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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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29

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

• adam.read@ricardo-aea.com

• www.ricardo-aea.com

The last slide … I promise!