AcuComm’s Waste Investment Review 2019

AcuComm has published its Waste Investment Review 2019, a complimentary 22-page summary of newly-announced waste and waste-related investments during 2019.

During 2019, AcuComm identified 917 major new investments in the global waste and waste-related sectors. That’s nearly three new investments per day. These represented a total estimated value of US$54.9 billion, or US$60 million each on average. These account for an estimated annual feedstock capacity of 195 million tonnes, equal to 212,610 tonnes each on average, or 664 tonnes per day (using a 320-day year). An estimated 529 investments involved the generation of electrical power and/or heat in some form, equal to 58% of the total. The total estimated power/heat generated from these projects is 12,635 MW, or 24 MW each on average.

The data in the report is taken from AcuComm’s proprietary Business Database. This is a database of projects compiled and maintained by us on a daily basis. The information in it is not readily available from any other source. Our analytics use a combination of reported and modelled data. We collect many thousands of points of data regarding investment values, project capacity, power output and likely timescales. This enables us to build models for determining these values on an industry-wide and industry-specific scale. As a result, we are able to provide comprehensive analytic data which remains firmly grounded in ‘real world’ information.

All of AcuComm’s clients receive this report automatically uploaded to their customer account. 

Not an AcuComm customer? Feel free to contact the report’s author and Chief Data Analyst, Andy Crofts, for further details ([email protected]) or Senior Editor, Ian Taylor ([email protected]).

Where now for waste in the UK?

The UK general election held on December 12th has produced the first stable majority government in the country since 2010, and the first such Conservative majority government since the mid 1990s. That prospect may of course thrill you or leave you deeply apprehensive. But one fact is inescapable; with a parliamentary majority of 80, Prime Minister Boris Johnson has an opportunity to reshape policy over the next five years, in more or less whatever way he wishes.

What might the effects of this be for the waste management industry? In the near and medium term, I suspect quite limited. The Conservative manifesto for the election makes only a handful of references:

‘We will continue to lead the world in tackling plastics pollution, both in the UK and internationally, and will introduce a new levy to increase the proportion of recyclable plastics in packaging. We will introduce extended producer responsibility, so that producers pay the full costs of dealing with the waste they produce, and boost domestic recycling. We will ban the export of plastic waste to non-OECD countries, consulting with industry, NGOs and local councils on the date by which this should be achieved.

‘…We will increase penalties for fly-tipping, make those on community sentences clean up their parks and streets, and introduce a deposit return scheme to incentivise people to recycle plastic and glass.’

Recycling and better use of plastics heads the field. None of these proposals is new, and many of the details have yet to be fleshed out. It will be interesting to see which, if any, of these, will be covered in the next Queen’s Speech (which, while neither binding nor necessarily comprehensive, details the government’s legislative agenda for the coming year) due in the coming days.

There’s clear commercial opportunity here for anyone involved in the plastics recycling industry, in two principal ways. Firstly, the promotion of greater recycling should spur the development of technologies to this end, in manufacturing, sorting and recycling of plastics.

Secondly, the government has flagged greater controls on exports of plastic waste, with a proposed ban on shipments to developing countries. This is in line with developments under the UN Basel Convention, which I looked at the other day. (https://www.linkedin.com/pulse/lucky-97-basel-amendment-andy-crofts/) To date, the UK has shipped a lot of plastic waste abroad, to China until 2018 and thence to a range of countries in Asia and Africa. If this trade stops, then this provides a strong incentive for the development of greater domestic capacity. This driver is not UK -specific, but global; for example, I recently looked at Brightmark, a company looking to do just this in the USA. (https://www.linkedin.com/pulse/making-plastic-waste-valuable-turn-fuel-andy-crofts/). The opportunities are becoming global.

So much for plastics, what about the wider waste industry? In the past few years it has become harder to build new Waste-to-Energy plants in the UK. This follows a decade or more where new WtE was seen as the best replacement for landfill. The government cut funding for investment projects a couple of years back, citing the achievement of its landfill reduction aims. You can agree with that or not, but this has, I think, tended to lead to a drive for larger facilities with greater economies of scale and therefore greater likelihood of profitable commercial operation. This in turn brings greater risks in negotiating an already lengthy planning process. One such project is the 500,000 tonne per year facility planned in Andover, Hampshire, where a planning decision is due in 2020. Other plants have already been cancelled on planning grounds, such as Hoddesdon, Hertfordshire, where a 350,000 tonne plant was due to be built by Veolia, but was refused planning in February 2019.

