In order to find out where the industry is headed this year, especially in light of current economic circumstances, Waste Management World interviewed nine leaders of high profile companies working in waste today … By Claudine Capel, Editor, Waste Management World e-mail: claudinec@pennwell.com
Malcolm Chilton, Managing Director, Covanta Energy, UK
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Covanta Energy is the world’s largest waste-to-energy provider and owns and operates 38 WTE facilities worldwide. In 2005, I opened Covanta’s UK office with a team of three, since then we have gone on to recruit some of the most experienced and talented individuals the industry has to offer.
What is your view of the waste management market today?
Many people are now seeking alternative technologies for treating municipal waste. The revised EU Waste Incineration Directive (see more on this on page 29) has also paved the way for a new generation of WTE facilities which are cleaner and even more energy efficient.
What is the market like within your sector?
Waste-to-energy is becoming a preferred choice for many UK local authorities as they seek more environmentally friendly alternatives to landfill. We see the UK as an excellent market – the UK still landfills the majority of its waste and it has to move away from that. We think there may be up to 10 million tonnes (11 million tons) of new WTE capacity built in the UK in the next 10 years or so.
How has the waste market been affected by the global financial crisis?
Amidst the gloom of April’s Budget, the waste industry received some positives. Modest measures were announced to help promote the transition to a low-carbon economy as a response to climate change, including a boost to divert waste away from landfill, to reduce methane emissions, and encourage the development of more WTE facilities to contribute to renewable, low-cost energy generation.
How do you see things developing in the future?
Councils will require cost-effective solutions for treating residual waste as they continue to try and meet stringent EU landfill reduction targets, coupled with the growing cost of landfill tax. As a result, they will look towards more sustainable solutions for treating residual waste. I think that councils will look for partnerships with companies that can finance projects.
How has your business been affected by recent waste legislation?
The new changes to the Renewables Obligation Order earlier this year extended eligibility for support to WTE projects with CHP. I hope the new incentive will encourage local authorities to work with us to develop cost-effective waste management solutions that will have substantial sustainable energy benefits.
In what way has your business been affected by environmental issues and the need to work to targets?
Any WTE facility built today has to comply with the European Parliament’s Waste Incineration Directive 2000 which has established strict emission limits and operating standards. Since the introduction of the regulations, WTE facilities now process around 10% of household waste in Europe, a figure that will grow considerably in the coming years. The 1993 EU Landfill Directive also had an impact on WTE, as the framework requires a reduction in the landfill of biodegradable waste to reduce methane emissions; this has led to a wider acceptance of WTE as contributing to the reduction of methane.
What are the most important developments in waste today in your view?
In my view, they are:
- growing awareness by local authorities that time is running out with landfill diversion targets
- that commercial and industrial waste requires more attention from local government
- strategic and sub-regional solutions are becoming recognized as better options to localized solutions
- waste is a fuel in the drive to reduce our carbon footprint and move away from fossil fuels.
Daniel Zeiler, Business Development Manager, Metso Lindemann, DÜsseldorf, Germany
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Metso Recycling is a key equipment supplier for the metal and solid waste recycling industry. We belong to the Finnish Metso group, being part of the newly-formed business segment, Energy and Environmental Technologies, which also incorporates Metso Power and Automation.
We are a global market leader in the metal recycling industry. Lindemann and Texas Shredder are our most important brands.
I look for new business opportunities in order to grow and extend our offerings and services. We clearly have identified growth opportunities in the global recycling business, especially in biomass and solid waste processing.
What is your view of the waste management market today?
The waste management market of today is still a very dynamic marketplace. It is strongly supported by environmental policies and characterized by continuous new technologies and ongoing globalization. This makes it a both challenging and interesting place to work in.
How has the waste market been affected by the global financial crisis?
In the metal recycling market, related industries like automotive, steel mills and scrap recyclers have been hit hard by the recent crisis. This has had an immediate effect on capital equipment expenditures since the end of 2008 and thus impacted our business. Steel mills worldwide have cut production, and demand and prices for scrap have dropped accordingly. This has resulted in reduced operation or even standstill of scrap processing facilities like shears, shredders and balers. For us this has direct influence on the short-term demand for capital equipment and related services. We envisage the market will stabilize now at a lower level. Metal recycling has long been a cyclical business, and this crisis has ended a super cycle which gave everyone record revenues for several years.
