The Discarded Materials Economy-Whither the South East in 2020?

23rd June 2011

Peter Jones, OBEecolateraljones@btinternet.com

GEOPOLITICAL DRIVERSGEOPOLITICAL DRIVERS6 6 bnbn to 9bn populationto 9bn populationThe EU population added to global The EU population added to global middle class every year (300 million)middle class every year (300 million)Peak oil and embedded energy costsPeak oil and embedded energy costsMigrationMigrationTrade in Trade in recyclatesrecyclatesUK Government tax yieldsUK Government tax yields--income income and consumptionand consumptionClimate chaosClimate chaosSolutions driven eco skillsSolutions driven eco skills

KEY SECTORAL DRIVERSKEY SECTORAL DRIVERSEnd of PFI support End of PFI support Private Balance Sheets to Private Balance Sheets to take the straintake the strainCarbon taxationCarbon taxationResource Efficiency AgendaResource Efficiency AgendaGlobal Warming ImpactsGlobal Warming Impacts

Electricity Market ReformElectricity Market ReformEconomics of JobsEconomics of JobsEU Producer Responsibility EU Producer Responsibility Energy SecurityEnergy SecurityTransfer of Value and profit Transfer of Value and profit from from gatefeesgatefees to outputs.to outputs.

55

Every day Britain throws awayEvery day Britain throws away

Source: WRAP & The Independent

1.6 MBananas

5,500Chickens 5.1 M

Potatoes1.3 M

Yoghurts

220,000Loaves of Bread

660,000Eggs

1.2 MSausages

UK Landfill Inputs Collapse UK Landfill Inputs Collapse

-200

-150

-100

-50

0

50

100

150

200

Tax by 2010

Landfill TaxLandfill Gate Fee

Transport to Landfill

Recycling Logistics(glass/paper/metals/card/news/compost)

PlasticsRecovery

CompostCard Paper

Metals

Plastics

COST

INCOME

zero

1 tonne bale of waste floc

The Resources HierarchyThe Resources Hierarchy

Compost/fertiliser Compost/fertiliser soil fuelssoil fuelsRecycling into new Recycling into new MaterialsMaterialsPyrolysisPyrolysis to Carbonto CarbonAnaerobic Anaerobic DigestionDigestionGasification/steam Gasification/steam turbineturbineGasification/internGasification/intern al combustional combustionGasification/hydroGasification/hydro gen/fuel cellsgen/fuel cells

Value by Financial and Fossil Carbon Tradeoffs

99

Materials Recovery Facility Materials Recovery Facility (MRF)(MRF)

A MRF is a facility at which components of A MRF is a facility at which components of a mixed waste stream are extracted by the a mixed waste stream are extracted by the use of mechanical separation techniquesuse of mechanical separation techniquesRevenue generated from Revenue generated from sale of recovered itemssale of recovered items

Land Requirements 0.8 – 2 Ha

Capital Costs £200,000 - £40 million depending on operation complexity

Operating Costs £30 - £55 per tonne treated

Staff Levels 15 – 85 depending on complexity

1010

Anaerobic digestion (AD)Anaerobic digestion (AD)Anaerobic digestion (AD) is a method Anaerobic digestion (AD) is a method of waste treatment that produces a of waste treatment that produces a gas with high methane content from gas with high methane content from organic materials.organic materials.The methane can be used to produce The methane can be used to produce heat, electricity, or a combination of heat, electricity, or a combination of the two.the two.

Land Requirements Estimated at 1 sq ft per tonne processed.

Capital Costs £10m - £29m for 60,000 tpa plant

Operating Costs £28 per tonne processed

Staff Levels Dependent on unit size

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SRFSRF…….Solid Recovered Feedstock.Solid Recovered Feedstock

SRF is a generic term for an SRF is a generic term for an integration of several quality integration of several quality management operationsmanagement operationsSRF stabilises and separates waste SRF stabilises and separates waste more beneficial outputs by more beneficial outputs by size,CVsize,CV and and moisture level for further processing.moisture level for further processing.

Land Requirements

0.9 – 2 Ha for small facilities

3 – 4 Ha for large facilities

Capital Costs £9 – 30 million for 60,000 tpa plant

Operating Costs £37.5 per tonne average

Staff Levels Size and Technology Dependent

Market Led Decisions in Scrap Market Led Decisions in Scrap ResourcesResources

2010 UK Energy Market 2010 UK Energy Market ££108 Billion 108 Billion as as electricity,gas,heatelectricity,gas,heat & transport & transport fuelsfuels2010 Recycling market 2010 Recycling market ££1 billion for 1 billion for 15 15 --20 million tonnes20 million tonnesComposting soils market Composting soils market ££0.1 billion 0.1 billion for 4 million for 4 million testes

The Lights Go Out???The Lights Go Out???

