waste water & sewage treatment expo 2017
TRANSCRIPT
• Graham Southall, Owner & Director, V2B Consulting• Matt Cuchra, Partner, KPMG
The importance of ongoing investment in the wastewater sector to guarantee service quality and ongoing improvement
Lee Horrocks, LCH Executive, British Water
AMP7 Procurement Strategies – How do SME’s move “UP” the Water Sector Value Chain?
Content
Who am I? My Sector Credibility…AMP6-Where are SME’s in the Sector?
Setting the Context…AMP7-Where the Sector needs SME’s to
Impact?What SME’s should be doing?
What “HELP” is available to SME’s?To Summarise…
Questions…
Who am I? – My Sector
Credibility…
Career highlights... .Clients worked for & with….
Lee Horrocks – MBA, BSC MechE, CEng, FIWEM
“Helping SME’s in the Infrastructure & Water Sectors”
. . .you provide the capability & capacity that makes the sector successful. BUT…
…whilst you are the foundation of the sector to date you have had the least influence and lowest returns…..
AMP6 -Where are SME’s in the
Sector?Influence Revenue
Innovation
Profit Manpower
Technology
Setting the Context. . .is the Regulator
saying?
...are the PLC’s saying?
“…I absolutely encourage the water companies to look to
get the sector Tier 2’s and SME
suppliers further up the value chain in
the delivery of AMP7…”
“…the Tier 2 and 3 suppliers bring the majority
of the innovation to the sector its essential we get more innovation into the
sector in AMP7. Therefore we must involve the supply
chain much more in our AMP7 delivery teams…”
Catherine Ross. CEO - OFWAT.Key note speech at the British Water Annual lunch June 2017…
Chris Loughlin. CEO - Pennon. Speaking on behalf of Water UK…
. . .is the Supply Chain saying? “…the supply chain
contributes substantially to the capability & capacity in the sector. However to date
this has not been truly recognised in terms of
status, influence, reward or contribution to innovation…”
Lloyd Martin. CEO - British Water. Speaking as the leading supply chain trade body in the water sector…“What…….
What SME’s should
be doing?
Research & develop a focused STRATEGY & PLAN
Select appropriate CLIENT[S]Identify appropriate PARTNER[S]
Be realistic about your CAPABILITY & CAPACITY
Decide on your AMP 7 RISK appetite?What will the risk profile be?
Is it real risk?Do you truly want to move up the value chain?
Pro-Actively talk to target client[s] & partner[s]. MARKET yourself and your contribution to
AMP 7At a higher level – Where the door is open!
About the innovation you have already deliveredAbout what innovation is coming – BE BOLD
About what savings can be realised – BE VERY BOLDAbout what are you TRULY looking for in AMP 7
Recognition?Appropriate Influence?
Fair & Reasonable reward for your contributions?Other?
“HELP” is available to SME’s?From the;
SUPPLY CHAIN Associations. They know the sector and a lot of the key
people in it…
From the;WATER PLC’s Association. Its board has the CEO’s on it who are driving the need for Innovation from the
SME’s
From the;TIER 1 Contractor & Consultants Association’s. Who are recognising
that to WIN they MUST include SME’s in their AMP 7 teams…
From individuals & consultants who want the SME’s to achieve the success they deserve...
To Summarise…YOU the Supply Chain are the FOUNDATION of the sector…
To date your contribution has been UNDERVALUED….….to an extent you have LET it be that way
AMP 7 will be the catalyst for changeThe sector masters are driving that CHANGE
You have a REAL opportunity to realise much more than beforeYou should PLAN your strategy NOW
Be REALISTIC & PRAGMATIC [there is enough work for us all]You have a short window to BE SEEN to want to step up
HELP is available you only have to ASK
…and REMEMBER…
LCH Executive Ltd“Helping SME’s in the Infrastructure & Water
Sectors”
07817 268621
AMP7 Procurement StrategiesHow do SME’s move “UP” the Water Sector Value Chain?
Questions…….?