I wouldn’t expect the new government to rush to change this harder approach to the WtE sector. It is keen to burnish its green credentials – a slightly surprising ban on fracking was announced earlier this year – and greater investment in large WtE projects probably doesn’t fit that agenda, however unfair this may be to the modern technologies now employed.

What will happen then? It may well be that small is beautiful. One new British company caught my eye recently. Heru is based in Stratford-upon-Avon, and is developing a series of small-scale WtE units that can potentially be used by businesses or even domestic homes to dispose of waste and generate power from it. Questions remain to be answered about cost-effectiveness and energy efficiency, but on paper such an approach looks game-changing if the numbers can be made to work. Test plants are in operation, with a six month trial concluding in September this year. A WtE plant in every home? It’s an intriguing idea.

And I haven’t even mentioned Brexit. Sterling rallied on news of the Conservative victory, and there is now the prospect of a more stable and orderly UK exit from the EU beginning next month. Quite where that transition will end up is open to question, but business planners will be glad to put the political horror show of the past couple of years behind them. The short term effects of Brexit on the waste sector should be muted. Trade in waste products between the UK and EU will continue, following agreements reached over a year ago, and fears of logistical difficulties at the ports will surely now recede as Johnson’s EU deal passes the new parliament in the coming weeks. In the longer term, there is scope for the UK to develop environmental approaches which differ from the EU. This is unlikely to be a political priority, however, and if it does happen will more likely be in areas of conservation unrelated to the waste sector.

Andy Crofts – Chief Analyst, AcuComm

Pre-flight coffee and biofuel

London Stansted Airport in the UK is set to become the first airport in the world to convert all its coffee grounds to solid biofuels after a successful trial with Cambridgeshire-based bio-bean, which claims the title of the world’s largest recycler of coffee grounds.

Passengers at London Stansted drink over six million cups of coffee a year as they pass through the terminal, creating over 150 tonnes of coffee waste. The partnership, which will begin on 21st October 2019 will see all 21 of the airport’s coffee shops, restaurants and bars segregate all spent coffee grounds before being transported to bio-bean’s hi-tech processing facility near Huntingdon, Cambridgeshire.

The grounds are then converted into Coffee Logs, each made from the grounds of around 25 cups of coffee and used in domestic wood burners and multi-fuel stoves. Recycling coffee grounds this way saves 80% on CO2 emissions than if they were sent to landfill and 70% than if they were sent to an anaerobic digestion facility and mixed with food waste.

Dealing with the waste grounds and disposable cups from global coffee consumption is a mammoth undertaking, with an estimated 2.25 billion cups of coffee being consumed each day. AcuComm’s WasteView database currently includes 16 projects featuring coffee-related waste.

The Maldives: Dealing with MSW in paradise

The Maldives is a vast archipelago in the Indian Ocean. It is sparsely populated, having less than half a million people. Income per person is relatively high, estimated by the IMF at US$14,571 in 2019. This level of income has been attained rapidly over the past couple of decades, and is almost entirely due to the growth of tourism.

This rapid growth has given the Maldives a municipal waste problem, as tourism and rising income levels have led to more waste being generated. Additionally, more of that waste comprises plastics, metals and hazardous materials, and is therefore harder to deal with. To this can be added the country’s geography. Large numbers of small widely-dispersed islands present a quite different challenge to, say, a single large city. As we have seen in other developing parts of the world, there is simply no infrastructure to deal with this.

As a response, Thilafushi, a coral atoll, was designated as a landfill island as long ago as 1992, although most of its growth has taken place in the past decade. It takes anywhere between 300 and 800 tonnes per day of waste (statistics are scarce and reports contradictory). This is supposed to be sorted and sent to different areas of the island, although uncontrolled dumping and burning seems to be the norm in practice. The volume of waste has become too large to be properly accommodated, and much leaks back into the surrounding waters. This naturally matters on environmental grounds, and even more so since Thilafushi is only a few kilometres from Malé, the main island and capital of the Maldives.

maldivesSource: Bing Maps. Click here for the precise location online.

