One-Steel Recycling Waste ferrous metal in Australia Estimate of steel disposed to landfill
Hyder Consulting Pty Ltd ABN 76 104 485 289 Level 5, 141 Walker Street Locked Bag 6503 North Sydney NSW 2060 Australia Tel: +61 2 8907 9000 Fax: +61 2 8907 9001 www.hyderconsulting.com One-Steel Recycling Waste ferrous metal in Australia Estimate of steel disposed to landfill Author Jessica North Checker Ron Wainberg Approver Julian Galloway Report No AA002712-R01-03 Date 31 August 2009 This report has been prepared for One-Steel Recycling in accordance with the terms and conditions of appointment for Estimate of steel disposed to landfill dated 30 July 2009. Hyder Consulting Pty Ltd (ABN 76 104 485 289) cannot accept any responsibility for any use of or reliance on the contents of this report by any third party. Hyder Consulting Pty Ltd-ABN 76 104 485 289
CONTENTS 1 INTRODUCTION... 1 2 METHODOLOGY... 1 2.1 Data sources... 1 2.2 Assumptions... 3 3 RESULTS... 4 3.1 Discussion... 6 3.2 Conclusion... 7 Hyder Consulting Pty Ltd-ABN 76 104 485 289 Page i
1 INTRODUCTION OneSteel Ltd (OneSteel) has engaged Hyder Consulting Pty Ltd (Hyder) to provide an estimate of the quantity of steel disposed to landfills in the municipal solid waste (MSW), commercial and industrial (C&I) and construction and demolition (C&D) waste streams in Australia. The study also examines the quantity of steel recovered from MSW, C&I and C&D wastes. The primary focus of the study has been steel in the C&I and C&D streams MSW data has been included for comparison. 2 METHODOLOGY 2.1 Data sources The quantity of steel disposed of to landfills in Australia was estimated using MSW, C&I and C&D waste data available for New South Wales (NSW), Victoria (Vic), South Australia (SA), Western Australia (WA), and Queensland (QLD). Data was obtained from various sources, as noted, including waste audits, industry reports, and state government publications. In some cases, current data was not available, and estimates have been extrapolated from pre-2009 figures (see assumptions below). In all cases, the quality of data is uncertain: due to the bulky and variable nature of C&I and C&D wastes (i.e. each vehicle load of waste is different), even a comprehensive waste audit spanning several days/weeks may not generate accurate, truly representative data. Data was not available for the Northern Territory (NT) and Tasmania (TAS), but has been inferred from other state data and demographics (see assumptions below). Table 1 lists the data sources referred to in the present study. Hyder Consulting Pty Ltd-ABN 76 104 485 289 Page 1
Table 1 - Data sources for steel waste disposal and recovery, C&I and C&D waste streams State NSW Vic WA SA QLD ACT NT TAS General Data source(s) Department of Environment and Climate Change (2007). Waste and recycling data for C&I and C&D waste streams (unpublished data) Golder Associates Pty Ltd and Waste Audit and Consultancy Services (Aust) Pty Ltd (2005). Disposal Based Waste Survey for Sustainability Victoria. June 2005 EcoRecycle Victoria. (2000). Understanding the Waste Stream. Part 1: Statistical Overview EcoRecycle Victoria. (2008). Annual Survey of Victorian Recycling Industries 2006-2007 EcoRecycle Victoria. (2002). Solid Industrial Waste Plan - Data Report. December 2002. Prepared by: Nolan-ITU Cardno (WA) Pty Ltd. (2008) DETAILED INVESTIGATION INTO EXISTING AND POTENTIAL MARKETS For CONSTRUCTION AND DEMOLITION MATERIAL. Report to Department of Environment and Conservation, WA Golder Associates Pty Ltd and Waste Audit and Consultancy Services (Aust) Pty Ltd (2007). Disposal Based Audits of the C&I and C&D Waste Streams for the Department of Environment and Conservation. March 2007 Waste Audit and Consultancy Services (Aust) Pty Ltd (2002). SA Rural Landfill Waste Audit 2001. March 2002 Waste Audit and Consultancy Services (Aust) Pty Ltd (2007). Disposal Based Survey Zero Waste SA. October/November 2007 Hyder Consulting Pty Ltd (2008). Recycling Activity in South Australia. Report to Zero Waste SA Queensland Government, Environmental Protection Agency (2007). The state of waste and recycling in Queensland 2007 Technical Report Total Environment Centre State of Waste Series: Queensland, 2007 (2005 data) ACT (2002/03). No Waste Report Hyder Consulting Pty Ltd (2006). Waste and Recycling in Australia. Short Paper. Australian Bureau of Statistics 2003-2006 business report Australian Bureau of Statistics 2003-2006 business report Hyder Consulting Pty Ltd (2008). Australian Recycling Values Final Report to the Australian Council of Recyclers (ACOR) Hyder Consulting Pty Ltd (2008). National Steel Can Recycling Survey Report for the Australian Food and Grocery Council and the National Packaging Covenant Council. Page 2 Hyder Consulting Pty Ltd-ABN 76 104 485 289