How do you see things developing in future in light of this crisis?
We believe that businesses related to metal recycling will stabilize within 2010, start growing towards the end of 2010 and should come back to previous market size in two to three years’ time.
Due to its economic and environmental benefits the electric arc furnace-based melting of scrap will develop further worldwide and drive the scrap business of the future.
What are the most important developments in waste management today?
The most important developments in waste processing technologies have been the implementation of sensor-based sorting systems, enabling automatic and highly efficient sorting of waste. For the future we expect the new developments in pyrolisis and gasification to set new benchmarks.
Which new markets do you see becoming important over the next year?
With regard to capital equipment sales we feel the most important markets for waste-related businesses are in the UK, France and eastern Europe. These countries have to comply with EU Waste Directive targets and thus need to implement the necessary infrastructure.
In addition, the US market will start to materialize based on the extensive governmental funding projects. This will result in booming investments in energy from biomass and waste recycling.
What new innovations and products does your company have coming up in the near future?
We just launched a new series of scrap shears, with high efficiency, in the light and middle class segment of 600-1000 tons cutting force.
We are also working on a new generation of metal shredders and will invest in R&D for advanced metal sorting and shredder fluff processing systems.
The strong collaboration with Metso Power will drive the development of specialized products and systems fuel preparation in the near future. This will put us in the position of a global solution provider for bio-energy.
Helmut Oberguggenberger, MANAGING DIRECTOR, MeWa Recycling Maschinen und Anlagenbau GmbH, Germany
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The MeWa core business is developing and building recycling machines, and engineering turnkey plant solutions. MeWa machinery processes electric and electronic scrap, fridges, tyres, domestic and industrial waste, metal compounds and organic waste for biogas plants. The exports account for approximately 80% of turnover.
What is the market like within the recycling sector?
Progress in the recycling sector is strongly influenced by the business and legislation conditions in the several countries. How is the raw material supply in a region? Will the EU-Directives be put into practice? Are there investment incentives or subsidies? These are the topics which influence its development.
What is your view of waste management in light of the global financial crisis?
As a general principle, the recycling sector is dependent on the commodities market. The price for secondary raw material is related to the price of primary resources. Low market prices for steel or precious metals result in low scrap prices. Therefore, the sector is characterized by a general difficult economic climate. Medium and long-term there is no way around recycling; people produce mountains of waste. What we need is cost-effective technology to handle this waste. As a manufacturer and plant design company, we can see excellent future prospects for the recycling industry.
How do you see your business developing in future?
The countries of eastern Europe are now seeking to catch up with EU standards, and that also applies to the recycling sector. MeWa have reacted to the increase in demand. In future, a new subsidiary will serve the south-eastern Europe region from Györ in Hungary. The English waste management companies reacted before the WEEE Directive entered into force and invested in new plant technology. Now, we expect the same process in realizing the Landfill Directive. In the field of energy supply there is a significant tendency towards renewables. The new technologies like photovoltaic modules have a shelf life. But MeWa has already built three recycling plants for solar panels and there will be more added in future.
Michael Ibarth, Director of Marketing and Corporate Communication AT SENNEBOGEN Maschinenfabrik GmbH, Germany
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We are a family-run enterprise with more than 50 years’ experience in material handling and cranes. Our machines take industrial waste, and sort, pile and load it into separators and shredders.
What is your view of the waste management market today?
We are looking increasingly at international markets as there is significant demand to discuss solutions for waste material handling, especially in countries that did not consider waste management in the past. In the mature western markets we can see quite a consolidation going on between the A and B players.
What is the market like within your sector?
Similar to all sectors, yet waste-to-energy (WTE) seems to have less opportunity to go through the same cyclical phases as recycling. Biowaste has a lot of potential.
How has the waste market been affected by the global financial crisis?
Every market has been affected, especially when dealing with larger investments into machinery and infrastructure. The boom of recent years led to many financed projects that would probably be evaluated differently. Nowadays we are seeing a significant number of projects, but the realization is slower.
What is important in waste management today?
We need to define standards on a global scale. Customized products in individual markets cannot be the long-term solution. Standards will help make products comparable and processes transparent. This will lead to more competition and better products. The best way to treat waste is to avoid waste – probably a provocative statement, but the most effective one.
