What is Eco-Industrial Development? Sponsored by City of Modesto Presented by The National Center for Eco-Industrial Development A Joint Project of the University of Southern California and Cornell University Modesto March 12, 2003

The National Center for Eco-Industrial Development  Grew out of a partnership between Leonard Mitchell (USC) and the late Ed Cohen-Rosenthal (Cornell University)  to develop tools to expand the development of eco- industrial parks through-out the United States  Funded by the Economic Development Administration, U.S. Department of Commerce; and the Environmental Protection Agency

The mission of the National Center for Eco- industrial Development is to facilitate job creation and sustainable industrial expansion in distressed communities around the nation by applying principles of industrial ecology; establishing eco- industrial parks, and expanding use of environmentally benign manufacturing processes and techniques. Mission

Outline  What is Eco-Industrial Development?  Industrial Ecology  Eco-Industrial Development  Eco-Industrial Parks  Eco-Industrial Networks  Benefits  Risks  Conditions for Favorable Eco-Industrial Development  Examples of Eco-Industrial Development

Eco-Industrial Development  Concept and Approaches  Pollution prevention/Waste minimization  Byproduct exchange  Green design  Life cycle analysis  Technological innovation  Optimizing resource use  Fostering networks among businesses

Industrial Ecology " One of the most important concepts of industrial ecology is that, like the biological system, it rejects the concept of waste." - T. Graedel and B. Allenby, Industrial Ecology, 1995 “Waste equals food: An ecological model of commerce would imply that all wastes have value to other modes of production so that everything is either reclaimed, reused, or recycled…The restorative economy comes down to this: We need to imagine a prosperous commercial culture that is so intelligently designed and constructed that it mimics nature at every step, a symbiosis of company and customer and ecology.” - Paul Hawken, The Ecology of Commerce, 1993

Domains of Industrial Ecology  Technical  Engineering perspective with technological innovation  Business System and Networks  Shared services, transportation, and facilities  Community-Business Interactions  Symbiotic networks  3 Es: Economy, Environment, Equity Source: Mary Schlarb. Eco-Industrial Development: A Strategy for Building Sustainable Communities, 2001

Forms of Eco-Industrial Development  Eco-Industrial Parks  Co-located businesses  “Closed loop” with significant byproducts  Continuous environmental and societal improvements  Eco-Industrial Networks  Virtual EIPs: Regional waste exchange network  Optimize material flow efficiencies and scale economies through resource recovery and exchange  EIN can bring scale economies required for developing a byproduct market

Industrial Symbiosis Kalundborg, Denmark

Eco-Industrial Development Strategies  Resource Recovery, Pollution Prevention, and Cleaner Production  Integration into Natural Ecosystems  Industrial Clustering  Green Design  Anchor Tenant  Life Cycle Assessment  Deconstruction and De-manufacturing  Environmental Management Systems  Technological Innovation & Continuous Environmental Improvement  Job Training  Public Participation and Collaboration Source: Mary Schlarb. Eco-Industrial Development: A Strategy for Building Sustainable Communities, 2001

Benefits  Economic Efficiency and Profitability  Job Creation  Improved business attraction, expansion, & retention  Community Development  Local import substitution  Environmental justice  Brownfields redevelopment  Public-private partnerships  Environmental Stewardship Source: Mary Schlarb. Eco-Industrial Development: A Strategy for Building Sustainable Communities, 2001

Environmental Benefits  Reduced greenhouse gas emissions  Reduced air emissions & improved community health  Promotion of pollution prevention & the 4 R’s  Reduce, Reuse, Recycle, Recover  Improved resource conservation  Promotion of green technology  Increased environmental awareness  Regeneration of green space

Risks  Financial  Interdependence  Transaction costs  Regulatory  Environmental Source: Mary Schlarb. Eco-Industrial Development: A Strategy for Building Sustainable Communities, 2001

Conditions Favorable for EID  Supply of by-products must meet demand (and vice versa)  Form relationships based on connections or institutional framework to reduce transaction costs  Proximity to compatible firms with stable supply and quality of byproducts  Regulations that penalize waste and provide firms’ incentives to seek symbiotic relationships with other firms Source: Mary Schlarb. Eco-Industrial Development: A Strategy for Building Sustainable Communities, 2001

Examples of Eco-Industrial Development  Port of Cape Charles Sustainable Technologies Industrial Park, Virginia  Green Institute, Minneapolis, MN  Phillips Eco-Enterprise Center  Londonderry Ecological Industrial Park

By-Product Exchange Municipal Recovery Facility Ethanol Production Furniture Factory Particle Board Factory Recycled Paper Manufacturer Waste Paper Scrap Wood Sawdust AquacultureBiomass Cogeneration Facility Steam

By-Product Exchange Ethanol By-Products: Lignin Gypsum Yeast Ethanol Plant Major Inputs: Agricultural residues or Wood wastes Sulfuric Acid Steam from a Cogeneration Facility Potential Exchange Partners: Wallboard Manufacturer Animal Feed Manufacturer