THE ENVIRONMENTAL SECTOR in Spain

July 2008

Environmental sector

• The market is worth 10,820 million €

= 3.2% of world market

= 8.9% of EU market

= 1.6% of Spanish GDP

• 2,000 empresas – mostly SMEs

• Technology:

88% - proprietary

12% - imported from Europa, principally Germany

• 250,000 jobs – mostly highly qualified

(11 universities and business schools offer specialisedenvironmental courses)

Waste treatment

Waste treatment in Spain

• Responsibility for waste collection in Spain lies with the municipal authorities

• Responsibility for waste treatment lies with the regional authorities

• MSW – 2006 generation: 1.38 kg/inhabitant/day

treatment: 11.5% of total Spanish MSW wasrecycled or composted. The remaining 88.5% wasincinerated or landfilled

- 10 incineration plants

- 187 landfills

• Hazardous waste – estimated >5m tons/year generated

• Construction and demolition waste – estimated 37 tons in 2007

• Plastic waste – Spain uses 27% of all agricultural plastic in theEU

The 17 Spanish regions

The 52 Spanish provinces

Waste treatment in Spain

Regional scene

Sources: National Statistics Institute, Regional Governments

Waste collection in SpainMunicipal scene

•Source: Consumer Eroski

Urban solid waste

Treatment systems used

Source: Ministerio de Agricultura y Medio Ambiente (2003)

2 million10Incinerators

872,00012AnaerobicDigestion

6.8 million96Composting

Capacity(t/a)

Number ofplants

Source: Ministerio de Agricultura y MedioAmbiente (2005)

28.14%

Composting

6.2%

Incineration with energy recovery

8.42%

Selective collection

3.9%Uncontrolled

landfill

53.29%

Controlledlandfill

Legislation

Legislation

• European:

• Spanish:

• Regional:

– Directive 2206/12/CE

– Basel Convention

Regulates cross-bordertransport of waste andencourages greaternational self-sufficiency

– PNIR Integrated National Waste Plan 2007-2015

– Urban Solid Waste

– Hazardous Waste

– End of life Vehicles

– End of life tyres

– Waste water sludge

– Construction andDemolition Waste

– PCB/PCT

– Used battery and storagebattery waste

– Electrical and electronicappliance waste

– Mining waste

– Agricultural plastic waste

– Non-hazardous industrialwaste

– Soil Treatment

Many regions have developedtheir own laws regarding thetreatment of certain sorts ofwaste, always within the EU and national regulatoryframeworks

Possible opportunities

Opportunities (I)Identified in the PNIR

– Increase the number of industrial treatment plants for bothMSW and hazardous waste

– Modernize technology so as to reduce the amount of wasteproduced as a side effect of current treatment methods

– Encourage alternatives to landfill

– Increase selective collection

– Introduce selective collection at source of the organic fraction of urban solid waste in order to improve the quality of compost used in soil treatment

– Classify and prepare inventory of contaminated soil areas

– Establish 165 new authorised treatment centers for end of lifevehicles

– Increase the recycling of end of life tyres (establishment ofnew treatment plants)

– Establish recovery deposits and sludge treatment plants besidewaste water treatment facilities

Opportunities (II)Identified in the PNIR

End of life tyres

End of life tyres

• 35 million tyres are discarded each year

= 300,000 tonnes:

32% are reused

17% are used in waste to energy processes

51% go to landfill

Government goal: 98% to be re-used and 50% to be used for asphalt mixes.

16 recycling plants throughout Spain

12 cement factories using waste tyres to produce energy (13 in 2008)

Water

The water sector in Spain

• Maximum reservoir capacity: 54.148 hm3

• Reserves at November 2007: 22.809 hm3

• Domestic consumption: 166 litres/inhabitant/day

• Uses

Irrigation: 62.66%

Human supply: 21.16%

Industry: 17.17%

• Costs (2004)

Total cost of water distributed €3,171 million

Investment in supply services €226 million

• >700 towns with >2,000 inhabitants with no wastewater treatment plant

Water consumption in 2005

Hm3

Irrigation

Gravity

(47%)10,671

22,657

Drip and sprinkle

(52.9%)11,986

Urban consumption

Domestic, companies, institutions, local

government

(82.1%)

Families *

(66.8%)5,180

6,310

Losses in the distribution system

(17.9%)

1,129

Industrial consumption

7.776

Source: National Statistical Institute (INE) *3,454 Hm3 __ 166 L/inhab./day

Principal Action Plans

• Irrigation Modernization Plan – Aim: reduce consumption by 1,200 hm3/year– Budget: 10,000 million euros– Current status: 50% completed

• A.G.U.A. Programme– Main aim: water generation – desalination of 1,000 hm3/year– Budget: 3,800 million euros– Current status: 40% completed

• National Sanitation and Treatment Plan (2008-2015)– Aim: Comply with Directive 91/271– Budget: 19,000 million euros– Current status: approved and in initial stage

• Water re-use– Increase by 800 hm3/year– Budget: not established– Current status: legislative approval

Principal opportunities

• Modernization of watering systems so as to improve efficiency

• More energy-efficient desalination systems

• Sanitation and Treatment, especially in small towns in sensitive areas

• Increasing urban water treatment for re-use

• Systems for reducing leaks and losses in distribution

Other opportunities

• Recovery of sludge from waste water treatment processes

• Research and development

• Treatment of industrial waters (IPPC)

• Safety studies and dam emergency plans

• Biological monitoring of waterways

• Treatment of water collected for supply (drought)

• Advanced contaminant treatment in water for consumption

• Management of infrastructure for the complete water cycle and rain watercapture (storm tanks, etc.)

• Systems for reducing domestic consumption

• Analytical control techniques

Waste to energy in Spain

Waste to Energy in Spain

The global context

Incineration of Municipal Solid Waste:

600 waste-to-energy plants in 35 countries.

The top five:

% of total waste disposed of by burning:

1. Denmark 56%

2. Holland 30%

3. Sweden 30%

4. USA 16%

5. Spain 6%

Waste to Energy in Spain

The European context

Spanish thermal waste treatment plants association are among the mostproductive in Europe:

Source: CEWEP, ISWA 2006

1.710Spain

314UK

2.518Belgium

3.329Switzerland

3.147Italy

1665Germany

13.6128France

M tons thermally treatedwaste per year

Plants 2005Country

Waste to Energy in SpainThermal plants

Catalonia: 4

Basque Country

Cantabria

Galicia

Madrid

Mallorca

Melilla

Waste to Energy in SpainThermal plants

240,000670,00015660Basque Country

164,773350,00033.2650Catalonia: Mataró

30,267110,0001325Catalonia: Girona

318,015732,070100294Mallorca

329,570750,0004,275,00074Catalonia: Barcelona

31,00080,00016.220Melilla

284,3351m119135Madrid

479,1422.2m90Galicia: Cerceda

142,334350,00024.0430Catalonia: Tarragona

96,000547,000 67150Cantabria

Waste incineratedper year (tons)

Inhabitants servedCapital investmentm€

EmployeesRegion

source: Annual Reports