Developing Reprocessing Infrastructure in Wales Business Support from WRAP Cymru
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1 Developing Reprocessing Infrastructure in Wales Business Support from WRAP Cymru IEMA Driving Resource Efficiency St Davids Hall, Cardiff September 8 th 2010 Peter Webster Market Development Manager
2 Aims of today s discussion: Introduce WRAP and WRAP Cymru who we are, what we do Consider the need for more reprocessing infrastucture Outline our support for business current and (potential) future products Case Study of a major project a tale of blood, sweat and tears..with a happy ending?
3 WRAP.WHO?...What?...Why?: WRAP Waste and Resources Action Programme Established in 2000, circa 230 staff, budget circa 70M (Defra, Devolved Administrations) Programmes include construction, organics, manufacturing, retail, public sector Not for Profit business DEFINITELY not a QUANGO. npish
4 WRAP Cymru WHO?: WRAP Cymru funded by WAG (circa 6M) Sponsor Dept is DESH Waste Strategy Branch Programme integrated with Envirowise, CEW, DE&T etc 12 staff, Cardiff Bay Office, St Asaph, Pembrokeshire
5 MAKING A DIFFERENCE, TOGETHER Over the last eight years across the UK: Recycling rates have nearly quadrupled. Investment for 5.8 million tonnes extra reprocessing capacity. 12 million tonnes of CO 2 equivalent avoided.
6 WRAP S VISION: A world without waste, where resources are used sustainably. WRAP S MISSION: To help businesses and individuals reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way.
7 The UN s definition of resource efficiency: Reducing the environmental impact of the consumption and production of goods and services over their full life cycle.
8 The resource efficiency loop
9 Edinburgh Glasgow Cardiff Bristol
10 Why bother?: UK uses approx 680M tpa of material per annum, and wastes circa 50% Resource Efficiency quick wins could provide 10% of target reductions in GHG Welsh Businesses could save 318M per annum
11 Is More Reprocessing Infrastructure Needed?: Proximity principle reprocessing as close to source as practicable Estimated at least 25% of Welsh source separated recyclate leaves Wales for reprocessing Reprocessing has both environmental and economic benefits WAG targets for 70% recycling by 2024/25 implies need for massive increase in reprocessing (80% more input?)
12 Opportunities for the Reprocessing Sector?: Increased supply and gate fees (landfill increasingly expensive) Recyclate prices will rise, inevitably, as virgin materials do Welsh business demand for recycled inputs will rise Support is available
13 Expertise Based Business Support for the Reprocessing Sector from WRAP Cymru
14 Helping Reprocessors to Grow: WRAP Cymru can help with - Business planning and finding funding Identifying and exploiting market opportunities Management support Interim Management Technical support Intellectual Property protection
15 Finance Based Business Support for the Reprocessing Sector from WRAP Cymru
16 Funding Based Products: equip residual value guarantee scheme Capital Grants for Reprocessing Infrastructure De minimis grant to support recycling by SMEs De minimis grant to encourage use of recyclate in manufacturing
17 De Minimis Grant Schemes SME Support: SME recycling rates comparatively low Funding to establish new collection services with focus on SMEs Bring Site infrastructure for SMEs Capital + initial promotional costs Typically up to 50K Outputs are forecast quantities of material diverted from landfill
18 De Minimis Grant Schemes Recycled Content: Focus on SME manufactures To encourage substitution of virgin material inputs in product OR packaging Any non-metallic materials Capital costs only Typically up to 50K Outputs are forecast quantities of material diverted from landfill
19 Capital Grant Programme : MAP funding waste has to be 60% Commercial & Industrial (ie from business) First of its kind for Wales multi-round, multi sector competition but NOT a continuous scheme 3 rounds throughout Approximately 3m available each round Circa 6.5M grant lever in 19M investment, created 365k tpa reprocessing capacity
20 Capital Grant Programme : 3 priority waste streams identified by DESH Food Waste via Anaerobic Digestion (AD) Construction and Demolition waste C&I Plastic waste Max intervention rate = 30% No theoretical maximum grant Capital (but just about anything - buildings, plant) Evaluation based on VFM in terms of tonnages diverted/co2 saving
21 Capital Grant Programme ?: Convergence Funded (Convergence Region only) 6 + funding rounds from late 2010 Circa 2m per round Up to 45% intervention rate WON T have to have rigid C&I stipulation Waste streams to be guided by Towards Zero Waste and subsequent sector plans Evaluation based on VFM in terms of tonnages diverted/co2 saving and job creation
22 Major Project Case Study Insource Energy Circa 4.4M capex, 0.5M grant To treat 10k tpa C&I food waste Premier Foods (RF Brookes) at Rogerstone Single source of waste Single customer for energy What could be simpler..
23 Major Project Case Study Insource Energy Competition round launched May 2007 Grant offer November 2007 Contract with WRAP November 2008 Initial press launch April 2009 Planning granted July 2009 Revised contract with WRAP December 2009 Groundbreaking June 2010
24 Typical AD Installation by Envitec
25 Insource Build Progress January 2010
26 Insource Build Progress June 2010
27
28 Insource Build Progress Sept 2010
29 Insource Build Progress Sept 2010
30 Major Projects What causes delays? Planning (appeals, judicial review etc) Availability of commercial funding Licensing and permitting Grid connection Technology provider capacity
31 Joined up thinking on Incentives for (a?) Change: SME Recycling Support incentivises collection of recyclate from SMEs Capital Grants for Reprocessors to increase capacity in Wales to treat C&I waste, and produce high quality outputs And now.support for increasing Recycled Content for Welsh manufacturing SMEs
32 QUESTIONS? WHAT OTHER SUPPORT IS NEEDED?
Grays Waste Management
Grays Waste Management WRAP Cymru (Waste & Resources Action Programme in Wales) works directly with the recycling industry, specifically on waste management and materials recovery, and with reprocessing
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