Circular Economy Conference Horsens, Denmark Industrial Symbiosis: Positive Action for Green Growth Peter Laybourn Chief Executive International Synergies Limited 29th November 2012

Contents What is Industrial Symbiosis? Commissioner Potočnik and IWCAIS National Industrial Symbiosis Programme (NISP) Innovation Recent Policy Activity International Growth New Applications Concluding Remarks

1. What is Industrial Symbiosis? How does ISL deliver this sustainability

What is Industrial Symbiosis? Numerous academic definitions... In essence: Industrial symbiosis is a systems approach to a more sustainable and integrated industrial economy that identifies business opportunities (often through innovation) to improve resource utilisation including materials, energy, water, capacity, expertise and assets

Elements of Industrial Symbiosis Network of diverse organisations Fostering eco-innovation and long-term culture change Addresses the market failure of information Yielding profitable transactions in: Novel sourcing of inputs Value added destinations for non-product outputs Improved business and technical processes Lombardi & Laybourn, 2012, Journal of Industrial Ecology 16(1):28-37

Illustrative Models of Industrial Symbiosis global national organic region facilitated Styria city IP Kalundborg – 1972 Styria – ?? BPS – 1996 Devens – 2000 China – 2001 NISP – 2002 Kicox - 2005 China local 6

Models of Industrial Symbiosis Differ in... Lifetime/Duration Driver/Initial impulse Role of facilitation Scale But share... Economic, environmental and social benefits Cross-sector engagement

2. International Working Conference on Applied Industrial Symbiosis (“Positive Action for Green Growth”)

Johnson Matthey, Alstom, Toyota, Ricoh, GIZ, URS Corporation, TATA, Dong Energy, Veolia, Landmark, Plastics Europe, Befesa Civils, McKinsey, HSBC, Noble Foods, TESCO and Birmingham City Council DG Enterprise (Commissioner Potočnik), DG Environment, EEA, UNEP, World Bank, Committee on Climate Change, John Elkington, OECD, Invest Northern Ireland, CBI and Forum for the Future Including practitioners from the UK, Australia, Brazil, China, Denmark (Kalundborg Symbiosis), Hungary, Korea, Mexico, Nigeria, Turkey and the USA

Four Global Themes Climate Change and Energy Security Eco-Innovation and Green Growth Materials Security Regional Economic Development Industrial Symbiosis has proven ability to deliver on these agendas

3. National Industrial Symbiosis Programme (NISP)

NISP: The Pathway To A Low Carbon Sustainable Economy ‘The Pathway To A Low Carbon Sustainable Economy’ charts NISP’s progress since becoming the world’s first national industrial symbiosis programme in 2005 It sets out the compelling argument that the business led NISP has the potential to fulfill a key role in the transition towards a low carbon sustainable economy Available to download at: http://www.international-synergies.com/images/pdfs/NISP_The_Pathway_to_a_Low_Carbon_Sustainable_Economy.PDF

Lifetime Impact (Max 5 year) NISP (England) Delivered Outcomes April 2005 - March 2012 METRICS In Year Benefits* Lifetime Impact (Max 5 year) Landfill diversion 9 million tonnes 45 million tonnes CO2 reduction 8 million tonnes 39 million tonnes Virgin material savings 12 million tonnes 58 million tonnes Hazardous waste eliminated 0.4 million tonnes 2 million tonnes Water savings 14 million tonnes 71 million tonnes Cost savings €243 million €1.21 billion Additional sales €234 million €1.71 billion Jobs 10,000+ ??? Private investment €374 million €40 million investment since 2005 *all outputs independently verified Rate Euro £1 = €1.18 13

Excellent Return on Investment April 2005 - March 2012 Unit Benefit Realised In Year Spend Lifetime Spend €1 new income generated for industry €0.02 €0.005 €1 saved by UK industry 1 tonne of virgin material saved €0.48 €0.100 1 tonne of water saved €0.40 €0.080 1 tonne of CO2 reduced €0.73 €0.150 1 tonne of waste diverted from landfill €0.64 €0.130 1 tonne of hazardous waste eliminated €13.74 €2.740 Rate Euro £1 = €1.18

Organisation: Regionally delivered, Nationally co-ordinated Began as three regional pilots in 2002/3 and went UK national in 2005 World’s first National Industrial Symbiosis Programme Regional practitioner teams across the UK Investment from UK and regional government (now in transition to a commercial model) Business-led Programme Advisory Groups (PAGs) Substantial benefits of a national model

Practitioners facilitate all stages of synergy International Synergies’ NISP Process Practitioners facilitate all stages of synergy