Source: DTI

Energy Price TrendsEnergy Price TrendsSecurity of SupplySecurity of SupplyAgeing infrastructureAgeing infrastructureEMREMRSelect Committee responseSelect Committee responseFukushima Fukushima Review of floor carbon price Review of floor carbon price Energy reduction delivery vagueEnergy reduction delivery vagueCarbon Reduction Commitment on Carbon Reduction Commitment on Large users 2013Large users 2013

The UKThe UK’’s Energy Profiles Energy Profile45 million tonnes C &I plus45 million tonnes C &I plus24 m 24 m testes. household. household..of which 35..of which 35-- 45 million tonnes 45 million tonnes carbon based currently carbon based currently landfilledlandfilled, , recycled or combustedrecycled or combusted= 3 to 5 = 3 to 5 GwEGwE plus 4 plus 4 GwHGwH as CHPas CHP

70 million 70 million testes Gas consumedGas consumed60 million 60 million testes coal net importedcoal net imported--usedused

GAPS in the WASTE REVIEWGAPS in the WASTE REVIEWMaterial Flow TrackingMaterial Flow TrackingMaterial resources StandardsMaterial resources StandardsProducer ResponsibilityProducer ResponsibilityScotland & Carbon EvaluationScotland & Carbon EvaluationEnergy LinkageEnergy LinkageWater LinkageWater Linkage

SPATIALS for PLANNERSSPATIALS for PLANNERS200 landfills @ 20 hectares=4000 ha200 landfills @ 20 hectares=4000 ha1500 Resource Parks @ 10 hectares 1500 Resource Parks @ 10 hectares = 15,000 ha.= 15,000 ha.60 million tonnes consumed, 60 60 million tonnes consumed, 60 million tonnes disposedmillion tonnes disposedWhat is built now is not necessarily What is built now is not necessarily that which is viable 2015 plus.that which is viable 2015 plus.

Resource Super CentresResource Super CentresCHP 2CHP 2--25 25 MwEMwELogistics depotLogistics depotRecyclateRecyclate warehousewarehouseEnclosed compostingEnclosed compostingAdjacent reprocessing and Adjacent reprocessing and remanufactureremanufacture

Overall location maps for each waste Overall location maps for each waste technology technology -- OrganicsOrganics

London’s waste sites

New Thinking in WasteNew Thinking in WasteDefine the fossil energy Define the fossil energy sinkssinksThat defines the energy That defines the energy needneedThat defines the technologyThat defines the technologyThat defines the That defines the ‘‘fuelfuel’’ mixmixThat defines the logisticsThat defines the logisticsThat defines the collection That defines the collection disciplinediscipline

Raw sludge

Water today

water tomorrow

t…

What are What are ““GoodGood”” Fossil Fossil Substitution Sinks?Substitution Sinks?

Food Food ––freezing,preparation+retailfreezing,preparation+retailDiversified industrial estatesDiversified industrial estatesHospitalsHospitalsPrisonsPrisonsBus and truck complexesBus and truck complexesDocks and Airports and DistributionDocks and Airports and DistributionData centresData centresEnergy distribution pipes and wiresEnergy distribution pipes and wiresConfectionery factoriesConfectionery factoriesSewage plantsSewage plantsRoad fuel distribution depotsRoad fuel distribution depotsIndustrial gases operationsIndustrial gases operations

Who are the Gas to Grid Group?Who are the Gas to Grid Group?Derived from the West Midlands Spatial Derived from the West Midlands Spatial Strategy Group 2010Strategy Group 2010

Initiated May 2010 & Initiated May 2010 & tansferredtansferred to WRAP on to WRAP on demise of West demise of West MidsMids RDARDA

Top 6 Waste Management CompaniesTop 6 Waste Management Companies

Top 6 Energy and Network Power Top 6 Energy and Network Power providersLocalprovidersLocal GovernmentGovernment

ConsultantsConsultants

Advanced Anaerobic Digestion

Water today, water tomorrow

OBJECTIVES of the GTG OBJECTIVES of the GTG GroupGroup

A one stop shop synopsis of the key issues A one stop shop synopsis of the key issues , , contextingcontexting the realistic potential of the realistic potential of ““renewable gasrenewable gas”” against the current gas against the current gas and broader energy marketand broader energy marketProvide a newcomers overview in terms of Provide a newcomers overview in terms of the technological , economic and socio the technological , economic and socio political considerationspolitical considerationsProduce a Report Summer 2011Produce a Report Summer 2011Accelerate market developmentAccelerate market developmentIdentify key blockages & Identify key blockages & ““ownersowners””

