Solid Recovered Fuel (SRF) production today and a Projection into the Future Presentation to the FEAD International Conference Bruges, 18 October 2002 Paul Huggard (SITA) & Bernard Lanfranchi (Vivendi Environnement)

Terminology Several terms / concepts are currently used in EU:Several terms / concepts are currently used in EU: -SRF (Solid Recovered Fuel) -RDF (Refuse Derived Fuel) Common feature: fuels produced from wasteCommon feature: fuels produced from waste Definition of SRF proposed by CEN standardisation committee (TC343):Definition of SRF proposed by CEN standardisation committee (TC343): -Solid Recovered Fuel: « Fuel prepared from non hazardous waste to be utilised in waste incineration or co-incineration plants » -Fuel: « Energy carrier intended for energy conversion »

Solid recovered fuels fit into a range of other waste-derived fuels, based on European law Level of environmental risk of the untreated waste Low High Biomass RES-E (1) directive Landfill biogas RES-E directive SRF WI (2) directive Substitute fuel from hazwaste WI directive A common denominator of these fuels is that they contribute to sustainable development... …either through generation of electricity/heat or substitution for fossil fuel (1) Renewable Energy Sources - Electricity (2) Waste Incineration High Complexity of required pre-treatment

SRF production currently represents a tiny part of the European waste market... Rising to 14 Mt, 3.4% of volumes treated in Europe as a whole in 2005 Source: CEN Report, 2001

…but production volumes are expected to grow rapidly in the next few years Projected growth in SRF production volumes, selected EU countries, Sources: CEN / FEAD estimates 2000 : 1.4 MT produced 2005 : 12.4 MT produced Compound annual growth rate = 54%

SRF can bring added value to the search for a secure energy source in Europe Same order of magnitude (lower tonnage compensated by higher calorific value)Same order of magnitude (lower tonnage compensated by higher calorific value) Total EU15 production of primary energy: 790 MTOE/Year in 2001Total EU15 production of primary energy: 790 MTOE/Year in 2001 Actual development of SRF production will be conditioned byActual development of SRF production will be conditioned by -Legislative / regulatory factors -Technical / economic factors Estimated recovered energy from EfW plants in 2005 in EU 15 countries: in 2005 in EU 15 countries: 3,7 MTOE / Year Potential recovered energy from SRF production plants in 2005 in EU 15 countries: in 2005 in EU 15 countries: 5,8 MTOE / Year

Legislative / Regulatory factors: two possible trends At national level: towards possible assimilation of SRF to fuel when its characteristics are close to those of commercial fuelsAt national level: towards possible assimilation of SRF to fuel when its characteristics are close to those of commercial fuels  Certain national situations already tend towards this interpretation (Scandinavia, Austria, Italy) At European level: towards stricter interpretation of waste derived fuel status, along with the CEN mandate  Waste status applicable to all RDF, SRF  Consequence: RDF/SRF subject to WID

Example of Waste Derived Fuels users / outlets Waste from which Fuel is derived (example) Cement kilns EfW plants Prospective SRF users / Standardisation achieved District heating Wood residue (untreated) Wood waste containing no or very low levels of HOC or heavy metals (high Standard) Non hazardous waste from Industry or Municipalities (high Standard) Main SRF users WID implemented District heating Cement kilns EfW plants Power plants Steelworks Cement Kilns EfW plants Power plants Steelworks

Technical / economic factors which influence SRF manufacture Local and acceptable waste arising -Commercial & Industrial Waste capable of providing SRF of high quality and calorific value -National level of development in sorting / selective collection Price levels of competing treatment -Landfill gate fees (including landfill tax) -Incineration / co-incineration gate fees (competition or outlets) Strict & consistent quality criteria to meet client needs -Level of pollutants -Physical / chemical properties, granulometry... Long term outlets -EfW plants, cement kilns -Power plants, CHP, steelworks Fossil fuel costs -Heavier taxation?

Conclusion (1) Potential quantity of energy from SRF production and usage is in the same order of magnitude as energy from mass-burn incinerationPotential quantity of energy from SRF production and usage is in the same order of magnitude as energy from mass-burn incineration Pace of development of SRF market will be influenced by standardisation and legislative / regulatory statusPace of development of SRF market will be influenced by standardisation and legislative / regulatory status SRF standardisation process within CEN will take several years to come to fruitionSRF standardisation process within CEN will take several years to come to fruition Product status for SRF seems unlikely in the short runProduct status for SRF seems unlikely in the short run

Conclusion (2) Waste Management Industry has an active role to play in providing its share of the EU energy needs, through complementary treatment options: Waste Management Industry has an active role to play in providing its share of the EU energy needs, through complementary treatment options: EfW contribution to energy security this contribution must be protectedEfW contribution to energy security this contribution must be protected SRF preparation and utilisation downstream outlets will have to be secured for SRF long term developmentSRF preparation and utilisation downstream outlets will have to be secured for SRF long term development