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_ 05.March. 2014 
PAGE 08 
BRING BACK 
BOTTLE 
DEPOSITS 
PAGE 10 
AIMING 
AT ZERO 
WASTE 
PAGE 07 
ENERGY 
FROM 
WASTE 
MANAGING WASTE
MANAGING WASTE 
WASTE IS NO LONGER 
JUST A RUBBISH INDUSTRY 
Recycling waste into valuable raw material is transforming 
the industry’s outlook, as Mike Scott reports 
OVERVIEW 
ȖȖThe waste management business 
has always been an essential but 
unglamorous part of the economy, 
largely out of sight and out of mind 
unless something goes wrong. 
But there has been a quiet revolu-tion 
going on in the last few years 
that has led to a change of outlook 
and a new approach. 
Companies in the wider economy 
have to cope with concerns about 
the increasing scarcity and cost 
of raw materials. There is tighter 
regulation on waste disposal, with 
the landfill tax and a range of Euro-pean 
directives that demand prod-ucts, 
such as cars and consumer 
electronics equipment, are fully 
recyclable once they reach the end 
of their useful life. 
There is also a growing concern 
about the amount of waste that 
companies – and society at large – 
are producing. 
Every year, “well over one billion 
tonnes of waste is generated along 
food and agribusiness supply chains 
around the world, and almost 2,000 
cubic kilometres of water, or more 
than 500 million Olympic-size 
swimming pools, are required to 
produce this wasted food”, accord-ing 
to a report by Rabobank Food & 
Agribusiness Research. 
This combination of pressures 
is making companies look more 
closely at the waste they pro-duce. 
“We have to treat waste as 
the raw material for tomorrow’s 
products,” says Alan Knight, sus-tainability 
director at Business in 
the Community. 
And the waste industry is having 
to change as a result. 
Waste is one of the economy’s 
“golden sectors”, says Steve Lee, 
chief executive of the Chartered 
Institute of Waste Management, 
because it is one of the industries, 
like water and energy, which ties 
all the other parts of the econ-omy 
together. 
“This is the most exciting and 
forward-looking time I have ever 
seen in the industry,” Mr Lee adds. 
“The industry is moving away from 
the role of being a coping indus-try, 
where our job was to receive 
whatever society threw at us and 
make it go away. Now the industry 
is about resource management 
imperatives. We can’t lose sight 
of the fact that we still keep the 
streets clean, but we are using 
more of the waste in a productive 
way than ever before.” 
Materials, such as rare minerals, 
which are used in products rang-ing 
from consumer electronics to 
wind turbines, are expensive, says 
Nicola Jenkins, associate director 
at the consultancy Anthesis. “If 
you can bring them back into the 
system, you are cutting the cost of 
your raw materials,” she says. 
As a result, the waste sector’s 
customers – and competitors – are 
changing. “Manufacturers who 
need resources might want to get 
into this space; mining companies 
might want to do the same, espe-cially 
when you think that there 
is more gold in a New York landfill 
site than in a typical gold mine,” 
says Dr Knight. 
“Waste management companies 
can have a very strong role in this 
new resource-conscious econ-omy,” 
says Dr Forbes McDougall, 
corporate solid waste leader, global 
product stewardship, at Procter & 
Gamble. “But if they do not find 
solutions for our waste streams 
and we do, we will just take it away 
from them. 
“They have to become materials 
management or resource manage-ment 
companies because, if they 
don’t, they will lose their competi-tive 
advantage. If they come to us 
and say they can turn our waste 
costs into recycling revenue, we’re 
going to listen to them.” 
This is what the industry is doing. 
“We can see that landfill is coming 
to an end. It never used to matter 
what came into our facilities. It was 
all just waste,” says Richard Kirk-man, 
technology director at Veo-lia. 
“We’re now focused on what 
materials we can recover. We have 
had to put in place a huge change 
management process. We have had 
to up-skill our staff. We didn’t have 
the mentality of manufacturers 
and that has had to change.” 
This shift in mentality has been 
helped by changes in design that 
mean many products and packag-ing 
are easier than ever before to 
dismantle in order to recover mate-rials, 
while advances in technology 
have made it possible to separate 
and recycle more difficult products, 
such as Tetra Pak drinks cartons. 
Rather than just being the recipi-ent 
of other sectors’ waste, the 
industry is now starting to engage 
all the way up the value chain to 
engineer hard-to-dispose materi-als 
out of the system. 
However, many industry figures 
say the policy environment in the 
UK is uneven. “Scotland, Wales 
and increasingly Northern Ireland 
are more forward-looking, and see 
this as important not just from an 
environmental point of view, but 
an economic and social point of 
view as well,” says Mr Lee. “The 
coalition does not see it that way. 
The English approach is based 
more on compliance because the 
government doesn’t want any bur-dens 
on the public purse. I think 
they are missing a trick. 
“This industry is part of the green 
growth opportunity for jobs, skills 
and resource security.” 
Nonetheless, he adds: “It was 
not so professionally satisfying to 
be the industry that coped with 
what people threw at us. It’s much 
more fulfilling to be the industry 
that helps to manage resources 
more efficiently.” 
There is more gold in 
a New York landfill site 
than in a typical gold mine 
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PUBLISHING MANAGER 
David Kells 
MANAGING EDITOR 
Peter Archer 
COMMISSIONING EDITOR 
Mike Scott 
PRODUCTION MANAGER 
Natalia Rosek 
CONTRIBUTORS 
FELICIA JACKSON 
Editor at large of Cleantech magazine and author 
of Conquering Carbon, she specialises in issues 
concerning the transition to a low-carbon economy. 
JIM McCLELLAND 
Sustainable futurist, speaker, writer and social-media 
commentator, his specialisms include built 
environment, corporate social responsibility and 
ecosystem services. 
SARAH MURRAY 
Specialist writer on environmental sustainability and 
corporate responsibility, she is a regular contributor 
to the Financial Times and other leading titles. 
TIM PROBERT 
Freelance energy journalist, he was formerly deputy 
editor of Power Engineering International and an editor 
of commodity reports. 
MIKE SCOTT 
Freelance journalist, specialising in environment and 
business, he writes regularly for the Financial Times, 
Bloomberg New Energy Finance and 2degrees Network. 
Although this publication is funded through advertising and 
sponsorship, all editorial is without bias and sponsored features are 
clearly labelled. For an upcoming schedule, partnership inquiries or 
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be reproduced without the prior consent of the Publisher. 
© Raconteur Media 
Share and discuss online at raconteur.net 
DESIGN, ILLUSTRATION, INFOGRAPHICS 
The Surgery 
Colourful waste 
doors brighten 
up a building site 
in South Korea’s 
capital Seoul
MANAGING WASTE MANAGING WASTE 
WHAT GOES AROUND 
COMES AROUND… TOP TECHNOLOGIES 
Taking a circular, rather than linear, approach to production 
and designing products with recycling in mind saves money 
– and the Earth, writes Sarah Murray 
CIRCULAR ECONOMY 
ȖȖBy allowing its customers to 
upgrade early, Vodafone is satisfy-ing 
demand among mobile phone 
consumers for the very latest 
devices. Looked at another way, 
however, the company is now leas-ing 
rather than selling handsets, 
giving it a means of retrieving and 
recycling equipment. 
As the rising cost of materials, as 
well as legislation such as Europe’s 
Waste Electrical and Electronic 
Equipment (WEEE) directive, 
increase the pressure to return 
materials to the industrial sup-ply 
chain, the idea of a circular 
economy is gaining momentum. 
But some argue that, if the con-cept 
is to take hold on a massive 
scale, radical shifts in mindset will 
be needed and companies must 
learn to work more closely with 
each other. 
Bottle 
deposits 
Page 08 
Certain models provide easy 
wins for companies and consum-ers. 
For Vodafone customers on a 
24-month plan, the new Red Hot 
programme gives them access to 
the latest devices by allowing them 
to upgrade 12 months early. 
At the other end of the chain, 
companies adopting this type of 
model – another is O2 Lease, a 
smartphone leasing service – can 
sell their phones into secondary 
markets or to recycling companies 
that extract the valuable materials 
from them for reuse. 
What is interesting about such 
business models, however, is that 
companies are not necessarily 
promoting the idea of green or 
sustainable products. Rather, the 
appeal for mobile phone consum-ers 
lies in the ability to get hold 
of the latest model as soon as it 
comes out. 
“They don’t tell you you’re leasing 
it; they tell you you’ll get access to 
the best performance and because 
of the business model, they can 
MAKING A MARK 
Felicia Jackson examines new technologies 
in the waste sector and assesses their impact 
INNOVATION 
Often opportunities are missed because 
companies are unaware that other 
businesses could find uses for their waste 
give you a better deal,” says Jamie 
Butterworth, chief executive of 
the Ellen MacArthur Foundation, 
which is working with companies 
such as Cisco, Philips, Renault and 
Kingfisher to accelerate the transi-tion 
to the circular economy. 
Of course, in some ways the idea 
of the circular economy is nothing 
new. The cradle-to-cradle phi-losophy 
of production and manu-facturing 
pioneered by William 
McDonough and his consultancy, 
MBDC, has been around for more 
than a decade. 
The idea of taking a circular, 
rather than a linear, approach 
to industrial production, also 
referred to as closed loop manu-facturing, 
has long been embraced 
by companies such as Desso and 
Interface. Both flooring companies 
have developed innovative recy-cling 
technologies. 
For Umicore, the Belgium-based 
materials technology group, the 
shift to the re-use model started 
in the 1990s, when the company 
transformed its business by exiting 
its traditional mining operations to 
become a specialty metals refining, 
recycling and recovery business. 
Developing advanced recycling 
technologies was part of this. “And 
metals can be recycled infinitely 
without losing any of their physi-cal 
chemical properties,” explains 
Marc Grynberg, the company’s 
chief executive. 
Umicore can retrieve precious 
metals from everything from min-ing 
and industrial waste to the 
circuit boards from old computers 
and mobile phones. 
Its transformation was prompted 
by the need to address the negative 
environmental impact associated 
with mining and smelting. “We 
started with a problem to fix,” says 
Mr Grynberg. “But as we moved in 
this direction, we found there were 
opportunities that others could 
not seize.” 
Often these opportunities are 
missed because companies are 
unaware that other businesses 
could find uses for their waste. 
It was for this reason that Peter 
Laybourn founded International 
Synergies. Its National Industrial 
Symbiosis Programme (NISP) 
uses resource matching work-shops 
and other means of sharing 
knowledge to help companies 
explore whether their energy and 
by-products can be turned into 
valuable resources that can be 
sold to other companies. 
In the UK, for example, NISP 
helped Denso Manufacturing, 
which makes air conditioning 
units, engine cooling systems and 
automotive components, find 
a way to remove the moisture 
from the filter cake produced in 
its effluent treatment plants so 
that it could be used by other-companies. 
When crushed, the cake 
becomes an active agent in the 
absorption of oil and solvent. 
This agent can then become a 
fuel source and the residual ash 
can be used to improve the qual-ity 
of soil. Meanwhile, Denso is 
saving £30,000 a year. 
Intermediaries such as NISP 
play a critical part in the circular 
economy, argues Mr Laybourn, 
by filling information gaps and 
acting as a matchmaker for com-panies. 
“The key success factors 
are bringing people from different 
sectors together face-to-face and 
having good, clean, accurate data,” 
he says. 
Mr Grynberg believes companies 
must start thinking about resource 
management in a different way. 
“You need to move from seeing 
sustainability as a set of additional 
constraints, like having to reduce 
your CO2 footprint or water use, to 
detecting new opportunities if you 
work differently,” he says. 
As raw materials continue to rise 
in price, these opportunities look 
increasingly compelling. “What 
we’ve seen in the past ten years is 
a significant increase in the price 
of energy, metals, and agricultural 
and non-agricultural commodi-ties,” 
says Mr Butterworth of the 
Ellen MacArthur Foundation. 
“And that’s really beginning to 
drive some action.” 
This is why the foundation has 
done research to quantify the 
financial benefits of the approach. 
It reckons that, if companies 
work together to build circular 
supply chains which dramatically 
increase recycling and re-use rates, 
$1 trillion a year could be added 
to the global economy by 2025. 
“Putting a figure on the size of the 
prize gains a lot of interest,” says 
Mr Butterworth. 
PLASMA ARC 
ȖȖOne of the most exciting innovations in waste to energy, this 
involves a plasma arc which ionises waste to create syngas and 
slag. Air Products is constructing a plant on Teesside using 
Altern NRG technology; while in Canada, Plasco is operating 
a full-scale 50,000-tonne plant transforming municipal waste 
into syngas. 
The challenge with plasma arc is high parasitic loads, making 
it an expensive approach to waste management. 
However, at Stopford Projects Dr Ben Herbert says the group 
is working on a small plasma demonstration plant with a major 
utility and power generator. The new plant is using a new pro-cess 
utilising microwave to generate heat, creating a far lower 
parasitic load, with lower operating and capital expenditure. 
SEWAGE MINING 
Sewage waste is a rich source of energy and materials, especially 
high in fats. When not properly managed it can mean clogged 
sewers – remember the infamous London fatberg – and high-cost 
cleaning. Removing this waste to generate new products 
could prove the future of waste management. 
Ostara has developed a process that takes 80 to 90 per cent 
of phosphorus and nitrogen out of waste water, removing con-taminants 
and developing a secondary product – an effective 
non-water soluble fertiliser. The company is already operating 
a plant for Thames Water, as well as five in the United States and 
one in Canada. 
Isreael’s Applied CleanTech has developed a sewage mining 
system, which picks out and recycles useful fibres from raw 
urban and industrial waste water, increasing the efficiency of 
treatment plants and reducing the amount of unwanted sludge 
and the cost of waste water treatment by 20 to 30 per cent. 
BIOPLASTICS 
The development of bioplastics and other plant-based materials 
could have a dramatic impact on industrial reliance on petro-chemicals, 
being not just biodegradable but compostable. It 
could also address waste by-products in the supply chain. 
Biome Bioplastics, for example, develops its products and 
materials from potato starch, a by-product of the wallpaper 
paste industry. According to director Paul Mines, the company 
has already developed a plant-based material for biodegrad-able 
coffee pods, offering one of the first sustainable packaging 
alternatives in the single-serve market. 
“We’ve had traction in high-value, relatively niche sectors, like 
coffee pods, disposable razors, even tree protectors for horticul-ture,” 
he says. 
While the cost of bioplastics is currently two to three times 
that of oil-derived plastics, Mr Mines expects to see rapid devel-opments 
in industrial biotechnology. He says: “I can see a path 
where we can make cheaper bioplastics, probably within three 
to four years.” 
In conclusion, Allan Barton, Arup’s director and global 
leader, resources and waste management, advises: “There 
are two basic approaches to take. If the waste is organic, then 
cycle as nature intended by burning or composting. If it’s 
inorganic, then cycle it around and around the supply chain. 
We need to look at the waste stream as a source of materials 
to refine, just as petrochemical companies refine oil." 
$1trn 
A YEAR COULD BE 
ADDED TO A CIRCULAR 
GLOBAL ECONOMY 
BY 2025 
100,000 
NEW JOBS COULD BE 
CREATED FOR THE 
NEXT FIVE YEARS 
Source: Ellen MacArthur 
Foundation 
42m 
tonnes 
OF CO2 EMISSIONS 
CUT BY UK COMPANIES 
WORKING WITH NISP 
48m 
tonnes 
OF WASTE REDIRECTED 
FROM UK LANDFILL 
Source: NISP 
0044 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 0055
says Mr Aitchison. To this end, the 
role of the Green Investment Bank 
(GIB) as a cornerstone investor is 
increasingly important, particu-larly 
Foresight Group recently forged 
a consortium with the GIB to 
construct a £47.8-million 10.3MW 
recovered wood gasification pro-ject 
in Birmingham. The GIB 
also invested £20 million in a 
49MW waste-to-energy plant on 
Teesside in a consortium of SITA 
UK, Sembcorp Utilities UK and 
Japan’s Itochu. 
Mr Aitchison sees AD as a signifi-cant 
area for growth. This uses nat-ural 
bacteria, which breaks down 
waste to produce biogas for power 
and heat generation, and slurry 
which can be used for fertiliser. 
