What is the Real Story about Emerging Technologies? Materials Management as a Waste Management Strategy

Transcription

1 What is the Real Story about Emerging Technologies? Materials Management as a Waste Management Strategy Presentation overview Presented to the National Association of Counties Susan Robinson, WM Government Affairs May 24, 2012 Page 2 Waste Management is North America s leading provider of integrated waste management and environmental solutions WM s 2011 Financial Stats $13.38B IN REVENUE $1.2B FREE CASH FLOW $1.2B RETURNED TO SHAREHOLDERS $1.32B CAPITAL EXPENDITURE WM Sustainability Facts Creates enough energy to power more than 1.1M homes every year Manages more than 10 million tons of recyclable commodities Dedicates 26,000 protected acres to wildlife habitats WM s 2011 Sustainability Stats As of March 2012 Page 3 Trends in the Waste Sector: 1980 to 2010 Industry Trends Solid waste generation/person/day 3.66lbs. 4.43lbs. Recycling rate 10% 34% % of waste disposal to landfill 89% 54% Reduction Technology Diversion Extended Producer Responsibility Industry Implications v Million tons of MSW Generated in U.S./year (before recycling) Sustainable Supply Chains and Packaging Management Economy Increased Regulation and Compliance Increased Recycling Rates Emerging Conversion Technologies Increased demand for Zero Waste Solutions Reduction in overall volumes Many New Non-Traditional Competitors Increased Cost of Service and Logistics gasification anaerobic digestion Over the last few decades, the generation, recycling, composting, and disposal of MSW have changed substantially. pyrolysis incineration refuse-derived-fuel fermentation Page 5 Page 6 1

2 Accelerating the rate of change: Trends in policy and business Creating value from waste: Technology developments reduce GHG emissions TRENDS IN BUSINESS Our customers are developing comprehensive and aggressive sustainability goals. This is not only good for the environment and for local economic conditions Food and organics Scraps Renewable energy is generated from landfill gas and other technologies TRENDS IN POLICY Energy efficient buildings & fleet powered by recycled organics More states and cities have mandatory recycling laws An increasing number of cities require commercial recycling of paper & metals States and cities are restricting disposal options for polystyrene, plastics bags, and organics Grow more food Soil amendments Processing Collection Fuel is created Alternative fuels, such as CNG, LNG, ethanol & biodiesel are being made from waste products Page 7 Page 8 New Technologies Companies are investing in technology to capture energy Over 550 companies are investing in new conversion technologies. Only 130 facilities are currently operating. Most are on Japan and Europe due to policies and cost drivers. There is no single solution we ll need a range of technologies to achieve our energy goals. Buyer Beware - a word of caution: Commercial scale projects are just starting to be developed. None have been proven to scale for municipal solid waste. Page 9 Creating value for us and for our customers: A Holistic Approach to Materials Management We don t manage waste, we manage resources. We are striving to minimize our customers and our own impacts on the environment, and to maximize the value of the materials we manage. To us, the material we pick up from our customers is feedstock for advanced conversion technologies. Page 11 Page 12 2

3 OGG portfolio is distributed across four platforms: RENEWABLE ENERGY Maximizing value of landfill gases CONVERSION TECHNOLOGIES Converting segments of the waste stream into valuable energy sources Platforms of Focus RECYCLING CONSUMER TECHNOLOGIES FOCUS Repurposing segments of the Provide new customer-facing waste stream into valuable collection and engagement products solutions to meet demand and respond to segmentation of waste stream WM will build out technology platforms and components Portfolio investments focus on creating optionality to customize solutions WM s investments aim to extract the most value from its customers materials WM s post-collection portfolio WM s Beyond Waste technologies WM solutions Traditional recycling Diversion alternatives Waste to energy Landfill A Sorted MSW Recyclable materials are recovered from solid waste then the residual is gasified to produce electricity or converted to transportation fuels or B Conversion of recovered plastics Plastics used as a feedstock to produce transportation fuels and C Organic alternatives Pre- and post-consumer food waste and yard waste used as a feedstock to produce compost, electric power, or transportation fuels Enerkem InEnTec Fulcrum Genomatica Agilyx WM Sites/CORe Peninsula Garick Harvest Power Terrabon Page 13 Page 14 Page 14 WM invests in beyond waste technologies EXAMPLES OF TECHNOLOGIES WM HAS INVESTED IN: Converting organics to renewable energy SYNGAS & CHEMICALS CONVERT MSW TO SYNGAS THAT CAN BE FURTHER CONVERTED TO SPECIALTY CHEMICALS COMPOST AND ENERGY CONVERT ORGANIC WASTE TO COMPOST & ENERGY THROUGH ANAEROBIC DIGESTION TRANSPORTATION FUEL CONVERT MSW TO SYNGAS THAT CAN BE CONVERTED TO FUEL. CONVERT LFG TO NATURAL GAS & SYNTHETIC DIESEL Harvest Power s anaerobic digesters will create biogas that will be used to generate renewable electricity from organic material. The materials we manage feed these processes. Page 15 Page 16 Converting organics to biofuel Converting MSW to alternative transportation fuels, electricity and manufacturing feedstocks InEnTec s plasma gasification technology will produce flexible, clean fuels and energy. Terrabon is developing a process that will ultimately convert food waste into biofuel (i.e. green gasoline or diesel fuel) The first facility has been constructed in Arlington, Oregon and is ramping up its operations. Page 17 Page 18 3

