Summary report Survey of green waste compost production capacity in Wales

Transcription

1 Summary report Survey of green compost production capacity in Wales This report provides an overview of the capacity of the green composting infrastructure in Wales and considers the likely future supply and demand of green composting capacity. Project code: OIN Date: May 2016 Research date: September 2015 January 2016

2 Survey of green compost production capacity in Wales WRAP s vision is a world in which resources are used sustainably. Our mission is to accelerate the move to a sustainable resource-efficient economy through re-inventing how we design, produce and sell products; re-thinking how we use and consume products; and re-defining what is possible through re-use and recycling. Find out more at Document reference (please use this reference when citing WRAP s work): [WRAP Cymru, 2016, Banbury, Survey of green compost production capacity in Wales Summary report, Prepared by Dr Annette Hill and Mike Bains, AECOM] Front cover photography: Composting facilities receiving local authority collected for composting in 2014/15 While we have tried to make sure this report is accurate, we cannot accept responsibility or be held legally responsible for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. This material is copyrighted. You can copy it free of charge as long as the material is accurate and not used in a misleading context. You must identify the source of the material and acknowledge our copyright. You must not use material to endorse or suggest we have endorsed a commercial product or service. For more details please see our terms and conditions on our website at WRAP - Survey of green compost production capacity in Wales 2

3 Contents Contents... 3 Glossary... 4 Acknowledgements... 6 Key facts... 7 Introduction... 8 Market drivers... 8 composting facilities in Wales... 9 Number and type of composting facilities... 9 Quantities and types of composted...11 composting capacity...12 Potential constraints on composting capacity...13 Compost production...15 Local authority collected green and food...16 Local authority collection of green and food...16 Composting facilities used by local authorities...17 Management of local authority collected green...18 Future green composting capacity and demand in Wales...20 Forecast scenarios...20 Assessment of supply verses demand for green composting in Wales...23 Risks and opportunities...24 WRAP - Survey of green compost production capacity in Wales 3

4 Glossary Anaerobic digestion (AD) Process of controlled decomposition of biodegradable materials under managed conditions where free oxygen is absent, at temperatures suitable for naturally occurring mesophilic or thermophilic anaerobic and facultative bacteria species, that convert the inputs to a methane rich biogas and whole digestate. Block composting process In a continuous block composting process the incoming material for composting is formed into windrows or long piles at one end of the composting pad and adjacent to an existing block of composting material. The material is then regularly turned, and at each turn it is moved further across the composting pad. This process of turning continues until the material reaches the other side of the composting block and is fully composted (generally 2-3 months). Compost Solid particulate material that is the result of composting, that has been sanitised and stabilised and that confers beneficial effects when added to soil, used as a component of a growing medium, or is used in another way in conjunction with plants. Composting Process of controlled biological decomposition of biodegradable materials under managed conditions that are predominantly aerobic and that allow the development of thermophilic temperatures as a result of biologically produced heat. EcoPOD composting process The EcoPOD composting system is a static, aerated-pile composting method where the material for composting is wrapped in a long sleeve of flexible plastic membrane and aeration is supplied through a perforated pipe running the length of the pod. Exemption Exemption from the need to hold an authorisation, such as an Environmental Permit, which is allowed by the regulator in certain circumstances. WRAP - Survey of green compost production capacity in Wales 4