AD accounts for more than 
500GWh a year of electricity gen-eration 
from 122MW of installed 
capacity, a tenfold increase in 
only five years. There are two 
main segments of AD – source-generated 
food waste (SSFW) and 
on-farm AD. SSFW units tend to 
be the larger of the two, typically 
1 to 1.5MW with approximately 
30,000 tonnes a year capacity. 
On-farm AD typically comprises 
sub-500kW units. 
The planning process for AD is 
considerably less controversial 
than larger waste management 
incinerators because they are 
smaller, less intrusive facilities and 
are usually designed to manage 
locally sourced waste. Mr Aitch-ison 
has an eye on a possible move 
to ban food to landfill, as proposed 
by the Labour Party should they 
be successful at the 2015 general 
election, as giving a big boost to the 
AD sector. 
Figures from the Waste & 
Resources Action Programme 
estimate 7.3 million tonnes of 
food waste is produced by UK 
households each year. “There is a 
progression to incentivising this,” 
says Mr Aitchison. “A landfill ban 
on food waste, which some peo-ple 
have said would be difficult 
to police, would undoubtedly be 
a benefit.” 
There are some caveats. The UK 
as a whole is poor at collecting 
waste material, with more than 
100 different ways used to collect 
waste, be it bag, box or bin. Indeed, 
most local authorities do not col-lect 
food waste separately. 
Furthermore, the Department 
of Energy & Climate Change 
(DECC) last month confirmed 
feed-in tariffs for AD would be 
cut by 20 per cent, which the 
Renewable Energy Association 
fears will make some sub-500kW 
projects uneconomic. 
If the Labour Party gets in in 
2015 and keeps its pledge to ban 
food waste from landfill, however, 
AD is likely to be back in vogue. 
07 
MANAGING WASTE 
ENERGY FROM WASTE IS 
GENERATING INTEREST 
Harnessing energy from waste enables companies to 
cut costs as well as carbon emissions, but there is potential 
for greater progress, as Tim Probert discovers 
ENERGY 
ȖȖEvery year the average per-son 
in the UK generates 500kg of 
waste. Of this, half usually ends up 
in landfill. Driven by the EU direc-tives 
on waste, for which the UK 
must reduce landfilling to 35 per 
cent of biodegradable municipal 
waste on 1995 levels by 2020, Brit-ain 
is making strides to turn waste 
into energy and wealth. 
Energy from waste (EfW) is not 
particularly new. Landfill gas has 
been used for decades and gener-ates 
more than 5,000GWh a year 
of electricity from over 1GW of 
installed capacity. 
Similarly, the large, typically 
250,000 tonnes a year waste-to-energy 
plants burning unsorted, 
municipal solid waste (MSW), 
popularly known as incinerators, 
generate around 2,300GWh a year 
from approximately 600MW of 
installed capacity. 
The landfill tax introduced in 
1996, which saw councils charge 
a tax of £8 a tonne of material 
disposed in landfill, is perhaps 
the single most effective piece of 
legislation to incentivise efficient 
waste management practice. It 
has transformed the perception of 
waste to that of being a resource. A 
landfill tax escalator has seen the 
level steadily rise to £80 a tonne, 
with Chancellor George Osborne 
putting a floor under this figure 
until 2020. 
Moreover, almost all EfW pro-jects 
are eligible for three main 
revenue streams. These are the 
gate fee paid for processing waste 
instead of paying the landfill tax; 
the sale of the produced electricity; 
and one of two incentive regimes – 
renewable obligation certificates 
and feed-in tariffs. 
Although so far not widely 
deployed, the Renewable Heat 
Incentive offers an additional 
inducement primarily for CHP 
(combined heat and power) anaer-obic 
digestion (AD) plants. Non- 
CHP incinerators do not qualify 
for support. 
Local opposition to thermal 
treatment technologies or incin-erators 
can be fierce. Concerns 
are often raised about the health 
implications and the wider envi-ronmental 
impacts of burning 
waste. However, government and 
the industry argue the evidence 
shows the thermal treatment 
of waste is safe, while plants 
using cleaner technologies, such 
as advanced gasification and 
pyrolysis systems, which create 
synthetic gas and reduce air pol-lution, 
are increasingly common. 
But there are fears market 
saturation has created overcapac-ity 
and undersupply of energy 
feedstock, with some councils 
locked into punitive contracts 
to provide waste to incinerators 
instead of recycling. Indeed, fears 
about potential white elephants 
have forced the Department 
for Environment, Food & Rural 
Affairs to withdraw hundreds of 
millions in funding to build new 
incinerators. 
According to Nigel Aitchison, 
partner and co-head of environ-mental 
at investment management 
firm Foresight Group, talk about 
overcapacity is misplaced. He says: 
“When people talk about over-capacity 
they tend to talk about 
municipal waste, not the full waste 
market including commercial and 
industrial (C&I) waste produced 
by manufacturers, industry, hotels, 
restaurants and so on. In dry recy-clables, 
there may be overcapacity 
and a number of facilities have 
closed, but there haven't been any 
closures of EfW plants.” 
The trouble is nobody is quite 
sure how much waste there is 
available or will be in future. It is 
widely accepted that the waste 
datasets are not fit for purpose. 
Waste management consultancy 
Ricardo-ASA assumes that by 
2020, there will be 53 million 
tonnes of MSW, C&I, and con-struction 
and demolition waste 
in need of treatment at thermal, 
organic and sorting facilities. On 
current capacity projections, how-ever, 
this is 15 million tonnes more 
than both the operational facilities 
and known infrastructure likely to 
be delivered by 2020. 
The absence of reliable waste 
data is a major hindrance to inves-tors; 
this applies to both the quan-tity 
of waste and the detailed infor-mation 
about its composition. The 
lack of sound data using a common 
methodology makes putting a busi-ness 
case together challenging and 
one of the core reasons for limited 
financing for new infrastructure. 
“What we’ve seen is a number of 
EfW projects that haven’t gone for-ward, 
not because they haven’t got 
the land or planning permission, 
but because they didn’t adequately 
structure the project in a way 
which meant it was investable,” 
NATIONAL RECYCLING STUDY 
raconteur.06 raconteur.net twitter: @raconteur net twitter: @raconteur 
for larger EfW projects. 
599mw 
OF UK ENERGY FROM WASTE 
GENERATION CAPACITY 
Source: DECC 
102.7m 
tonnes 
OF UK WASTE REQUIRING 
TREATMENT IN 2013 
Source: Ricardo-ASA 
7.3m 
tonnes 
OF FOOD WASTE 
PRODUCED BY UK 
HOUSEHOLDS EACH YEAR 
Source: Waste & Resources 
Action Programme 
The landfill tax has transformed 
the perception of waste to that 
of being a resource 
Share and discuss online at raconteur.net 
An energy 
from waste 
incinerator 
on Teesside 
Achieving a circular economy 
is the responsibility of us all 
As one of the UK’s leading recycling and resource management companies, 
SITA UK has a large role to play in the UK’s journey towards a “circular 
economy”, where all discarded resources are collected, processed and 
returned back to the manufacturing process, so that the cycle can start again 
are always working to find new ways 
to make use of materials that would 
otherwise be landfilled and to improve 
the proportion of collected materials 
that can be recycled. For example, 
SITA UK is currently commission-ing 
the UK’s first end-of-life plastics 
facility, which converts plastics that 
cannot be recycled, such as micro-wave 
meal film lids, into diesel fuel. 
“But improving recycling rates and 
diverting as much material from land-fill 
as possible requires the buy-in of 
everyone involved in the lifecycle of 
a product, from designer, through to 
manufacturer, retailer and consumer.” 
Mr Hayward-Higham points out 
that collecting materials, which 
have been discarded, and feeding 
them back into the manufacturing 
cycle is not the fi rst step towards a 
circular economy. 
“Design is one of the major cul-prits 
of waste and we need to think 
about how we can design products 
for their whole lifecycle,” he says. 
“By carefully considering design 
of products and packaging, we can 
minimise the amount of raw materi-als 
that enter the circular economy 
in the fi rst place, ensure they have 
a long lifespan before they are dis-carded 
and, fi nally, ensure they are 
easy to extract resources from to 
return to the manufacturing pro-cess 
at the end of their life. 
“For example, products that are 
designed to be upgraded or reman-ufactured 
would allow for them to 
be returned, renewed, restyled and 
resold as an improved version of the 
original, which is the reason most 
of us ‘upgrade’. This already occurs 
in products, such as photocopiers, 
where the ‘chassis’ might be used 
a number of times, but each time it 
looks new, feels new, has new func-tions 
and still does the job.” 
In fact, Mr Hayward-Higham says 
there are even wider, more funda-mental, 
cultural changes society can 
make as a whole to minimise waste. 
“If you stand back and take a look 
at the reasons why materials have 
been discarded, you begin to think 
about changes we could make to 
the way we live our lives, which 
opens a huge number of opportu-nities,” 
he says. “For example, we 
could move towards a model where 
products are replaced by services, 
known as ‘servitisation’. 
SITA UK, a subsidiary of SUEZ ENVI-RONNEMENT, 
is a recycling and 
resource management company, 
which serves more than 12 mil-lion 
people and handles 8.5 million 
tonnes of domestic, commercial 
and industrial waste each year. The 
company provides services for over 
42,000 public and private-sector 
customers, and operates a network 
of facilities, including recycling, 
composting, biomass production, 
waste collection, energy-from-waste 
plants and landfi ll sites. 
Although it might seem counter-intuitive, 
the ultimate goal of SITA 
UK is to operate in a world with no 
more waste, where best use is made 
of all discarded materials by feed-ing 
them back into the cycle of pro-duction 
and consumption, instead of 
losing them forever to landfi ll. 
SITA UK’s technical development 
director Stuart Hayward-Higham 
explains why this isn’t a case of “tur-keys 
voting for Christmas” and why 
waste management companies only 
play a small, if not important, part in 
achieving a more sustainable model 
of consumption. 
“The word ‘waste’ no longer means 
that something is lost forever, it only 
means that the producer of the waste 
no longer has a need for it. Oth-ers 
may be able to use it, or the raw 
resources, and that’s the job of busi-nesses 
like ours – to find a sustain-able 
use or users for the materials 
others throw away,” he says. 
“Resource management companies 
“For instance, householders buy 
drills to make holes, but they don’t 
necessarily need to buy a drill to 
make a hole; they just need access 
to one, perhaps through a short-term 
rental. This means that the 
drills can be managed through the 
hirer, and their repair and mainte-nance 
can be conducted in an eco-nomical 
way. The result is that they 
are used for longer and not thrown 
away by the householder when a 
part breaks or wears out.” 
For many, the circular econ-omy 
is a slightly abstract con-cept, 
aand it is difficult for organ-isations 
and individuals to know 
what they can do to make a differ-ence. 
Increasingly, SITA UK is help-ing 
customers to make the shift to 
a circular and sustainable model 
by providing practical solutions. 
For more information about SITA UK 
and its services, visit www.sita.co.uk 
Design is one of the major culprits 
of waste and we need to think 
about how we can design products 
for their whole lifecycle 
Stuart Hayward-Higham, technical 
development director, SITA UK, is 
responsible for technical and policy 
innovation, and has worked in the 
recycling and waste industry for 
almost 30 years 
In partnership with SITA UK, 
Keep Britain Tidy has begun a 
national study to fi nd new ways of 
improving recycling rates in Eng-land’s 
major cities. 
Recycling in England is fl at-lining 
and, while some areas of the country 
are reaching recycling rates near-ing 
70 per cent, other areas are only 
achieving 15 to 20 per cent. 
Among those authorities with the 
lowest recycling rates, many have 
densely populated urban areas, 
which pose a signifi cant challenge to 
eˆ ective recycling. 
England is also facing the danger 
that it won’t achieve its EU 2020 
recycling target of 50 per cent. 
However, despite this, the govern-ment 
has withdrawn funding and 
focus from sustainable resource use, 
placing its future in the hands of the 
waste management industry. 
Keep Britain Tidy is looking for 
new and innovative ways to boost 
recycling rates in England’s cities by 
asking members of the public to come 
up with real-world solutions with the 
help of waste industry experts. 
Volunteers from London and Man-chester, 
none of whom have any prior 
knowledge of the waste and recycling 
industry, are working alongside indus-try 
experts to find practical ways to 
encourage people to recycle more. 
The solutions devised by these 
groups will then be tested by a wider 
independent public poll of more than 
1,000 people, and the outcomes of 
both studies will be presented in a 
report and short fi lm in June. 
Keep Britain Tidy’s campaigns 
and communications director Andy 
Walker says: “Tackling waste is 
something in which the public has 
a big role to play, but all too often 
debates about recycling do not 
include ordinary people. 
“These sessions are an opportunity 
for the man, or woman, on the street 
to have their say on an important 
issue that aˆ ects us all.”
MANAGING WASTE MANAGING WASTE 
TIME FOR RETURN 
OF OLD-FASHIONED 
BOTTLE DEPOSITS 
£££ £££ £££ 
DENMARK 
NETHERLANDS 
8 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 09 
9 
One of the most effective means of diverting useful 
resources from waste is the introduction of a bottle 
deposit scheme, writes Felicia Jackson 
BOTTLE DEPOSITS 
ȖȖRecycling glass can save 80 per 
cent of raw materials mined and, 
with recycled aluminium saving 
95 per cent of the energy it takes to 
make new aluminium, the impact 
in terms of energy costs and CO2 
emissions can be considerable. 
Sweden offers a world-leading 
example of how to deal with 
waste from drinks bottles and 
cans. Operated by Returpack, 
a recycling company co-owned 
by the drinks companies and 
brewers in Sweden, the Swed-ish 
deposit return scheme sees a 
small deposit added to the cost 
of drinks which is refunded when 
the container is returned. 
Pelle Hjalmarsson, chief executive 
of Returpack, says a key element of 
the system is that it was introduced 
and managed by the different stake-holders 
working together. “Eve-rybody 
had a very high interest in 
creating a well-functioning deposit 
system,” he says. 
Implementation of the scheme 
has resulted in recycling rates of 
more than 90 per cent of its drinks 
containers. These are then made 
into new containers or, in the case 
of some of the plastic bottles, into 
clothing, bags and other goods. 
There can be difficulties in the 
deployment of such a scheme, 
especially if there is push-back 
from retailers or producers. Clearly 
the ability to make manufacturers, 
fillers, packers and retailers work 
together has a critical role to play. 
In Britain, disagreements among 
the stakeholders about where 
the on-cost of recovery should be 
placed resulted in a compromise in 
UK packaging legislation. 
The legislation sets percentage 
targets for the recovery of card-board, 
glass, plastic and aluminium, 
and companies within the supply 
chain need to report a number of 
certificates or producer responsi-bility 
notes (PRNs) to regulators 
representing each year’s targets. 
This shares the responsibility 
for recycling throughout the sup-ply 
chain, rather than encouraging 
co-operation, while at the end 
of the chain waste management 
companies had no specific obli-gation 
for recycling. Effectively 
it created a market for PRNs 
which, combined with rising 
landfill tax, meant a greater push 
towards recycling, but not a holis-tic 
approach to reclamation. 
There are three elements to the 
value of a bottle deposit scheme: 
the value of the materials retrieved 
themselves; fees to industry; and 
the value of unredeemed deposits. 
Allan Barton, Arup’s director and 
global leader, resources and waste 
management, says: “The beauty of 
reward schemes is that some people 
will act, some people won’t and that 
fraction will fund the programme.” 
Mr Hjalmarsson admits that one 
of the biggest challenges can be 
consumer behaviour, especially 
outside the home. But, he says 
of the Swedes: “It’s in our blood 
to make deposits.” In the UK, as 
Will Griffiths of the Carbon Trust 
points out: “The challenge is con-sumer 
engagement and incentivis-ing 
them sufficiently.” 
In Europe alone, more than 
100 million people live in coun- 
Litter rates would fall, our 
streets would be cleaner 
and recycling would 
increase dramatically 
tries with bottle deposit schemes, 
including Norway, Denmark, Fin-land 
and Estonia. Rauno Raul, 
chief executive of the Estonian 
Deposit System, says: “The advan-tage 
of a deposit system, compared 
to other alternative or parallel sys-tems, 
is the fact that the monetary 
incentive – the deposit sum – guar-antees 
very high collection rates. 