NISP has circa 15,000 Members KEY POINTS   Anglian Water Services Ltd BAE Systems Balfour Beatty Bombardier Denso Manufacturing Ltd Diageo Foster Yeoman HSBC Jaguar Land Rover Johnson Matthey Michelin Peel Group RICOH UK Products Ltd SITA TATA Toyota UK Coal Plc Veolia CORPORATES Alutrade Howarth Timber Engineering Arden Wood Shavings Befesa Salt Slags Jack Moody Holdings Bio Waste Solutions JBR Recovery BIP Oldbury John Pointon & Sons Ltd Coldwater Seaford Ltd Kingpin County Mulch LC Energy Delkia Bio-energy Lower Reule Bio Energy Farrow & Ball McGrath Barr Firth Rixson Castings MJ Allen G&P Batteries Montracon Giffords New Earth Solutions Glendale Grounds Maintenance Ramfoam Ltd Recycled UK GPD Developments Renewable Energy Growers Green Tech Ltd Guala Closures Ltd Teknor Apex H Sivyer Westland Horticulture Works infrastructure Ltd SMEs   Advantage Waste Solution Akristos Analytichem Angelheart Inc Arrow Environmental Blendcheck Ltd Clarkson Enterprises Dinano Ecoideam Enviro (Grimsby) Facility Water Management John Carson Innovations Kito Engineering Solutions Manufacturing Production Solutions Ross Miller Farm TVLI Waste Check Ltd Whitby Recycling Services MICROS KEY POINTS All sizes - Multi-nationals, SMEs, Micros, Entrepreneurs All sectors All resources SMEs represent 90% of membership 17

Workshops Facilitating the exchange of information and best practice between businesses Tried and tested, interactive business opportunity model Typically 50 - 60 organisations in one room Can generate 300+ potential synergies from a facilitated ½ day session

Opportunity Mapping

SYNERGie Management System On-line project and data management tool Information on resource and contact details New and stored historic data Bespoke report generating capabilities Vital support and management tool for practitioners Used in nine countries

Facilitated Synergies: Role of Practitioners Identify ‘IDEAS’ Make introductions Facilitate negotiations Provide technical expertise Mine the network for answers and opportunity Use their industry expertise and knowledge Encourage and accelerate synergy progress

Success Factors Practitioners Engagement Model Data Industrial expertise Long term relationship building & facilitation Marrying data & expert knowledge Working with the regulator and technology providers to ‘enable’ IS activity Engagement Model Extensive, diverse network Business opportunity programme History of exemplary performance Demand pull on innovation Data Quality NISP data & limited access to regulatory data

The Constituents of an Industrial Symbiosis Network Managed by International Synergies Practitioners Engages with businesses and regulators Facilitates synergies Delivers workshops Innovation Managers Connects industry to universities Facilitates knowledge transfer Embeds innovation within the network Academia Connect companies to research Supports post-graduate learning Valuable resource for Practitioners Business Members Recruited across all sectors 90% SMEs and Micros 15,000 in UK alone Business Champions Advocate for industrial symbiosis Commercial ‘steer’ to the programme Advice and guidance on delivery

Manchester Economics Report: Economic Impact Assessment (2005 - 10) Total Economic Value Added €1.8bn to €3.0bn, giving an investment multiplier of between 53.2 - 88.6 €175 million to €290 million to Treasury in direct receipts Benefit Cost Ratio in excess of 32:1 3:1 considered good by Government and 8:1 excellent by Regional Development Agencies 24

Manchester Economics Report: Conclusion NISP, having established the infrastructure to deliver the “symbiosis process” across industry, provides a strong foundation from which to increase the returns from public investment The triple line benefits achieved to date provide a compelling case for increased investment in the future 25

Case Studies

Case Study: A Fruitful Collaboration Companies: GrowHow UK (formerly Terra Nitrogen) John Baarda Ltd Summary: Ways of using ‘wastes’ from manufacturing plant to grow tomatoes all year round Achievements: 65 new jobs CO2 reduced by 12,500 tonnes pa Successful re-use of waste heat €17 million private investment in region

Ricoh disseminates best practice through NISP Ricoh adopts variable speed drive system - £5k investment brings positive rate of return in less than 8 months - Carbon reduction 50 tonnes per annum Best practice disseminated at NISP event to... 70 UK companies including many SMEs Technology adopted by GKN with £25k savings per annum and major carbon reduction EE best practice dissemination

Toyota disseminates best practice through NISP Toyota adopts energy efficient LED lighting across its facility - 16% reduction in electricity last year Best practice disseminated at NISP event hosted by Toyota to... 40 UK companies including Tesco, Next, Royal Mail and many SMEs Other companies now installing LED lighting Before: 42 x 400w (single fitting) After: 42 x 120w (single fitting)

