1. The Changing Face of Waste and Resources in the UK 21 st March 2009 Peter Jones, OBE ecolateraljones@btinternet.com UKWIN AGM

2. Why are we Here? Regulatory and climate drivers Landfill uneconomic New technologies Market expectations Energy policy = Opportunities

3. The Three Musketeers of Policy Implementation ECONOMICS TECHNOLOGY ATTITUDE

4. Waste in the UK Source: DEFRA

5. Process Change Market Change Technology Change Drivers in the Waste Resource Sector (=Composition/Mix Impacts) Waste Minimisation IPP Composition Shifts Energy Integration Composting Recycling

6. Great Britain - Waste Sectors Total Value £8bn (including taxes)

7. Source: DEFRA, Environment Agency, Water UK Total arisings, 430 million tonnes Estimated Total Annual Waste Arisings, By Sector Total = 428 million tonnes UK – Arisings by Sector 2008

8. Convergence in the Waste Industry Shanks5% Leigh3% Biffa3% Cleanaway3% UK Waste2% Biffa14% Sita12% Veolia17% WRG11% Pennon 8% 1992 2007 Source: Biffa Market size £3bn Market size £5bn/€8bn

9. Arctic Ice Melts at Record Levels This satellite image shows the Arctic sea ice spread on September 21, 2005, when it dropped to the lowest extent yet recorded. The yellow outline indicates where the concentration of ice was as of September 21, 1979. Source: AFP

10. Stern Messages We are close to a tipping point New opportunities and growth Opportunities for UK Improved policies in – Carbon pricing and technology efficiency – Carbon measurement and Dataflow – Removing blockages The global dimension Attitudes to discounting

11. RDAs WRAP Business Links NISP Resource KTN Carbon Trust Envirowise Environment Agency REMADES RTABs Envirobusiness The Support Maze

12. Tradeable Green Certificates (ROC's) Renewables Obligation Carbon Offsets Tax on Energy supplied to Industry (0.43p / kWh) Carbon Trust (£27m) Renewable Energy (£13m) Agriculture Energy Crops (£4m) Energy Efficiency Fund Enhanced Capital Allowances (£100m) 80% Discount on CCL Steelworks Brickworks etc Negotiated Agreements Climate Change Levy Voluntary Emission Cap Agreements UK Climate Change Programme Joint Implementation % of £ 30m fund Emission Cap Domestic Scheme International Scheme Emissions Trading Flexible Mechanisms Kyoto Agreement Climate Change Programme Route Map

13. Why is Landfill so “Cheap”? Landfill Costs Per Tonne New Technology Labour & Operations Gross Margin Acquisition & Aftercare LabourMaintenance Margin & Cost Of Capital £50/Tonne £12/Tonne

14. Categorising Instruments Lo Price/ Quantitative Drivers on Supply of Product or Service Hi Virgin Input Taxes Incineration Directive Landfill Permits Landfill Directive Planning Consents CCL IPPC Renewables Obligation Abstraction Charges Licensing Discharge Consents Best Value PFI Recycling Credits Regulatory Fees Producer Responsibility VAT Landfill Tax Contract Conditions WRAP Fuel Duty Quantity/Price Impacts on Demand for Product or Service

15. Timing the Landfill Transition 2007 19972000200220042006200820102012 10 20 30 40 50 60 70 80 90 100 Tonnes to Landfill (millions) £ Gate Fee 10 20 30 40 50 60 70 80 90 100 Operator Fee per tonne Gate Fee per tonne Tonnage Inputs ?

16. The Yellow Brick Road

17. The Carbon Competitors Landfiller Energy Boy Composter Long term - Handicaps - Planning Consents - Taxes - Better odds elsewhere - Traded Permits - Renewable targets - Import dependency on rivals - Rising logistics costs - High value prizes - Improving technology - EU targets - Energy trends - High value prizes - Traded Permits - Producer reuse Form Early Faller Expensive Thoroughbred Regular Winner StayerGood Value All Rounder - Low value prizes - Staying power - Plenty of local runners - Cheap setup - Soils directive - Low distribution costs

18. The Resource Balancing Act Destroy or Preserve Logistics Technology North North West South East Midlands South West Wales Scotland

