Shanks us brochure

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Developing P3 Waste Treatment Partnerships in the United States Municipal Making more from waste 1

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Transcript of Shanks us brochure

Page 1: Shanks us brochure

Developing P3 Waste Treatment Partnerships in the United States

MunicipalMaking more from waste

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Introduction

The United States accounts for one-third of the world’s waste.

The majority is destined for landfill. In fact, almost one ton of household waste per person ends up in landfills each year. As more of theses sites reach capacity or close due to health concerns, trash travels further, costs more, and is responsible for more harmful emissions.

Our belief is that the waste management market in the US is poised to adopt models which have dramatically reduced reliance on landfill in Europe while creating value from resources.

Shanks is at the forefront of the zero waste initiatives in the municipal arena: our solutions are configurable to customer demand, and we are experts in P3 project delivery.

We believe that US municipalities must make more from waste and can benefit from the expertise which Shanks and other partners offer. If you share this ambition and are motivated by the opportunity to transform the municipal waste landscape I would be delighted to hear from you.

KIERON PARKER Sales and Marketing Director, Shanks Municipal

[email protected]

We have raised around $1bn in funding for our municipal operations in the UK and Canada

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About Shanks

Shanks Group plc is a FTSE-listed waste-to-product specialist, focused on the treatment of municipal, commercial and hazardous waste in Europe and the Americas. Originally founded in Scotland (UK) in 1880, the Group today employs over 3,900 employees, with revenues totaling $940m in 2013/14. In the municipal segment, Shanks’ range of market-ready technologies has been instrumental in driving a step-change in recycling and recovery rates, achieving over 90% diversion in some cases.

The success of our value proposition has been built on:

» our knowledge of the municipal segment and expertise in treatment of residual waste

» the flexibility and excellence of our operations: use tried-and-tested, replicable solutions which can be configured to suit the varying requirements of the municipalities and end-markets

» The relationships we forge with customers, offtakers, banks, solution partners and regulatory authorities

» Our values and technical experience are shaped around a simple philosophy, “Making more from waste.”

Key facts and figures

82%Recycling andrecovery rate

39%Reduction in our

reportable accident rate over the past five years

1.41Million tonnes of carbon avoided

Waste-to-Product

Recycle commodities

Produce Recovered fuel

Produced green energy

Reduce greenhouse gas emissions

Reduce untreatable waste residues to a

minimum

Provide highly specialised industrial

cleaning

Treat hazardous waste

Our PeopleAverage monthly number of people by segment employed by the group during the year.

2062Solid Waste

789Hazardous Waste

543UK Municipal

92Organics

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389,000,000 tones of household waste is generated in the US each year, of which

63% is landfilledThe US Opportunity

In the USA, non-hazardous solid waste is a $ 55 billion business

» The Top 12 “Green” states shown on the map are the highest diverters – typically landfilling less than 50%

» However in the Central region, 77% of household waste is still sent to landfill

West coast city initiatives have focused primarily on waste prevention and recycling. Space constraints on the eastern seaboard have resulted in a greater trend towards recovery of energy from waste through incineration

However, close to 80% of all waste in the central region is sent to landfill

West coast East coastCentral

52%77%

21%46%

2%

Recycling Landfill Incineration

2%

59%

25%

16%

KEY

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Source of data: 2014 Energy And Economic Value Of Municipal Solid Waste (MSW), Including Non-Recycled Plastics (NRP), Currently Landfilled In The Fifty States; Nickolas J. Themelis and Charles Mussche – July 9, 2014

By making more from its municipal waste instead of landfilling the US could:

power

13.8 mhomes

heat

9.8 mhomes

replace

100 mtons of coal with

green alternatives

avoid

23 m car-equivalent in

CO2 emissions

while each year saving land area the size of

7 Central Parks

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Towards zero waste

Shanks operates one of the largest municipal waste management businesses in Europe and Canada, and leads the industry in responding to the evolving environmental and economic challenges.Europe in particular has taken the lead in enforcing environmental legislation and ensuring that recycling and energy recovery is maximized across member states through a combination of national waste recovery targets, and taxes on landfill. We now await the latest round of policy-making, which is likely to prioritize the economic benefits associated with the effective management of resources within a Circular Economy.

Shanks has helped to drive the UK’s waste recovery rate from only 20% in the year 2000 to almost 70% today. Shanks’ focus on the municipal market has allowed us to exceed the UK average, providing our clients with average diversion rates of 82% – and as much as 92% in the case of Cumbria County Council and Wakefield county council.

82%70%

66%36%USA

UK

EU

Shanks

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At our new Surrey (Canada) AD facility, the bio-gas produced will be used to fuel waste collection and other vehicles and will produce around three million cubic metres of bio-gas a year, equivalent to some 2.9 million litres of diesel fuel.

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Our new Wakefield facility in the UK will deliver 92% diversion from landfill

Each year, five distinct waste-to-product technologies will create

» 60,000 tonnes of recycled materials

» 14,000 tonnes of compost

» 47,000 tonnes of waste-derived fuels

» three million kilo-watt hours of green electricity

» carbon avoidance benefit of more than 100,000 tonnes carbon equivalent.

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What does Shanks bring to the P3 arena?

Ours is a skilled, focused and growing municipal business, with high quality outputs. The flexible solution we offer allows municipal customers to balance economic and environmental imperatives, and to benefit from our portfolio of end markets for the products we make from waste.

