1. Henrik Lund-Nielsen, CEO, MBA Gypsum Recycling International A/S Denmark, Europe Gypsum waste can and should be recycled not wasted in landfills

2. Agenda 1.C&D and gypsum waste in landfills around the globe 2. Gypsum waste is problematic in the landfills 3. Benefits of recycling of gypsum waste 4. Successful policy instruments 5. Our proven gypsum recycling solution

3. Cows??????

4. Cows and the approach to the utilization of resources found in the waste SOCIALIST APPROACH: You have two cows …. You decide to give one to your neighbor ! COMMUNIST APPROACH: You have two cows …. The State takes both and gives you some milk ! BUREAUCRATIC APPROACH: You have two cows …. The State takes both, shoots one, milks the other, and then throws the milk away ! FRENCH APPROACH: You have two cows …. You go on strike, organize a riot, and block the roads because you want to have three cows and feel that you rightfully deserve them ! AMERICAN APPROACH: You have two cows …. You sell one, and force the other to produce the milk of four cows. Later, you hire a consultant to analyze why your only cow suddenly has dropped dead ! You decide to sue your vetenirarian !! GERMAN APPROACH: You have two cows …. You re-engineer them so they eat once a month, and milk themselves ! ITALIAN APPROACH: You have two cows … but you don't know where they are. You decide to have lunch ! JAPANESE APPROACH: You have two cows …. You re-design them to miniature cows that can produce 20 times the milk of bigger cows ! AUSTRALIAN APPROACH: You have two cows …. Business seems pretty good. You close the office and go for a few beers to celebrate ! GRI APPROACH: You have two cows …. You clean them up to make them attractive to each other. They produce multiple baby cows that you can milk for many years !!!

5. Summary Traditionally, in most countries gypsum and plasterboard waste has been landfilled mixed with other waste fractions Some countries, mainly European, have found out that this is not the way to go for many reasons: –Landfills are running out of space –Gypsum waste is particularly problematic to landfill –Landfilling gypsum waste does not utilize the ressources found in the waste Gypsum Recycling International has successfully developed and for more than 10 years operated a technology that fully recycle gypsum plasterboard waste and utilize all the ressources found in the gypsum waste Both fractions: –the gypsum and –the paper from the gypsum waste, is recycled for a 100% recycling rate

6. C&D and gypsum waste in Landfills Around the Globe C&D waste is the largest or second largest waste fraction in most landfills around the globe (in Hong Kong accounts for 25%) Gypsum plasterboard/ wallboard waste is in most countries one of the 3 largest fractions of the C&D waste landfilled The fraction is growing due to the continued increase in the manufacturing and consumption of plasterboard (particularly in Asia) As gypsum waste cannot be incenerated (due to the generation of sulphur dioxide, a toxic gas) landfilling is the most typical disposal route in countries where recycling of gypsum does not occur  Worldwide it is estimated that 15 million tons of gypsum waste are landfilled, but as gypsum waste is eternally recycable this does not have to be the case !

7. C&D and gypsum waste in Landfills Around the Globe C&D waste is one of the easiest fraction of waste to recycle Consequently there is no need to landfill it nor to incinerate it, especially as all the „hard“ fractions of C&D waste does not burn In the most recycling oriented countries, like the Scandinavian countries of Denmark, Norway and Sweden, and in the Benelux (Belgium and the Netherlands) recycling rate for C&D is typically around 95% Why use scarce landfilling space on a waste fraction that is so relatively ease to recycle ??? A change of mindset is required !! –Hong Kong, with 1 million tons of C&D landfilled per year, is landfilling more C&D waste than all the other countries mentioned above ….. together !

8. Gypsum waste is problematic in the landfills Landfilling gypsum waste make the landfills fill up faster -> landfills reach their full capacity (in Hong Kong by 2015, 2017 and 2019) -> very dificult to extent or build new landfills anywhere in the world Gypsum waste will contaminate the ground underneth the landfills with sulphur (gypsum conatins 36% sulphur) including also drinking water reserves, if not landfilled in landfills with proper liner and leachate management systems (not an issue in Hong Kong, but many other places) Gypsum waste generates hydrogen sulphide gas (H2S) in the landfills if the gypsum waste is not landfilled in a separate cell where no organic waste is present H2S is lethal in large concentrations, and deaths cases have occured in landfills due to H2S As a consequence: –Some states in the US and Canada have implemented a ban on landfilling of gypsum waste –the EU has implemented regulations requiring that if landfilled, the gypsum waste is landfilled in a separate cell where no organic waste is present Landfilling the gypsum waste lead to that the resources found in the gypsum waste are literally wasted instead of being utilized