19. Waste Plastics Fibres Metals From Waste to Product …

20. US Energy from Agricultural Digestion StateYearScaleInstalled cost £k California19821,650 sows140 California1986550 sows50 Virginia199360 sows60 Colorado19995,000 sows240 Connecticut1997600 milkers300 Iowa19995,000 sows360 Minnesota19991,000 milkers200 Iowa19992,800 hogs160 Total US farm energy output = 1 million Mwh Avoided methane = 4,800 tonnes Avoided carbon equivalent = 27,500 tonnes Source: US EPA

21. 0 25 50 75 100 £ Per Tonne 10,000 TPA50,000 TPA100,000 TPA Tonnes 76 94 44 54 Source Separated Capital OPTG & Profit Mixed Waste SS OPTG Capital MW OPTG Capital 40 46 Sales Value Digestate£0.6 – 0.3/tonne Methane£4.2 – 3.2/tonne Source:Whyte & Perry, Enviros Canada, Biocycle Tonnage/Cost Ratios Aerobic Digesters

22. Bedfordia Biogen Plant, Milton Ernest Source: BIOGEN

23. Biffa-Leicester MHW Treatment New cascade ball mill-Bursom

24. Willesden: A Typical Shredder Licensed, paved and full drainage Rail sidings and loading equipment Weighbridges, offices and communications Experienced management and data handling 350,000 tpa vehicles and white goods & other light iron Source: EMR

25. Source: Teg Environmental

26. Wanlip – Bio Filters

27. MBT in Action: Waste is Shredded at Ecodeco’s Montanaso Plant in Italy

29. Source: DEFRA, Environment Agency, Water UK Total arisings, 430 million tonnes Estimated Total Annual Waste Arisings, By Sector Total = 428 million tonnes UK - Arisings by Sector 2003

31. Central Bottling Overview of tank system where digestion occurs

32. Biowaste Pre- treatment Anaerobic Digestion Post- treatment Biogas Electricity CHP Heat Biofertiliser Flue Gases Source: Greenfinch Biogas Plant

33. Mixed Biowaste AD Plant in Sweden Source: Greenfinch

34. Source: Greenfinch (October 2005)

35. Japanese Gasification Technologies Kazusa, Japan, Nippon Steel, 2002, 60,000 tpa Aomori, Japan, Ebara, 2001, 135,000 tpa (ASR) Kawaguchi, Japan, Ebara TIFG, 2002, 125,000 tpa Toyohashi, Japan, Mitsui R21, 2002, 120,000 tpa Source: Juniper

36. Gasification Plant – Isle of Wight

37. Marchwood EFW 165,000 tpa Source: Veolia

38. Cement Plant Source: Buxton Lime Industries (UK)

39. The Lights Go Out??? Source: DTI

40. The RO – Effect on Diversity Planning Applications ———————————— R O designed —— Source: REA

41. Meeting the Energy Challenge 0 200 100 Each wedge = 17 TWh 5000 x 500kW CHP units +18% fuel economy for all cars 4 x 800 MW nuclear reactors 2500 x 500kW biomass CHP 5000 x 2MW wind turbines 200 million X 1m 2 PV panels 1 Severn Barrage 10% transport biofuels TWhr 20062020

43. Energy and Carbon Efficiency Linkages A Rate of transition B Scale of transition C Investment in transition Renewable producers 1 Existing producers 2 Domestic consumers 3 Commercial consumers 4 Government enactors 5 MOTIVATOR AUDIENCES = trigger point

44. The Regional Route Map Define the energy sink That defines the energy need That defines the technology That defines the ‘fuel’ mix That defines the logistics That defines the collection discipline

45. Carbon Recycling Soils Materials Heat and steam Electricity Gas-methane-town gas-hydrogen

46. Changed Added Value in Waste Today 2010 +Collection fee -Transport -Landfill A Living +/-Collection fee -Transport -Landfill +Renewable energy +LATS +Product fee +Tradeable Permits on products +Producer Responsibility recharges -Shipping and handling ?

47. New Alliances in Carbon Efficiency Solutions & ESCOs Technology Skills Grid Backup Grid Inputs Regulatory Risk Infrastructure Energy Suppliers Contracts Locations Economic Role in Communities Carbon CSR Agenda Forward Price Uncertainty Electrical & Heat Users Rising Gate Fees Process Technology Conditioning Technology Supply Chain Strong Balance Sheets Waste & Resource Logistics Technology Suppliers

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