The ability to control and analyze the waste supply chain allows us to identify innovative products and partners to support the market’s evolving needs in a sustainable way. The 1.6 million tons of waste that Shanks recycled and recovered in 2013/14 would have cost our municipal customers a combined total of almost $1bn to send  to landfill.

Our organic processes provide a way for authorities and companies to meet tougher recycling targets : Shanks is a leading player in the relatively mature Dutch organics market and we have significant expertise there, which we are using to develop our business in new markets, including the UK and North America.

MORE FROM WASTE COMMERCIAL PARTNERSHIPMARKET FOCUS

Economic and EnvironmentalValue for Municipalities Materials and Resources

Solutions and Services Adapting to Market Conditions

Balancing Risk and RewardSource and End Markets

Secure, Long Term Trusted

Operational Excellenceand Scale

Identifying and MeetingDemand for Products

We help our municipal customers to:

» reduce disposal costs

» improve environmental outcomes

» maximize the value of recovered resources

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Our Process

Our core technical solutions can be configured to meet local customer and end market requirements

MUNICIPALITY INPUT TREATMENT SOLUTIONS

WASTE TO PRODUCT

PRODUCT OUTPUT

Household TrashMechanical Biological Treatment

Anaerobic Digestion

In-vessel composting

Gasification

Materials Recycling Facility

Food

Garden Waste

Mixed Recycling

Fuel

Energy

Composting

Recyclates

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Customers and Markets

Organic Waste Treatment: City of Surrey, Canada

01 Derby City and County councils

02 Solid Recovered Fuel made from waste

03 Municipal Waste Treatment: East London, UK

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» 25 year P3 contract commencing 2017

» Design, build, maintain and operate a new Biofuel Processing Facility

» Largest facility of its kind in Canada

» Latest contract win in UK – service commencement in 2017

» Recycling and Energy from Wasteusing advanced Gasification solution

» Interim managed services todrive diversion

» Supplied to cement kilns in UK and Latvia

» Low-cost and green alternative to fossil fuels

» Household waste is now used to produce construction materials for the new Cross-rail railway for London

» Operational since 2002 - first UK P3 scheme

» Serves 4 London Boroughs and a population of 870,000

» Commitment to continuous improvement demonstrated by agreement with customer to boost contractual diversion rate from 67% to 95%

Recyclates Energy from Waste Cement KilnsElectricityKEY

NORTH AMERICA & CANADA

EUROPE

01

02

03

04

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Commercial Innovation

The Municipal Division operates waste treatment facilities for city and county authorities across the UK and Canada under long-term contracts. Such contracts are established primarily to divert waste from landfill in a cost-effective and sustainable way. Shanks manage the complex interaction of partners over the contract lifecycle to exceed customer requirements. The capital cost of the associated infrastructure is financed with non-recourse bank debt and, in the case of UK PFI schemes, is supported by central government funding.

PPP contracts benefit from guaranteed revenues and tonnages from the associated council. Typically, a special purpose vehicle (SPV) is created to finance the construction of the treatment assets and Shanks arranges for a club of banks to provide funding. The commercial structure is designed to minimize risk in the SPV in order to obtain the lowest possible bank financing cost.

CLIENT (MUNICIPALITY)Client pays unitary gate fee

over contract life.

SPECIAL PURPOSE VEHICLE (SPV)

SHANK AND PARTNERSShanks invests equity

and sub ordinated debt.

BANKBank provides non-recourse debt

ENGINEERING, PROCUREMENT &CONSTRUCTION

EPC contractor delivers a fixed costsconstruction contract to SPV

OPERATE AND MAINTAINO&M provider (Shanks Municipal) performs

operational contract obligations

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March 2012

Financial Close

July 2015

Service Commencement

November 2014

Commissioning

September 2012

Construction Begins

3SE (Barnsley, Doncaster & Rotherham) Limited

» SPV owned by Shanks Group plc [75%] and Scottish and Southern Energy PLC (SSE) [25%]

» 97% diversion achieved by supplying SSE with fuel for its Yorkshire energy plant, through enhanced MBT solution, dry AD biogas capture and production of compost-like output.

Designed to treat 250,000 tonnes of residual waste each year

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What makes us different?

In the UK, Shanks competes against a number of the largest waste and resource management companies. We believe our market advantage stems from:

» clear focus on long-term contracts in specialist municipal markets and geographies

» clear focus on the treatment and production of high value outputs from municipal waste

» largest experience of technologies required to support our process

» flexibility to maximize value from the resources we manage: we do not operate landfills, nor are we developing incineration capacity, but work with offtake partners internationally to secure long-term markets for our products

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The 1.6 million tons of waste that Shanks recycled and recovered in 2013/14 would have cost our municipal customers a combined total of almost $1bn to send to landfill.

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Richard Tarrant Commercial DirectorCommercial Director for the $1.5 bn Derby & Derbyshire Council’s P3 Residual Waste Treatment contract signed August 2014

Contact us

Kieron Parker +44 (0) 1908 650 561 [email protected]

Shanks Waste Management Ltd Dunedin House Auckland Park Milton Keynes Buckinghamshire MK1 1BU

shanksmunicipal.com

Making more from waste

MunicipalMaking more from waste

Peter Eglinton Managing Director (Municipal Division)

Kieron Parker Sales & Marketing DirectorProject Director for the $1.5 bn Derby & Derbyshire Council’s P3 Residual Waste Treatment contract signed August 2014

Paul Oostelbos International Business Development DirectorProject Lead for the City of Surrey Biofuels Project signed February 2015. The first P3 Organic Waste Treatment contract in Canada

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