Deposit systems usually can collect 
from 80 to 96 per cent of input.” 
The impact of such a scheme 
can move far beyond simply man-aging 
part of the waste stream. 
A 2010 report by Eunomia, for 
the Campaign to Protect Rural 
England (CPRE), demonstrated 
that a drink container deposit 
refund scheme (DRS) would 
greatly reduce litter and increase 
recycling rates. Running costs of 
around 0.8p per container would 
be supported by revenue from 
unclaimed deposits. 
Hopes for a UK DRS were hit 
in 2011 when the government’s 
review of waste policy identified 
the high cost of running such a 
scheme as a barrier to success. The 
Industry Council for Research on 
Packaging and the Environment 
argued that encouraging the use of 
existing recycling process through 
kerbside collection would be bet-ter 
value for money. However, this 
ignores the importance of behav-iour 
outside the home. 
Dominic Hogg, director of Euno-mia, 
says: “At the moment, council 
tax payers meet the costs of recy-cling, 
clean-up of litter and land- 
RECYCLING WASTE BOTTLES INTO ASSETS 
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fill, irrespective of their purchases. 
But under a drinks container 
deposit refund scheme, the costs 
of dealing with beverage packag-ing 
would be met by industry and 
by those who forego their right to 
the refund of their deposit. Litter 
rates would fall, our streets would 
be cleaner and recycling would 
increase dramatically.” 
Following the victory of the Scot-tish 
National Party (SNP) north of 
the border in 2013, Zero Waste Scot-land 
ran a pilot scheme, which the 
group is now analysing to see what 
it would take to expand the project. 
Iain Gulland, Zero Waste Scot-land’s 
director, says the SNP 
wanted to increase recycling rates, 
as well as the quality of recyclate, 
and to promote anti-litter cam-paigning. 
The pilot project con-sisted 
of ten sites, eight of which 
were reverse vending and two 
deposit return. He says that, while 
the report on the pilot will not 
be out until later this year, all the 
schemes were used and recycling 
rates increased. 
“Our objective was to look at 
the impacts and at public accept-ance,” 
he says. “While there were 
challenges, the pilot showed that 
rewarding people does work under 
certain circumstances.” 
One of the big unknowns in the 
Eunomia study for CPRE was a 
monetary value for the disamenity 
or adverse impact of litter. A 2013 
Eunomia study for Zero Waste 
Scotland on the indirect costs of 
litter showed that the disamenity 
value is higher than had previously 
been thought and so adds weight to 
the case for deposit systems. 
As part of this work, Eunomia 
explored the links between litter 
and crime, and the effects of litter 
on mental wellbeing. Focusing 
solely on crime, the annual costs 
attributable to litter, for Scotland, 
were identified as being up to 
£22.5 million. For mental health 
and wellbeing, the study estimated 
attributable costs for Scotland to 
be £53 million. 
While the recycling system in the 
UK has worked reasonably well, 
the growing focus on recovering 
resources has meant that materi-als 
recovery is happening at many 
different stages and it can be dif-ficult 
when one particular stream 
is removed. 
Peter Jones, director at Ecolat-eral, 
says: “The system is work-ing, 
but it’s crying out for reform. 
If you’re in the waste industry, 
it’s no longer economic to put 
waste in landfill, so the remain-ing 
options are composting or 
anaerobic digestion, or thermo-chemical 
treatment.” 
Mr Barton, at Arup, adds: “We 
need an integrated waste strategy 
that will work on an international 
scale.” What this means is that 
schemes such as Sweden’s bot-tle 
deposit approach could have 
an impact through reducing one 
waste stream and encouraging 
the exploitation of the remain-ing 
streams with a range of new 
technologies. 
Estonia’s Mr Raul concludes: 
“The initiative has to come from 
the government side. That was the 
case in Estonia when the packag-ing 
and packaging excise law was 
introduced in 2004. It is very 
unlikely that producers or retailers 
would do something really serious 
in terms of recycling on their own. 
The state has to introduce and 
enforce a concrete framework of 
rules to get real results.” 
BEVERAGE DEPOSIT MODEL 
EUROPEAN BOTTLE DEPOSIT SCHEMES 
SOURCE: ZERO WASTE EUROPE 
SOURCE: PETCORE EUROPE SOURCE: PLASTICS RECYCLING EXPO 
SOURCE: RACONTEUR/EUNOMIA 
WHOLESALERS AND 
DISTRIBUTION CENTRES STORE 
POINT OF COLLECTION 
CENTRAL SYSTEM 
(FINANCIAL CONTROL) 
BEVERAGE INDUSTRY 
CONSUMER 
MATERIAL FLOW DEPOSIT PAYMENT FLOW 
GERMANY 
NORWAY 
SWEDEN 
FINLAND 
ESTONIA 
CROATIA 
COUNTRIES/REGIONS WITH AN 
INSTALLED DEPOSIT SYSTEM FOR 
ONE-WAY CONTAINERS 
COUNTRIES/REGIONS THAT ARE IN THE 
PROCESS OF EVALUATING A DEPOSIT 
SYSTEM FOR ONE-WAY CONTAINERS 
PACKAGING INDUSTRY 
Aluminum and plastic are also 
the most energy intensive of 
the three leading container 
types, each accounting for 
It is estimated that every 
UK household uses 
In the decade from 2001 
to 2010, the value of 
wasted beverage container 
materials exceeded 
plastic bottles each year 
$22bn 47% 
of the total energy lost 
when containers are 
landfilled or burnt 
RECYCLERS 
(PROCESSING FACILITY) 
500
MANAGING WASTE MANAGING WASTE 
ZEROING IN ON 
WASTE-FREE LIVING 
With the government under pressure to hit a 70 per cent recycling 
target by 2020, more businesses must embrace the environmental – 
and economic – case for zero waste, writes Mike Scott 
ZERO WASTE 
ȖȖSince the dawn of the Industrial 
Revolution, wherever goods have 
been made, they have been accom-panied 
by the creation of waste. “It 
was just seen as the cost of doing 
business,” says Forbes McDougall, 
corporate solid waste leader in the 
global product stewardship team 
at Procter & Gamble (P&G). 
But today, a growing number of 
companies, including P&G and 
other global giants such as car-maker 
GM, are working to ensure 
that their facilities do not send 
any waste to landfill. 
P&G, which makes everything 
from toothpaste and shampoo to 
nappies and pet food, has already 
made 54 of its 160 sites around 
the world zero waste and plans to 
have completed the process at 70 
plants by the end of the year. 
The rationale is quite simple, Dr 
McDougall explains: “Everything 
you divert from landfill is avoided 
cost.” With landfill tax soon to 
hit £80 a tonne, those costs are 
considerable. P&G believes it has 
saved more than $1 billion over 
the last five years by reducing 
waste. “You have already paid for 
these materials up front. If you 
don’t recycle it, you have to pay 
again to dispose of it,” he adds. 
Businesses are realising that 
“they have to be part of a move 
from a linear economy to a circu-lar 
economy,” says Alan Knight, 
sustainability director at Busi-ness 
in the Community. “There 
is a change in the business model 
from disposing of waste in landfills 
to a focus on resource recovery. 
“Dumping stuff that is worth 
money on a planet that is running 
out of resources does not add up – 
we have to be smarter in the way 
we run society,” Dr Knight adds. 
The move towards zero-waste 
economies has been driven in part 
by tougher regulation, such as 
the landfill tax and EU directives 
requiring the recycling of cars and 
electronic equipment, helped by a 
growing interest in sustainability 
from consumers. Companies 
are also more concerned about 
the increasing scarcity of many 
resources, their cost and the abil-ity 
to secure supplies, which these 
days come from all over the globe, 
in the face of challenges such as 
extreme weather events. 
“Zero waste is about the econ-omy, 
it’s about jobs, it’s about sav-ings 
to industry – it’s not just an 
environmental thing,” says Iain 
Gulland, director of Zero Waste 
Scotland, which is charged with 
making Scotland a zero-waste 
economy by 2025. The move will 
create about 12,000 new green 
jobs in the country, he adds. 
A zero-waste approach can cut 
upstream costs and increase rev-enues 
by locking customers into 
your service, says David Bent, 
head of sustainable business 
at Forum for the Future. “For 
example, leasing out uniforms 
instead of selling them would 
save money for the consumer 
and vast amounts of resources. 
Businesses need to find their 
Dumping stuff that is worth money on a planet that is 
running out of resources does not add up – we have to 
be smarter in the way we run society 
Don’t rubbish the power of waste 
Instead of resorting to landfill, more waste should be 
used to power UK energy plants, says Biffa 
The Climate Change Act 2008 estab-lished 
a target for the UK to reduce 
its carbon emissions by at least 80 
per cent of 1990 levels by 2050 . It’s 
a challenging target and one that 
requires all sectors, including the 
waste industry, to reduce green-house 
gas emissions. 
Reducing methane from landfill 
sites is one of the waste sector’s big-gest 
challenges in that regard. And 
with landfill tax becoming evermore 
expensive – from April it increases 
from £72 to £80 per tonne – the 
industry is seeking different treat-ment 
options. 
One alternative is to use more of this 
active waste – the waste that remains 
after the recycling fraction has been 
taken out – as a feedstock for energy 
plants. Refuse-derived fuel (RDF), as 
it is known, can be used in a variety 
of treatment plants, including energy 
from waste (EFW), mechanical bio-logical 
treatment, anaerobic digestion 
and increasingly gasification, to gen-erate 
electricity and heat. 
England and Wales currently use 
about 5-6m tonnes of waste mate-rials 
for this purpose, but in the UK 
19m tonnes is still landfilled, while 
just 1.5m tonnes (2013) is processed 
into RDF and exported to Europe 
where it is used as fuel in Dutch and 
Scandinavian energy plants. 
So why are England and Wales 
only using a fraction of this valuable 
low-carbon feedstock, and land-filling 
and exporting the rest? The 
problem is one of capacity. Here in 
the UK there are simply not enough 
plants to deal with the amount of 
waste produced. 
The reason for this, according to 
Biffa Waste Services’ chief execu-tive 
Ian Wakelin, is the RDF mar-ket’s 
immaturity – everything from 
the lack of EFW infrastructure and 
planning delays for new plants, to 
a lack of confidence in the business 
case and hard-to-access finance for 
new plants. 
“The economic case for both RDF 
production and energy production is 
unproven or at least in its infancy in 
the UK,” he says. “The challenge is 
then to secure finance for any facility 
either producing or using RDF.” 
Planning delays don’t help, 
according to Jacob Hayler, an econ-omist 
at the Environmental Ser-vices 
Association. 
“The problem is one of uncer-tainty. 
Developers have no idea how 
long it’s going to take to get plants 
built and any delay adds tremen-dously 
to costs,” he says. 
economically and in terms of emis-sions 
reduction, could be substantial 
if these challenges within the energy-from- 
waste sector can be overcome. 
“There is undoubtedly a strong 
commercial opportunity for RDF 
but, as ever in the waste industry, 
one that’s littered with challenges,” 
says Biffa’s Mr Wakelin. “It will be 
interesting to see who wins.” 
References 
1 https://www.gov.uk/government/poli-cies/ 
reducing-the-uk-s-greenhouse-gas- 
emissions-by-80-by-2050 
2 See link to incineration spreadsheet: 
http://www.environment-agency.gov. 
uk/research/library/data/150326.aspx) 
3 (See Landfill Tax Bulletin: https:// 
www.uktradeinfo.com/statistics/ 
pages/taxanddutybulletins.aspx) 
4 Environment Agency 
5 From interview with Hayler from the ESA 
“It’s a chicken-and-egg situation. 
We are exporting RDF because we 
don’t have the capacity to use it in this 
country, but we can’t build a busi-ness 
case for using it here because 
we’re currently exporting it.” 
His solution to unlocking this 
conundrum is for the government 
to incentivise the use of heat gen-erated 
by energy from waste more 
than it currently does. Energy from 
waste plants operate at about 20-30 
per cent efficiency if they only gen-erate 
electricity; if they use the 
heat generated as well, that rises to 
about 60-70 per cent . 
This makes them more economi-cally 
viable and able to compete 
with European energy-from-waste 
plants, which are often subsidised by 
governments and can thus charge a 
lower fee than their UK counterparts 
for taking RDF waste, ensuring a 
regular feedstock supply. 
Within the increasingly competitive 
waste industry, the rewards, both 
Refuse-derived fuel can be used 
in a variety of treatment plants 
Technological developments 
mean that metals can be extracted 
from street sweepings and plastics 
from sewage sludge, which can 
also generate heat and electricity. 
“Ultimately, we’re going to 
need an economy where we 
don’t burden the natural world 
with waste,” says Forum for the 
Future’s Mr Bent. “We don’t need 
every company to be zero waste; 
CASE STUDY 
we just need each company to 
be able to sell its ‘waste’ as ‘food’ 
to another company – an open-loop 
to experiment and invest in new 
business models where each link 
round the chain benefits from 
passing on stuff to the next user, 
so that nothing goes to waste.” 
NOSE TO TAIL 
IN PARK LANE 
A commitment to eliminat-ing 
waste is not necessarily 
what you would expect 
from a glitzy hotel – but 
that is what is happening 
at the Lancaster London 
on Park Lane, one of the 
capital’s most glamorous 
addresses. 
“We understand that as a 
hotel and food business, 
we have a massive carbon 
footprint,” says Eibhear 
Coyle, executive assistant 
manager for operations. 
“We wanted to reduce 
our impact.” 
The impetus came about 
when the hotel kitchens 
underwent a refit. “It was 
a massive investment 
and we wanted to make it 
sustainable for the next 
25 years,” Mr Coyle adds. 
“One of the first things I did 
was to remove the waste 
compactors because they 
made it harder to change 
the culture among the 
staff. It is difficult to change 
the culture because zero 
waste means more work 
for staff, but people have 
bought into it.” 
One of the biggest con-tributors 
to the hotel’s 
waste was bottled water, 
economy. Companies need 
which used to result in 
50,000 plastic bottles being 
thrown away every year. 
Now the hotel filters and 
bottles its own water in 
reusable bottles. 
In addition, Lancaster 
London asked its suppli-ers 
either to deliver food 
in crates that can then be 
reused or to decant sup-plies 
in the loading bay to 
reduce packaging waste. 
Another driver was a 
desire to achieve a rating 
from the Sustainable 
Restaurant Association. 
Front of house, the hotel’s 
restaurants and banquet-ing 
facilities adopted a 
“nose-to-tail” approach 
that reduces food waste 
by using “forgotten” cuts 
of meat that are often 
neglected. 
Not only did this reduce 
costs and the carbon foot-print 
of the dining facilities, 
but it has also become a 
selling point, particularly 
on the banqueting side. 
“The majority of our cus-tomers 
are big corpora-tions 
that have their own 
corporate social respon-sibility 
policies and this 
aligns with their values.” 
place in an economy which tries 
to squeeze the most value out of 
each atom.” 
The other aspect of zero waste 
is to rethink how products are 
designed and produced so they 
retain some value once they come 
to the end of their primary use, 
says Alban Foster, a director at 
SLR Consulting. “Zero-waste 
thinking demands that a business 
continually considers better ways 
of managing any materials that 
have the potential to be ‘waste’,” 
he says. 
Waste 
water 
Page 15 
This can range from recycling 
aluminium drinks cans so they 
can be used to make new cans, to 
turning waste from one produc-tion 
process into a totally new 
product. P&G, for example, is 
turning toothpaste waste into 
jewellery cleaner, while UK com-pany 
Knowaste recycles nappies, 
turning them into plastic that 
goes into products from bike 
helmets to park benches and even 
flood defences. The process also 
produces fibre that is used for eve-rything 
from cardboard packaging 
to bricks. 
“Nappies never rot. They would 
sit in landfill for at least 500 
years,” says Paul Richardson, 
business development director at 
the company, which is hoping to 
build five to ten processing plants 
around the country that would be 
capable of dealing with some 40 
per cent of the 1.1 million tonnes of 
nappies and hygiene products cur-rently 
sent to landfill every year. 
Even waste management com-panies, 
which you would think 
is the one sector of the economy 
that would not embrace the zero-waste 
concept, are getting in on 
the act. “Our focus has changed 
from getting waste out of cities 
and into landfill to what materials 
we can find that have value,” says 
Richard Kirkman, technology 
director at Veolia. 