The two photographs below show Thilafushi in 2005 and 2019. The southern part has been greatly extended by the landfill site as the volume of waste creeps around the lagoon.

googleearth googleearth2Source: Google Earth Pro

Thilafushi was intended to solve the Maldives’ waste problem, but its inadequacy has become a scandal in itself. The Maldives’ government, spurred by environmental pressures and the need to preserve the country’s reputation as a tourist paradise, has made fitful efforts to improve the situation. Management of the island has, in theory, improved with the creation of Waste Management Corporation Limited (WAMCO) with a mandate to provide a sustainable waste management solution throughout the country. In January 2016, WAMCO officially took over waste management for Malé region. This includes the daily transfer of waste from Malé to Thilafushi and the resulting disposal of waste there.

Greater use of WtE incineration has been the preferred means of alleviating the problem, although until recently little had been achieved, with various plans coming and going without success. In September 2019, the government announced that three small incinerators currently based on Thilafushi will be dismantled and rebuilt on islands on other parts of the country. These are tiny, with daily capacity of four tonnes each, and would appear to be part of a move to dispose of waste in situ rather than ship it to Thilafushi, which will of course lose incineration capacity in the meantime. The move should be completed in early 2022.

The move anticipates a more significant development for Thilafushi, which is the construction of a proper WtE facility there. On 23rd May 2019, the Asian Development Bank (ADB) issued a General Procurement Notice for the Greater Malé Waste to Energy Project. The Ministry of Finance, on behalf of Ministry of Environment, has published an Invitation for Prequalification for sealed bids to design, build and operate a waste-to-energy facility at K. Thilafushi (Reference Number: (IUL)13-K/13/2019/148, Project Number: TES/2019/W-073). The deadline for submission of applications was extended from 18th July to 4th August 2019. This contract will be jointly financed by the ADB, Asian Infrastructure Investment Bank and the Japan Fund for Joint Crediting Mechanism. It is expected that the Invitation for Bids will be made in November 2019. Details on the scope of the project are currently not available, but its progress can be tracked on the ADB website here.

2019 has also begun to see some positive developments elsewhere. On 22nd July 2019, the Maldives began generating energy from waste for the first time, through a facility opened in Vandhoo, Raa Atoll. Funded via concessional loan assistance from the Abu Dhabi Fund for Development (ADFD) and the International Renewable Energy Agency (IRENA), the Vandhoo Regional Waste Management Centre was established in order to manage waste from the Atolls of Noonu, Raa, Baa and Lhaviyani.

 

Bioenergy Leads Renewable Generation in UK in Q2 2019

At the end of September 2019, the UK government released the latest Energy Trends statistical report which reveals that energy production from bioenergy and waste rose by 10.4% during the second quarter of 2019 when compared to the same period of 2018.

The increase in output is attributed to increased capacity, with an 8.5% rise in plant biomass capacity primarily due to the biomass conversion of Lynemouth power station and the conversion of another unit at the Drax Power Station in Selby, North Yorkshire.

Electricity generation from bioenergy increased by 7.2% 9.2 TWh over the second quarter of 2018. The increase in generation from plant biomass was partially offset by reduced generation from landfill gas and anaerobic digestion.

Bioenergy accounted for the largest share of the UK’s renewable generation during the quarter, at 34%, ahead of onshore wind at 22%, offshore wind at 22%, solar photovoltaics at 18%, and hydro at 3.5%.

AcuComm’s WasteView database has details of 867 active biomass energy plants, 133 landfill gas plants and 1,102 anaerobic digestion plants, valued at a total of US$88,326 million.

Recycling lithium batteries

Lithium batteries have been around for nearly 30 years now. They are used increasingly in a wide range of product, from phones to electric vehicles to aeroplanes. They have the advantage of being easily rechargeable and generate more power than older battery technologies. They do, however present specific risks when being disposed of; they are more easily flammable, and a lithium-based fire is not easy to put out. As more products and vehicles containing these batteries come to the end of their life, waste operators are having to take more care in identifying and sorting them from general waste streams. It’s a new area, but in the past few years, efforts have begun to be made to better understand how lithium batteries can be safely dealt with and recycled.

A search of the AcuComm database reveals a handful of dedicated lithium battery recycling plants around the world. Australia opened its first such facility in 2017, when Envirostream began operations in Melbourne. Its processing line can process 40 tonnes of batteries per month. The process requires batteries to have all their energy discharged prior to any handling by the company’s staff. After this first step, all batteries are granulated in an environment of negative pressure to ensure that all airborne dust particles are captured. Cobalt, nickel and lithium, which are in dust form and mixed, go for further processing and can be separated and purified to be used again in battery manufacture.

