The document provides an overview of opportunities in the UK waste management sector presented by Dr. Adam Read of Ricardo-AEA. It discusses the drivers of European and UK waste policy including EU directives, infrastructure needs to meet targets, and growth areas in collections, recycling, energy recovery and new technologies. It highlights market opportunities for facilities to improve sorting and reprocessing in closing material loops in the UK and notes the £12 billion annual market and need for £8 billion additional in new infrastructure to meet 2020 goals.

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. © 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. © 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. © 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. © Ricardo plc 20135
Introducing Ricardo-AEA

6. © Ricardo plc 20136
My sponsor: www.ricardo-aea.com

7. © Ricardo plc 20138
Our Key Sectors

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. © Ricardo plc 201310
European Waste Policy

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. © Ricardo plc 201313
UK Waste Policy

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. © Ricardo plc 201316
Waste Market Opportunities

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. © 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. © 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. © 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. © Ricardo plc 201324
Market Opportunities: Recycling

19. © Ricardo plc 201325
• Vehicle innovations (design, operation etc.)
Market Opportunities: Collection

20. © Ricardo plc 201326
• Containerisation
Market Opportunities: Collection

21. © Ricardo plc 201327
• Communications
Market Opportunities: Collection

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. © Ricardo plc 201329
29
Good Quality?
Good quality? Bad quality?

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. © Ricardo plc 201332
Waste to Energy Market Opportunities

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. © Ricardo plc 201334
New EfW infrastructure coming on line
Source: Ricardo-AEA FALCON dynamic waste map & database

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. © Ricardo plc 201336
• Landfill mining
– recovering resources
– freeing-up ‘void’….
– generating energy
Market Opportunities: Disposal

30. © Ricardo plc 201337
Building solar parks closed landfill sites (Viridor have done this!)
Market Opportunities: Disposal

31. © Ricardo plc 201338
UK Waste Infrastructure Needs

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. © Ricardo plc 201343
The Future?

34. © Ricardo plc 201344
Investment opportunities ……

35. © Ricardo plc 201345
Investment opportunities …..
• Eco parks harnessing energy
– Manufacturers located around materials delivered, creating jobs, etc.

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. © 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. © Ricardo plc 201348
• My team are here to help
• Please come and share your opinions …..
Visit us on Stand 06M38

39. © Ricardo plc 201349
Good Morning!

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!