5 Food Organic of plant or animal origin, mainly arising from domestic kitchens, commercial kitchens and food processing, preparation and manufacturing, and can be raw or cooked. Organic of plant origin, mainly arising from domestic gardens, maintenance of municipal parks and gardens and similar commercial activities such as tree felling and gardening. Input material Biodegradable material intended for feeding or that is fed into a composting or anaerobic digestion process. In vessel composting (IVC) process A range of composting systems where the composting feedstock is contained in a purpose-built structure for the sanitisation phase of composting, allowing a higher degree of process control and environmental protection than open air windrow composting. Many IVC sites incorporate an element of windrow composting for maturation of the material following the sanitisation phase. IVC is primarily used for feedstock that falls under the provision of the Animal By-Product Regulations, e.g. food. Municipal Waste collected by Local Authorities, including household and any other s collected by a Waste Collection Authority (WCA), or its agents, such as municipal parks and gardens, beach cleansing, commercial or industrial and resulting from the clearance of fly-tipped materials. Operational input capacity / composting capacity The maximum quantity of input material that an individual composting facility can receive in a year based on all current facility constraints (including physical, practical and regulatory constraints), in the opinion of the operator. Permitted capacity The maximum quantity of input material that is authorised to be received at a composting facility, as stated in the Environmental Permit or exemption from Environmental Permitting. WRAP - Survey of green compost production capacity in Wales 5

6 Windrow composting open air, turned windrow composting under cover Mechanically turned windrow located outdoors (in the open air), as opposed to under a cover or in a building. Mechanically turned windrow located in a building or under cover as opposed to in the open air. Acknowledgements The authors would like to thank the following for their inputs to the project. Ruta Dauksaite, WRAP Cymru Julie Tate, Natural Resources Wales Jeremy Jacobs, Organics Recycling Group, Renewable Energy Association Justyna Franuszkiewicz, Compost Certification Scheme, Renewable Energy Assurance Limited All of the Welsh composting facility operators that responded to the project survey. The Welsh local authorities that provided information in support of the project. WRAP - Survey of green compost production capacity in Wales 6

7 Survey of green compost production capacity in Wales Key facts At the end of 2015 there were 17 permitted composting facilities in Wales that receive green inputs, including 13 facilities that receive green only and four facilities that receive green and food. In 2014/15 these 17 facilities received around 164,000 tonnes of green and food. The maximum operational input capacity (taking account of the current physical, practical and regulatory constraints) of the 17 permitted facilities is around 221,000 tonnes per annum, with at least 55,800 tonnes of additional composting capacity permitted in In 2014/15, the local authorities in Wales used 28 different composting facilities for the management of green including 16 in Wales (12 that received green only inputs and four that received mixed green and food ) and 12 in England. In 2014/15, the 22 local authorities in Wales collected approximately 175,000 tonnes of green for composting, of which about 93,000 tonnes (53%) was composted in in vessel composting facilities (66,000 tonnes in Wales and 27,000 tonnes in England) and 80,000 tonnes (46%) was composted in windrow, block and EcoPOD composting processes (63,000 tonnes in Wales and 17,000 tonnes in England). 13 of the 17 composting facilities received over 95% of their inputs from local authority municipal collections and are therefore reliant on local authority contracts for the continuing success of their business. The ongoing diversion of food from in vessel composting facilities to anaerobic digestion is presenting a significant risk to the future capacity available for the composting of green at in vessel composting facilities. Forecasts of future (to 2024/25) supply verses demand for green composting capacity in Wales indicates that, for Wales as a whole, supply is likely to meet demand provided where a proportion of the in vessel composting capacity (or an alternative) is available. WRAP - Survey of green compost production capacity in Wales 7

8 Survey of green compost production capacity in Wales Introduction Regulatory and policy drivers for the treatment of organic in Wales are continuing to change the green composting landscape. This document provides an overview of the green composting infrastructure and capacity in Wales, the quantity of green that is composted and the quantity and types of compost being produced. It also considers the likely future supply and demand for green composting capacity. Market drivers The capacity required for the collection and treatment of organic s (green and food ) in Wales will continue to grow if the national targets for the diversion of biodegradable from landfill and for the reuse, recycling and recovery of are to be met. To meet these targets, the local authorities in Wales need to ensure that suitable organic processing capacity exists locally to meet the future demands. Before 2010, green and food collected in Wales was treated via composting processes, with windrow composting processes used for green composting and in vessel composting (IVC) processes used for combined green and food composting. In 2010 the overarching strategy document for Wales Towards Zero Waste introduced anaerobic digestion (AD) as a new, better and more sustainable technology to process food. The Welsh government provided financial support for this transition through the food treatment programme. This transition in preferred technology to treat food is continuously changing the composting infrastructure and landscape in Wales. National targets for municipal collected by local authorities National target: 2015/ / /25 Prepare for reuse, recycling or composting (or 58% 64% 70% AD) Reference: Towards Zero Waste. Welsh Assembly Government. June WRAP - Survey of green compost production capacity in Wales 8