• Izabela Kasak, Energy Optimisation Engineer, Anglian Water• Dr Abraham Negaresh, Senior Process Engineer, WRC• Lorenzo Menin, Engineer, WRC
Maximising water reuse and acknowledging the role of treated wastewater reuse as an alternative source of water supply
• Prof Bruce Jefferson, Professor of Water Engineering, Cranfield Water Science Institute• Dr Cesar Mota, Professor Adjunto, Universidade Federal de Minas Gerais, Brazil• Dr Kees Roest, Senior Scientific Researcher, KWR Watercycle Research Institute• Chris Woods, Head of Food & Beverage, Nijhuis H2OK
Evaluating the benefits of technology and innovation for both the water industry and its customers
www.cranfield.ac.uk
Sewage works of the futureEnsuring the innovation and evolution is
customer centricIncorporating new approaches to waste water
management and sewage treatmentBiogas production from wastewater treatment
Is it time to rethink our approach
Wastewater IN
Treated Water Out
Sewage works
Energy IN
GHG out
Sludge out
Chemicals IN
750,000 tonnes per year(0.1% recycled)
Per ML:634 kWh
(2-3% of UK)
406 kgCO2e
(5% of CH4)
An effluent factory
Adsorb nutrient and recover
Increase total energy from sludge with
thermal processesSludge imports(not required)
AnMBR
Thermal treatment
degasScreen Reactive media
CO2
Regenerant
Fertliser
Grit recovery
BiostruviteAmmoniaorganic recovery
Maximise recovery from the liquor line. Avoid
return load.
Maximise production of new biorecovery (bioplastics etc..)
Grit removal to protect high tech downstream
and recover grit
A small works / rural works: fit and forget
Aerobic wetlandair
Anaerobic PondPart of wetland fitted
with reactive media if P consent required
Part of wetland fitted with reactive media if P
consent required
Gas compressed or boiler for heat
generation
Gas compressed or boiler for heat
generation
De sludge every 7-10 years
De sludge every 7-10 years
Generate community involvement:
societal/ecosystem benefits.
Generate community involvement:
societal/ecosystem benefits.
Analyse flowsheets to define core attributes.
Define the core attributes to refine and shape future technology
Siobhan Kennedy-Hall, Business Development Manager, water2business
Examining commercial opportunities within the non-regulated sector
26
Siobhan Kennedy-Hall – Business Development Manager water2business
Challenges and OpportunitiesA Retailer’s Perspective
6th July 2017
Author: Siobhan Kennedy-Hall – Business Development Manager
27
• Following the opening of the water market, companies are having to work together in new and
untested ways.
• How should we be operating in this marketplace?
• Wholesalers have a whole new set of customers – retailers, and as well as working hard to ensure
they offer a level playing field to new entrants, they must meet retailers’ expectations and provide
the service necessary to ensure end customers don’t suffer from the change.
• What do retailers want from wholesalers ?
• How well placed are wholesalers to deliver?
• The role of third party intermediaries
I’m excited to be part of this expert panel will explore the challenges and opportunities presented by
the opening of the water market.
What are we here to debate…
Todays Subject Matter
28
A Wessex Water and Bristol Water Company creating innovative, tailored
water management packages for business customers throughout
England and Scotland
Who are we...
water2business
29
What were the key drivers…
The Retail Market
Encourage innovation
Improve water efficiency
Drive down pricing
Improve customer service
30
How should retailers do it?
“Do what you do so well that they will want to see it again and bring their friends”Walt Disney
Iconic America businessman
31
Consistently Good Service
InnovationCustomer
Expectations
What should the market deliver ?This is what our customers say…
32
• Uniformity – Can we have a common approach
from wholesalers…
• Tariffs and pricing
• Methods of communications and interactions
• Service Level agreements and performance
• Service offerings
What do we want from Wholesalers? Here’s our wish list for you...
33
How well placed are wholesalers to deliver?A snapshot from our experience..
• It’s a mixed bag !
• We’ve received various levels of service
• Lack of uniformity makes being a retailer operating
nationally complex and leads to confusion for
customers
• Its not all doom and gloom…most wholesalers are
pragmatic, responsive and are adapting to the
demands of the new markets
34
What will make the new market work
What will make the new market work
Customers are confident
Customers benefit from lower prices and/or better service
It’s easy for companies to join and leave the market
There is a simple and efficient switching process
There is limited or no anti-competitive behaviour
There is limited or no mis-selling Trust
35
Where do they fit in?…
The role of third party intermediaries
• The good, the bad, the evil…..