4 Converting mixed-waste-plastics to high-octane syncrude Converting waste into ethanol Converts low value, hard to recycle and contaminated plastics into a high value, synthetic crude oil. The first plant is operating in the Portland, Oregon area with the second in the final permitting process. Enerkem s gasification technology converts waste materials into a locally produced green fuel. Feedstock includes municipal solid waste, construction and demolition wood and forest residuals. Page 19 Page 20 Converting waste into ethanol Converting waste to syngas to Produces ethanol from MSW. Fulcrum uses a dual stage gasification process that has been tested over the past two years at a smaller scale. The first plant is permitted and is being built in Storey County, Nevada. Sierra BioFuels will be completed in WM has a joint development agreement with Genomatica to research and advance the production of from MSW. Creates specially designed organisms and manufacturing processes to convert syngas into chemical products. This is the first biology-based process making this conversion, instead of higher energy chemical-based conversions. Page 21 Page 22 Waste Management s New Technology Portfolio Renewable Energy WM s New Technology Portfolio Recycling High Mountain Fuels Landfill or biogas gas to CNG JV with Linde Group Gas-to-liquids Landfill gas, biogas, or natural gas to LNG Organic Recycling Recycling of food, yard, and biomass residuals into fertilizer and biogas through co-digestion Recycles roof shingles into Asphalt Products asphalt road products Conversion Gasification of MSW to fuel Commercial-scale facility tpd MSW to ethanol via large-scale plasma gasification Commercial-scale facility tpd Organics to electricity via aerobic and anaerobic digestion Converts low value, hard-torecycle waste plastic to synthetic crude oil using pyrolysis Consumer-facing Manufacturer and marketer of organic garden products Mercury Waste Solutions Owns largest in-vessel organics composting facility in eastern US Extracts mercury and phosphor powder from spent fluorescent light bulbs Uses recycled PET to create products with lower density, lower material costs, and fewer environmental impacts than virgin PET Organics to drop-in fuel via anaerobic fermentation Processes high moisture organics which are difficult to gasify Develop proprietary process that utilizes biological organisms that convert syngas to high-value Plasma arc gasification of hard to treat non recyclable materials, hazardous wastes, medical wastes etc Low-temperature, smaller scale gasification of biomass to syngas Affinity program focused on increasing recycling rates offered as a value enhanced service Dumpster-in-a-bag sold through home improvement stores as a convenient retail friendly alternative to a conventional dumpster Has spun out of OGG into core operations Intelligent, solar-powered recycling/trash compactors reduce collection costs At-your-door collection of household hazardous waste Page 23 Page 24 4

5 Looking forward: where do we go from here? Beyond Waste Solutions Challenges and solutions for rethinking waste We are working to improve the understanding of new technologies in order to facilitate clean energy programs. Reducing the conflicts between solid waste policies, state renewable energy policies, and federal renewable fuel goals is critical. We are working to educate regulators on the technologies and opportunities for GHG emission reductions. New technologies will reduce our reliance on foreign oil, reduce GHG emissions and create local economic development opportunities. There is no single solution and many of these technologies are 2-5 years from being proven at commercial scales. Page 25 Page 26 Looking forward: How can we all help to move beyond waste? Zero Waste to Beyond Waste Think broadly about materials management and overall GHG emission reduction goals Organics diversion, materials bans and Product Stewardship are significant trends throughout the U.S., though the speed of change varies dramatically by location. Connectivity between solid waste/recycling, energy and transportation fuel is an important trend. These are all intertwined and we have the ability to influence policy that will positively impact us all. Local policies play a key role in the future of this effort, which can ultimately have global environmental implications Page 27 5