10 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 11
MANAGING WASTE MANAGING WASTE 
2 Time for change 
The waste and business sectors need to 
work together in new ways if they want to 
exploit the commercial opportunities within 
the “circular economy”, says Paul Cox, 
managing director of Reconomy 
70% 
of Reconomy's core business is 
providing waste solutions to the 
construction sector 
1,500 
unwanted beds from Travelodge have 
been refurbished for use by charities 
such as the British Heart Foundation 
65% 
of the recycled beds were suitable 
for reuse, generating £57,000 for the 
British Heart Foundation 
the exception. Until then, we and oth-ers 
are moving into prime position to 
take advantage of the many business 
opportunities afforded by what we 
hope will be the growing take-up of 
circular economy principles. 
With a number of notable excep-tions, 
the vast majority of global 
production is deeply unsustainable. 
It’s a “take-make-dispose” linear 
system that generates staggering 
amounts of waste and causes sub-stantial 
environmental damage. 
Increasingly, businesses are look-ing 
at alternatives, one of which is 
the “circular economy”. This takes 
its inspiration from nature – that 
human systems should work like 
organisms, processing biologi-cal 
and technical inputs, which can 
be fed back into the process, and 
reused again and again. Zero waste 
is a key component of this process. 
It’s not just a theory. There are 
businesses out there applying cir-cular 
economy principles, but they 
tend to be large corporates rather 
than smaller companies. If closed 
loop is achievable, why is it not more 
widespread throughout the busi-ness 
community? 
Part of the problem is the frag-mented 
nature of the waste sector. 
This makes it hard for companies to 
offer national solutions to the larg-est 
waste producing sectors in the 
UK, including construction, which 
comprises more than 70 per cent of 
Reconomy’s core business. 
Progress towards circular econ-omy 
business models is happening, 
but a more collaborative approach 
between partners is required to 
make it more commonplace. 
There is a lack of understanding, 
skills and knowledge of how com-panies 
can work together to achieve 
this aim. Businesses can overcome 
this by outsourcing their recycling 
and waste operations to a national 
provider which uses local supply 
networks. This reduces companies’ 
operational burden, allowing them 
to focus on waste reduction, re-use 
and minimisation strategies. 
Reconomy’s collaborat ive 
approach enables us to come up 
with innovative ways to work with 
clients. As part of our recent part-nership 
with Travelodge, to date 
we have collected about 1,500 
unwanted beds from the hotel chain 
and refurbished half of them for use 
by charities, such as British Heart 
Foundation. Not zero waste, but a 
step in the right direction. 
Zero waste was, however, a condi-tion 
of Reconomy’s waste manage-ment 
work at the Olympic Aquatic 
Centre. We sent all waste that 
couldn’t be recycled to Northumber-land 
Wharf, east London, from where 
it was transported by barge along 
the Thames to a refuse-derived fuel 
facility. The constraints of the Olym-pic 
Park site and limited waste trans-port 
options meant we had to come 
up with a creative solution. 
Infrastructure challenges aside, 
the business case for the circu-lar 
economy is clear – low or no 
waste means lower landfill costs. 
But judging by the few examples 
out there, this doesn’t seem to be 
enough of a driver. In the end, it’s the 
responsibility of both clients and the 
waste sector to come up with inno-vative 
ways to reduce waste. 
To move towards a circular econ-omy, 
organisations need to break 
away from the traditional ways 
of doing things and explore new 
cross-sector partnerships with dif-ferent 
clients. 
Waste operators should be pro-viding 
solutions for companies that 
bridge the skills and knowledge 
gap within the sector, and by work-ing 
together, aim to reduce waste as 
much as possible. 
If this happens, it’s likely that compa-nies 
such as Reconomy will become 
the rule rather than, as they are now, 
COMMERCIAL FEATURE 
Increasingly, 
businesses 
are looking at 
alternatives, one of 
which is the 
‘circular economy’ 
LIVING IN 
A MATERIAL 
E-WORLD 
Environmental, cost and supply pressures are 
bringing about a shift in design priorities to avoid 
expensive waste of materials, notably in the 
electronics sector, as Jim McClelland reports 
DESIGNING OUT WASTE 
ȖȖGold, silver and platinum will 
be among precious metals worth 
£1.5 billion purchased unwittingly 
in the UK between now and 2020. 
This hoard of hidden treasure will 
be scattered throughout ten mil-lion 
tonnes of electronic products 
bought by organisations, compa-nies 
and private individuals alike. 
Electronic, digital and mobile 
technologies are big business. 
The marketplace is competitive, 
evolving constantly and rapidly. 
Sales are strong, not least because 
products date and break. 
Share and discuss online at raconteur.net 
As a result, product and mate-rial 
recovery, recycling and reuse 
is also an area of rising concern 
– and opportunity. Waste electri-cal 
and electronic equipment 
(WEEE) is now the fastest growing 
waste stream worldwide, with an 
estimated two million tonnes dis-carded 
in the UK every year. 
In response, new European 
Union WEEE regulations com-ing 
into force this year seek to 
encourage producers to consider 
the environment at disposal and 
end of life, designing out waste and 
adopting cradle-to-cradle (C2C) 
responsibility for products. 
What will be the effect of these 
legislative changes? The new obli-gations 
carry potential implica-tions 
for all stakeholders and life-cycle 
stages, from design, though 
manufacture, to consumption 
and finally recovery. How will the 
market react? 
“The majority of rethinking of 
e-waste is driven by clear and con-sistent 
regulatory requirements, 
primarily emanating from the 
European Commission,” explains 
Will Schreiber, co-author of the 
WRAP report Reducing the envi-ronmental 
and cost impacts of 
electrical products, and associate 
director at Best Foot Forward. 
“Whether televisions or washing 
machines, the overall trend in the 
electrical sector has been to make 
products less repairable and have 
shorter lifetimes,” he says. “The 
changes that we see in response to 
legislation, however, are starting to 
have an effect on the business mod-els 
some companies are developing 
by reducing hazardous substances, 
offering longer warranty periods or 
providing buy-back options.” 
This emerging trend will ask 
questions of product designers, a 
community that has been relatively 
slow to respond to the waste issue 
creeping up the corporate and 
regulatory agenda, according to 
designer and head of sustainability 
at Seymourpowell Chris Sherwin. 
“I don’t think designers have 
considered the waste and disposal 
stages of products anywhere near 
as much as they should,” he says. 
“Most of what we do in design 
processes is to become the cham-pion 
of the consumer experience. 
The main problem with that is it 
misses off the front and especially 
the back-end aspects. We need a 
broader, more holistic approach.” 
The conditions for change are 
gradually becoming manifest in 
electronics markets, with a com-bination 
of contributory factors in 
evidence, he says. “It is no secret 
that carbon/energy has been the 
main driver for the electronics 
sector, but companies are turning 
more to waste and resource con-sumption, 
driven by concepts like 
C2C, the circular economy, rising 
materials costs, better recycling 
and recovery infrastructure. It 
seems more of a priority in design 
now.” 
Momentum in waste markets 
still seems more push than pull 
though, as Mr Schreiber describes 
the dynamic. “Unlike energy con-sumption, 
which has direct con-sumer 
benefits and therefore 
demand, material control and 
optimisation are mostly driven by 
cost savings and regulations for 
critical raw materials, such as rare 
earths, Dodd-Frank [regulated] 
conflict minerals,” he says. “The 
biggest proponents of change have 
been the brands themselves setting 
a clear strategy. The problem is 
that few organisations have actu-ally 
looked at waste as a business 
opportunity rather than a burden.” 
This limited response may well 
be explained in part by the weak 
signals being received in general 
from a customer base typically 
still stuck in consumer mode, 
as Adam Read, practice direc-tor 
– waste management and 
resource efficiency, at Ricardo- 
AEA, explains: “Unfortunately, 
the drive of consumerism is a little 
like the Titanic – difficult to slow, 
almost impossible to divert and 
ultimately destined for failure. 
Although consumers may not be 
changing on their own, with strong 
government leadership, responsi-ble 
manufacturers and increasing 
public awareness that recycling is 
good, but waste prevention bet-ter, 
we can expect to see a shift in 
direction in the next decade or so.” 
Are we nearing a tipping point? 
Sophie Thomas, co-director of 
design at the RSA and one of the 
founders of the Great Recovery 
Project, reimagining products and 
material flow cycles, seems to think 
so. She counsels though that things 
could yet go one of two ways, with 
the waste sector “either on the 
cusp of something great or the edge 
of a cliff”. 
Dr Read concludes that breaking 
traditional take-make-waste para-digms 
depends on a clear business 
case emerging on the supply-side 
and a circle more material than 
virtuous. “Ultimately, we are fac-ing 
significant resource risks in 
the electrical products world, from 
rare-earth metals in particular, so 
price will continue to increase as 
scarcity worsens,” he says. “This 
will drive innovation in product 
design and processing, includ-ing 
more closed-loop solutions 
where electrical products are 
never owned, just leased/rented 
from manufacturers, thus ena-bling 
them to control the supply of 
increasingly valuable materials.” 
For all the virtual community 
and cloud computing advantages 
afforded us by the latest electronic 
and mobile technology, the means 
to these online ends are still very 
much grounded in physical com-modities 
and mineral properties. 
Paradoxical as it might seem, we 
are living in a material e-world. 
Motherboards 
from Panasonic 
home appliances 
are recycled in 
Kato, Japan 
With strong government leadership, 
responsible manufacturers and 
increasing public awareness that 
recycling is good, but waste prevention 
better, we can expect to see a shift in 
direction in the next decade or so 
CASE STUDY 
THIS YEAR’S MODULE 
IS A PHONEBLOK 
There are now more iPhones sold every day worldwide 
than babies born and more mobile devices on Earth 
than people. 
Since the first call made on a 23cm-long 1.1kg Motorola 
in 1973, the accelerating rate of obsoletion means an 
average US cellphone is now kept for just 18 months. 
Despite leasing initiatives, cashback offers, drawers 
of “retired” kit, plus some reuse and recycling, global 
e-waste mountains are growing at a rate in excess of 
ten million mobiles a month. 
For innovation and disruptive technology to make a 
successful start tackling mobile-related resource 
consumption and waste, it is wrong however to assume 
size matters. 
As Phonebloks founder Dave Hakkens explains: “To 
tackle a big problem, you do not necessarily need a big 
solution. With the emerging technology empire soon 
to embrace the “internet of things”, even one solution – 
such as a mobile phone – to just one part of the bigger 
electronics problem still represents something of 
significance and starts the market shift to 
modular thinking.” 
Phonebloks launched last year via viral video and 
“crowdspeaking” social media, campaigning to demon-strate 
the mass-market appeal of modular and attract 
commercial production partners. Billed as “a phone 
worth keeping”, Phonebloks challenges the notion that 
electronics are not designed to last. 
A collaborative open-platform venture, the concept 
handset comprises detachable blocks – providing a 
processor and storage capabilities, camera and screen 
functions, for example – all connected through pins on 
a base. The modular nature allows easy upgrading of 
components. 
This same designed-in interchangeability also facili-tates 
customisation, described by Mr Hakkens as a 
demand priority identified in market research. 
“Talking to a diverse mix of technology users around 
the world, with different priorities and situations, the 
first rule of phone design we learnt is that there has to 
be more to a mobile than just battery life and megapix-els,” 
he says. “For some owners, being able to meas-ure 
diabetes indicators or monitor a heartbeat features 
much higher up the agenda than camera capability. 
Any solution that aspires to become universal must 
cater for the particular – customisation is key.” 
It is important for marketability that users can person-alise 
purchases with custom features and so invest in 
a sense of ownership, choosing blocks they want and 
supporting brands they like. 
Coming full circle, Phonebloks has now teamed up 
with Motorola, raising the prospect that modular might 
just answer the call for more sustainable mobile tech-nology 
begun four decades ago. 
12 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 13
MANAGING WASTE MANAGING WASTE 
EXPLOITING 
THE GREAT RECOVERY LIQUID ASSETS 
OF EARTH’S RESOURCES 
Once considered a source of pollution, 
waste water now has fresh potential, 
writes Sarah Murray 
WASTE WATER 
ȖȖWith global water stress an 
increasing worry to companies, 
governments and others, atten-tion 
is focusing on how to conserve 
this precious natural resource. 
However, as materials scarcity 
becomes more evident, another 
question is now on the lips of cor-porate 
leaders and policymakers – 
what value can be extracted from 
waste water? 
Of course, part of the challenge 
is to prevent water from being 
wasted in the first place. The oil 
industry, for example, generates 
large volumes of waste water. 
“They separate the oil and water, 
and inject it back into a salt water 
disposal well a mile underground 
and it’s never used,” explains 
James Wood, chairman and chief 
executive of US-based ThermoEn-ergy. 
Share and discuss online at raconteur.net 
“That’s fine where you have 
enough water. But it’s not so good 
in west Texas, where they have 
very bad drought conditions.” 
ThermoEnergy’s flash vacuum 
distillation technology is a phys-ical- 
chemical process that uses 
temperature and reduced pres-sure 
to separate chemicals, metals 
and nutrients from waste water. 
This technology, argues Mr Wood, 
could be used to turn the waste 
water produced by the extractive 
industries into water that could 
be used by farmers, particularly in 
areas of drought. 
However, waste water contains 
rich seams of chemicals and min-erals, 
from nitrogen and phospho-rus 
to propylene glycol and heavy 
metals. Once viewed merely as a 
costly or even toxic problem to be 
dealt with, waste water and the 
materials it contains are increas-ingly 
being viewed as a means of 
creating value. 
Nitrogen and phosphorus, for 
example, can create purification 
and algae blooms in waterways. Yet 
they are also valuable materials in 
the manufacture of fertiliser. 
For this reason, Vancouver-based 
Ostara Nutrient Recovery Tech-nologies 
has developed a way of 
recovering phosphorus and nitro-gen 
from municipal and industrial 
waste water, and transforms them 
into fertiliser. 
“The technology is very much 
geared towards making a market-able 
product,” says Phillip Abrary, 
Ostara president and chief execu-tive. 
“We’ve changed our mindset 
from seeing these things as a 
source of pollution to developing 
technologies that can take them 
out and turn them into something 
with the same or greater value.” 
Many of Ostara’s clients are 
municipalities for whom the 
appeal is that they are able to 
tackle pollution on several fronts. 
While the technology enables 
the cleaning of waste water, the 
The myth that our Earth can provide the human 
race with unlimited natural resources has been 
well and truly busted, says Sophie Thomas 
Sophie Thomas is co-director 
of design at the RSA and 
project director of The Great 
Recovery programme 
OPINION 
ȖȖThe rising cost and restricted 
supply of materials that go into 
making the products we use every 
day is creating a global race for sup-plies 
of oil, gas, water, metals and 
minerals, and fuelling geo-political 
conflicts around the world. 
And yet more than 30 tonnes of 
waste are produced for every one 
tonne of products reaching the 
consumer, 90 per cent of which 
are thrown away – mostly into 
landfill – within six months of 
purchase, according to the World 
Economic Forum. 
This linear model of “take-make-dispose” 
is lending new meaning 
to the concept of fast-moving 
consumer goods and is throwing up 
major economic, social and envi-ronmental 
challenges. 
Ever since the Industrial Revolu-tion, 
businesses have pursued the 
model of “more, faster, cheaper”, 
but now, with growing extraction 
costs, increasingly volatile markets 
and the spectre of climate change 
upon us, it is time to rethink our 
basic systems of demand and sup-ply, 
manufacture and disposal. 
The Great Recovery project was 
born at the RSA in 2012 in response 
to some of these global pressures. 
Along with my RSA co-director of 
design Nat Hunter, I set out to dis-cover 
what role design could play in 
the re-programming of our linear 
methods of production in order to 
achieve something altogether more 
circular, a system where products 
are continuously reused, repaired 
or reprocessed. 
As a communications designer for 
many years, experience had taught 
me that much of our waste was, in 
essence, a design flaw. European 
Commission estimates show that 
more than 80 per cent of a product’s 
environmental impact is deter-mined 
at the design stage, largely 
through a lack of understanding, an 
uncaring brief and the lack of incen-tives 
to do anything differently. 