9. Benefits of Recycling Gypsum Waste Gypsum is eternally recycable without loss of quality, due tot the chemical nature of the material Recycling generates local green jobs; landfilling does not require a lot of labor, recycling does Recycling of gypsum waste in many countries lowers the import of expensive gypsum raw materials from abroad (in Japan for instance) Recycling helps the local gypsum industry to obtain raw materials at a lower cost For each ton of gypsum waste that is being recycled instead of landfilled 0,2 tons of CO2 emissions will be saved The Scandinavian and Benelux countries have achieved recycling rates of gypsum waste ranging from 50-85% and the recycled gypsum generated account for 25% of the gypsum raw materials used by the local gypsum plants

10. Successful policy instruments: Policy Instruments that do NOT work Low or no landfill tax Soft requirements like –“best efforts” –“to the greatest extent possible” Regulations without enforcement; –No inspections –No tough financial penalties “Social contracts” with the public, the waste sector or construction sector  Why ?  Because the waste industry is a „for profit“ business and the operator with the lowest costs will prevail (also if this is caused by that the operator does not follow the regulations)  Consequently recycling will only happen if  it makes economic sense to do it  the authorities assure that operators not recycling will be penalized

11. Successful Policy Instruments A high Landfill tax ; –All studies of the recycling rates and landfill tax in various countries have found that a very positive correlation between high landfill tax and high recycling rates exist –The landfill tax in Scandinavia and Benelux is averagely 80 USD / ton High landfill prices; If government controlled landfills, the landfills should price in the lifetime cost of landfilling, not just the direct cost. (The direct cost of landfilling 1 ton in Hong Kong is app. 65-70 US dollars; –The lifetime cost is probably twice as high – Is this reflected in the present prices at landfills in Hong Kong ?) – The average landfill price in Scandinavia and Benelux is around 200 USD/T A high incineration price and tax – to avoid C&D waste is sent to incineration, when it can be recycled instead Required on site segregation (into containers for the different waste fractions) at building sites above a certain size of a certain minimum percentage of the waste generated (typically 60-70%). Requirement for obtaining building permits that a waste plan describing how 70% recycling of the waste made during the building project can be achieved, coupled with requirement to report on the volume of waste sent to recycling after the project has been completed Ban on landfilling of specific waste types, that are recyclable Strong culture of inspections, enforcement and penalties towards the construction and especially the waste sector

12. Worldwide the leading recycler of gypsum/plasterboard waste The preferred partner for recycled gypsum raw materials for the top 5 plasterboard manufacturers in the world Driven by new innovative solutions –Mobile gypsum recycling system –Own specialized collection system for gypsum waste Active in 9 countries on 3 continents, including the US and Japan Recycling units in Europe, North America and Asia Only focused on gypsum/plasterboard waste Winner of numerous environmental awards, a.o. the “The Recycler of the Year” in Sweden and the prestigious Cleantech Award; given to “The most promising Danish Cleantech Company” About Gypsum Recycling International A/S: Summary

13. Gypsum Recycling System (since 2001) 90% 10%

14. In Cooperation with the Best Knauf Gyproc/ Saint-Gobain Siniat/ Lafarge US Gypsum National Gypsum GRI serves all the top plasterboard groups in the world. Multiple different plants are under contract with GRI for the supply of recycled plaster- board waste.

15. Traditional Gypsum Waste Recycling (the 2001 solution) 100% gypsum waste 90% RC gypsum powder10% paper fraction Only the gypsum resources found in the waste were fully utilized until now Paper fraction was not used as a paper until now, but instead for incineration, composting etc

16. Completely in line with the EU‘s ambition of utilizing all the ressources found in watse  Co-funded by the Eco-innovation Initiative of the European Union  Investment of more than 2,2 Mio € split between EU and GRI New Gypsum Paper Recycling Solution gypsum wasteRC paperRC gypsum powder100% recycling

17. New Gypsum Paper Recycling System

18. Previously and Now Previously Now 95% RC gypsum powder 5% RC paper 100% gypsum waste 90% RC gypsum powder10% paper fraction 50% RC gypsum powder50% RC paper 100% gypsum waste 90% RC gypsum powder10% paper fraction End result

19. Gypsum waste is filling up scarce space in the landfills This space could be used for other non- recycable materials instead Gypsum recycling is beneficial economically, environmentally and it generates green jobs All resources found in plasterboard waste can be fully utilized and nothing is wasted The question is not whether to recycle gypsum waste or not - the question is when do you start? Closing Remarks

20. Henrik Lund-Nielsen, CEO, MBA Gypsum Recycling International A/S Denmark, Europe Gypsum waste can and should be recycled not wasted in landfills