• Knowledge
• Understanding
• Attitude
• SMEs
36
Measure performance to drive improvement…
Service Level Agreements (SLAs)
• SLAs monitored by MOSL and Ofwat
• Monthly performance reports available for peer
comparison
• How do we measure the performance of 3rd Parties?
• There is nothing currently in place
Its not clear whether existing SLAs and KPIs benefit
the customer and this need to be the focus
• Stephen Riches, Asset Planning Manager (Biosolids), Anglian Water Services• Steve Bungay, Owner & Director, Helix ECL• Matt Taylor, Organics Technical Manager, Aqua Enviro
Increased competition in upstream sewage and sludge markets
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION SLUDGE DEREGULATION
Steve BungayTechnical Director – Helix ECL
Understanding the Challenges and Opportunities
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION • Ofwat, the economic regulator in
England, are reviewing the regulatory framework for sludge
• They are promoting free markets between the water companies and commercial sector treating biowaste
• Ofwat have identified that sewage sludge, is a resource, with substantial scope for market development
• Currently, the water industry is highly regulated
Sludge Deregulation
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Economic Regulation• The UK water supply is overseen by independent water regulators in
England and Wales, Scotland and Northern Ireland
- These regulators ensure that water companies consider the needs and interests of consumers in their work, whilst maintaining efficient and economically sustainable practice
- The economic regulators for the UK water sector are England and Wales – Ofwat Northern Ireland – The Utility Regulator Scotland – Water Industry Commission Scotland (WICS)
- The regulators in the UK are responsible for settling limits on pricing and protecting customers interests, encouraging competition and investment within the industry, and administering the licensing regime for water and sewerage companies as set out in the Water Services Act (1991)
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Environmental Regulation• Water companies in the UK are committed to protecting our
environment
- The UK water sector works closely with the regulators to ensure the continued delivery of environmental benefits
- The environmental regulators that the water sector works with are
England – DEFRA and the Environment Agency Northern Ireland – Department for Agriculture Environment
and Rural Affairs (DAERA) Scotland – Scottish Environment Protection Agency Wales – Natural Resources Wales
- The regulators in the UK are committed to supporting our environment by regulating water quality and protecting public health, whilst working with the water sector to help support the industry
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Regulations – the beginning
• The Rivers Pollution Prevention Act (1876)- Part 1
Law as to Solid MatterProhibition as to putting solid matters into streams
- Part 2Law as to Sewage PollutionProhibition as to drainage into streams of sewers
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION • Sewage Sludge Directive (Council Directive
86/278/EEC)
European Union Law
Post-War Regulations for Sludge
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION • The Sludge Use in Agriculture
Regulations (1989)
UK Statutory Instrument
Current Regulations for Sludge
• The Environmental Permitting Regulations (2010)
UK Statutory Instrument
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION Water Companies
Assurance SchemesCommercial Operators
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
1 2 3 4BiomethaneElectricityBiosolids
Sewage
WastewaterTreatment
Works
SludgeThickening
Site
SludgeTreatment
Centre
including Anaerobic Digestion
Biogas
Sludge Thickened Sludge
Digester Feed
Sludge Deregulation
Deregulation in Practice
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Water Company Asset Utilisation
Deregulation in Practice
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
1
1
1
1
2
2
2
3
3
4
4
Sewage
Sewage
Sewage
Sewage
WwTW STS STC Digester
Water Company Asset Utilisation
BiomethaneElectricityBiosolids
Biogas
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
i1
i2
i3
i4
j1
j2
j3
j4
j5
o1
o2
Sewage
Sewage
Sewage
Sewage
WwTW STS
c1
c2
c3
STC Digester
+1 +1
Multi-layer Back Propagated Neural Network
Water Company Asset Utilisation
BiomethaneElectricityBiosolids
Biogas
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Cross Boundary Trading
Deregulation – Scenario 1
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Sewage SludgeAD Plants
Sewage Sludge & Commercial
AD Plants
AD M
ap -
Anae
robi
c Di
gest
ion
and
Bior
esou
rces
Ass
ocia
tion:
www
.adb
iore
sour
ces.
