Wood recycling
A transforming marketplace
David Lee
Group Operations Director
Hadfield & UKWR – Who are we?
• 30+ years experience
• Agricultural background
• Leading UK wood recycling business
– Producer of leading animal bedding brands
– Significant tonnages to panelboard mills
– Leading provider of waste wood for UK WID wood biomass stations
• Approaching 100 k tonnes processed pa
– Export
– Plus several other sustainable products
• Total of 250k tonnes in 2010/11
• 3 sites main sites
– Manchester, Middlesbrough, Tilbury
Manchester
Middlesborough
Tilbury
Wood waste basics
Sources
Applications
Panel board
Manufacturing
Post consumer
(household
collections, civic
amenity sites)
Commercial &
Industrial
Construction &
Demolition
Bio energy
Collection &
Processing
Animal bedding
Compost & Mulches
Other applications
(filter material etc)
Market fundamentals
Supply Chain
Source
Originator
Collector
Processor
Consumer
Economics
Gate fee
+
price etc
=
Processing fee
+
Haulage
+
Margin
Supply & demand locations
• Supply is based
around population
• Existing demand
is largely northern
• The south east
has large generation and
limited consumption
Panel board (using recycled wood)
Biomass in operation
Biomass in construction
Biomass – Gaia Power
Biomass in development
Waste wood volumes
• General consensus is
that approx 5m tns
of wood waste is
generated in the UK
per annum
• Only 2.1m tns had a
“home” in 2008.
• For “landfill” read
“somewhere else”
Question is how much will be
accessible?
From slide by Poyry
Where does waste wood currently go?
The volumes going into the unknown end uses are
large but it is almost impossible to determine how
much goes where
Markets - Panelboard
• Pan European over capacity
– Can 100% of UK industry survive?
• Regional bias
– Majority of capacity is in NW England, NE England
and Scotland
• Quality requirements
– Panelboard feed stock is typically
more solid wood than panel products
Markets - Biomass
• Existing UK WID facilities
– 500k tonnes
• Mainland European demand
– Swedish, German and Dutch supply from UK
• New UK Non WID facilities
– RHI and public build schemes
– New waste wood pelletising plants have been recently opened
• New UK WID facilities
– Huge number in planning
– Feedstock only exists for approx 750k - 1m tonnes pa
• then cannibalisation
Markets - Animal bedding & mulches
• High growth in animal bedding in mid 2000s
– Lots of new entrants in 2008/09
• Demand influencers
– economic conditions
– seasonality
– availability of alternatives (straw, shavings etc)
• Pricing is determined by alternatives
– rather than the wood market place
Industry players
• Traditional
– Aggregators & processors
• SMEs
– Brokers
• Small numbers
– Hauliers
• Several but AW Jenkinson
dominant
– Consumers
• Panel board
• Animal bedding
• Limited UK biomass
An industry in flux
• Today
– Aggregators & processors
• LWMC and SMEs
– Brokers
• New entrants from UK & Europe
– Hauliers
• Expansion of both number and
scale
– Consumers
•
•
•
•
Panel board
Animal bedding declining
Export biomass growth
UK biomass stable
– Rapid growth in 2012
Wood waste in the NE of England
• Significant demand for material
– Sembcorp Wilton
– Eon Lockerbie
– Egger Hewham
– Dalkia Chilton
– RWE Markinch?
• Impact on gate fees as demand comes on
line?
A sellers market - key decision criteria
• Duty of care
• Recycling vs recovery
• Costs (gate fees and haulage costs)
Questions?
David Lee
Group Operations Director
Hadfield Wood Recyclers
UK Wood Recycling Ltd
Mobile - 07973 633829
Office - 0161 3702360
Email - david.lee@hadfield.co.uk
www.hadfield.co.uk
www.ukwoodrecycling.co.uk