In Japan, a facility dedicated to recycling lithium batteries from electric vehicles opened in Namie, Fukushima Prefecture, in 2018. The plant is operated by 4R Energy Corporation, a joint venture between Nissan and Sumitomo. The availability of used lithium-ion batteries is expected to increase significantly in the near future as buyers of the first generation of electric cars look to replace their vehicles. The batteries recycled and refabricated at the factory will be used to offer the world’s first exchangeable refabricated battery for electric vehicles.

Another approach is the better sorting of lithium batteries from the general waste stream, or indeed to sort them from other battery types. For example, In 2017, Refind Technologies installed its OBS600 optical battery sorting technology at Raw Materials Company’s (RMC) recycling facility in Port Colborne, Ontario, Canada. The equipment is capable of sorting 600 kg of batteries per hour. The OBS600 machine uses a camera and machine learning software to recognise each battery by its label. It can handle small consumer batteries of cylindrical and rectangular shape and can sort them by chemistry, including alkaline, zinc-carbon, nickel-metal hydride, nickel-cadmium and lithium primary.

Finally, a couple of major R&D centres have recently been announced, to investigate ways to recycle lithium batteries and other hard to process e-waste items. In February 2019, the US Department of Energy’s Vehicle Technologies Office opened the first lithium-ion battery recycling research and development centre at Argonne National Laboratory in Lemont, IL. Known as the ReCell Center, the project aims to reclaim and recycle critical materials from lithium-based battery technology. The recycling centre focuses on cost-effective recycling processes to recover as much economic value as possible from spent batteries.

Soon after, in March 2019, Singapore’s Nanyang Technological University (NTU) and the French Alternative Energies and the Atomic Energy Commission (CEA – Commissariat à l’énergie atomique et aux énergies alternatives) unveiled the launch of a joint research centre to develop innovative, energy-efficient solutions for the recycling and recovery of resources from electrical and electronic waste. The new centre, named the NTU Singapore-CEA Alliance for Research in Circular Economy (NTU SCARCE), will focus on four research areas that address the recycling and recovery of materials from common e-waste such as: lithium-ion batteries, silicon-based solar panels; printed circuit boards from discarded e-waste; and detoxifying plastic parts in e-waste. The National Environment Agency of Singapore is supporting this centre under the agency’s Closing the Waste Loop Research and Development Initiative.

The map below shows the locations of all the lithium recycling and R&D sites mentioned in the AcuComm database. To explore the full dataset, click here.

mapSource: AcuComm database, October 2019

A Guide to WasteView Contract Finder

WasteView Contract Finder provides your business with unparalleled access to ‘real-time’ business opportunities in the Waste, Bioenergy & Recycling sectors. Projects in our industry-leading database are added and updated daily by our team of expert global researchers.

How does it work?

What’s included?

With WasteView Contract Finder, you get full access to the AcuComm database. This includes access to 7,300+ projects and the contact details of over 21,000 decision-makers that are associated with them.

Your subscription gives you unlimited downloads, the ability to search by company and an easy export functionality to populate your CRM.

Get started by identifying your new business opportunities in less than a minute.

If you’d like any more information about WasteView Contract Finder or any other of AcuComm’s products, get in touch with the team today on 01243 788686.

Dutch tax on imported waste will impact the UK

The Dutch government is to tax waste imported for incineration as from 1st January 2020 in a measure which expands on the afvalstoffenbelasting, an existing tax on domestic waste sent for incineration. This waste tax rate currently stands at €32.12 per tonne. The expansion of the tax was formally announced as part of  its 2020 budget plans published on 18th September.

The government predicts that the expansion of the tax will all but eliminate imports of refuse-derived fuel (RDF) in just three years as the tax would raise the total cost of waste incineration in the Netherlands above the average price in competing countries. RDF imports currently make up around a quarter of all of the wastes incinerated in Dutch WtE plants. The Netherlands imported approximately 1.9 million tonnes of waste for incineration in 2017.

The impact of the additional taxation will be felt keenly in the UK which exports more of its RDF to the Netherlands than any other country. In 2018, almost half of UK exports (about 1.3 million tonnes) was sent to the Netherlands.

So there promises to be tougher times ahead, not only for WtE plant operators in the Netherlands, but also for UK RDF exporters which will have to find new markets to sell to, or find alternative disposal methods closer to home, which could boost recycling, WtE and perhaps even landfill activity in the UK.

