uk waste sector market opportunities
DESCRIPTION
This presentation from Resource Efficiency and Waste Management 2013 highlights the key issues from i2i’s sector report ‘Resource Efficiency & Waste Management Market Opportunity’ as well as Professor Adam Read’s personal observations. The report, researched and authored by Ricardo-AEA, combines data, expertise and research collated from leading experts in the field, providing; • A detailed overview of the UK waste management sector • Insights into future European waste policy • Updates on UK waste policies • Market opportunities in infrastructure, transport, re-use, the circular economy • Viewpoints from the public & private sectorsTRANSCRIPT
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Ricardo-AEA
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RWM 2013: 10th to 12th September 2013 @ NEC
Dr Adam Read
Practice Director – Waste Management & Resource Efficiency
UK Waste Sector Market Opportunities
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A personal welcome
• Prof. Adam Read
– Practice Director @ AEA for Waste Management & Resource Efficiency
– 19 years of operational expertise
– 90 consultants (UK)
– Former Local Authority Recycling Officer (RB Kensington & Chelsea)
– Former Academic & University Researcher
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• Introduction
• Introducing Ricardo-AEA
• European Waste Policy
• UK Waste Policy
• Waste Market Opportunities
• Waste to Energy Opportunities
• UK Waste Infrastructure needs
• The Future?
• Question time
Presentation Overview
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• i2i wanted a ‘Resource Efficiency & Waste
Management Market Opportunity’ report
• The report combines data, expertise and
research collated from leading experts in the
field, providing;
– A detailed overview of the UK waste
management sector
– Insights into future European waste policy
– Updates on UK waste policies
– Market opportunities in infrastructure,
transport, re-use, the circular economy
– Viewpoints from the public & private
sectors
• This presentation highlights these issues,
plus some of my own observations!
Introduction
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Introducing Ricardo-AEA
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My sponsor: www.ricardo-aea.com
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Our Key Sectors
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• Over 90 dedicated & technical staff
– Public sector policy development
– Strategy & options appraisal
– Waste modelling & LCA studies
– WRATE and carbon assessments
– Market research & analysis
– Service reviews, development & roll-out
– Procurement technical advisor / reviewer
– Bid manager / facilitator
– Technology assessment (all types)
– Permitting and EIA
– Technical due diligence / Expert witness
– Independent certification /
Commissioning
– Communications & Marketing
Our Waste Management Services
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European Waste Policy
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Policy Drivers
• Despite the economic downturn, the overall waste
management market has seen significant activity
• Driven by:
– the EU Directives (Landfill & Waste Framework)
– the Landfill Tax escalator
– rising values of materials
– recognition of the role of resource efficiency; and
the circular economy”
• Revised EU Waste Framework Directive
– brought the waste hierarchy to the forefront of
waste policy
– set a target for 50% preparation for re-use /
recycling HH waste for all Member States by 2020
• Landfill Directive
– all about diverting biodegradable
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UK Waste Policy
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• UK interpretation of the EC Directives is evidenced in national
waste strategies
– England, Scotland, Wales and Northern Ireland
• Each National Strategy
– outline long-term ambitions for waste
– supports separate collections
• Plus
– 3rd phase of Courtauld Commitment,
– WRAP Hospitality & Food Service Agreement
– Towards zero waste in different business sectors
– Code of Practice for materials recovery facilities
– End Destinations of Recycling Charter
UK Waste Policy
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Waste Market Opportunities
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• UK Trade & Investment Report
• The value of goods and services produced by the sector in
2010/11 was over £12 billion
• The sector employs about 150,000 people
– up 8.2% in the last 12 months
• The recycling sector generates more than £10bn in sales
– employs 30,000 people and generates £3bn in gross value added!!
– expected to expand, with the UK Treasury forecasting growth of 3.1%
for waste management by 2014
– 4% in recovery and recycling in 2013/14
• Expectation on the sector to make a major contribution to the
Government’s green growth agenda!
The UK Market
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“We are likely to see waste management companies
consolidate over the coming years, there will be fewer
acquisitions and more emphasis on becoming a ‘good
collector’ or a ‘good processor’ rather than a ‘we can
provide any service you want’ type of approach”
UK Waste Market: Who are the players?
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• Innovative collection systems to preserve the quality of materials
– organics, paper, plastics, glass, textiles etc.
