Ricardo-AEAcms.clarkslegal.com/Uploads/n_24220151179163_The...–95% water plus 5% mixture of proteins, carbohydrates, plus some copper & phosphate •Current options: –Discharged

© Ricardo-AEA Ltd

www.ricardo-aea.com

Ricardo-AEA

23 February 2015

Forbury Investor Briefing

The role of Technology in the Circular Economy

© Ricardo-AEA Ltd Ricardo-AEA in Confidence 2

• A personal welcome

• The Circular Economy

• An overview of Bioeconomy technology

• Innovative technology focus and the investor’s view:

– Production of biofuels from advanced feedstocks and waste streams

– The transformation of hazardous waste into useful products

– Circular economy thinking within the automotive sector

• Conclusions

• Any questions?

The role of technology in the Circular Economy

A personal welcome


• Principal Consultant at Ricardo-AEA

– Within a practice of 85 plus consultants (mainly UK based)

• Working within the due diligence business area

– Due diligence of pyrolysis plants and biomass plants for investors

– Waste market due diligence

• Currently supporting our energy practice who are delivering biofuels projects for the Department of Transport

– Waste site conversion from heat and power output to biofuels

– Biofuels demonstration plant grant funding competition

• Previous experience

– Owners’ Engineer roles on Buckinghamshire and Exeter EfW plants

– Independent Certifier roles

A personal welcome


My sponsor – www.ricardo-aea.com


Ricardo corporate strategy - circular in theme!


• On Ellen MacArthur Foundation CE metrics review panel

• On BSI circularity working group

• On the Ellen MacArthur Foundation map of global CE practitioners

A leading circular economy consultancy


• Circular economy evidence building for Scottish Gov. opportunities in the food sector

– Assessment of resource flows and potential for circular economy opportunities in the whisky, beer and fish sub-sectors

• Closing the Loop: Optimising food, feed, fuel & energy production opportunities in UK

– Assessment of 3 integrated biological production systems to produce multiple outputs

• Circular economy and regulation

– Assessment of barriers & opportunities of regulations for developing a circular economy in Scotland

• Circular economy business models pilot projects

– Identifying and developing trials of new public sector procurement approaches

• The economic impacts of circular economy business models

– Potential macroeconomic impacts of shifting towards more circular economy business models in retail environments

Our ‘creds’ ....

The Circular Economy


• A Circular Economy is about managing manufactured stock (physical capital) and preserving its embodied resources

• The Circular Economy requires technology that enables us to move up the waste hierarchy and retain more value in materials

The Circular Economy

Prevention

Preparing for reuse

Recycling

Other recovery - including energy

recovery

Disposal

Transforming Waste

From Waste to Resource


• Significant recent interest in what policies can help deliver a Circular Economy…

– [Primary resource supply risks + (disruptive) innovation + targeted policies] = circular economy take off !!!

• State of the Nations think piece written by Ricardo-AEA for Resource 2015

– Will be live next week

• Five broad policy areas:

– National ambitions

– Resource security

– Product design

– Waste policies

– Producer responsibility

Policies for a Circular Economy


• Where we have been….

– The recycling economy

• Technology and infrastructure lagged behind the needs of recycling drivers

• A lot of investment was required, which is only now coming on stream

• Where we are going…..

– The Circular Economy

• Is there a danger that technology and infrastructure will once again lag behind the ambitions of the Circular Economy and stifle it at birth?

The Big Issue


• The Bioeconomy is a key part of Circular Economy thinking and can assist in making the transition to a more resource efficient society that relies more strongly on renewable biological resources to satisfy consumers' needs, industry demand and tackle climate change

• The Bioeconomy makes optimal use of available feedstocks, using innovative technology to create higher value products

– Heat and power are the least value products in a Bioeconomy

– Biofuels and chemicals are progressively higher value products

The Bioeconomy


Bioeconomy technology overview

Innovative Technology Focus


• Our international competitors are building biofuels demonstration plants - the Department for Transport does not want the UK to be left behind

• Through a current demonstration plant competition, DfT aims to:

– Help meet Renewable Energy Directive targets for the UK

– Stimulate economic growth

– Increase intellectual property in the UK

• Policy uncertainty holds back investors, the EU are to debate the setting of biofuels implementation targets this week

• The investor’s view: Very challenging… first of a kind, high capex for first plant, no guarantees, only operational data is from a pilot plant, policy shifts, feedstock uncertainty…..grant funding needed.