Southern England WtE update

The last few weeks have seen mixed fortunes for several major waste-to-energy projects in the South of England. Here’s a roundup.

On 27th September 2019, Grundon and Viridor announced outline plans for the development of a new waste-to-energy (WtE) facility at Ford in West Sussex. The facility will be built at Grundon’s Ford Circular Technology Park, near its existing waste transfer and depot operations, and adjacent to Viridor’s existing materials recovery facility (MRF).

Attempts to build a facility on the site go back several years. West Sussex County Council granted planning permission for a non-hazardous waste facility on the site in 2014, but this was never built. While Grundon has noted that the planning permission therefore already exists for the site, it is currently unclear how the 2019 proposal relates to the older plans. The latter entailed a 200,000 tonne per year gasification plant, dealing predominantly with industrial and commercial waste.

Click here to view the precise location in Bing maps.

map

Also in the south of England, Wheelabrator has experienced a setback in its attempts to construct a WtE plant at the A303 Enviropark near Andover in Hampshire. A public consultation ended in March 2019. Wheelabrator expects the second stage of statutory public consultation to take place between early November to mid-December 2019, later than originally planned. Wheelabrator has been reviewing the design plans of the proposed development after receiving feedback on the current design during non-statutory consultation and has confirmed that there will be two combustion lines at the outset, and therefore there will be no phasing. The planning application is expected to be submitted towards the end of the first quarter of 2020.

Click here to view the precise location in Bing maps.

map2

Finally, there is progress to report on the long-anticipated replacement for the Edmonton WtE plant in north London. This dates to the 1970s and is coming to the end of its working life. The operator, North London Waste Authority (NLWA), first began plans for a new facility in 2014. Contracts began to be issued in 2018, and a third ‘Market Information Event’ was held on 9th October 2019 in central London for works associated with the delivery of the project. It has been subject to some ground preparation delays, but NLWA still anticipates that the site will become operational in 2025.

Click here to view the precise location in Bing maps.

map3

Lucky 97 for the Basel Amendment

Croatia recently made a small piece of waste management history. Earlier last month, it ratified the United Nations Basel Convention Amendment. This means that enough countries have now ratified it and it has come into force.

The Amendment in question seeks to completely ban shipments of hazardous waste from developed countries (principally OECD+EU) to developing ones. This is regardless of the method of disposal in the importing country; shipments for recycling or waste to energy are not permitted. It came into force in 1995, but national ratifications have been slow. Croatia’s ratification came on September 6th 2019, making it the 97th country to ratify. Hazardous waste is broadly defined as anything explosive, flammable, toxic or corrosive. The full definitions can be found in the annexes to the text here.

The Amendment forms part of the wider UN Basel Convention. This began in 1989 as a way of controlling the export of waste, and especially hazardous waste, to developing countries. It was ratified in 1992 with pretty much every country in the world signing up, with the large exception of the USA. Oddly, the US government signed the Convention in 1990, and the Senate gave consent in 1992. However, the accompanying legislation required has never been enacted and the Convention is therefore not ratified in the USA. Given the timescale involved I’d hazard the view that it’s not a priority for US lawmakers and we shouldn’t expect anything soon.

While the USA is the only major country yet to ratify the Convention as a whole, a number of OECD countries have yet to ratify the Amendment. These include Australia, Canada, Japan, Mexico and New Zealand. Other major countries not to ratify are Brazil, India and Russia, although there is less effect in these cases as they are not OECD members.

The Basel process is still an ongoing one. In May 2019, the Convention has begun looking at the inclusion of plastic waste within its remit, with a special emphasis on reducing the amount of plastics entering the world’s oceans.

As the environmental and regulatory pressure grows, exporting of waste is going to get harder and less financially viable. This is a major headache currently, but is also a huge opportunity for the development of capacity in countries which currently export a lot of waste.

Who are these countries? The top ten leading waste exporters in 2018, by monetary value, are shown in the graph below. Note this refers to all identifiable waste, not just hazardous elements. The global total in 2018 amounted to US$113.4 billion, of which the top ten accounted for US$68.4 billion or 60.3%. The USA headed the field with just under US$21.0 billion, and seven of the remaining nine are members of the OECD. Only Russia and Hong Kong in 9th and 10th places respectively are not OECD members.

exportersSource: AcuComm analysis of UN trade statistics