9 Survey of green compost production capacity in Wales 9 composting facilities in Wales Number and type of composting facilities At the end of 2015, in Wales, a total of 17 composting facilities that handled green inputs were either operational or under development under an Environmental Permit. This included: 13 facilities that received green only inputs; and four facilities that received mixed green and food inputs. A further permitted composting facility receives only wood from a manufacturing process. Four of the facilities receiving green only inputs were newly permitted, with two commencing operations in 2015 and two due to start in 2016 (although all four previously accepted green under an exemption). Composting process types used by Permitted composting facilities in Wales receiving green inputs Composting process type Material received (number of facilities) only Mixed green & food Windrow open air 8 - Windrow under cover 1 - Block process 2 - EcoPOD 1 - In vessel composting 1* 4 TOTAL 13 4 * can receive mixed green and food but currently receives green only WRAP - Survey of green compost production capacity in Wales 9

10 Survey of green compost production capacity in Wales 10 Composting facilities in Wales that receive green and operate under an Environmental Permit Operator Facility name Facility address Location Process type Waste types received Compost Certification Scheme status (certification reference) Compost produced (2014/15) Grade Quantity (tonnes) Composting facilities that receive green only inputs Potters Waste Management Ltd S C Compost Ltd M D Recycling Limited Flintshire County Council Parry Harri Morrus Lawrence Landfill Ltd FCC Environment (UK) Ltd Waste Company (Abergavenny) Ltd CWM Environmental Ltd Isle Of Anglesey County Council Mr Andrew Morgan & Mr Peter Morgan JLA Recycling Limited I G Hughes and J G Hughes Bryn Posteg Bryn Posteg Landfill, Tylwch Road, Llanidloes, Powys, SY18 6JJ Caerhun Farm Tyn -y- Groes, Conwy, LL32 8UZ Crugmore Farm field Gwrtaith Gwynedd Lawrence Landfill Llanddulas Maindiff Court Farm Nant Y Caws (block process) Penhesgyn IVC Race Farm Tir Canol Ty Mawr Unit 1 - Crugmore Farm, Penparc, Cardigan, Ceredigion, SA43 1RD field Recycling Park, field Business Park No 2, field, Flintshire, CH8 7HJ Glanllynnau, Pwllheli, Gwynedd, LL53 6SJ Dredgemans Hill, Johnston, Haverfordwest, Pembrokeshire, SA62 3NX Llanddulas Quarry, Abergele Road, Llanddulas, Conwy, LL22 8HP Abergavenny, Monmouthshire, NP7 8AY Nant Y Caws Landfill Site, Llanddarrog Road, Nant Y Caws, Carmarthen, Carmarthenshire, SA32 8BG Land at Penhesgyn Landfill Site, Penhesgyn Gors, Llansadwrn, Menai Bridge, Isle of Anglesey, LL59 5RY Newport Road, New Inn, Pontypool, Torfaen, NP4 0TP Glyncynwal Uchaf Farm, Palleg Road, Lower Cwmtwrch, Ystradgynlais, Swansea, SA9 2QQ Powys Conwy Ceredigion Flintshire Gwynedd Pembrokeshire Conwy Windrow - open air, turned Windrow - under cover Windrow - open air, turned Windrow - open air, turned Windrow - open air, turned Windrow - open air, turned. Changing to - block process EcoPODs (with maturation in windrows) Monmouthshire Windrow - open air, turned Carmarthenshire Block process (for green ) Isle of Anglesey IVC (with maturation in controlled aeration static windrows) Torfaen Swansea Windrow - open air, turned Windrow - open air, turned Llanbeulan, Ty Croes, Isle of Anglesey Windrow - open Isle of Anglesey, LL63 air, turned 5UR Not certified 0-80mm 6,934 Not certified 0-25mm 1,500 Certified to PAS100 & CQP (PR289) ^ Certified to PAS100 & CQP (PR245) 0-40mm mm 6, mm 1,712 Certified to PAS100 & 0-40mm 5,000 CQP (PR267) Not certified Mulch 600 (PAS100 grade will be 0-20mm) Certified to PAS100 & As made - 7,917 CQP (PR287) ^ not screened Certified to PAS100 & CQP (PR284) ^ Certified to PAS100 & CQP (PR270) Certified to PAS100 & CQP (PR238) 0-40mm 2, mm 4,413 * 0-25mm 4,413 * 0-20mm 8,000 Not certified As made - not screened 600 Not certified 0-10mm mm 0 Not certified 0-20mm 100 TOTAL from facilities that receive green only inputs 50,636 WRAP - Survey of green compost production capacity in Wales 10