Joachim Hirtenfellner, Head of Marketing, Komptech GmbH, Austria
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Komptech is a manufacturer of machines and systems for the treatment of solid waste and biomass. We produce shredding, screening, separation and composting technology, and are currently the European market leader in this business.
What is your view of the waste management market today?
The waste management business has become much harder over the last months. The amount of commercial and production waste has decreased, as have prices for secondary materials. The waste management market is facing difficult times in the current economic climate.
How do you see things developing in the future?
It depends on when the crisis ends and the curve goes up once again. We think this year will be very difficult, maybe it will get better by the beginning of next year.
How has your business been affected by recent waste legislation?
The business is always affected by waste legislation. For example, the new Waste Framework Directive and the discussion about a biowaste regulation, is very important for our business. There should be an absolute obligation to treat every waste stream – one should not be allowed to bring any waste to landfill untreated.There should also be an obligation to collect biowaste separately so the product becomes useful and the market for composting can go up.
What are the most important developments in waste management today in your view?
Eastern European and south-east Asian countries will have to increase their efforts in waste management soon, otherwise they will have huge problems. These are the markets we hope to increase our activities in.
Prady Iyyanki, CEO of GE Energy’s Jenbacher gas engine division, Austria
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GE’s Jenbacher gas engine division is one of the world’s leading manufacturers of gas-fuelled reciprocating engines, packaged generator sets and cogeneration units for power generation. It is one of the only companies in the world focusing exclusively on gas engine technology. Engines run on either natural gas or a variety of other gases (e.g., biogas, landfill gas, coal mine gas, sewage gas, combustible industrial waste gases). A broad range of commercial, industrial and municipal customers use Jenbacher products for on-site generation of power, heat and cooling.
What is your view of the waste management market today?
It is undergoing a transformation. The root of this transformation is a grass root movement within the customer base. People being ‘green’ has reduced the amount of waste reaching landfills in America.
In the short term, this change in behaviour does not have a dramatic impact on our business, but in the longer term, the separation and diversion of organics in the waste stream will impact the production of landfill gas. On the one hand, the amount of available landfill gas will decrease and at the same time the amount of problematic siloxanes in MSW will gain importance; but on the other hand, gas pre-treatment technologies will further improve and so will the economics of landfill gas to energy (LFGTE) projects in general. In addition, we see the emergence of new technologies like waste gasification and microbe bio-digestion paving the way.
What is the market like within your sector?
The changes in the energy market are currently going in a green direction – energy efficiency, decentralized power generation, renewable energy solutions and avoidance of CO2 emissions. Our products for biogas, landfill gas, associated petroleum gas (flaregas) and coal mine gas, as well as our high-efficient cogeneration products for any type of gas, fit perfectly into these schemes.
LFGTE with gas engines is a mature technology with several renowned project developers and other players established. We are looking forward to managing the challenges and expect a sustainable or even growing business, despite the current economic situation. This applies to the US, and especially new growth regions such as Latin America, south-east Asia and others.
How do you see things developing in the future?
We see a decrease in waste volumes as less waste is produced by consumers and as more effective recycling practices are implemented. We expect that the current economic challenges will strengthen our awareness of environmental issues and further encourage renewable and sustainable energy projects, for which LFGTE can really serve as a model. We trust that the US stimulus bill will set a milestone of political regulatory framework in this regard.
How has your business been affected by recent waste legislation?
From a power generation perspective, emission regulations are aggressive and may curb the growth of many WTE projects. The overall environmental performance of a LFGTE project is doubtless a very positive one, since the greenhouse gas mitigation and fossil fuel substitution compensates the minor emissions of gas engines by far.
Jörg Unger, President of BOMAG, Germany
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BOMAG has been a specialist in compaction for more than 50 years. For 30 years the company has designed and produced refuse compactors especially for the rough operation expected on landfill sites. The company is the market leader in Europe and the first or second largest player in the world.
What is your view of the waste market today?
The market of waste management is a very complex one, as it includes different methods such as recycling, landfill, biological treatment or incineration. We are dealing with questions for the future such as waste-to-energy treatment, climate protection and how to cope with the increase in waste generation from year to year. But problems differ from country to country.