• Obtaining value from recyclate
– reprocessing & remanufacturing
• Efficient treatment of residual waste as an energy source
– AD, EfW, ATT
• Residual waste refuse derived fuel (RDF) and solid recovered fuel
(SRF) production & export
– satisfy countries with excess thermal treatment capacity
– over 1.9 million tonnes are permitted for export by the Environment
Agency
• Delivery of shorter-term local authority contracts
– based on specific waste streams across municipal and commercial
sectors (WEEE)
Market Opportunities: Muncipal
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• A shift from linear to circular
business models
• Repairing and refurbishing items for
re-use
• A circular economy has the potential
by 2020 to increase the UK‘s net
exports by more than £20bn
– and create 10,000 new jobs in the
recycling sector alone
– whilst businesses could reduce their
costs by more than £50bn/year!
Market Opportunities: Closed Loops
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Market Opportunities: Recycling
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• Vehicle innovations (design, operation etc.)
Market Opportunities: Collection
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• Containerisation
Market Opportunities: Collection
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• Communications
Market Opportunities: Collection
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• £5bn worth of recyclables went overseas for energy recovery and
reprocessing last year…. Scope for UK investment?
It’s all about materials….
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Good Quality?
Good quality? Bad quality?
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• A key component in developing the UK market will be the MRF
protocol
– increasingly important in providing quality raw materials to industry
Market Opportunities: Quality Materials
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Waste to Energy Market Opportunities
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“There is a place for energy recovery in our portfolio of waste
treatment options. Gasification and Pyrolysis are simply two ways
of turning waste into energy”
• Investment in renewable energy and alternative technologies for the
treatment of waste has increased
– will continue to do so to meet EC / UK targets
• Green Investment Bank
– accelerating the UK’s transition to a green economy through
investment in the resource efficiency and waste management
– considering investing £50 million of its own debt financing in AD
projects
• Renewables Sector will need to be funded through equity markets
UK Waste Market: Waste to Energy
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New EfW infrastructure coming on line
Source: Ricardo-AEA FALCON dynamic waste map & database
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• The UK exported 890,000 tonnes
of refuse derived fuel and solid
recovered fuel (SRF/RDF) in 2012
• Gate fees for SRF reported to be
as low as Eu30/tonne in Northern
Europe
– Makes financial sense to export
waste
– Will continue to do so until attractive
price levels can be delivered by new
infrastructure
– Need to build new UK based
infrastructure
Market Opportunities: SRF/RDF
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• Landfill mining
– recovering resources
– freeing-up ‘void’….
– generating energy
Market Opportunities: Disposal
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Building solar parks closed landfill sites (Viridor have done this!)
Market Opportunities: Disposal
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UK Waste Infrastructure Needs
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• A major market opportunity is the
identification and development of
sorting and reprocessing facilities to
assist with ‘closing the loop’ in the UK
• Since last year’s RWM event
– 25 new waste processing facilities
have become operational
– Processing up to 2.2 million tpa of
residual, organic & recyclable
materials
– 4.9 million tpa of processing capacity
is under construction (see map)
• We remain under capacity in the UK
– So more facilities as we move
beyond EU targets!
UK Waste Market: Infrastructure
Source: Ricardo-AEA FALCON dynamic
waste map & database
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The Future?
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Investment opportunities ……
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Investment opportunities …..
• Eco parks harnessing energy
– Manufacturers located around materials delivered, creating jobs, etc.
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Investment Opportunities ….
• Recycling Rare Earth Elements (REE) Presents
Challenges
– there is no standard method of recycling rare earths
– research and investment needed!
• Plan B?
– groups are looking to find ways to avoid using REEs
– Automotive manufacturers are looking to break free
of their dependence on neodymium and lanthanum
– Philips and other electronics manufacturers are
looking for alternatives to yttrium and other rare
earths in LEDs and other products
• Collection & Segregation opportunities?
• Reprocessing needs?
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• UK market remains buoyant = £12 billion per annum
– BUT additional £8 billion needed in new infrastructure to meet EU
targets by 2020!!
• Employment has risen by 8 in the last 12 months
• Key growth areas
– collections, recycling, reprocessing, energy recovery
– new technologies… ATT, Gasification, Pyrolysis etc.
• Critical sector to meeting UK Government’s renewable agenda
• Market is governed by EU / UK rules & regulations
• Need to understand local circumstances if you want to enter the
market
– FCC, Urbaser etc. have invested time, money & people!
– Good partners are key!!
Looking Forward
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• My team are here to help
• Please come and share your opinions …..
Visit us on Stand 06M38
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Good Morning!
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• I am here all conference
– come and see me….
• Dr Adam Read
• Global Practice Director
• Waste Management & Resource
Efficiency
• Ricardo-AEA
• 07968 707 239
• www.ricardo-aea.com
The last slide … I promise!