11 Survey of green compost production capacity in Wales 11 Operator Facility name Facility address Location Process type Waste types received Compost Certification Scheme status (certification reference) Compost produced (2014/15) Grade Quantity (tonnes) Composting facilities that receive green and food inputs FCC Environment (UK) Ltd Cowbridge Compost Ltd Bryn Compost Ltd CWM Environmental Ltd Bryn Lane Composting Facility Cowbridge Compost Ltd Gelliargwellt Farm Nant Y Caws (IVC) Bryn Lane, Wrexham Industrial Estate, Wrexham, Wrexham, LL13 9UT The Lodge, Llwynhelig, Gibbots Hill, Cowbridge, Vale of Glamorgan, CF71 7FF Gelligaer, Hengoed, Caerphilly, CF82 8FY Nant Y Caws Landfill Site, Llanddarrog Road, Nant Y Caws, Carmarthen, Carmarthenshire, SA32 8BG Wrexham Vale of Glamorgan IVC (maturation in windrows at FCC Environment s Gowy site in Cheshire) IVC (with maturation in windrows) Caerphilly IVC (with maturation in windrows) Carmarthenshire IVC (with maturation in windrows) and food and food and food and food Material is transferred to FCC Environment s Gowy facility for maturation. Gowy holds the certification but is located in England and not listed here. Certified to PAS100 & CQP (PR274) Certified to PAS100 & CQP (PR107) Certified to PAS100 & CQP (PR114) n/a n/a 0-30mm 20, mm 8, mm 4,982 * 0-25mm 4,982 * TOTAL from composting facilities that receive green and food inputs 37,964 TOTAL from all composting facilities 88,600 *Estimate based on available information ^Certification to Compost Certification Scheme achieved in Compost produced in 2014/15 was not certified. Quantities and types of composted The 17 composting facilities that handled green only or mixed green and food received a total of around 164,000 tonnes of input material in 2014/15. This comprised approximately: 120,000 tonnes of green, of which 90,000 tonnes was composted in facilities that only received green and 30,000 tonnes was composted in facilities that received green and food ; 28,000 tonnes of mixed green and food that was composted in facilities that received green and food ; and 16,000 tonnes of food that was composted in facilities that received green and food. WRAP - Survey of green compost production capacity in Wales 11