Welcome to Michelin Paul Kinkead Environment Manager File reference : NISP workshop Author/Dpt: Paul Kinkead EP/ENV Creation date: 27/392010 Classification: D3 Retention: YC+3 Page: 30 /

Reduction in waste to landfill Corporate target to eliminate process waste to landfill Challenge: difficult materials to recycle 36 individual waste streams Use of benchmarking within Michelin Breakthrough : engagement with NISP to source creative and cost effective solutions Access to expert solution providers File reference : NISP workshop Author/Dpt: Paul Kinkead EP/ENV Creation date: 27/392010 Classification: D3 Retention: YC+3 Page: 31 /

Reduction in waste to landfill 97% reduction achieved Ballymena factory is the corporate benchmark Corporate targets achieved 18 months ahead of plan File reference : NISP workshop Author/Dpt: Paul Kinkead EP/ENV Creation date: 27/392010 Classification: D3 Retention: YC+3 Page: 32 /

4. Innovation

Industrial Symbiosis creates the space for innovation to happen “Innovation occurs at the intersection of expertise, diversity and opportunity driven by making novel connections” “An environment to promote creative serendipity* through the collisions of thoughts and ideas” *The Three Princes of Serendip Horatio Walpole (in a letter to Horace Mann, 28 January 1754)

Technology and Innovation: Eco-Innovation Exemplar Some potential synergies require innovative solutions - new technologies new applications for existing technologies Immediate demand pull on of R&D and technology innovation University of Birmingham studies have found a high level of innovation in synergies 50% involved best available practice 20% involved new research and development NISP is an EU Environmental Technologies Action Programme (ETAP) and OECD Eco-Innovation Exemplar

Closed-Loop Production OECD Identifies Industrial Symbiosis as Critical to Growth Agenda OECD has recently declared industrial symbiosis ‘a la NISP’ to be “an excellent example of systemic innovation vital for future green growth” Pollution Control Cleaner Production Eco-Efficiency Lifecycle Management Closed-Loop Production Industrial Symbiosis Production Process Green Products Eco-design New Business Models New Modes of Provision Mass Application Product & Service Organisational Boundary Incremental Innovation Systemic Innovation

Industrial Symbiosis Transforms Individual Businesses: John Pointon & Sons Ltd Pre - NISP: animal renderer inputs: carcasses, outputs: landfill, CO2 perception: dirty industry Initial NISP stage: animal by-products diverted from landfill to cement industry Second stage: improved efficiency of processes Third stage: move into bio-fuels utilising more by-product Fourth stage: move to anaerobic digestion and grid connection Current situation inputs: carcasses, organic residues outputs: energy and minerals Vision: clean energy company

5. Recent Policy Activity How does ISL deliver this sustainability 38

Recent European Policy and Action Best Practice under the European Waste Framework Directive (2009) Roadmap to a Resource Efficient Europe (2011) Sustainable Industry-Going for Growth & Resource Efficiency (2011) European Climate Knowledge and Innovation Community (2012) European Resource Efficiency Platform (2012)

Underpinning evidence to support policy: COWI Report (2011) Economic analysis of resource efficiency policies; “the National Industrial Symbiosis Programme has the maximum possible score based on economic and environmental benefits amongst 120 policies from 23 countries”  The report presents evidence to support a European-wide replication of NISP stating, “NISP shows high potential for improving resource efficiency, and the programme could be successfully replicated in every EU Member State” “NISP has significant implications for profitability…and provides for a long-term sustainable investment for growth”

Now Introduced into Industrial Policy... “The new industrial policy update to be launched this week will include practical proposals for industrial symbiosis schemes across Europe” Commissioner Potočnik, in a speech to the Business Europe Advisory Board and Support Group October 2012

6. International Growth

Replication…already happening Belgium Ongoing Essencia Brussels Country Status Project Region/State Client United Kingdom Ongoing NISP England, Scotland, N. Ireland & Wales Defra, Scottish Government, Invest Northern Ireland, Welsh Government Slovakia Complete Reducing Production Waste by Industrial Symbiosis Bratislavsky kraj ERDF Poland Ongoing EUR-IS Wroclaw Climate KIC Turkey Ongoing NISP Turkey Iskenderun Bay area BP China Ongoing Tianjin Economic Development Area Industrial Symbiosis Network Tianjin European Union Switch Asia Hungary Ongoing NISP Hungary Kozep-Magyarorszag, Budapest European Union Life+ Climate KIC Romania Complete ECOREG Suceava European Union Life+ South Korea Ongoing Co-operation on Eco-Park Development China Complete Pilot Project – Circular Economy Yunnan Province Defra – Sustainable Development Dialogues Mexico Complete NISP Mexico Toluca Lerma Defra – Sustainable Development Dialogues Brazil Ongoing NISP Brazil Minas Gerais Defra – Sustainable Development Dialogues Al-Invest South Africa Complete South Africa Industrial Symbiosis Pilot Programme Gauteng Province Defra – Sustainable Development Dialogues