The Great Recovery set out to 
challenge the case for “business 
as usual” by providing a space in 
which designers can come together 
with policymakers, manufactur-ers, 
academics, waste managers, 
chemists, retailers and consumers 
to understand the challenges, and 
co-create the new processes and 
products that will be needed in a 
circular economy. 
Over the last 18 months, we have 
been building these collaborative 
networks and using the practi-cal 
lens of the design industry to 
focus on some of the problems and 
opportunities involved in “closing 
the loop”. 
Our programme of workshops 
and events set in the industrial 
landscapes of recovery and recy-cling 
facilities, disused tin mines 
and materials research labs has 
brought people from across all sec-tors 
to participate in “tear down” 
and “design up” sessions. 
By literally pulling products off 
the recycling pile and taking them 
apart to understand how they are 
currently designed, manufactured 
and disposed, and then trying to 
redesign and rebuild them around 
our four design models for circular-ity, 
we learnt some valuable lessons: 
»» The role of design is crucial to 
circularity, but very few designers 
understand or think about what 
happens to the products and services 
they design at the end of their life; 
»» New business models are needed 
to support the circular economy; 
»» The ability to track and trace 
materials is key to reverse engi-neering 
our manufacturing pro-cesses 
and closing the loop; 
»» Smarter logistics are required, 
based on better information; 
»» Building new partnerships 
around the supply chain and 
knowledge networks is critical. 
This first phase of work also sup-ported 
the Technology Strategy 
Board, which has invested £1.25 
million into a range of feasibility 
studies proposed by business-led 
groups and collaborative design 
partners, through its New Designs 
on a Circular Economy competition. 
The inaugural 2014 Resource 
exhibition sees the launch of the 
next phase of work for The Great 
Recovery in a two-year programme 
that will bring together material-science 
innovators, design experts, 
leading manufacturers, and cru-cially, 
end-of-life specialists to 
explore the relationships between 
design, materials and waste. 
Our growing “re-materials” 
library will be a tangible way for 
people to experience the innova-tions 
and challenges associated 
with circular-economy thinking: 
we may have efficient recycling 
facilities to reprocess certain mate-rials, 
for instance, but how are we 
innovating to create longer-lasting 
products or redesigning business 
models for service or leasing? 
In a move to nurture disruptive 
thinking across the network, we 
will be developing short-term 
immersive design residencies that 
can set up inside recovery facilities 
around the UK. The design teams 
will be there to observe and expe-rience 
the complexity of recovery 
systems, and to help inform think-ing 
around current waste streams 
and new product designs. 
As well as building our online 
platform and expanding our net-work 
with events and investiga-tions, 
we will be establishing the 
first innovation hub in central 
London. The hub will be a physical 
focus for the exchange of ideas, 
prototyping and experimentation, 
and will also host bespoke business 
workshops and consultations. 
The Great Recovery is part of 
the Action Research Centre at the 
Royal Society for the Encourage-ment 
of the Arts, Manufacture 
and Commerce (RSA) and is 
supported by the Technology 
Strategy Board 
With growing extraction costs, 
increasingly volatile markets and 
the spectre of climate change upon 
us, it is time to rethink our basic 
systems of demand and supply, 
manufacture and disposal 
industries such as agriculture, 
chemicals, paper production and 
textiles. 
With demand for raw materi-als 
rising, along with the price of 
these commodities, more of these 
kinds of technologies are likely to 
emerge. “As a growing population 
around the world, we need more 
of the things that we’re consuming 
and discarding – that’s a continu-ous 
trend,” says Mr Abrary. “So a 
sustainable source of materials 
and basic elements is key.” 
Often the extraction of materials 
from water is driven by legislation 
primarily designed to conserve 
water, preserve clean water or 
safely dispose of waste water 
fertiliser Ostara produces with 
the recovered phosphorus and 
nitrogen is a slow-release product 
that, because it does not dissolve 
in water, prevents the run off of 
chemicals into surrounding rivers 
and waterways. 
Often the extraction of materi-als 
from water is driven by legis-lation 
primarily designed to con-serve 
water, preserve clean water 
or safely dispose of waste water. 
ThermoEnergy, for instance, 
developed its waste water treat-ment 
technology in New England 
after the introduction of federal 
standards for drinking water. 
The legislation – the National 
Pollutant Discharge Elimination 
System – requires a disposal per-mit 
for any water being put into a 
sewerage system. 
In New England, with a vibrant 
metal-plating industry, the legis-lation 
created demand for tech-nology 
that could clean dissolved 
metals, such as chrome, nickel 
and zinc, from the water these 
companies use in the metal-plating 
process. 
However, a second benefit of 
ThermoEnergy’s technology has 
emerged. “The metal-plating 
industry now uses this machine 
to recover metals they otherwise 
would have thrown away,” says 
Mr Wood. 
Another use is in extracting gly-col 
used in the de-icing fluid that 
is sprayed on to planes at airports 
during freezing weather. “You have 
this flow back of water, from which 
they look to recover the chemicals 
because they are valuable,” he says. 
Another extremely valuable com-modity 
that can be extracted 
from water is alginate. In the 
Netherlands, Delft University of 
Technology and a consortium of 
partners have developed Nereda, 
a low-energy technology that 
makes minimal use of chemicals to 
extract alginate from waste water. 
The alginate is currently used 
in food and medical products, but 
could also potentially be used in 
14 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 15
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WM-doubles

  • 1. _ 05.March. 2014 PAGE 08 BRING BACK BOTTLE DEPOSITS PAGE 10 AIMING AT ZERO WASTE PAGE 07 ENERGY FROM WASTE MANAGING WASTE
  • 2. MANAGING WASTE WASTE IS NO LONGER JUST A RUBBISH INDUSTRY Recycling waste into valuable raw material is transforming the industry’s outlook, as Mike Scott reports OVERVIEW ȖȖThe waste management business has always been an essential but unglamorous part of the economy, largely out of sight and out of mind unless something goes wrong. But there has been a quiet revolu-tion going on in the last few years that has led to a change of outlook and a new approach. Companies in the wider economy have to cope with concerns about the increasing scarcity and cost of raw materials. There is tighter regulation on waste disposal, with the landfill tax and a range of Euro-pean directives that demand prod-ucts, such as cars and consumer electronics equipment, are fully recyclable once they reach the end of their useful life. There is also a growing concern about the amount of waste that companies – and society at large – are producing. Every year, “well over one billion tonnes of waste is generated along food and agribusiness supply chains around the world, and almost 2,000 cubic kilometres of water, or more than 500 million Olympic-size swimming pools, are required to produce this wasted food”, accord-ing to a report by Rabobank Food & Agribusiness Research. This combination of pressures is making companies look more closely at the waste they pro-duce. “We have to treat waste as the raw material for tomorrow’s products,” says Alan Knight, sus-tainability director at Business in the Community. And the waste industry is having to change as a result. Waste is one of the economy’s “golden sectors”, says Steve Lee, chief executive of the Chartered Institute of Waste Management, because it is one of the industries, like water and energy, which ties all the other parts of the econ-omy together. “This is the most exciting and forward-looking time I have ever seen in the industry,” Mr Lee adds. “The industry is moving away from the role of being a coping indus-try, where our job was to receive whatever society threw at us and make it go away. Now the industry is about resource management imperatives. We can’t lose sight of the fact that we still keep the streets clean, but we are using more of the waste in a productive way than ever before.” Materials, such as rare minerals, which are used in products rang-ing from consumer electronics to wind turbines, are expensive, says Nicola Jenkins, associate director at the consultancy Anthesis. “If you can bring them back into the system, you are cutting the cost of your raw materials,” she says. As a result, the waste sector’s customers – and competitors – are changing. “Manufacturers who need resources might want to get into this space; mining companies might want to do the same, espe-cially when you think that there is more gold in a New York landfill site than in a typical gold mine,” says Dr Knight. “Waste management companies can have a very strong role in this new resource-conscious econ-omy,” says Dr Forbes McDougall, corporate solid waste leader, global product stewardship, at Procter & Gamble. “But if they do not find solutions for our waste streams and we do, we will just take it away from them. “They have to become materials management or resource manage-ment companies because, if they don’t, they will lose their competi-tive advantage. If they come to us and say they can turn our waste costs into recycling revenue, we’re going to listen to them.” This is what the industry is doing. “We can see that landfill is coming to an end. It never used to matter what came into our facilities. It was all just waste,” says Richard Kirk-man, technology director at Veo-lia. “We’re now focused on what materials we can recover. We have had to put in place a huge change management process. We have had to up-skill our staff. We didn’t have the mentality of manufacturers and that has had to change.” This shift in mentality has been helped by changes in design that mean many products and packag-ing are easier than ever before to dismantle in order to recover mate-rials, while advances in technology have made it possible to separate and recycle more difficult products, such as Tetra Pak drinks cartons. Rather than just being the recipi-ent of other sectors’ waste, the industry is now starting to engage all the way up the value chain to engineer hard-to-dispose materi-als out of the system. However, many industry figures say the policy environment in the UK is uneven. “Scotland, Wales and increasingly Northern Ireland are more forward-looking, and see this as important not just from an environmental point of view, but an economic and social point of view as well,” says Mr Lee. “The coalition does not see it that way. The English approach is based more on compliance because the government doesn’t want any bur-dens on the public purse. I think they are missing a trick. “This industry is part of the green growth opportunity for jobs, skills and resource security.” Nonetheless, he adds: “It was not so professionally satisfying to be the industry that coped with what people threw at us. It’s much more fulfilling to be the industry that helps to manage resources more efficiently.” There is more gold in a New York landfill site than in a typical gold mine raconteur.net twitter: @raconteur 03 DISTRIBUTED IN PUBLISHING MANAGER David Kells MANAGING EDITOR Peter Archer COMMISSIONING EDITOR Mike Scott PRODUCTION MANAGER Natalia Rosek CONTRIBUTORS FELICIA JACKSON Editor at large of Cleantech magazine and author of Conquering Carbon, she specialises in issues concerning the transition to a low-carbon economy. JIM McCLELLAND Sustainable futurist, speaker, writer and social-media commentator, his specialisms include built environment, corporate social responsibility and ecosystem services. SARAH MURRAY Specialist writer on environmental sustainability and corporate responsibility, she is a regular contributor to the Financial Times and other leading titles. TIM PROBERT Freelance energy journalist, he was formerly deputy editor of Power Engineering International and an editor of commodity reports. MIKE SCOTT Freelance journalist, specialising in environment and business, he writes regularly for the Financial Times, Bloomberg New Energy Finance and 2degrees Network. Although this publication is funded through advertising and sponsorship, all editorial is without bias and sponsored features are clearly labelled. For an upcoming schedule, partnership inquiries or feedback, please call +44 (0)20 3428 5230 or e-mail info@raconteur.net Raconteur Media is a leading European publisher of special interest content and research. It covers a wide range of topics, including business, finance, sustainability, lifestyle and the arts. Its special reports are exclusively published within The Times, The Sunday Times and The Week. www.raconteur.net The information contained in this publication has been obtained from sources the Proprietors believe to be correct. However, no legal liability can be accepted for any errors. No part of this publication may be reproduced without the prior consent of the Publisher. © Raconteur Media Share and discuss online at raconteur.net DESIGN, ILLUSTRATION, INFOGRAPHICS The Surgery Colourful waste doors brighten up a building site in South Korea’s capital Seoul
  • 3. MANAGING WASTE MANAGING WASTE WHAT GOES AROUND COMES AROUND… TOP TECHNOLOGIES Taking a circular, rather than linear, approach to production and designing products with recycling in mind saves money – and the Earth, writes Sarah Murray CIRCULAR ECONOMY ȖȖBy allowing its customers to upgrade early, Vodafone is satisfy-ing demand among mobile phone consumers for the very latest devices. Looked at another way, however, the company is now leas-ing rather than selling handsets, giving it a means of retrieving and recycling equipment. As the rising cost of materials, as well as legislation such as Europe’s Waste Electrical and Electronic Equipment (WEEE) directive, increase the pressure to return materials to the industrial sup-ply chain, the idea of a circular economy is gaining momentum. But some argue that, if the con-cept is to take hold on a massive scale, radical shifts in mindset will be needed and companies must learn to work more closely with each other. Bottle deposits Page 08 Certain models provide easy wins for companies and consum-ers. For Vodafone customers on a 24-month plan, the new Red Hot programme gives them access to the latest devices by allowing them to upgrade 12 months early. At the other end of the chain, companies adopting this type of model – another is O2 Lease, a smartphone leasing service – can sell their phones into secondary markets or to recycling companies that extract the valuable materials from them for reuse. What is interesting about such business models, however, is that companies are not necessarily promoting the idea of green or sustainable products. Rather, the appeal for mobile phone consum-ers lies in the ability to get hold of the latest model as soon as it comes out. “They don’t tell you you’re leasing it; they tell you you’ll get access to the best performance and because of the business model, they can MAKING A MARK Felicia Jackson examines new technologies in the waste sector and assesses their impact INNOVATION Often opportunities are missed because companies are unaware that other businesses could find uses for their waste give you a better deal,” says Jamie Butterworth, chief executive of the Ellen MacArthur Foundation, which is working with companies such as Cisco, Philips, Renault and Kingfisher to accelerate the transi-tion to the circular economy. Of course, in some ways the idea of the circular economy is nothing new. The cradle-to-cradle phi-losophy of production and manu-facturing pioneered by William McDonough and his consultancy, MBDC, has been around for more than a decade. The idea of taking a circular, rather than a linear, approach to industrial production, also referred to as closed loop manu-facturing, has long been embraced by companies such as Desso and Interface. Both flooring companies have developed innovative recy-cling technologies. For Umicore, the Belgium-based materials technology group, the shift to the re-use model started in the 1990s, when the company transformed its business by exiting its traditional mining operations to become a specialty metals refining, recycling and recovery business. Developing advanced recycling technologies was part of this. “And metals can be recycled infinitely without losing any of their physi-cal chemical properties,” explains Marc Grynberg, the company’s chief executive. Umicore can retrieve precious metals from everything from min-ing and industrial waste to the circuit boards from old computers and mobile phones. Its transformation was prompted by the need to address the negative environmental impact associated with mining and smelting. “We started with a problem to fix,” says Mr Grynberg. “But as we moved in this direction, we found there were opportunities that others could not seize.” Often these opportunities are missed because companies are unaware that other businesses could find uses for their waste. It was for this reason that Peter Laybourn founded International Synergies. Its National Industrial Symbiosis Programme (NISP) uses resource matching work-shops and other means of sharing knowledge to help companies explore whether their energy and by-products can be turned into valuable resources that can be sold to other companies. In the UK, for example, NISP helped Denso Manufacturing, which makes air conditioning units, engine cooling systems and automotive components, find a way to remove the moisture from the filter cake produced in its effluent treatment plants so that it could be used by other-companies. When crushed, the cake becomes an active agent in the absorption of oil and solvent. This agent can then become a fuel source and the residual ash can be used to improve the qual-ity of soil. Meanwhile, Denso is saving £30,000 a year. Intermediaries such as NISP play a critical part in the circular economy, argues Mr Laybourn, by filling information gaps and acting as a matchmaker for com-panies. “The key success