12 Survey of green compost production capacity in Wales 12 In 2014/15, of the 13 permitted composting facilities that received green only inputs, 10 received from local authority municipal collections with nine of these receiving almost all (>95%) of their from local authority sources. The other three facilities (which are smaller and / or recently permitted) received most of their green inputs from non-municipal sources such as landscaping contractors and arborists. All four of the permitted composting facilities that received mixed green and food inputs received almost all (95 to 100%) of their from local authority sources. composting capacity The total operational input capacity (taking account of the current physical, practical and regulatory constraints at each facility) of the 17 permitted composting facilities that received green inputs was around 221,000 tonnes per annum at the end of Around 118,500 tonnes per annum of operational input capacity is in facilities using IVC processes which can receive both green and food inputs (although 24,000 tonnes per annum of this capacity is in a facility that currently receives green inputs only). The remaining 102,500 tonnes per annum of operational input capacity is in facilities that receive green only. This comprised around 126,000 tonnes per annum in facilities that currently receive green only inputs and around 95,000 tonnes per annum in facilities that currently receive green and food inputs. At least 55,800 tonnes per annum of additional green capacity has recently (2015) been Permitted and is either under development or could be developed over the next few years if demand exists. Further additional capacity is also known to be in the planning stages but is not yet permitted, including a windrow composting facility proposed under the long term contract awarded by Cardiff and Vale of Glamorgan Councils to Kelda Organic Energy (Cardiff) Ltd. WRAP - Survey of green compost production capacity in Wales 12

13 Survey of green compost production capacity in Wales 13 Operational input capacity at composting facilities in Wales and indicative input capacity under development, by facility Potential constraints on composting capacity With Government policy driving the diversion of food to AD, at least three of the five IVC facility operators (Cowbridge Compost, Bryn Compost and CWM Environmental) have started on proposals to invest in AD processes, with the Bryn Compost facility due to open early in In general terms these operators suggested that, if in house AD capacity was developed, the existing IVC capacity may be phased out because it is unlikely to be financially viable with the lower gate fees received for green. However, where contracts for green exist, they would be likely to develop alternative green only composting capacity. In contrast, the Penhesgyn IVC facility (operated by Isle of Anglesey council and jointly owned by Anglesey, Gwynedd and Conwy Councils) was built to receive green and food, but now only receives green from Anglesey and Gwynedd. The food from the three local authorities now goes to AD and Conwy has established local contracts for green composting. At present the facility is planned to continue to operate as there is not considered to be any local alternative capacity. WRAP - Survey of green compost production capacity in Wales 13

14 Survey of green compost production capacity in Wales 14 Seven composting facilities (from 12 respondents) identified feedstock availability as a potentially significant constraint for their business, with a further two facilities identifying some constraint. Constraints included the availability and duration of local authority contracts, including limited feedstock security from short term contracts and limited new opportunities with long term contracts. At least three composting facilities identified potential changes in local authority green collection arrangements as a potential risk factor for a reduction in feedstock availability. This included the possibility of local authorities introducing charging for green collection and / or only providing seasonal collection services. Three facilities (from 11 respondents) identified financial issues as a significant constraint for their business, and five identified some constraint. This included the costs of investing in composting infrastructure (at least) four facilities), compost market value (at least three facilities) and reductions in gate fees / gate fees required to secure new contracts (at least four facilities). Five facilities (from 13 respondents) identified competition as a significant constraint, and two identified some constraint. This included lower gate fees at exempt sites (at least three facilities), other nearby facilities (at least two facilities) and large companies with facilities in England (at least two facilities). Two of the IVC facilities identified competition from AD facilities as a key factor. The six facilities that did not consider competition to be a constraint identified the lack of other nearby facilities / nearby PAS100 facilities (at least five facilities) and security through long term contracts (at least one facility) as the reasons. Nine of the 13 facilities that receive green only inputs feel positive about the future opportunities for their business. Only two facilities expressed concern about the future of their business, although at least two further facilities commented that the future was dependent on retaining or securing local authority contracts. WRAP - Survey of green compost production capacity in Wales 14

15 Survey of green compost production capacity in Wales 15 Compost production A total of approximately 89,000 tonnes of compost was produced in Wales in 2014/15 by the 17 composting facilities that received green inputs. Of this, about 51,000 tonnes was green compost and about 38,000 tonnes was mixed green and food compost. In 2014/15 seven of the composting facilities were certified under the Compost Certification Scheme (CCS) as meeting the requirements of PAS100 and the Compost Quality Protocol, which allows the compost to be considered as a product without the restrictions of regulation. These facilities together produced around 68,000 tonnes of compost. A further three composting facilities achieved certification under the CCS during 2015, together producing a further 10,500 tonnes of compost in 2014/15. Two of these facilities are also developing further operational capacity. WRAP - Survey of green compost production capacity in Wales 15

