waste processing plants in synthetic fuel in accordance with euro standards EN 590 on technology "DiNaMo" (Thermolyne Process®) Building of fuel complexes based on deep plasma and hydrogenic processing of organic waste and also on effective processing of oil fractions together with units of selective hydroclearing, ozonizing, fractionization by disperse units to product motor oil in accordance with Euro -4 and Euro- 5 standards (fuel and diesel oil), and also building and road materials (f.e. heaters and cement).

Group of companies GRAS Scientific and engineering company «RUSEKOIL» Building non-polluting and competitive fuel complexes with reception of a highly profitable commercial output Capacity of each plant at two-shift work 80-87 tons a year that will allow to process about 600 thousand tons of MSW a year.

Application of Thermolyne Process, based on connection of well-known processes: thermal cleavage, gasifications, gas purification, Fischer Tropsch synthesis and cleavage in one industrial cycle on kerosene and diesel oil manufacture, allows to receive liquid oil. “Dinamo” works at atmospheric pressure in the closed cycle that excludes emissions in atmosphere hazardous substances (furan dioxins, СО, СО2). The initial raw materials can be in the firm or liquid form that provides joint loading of the mixed waste of different origin.

1. volume reduction of waste and emissions in atmosphere hazardous substances 2. Additional financial possibilities for realization of social and economic development program of municipalities with fiscals revenues in budgets of all levels.

3. Market saturation with high-quality production 4. involvement of labor 5. Effective use of scientific and industrial potential of Russia in entering foreign markets with products and equipment created within the framework of the project 18

Thank you for your attention!

18