Tools to assess and optimise the sustainability of circular economy solutions. June 21 st, 2017

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1 Tools to assess and optimise the sustainability of circular economy solutions June 21 st, 2017

2 INTRODUCING OUR COMPANY AND UNIT Luxembourg Institute of Science and Technology (LIST): Mission-driven Research and Technology Organisation (RTO) that develops advanced technologies and delivers innovative products and services. By transferring these to society as well as local companies, LIST contributes strongly to the building of tomorrow s Luxembourg Three main domains: 1. IT for innovative services (ITIS) 2. Materials Research and Technology (MRT) 3. Environmental research and Innovation (ERIN) Life Cycle Sustainability and Risk Assessment (LiSRA) unit of ERIN: Identify the factors undermining environmental health and opportunities for reducing the environmental impacts and risks associated with industrial activities and human consumption patterns 2

3 A FOCUS ON TWO TOOLS OF LISRA OptiHeat: a regional and industrial symbiosis tool for waste heat valorisation Luxembourgish case study. LCA: a tool to evaluate the environmental performance of circular economy business models - case studies on plastic and PVC-flooring recycling solutions in Belgium and Luxembourg. 3

4 OptiHeat: a regional and industrial symbiosis tool for waste heat valorisation Luxembourgish case study. Alexandre Bertrand June 21 st, 2017

5 OPTIHEAT THE BARRIERS Internal waste heat valorisation in industries often not viable: too high payback time or absolute investment costs. Real interest for external valorisation for industrial or residential heat users but need for third party actor (energy service company ESCo) for the planning, implementation and management of the project. Approximately 90% of the EU residential and service sectors heating demand could theoretically be covered by excess heat from manufacturing industries, power production and waste incineration [1] Need for viable business case for the ESCo to engage in the project : selection of optimal waste heat valorisation opportunity maximising profits. [1] U. Persson and S.Werner. District heating in sequential energy supply. Applied Energy, 95(0): ,

6 OPTIHEAT THE PROBLEM COMPLEXITY Industrial heat sources Industrial heat sinks Urban heat sinks 6

7 OPTIHEAT THE OPTIMISATION TOOL USER INPUTS Energy prices, Specific heating utility efficiency, Load and temperature levels of heat sources and industrial as well as urban sinks (generic models available) Outdoor temperatures Market data on load and prices of various heating technologies (boilers, CHPs, heat pumps) Standard pipe sizes, costs and thermal insulation 7

8 OPTIHEAT THE OPTIMISATION TOOL OUTPUTS Global profits, Revenues, payback time, operating and investment costs per site Load, temperature level and pipe size per connection Optimal backup heating technology selection Resulting heat losses Waste heat and fossil fuel consumptions Electricity production from waste heat turbines and CHP plants 8

9 OPTIHEAT THE CASE STUDY 9

10 OPTIHEAT THE THEORY MATH. OPTIMISATION Objective: Maximise the profits : 10

11 OPTIHEAT THE FUTURE DEVELOPMENTS Adaptation of the model to optimise the valorisation of material waste into secondary material considering constraints of quality (limit downcycling), economic viability (profits) and environmental impacts to support circular economy and industrial symbiosis concepts Development of circularity metrics to assess the adequacy of a circular approach 11

12 LCA: a tool to evaluate the environmental performance of circular economy business models - case studies on plastic and PVCflooring recycling solutions in Belgium and Luxembourg Thomas Schaubroeck June 21 st, 2017

13 LIFE CYCLE ASSESSMENT Are circular economy solutions sustainable? Sustainability: development that meets the needs of the present without compromising the ability of future generations to meet their own needs Three pillars: Environmental, Social and Economic Circular Economy (CE) solutions seem to be sustainable but are they for sure? Proponents of CE often fail to consider issues of material loss and the additional energy input needed to sustain circularity. (Cullen, 2017; Journal of Industrial Ecology) For example: It might in some cases be more environmentally sustainable to burn waste (with cogeneration) than to transport over long distances to a high-energy demanding recycling facility the circular economy works against both the laws of thermodynamics and the underpinning principles of nature (Skene, 2017; Sustainability Science) For example: While fossil fuels encompass a lot of energy they are not easily (re)used by nature and have been piling up (just like waste), implying that nature does not always recycle 13 Conclusion: We need to still (!) assess the sustainability of CE solutions; Here we focus on life cycle assessment as a tool to do so

14 LIFE CYCLE ASSESSMENT LCA to assess sustainability of CE solutions Life cycle assessment is a tool to assess environmental impacts associated with a product's life from raw material extraction up until disposal or recycling. 14

15 15 Huysman S, Debaveye S, Schaubroeck T, De Meester S, Ardente F, Mathieux F, Dewulf J Application and further development of the recyclability benefit rate indicator for closed-loop and open-loop systems: a case study on plastic recycling in Flanders. Resour Conserv Recy 101: LIFE CYCLE ASSESSMENT 2 case studies of plastics recycling in Flanders fgh. Research question: What is the benefit of recycling regarding resource consumption? Resource accounting as the amount of Joules (exergy) extracted