What is the market like within your sector?
BOMAG’s market is landfill. While there is important work going on to reduce waste, recycle or find new methods of disposal, landfill is still one of the most important disposal methods today. It is a stable market, with growing potential in eastern Europe – where we see a complete reorganization of waste handling and new rules for landfills. Potential is also growing in new markets in Africa, Asia or South America – markets that are just starting with controlled waste handling.
How do you see things developing in future?
The financing of machines at the moment is a big issue which might also affect the waste compaction sector. But modern landfills are very cost effective, so there will be a future need for modern compactors. Customer demands may change, but with the permanent engineering and improving of our product range, we will be well prepared. On the other side, the offer of financing possibilities and service contracts will get more and more important.
How has your business been affected by recent waste legislation?
Based on recycling and waste incineration and the reduction of waste volumes (especially in western and central Europe), many landfills have closed. But dealing with waste compaction, the overall aim remains to improve the quality and safety on old refuse sites and opening up of modern safe landfills. The market is still there.
In what way has your business been affected by environmental issues and the need to work to targets?
As a manufacturer, the new exhaust emission regulation is very important for us and it determines a large part of our engineering tasks. But we are well prepared to meet these regulations in time. The reduction of CO2, meaning the reduction of fuel consumption, is a top priority now and in the future.
What are the most important developments in waste today in your view?
In the field of landfill it is the spread of information worldwide, especially in developing countries, on how to operate sanitary landfill sites in such a way that danger to residents and the environment is almost eliminated. For manufacturing refuse compactors, it is the increase in efficiency.
Richard Bliss, Regional Industry ManageR for europe, africa and middle east, Caterpillar, switzerland
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As the Regional Industry Manager for both waste and industrial sales in Europe, Africa and the Middle East, I am primarily responsible for optimizing machine, parts and service sales to these segments. It’s my responsibility to ensure that we identify and pursue business opportunities by providing a clear growth strategy that combines local opportunities with enterprise competencies and alignment.
What is your view of the waste management market today?
The waste industry is an extremely dynamic industry, which continues to rapidly evolve based on environmental, legal (legislation) and economic factors. The private sector has seen significant consolidation, while a significant portion of the opportunity remains with governmental (public) opportunities. This, coupled with very different levels of development, translates into a very diverse and continually challenging environment. In western Europe more waste is diverted from landfills through recycling, but we still have a number of areas in developing markets that are striving to move forward from dumping to sustainable landfill management.
Everything known to man eventually becomes waste, and our equipment is designed to handle it, process it, and leave a clean, well-engineered, environmentally benign footprint. We remain committed to designing durable products that are custom designed and manufactured for the environment they work in, coupled with a whole variety of waste specific customer solutions.
How has the waste market been affected by the global financial crisis?
The solid waste industry had a certain reputation of being ‘recession proof’ – based on the assumption that there are only three (not two) certainties in life: death, taxes and waste generation. Humans create waste in bad times as well as good. What we’ve recently found out, however, is that the waste industry is not entirely bullet-proof when it comes to recessionary pressures, but is nevertheless extremely resilient.
The current downturn is a more serious concern in developing or emerging markets where many countries have had to delay both their efforts and investments, but both legislation and public opinion will eventually force progress. This said, some emerging markets have deemed waste management practices so important in their general environmental improvement initiatives that they continue to invest in modern equipment as basic infrastructure development.
How do you see things developing in future in light of this crisis?
The waste market will likely see a far quicker recovery than many of the other markets, due to the fact that legislation and environmental concerns continue to force increased recycling. Waste companies may choose to delay the purchase of new equipment, but the ever-increasing volume, and population, should translate into a relatively short turnaround and a continued bright future for this dynamic industry.
How has your business been affected by recent waste legislation?
Being a global competitor, and having a full range of dedicated waste products, has allowed us to adapt to both changing legislation and subsequent market needs. We have continued to invest in this industry and our products and services. As EU drives have increased recycling, composting and renewable energy, we will continue to experience a shift in product mix away from dozers and landfill compactors towards smaller and compact loaders for processing and recycling.
In what way has your business been affected by environmental issues and the need to work to targets?