org/
map
Cross Boundary Trading
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
i1
i2
i3
i4
j1
j2
j3
j4
j5
o1
o2
+1 +1Sewage
Sewage
Sewage
Sewage
WwTW STS
c1
c2
c3
STC Digester
i5Sludge
Cross Boundary Trading
Additional input to the system
BiomethaneElectricityBiosolids
Biogas
+1
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Separated Sludge Business
Deregulation – Scenario 2
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
i1
i2
i3
i4
j1
j2
j3
j4
j5
o1
o2
+1 +1Sewage
Sewage
Sewage
Sewage
WwTW STS
c1
c2
c3
STC Digester
i5Sludge
Separated Sludge Business
BiomethaneElectricityBiosolids
Biogas
+1
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
i0
i0
i0
i0
i1
i2
i3
j1
j2
o1
o2
Sewage
Sewage
Sewage
Sewage
WwTW STS
c1
c2
STC Digester
Sludge
Sludge
Sludge
+1
Sludge i4 Optimisation links are broken
Separated Sludge Business
BiomethaneElectricityBiosolids
Biogas
+1
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Deregulation in Practice• Scenario 1 - Cross Boundary Trading
- Easy to implement- Easy to optimise
• Scenario 2 - Separated Sludge Trading- Optimisation links are broken- Will not provide cost savings for customers- Will provide the water companies with the opportunity to divert
profits into the non-regulated “sludge” business• Scenario 3 - Cross Sector Trading
- Does deregulation open up the market between the water companies and the commercial sector?
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Cross Sector Trading
Deregulation – Scenario 3
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Cross Sector Trading• Water Companies
- The Sludge Use in Agriculture Regulations (1989)- Safe Sludge Matrix- Biosolids Assurance Scheme
• Water Company Exemptions (giving commercial advantages)- S3 Storing Sludge- T21 Recover waste at a waste water treatment works- U10 Spreading waste to benefit agricultural land
• Commercial Operators- The Environmental Permitting Regulations (2010)- PAS110
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
• Plants (2015) shown by electricity/CHP, heat only, and biomethane
Commercial Sector Operational Plants
Capacity
Electricity/CHP plants 215 210 MWe
Heat-only plants 6 0.1 MWth
Biomethane plants 25 17,266 m3/hr
Water Sector Operational Plants
Capacity
Sewage electricity plants 155 177 MWe
Biomethane sewage plants 4 4,200 m3/hr
Anae
robi
c Di
gest
ion
and
Bior
esou
rces
Ass
ocia
tion:
www
.adb
iore
sour
ces.
org
Cross Sector Operation
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Digester Sector ElectricityPlants
BiomethanePlants
Operational Planning Operational Planning
Sewage Sludge 159 0 9 0
Agricultural 235 276 59 36
Industrial 35 23 7 3
Commercial 79 78 15 9
• Anaerobic Digestion in the UK (2017)
- With the uptake of various financial incentives, there are now more commercial digesters than sewage sludge digesters
AD M
ap -
Anae
robi
c Di
gest
ion
and
Bior
esou
rces
Ass
ocia
tion:
www
.adb
iore
sour
ces.