2.2 Assumptions The following assumptions, presented in Table 2 have been made to estimate steel disposal and recovery tonnages for each State. Note that, for all States, steel waste disposal and recovery in the MSW stream is assumed to be adequately represented by values provided in the National Steel Can Recycling Survey (Hyder 2008 see previous table of references) and Australian Recycling Values Final Report to the Australian Council of Recyclers (ACOR) (Hyder 2008 see previous table of references). For MSW, only steel cans have been considered in the current study. Table 2 - Assumptions in estimates of steel waste disposal and recovery, C&I and C&D waste streams State Steel disposal to landfill Steel recovery NSW Vic WA SA QLD ACT NT Data provided by DECC represents total steel disposal for NSW C&I and C&D, extrapolated from 2007 audit results Waste stream composition values (1% steel for both C&I and C&D) from 2005 audit have been applied to tonnage data from 2003 report Waste stream composition values (3% steel for both C&I and C&D) from 2007 audit have been applied to tonnage data from 2003 audit Waste stream composition values (3% steel for both C&I and C&D) from 2007 audit have been applied to tonnage data from 2002 report Waste stream composition values (3% steel for both C&I and C&D) used for WA and NSW are assumed to be applicable to QLD, and have been applied to tonnage data from 2005 Figures provided in Hyder (2006) (Waste and Recycling in Australia) are representative of current disposal activity Steel disposal is assumed to be proportional to commercial/industrial activity, and NT represents 1% of Australia s C&I activity; using NSW disposal data, a weighted value has been calculated for NT Data provided by DECC represents total steel recovery for NSW C&I and C&D, extrapolated from 2007 audit results Values provided in the Annual Survey of Victorian Recycling Industries 2006-2007 correctly represents current steel recovery in Victoria Approximately 90% of recycled metals in both C&I and C&D is ferrous (based on detailed audit results for SA and NSW) 2002/03 figures are representative of current recycling activity 2006/07 figures are representative of current recycling activity The figure reported for ferrous metal recycled (11,021 tonnes) in 2002/03 includes 1,000 tonnes of MSW ferrous metal, which has been subtracted Recycling activity in NT is assumed to be poor, with a recovery rate of 50% TAS Steel disposal is assumed to be proportional to commercial/industrial activity, and TAS represents 1.9% of Australia s C&I activity; using NSW disposal data, a weighted value has been calculated for TAS Recycling activity in TAS is assumed to be poor, with a recovery rate of 50% Hyder Consulting Pty Ltd-ABN 76 104 485 289 Page 3
3 RESULTS Results are shown in Table 3. Estimates suggest that Queensland disposes the highest quantity of ferrous metal (81,690 tonnes), followed by WA (58,650 tonnes). NSW and Vic are comparable, with disposal of 32,659 and 28,700 tonnes, respectively. In total, an estimated 211,835 tonnes of ferrous metal are disposed of to landfill each year. SA has the highest diversion rate for steel (98%), and recovers 289,000 tonnes per year. Vic and NSW recover the most ferrous metal (816,228 and 812,260 tonnes, respectively). In total, an estimated 2,512,284 tonnes of ferrous metal are recovered each year in Australia. Page 4 Hyder Consulting Pty Ltd-ABN 76 104 485 289
Table 3 - Estimates of steel waste disposal and recovery, C&I and C&D waste streams State Steel disposal C&I Tonnes Steel disposal C&D tonnes Steel can disposal MSW tonnes Steel disposal C&I and C&D tonnes Steel disposal MSW, C&I and C&D tonnes Steel recovered C&I tonnes Steel recovered C&D Tonnes Steel cans recovered MSW Tonnes Steel recovered C&I and C&D Tonnes Steel recovered MSW, C&I and C&D Tonnes % C&I and C&D steel recovered % MSW steel cans recovered % MSW, C&I, C&D steel recovered NSW n/a n/a 30,452 32,659 63,111 n/a n/a 12,989 812,260 825,249 96% 30% 93% Vic 11,000 17,700 18,369 28,700 47,069 358,344 457,884 13,633 816,228 829,861 97% 43% 95% QLD n/a n/a 18,665 81,690 100,355 n/a n/a 4,754 351,000 355,754 81% 20% 78% SA 3,959 1,430 6,917 5,390 12,307 n/a n/a 1,861 289,000 290,861 98% 21% 96% WA 12,600 46,050 9,400 58,650 68,050 156,600 73,800 2,205 230,400 232,605 80% 19% 77% TAS n/a n/a 1,546 1,799 3,345 n/a n/a 976 2211 2,775 50% 39% 45% NT n/a n/a 1,010 947 1,957 n/a n/a 147 1164 1,094 50% 13% 36% ACT 2,000 0 1,486 2,000 3,486 n/a n/a 388 10,021 10,409 83% 21% 75% Total 87,845 211,835 299,680 36,953 2,512,284 2,548,607 92% 30% 89% Hyder Consulting Pty Ltd-ABN 76 104 485 289 Page 5