16 Survey of green compost production capacity in Wales Local authority collected green and food Local authority collection of green and food In 2014/15 the 22 local authorities in Wales together collected approximately 208,000 tonnes of municipal green and food for composting. It is estimated that 175,000 tonnes of this was green and 33,000 tonnes was food. A further 77,000 tonnes of municipal food was collected and treated using AD. In 2015/16 all 22 local authorities provided separate collection for green at household recycling centres. 21 local authorities provided at least some of their households with a kerbside collection of either source segregated green or mixed green and food. All 22 local authorities provided a kerbside collection of food. Quantity and type of collected for composting by each local authority in 2014/15 WRAP - Survey of green compost production capacity in Wales 16

17 Survey of green compost production capacity in Wales 17 Powys is the only local authority that does not offer any type of kerbside collection of segregated green but instead offers a network of local bring sites that accept segregated green. Carmarthenshire collects very little green at the kerbside and encourages use of the household recycling centres and home composting. Wrexham is the only authority where householders can place both green and food in the same container for collection. By the end of 2015, at least six local authorities (Bridgend, Carmarthenshire, Ceredigion, Denbighshire, Monmouthshire and Pembrokeshire) had introduced some form of charging for the kerbside collection of green. At least four further local authorities were providing a collection service for free but had charges for purchasing and/or the collection of additional containers. Composting facilities used by local authorities Composting facilities receiving local authority collected for composting in 2014/15 In 2014/15 the 22 local authorities in Wales together used 28 different composting facilities for the management of green, including 16 in Wales (12 that received green only WRAP - Survey of green compost production capacity in Wales 17

18 Survey of green compost production capacity in Wales 18 inputs and four that received mixed green and food ) and 12 in England. 14 of the local authorities sent all of their green to facilities in Wales, whilst four (Cardiff, Ceredigion, Newport, Wrexham) used facilities in England and Wales and four (Blaenau Gwent, Monmouthshire, Rhondda Cynon Taff, Torfaen) used only facilities in England. Approximately 160,000 tonnes (77%) of municipal green and food was composted in the facilities in Wales and 48,000 tonnes (23%) was composted in the facilities in England. 11 of the 22 local authorities used one composting facility to treat all of their green. Of these, eight used a facility in Wales (of which six used an IVC facility) and 3 used a facility in England. A further five local authorities sent more than 75% of their green to a single facility. Of the 10 permitted composting facilities in Wales that received local authority collected green only, four received from a single local authority and three received more than 90% of their from a single local authority, with the remaining three composting facilities receiving from between two and five different local authorities. Of the four IVC facilities in Wales that received local authority collected mixed green and food inputs, one received from a single local authority, whilst three received from between three and five different local authorities. Management of local authority collected green In 2014/15, of the 152,000 tonnes of local authority separately collected green, approximately 47% (72,000 tonnes) was managed in IVC facilities, with the remaining 53% (80,000 tonnes) managed in windrow, block and EcoPOD processes. All (42,000 tonnes) of the local authority collected mixed green and food was managed in IVC facilities. WRAP - Survey of green compost production capacity in Wales 18