org/
map
Cross Sector Operation
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Opportunities• Deregulation presents opportunities and challenges to the
water industry
- Integrating skills from the water companies and the commercial sector, and, using pragmatic regulation will realise the greatest potential from a deregulated sludge market
- Cross boundary trading offers the potential to optimise the utilisation, reuse, and recovery of sewage sludge
- However, separating sludge from sewage reduces the efficiency in which they are treated holistically
- In addition to this, disparate regulations disincentivise the engagement from the commercial sector
• Overall the opportunities are limited
- Cross Boundary Trading is the only real opportunity that could offer savings to customers
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Challenges• Deregulation presents both economic and environmental
challenges
- Economic deregulation of sludge requires regulatory change to promote free markets between the water companies and commercial sector treating biowaste
- There could an opportunity to consolidate and simplify the existing regulatory framework
BAS v PAS110(Currently the commercial sector operates at a financial disadvantage to
the water companies)• Economic deregulation must NOT undo the environmental
improvements that have been implemented since the 1950’s• Reportedly, privatisation has cost customers £2.3
billion/year more than it would have if water had remained in public ownership
(Financial Times, Water Briefing, Utility Week, University of Greenwich)
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Conclusions• Cross boundary trading
- Offers the possibility of local efficiencies and optimisation• Separated Sludge Business
- Will reduce the efficiency of the overall treatment process- Prevent economic savings from optimisation of the overall
treatment process- Facilitate the transfer of “customer savings” to the non-regulated
business• Cross Sector Trading
- Due to the disparity in the cost of complying with environmental regulations, there is no incentive for the commercial sector to enter the water company sector
• Ultimately, deregulating the sludge market is NOT likely to offer savings to the water company customers
Unde
rsta
ndin
g th
e Ch
alle
nges
and
Opp
ortu
nitie
s
SLUD
GE D
EREG
ULA
TION
Consulting Process Scientists & Engineers
Steve Bungay – Technical [email protected]
www.helixecl.co.uk
6th July 2017
Increased competition in sludge markets – what difference will it
make?Matt Taylor
Organics Technical Manager
Aqua Enviro is a specialist environmental consultancy, conference organiser and training provider in the water, wastewater, bioresources and organic waste sectors.
Suez Water UK
Water 2020
• OFWAT aims to promote a market for trading sludge
• Specifically this means:• Companies can trade with each other and
use processing centres in adjacent company areas to improve efficiency
• More efficient investment to make the most of sludge processing across company boundaries
• Better interaction and integration with the wider organic waste market
Legislative and non-legislative controls• 1986 EU Directive on Sludge Use in Agriculture• 1989 Sludge (Use in Agriculture) Regulations• 2010 Environmental Permitting regulations (plus Scotland, NI, etc.)• BSI PAS110:2014• AD Quality Protocol (SEPA Position Statement)• EA/SEPA/NRW/NIEA Position Statements on non-waste digestion• Animal By-products Regulations• 1996 Code of Practice for Agricultural Use of Sewage Sludge• Water industry HACCP guidelines• Safe Sludge Matrix• Biosolids Nutrient Management Matrix• Plus various others:
• Codes of Good Agricultural Practice• Groundwater source protection zones• The Nitrate Pollution Prevention Regulations• S3 exemption (field storage)• Etc…
WastesWastes
SludgeSludge
YesYes
YesYes
Input materialAD process regulated?
Digestate regulated?
NoNo
YesYesManuresManures
Purpose-grown crops or Crop by-products
Purpose-grown crops or Crop by-products
NoNo
YesYes
YesYes
NoNo
WastesWastes
SludgeSludge
Bespoke permitBespoke permit
Urban wastewater treatment directiveUrban wastewater treatment directive
Input materialAD process regulated?
Digestate regulated?
Standard rules permitStandard rules permit
Exemption from permitting
Exemption from permitting
Sludge and wasteSludge and waste Bespoke permitBespoke permit SR 2010 No. 4SR 2010 No. 4EoWEoW
Bespoke permitBespoke permit
Standard rules permitStandard rules permit
Exemption from permitting
Exemption from permitting
Sludge Use in Agriculture RegsSludge Use in
Agriculture Regs
All AD plants in the UK – excluding sludge and industrial digesters
Taken from: http://adbioresources.org/map
All AD plants in the UK – excluding sludge, industrial and agricultural digesters
Taken from: http://adbioresources.org/map
Opportunities
• Cross boundary trading can increase efficiency
• Utilising spare digester volumes to cost effectively increase recycling
• Share skills/expertise between waste and water sector
• Harmonised environmental regulations
• Create a level playing field
Challenges• Not being anti-competitive• Not losing benefits of integrated treatment process (sludge and
wastewater)• Maintain/improve environmental protection• Technical differences (e.g. contaminants and material properties)• Cost/profit share in regulated/non-regulated business
• Feedstock availability
• Gate fees
• Recycling targets (E, S &W)
Dr Kees Roest, Senior Scientific Researcher, KWR Watercycle Research Institute
Local water and energy solutions - Showcase Cleantech Playground at De Ceuvel in Amsterdam, The Netherlands