VES – EPA VICTORIASUSTAINABILITY COVENANT REPORT 2009

Executive Summary

The second year of the Veolia Environmental Services EPA Sustainability Covenant has delivered further progress towards achieving zero prescribed waste to landfill in Victoria. VES activities both at the Brooklyn Facility and upstream with clients have improved segregation at source and at point of treatment, and increased the recovery of resources from the waste stream. VES has also invested in water savings and reuse, reducing the requirement for potable water use at the Brooklyn site.

VES has also achieved substantial progress on the research and development front, undertaking comprehensive review of advanced treatment options from bioremediation, end product reuse and new technological applications. Utilising time spent in US and Europe for other business, VES representatives conducted field visits to a range of product and equipment providers. The end of the 2008-09 financial year presents a key milestone for the covenant, as an option to substantially reduce Category B PIW disposal has been selected and will now undergo final feasibility analysis throughout the remainder of 2009.

Performance

INCOMING LITRES OUTGOING LITRES

Waste Received Oil Recycling Other Treaters Sewer PIW Landfill Total

2006/07 Financial Year 48,181,155 4,382,100 1,146,400 5,004,300 33,311,632 19,761,750 63,606,182

% of Input 9.10% 2.38% 10.39% 69.14% 41.02%

2007/08 Financial Year 52,345,173 2,315,200 1,914,500 6,297,999 32,239,114 17,494,770 60,261,583

% of Intput 4.42% 3.66% 12.03% 61.59% 33.42%

2008/09 Financial Year 45,536,816 1,651,850 2,580,480 6,206,440 30,858,556 14,544,375 55,841,701

% of Intput 3.63% 5.67% 13.63% 67.77% 31.94%

Baseline Case 41.02% x Volume Improvement

2007/08 Financial Year 21,469,644 3,974,874

2008/09 Financial Year 18,677,161 4,132,786

Saving To Date 8,107,659

2008-09 FY

Veolia Site (t) Customer Site (t)

Avoidance N/A 4,6801

Re-use 4,5282 2,8003

Recycling 4,0784 2,9395

Recovery of Energy 1556 1177

Veolia Site Activities (t)8

Cat B Cat C Total

Treatment Cat A 30,491 5,662 36,153

Cat B 2,357 0 2,357

Cat C N/A 8,937 8,937

Disposal 16,980 4,177 21,158

Customer Site Activities (t)

Cat B Cat C Total

3,6009 – 3,600

1 Geotube projects2 Acid reuse3 Foundry Sand4 Oils and other recyclables5 Diversion to NRS

6 Solvents, paints and fuels7 Diversion to Geocycle

from site8 Includes soil volume9 Geotube projects

Waste Received Breakdown

Waste Volume (L)

Acids 4,528,160

Sewer/Septic 4,646,530

Oily Liquids 2,425,772

PIW Solids 6,926,094

PIW Sludge – Belt Press 5,600,905

PIW Sludge – Pits 9,089,947

Grease Trap 7,536,350

Packaged Waste 2,952,875

Temporary Storage 1,830,183

TOTAL 45,536,816

Site Improvement Case Study 1 Stormwater Harvesting & Reuse

Previously: On the western boundary of the Veoila Brooklyn site is a sizable undeveloped property. During storm events and due to the contours of the adjacent property significant volumes of water enter the Veolia site and historically have collected within the treatment plant area. As a result this water was deemed PIW and has to be treated / processed and then discharged to sewer as trade waste.

Solution: Veolia has designed and constructed a stormwater capture process. Now when there are storm events water enters a specifically designed drain on the property boundary. This water is then redirected, filtered and captured into dedicated tanks. Based on previous rain water data from the Bureau of Meteorology it is expected that some 3.3 Million Litres of water per annum can now be captured and reused at the Veolia Brooklyn facility. This processes coupled with the existing stormwater capture system from the buildings at the site will allow Veolia to be self sufficient in water usage at the plant thus eliminating the need for using potable water in the PIW treatment processes.

Major Benefits: – Diversion from sewer discharge– Cost benefits– Beneficial reuse outcome– Resource Recovery– Reduction of environmental hazard and risk

Site Improvement Case Study 2 Brooklyn Treatment Facility – Bioremediation Trials

PIW Description and Classification: As part of the treatment of aqueous based PIW, the Veolia Brooklyn treatment plant generates significant volumes of pit sludge. This sludge contains elevated levels of hydrocarbons thus classifying the waste as a Category A.

Current: The current process for the treatment of the pit sludge residues involves stabilising the waste material. This reduces the environmental hazard of the waste by limiting the leachability of the hydrocarbons. The stabilised waste is then sent to secure landfill for disposal as a Category B waste.

Solution: Veolia was able to implement a program to investigate the bioremediation of the pit sludge in order to remove the hydrocarbon contaminants. The technology solution was to employ in-vessel composting for the bioremediation process. The program proved to be successful and as a result Veolia was able to demonstrate that pit sludge contaminated with hydrocarbons can be successfully remediated thus allowing the final product to be reused. This provides a real and sustainable outcome for the on going management of this type of waste.

Major Benefits: – Diversion from landfill– Resource recovery– Cost benefits– Beneficial reuse outcome– Reduction of environmental hazard and risk

General Comments:

The total volume of waste received during 2008-09 was down on the preceding two years as a result of the economic downturn, however there has been an increase in recycling achieved through increased diversion to NRS and other recovery processes.PIW sent to landfill also been further reduced as a percentage of incoming waste received.

