The fundamentals required for investments in waste treatment plants
In other words, "How to attract investors and create business?”
November 4th 2015, Warzawa
Stellan Jacobsson
Owner and CEO, Giromore Consulting AB
International coordinator Avfall Sverige
Former:
Waste & Recycling Manager, Tekniska verken AB, Linköping (owned by the municipal of Linköping)
CEO Svensk Biogas i Linköping AB, subsidiary of Tekniska verken AB
Chairman of the board Svensk Biogas i Linköping AB
CEO Usitall AB, (export company within Tekniska verken group)
Member of the board in the Swedish waste association (Avfall Sverige)
Member of the board in Swedish Energy Gas association
Sweden
9,8 million inhabitants
450 000 km2
290 municipalities
Swedens results for domestic waste
47,3%
35,6%
16,4%
0,7%
You need a strong framework with plans, regulations, permissions and supervision
National level – committed politicians
§
§
§
§
Legislation
National environmental targets
National waste plan
Guidelines
Local/Municipal level
Municipal authorithies:
§ Monopoly for household waste – (or other ways to control
and secure the waste (and revenues) stream to plants with
appropriate treatment methods).
§ Local waste plans and local regulations
”EU”
Waste Management is an integrated part of a holistic system
Products
Farms
Households
Material recycling
Sewage
water cleaning
Biosolids
Waste
Anaerobic
digestion
Business opportunities exists
”everywhere”!!! Vehicle fuel
Landfill
Incineration
Biogas
Other fuels
Cooling/ heating
production
Electricity production
Why are Sweden successful?
-­‐ Organization and cooperation between the public and the private • European directives – same as Poland
• Strong and ambitious national legislation
• Domestic waste – municipals monopoly. Collection from estate
properties. The owners of these, are obliged to pay for the service to the municipality. The service shall be performed according to a ”self-­‐cost” principle. • 75% of the municipalities use private entrepreneurs for collection and the waste sector engage many other entrepreneurs. • Deregulated market for commercial waste where the waste owner has a clear responsibility to follow the legislation.
• Producer responsibility for packages, papers, tyres, etc.
Clear national Targets, long-­‐term regulations and economical
steering instruments – stable regulations means stable
business
1600000
50 %
1400000
Landfill tax
introduced
1200000
1000000
800000
Ban on landfill of
organic waste
Municipal 600000 waste
400000 planning compulsory
200000
2010
2005
2000
1995
0
1990
Household waste to landfill per year (tonnes)
Producers’ responsibility
introduced
Ban on landfill of
combustible waste
Consider waste as a resource -­‐ secure revenue streams, (the economy…)
Materials
Products
Virgin materials and energy saved
Food waste
Biogas -­‐
vehicle
fuel
Biofertilizer
Petrol saved and industrial
fertilizer saved
Combustible waste
Hazardous waste
District Electricity
Heating/
cooling
Direct
environmental
benefit
Fossil and other
fuels saved
Environmental
protection
costs saved
Good for the economy – good for the environment
2014:
• 13,7 TWh district energy -­‐> 20 % of the total district energy
in Sweden -­‐ the heating need
of 950 000 homes
• 1,8 TWh electricity – the need
of 260 000 homes
Material recycling
Biological recycling
Energy recovery
Landfill
2014:
• 511 GWh vehicle-­‐fuel produced from foodwaste
corresponding to the need of about 30 000 cars
• 940 000 tonnes biofertilizer produced replacing
industrial fertilizer
Energy recovery of waste – national level Sweden
32 plants:
Recovering yearly
• totally 5 279 000 tonnes • of which 2 236 000 tonnes municipal waste
Gate fee approx 35-­‐65€ /tonnes (average 48€)/y
Essential for the economy – today there
is a market for brokers.
Advanced systems lead to more
business opportunities!
The most energy efficient plants in the world – securing the project economy
MWh
3,0
/ton
Electricity
Heat
Recovered energy per tonne
household waste incinerated
2,5
2,0
Co-­‐operation within
municipalites are necessary to achieve this (Waste-­‐, Energy-­‐, Water-­‐, Urban planning-­‐, etc)
The local community must have its own high procurement skills
1,5
1,0
0,5
0,0
If industrial waste was included in the diagram the Swedish result would be almost 3 MWh/tonnes
A robust waste system comprise biological treatment and involves, for us, new markets…
It is the most increasing treatment method
in Sweden today
§Today about 25 plants – heavy investments
§Energy recovery and production of
biogas used as vehicle-­‐fuel -­‐ demand of better
understanding of the transportation sector
§Recycling of nutrients need enter-­‐
prises with agriculture competences
The Biogas business for vehicle fuels is developed in Linköping –
today +300 people in the region are employed in the biogas business. Most of them in private companies.
From landfills to recycling facilities – an ”eldorado” for the entrepreneurs
Just few examples of possibilities
Crushing – IQR Swedish supplier of special designed chrushers
Sorting – local entrepreneurs
Baling – national entrepreneurs. Baling
equipment from Sweden
Transportation – local entrepreuners
Civil works – local entrepreuners
Trading – local brokers
Adminstration – local entrepreuners. Special designed Swedish solutions, both hardware & software
Gas collection system & power generation –
world leading technologies from Sweden
(Illustrator: Per Josefsson)
Waste treatment methods, Sweden -­‐ the long term trend
(Will it also happen on the Polish market?)
Important success factors in Sweden – national level
0,7%
• Strong legislation
• Clear national environmental targets showing the direction and long-­‐term regulations and economical
steering instruments
35,6%
47,3%
• Collaboration between public and private sectors
• Holistic system view-­‐ and an integrated part of the sustainable society adopted to the local conditions
16,4%
Material recycling
Biological recycling
Energy recovery
Landfill
• Integration in municipalites with;
Waste-­‐, Energy-­‐ and Water sectors, Urban planning-­‐, etc)
Other success factors in our society – local level
• Commited politicians
• Adequate personell resources – with
high own competence in the municipalities for system design and procurement
• Strong ”project” economy
• End-­‐user friendly systems
• Massive and long term informa-­‐
tion/communication/education
"How to attract investors and how to create attractive business opportunities?”
Conclusions
• Introduce steering documents which supports the desirable environmental targets
• Secure the revenue streams – efficiency and entrepreneurship
• Build up the municipalities own competences in system design and procurement
• Chose proven solutions
• Optimize efficiency – learn from successful markets. Swedish municipalities and private companies can offer advisor services to the Polish market players. • Create partnership and cooperations between the public and private parts in the waste sector.
• Strong focus on information, education and communication of the population, NGO:s as well as the decision makers. Minimize the political risks.
Openness, since it´s a long term responsibility to be an actor in the waste sector!
The trend towards a more developed waste & recycling sector
means new business opportunities!
Thank you for your attention!
For further information please contact
Stellan Jacobsson, Senior Consultant
E-­‐mail: stellan@giromore.se
+46706078095