UK waste sector market opportunities

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This presentation from Resource Efficiency and Waste Management 2013 highlights the key issues from i2i’s sector report ‘Resource Efficiency & Waste Management Market Opportunity’ as well as Professor Adam Read’s personal observations.

The report, researched and authored by Ricardo-AEA, 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

Published in: Business, Technology
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UK waste sector market opportunities

  1. 1. © Ricardo plc 20131 Ricardo-AEA © Ricardo plc 2013 RWM 2013: 10th to 12th September 2013 @ NEC Dr Adam Read Practice Director – Waste Management & Resource Efficiency UK Waste Sector Market Opportunities
  2. 2. © Ricardo plc 20132 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
  3. 3. © Ricardo plc 20133 • 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
  4. 4. © Ricardo plc 20134 • 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
  5. 5. © Ricardo plc 20135 Introducing Ricardo-AEA
  6. 6. © Ricardo plc 20136 My sponsor: www.ricardo-aea.com
  7. 7. © Ricardo plc 20138 Our Key Sectors
  8. 8. © Ricardo plc 20139 • 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
  9. 9. © Ricardo plc 201310 European Waste Policy
  10. 10. © Ricardo plc 201311 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
  11. 11. © Ricardo plc 201313 UK Waste Policy
  12. 12. © Ricardo plc 201315 • 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
  13. 13. © Ricardo plc 201316 Waste Market Opportunities
  14. 14. © Ricardo plc 201317 • 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
  15. 15. © Ricardo plc 201318 “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?
  16. 16. © Ricardo plc 201319 • 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
  17. 17. © Ricardo plc 201320 • 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
  18. 18. © Ricardo plc 201324 Market Opportunities: Recycling
  19. 19. © Ricardo plc 201325 • Vehicle innovations (design, operation etc.) Market Opportunities: Collection
  20. 20. © Ricardo plc 201326 • Containerisation Market Opportunities: Collection
  21. 21. © Ricardo plc 201327 • Communications Market Opportunities: Collection
  22. 22. © Ricardo plc 201328 • £5bn worth of recyclables went overseas for energy recovery and reprocessing last year…. Scope for UK investment? It’s all about materials….
  23. 23. © Ricardo plc 201329 29 Good Quality? Good quality? Bad quality?
  24. 24. © Ricardo plc 201330 • 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
  25. 25. © Ricardo plc 201332 Waste to Energy Market Opportunities
  26. 26. © Ricardo plc 201333 “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
  27. 27. © Ricardo plc 201334 New EfW infrastructure coming on line Source: Ricardo-AEA FALCON dynamic waste map & database
  28. 28. © Ricardo plc 201335 • 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
  29. 29. © Ricardo plc 201336 • Landfill mining – recovering resources – freeing-up ‘void’…. – generating energy Market Opportunities: Disposal
  30. 30. © Ricardo plc 201337 Building solar parks closed landfill sites (Viridor have done this!) Market Opportunities: Disposal
  31. 31. © Ricardo plc 201338 UK Waste Infrastructure Needs
  32. 32. © Ricardo plc 201339 • 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
  33. 33. © Ricardo plc 201343 The Future?
  34. 34. © Ricardo plc 201344 Investment opportunities ……
  35. 35. © Ricardo plc 201345 Investment opportunities ….. • Eco parks harnessing energy – Manufacturers located around materials delivered, creating jobs, etc.
  36. 36. © Ricardo plc 201346 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?
  37. 37. © Ricardo plc 201347 • 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
  38. 38. © Ricardo plc 201348 • My team are here to help • Please come and share your opinions ….. Visit us on Stand 06M38
  39. 39. © Ricardo plc 201349 Good Morning!
  40. 40. © Ricardo plc 201350 • 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!

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