19 WALES & ENGLAND ENGLAND WALES Location Survey of green compost production capacity in Wales 19 Approximately 11,500 tonnes (13%) of local authority separately collected food was composted in IVC facilities, with a further 77,000 tonnes (87%) treated by AD. Management of local authority collected for composting, by facility location and composting process type in 2014/15 Composting facility process type Waste type collected for composting (tonnes) only Mixed green and food Waste food only Other compostable TOTAL (tonnes) Windrow / EcoPOD / turned block (including exempt facilities) 63, ,007 66,193 In vessel composting 49,035 33,732 11, ,359 TOTAL IN WALES 112,222 33,732 11,592 3, ,552 Windrow / EcoPOD / turned block (including exempt facilities) 16, ,785 In vessel composting 23,095 7, ,056 TOTAL IN ENGLAND 39,880 7, ,841 Windrow / EcoPOD / turned block (including exempt facilities) 79, ,007 82,978 In vessel composting 72,131 41,692 11, ,415 TOTAL IN WALES AND ENGLAND 152,102 41,692 11,592 3, ,393 Assuming 50% of the mixed green and food is green, then a total of around 175,000 tonnes of green was collected for composting by local authorities in 2014/15 and: approximately 93,000 tonnes (53%) of green was composted in IVC facilities (66,000 tonnes in Wales and 27,000 tonnes in England); approximately 80,000 tonnes (46%) of green was composted in windrow, block and EcoPOD composting processes (63,000 tonnes in Wales and 17,000 tonnes in England); and approximately 129,000 tonnes of green was composted in Wales and 44,000 tonnes was composted in England. WRAP - Survey of green compost production capacity in Wales 19

20 Survey of green compost production capacity in Wales Future green composting capacity and demand in Wales To understand whether green composting capacity in Wales is likely to meet future demand from green collected for composting has been assessed. Forecast scenarios The forecast scenarios for green composting capacity address: existing permitted composting capacity and permitted capacity that may be developed in the future; and the potential for the loss of capacity at IVC facilities as food is diverted to AD. The forecast scenarios for green requiring composting are undertaken at a local authority level and assume that green will arise from local authority collections only (as little commercial green is currently managed in permitted facilities). Forecast scenario High Most likely Assumptions: composting capacity: Facilities that receive green only: - Existing facilities remain operational at the maximum current input capacity. - Authorisations for additional input capacity become available at the rate indicated by the operator. Facilities that receive green and food : - Maximum current input capacity assumed to be 100% available for green inputs. Facilities that receive green only: - As high scenario. Facilities that receive green and food : - Maximum current input capacity assumed to be 50% available for green inputs, either as IVC capacity or an alternative. requiring composting: - No change in total municipal solid generated. - Statutory targets for recycling, preparing for reuse and composting (including AD) are met. - makes up the same relative proportion of the total recycled, prepared for reuse and composted (including AD) as it does now, plus an additional 5%. - Total municipal solid generated decreases at 1% of 2014/15 quantities each year. - Statutory targets for recycling, preparing for reuse and composting (including AD) are met. - makes up the same relative proportion of the total recycled, prepared for reuse and composted WRAP - Survey of green compost production capacity in Wales 20

21 Survey of green compost production capacity in Wales 21 Low Facilities that receive green only: - As high scenario, with the exception of at least one IVC facility undergoing phased closure. Facilities that receive green and food : - Capacity is assumed to undergo phased closure with no replacement capacity. (including AD) as it does now. - collected for composting remains at 2014/15 quantities. WRAP - Survey of green compost production capacity in Wales 21

22 Survey of green compost production capacity in Wales 22 Forecast of future supply and demand for green composting capacity in Wales WRAP - Survey of green compost production capacity in Wales 22