factors are bringing people from different sectors together face-to-face and having good, clean, accurate data,” he says. Mr Grynberg believes companies must start thinking about resource management in a different way. “You need to move from seeing sustainability as a set of additional constraints, like having to reduce your CO2 footprint or water use, to detecting new opportunities if you work differently,” he says. As raw materials continue to rise in price, these opportunities look increasingly compelling. “What we’ve seen in the past ten years is a significant increase in the price of energy, metals, and agricultural and non-agricultural commodi-ties,” says Mr Butterworth of the Ellen MacArthur Foundation. “And that’s really beginning to drive some action.” This is why the foundation has done research to quantify the financial benefits of the approach. It reckons that, if companies work together to build circular supply chains which dramatically increase recycling and re-use rates, $1 trillion a year could be added to the global economy by 2025. “Putting a figure on the size of the prize gains a lot of interest,” says Mr Butterworth. PLASMA ARC ȖȖOne of the most exciting innovations in waste to energy, this involves a plasma arc which ionises waste to create syngas and slag. Air Products is constructing a plant on Teesside using Altern NRG technology; while in Canada, Plasco is operating a full-scale 50,000-tonne plant transforming municipal waste into syngas. The challenge with plasma arc is high parasitic loads, making it an expensive approach to waste management. However, at Stopford Projects Dr Ben Herbert says the group is working on a small plasma demonstration plant with a major utility and power generator. The new plant is using a new pro-cess utilising microwave to generate heat, creating a far lower parasitic load, with lower operating and capital expenditure. SEWAGE MINING Sewage waste is a rich source of energy and materials, especially high in fats. When not properly managed it can mean clogged sewers – remember the infamous London fatberg – and high-cost cleaning. Removing this waste to generate new products could prove the future of waste management. Ostara has developed a process that takes 80 to 90 per cent of phosphorus and nitrogen out of waste water, removing con-taminants and developing a secondary product – an effective non-water soluble fertiliser. The company is already operating a plant for Thames Water, as well as five in the United States and one in Canada. Isreael’s Applied CleanTech has developed a sewage mining system, which picks out and recycles useful fibres from raw urban and industrial waste water, increasing the efficiency of treatment plants and reducing the amount of unwanted sludge and the cost of waste water treatment by 20 to 30 per cent. BIOPLASTICS The development of bioplastics and other plant-based materials could have a dramatic impact on industrial reliance on petro-chemicals, being not just biodegradable but compostable. It could also address waste by-products in the supply chain. Biome Bioplastics, for example, develops its products and materials from potato starch, a by-product of the wallpaper paste industry. According to director Paul Mines, the company has already developed a plant-based material for biodegrad-able coffee pods, offering one of the first sustainable packaging alternatives in the single-serve market. “We’ve had traction in high-value, relatively niche sectors, like coffee pods, disposable razors, even tree protectors for horticul-ture,” he says. While the cost of bioplastics is currently two to three times that of oil-derived plastics, Mr Mines expects to see rapid devel-opments in industrial biotechnology. He says: “I can see a path where we can make cheaper bioplastics, probably within three to four years.” In conclusion, Allan Barton, Arup’s director and global leader, resources and waste management, advises: “There are two basic approaches to take. If the waste is organic, then cycle as nature intended by burning or composting. If it’s inorganic, then cycle it around and around the supply chain. We need to look at the waste stream as a source of materials to refine, just as petrochemical companies refine oil." $1trn A YEAR COULD BE ADDED TO A CIRCULAR GLOBAL ECONOMY BY 2025 100,000 NEW JOBS COULD BE CREATED FOR THE NEXT FIVE YEARS Source: Ellen MacArthur Foundation 42m tonnes OF CO2 EMISSIONS CUT BY UK COMPANIES WORKING WITH NISP 48m tonnes OF WASTE REDIRECTED FROM UK LANDFILL Source: NISP 0044 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 0055
  • 4. says Mr Aitchison. To this end, the role of the Green Investment Bank (GIB) as a cornerstone investor is increasingly important, particu-larly Foresight Group recently forged a consortium with the GIB to construct a £47.8-million 10.3MW recovered wood gasification pro-ject in Birmingham. The GIB also invested £20 million in a 49MW waste-to-energy plant on Teesside in a consortium of SITA UK, Sembcorp Utilities UK and Japan’s Itochu. Mr Aitchison sees AD as a signifi-cant area for growth. This uses nat-ural bacteria, which breaks down waste to produce biogas for power and heat generation, and slurry which can be used for fertiliser. AD accounts for more than 500GWh a year of electricity gen-eration from 122MW of installed capacity, a tenfold increase in only five years. There are two main segments of AD – source-generated food waste (SSFW) and on-farm AD. SSFW units tend to be the larger of the two, typically 1 to 1.5MW with approximately 30,000 tonnes a year capacity. On-farm AD typically comprises sub-500kW units. The planning process for AD is considerably less controversial than larger waste management incinerators because they are smaller, less intrusive facilities and are usually designed to manage locally sourced waste. Mr Aitch-ison has an eye on a possible move to ban food to landfill, as proposed by the Labour Party should they be successful at the 2015 general election, as giving a big boost to the AD sector. Figures from the Waste & Resources Action Programme estimate 7.3 million tonnes of food waste is produced by UK households each year. “There is a progression to incentivising this,” says Mr Aitchison. “A landfill ban on food waste, which some peo-ple have said would be difficult to police, would undoubtedly be a benefit.” There are some caveats. The UK as a whole is poor at collecting waste material, with more than 100 different ways used to collect waste, be it bag, box or bin. Indeed, most local authorities do not col-lect food waste separately. Furthermore, the Department of Energy & Climate Change (DECC) last month confirmed feed-in tariffs for AD would be cut by 20 per cent, which the Renewable Energy Association fears will make some sub-500kW projects uneconomic. If the Labour Party gets in in 2015 and keeps its pledge to ban food waste from landfill, however, AD is likely to be back in vogue. 07 MANAGING WASTE ENERGY FROM WASTE IS GENERATING INTEREST Harnessing energy from waste enables companies to cut costs as well as carbon emissions, but there is potential for greater progress, as Tim Probert discovers ENERGY ȖȖEvery year the average per-son in the UK generates 500kg of waste. Of this, half usually ends up in landfill. Driven by the EU direc-tives on waste, for which the UK must reduce landfilling to 35 per cent of biodegradable municipal waste on 1995 levels by 2020, Brit-ain is making strides to turn waste into energy and wealth. Energy from waste (EfW) is not particularly new. Landfill gas has been used for decades and gener-ates more than 5,000GWh a year of electricity from over 1GW of installed capacity. Similarly, the large, typically 250,000 tonnes a year waste-to-energy plants burning unsorted, municipal solid waste (MSW), popularly known as incinerators, generate around 2,300GWh a year from approximately 600MW of installed capacity. The landfill tax introduced in 1996, which saw councils charge a tax of £8 a tonne of material disposed in landfill, is perhaps the single most effective piece of legislation to incentivise efficient waste management practice. It has transformed the perception of waste to that of being a resource. A landfill tax escalator has seen the level steadily rise to £80 a tonne, with Chancellor George Osborne putting a floor under this figure until 2020. Moreover, almost all EfW pro-jects are eligible for three main revenue streams. These are the gate fee paid for processing waste instead of paying the landfill tax; the sale of the produced electricity; and one of two incentive regimes – renewable obligation certificates and feed-in tariffs. Although so far not widely deployed, the Renewable Heat Incentive offers an additional inducement primarily for CHP (combined heat and power) anaer-obic digestion (AD) plants. Non- CHP incinerators do not qualify for support. Local opposition to thermal treatment technologies or incin-erators can be fierce. Concerns are often raised about the health implications and the wider envi-ronmental impacts of burning waste. However, government and the industry argue the evidence shows the thermal treatment of waste is safe, while plants using cleaner technologies, such as advanced gasification and pyrolysis systems, which create synthetic gas and reduce air pol-lution, are increasingly common. But there are fears market saturation has created overcapac-ity and undersupply of energy feedstock, with some councils locked into punitive contracts to provide waste to incinerators instead of recycling. Indeed, fears about potential white elephants have forced the Department for Environment, Food & Rural Affairs to withdraw hundreds of millions in funding to build new incinerators. According to Nigel Aitchison, partner and co-head of environ-mental at investment management firm Foresight Group, talk about overcapacity is misplaced. He says: “When people talk about over-capacity they tend to talk about municipal waste, not the full waste market including commercial and industrial (C&I) waste produced by manufacturers, industry, hotels, restaurants and so on. In dry recy-clables, there may be overcapacity and a number of facilities have closed, but there haven't been any closures of EfW plants.” The trouble is nobody is quite sure how much waste there is available or will be in future. It is widely accepted that the waste datasets are not fit for purpose. Waste management consultancy Ricardo-ASA assumes that by 2020, there will be 53 million tonnes of MSW, C&I, and con-struction and demolition waste in need of treatment at thermal, organic and sorting facilities. On current capacity projections, how-ever, this is 15 million tonnes more than both the operational facilities and known infrastructure likely to be delivered by 2020. The absence of reliable waste data is a major hindrance to inves-tors; this applies to both the quan-tity of waste and the detailed infor-mation about its composition. The lack of sound data using a common methodology makes putting a busi-ness case together challenging and one of the core reasons for limited financing for new infrastructure. “What we’ve seen is a number of EfW projects that haven’t gone for-ward, not because they haven’t got the land or planning permission, but because they didn’t adequately structure the project in a way which meant it was investable,” NATIONAL RECYCLING STUDY raconteur.06 raconteur.net twitter: @raconteur net twitter: @raconteur for larger EfW projects. 599mw OF UK ENERGY FROM WASTE GENERATION CAPACITY Source: DECC 102.7m tonnes OF UK WASTE REQUIRING TREATMENT IN 2013 Source: Ricardo-ASA 7.3m tonnes OF FOOD WASTE PRODUCED BY UK HOUSEHOLDS EACH YEAR Source: Waste & Resources Action Programme The landfill tax has transformed the perception of waste to that of being a resource Share and discuss online at raconteur.net An energy from waste incinerator on Teesside Achieving a circular economy is the responsibility of us all As one of the UK’s leading recycling and resource management companies, SITA UK has a large role to play in the UK’s journey towards a “circular economy”, where all discarded resources are collected, processed and returned back to the manufacturing process, so that the cycle can start again are always working to find new ways to make use of materials that would otherwise be landfilled and to improve the proportion of collected materials that can be recycled. For example, SITA UK is currently commission-ing the UK’s first end-of-life plastics facility, which converts plastics that cannot be recycled, such as micro-wave meal film lids, into diesel fuel. “But improving recycling rates and diverting as much material from land-fill as possible requires the buy-in of everyone involved in the lifecycle of a product, from designer, through to manufacturer, retailer and consumer.” Mr Hayward-Higham points out that collecting materials, which have been discarded, and feeding them back into the manufacturing cycle is not the fi rst step towards a circular economy. “Design is one of the major cul-prits of waste and we need to think about how we can design products for their whole lifecycle,” he says. “By carefully considering design of products and packaging, we can minimise the amount of raw materi-als that enter the circular economy in the fi rst place, ensure they have a long lifespan before they are dis-carded and, fi nally, ensure they are easy to extract resources from to return to the manufacturing pro-cess at the end of their life. “For example, products that are designed to be upgraded or reman-ufactured would allow for them to be returned, renewed, restyled and resold as an improved version of the original, which is the reason most of us ‘upgrade’. This already occurs in products, such as photocopiers, where the ‘chassis’ might be used a number of times, but each time it looks new, feels new, has new func-tions and still does the job.” In fact, Mr Hayward-Higham says there are even wider, more funda-mental, cultural changes society can make as a whole to minimise waste. “If you stand back and take a look at the reasons why materials have been discarded, you begin to think about changes we could make to the way we live our lives, which opens a huge number of opportu-nities,” he says. “For example, we could move towards a model where products are replaced by services, known as ‘servitisation’. SITA UK, a subsidiary of SUEZ ENVI-RONNEMENT, is a recycling and resource management company, which serves more than 12 mil-lion people and handles 8.5 million tonnes of domestic, commercial and industrial waste each year. The company provides services for over 42,000 public and private-sector customers, and operates a network of facilities, including recycling, composting, biomass production, waste collection, energy-from-waste plants and landfi ll sites. Although it might seem counter-intuitive, the ultimate goal of SITA UK is to operate in a world with no more waste, where best use is made of all discarded materials by feed-ing them back into the cycle of pro-duction and consumption, instead of losing them forever to landfi ll. SITA UK’s technical development director Stuart Hayward-Higham explains why this isn’t a case of “tur-keys voting for Christmas” and why waste management companies only play a small, if not important, part in achieving a more sustainable model of consumption. “The word ‘waste’ no longer means that something is lost forever, it only means that the producer of the waste no longer has a need for it. Oth-ers may be able to use it, or the raw resources, and that’s the job of busi-nesses like ours – to find a sustain-able use or users for the materials others throw away,” he says. “Resource management companies “For instance, householders buy drills to make holes, but they don’t necessarily need to buy a drill to make a hole; they just need access to one, perhaps through a short-term rental. This means that the drills can be managed through the hirer, and their repair and mainte-nance can be conducted in an eco-nomical way. The result is that they are used for longer and not thrown away by the householder when a part breaks or wears out.” For many, the circular econ-omy is a slightly abstract con-cept, aand it is difficult for organ-isations and individuals to know what they can do to make a differ-ence. Increasingly, SITA UK is help-ing customers to make the shift to a circular and sustainable model by providing practical solutions. For more information about SITA UK and its services, visit www.sita.co.uk Design is one of the major culprits of waste and we need to think about how we can design products for their whole lifecycle Stuart Hayward-Higham, technical development director, SITA UK, is responsible for technical and policy innovation, and has worked in the recycling and waste industry for almost 30 years In partnership with SITA UK, Keep Britain Tidy has begun a national study to fi nd new ways of improving recycling rates in Eng-land’s major cities. Recycling in England is fl at-lining and, while some areas of the country are reaching recycling rates near-ing 70 per cent, other areas are only achieving 15 to 20 per cent. Among those authorities with the lowest recycling rates, many have densely populated urban areas, which pose a signifi cant challenge to eˆ ective recycling. England is also facing the danger that it won’t achieve its EU 2020 recycling target of 50 per cent. However, despite this, the govern-ment has withdrawn funding and focus from sustainable resource use, placing its future in the hands of the waste management industry. Keep Britain Tidy is looking for new and innovative ways to boost recycling rates in England’s cities by asking members of the public to come up with real-world solutions with the help of waste industry experts. Volunteers from London and Man-chester, none of whom have any prior knowledge of the waste and recycling industry, are working alongside indus-try experts to find practical ways to encourage people to recycle more. The solutions devised by these groups will then be tested by a wider independent public poll of more than 1,000 people, and the outcomes of both studies will be presented in a report and short fi lm in June. Keep Britain Tidy’s campaigns and communications director Andy Walker says: “Tackling waste is something in which the public has a big role to play, but all too often debates about recycling do not include ordinary people. “These sessions are an opportunity for the man, or woman, on the street to have their say on an important issue that aˆ ects us all.”