16 LIFE CYCLE ASSESSMENT 2 case studies of plastics recycling in Flanders Closed-loop recycling (Galloo) Resource consumption for recycling/disposal Displaced resources consumption of substituted virgin products Conclusions The impact of the recycling itself is much higher than incineration or Landfilling The avoided impact of recycling, and displacement, is much higher (mainly fossil fuels because it s a plastic) Overall, recycling is estimated to lead to considerable resource savings (in terms of exergy), for incineration as well but not for land filling 16 Huysman S, Debaveye S, Schaubroeck T, De Meester S, Ardente F, Mathieux F, Dewulf J Application and further development of the recyclability benefit rate indicator for closed-loop and open-loop systems: a case study on plastic recycling in Flanders. Resour Conserv Recy 101:

17 LIFE CYCLE ASSESSMENT 2 case studies of plastics recycling in Flanders Open-loop recycling (Ekol) Resource consumption for recycling/disposal Displaced resources consumption of substituted virgin products Conclusions The impact of the recycling itself is much higher than incineration or Landfilling The avoided impact of recycling, and displacement, is much higher mainly fossil for iron Mainly land resources for wood Overall, recycling is estimated to lead to considerable resource savings (more for wooden bench), for incineration as well but not for land filling 17 Huysman S, Debaveye S, Schaubroeck T, De Meester S, Ardente F, Mathieux F, Dewulf J Application and further development of the recyclability benefit rate indicator for closed-loop and open-loop systems: a case study on plastic recycling in Flanders. Resour Conserv Recy 101:

18 LIFE CYCLE ASSESSMENT Two paths forward in LCA applications by LIST LCA methodology is complex and difficult to apply Solution by LIST: Provide user-friendly software to easily conduct LCA, specifically for CE solutions: ECOPACT (explained at booth) 18 Industrial ECOPACT specific data EPD LCA methodology is limited (e.g. social aspects of recycling not considered) Solution by LIST: Improve LCA methodology and apply to case studies (of companies) For example FLOREC-project (PPP funded by FNR) together with Tarkett: Sustainability assessment of circular business models of PVC flooring recycling

19 LIFE CYCLE ASSESSMENT An advanced LCA on PVC flooring recycling INPUT: (monetary) inventory of industrial chains (production until recycling/disposal), collected with Tarkett INPUT: inventory of background industry and impact assessment using LIST software ENVIRONMENTAL IMPACT AND COST OF INDUSTRIAL LIFE CYCLE ALTERNATIVES - Life Cycle Assessment Environmental impact and cost/profit (e.g. 1 kg CO 2 eq. m -2 waste PVC)

20 LIFE CYCLE ASSESSMENT An advanced LCA on PVC flooring recycling INPUT: consumer response data collection and modelling with Tarkett INPUT: generic info and data on recycling behaviour from literature (models) INPUT: (monetary) inventory of industrial chains (production until recycling/disposal), collected with Tarkett INPUT: inventory of background industry and impact assessment using LIST software Product-service formulas and Incentives by Tarkett (e.g. advertisement at retailers) CONSUMER (RECYCLING) BEHAVIOUR - Agent Based Modelling Picked business models and shares of to be recycled and disposed PVC flooring waste (e.g. 40% recycled and 60% disposed) ENVIRONMENTAL IMPACT AND COST OF INDUSTRIAL LIFE CYCLE ALTERNATIVES - Life Cycle Assessment Environmental impact and cost/profit for given incentives (e.g. 1 kg CO 2 eq. m -2 waste PVC for advertisement at retailers)

21 LIFE CYCLE ASSESSMENT An advanced LCA on PVC flooring recycling INPUT: consumer response data collection and modelling with Tarkett INPUT: generic info and data on recycling behaviour from literature (models) INPUT: (monetary) inventory of industrial chains (production until recycling/disposal), collected with Tarkett INPUT: inventory of background industry and impact assessment using LIST software Product-service formulas and Incentives by Tarkett (e.g. advertisement at retailers) CONSUMER (RECYCLING) BEHAVIOUR - Agent Based Modelling Picked business models and shares of to be recycled and disposed PVC flooring waste (e.g. 40% recycled and 60% disposed) Picked business models and shares of to be recycled and disposed PVC flooring waste (e.g. 40% recycled and 60% disposed) STOCKS AND FLOWS IN BUILT ENVIRONMENT - Dynamic Stock Modelling ENVIRONMENTAL IMPACT AND COST OF INDUSTRIAL LIFE CYCLE ALTERNATIVES - Life Cycle Assessment Disposal and recycling flooring waste amounts over time and space (e.g. 110 and 200 t to be recycled and disposed in 2016 for LUX) Environmental impact and cost/profit for given incentives differentiated over time and space (e.g. 1 kg CO 2 eq. m -2 waste PVC for advertisement at retailers; 110 t CO 2 eq. for LUX in the year 2016) INPUT: sales data over time and space of PVC-flooring from Tarkett INPUT: age and spatial distribution of amount of (disposed) flooring area from LIST-model and statistics

22 THANK YOU FOR YOUR ATTENTION 22

23 COLLABORATION AND FUNDING Opportunities LIST is interested to deliver innovative products and services to companies and society but also to collaborate with them, this specifically regarding CE solutions. As a public research institute LIST can attract R&D funding from: National research funding schemes such as the FNR International research funding schemes, e.g. Horizon2020 funding from the European Union These schemes can encompass Public Private Partnerships, implying the collaboration (possibly with co-funding) between companies and public sector. 23

24 PANEL DISCUSSION Topics 1. Are (your) circular economy solutions sustainable? 2. Can LCA or Optiheat tools be applied to your system? 3. Practical collaboration aspects (funding, timing, intellectual property etc.) 24

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