23 Survey of green compost production capacity in Wales 23 Assessment of supply verses demand for green composting in Wales Groups 1, 3 and 4 show capacity meeting forecast demand in all scenarios. For each of these groups the composting capacity is mainly available from non-ivc processes. Group 5 shows insufficient composting capacity for all green collected scenarios, with a shortfall of between 5,000 and 75,000 tonnes by 2024/25 depending on the quantity of green collected for composting and the future status of the IVC capacity (or replacement). It should be noted that the composting capacity forecast does not include the new windrow composting facility proposed for Lamby Way in Cardiff under the long term contract awarded by Cardiff and Vale of Glamorgan Councils to Kelda Organic Energy (Cardiff) Ltd, which may contribute around 38,000 tonnes of additional capacity from The current under capacity within group 5 (of around 35,000 tonnes) is met through surplus capacity in group 4 and capacity in England, which could also continue in the future. For groups 2 and 6 there may be over or under capacity depending on the availability of the current IVC capacity or an equivalent alternative. For group 2, the most likely scenario for capacity results in a surplus capacity of at least 9,000 tonnes. For group 6 the most likely scenario results in a slight under capacity of around 3,000 tonnes. For group 7, capacity is met by the current IVC facility. Although a shortfall in capacity is forecast in the most likely and low capacity forecast, the contractual arrangements between Wrexham Council and FCC Environment would ensure that sufficient capacity was available either directly or via a third party facility. For Wales as a whole the high capacity forecast indicates sufficient capacity for all green collected scenarios. The most likely capacity scenario provides sufficient capacity for all but the high green collected scenario. The low capacity forecast suggests an under capacity for all green collected scenarios of between about 15,000 and 110,000 tonnes per annum. WRAP - Survey of green compost production capacity in Wales 23

24 Survey of green compost production capacity in Wales 24 Risks and opportunities In 2014/15, 14 of the 17 permitted composting facilities received local authority collected green (green only and / or mixed green and food ). 13 of these facilities received more than 95% of their from local authority sources. As such, the future of the composting facilities and composting capacity in Wales is heavily reliant on the continued supply of local authority green to these facilities. Of the 14 composting facilities that received local authority collected green, 8 received from a single local authority and are therefore almost entirely reliant on this one source of green for the feedstock for their business, with very limited options for any alternative contracts that could supply similar quantities of. Similarly, in 2014/15 11 of the 22 local authorities each sent all of their green to a single composting facility and were wholly reliant on that facility for the composting of their green. A further five local authorities sent more than 75% of their green to a single facility. In 2014/15 around 25% (44,000 tonnes) of local authority collected green was managed in England. Four local authorities (Blaenau Gwent, Monmouthshire, Rhondda Cynon Taff, Torfaen) used only facilities in England and a further four (Cardiff, Ceredigion, Newport, Wrexham) used facilities in England and Wales. This has resulted in loss of feedstock for composting facilities in Wales. The diversion of food to AD is presenting a significant risk to the green composting capacity at IVC facilities. In 2014/15, approximately 93,000 tonnes (53%) of green was composted at IVC facilities of which 66,000 tonnes was composted in Wales and 27,000 tonnes in England. At least three of the five IVC facility operators are exploring opportunities to develop AD capacity to continue receiving food. These operators indicated that if AD capacity is developed then IVC WRAP - Survey of green compost production capacity in Wales 24

25 Survey of green compost production capacity in Wales 25 capacity is likely to be phased out, and alternative green composting capacity would only be developed if demand exists at a sustainable gate fee. Conversely, one IVC facility (Penhesgyn, that is local authority owned and operated) is already operating with green only inputs, but plans to continue as no alternative local capacity is available. In 2014/15, six of the local authorities were using a single Welsh IVC facility to handle all of their green. Where contracts for the composting of this exist, it is likely that green will continue to be received by the IVC facilities or alternative capacity developed by the operator. Nine of the 13 composting facilities that receive green only inputs felt positive about the future opportunities for their business. This is also indicated by the further 55,800 tonnes (at least) of green composting capacity that was authorised in 2015/16 and which may be developed if demand exists. Only two facilities expressed concern about the future of their business, although at least two further facilities commented that the future was dependent on retaining or securing local authority contracts. With the local authority statutory targets for reuse, recycling and composting continuing to increase to 2024/25, it is expected that green composting will continue to deliver a key proportion of this target. The impact on the quantity of green collected as a result of potential changes to local authority green collection arrangements, for example the introduction of charges (now introduced in at least six local authorities) and seasonal collections, are yet to be seen. In practice the market tends to respond to demand, and if green is available in contracts that deliver a sustainable gate fee, then operators will respond to the opportunities that are presented. WRAP - Survey of green compost production capacity in Wales 25

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