  • 5. MANAGING WASTE MANAGING WASTE TIME FOR RETURN OF OLD-FASHIONED BOTTLE DEPOSITS £££ £££ £££ DENMARK NETHERLANDS 8 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 09 9 One of the most effective means of diverting useful resources from waste is the introduction of a bottle deposit scheme, writes Felicia Jackson BOTTLE DEPOSITS ȖȖRecycling glass can save 80 per cent of raw materials mined and, with recycled aluminium saving 95 per cent of the energy it takes to make new aluminium, the impact in terms of energy costs and CO2 emissions can be considerable. Sweden offers a world-leading example of how to deal with waste from drinks bottles and cans. Operated by Returpack, a recycling company co-owned by the drinks companies and brewers in Sweden, the Swed-ish deposit return scheme sees a small deposit added to the cost of drinks which is refunded when the container is returned. Pelle Hjalmarsson, chief executive of Returpack, says a key element of the system is that it was introduced and managed by the different stake-holders working together. “Eve-rybody had a very high interest in creating a well-functioning deposit system,” he says. Implementation of the scheme has resulted in recycling rates of more than 90 per cent of its drinks containers. These are then made into new containers or, in the case of some of the plastic bottles, into clothing, bags and other goods. There can be difficulties in the deployment of such a scheme, especially if there is push-back from retailers or producers. Clearly the ability to make manufacturers, fillers, packers and retailers work together has a critical role to play. In Britain, disagreements among the stakeholders about where the on-cost of recovery should be placed resulted in a compromise in UK packaging legislation. The legislation sets percentage targets for the recovery of card-board, glass, plastic and aluminium, and companies within the supply chain need to report a number of certificates or producer responsi-bility notes (PRNs) to regulators representing each year’s targets. This shares the responsibility for recycling throughout the sup-ply chain, rather than encouraging co-operation, while at the end of the chain waste management companies had no specific obli-gation for recycling. Effectively it created a market for PRNs which, combined with rising landfill tax, meant a greater push towards recycling, but not a holis-tic approach to reclamation. There are three elements to the value of a bottle deposit scheme: the value of the materials retrieved themselves; fees to industry; and the value of unredeemed deposits. Allan Barton, Arup’s director and global leader, resources and waste management, says: “The beauty of reward schemes is that some people will act, some people won’t and that fraction will fund the programme.” Mr Hjalmarsson admits that one of the biggest challenges can be consumer behaviour, especially outside the home. But, he says of the Swedes: “It’s in our blood to make deposits.” In the UK, as Will Griffiths of the Carbon Trust points out: “The challenge is con-sumer engagement and incentivis-ing them sufficiently.” In Europe alone, more than 100 million people live in coun- Litter rates would fall, our streets would be cleaner and recycling would increase dramatically tries with bottle deposit schemes, including Norway, Denmark, Fin-land and Estonia. Rauno Raul, chief executive of the Estonian Deposit System, says: “The advan-tage of a deposit system, compared to other alternative or parallel sys-tems, is the fact that the monetary incentive – the deposit sum – guar-antees very high collection rates. Deposit systems usually can collect from 80 to 96 per cent of input.” The impact of such a scheme can move far beyond simply man-aging part of the waste stream. A 2010 report by Eunomia, for the Campaign to Protect Rural England (CPRE), demonstrated that a drink container deposit refund scheme (DRS) would greatly reduce litter and increase recycling rates. Running costs of around 0.8p per container would be supported by revenue from unclaimed deposits. Hopes for a UK DRS were hit in 2011 when the government’s review of waste policy identified the high cost of running such a scheme as a barrier to success. The Industry Council for Research on Packaging and the Environment argued that encouraging the use of existing recycling process through kerbside collection would be bet-ter value for money. However, this ignores the importance of behav-iour outside the home. Dominic Hogg, director of Euno-mia, says: “At the moment, council tax payers meet the costs of recy-cling, clean-up of litter and land- RECYCLING WASTE BOTTLES INTO ASSETS Share and discuss online at raconteur.net fill, irrespective of their purchases. But under a drinks container deposit refund scheme, the costs of dealing with beverage packag-ing would be met by industry and by those who forego their right to the refund of their deposit. Litter rates would fall, our streets would be cleaner and recycling would increase dramatically.” Following the victory of the Scot-tish National Party (SNP) north of the border in 2013, Zero Waste Scot-land ran a pilot scheme, which the group is now analysing to see what it would take to expand the project. Iain Gulland, Zero Waste Scot-land’s director, says the SNP wanted to increase recycling rates, as well as the quality of recyclate, and to promote anti-litter cam-paigning. The pilot project con-sisted of ten sites, eight of which were reverse vending and two deposit return. He says that, while the report on the pilot will not be out until later this year, all the schemes were used and recycling rates increased. “Our objective was to look at the impacts and at public accept-ance,” he says. “While there were challenges, the pilot showed that rewarding people does work under certain circumstances.” One of the big unknowns in the Eunomia study for CPRE was a monetary value for the disamenity or adverse impact of litter. A 2013 Eunomia study for Zero Waste Scotland on the indirect costs of litter showed that the disamenity value is higher than had previously been thought and so adds weight to the case for deposit systems. As part of this work, Eunomia explored the links between litter and crime, and the effects of litter on mental wellbeing. Focusing solely on crime, the annual costs attributable to litter, for Scotland, were identified as being up to £22.5 million. For mental health and wellbeing, the study estimated attributable costs for Scotland to be £53 million. While the recycling system in the UK has worked reasonably well, the growing focus on recovering resources has meant that materi-als recovery is happening at many different stages and it can be dif-ficult when one particular stream is removed. Peter Jones, director at Ecolat-eral, says: “The system is work-ing, but it’s crying out for reform. If you’re in the waste industry, it’s no longer economic to put waste in landfill, so the remain-ing options are composting or anaerobic digestion, or thermo-chemical treatment.” Mr Barton, at Arup, adds: “We need an integrated waste strategy that will work on an international scale.” What this means is that schemes such as Sweden’s bot-tle deposit approach could have an impact through reducing one waste stream and encouraging the exploitation of the remain-ing streams with a range of new technologies. Estonia’s Mr Raul concludes: “The initiative has to come from the government side. That was the case in Estonia when the packag-ing and packaging excise law was introduced in 2004. It is very unlikely that producers or retailers would do something really serious in terms of recycling on their own. The state has to introduce and enforce a concrete framework of rules to get real results.” BEVERAGE DEPOSIT MODEL EUROPEAN BOTTLE DEPOSIT SCHEMES SOURCE: ZERO WASTE EUROPE SOURCE: PETCORE EUROPE SOURCE: PLASTICS RECYCLING EXPO SOURCE: RACONTEUR/EUNOMIA WHOLESALERS AND DISTRIBUTION CENTRES STORE POINT OF COLLECTION CENTRAL SYSTEM (FINANCIAL CONTROL) BEVERAGE INDUSTRY CONSUMER MATERIAL FLOW DEPOSIT PAYMENT FLOW GERMANY NORWAY SWEDEN FINLAND ESTONIA CROATIA COUNTRIES/REGIONS WITH AN INSTALLED DEPOSIT SYSTEM FOR ONE-WAY CONTAINERS COUNTRIES/REGIONS THAT ARE IN THE PROCESS OF EVALUATING A DEPOSIT SYSTEM FOR ONE-WAY CONTAINERS PACKAGING INDUSTRY Aluminum and plastic are also the most energy intensive of the three leading container types, each accounting for It is estimated that every UK household uses In the decade from 2001 to 2010, the value of wasted beverage container materials exceeded plastic bottles each year $22bn 47% of the total energy lost when containers are landfilled or burnt RECYCLERS (PROCESSING FACILITY) 500
  • 6. MANAGING WASTE MANAGING WASTE ZEROING IN ON WASTE-FREE LIVING With the government under pressure to hit a 70 per cent recycling target by 2020, more businesses must embrace the environmental – and economic – case for zero waste, writes Mike Scott ZERO WASTE ȖȖSince the dawn of the Industrial Revolution, wherever goods have been made, they have been accom-panied by the creation of waste. “It was just seen as the cost of doing business,” says Forbes McDougall, corporate solid waste leader in the global product stewardship team at Procter & Gamble (P&G). But today, a growing number of companies, including P&G and other global giants such as car-maker GM, are working to ensure that their facilities do not send any waste to landfill. P&G, which makes everything from toothpaste and shampoo to nappies and pet food, has already made 54 of its 160 sites around the world zero waste and plans to have completed the process at 70 plants by the end of the year. The rationale is quite simple, Dr McDougall explains: “Everything you divert from landfill is avoided cost.” With landfill tax soon to hit £80 a tonne, those costs are considerable. P&G believes it has saved more than $1 billion over the last five years by reducing waste. “You have already paid for these materials up front. If you don’t recycle it, you have to pay again to dispose of it,” he adds. Businesses are realising that “they have to be part of a move from a linear economy to a circu-lar economy,” says Alan Knight, sustainability director at Busi-ness in the Community. “There is a change in the business model from disposing of waste in landfills to a focus on resource recovery. “Dumping stuff that is worth money on a planet that is running out of resources does not add up – we have to be smarter in the way we run society,” Dr Knight adds. The move towards zero-waste economies has been driven in part by tougher regulation, such as the landfill tax and EU directives requiring the recycling of cars and electronic equipment, helped by a growing interest in sustainability from consumers. Companies are also more concerned about the increasing scarcity of many resources, their cost and the abil-ity to secure supplies, which these days come from all over the globe, in the face of challenges such as extreme weather events. “Zero waste is about the econ-omy, it’s about jobs, it’s about sav-ings to industry – it’s not just an environmental thing,” says Iain Gulland, director of Zero Waste Scotland, which is charged with making Scotland a zero-waste economy by 2025. The move will create about 12,000 new green jobs in the country, he adds. A zero-waste approach can cut upstream costs and increase rev-enues by locking customers into your service, says David Bent, head of sustainable business at Forum for the Future. “For example, leasing out uniforms instead of selling them would save money for the consumer and vast amounts of resources. Businesses need to find their Dumping stuff that is worth money on a planet that is running out of resources does not add up – we have to be smarter in the way we run society Don’t rubbish the power of waste Instead of resorting to landfill, more waste should be used to power UK energy plants, says Biffa The Climate Change Act 2008 estab-lished a target for the UK to reduce its carbon emissions by at least 80 per cent of 1990 levels by 2050 . It’s a challenging target and one that requires all sectors, including the waste industry, to reduce green-house gas emissions. Reducing methane from landfill sites is one of the waste sector’s big-gest challenges in that regard. And with landfill tax becoming evermore expensive – from April it increases from £72 to £80 per tonne – the industry is seeking different treat-ment options. One alternative is to use more of this active waste – the waste that remains after the recycling fraction has been taken out – as a feedstock for energy plants. Refuse-derived fuel (RDF), as it is known, can be used in a variety of treatment plants, including energy from waste (EFW), mechanical bio-logical treatment, anaerobic digestion and increasingly gasification, to gen-erate electricity and heat. England and Wales currently use about 5-6m tonnes of waste mate-rials for this purpose, but in the UK 19m tonnes is still landfilled, while just 1.5m tonnes (2013) is processed into RDF and exported to Europe where it is used as fuel in Dutch and Scandinavian energy plants. So why are England and Wales only using a fraction of this valuable low-carbon feedstock, and land-filling and exporting the rest? The problem is one of capacity. Here in the UK there are simply not enough plants to deal with the amount of waste produced. The reason for this, according to Biffa Waste Services’ chief execu-tive Ian Wakelin, is the RDF mar-ket’s immaturity – everything from the lack of EFW infrastructure and planning delays for new plants, to a lack of confidence in the business case and hard-to-access finance for new plants. “The economic case for both RDF production and energy production is unproven or at least in its infancy in the UK,” he says. “The challenge is then to secure finance for any facility either producing or using RDF.” Planning delays don’t help, according to Jacob Hayler, an econ-omist at the Environmental Ser-vices Association. “The problem is one of uncer-tainty. Developers have no idea how long it’s going to take to get plants built and any delay adds tremen-dously to costs,” he says. economically and in terms of emis-sions reduction, could be substantial if these challenges within the energy-from- waste sector can be overcome. “There is undoubtedly a strong commercial opportunity for RDF but, as ever in the waste industry, one that’s littered with challenges,” says Biffa’s Mr Wakelin. “It will be interesting to see who wins.” References 1 https://www.gov.uk/government/poli-cies/ reducing-the-uk-s-greenhouse-gas- emissions-by-80-by-2050 2 See link to incineration spreadsheet: http://www.environment-agency.gov. uk/research/library/data/150326.aspx) 3 (See Landfill Tax Bulletin: https:// www.uktradeinfo.com/statistics/ pages/taxanddutybulletins.aspx) 4 Environment Agency 5 From interview with Hayler from the ESA “It’s a chicken-and-egg situation. We are exporting RDF because we don’t have the capacity to use it in this country, but we can’t build a busi-ness case for using it here because we’re currently exporting it.” His solution to unlocking this conundrum is for the government to incentivise the use of heat gen-erated by energy from waste more than it currently does. Energy from waste plants operate at about 20-30 per cent efficiency if they only gen-erate electricity; if they use the heat generated as well, that rises to about 60-70 per cent . This makes them more economi-cally viable and able to compete with European energy-from-waste plants, which are often subsidised by governments and can thus charge a lower fee than their UK counterparts for taking RDF waste, ensuring a regular feedstock supply. Within the increasingly competitive waste industry, the rewards, both Refuse-derived fuel can be used in a variety of treatment plants Technological developments mean that metals can be extracted from street sweepings and plastics from sewage sludge, which can also generate heat and electricity. “Ultimately, we’re going to need an economy where we don’t burden the natural world with waste,” says Forum for the Future’s Mr Bent. “We don’t need every company to be zero waste; CASE STUDY we just need each company to be able to sell its ‘waste’ as ‘food’ to another company – an open-loop to experiment and invest in new business models where each link round the chain benefits from passing on stuff to the next user, so that nothing goes to waste.” NOSE TO TAIL IN PARK LANE A commitment to eliminat-ing waste is not necessarily what you would expect from a glitzy hotel – but that is what is happening at the Lancaster London on Park Lane, one of the capital’s most glamorous addresses. “We understand that as a hotel and food business, we have a massive carbon footprint,” says Eibhear Coyle, executive assistant manager for operations. “We wanted to reduce our impact.” The impetus came about when the hotel kitchens underwent a refit. “It was a massive investment and we wanted to make it sustainable for the next 25 years,” Mr Coyle adds. “One of the first things I did was to remove the waste compactors because they made it harder to change the culture among the staff. It is difficult to change the culture because zero waste means more work for staff, but people have bought into it.” One of the biggest con-tributors to the hotel’s waste was bottled water, economy. Companies need which used to result in 50,000 plastic bottles being thrown away every year. Now the hotel filters and bottles its own water in reusable bottles. In addition, Lancaster London asked its suppli-ers either to deliver food in crates that can then be reused or to decant sup-plies in the loading bay to reduce packaging waste. Another driver was a desire to achieve a rating from the Sustainable Restaurant Association. Front of house, the hotel’s restaurants and banquet-ing facilities adopted a “nose-to-tail” approach that reduces food waste by using “forgotten” cuts of meat that are often neglected. Not only did this reduce costs and the carbon foot-print of the dining facilities, but it has also become a selling point, particularly on the banqueting side. “The majority of our cus-tomers are big corpora-tions that have their own corporate social respon-sibility policies and this aligns with their values.” place in an economy which tries to squeeze the most value out of each atom.” The other aspect of zero waste is to rethink how products are designed and produced so they retain some value once they come to the end of their primary use, says Alban Foster, a director at SLR Consulting. “Zero-waste thinking demands that a business continually considers better ways of managing any materials that have the potential to be ‘waste’,” he says. Waste water Page 15 This can range from recycling aluminium drinks cans so they can be used to make new cans, to turning waste from one produc-tion process into a totally new product. P&G, for example, is turning toothpaste waste into jewellery cleaner, while UK com-pany Knowaste recycles nappies, turning them into plastic that goes into products from bike helmets to park benches and even flood defences. The process also produces fibre that is used for eve-rything from cardboard packaging to bricks. “Nappies never rot. They would sit in landfill for at least 500 years,” says Paul Richardson, business development director at the company, which is hoping to build five to ten processing plants around the country that would be capable of dealing with some 40 per cent of the 1.1 million tonnes of nappies and hygiene products cur-rently sent to landfill every year. Even waste management com-panies, which you would think is the one sector of the economy that would not embrace the zero-waste concept, are getting in on the act. “Our focus has changed from getting waste out of cities and into landfill to what materials we can find that have value,” says Richard Kirkman, technology director at Veolia. 10 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 11