Biofuels Production from Advanced Feedstock


• A major by-product from malt whisky industry (3 Mtpa)

– 95% water plus 5% mixture of proteins, carbohydrates, plus some copper & phosphate

• Current options:

– Discharged to sea

– Spread to land

– Evaporate to Pot Ale Syrup animal feed

– Wastewater treatment processes

• Potential uses (in development):

– Bio-refining / Fermentation produces butanol ethanol, acetone, hydrogen & animal feed

– Low energy extraction of high purity protein

– Anaerobic Digestion; Microbial fuel cell; Algae production

Biofuels Production from Advanced Feedstock What to do with Pot Ale?


• Biofuel from AD is well established - using advanced feedstocks such as MSW and RDF will require very different and potentially complex processes:

– MSW to biofuel, different advanced processes possible:

• Pyrolysis of MSW to produce a syngas with high quantities of methane, clean up and liquefaction to produce LBM.



• Plasma gasification of MSW to produce a syngas at stage 1. Methanisation of syngas, clean up and injection to grid at stage 2.

• Biogenic fraction extracted from MSW and converted to clean sugars; sugars fermented to produce bioethanol and biomethane



• Technology is enabling the transformation of hazardous wastes into a useable product:

– Plasma gasification of hazardous waste to produce a vitrified char

• Waste is contained to avoid manual handling

• Destroys pathogenic microbes and hazards in clinical waste

• Even radioactive waste can be reduced in volume

• The vitrified char is able to used as an aggregate

Hazardous Waste in the Circular Economy Transformation of Hazardous Wastes


– Capture of Air Pollution Control residues (APCr) in concrete building materials or for use as an aggregate.

• Is a viable alternative to hazardous landfill. Stabilises the hazardous content

but does not reform it.

• The investors view:

– Plasma gasification of hazardous waste is bankable, commercial operation has been proven in many plants

– The APCr transformation process to concrete blocks has now achieved end of waste status and is therefore also considered bankable

Hazardous Waste in the Circular Economy Transformation of Hazardous Wastes


• Although automobiles have advanced greatly, the way in which personal transport has been provided has remained relatively static for over a century. The internal combustion engine was first applied to an automobile in 1885!

…………but it is now changing.

The Circular Economy in the automotive sector


• Electric vehicles (if they become viable) will need to reuse battery packs as there is simply not enough lead or lithium resource to power the world’s electric vehicles.

• Enlightened manufacturers are now offering a personal transport service ….electric vehicles for short journeys, traditional IC engines for longer trips and electric bicycles for inner cities.

• Driverless cars open up many more possibilities:

• Cars could be provided on demand to our door. Cars as a resource are not used for 86% of their life time when they sit on our drive or in carparks.

• The investors view: Large automotive corporations (particularly upmarket brands with margin to innovate can fund electric and driverless vehicle development.




• Plasma technology can also be used to recover precious metals such as platinum from catalytic convertors. High temperature plasma melts the material to enable pour off of the precious metal.

• The investors view: A proven and bankable process, there are many operational plants worldwide

Conclusions


Conclusions

• Technology and new infrastructure is needed to fully realise the Circular Economy dream

• Lots of studies have made the case for the economic benefits at the macro scale – Ellen McArthur Foundation etc. but do they stack up at the individual material/manufacturer/logistic level?

• Some technology supporting the Circular Economy is already bankable

• Many other emerging technologies have too many risks and low rates of return to tempt investors

• These emerging technologies will need support from governments to reach commercial reality


Ricardo-AEA’s Role in the Circular Economy

• Ricardo-AEA is working with national governments, manufacturers, supply chains and stakeholders to create the understanding and evidence base needed for new policies and business processes that can enable the transition to a Circular Economy

• Ricardo-AEA is supporting emerging technology in the circular economy to increase the value of materials within waste streams building ion our track record in the Recycling Economy

• Ricardo plc is assisting automotive clients to transform the way the automobile industry works

© Ricardo-AEA Ltd

www.ricardo-aea.com

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Ricardo-AEA Ltd

The Gemini Building

Fermi Avenue

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Thank You

Mark Ramsay

01235 75 3230

[email protected]

www.ricardo-aea.com

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Ricardo-AEAcms.clarkslegal.com/Uploads/n_24220151179163_The...–95% water plus 5% mixture of proteins, carbohydrates, plus some copper & phosphate •Current options: –Discharged