3.1 Discussion Due to the quality of the available data for ferrous metal disposal and recovery, the accuracy of estimates in the present report cannot be confirmed. The accuracy of disposal data largely depends on the size and scope of waste audits, which tend to be only sporadically undertaken due to cost. C&I and C&D waste audits are particularly costly and difficult due to the large, bulky, and diverse waste loads that arrive at landfills and transfer stations. However, several points are worth noting: NSW and Vic have comparable steel disposal figures (around 30,000 tpa), and account for 35% and 25% of Australian businesses, respectively. Both states actively encourage steel recycling through comparatively high landfill levies and waste minimisation programmes aimed at C&I and C&D wastes. NSW and Vic may also have the best access to steel recycling markets, and thus a greater economic incentive to recover the material (as reflected in the high recycling rates). Although only 10% of businesses are located in WA, the high levels of steel disposal (58,650 tpa) could reflect less access to recycling facilities and markets, with transport logistics impacting on the economic incentives to recover steel. Although 20% of businesses are located in QLD, the high levels of steel disposal (81,680 tpa) may reflect the lack of landfill levy and minimal effort to reduce C&I and C&D wastes. Transport logistics may also impact on the economic incentives to recover steel. The rate of steel disposal in SA (5,390 tpa) appears to reflect the lower number of businesses in the State (3%). Zero Waste SA is also extremely proactive in diverting waste from landfill, which may explain the very high levels of steel recycled (289,000 tpa). Disposal and recycling data for TAS and NT have been inferred from data available for the other States. Floc from metal reprocessors may contain steel, but is not counted as ferrous metal in waste audits (due to the mixed, multi-material nature of floc). MSW steel can disposal has been calculated from figures available for steel can consumption (both locally produced and imported cans) and recovery. Comparing several years worth of data, the consumption and recovery patterns appear similar, which suggests that, although a quantity of steel cans will presumably not be disposed of each year (i.e. cans stored for several years after consumption), the annual turnover remains fairly consistent. Steel recycling data is also difficult to interpret: in some State databases, information is presented as total steel recovered, and in others the distinction is made between steel recovered and recycled in-state, steel imported in-state to recycling facilities, steel recovered for export to recycling facilities (ex-state or overseas). Therefore, there may be a degree of double-counting, where steel reported as recycled in one State is then exported to a reprocessor in another State, and counted again as recycled. Alternatively, steel recovery may be underestimated if States only report quantities of metal recycled in-state. To cross-check steel recycling figures, an Australian Council of Recyclers (ACOR) study has been consulted. 1 In the study, ACOR members reported annual recovery of 3,000,000 tonnes of 1 Hyder Consulting Pty Ltd (2008). Australian Recycling Values Final Report to the Australian Council of Recyclers (ACOR). Page 6 Hyder Consulting Pty Ltd-ABN 76 104 485 289
steel across Australia. Although ACOR does not represent all metal recyclers in the country, from the figures provided it was estimated that around 3,480,000 tpa of steel are recovered in total in Australia (2007 figures). This figure includes steel recovered from MSW, C&I, and C&D waste streams, and is around 960,000 tonnes greater than the estimate in the current report. It is possible that MSW steel (and C&I steel collected as MSW, such as SME s using municipal recycling services) accounts for the additional 960,000 tonnes. Without further research to develop more representative data, the discrepancy in results cannot be further clarified 2. An Australia-wide, comprehensive survey, with a clearer indication of steel recovered from MSW versus C&I and C&D waste streams, would produce considerably more robust information. 3.2 Conclusion The current study provides a best estimate of steel disposal and recycling for the Australian C&I and C&D waste streams, and an indicative estimate for steel can disposal and recycling in the MSW stream, using available data sources. Steel recovery is high in Australia (around 90% overall) due to the high market value of metal. In total, an estimated 299,681 tpa of steel is disposed of to landfill, and 2,548,607 tpa is recovered for recycling. 2 It has been suggested by an ACOR member that the figure in the ACOR report (3,480,000 tpa) may have been an overestimation of the actual level of steel recycling in Australia, and that the figure suggested by the present report is more realistic (personal communication, Vince Chaplin, 13 August 2009). Hyder Consulting Pty Ltd-ABN 76 104 485 289 Page 7