  • 7. MANAGING WASTE MANAGING WASTE 2 Time for change The waste and business sectors need to work together in new ways if they want to exploit the commercial opportunities within the “circular economy”, says Paul Cox, managing director of Reconomy 70% of Reconomy's core business is providing waste solutions to the construction sector 1,500 unwanted beds from Travelodge have been refurbished for use by charities such as the British Heart Foundation 65% of the recycled beds were suitable for reuse, generating £57,000 for the British Heart Foundation the exception. Until then, we and oth-ers are moving into prime position to take advantage of the many business opportunities afforded by what we hope will be the growing take-up of circular economy principles. With a number of notable excep-tions, the vast majority of global production is deeply unsustainable. It’s a “take-make-dispose” linear system that generates staggering amounts of waste and causes sub-stantial environmental damage. Increasingly, businesses are look-ing at alternatives, one of which is the “circular economy”. This takes its inspiration from nature – that human systems should work like organisms, processing biologi-cal and technical inputs, which can be fed back into the process, and reused again and again. Zero waste is a key component of this process. It’s not just a theory. There are businesses out there applying cir-cular economy principles, but they tend to be large corporates rather than smaller companies. If closed loop is achievable, why is it not more widespread throughout the busi-ness community? Part of the problem is the frag-mented nature of the waste sector. This makes it hard for companies to offer national solutions to the larg-est waste producing sectors in the UK, including construction, which comprises more than 70 per cent of Reconomy’s core business. Progress towards circular econ-omy business models is happening, but a more collaborative approach between partners is required to make it more commonplace. There is a lack of understanding, skills and knowledge of how com-panies can work together to achieve this aim. Businesses can overcome this by outsourcing their recycling and waste operations to a national provider which uses local supply networks. This reduces companies’ operational burden, allowing them to focus on waste reduction, re-use and minimisation strategies. Reconomy’s collaborat ive approach enables us to come up with innovative ways to work with clients. As part of our recent part-nership with Travelodge, to date we have collected about 1,500 unwanted beds from the hotel chain and refurbished half of them for use by charities, such as British Heart Foundation. Not zero waste, but a step in the right direction. Zero waste was, however, a condi-tion of Reconomy’s waste manage-ment work at the Olympic Aquatic Centre. We sent all waste that couldn’t be recycled to Northumber-land Wharf, east London, from where it was transported by barge along the Thames to a refuse-derived fuel facility. The constraints of the Olym-pic Park site and limited waste trans-port options meant we had to come up with a creative solution. Infrastructure challenges aside, the business case for the circu-lar economy is clear – low or no waste means lower landfill costs. But judging by the few examples out there, this doesn’t seem to be enough of a driver. In the end, it’s the responsibility of both clients and the waste sector to come up with inno-vative ways to reduce waste. To move towards a circular econ-omy, organisations need to break away from the traditional ways of doing things and explore new cross-sector partnerships with dif-ferent clients. Waste operators should be pro-viding solutions for companies that bridge the skills and knowledge gap within the sector, and by work-ing together, aim to reduce waste as much as possible. If this happens, it’s likely that compa-nies such as Reconomy will become the rule rather than, as they are now, COMMERCIAL FEATURE Increasingly, businesses are looking at alternatives, one of which is the ‘circular economy’ LIVING IN A MATERIAL E-WORLD Environmental, cost and supply pressures are bringing about a shift in design priorities to avoid expensive waste of materials, notably in the electronics sector, as Jim McClelland reports DESIGNING OUT WASTE ȖȖGold, silver and platinum will be among precious metals worth £1.5 billion purchased unwittingly in the UK between now and 2020. This hoard of hidden treasure will be scattered throughout ten mil-lion tonnes of electronic products bought by organisations, compa-nies and private individuals alike. Electronic, digital and mobile technologies are big business. The marketplace is competitive, evolving constantly and rapidly. Sales are strong, not least because products date and break. Share and discuss online at raconteur.net As a result, product and mate-rial recovery, recycling and reuse is also an area of rising concern – and opportunity. Waste electri-cal and electronic equipment (WEEE) is now the fastest growing waste stream worldwide, with an estimated two million tonnes dis-carded in the UK every year. In response, new European Union WEEE regulations com-ing into force this year seek to encourage producers to consider the environment at disposal and end of life, designing out waste and adopting cradle-to-cradle (C2C) responsibility for products. What will be the effect of these legislative changes? The new obli-gations carry potential implica-tions for all stakeholders and life-cycle stages, from design, though manufacture, to consumption and finally recovery. How will the market react? “The majority of rethinking of e-waste is driven by clear and con-sistent regulatory requirements, primarily emanating from the European Commission,” explains Will Schreiber, co-author of the WRAP report Reducing the envi-ronmental and cost impacts of electrical products, and associate director at Best Foot Forward. “Whether televisions or washing machines, the overall trend in the electrical sector has been to make products less repairable and have shorter lifetimes,” he says. “The changes that we see in response to legislation, however, are starting to have an effect on the business mod-els some companies are developing by reducing hazardous substances, offering longer warranty periods or providing buy-back options.” This emerging trend will ask questions of product designers, a community that has been relatively slow to respond to the waste issue creeping up the corporate and regulatory agenda, according to designer and head of sustainability at Seymourpowell Chris Sherwin. “I don’t think designers have considered the waste and disposal stages of products anywhere near as much as they should,” he says. “Most of what we do in design processes is to become the cham-pion of the consumer experience. The main problem with that is it misses off the front and especially the back-end aspects. We need a broader, more holistic approach.” The conditions for change are gradually becoming manifest in electronics markets, with a com-bination of contributory factors in evidence, he says. “It is no secret that carbon/energy has been the main driver for the electronics sector, but companies are turning more to waste and resource con-sumption, driven by concepts like C2C, the circular economy, rising materials costs, better recycling and recovery infrastructure. It seems more of a priority in design now.” Momentum in waste markets still seems more push than pull though, as Mr Schreiber describes the dynamic. “Unlike energy con-sumption, which has direct con-sumer benefits and therefore demand, material control and optimisation are mostly driven by cost savings and regulations for critical raw materials, such as rare earths, Dodd-Frank [regulated] conflict minerals,” he says. “The biggest proponents of change have been the brands themselves setting a clear strategy. The problem is that few organisations have actu-ally looked at waste as a business opportunity rather than a burden.” This limited response may well be explained in part by the weak signals being received in general from a customer base typically still stuck in consumer mode, as Adam Read, practice direc-tor – waste management and resource efficiency, at Ricardo- AEA, explains: “Unfortunately, the drive of consumerism is a little like the Titanic – difficult to slow, almost impossible to divert and ultimately destined for failure. Although consumers may not be changing on their own, with strong government leadership, responsi-ble manufacturers and increasing public awareness that recycling is good, but waste prevention bet-ter, we can expect to see a shift in direction in the next decade or so.” Are we nearing a tipping point? Sophie Thomas, co-director of design at the RSA and one of the founders of the Great Recovery Project, reimagining products and material flow cycles, seems to think so. She counsels though that things could yet go one of two ways, with the waste sector “either on the cusp of something great or the edge of a cliff”. Dr Read concludes that breaking traditional take-make-waste para-digms depends on a clear business case emerging on the supply-side and a circle more material than virtuous. “Ultimately, we are fac-ing significant resource risks in the electrical products world, from rare-earth metals in particular, so price will continue to increase as scarcity worsens,” he says. “This will drive innovation in product design and processing, includ-ing more closed-loop solutions where electrical products are never owned, just leased/rented from manufacturers, thus ena-bling them to control the supply of increasingly valuable materials.” For all the virtual community and cloud computing advantages afforded us by the latest electronic and mobile technology, the means to these online ends are still very much grounded in physical com-modities and mineral properties. Paradoxical as it might seem, we are living in a material e-world. Motherboards from Panasonic home appliances are recycled in Kato, Japan With strong government leadership, responsible manufacturers and increasing public awareness that recycling is good, but waste prevention better, we can expect to see a shift in direction in the next decade or so CASE STUDY THIS YEAR’S MODULE IS A PHONEBLOK There are now more iPhones sold every day worldwide than babies born and more mobile devices on Earth than people. Since the first call made on a 23cm-long 1.1kg Motorola in 1973, the accelerating rate of obsoletion means an average US cellphone is now kept for just 18 months. Despite leasing initiatives, cashback offers, drawers of “retired” kit, plus some reuse and recycling, global e-waste mountains are growing at a rate in excess of ten million mobiles a month. For innovation and disruptive technology to make a successful start tackling mobile-related resource consumption and waste, it is wrong however to assume size matters. As Phonebloks founder Dave Hakkens explains: “To tackle a big problem, you do not necessarily need a big solution. With the emerging technology empire soon to embrace the “internet of things”, even one solution – such as a mobile phone – to just one part of the bigger electronics problem still represents something of significance and starts the market shift to modular thinking.” Phonebloks launched last year via viral video and “crowdspeaking” social media, campaigning to demon-strate the mass-market appeal of modular and attract commercial production partners. Billed as “a phone worth keeping”, Phonebloks challenges the notion that electronics are not designed to last. A collaborative open-platform venture, the concept handset comprises detachable blocks – providing a processor and storage capabilities, camera and screen functions, for example – all connected through pins on a base. The modular nature allows easy upgrading of components. This same designed-in interchangeability also facili-tates customisation, described by Mr Hakkens as a demand priority identified in market research. “Talking to a diverse mix of technology users around the world, with different priorities and situations, the first rule of phone design we learnt is that there has to be more to a mobile than just battery life and megapix-els,” he says. “For some owners, being able to meas-ure diabetes indicators or monitor a heartbeat features much higher up the agenda than camera capability. Any solution that aspires to become universal must cater for the particular – customisation is key.” It is important for marketability that users can person-alise purchases with custom features and so invest in a sense of ownership, choosing blocks they want and supporting brands they like. Coming full circle, Phonebloks has now teamed up with Motorola, raising the prospect that modular might just answer the call for more sustainable mobile tech-nology begun four decades ago. 12 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 13
  • 8. MANAGING WASTE MANAGING WASTE EXPLOITING THE GREAT RECOVERY LIQUID ASSETS OF EARTH’S RESOURCES Once considered a source of pollution, waste water now has fresh potential, writes Sarah Murray WASTE WATER ȖȖWith global water stress an increasing worry to companies, governments and others, atten-tion is focusing on how to conserve this precious natural resource. However, as materials scarcity becomes more evident, another question is now on the lips of cor-porate leaders and policymakers – what value can be extracted from waste water? Of course, part of the challenge is to prevent water from being wasted in the first place. The oil industry, for example, generates large volumes of waste water. “They separate the oil and water, and inject it back into a salt water disposal well a mile underground and it’s never used,” explains James Wood, chairman and chief executive of US-based ThermoEn-ergy. Share and discuss online at raconteur.net “That’s fine where you have enough water. But it’s not so good in west Texas, where they have very bad drought conditions.” ThermoEnergy’s flash vacuum distillation technology is a phys-ical- chemical process that uses temperature and reduced pres-sure to separate chemicals, metals and nutrients from waste water. This technology, argues Mr Wood, could be used to turn the waste water produced by the extractive industries into water that could be used by farmers, particularly in areas of drought. However, waste water contains rich seams of chemicals and min-erals, from nitrogen and phospho-rus to propylene glycol and heavy metals. Once viewed merely as a costly or even toxic problem to be dealt with, waste water and the materials it contains are increas-ingly being viewed as a means of creating value. Nitrogen and phosphorus, for example, can create purification and algae blooms in waterways. Yet they are also valuable materials in the manufacture of fertiliser. For this reason, Vancouver-based Ostara Nutrient Recovery Tech-nologies has developed a way of recovering phosphorus and nitro-gen from municipal and industrial waste water, and transforms them into fertiliser. “The technology is very much geared towards making a market-able product,” says Phillip Abrary, Ostara president and chief execu-tive. “We’ve changed our mindset from seeing these things as a source of pollution to developing technologies that can take them out and turn them into something with the same or greater value.” Many of Ostara’s clients are municipalities for whom the appeal is that they are able to tackle pollution on several fronts. While the technology enables the cleaning of waste water, the The myth that our Earth can provide the human race with unlimited natural resources has been well and truly busted, says Sophie Thomas Sophie Thomas is co-director of design at the RSA and project director of The Great Recovery programme OPINION ȖȖThe rising cost and restricted supply of materials that go into making the products we use every day is creating a global race for sup-plies of oil, gas, water, metals and minerals, and fuelling geo-political conflicts around the world. And yet more than 30 tonnes of waste are produced for every one tonne of products reaching the consumer, 90 per cent of which are thrown away – mostly into landfill – within six months of purchase, according to the World Economic Forum. This linear model of “take-make-dispose” is lending new meaning to the concept of fast-moving consumer goods and is throwing up major economic, social and envi-ronmental challenges. Ever since the Industrial Revolu-tion, businesses have pursued the model of “more, faster, cheaper”, but now, with growing extraction costs, increasingly volatile markets and the spectre of climate change upon us, it is time to rethink our basic systems of demand and sup-ply, manufacture and disposal. The Great Recovery project was born at the RSA in 2012 in response to some of these global pressures. Along with my RSA co-director of design Nat Hunter, I set out to dis-cover what role design could play in the re-programming of our linear methods of production in order to achieve something altogether more circular, a system where products are continuously reused, repaired or reprocessed. As a communications designer for many years, experience had taught me that much of our waste was, in essence, a design flaw. European Commission estimates show that more than 80 per cent of a product’s environmental impact is deter-mined at the design stage, largely through a lack of understanding, an uncaring brief and the lack of incen-tives to do anything differently. The Great Recovery set out to challenge the case for “business as usual” by providing a space in which designers can come together with policymakers, manufactur-ers, academics, waste managers, chemists, retailers and consumers to understand the challenges, and co-create the new processes and products that will be needed in a circular economy. Over the last 18 months, we have been building these collaborative networks and using the practi-cal lens of the design industry to focus on some of the problems and opportunities involved in “closing the loop”. Our programme of workshops and events set in the industrial landscapes of recovery and recy-cling facilities, disused tin mines and materials research labs has brought people from across all sec-tors to participate in “tear down” and “design up” sessions. By literally pulling products off the recycling pile and taking them apart to understand how they are currently designed, manufactured and disposed, and then trying to redesign and rebuild them around our four design models for circular-ity, we learnt some valuable lessons: »» The role of design is crucial to circularity, but very few designers understand or think about what happens to the products and services they design at the end of their life; »» New business models are needed to support the circular economy; »» The ability to track and trace materials is key to reverse engi-neering our manufacturing pro-cesses and closing the loop; »» Smarter logistics are required, based on better information; »» Building new partnerships around the supply chain and knowledge networks is critical. This first phase of work also sup-ported the Technology Strategy Board, which has invested £1.25 million into a range of feasibility studies proposed by business-led groups and collaborative design partners, through its New Designs on a Circular Economy competition. The inaugural 2014 Resource exhibition sees the launch of the next phase of work for The Great Recovery in a two-year programme that will bring together material-science innovators, design experts, leading manufacturers, and cru-cially, end-of-life specialists to explore the relationships between design, materials and waste. Our growing “re-materials” library will be a tangible way for people to experience the innova-tions and challenges associated with circular-economy thinking: we may have efficient recycling facilities to reprocess certain mate-rials, for instance, but how are we innovating to create longer-lasting products or redesigning business models for service or leasing? In a move to nurture disruptive thinking across the network, we will be developing short-term immersive design residencies that can set up inside recovery facilities around the UK. The design teams will be there to observe and expe-rience the complexity of recovery systems, and to help inform think-ing around current waste streams and new product designs. As well as building our online platform and expanding our net-work with events and investiga-tions, we will be establishing the first innovation hub in central London. The hub will be a physical focus for the exchange of ideas, prototyping and experimentation, and will also host bespoke business workshops and consultations. The Great Recovery is part of the Action Research Centre at the Royal Society for the Encourage-ment of the Arts, Manufacture and Commerce (RSA) and is supported by the Technology Strategy Board With growing extraction costs, increasingly volatile markets and the spectre of climate change upon us, it is time to rethink our basic systems of demand and supply, manufacture and disposal industries such as agriculture, chemicals, paper production and textiles. With demand for raw materi-als rising, along with the price of these commodities, more of these kinds of technologies are likely to emerge. “As a growing population around the world, we need more of the things that we’re consuming and discarding – that’s a continu-ous trend,” says Mr Abrary. “So a sustainable source of materials and basic elements is key.” Often the extraction of materials from water is driven by legislation primarily designed to conserve water, preserve clean water or safely dispose of waste water fertiliser Ostara produces with the recovered phosphorus and nitrogen is a slow-release product that, because it does not dissolve in water, prevents the run off of chemicals into surrounding rivers and waterways. Often the extraction of materi-als from water is driven by legis-lation primarily designed to con-serve water, preserve clean water or safely dispose of waste water. ThermoEnergy, for instance, developed its waste water treat-ment technology in New England after the introduction of federal standards for drinking water. The legislation – the National Pollutant Discharge Elimination System – requires a disposal per-mit for any water being put into a sewerage system. In New England, with a vibrant metal-plating industry, the legis-lation created demand for tech-nology that could clean dissolved metals, such as chrome, nickel and zinc, from the water these companies use in the metal-plating process. However, a second benefit of ThermoEnergy’s technology has emerged. “The metal-plating industry now uses this machine to recover metals they otherwise would have thrown away,” says Mr Wood. Another use is in extracting gly-col used in the de-icing fluid that is sprayed on to planes at airports during freezing weather. “You have this flow back of water, from which they look to recover the chemicals because they are valuable,” he says. Another extremely valuable com-modity that can be extracted from water is alginate. In the Netherlands, Delft University of Technology and a consortium of partners have developed Nereda, a low-energy technology that makes minimal use of chemicals to extract alginate from waste water. The alginate is currently used in food and medical products, but could also potentially be used in 14 raconteur.net twitter: @raconteur raconteur.net twitter: @raconteur 15