Caterpillar is fully committed to sustainable development and has subsequently articulated our goals in our Vision 2020. I am pleased to say that we are well on the way to reaching our targets:
- 25% reduction in greenhouse gases from our existing facilities
- 25% increase in energy efficiency
- using alternative and renewable sources for 20% of energy needs
- eliminating waste by reducing waste generation and recycling
- reduction of workplace industries
- reduction of customer greenhouse gas emissions by 20%
- increase customer energy and material efficiency by 20%
- providing leadership in the safety of people in, on and around our products.
What are the most important developments in waste management today in your view?
The old perception of a dirty, environmentally unfriendly industry has rapidly developed into a technologically advanced industry that is leading the way in environmental management and sustainable development. Is this the case in every country? No, absolutely not, but the arena is rapidly changing as both public and political opinions continue to drive changes in behaviour and legislation. The industry will continue to challenge manufacturers with ever increasing demands and it will be up to companies to ensure that we continue our R&D investments to meet these challenges. It’s about providing the best total solution for our customers’ needs.
Mark A. Weidman, President of Wheelabrator, USA
What is your view of the WTE market today?
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Today we find more and more cities, counties and regional authorities looking to solve their local solid waste management challenges by employing an integrated solution, endorsed by the US Environmental Protection Agency (EPA), that includes waste source reduction, reuse, recycling, composting, WTE and modern landfilling. Stable pricing plans for waste disposal and energy prices, the ability to produce clean renewable electricity to sell into the public grid, and energy independence from fossil fuels, are major considerations communities are taking into account.
For an industry with a widely proven operating history, these conditions have steadily fuelled resurgence in this technology, with its benefits and its applications.
How has the waste-to-energy market been affected by the global financial crisis?
Despite the global financial crisis, dozens of projects are under consideration. Financing is available for new projects in the domestic and international markets. The technology is proven and the contracts provide long-term predictable revenue streams via guaranteed waste supply and power purchase agreements.
How do you see things developing in future?
WTE technology is one of the top ten emerging large-scale clean energy sectors, and will play a major role in the future of energy efficiency. We are confident renewable energy technologies will continue to be cost-competitive with fossil fuels over the long-term and will become a major player in the new ‘low-carbon economy.’
How has your business been affected by recent waste legislation?
An important legislative trend has been the inclusion of WTE in Renewable Portfolio Standards (RPS) in the US. These standards require electric utility companies to purchase a certain percentage of their energy from renewable energy generators, such as WTE plants. Currently, 24 states recognize WTE as a renewable energy, allowing utilities to include the technology in their energy mix. While there is no federal RPS, federal agencies are also required to obtain a portion of their energy needs from renewable energy sources under existing regulations.
In what way has your business been affected by environmental issues and the need to work to targets?
Several EPA-sponsored life-cycle analyses have found that WTE reduces greenhouse gas emissions into the atmosphere. Using the EPA decision support tool, one study determined that about 270,000 tons of carbon dioxide equivalent emissions are avoided annually because of one plant’s operations.
On a national average basis, nearly one tonne of carbon dioxide equivalents are avoided for every tonne of waste converted into electricity by a WTE plant. So, WTE plants are tremendously valuable contributors in the fight to lower greenhouse gas emissions.
The contribution of WTE toward reducing greenhouse gas has been embraced by the US Mayors Climate Protection Agreement. The Agreement supports a 7% reduction in greenhouse gases from 1990 levels by 2012, and recognizes WTE technology as a means to achieve that goal.
What are the most important developments in waste-to-energy today in your view?
Last year’s skyrocketing fuel and energy prices have been drivers for change. The rising price of diesel fuel increasing the cost of long-hauling waste to distant locations, and our need to reduce our dependence on fossil fuels, plus a more refined public policy on solid waste, have all led to resurgence in WTE.
In Europe, growth of the industry is being driven by the regulatory framework. Add to this Congress’ desire to encourage development of new renewable energy sources by providing Production Tax Credits for renewable energy generators, and it’s no wonder we’re seeing a new interest in a proven technology.
All of these factors are encouraging governments to take the lead in issuing requests for proposals for new ‘proven technology’ plants.
Which new markets do you see becoming important over the next year?
The North American market is quite strong, with a number of new projects in development and on the horizon. We are also pursuing growth in the UK and Europe, and considering entering China. Europe and China represent the largest growth potential.