Banned in 1998

Overview

Sludge disposal routes 2008-09 –

England and Wales

0%

62%19%

10%

3%

1%2% 3%

Farmland Untreated

Farmland Conventional

Farmland Advanced

Incineration

Landfill

Composted

Land Reclamation

Other

Water today, water tomorrow

Not all sludge is digested

Concerns over landbank

(1)

Water today, water tomorrow

Restrictions on Restrictions on how much and how much and when you can when you can spread it (Nitrate spread it (Nitrate Vulnerable Zones Vulnerable Zones -- NVZ)NVZ)UpUp--coming EU coming EU regulations regulations (reducing metal (reducing metal levels in soils)levels in soils)

…….but why stop there?.but why stop there?

The Gas grid can deliver green The Gas grid can deliver green thermstherms to the domestic boilerto the domestic boilerNo diggingNo diggingReduced transmission lossesReduced transmission lossesNot specific to anaerobic digestionNot specific to anaerobic digestionOpportunities for gasification generallyOpportunities for gasification generallyLarge scale food chain coLarge scale food chain co--locationlocationReduced Carbon FootprintReduced Carbon Footprint

Last One Standing?Last One Standing?Around 1200 sites for 60 million Around 1200 sites for 60 million tonnes annuallytonnes annuallyLowest Carbon FootprintLowest Carbon FootprintHighest Highest GjGj energetic conversion energetic conversion equivalenceequivalenceMost valuable exit productMost valuable exit product= Highest bidder for feedstock.= Highest bidder for feedstock.

3434

Why is this important?Why is this important?

Up to 48 Up to 48 tpdtpd pilot facility in pilot facility in Madison, Pennsylvania, USAMadison, Pennsylvania, USA

Completed over 100 pilot tests Completed over 100 pilot tests to provide baseline informationto provide baseline information

State of the art, realState of the art, real--time gas time gas composition monitoringcomposition monitoring

Predictive modeling capability Predictive modeling capability through VMG simulation through VMG simulation software, including balance of software, including balance of plantplant

Capability to test almost any Capability to test almost any feedstockfeedstock

Can produce particulate free, Can produce particulate free, tar free tar free syngassyngas

Integrated with Integrated with CoskataCoskata biorefinerybiorefinery

5X24 Operation5X24 Operation 35

COMMERCIAL DEMONSTRATION FACILITY

Source: Labour Market Trends & UK National Accounts (The Blue Book)

Costs for Producer Costs for Producer ResponsibilityResponsibility

Cos

t as

valu

e %

reta

il su

ppor

t

Thousand tonnes output

50

20

10

5

250 500 1,000 2,000 8,000

Glass containers

Paper & board

CarsPlastics

Tyres

Fridges

Brown goods

Why is there an Investment Hiatus Why is there an Investment Hiatus in Waste?in Waste?

Innovation Risk comprises those onInnovation Risk comprises those on--………………Feedstock supplyFeedstock supply………………Site and LandSite and Land………………TechnologyTechnology…………..Exit markets for output..Exit markets for output…………..Funding ..Funding THERE IS NO THERE IS NO PLcPLc with a singular with a singular

approach to these risks!approach to these risks!

New Alliances in Carbon New Alliances in Carbon EfficiencyEfficiency

Solutions &

ESCOs

• Technology Skills• Grid Backup• Grid Inputs• Regulatory Risk• Infrastructure

Energy Suppliers

• Contracts• Locations• Economic Role

in Communities• Carbon CSR

Agenda• Forward Price

Uncertainty

Electrical & Heat Users

• Rising Gate Fees• Process Technology• Conditioning Technology• Supply Chain• Strong Balance Sheets

Waste & Resource Logistics

Technology Suppliers

Forward IssuesForward IssuesLinking Waste , energy, property and Linking Waste , energy, property and technology single wire or grid injection technology single wire or grid injection entitiesentitiesA coherent Planning approachA coherent Planning approachStrong NGO Support & transparencyStrong NGO Support & transparencyStandards of feedstockStandards of feedstockCarbon protocolsCarbon protocolsContext of other marketsContext of other markets--hydrogenhydrogenThe The ““spark gapspark gap””

Peter T. Jones OBEPeter T. Jones OBEecolateraljones@btinternet.comecolateraljones@btinternet.com