Other current interest... A question of competitiveness? Argentina Australia Canada Chile (starts December 2012) Cuba Finland Italy (Sicily) Province of Limburg, Netherlands Western Cape, South Africa

Chinese President Hu Jintao 18th Party Congress, November 2012 “We will have a large scale circular economy and considerably increase the proportion of renewable energy resources in total consumption...” “ We must give prominence to building a resource –conserving and environmentally friendly society...” Incoming President Xi Jinping is expected to continue this path

Key tasks to introduce a circular economy to China identified as: Optimise spatial layout Optimise industrial structure Realise zero emissions through supply chain optimisation Efficient utilisation of resources Centralised treatment of pollutants Green infrastructure Standardisation of administration, operation and management of parks We are aware of some key tasks to introduce a circular economy (as provided for by the circular economy law) to China

China International Green Innovate Products & Technologies Show, 9-11 November 2012, Guangzhou International Synergies Limited invited to present Ministries of Commerce, Environmental Protection, Science and Technology attended Directors from 51 Ecological Industrial Parks (EIPs) Industrial Symbiosis seen as key to future development of EIPs Further meetings early 2013 with TEDA (probably largest EIP in world) for a multi-province industrial symbiosis programme Delighted to be hear presenting on industrial symbiosis on behalf of Peter Laybourn who unfortunately at the last minute was unable to attend

7. New Applications 48

Inward Investment Paper Sludge & Ash Water Waste Paper Incineration Paper Co Water Rejected Loads Incineration ORM Crestmont Indigo Waste Vermiculture Aggregate Production Construction HotRot Organic Solutions Greenview Technologies Biogen Donarbon Waste Paper Gulf Star Oil Revalue Technologies Plasgran Chase Plastics Screening Materials Newport Paper Pearsons M W White Viridor Shred Secure Control Group Kelstone Recycling Anglian Confidential Bywaters May Gurney Power Soil Conditioning Organics Plastics BHM Sutton Services GKL Northern Milbank Dickerson Group Centrico RTAL Alternative Use PREL Minergy Advanced Plasma Power Waterwise Anglian Water Bettaland Freedom Recycling AWO Bedford Localfast Akristos Hanson Aggregates Eco Aggregates Southfields Group S Walsh Tarmac Recycling Paper Sludge & Ash Operating costs 30% lower than anticpated

Regional Economic Development 2011: Birmingham Big City Plan Tyseley Environmental Enterprise District - Framework for Action (May 2011) Birmingham’s priorities for Tyseley: “Support businesses and organisations to capitalise on low carbon opportunities and maximise industrial symbiosis” International Synergies Limited commissioned to produce report (completed October 2012)

Industrial Symbiosis Opportunities for Tyseley Environmental Enterprise District

Industrial Symbiosis Opportunities Identified for Tyseley Two main themes: Metals recovery (including rare earth metals) Low-carbon fuels Three time frames: Today – both partners and resource flow exist Tomorrow – technology is known but a partner is missing Future - innovation potential Future Vision: Develop an integrated resource recovery system with an innovation centre

8. Concluding Remarks

How Far We Have Come 2004: Industrial Symbiosis as Novelty

How Far We Have Come 2010: Financial Times Managing Climate Change One company’s waste may turn out to be suitable fuel for another, says Sarah Murray “If companies can make use of waste, it will be a big benefit” Dax Lovegrove

2012: Nature Climate Change How Far We Have Come 2012: Nature Climate Change 2012: Assessing industrial symbiosis’ contribution to climate change mitigation and energy security

How Far We Have Come 2012: Energy Delta Institute

What Next? Industrial symbiosis has over a period of time has a track record and is recognised as having reduced waste, carbon dioxide, water-use etc and we are just scratching the surface of possibility (demand led) Time for industrial symbiosis also to be used to its full potential to contribute to the circular economy through: Systemic innovation leading to green growth and pro-active low carbon economic development delivering green jobs All of the above can be accelerated by a Pan European Network

Thank you for listening Peter Laybourn Chief Executive International Synergies Limited t: +44 (0) 121 433 2660 dl: +44 (0) 121 433 2667 peter.laybourn@international-synergies.com www.international-synergies.com www.nispnetwork.com Thank TEDA and audience