Upstream Case Study 1

PIW Description and Classification: Packaging sector – Washwater wastes

Previously: A VES client who is a major producer of cardboard boxes as well as offering laminating and printing services typically produce PIW waste in the form of PVA and starch wash waters. These wastes streams have been treated at the Veolia Liquid Treatment plant in Brooklyn for the past 10 years. In 2008 Veolia’s Brooklyn facilitity took just over 100 KL of this waste in, resulting in around 40 tonne of PIW solids produced that were destined for the Taylors Rd Landfill.

Solution: In November 2008, a trial began at the joint venture composting facility – NRS, in Dandenong South, to use both the PVA and starch wash waters from Glamapak, as part of the mix for the production of commercially viable compost. Both the operational measures taken and the analytical results proved the trial to be a success and since then these waste streams have been diverted from the Brooklyn plant to NRS. So far this year NRS has accepted 37.98 tonne of the starch wash water and 30.08 tonne PVA wash water. This is estimated to have resulted in a reduction of 27.25 tonne of PIW to landfill and well as 40.8KL of trade waste to sewer.

Major Benefits:– Diversion of PIW to landfill– Cost benefits to both client and treater– Beneficial reuse outcome– Resource Recovery– Reduction of environmental hazard and risk

Upstream Case Study 2

PIW Description and Classification: Hydrocarbon Sludge within a Waste Water Treatment Plant– Category A Waste

Previously: In the past hydrocarbon sludge from a typical waste water treatment plants would be stabilised and forwarded to landfill. The reason the material needs stabilisation is due to the high water content that is intrinsically contained within the sludge matrix. This water content limits the options for disposal of this type of material.

Solution: Veolia was able to implement processes and methodologies to collect the sludge in such a manner that limited the water content trapped within the sludge matrix. This enabled the waste to be used as a fuel in a kiln. Therefore none of the material required landfill disposal and provided a sustainable outcome.

Major Benefits:– Diversion from Landfill– No contamination legacies– Beneficial use outcome– Reduction of environmental hazard and risk

Industry: Automotive Manufacturing

Upstream Case Study 3

PIW Description and Classification: Foundry Sand Impacted with Phenolic Resins – Category A Waste

Previously: In the past spent foundry sand was classified as a PIW due to levels of residual phenolic resins. As a result the material required disposal to a secure landfill.

Solution: Veolia was able to implement a program in conjunction with ASIRC to investigate the diversion of the foundry sand from landfill to a cement kiln. The program proved to be successful and as a result waste foundry sand is now replacing virgin sand in the process of making cement. Further to that no more foundry sand is being forwarded for disposal to landfill. Once again the solution to the foundry sand disposal provides tangible outcomes from both a commercial and environmental perspective.

Major Benefits:– Diversion from Landfill– Cost benefits– Beneficial reuse outcome– Reduction of environmental hazard and risk

Upstream Case Study 4 Prescribed Waste Filter Cakes to NRS

PIW Description and Classification: Filter cake and drying bed sludge – Category A and B disposal

Previously: Veolia received solid filter cake and drying bed sludge from a chemical manufacturer in Melbourne’s western suburbs. The material is a waste activated sludge from an onsite biological water treatment plant. The sludge residue is classed as a Prescribed Industrial Waste and contains low levels of hydrocarbon residue. It was previously stabilised at Veolia’s Brooklyn facility then disposed of to landfill.

Solution: Veolia’s Natural Recovery Systems (NRS) composting business undertook an extensive research, development and demonstration project managed by NRS Director, Craig Hudson. The RD&D project was designed to fully characterize the material and the variability of its contaminants. Trials showed the hydrocarbons to be successfully biodegraded during the composting process. Heavy metals in the material were confirmed to be at a level that did not impact on the quality of the compost, whilst nitrogenous compounds present were converted into nutrient available species during the process.

As a result the filter cake and drying bed sludge is now diverted to the NRS facility, with 560 tonnes received during the 2008-09 financial year.

Major Benefits:– Diversion from landfill– Resource recovery– Cost benefits to both client and treater– Reduction of environmental and hazard risk– Beneficial re-use outcome

Industry: Chemical Manufacturing

Level 1, 85 Buckhurst StSouth Melbourne, VIC, 3205www.veoliaes.com.au

Continuous Improvement Plan

Date Issue/Item Action By Whom When Status

1/10/08 Extend plant capability to service PIW market

Identify gaps and facilitate additional licensed activity

VB 30/06/09 Corporate Licence launched July 09

1/7/08 VES Licence Review Finalise Corporate Licence MS/EPA 30/06/09 Corporate Licence launched July 09

15/11/07 Reduce A’s to B’s and C’s Identify options DB/RS Ongoing Potential further A to C classifications being explored.

15/07/08 Project and maintenance review

Weekly status review MS/RS Ongoing Completed and weekly review meetings implemented

01/08/08 Stormwater reuse growth Expand the reuse of water within filter press

MS/BH 25/02/09 Stormwater recovery system completed.

22/4/09 Additional Stormwater Storage

Develop feasibility and funding proposal

ME/BH 31/8/09 In progress

15/5/09 Trade waste licence renewal

Negotiation with City West Water

ME/BH 31/8/09 In progress