Analysis
Food waste specialist ReFood is spending over £60m in infrastructure, including a new AD plant at Widnes and another in Dagenham, as well as the expansion of its existing site in Doncaster pictured above
of poor and inconsistent quality recyclate. Mike Read, head of waste at Grant Thornton, says: “To drive value and high prices, the quality of products needs to be high and the UK is only just gearing up to deal with this. “Those businesses focused on delivering quality products, preferably on a closed loop basis, will reap the rewards,” he adds. CIWM’s Lee agrees that quality will be a priority across all areas of the industry this year.
Key issues include the much anticipated publication of the MRF Code of Practice, export standards and controls, HMRC guidance on low landfill tax rate materials going to landfill, and further action on waste fires and health and safety.
However he adds: “It is easy to make it all about the ‘collection question’ but our sector’s twin remit to protect the environment and put valuable resources back to work means that we need to strive for greater quality in everything we do.”
Opportunity
The way in which the waste sector sees itself and deals with its clients is changing. Biffa Waste Management has now become Biffa Integrated Resource Management, for instance, but it is far from the only company now focusing on more resource use and less waste management.
“The most important trend we are seeing is the changing role of the waste management company, from a relationship built purely on price to one that actively helps clients achieve their waste and sustainability targets,” says James Capel, Simply Waste Solutions’ MD.
Others feel that the landfill tax can drive more food waste away from holes in the ground
“Clients want us to go one major step further and actively help them find innovative ways to reduce their waste. This may seem
Recycling &WASTE WORLD
counter-intuitive, as less waste means less revenue for the waste contractor, but we see this as an essential requirement that creates long term relationships built on mutual co-operation and not just price.”
The concept of a change in waste collection models was included in a couple of major reports into food waste last autumn - one by Carbon Statement and the other by ReFood. “The subsidised cost of mixed waste within a general waste collection, together with the comparable weight of food waste, leaves little incentive to separate and recycle the waste once it has been mixed.
“It is then harder to determine how much food waste is being produced and therefore it becomes difficult to reduce it,” says ReFood regional commercial manager, Dean Pearce.
Questions over the landfill tax This also raises question marks over the landfill tax, which was originally introduced to encourage recycling by making disposal to landfill more expensive than recycling. If heavy bins can be collected for less than the cost of landfill tax, the economic benefit of recycling is lost, argues Pearce.
Others feel that the landfill tax, rising again
this year, can drive more food waste away from holes in the ground. “We were certainly looking forward to 2014,” recalls Neil Grundon, deputy chairman at Grundon Waste Management. “The rise in landfill tax gives customers a solid financial reason to be much more focused on segregating waste, which creates additional opportunities for us. “That’s especially true of food waste. We all know it is second only to glass in terms of weight, and we hope the price rise will encourage more people to segregate food and remove it from residual waste to save them money.
“Of course, it also comes at the right time with our new AD plant [a joint venture with Agrivert] opening in the Spring,” adds Grundon.
ReFood is also investing, with the company spending over £60m in infrastructure, including a new AD plant at Widnes and another in Dagenham, as well as the expansion of its existing site in Doncaster. “We are not alone and there are some 200 AD facilities in the pipeline,” explains Doncaster-based ReFood’s commercial director, Philip Simpson.
“By tackling unavoidable food waste in such a positive way, we are helping to remove
contaminants from other waste streams and unlock billions of pounds of value from all wastes.” However, Simpson feels that England is falling behind Wales, Northern Ireland and Scotland.
The latter has new legislation being implemented this month that includes mandatory separation and collection of food waste for many businesses as well as an eventual ban on landfilling food waste by the turn of the decade.
Following Scotland’s example Dealing with food waste effectively could save the UK economy £17bn by 2020, according to ReFood’s report in November, but governments will need to take the same steps as Scotland. This seems unlikely with Defra taking a back seat on waste policy. “It’s a shame that the government is unwilling to set a
framework for positive change and proactively influence how we deal with waste in the future,” says Simpson. “It is a lost opportunity, but one which we anticipate will be seized by individuals within local government and business with the vision to drive change and reap the rewards.” There is no doubt that with a little bit of the right type of guidance, a bit more direct funding and a clearer policy agenda for the UK as a whole that 2014 could prove to be far more interesting, productive and directional than 2013. Without these it could prove a longer, harder drag for many professional waste and resource managers. However, 12 months is a long time in this sector and there are elections on the way the year after. One thing is for certain; it certainly won’t be boring.
Wish lists
RWW ASKED top industry experts what one change they would like to see in 2014:
“To reform the London Lorry Control Scheme. Banning our vehicles from 9pm-7am means we are competing with rush hour traffic, which is crazy. I think 11pm-5am would be much more sensible,” Neil Grundon, deputy chairman, Grundon Waste Management
“More investment into EfW facilities in the UK, particularly in London and the South East. That would help rationalise gate prices and make it more attractive for waste management firms to use facilities within the UK for waste recovery. “More facilities equals more competition to drive prices down and enables more waste to be treated closer to where it is produced,” James Capel, MD, Simply Waste Solutions
“Some degree of better agreement in Whitehall on the priorities for energy, waste, local government and business growth. “Too many departments have a say yet none of them are thinking in a joined-up way right now. “This really isn’t the best way to use taxpayers’ funds, or to manage the increasingly complex waste management landscape evolving before us,” Dr Adam Read, practice director for waste management and resource efficiency, Ricardo-AEA
www.recyclingwasteworld.co.uk
“For people to start taking pyrolysis and gasification (and indeed other technologies) seriously as part of the waste to energy mix. “These have been overlooked for too long
and present a viable and highly beneficial contribution to waste management and energy production,” Nick Palmer, general manager, DPS Global (environmental division)
“A clear timetable for the phased introduction of a ban on food waste to landfill to come into full force by 2020, allowing industry the time to finance and develop an optimum collection and processing infrastructure. “We believe this simple step will send a clear message that food waste is a valuable resource that should never end up in landfill sites,” Philip Simpson, commercial director ReFood
“I would have liked to have seen a waste prevention plan with more teeth, it’s a missed opportunity as it stands,” Sarahjane Widdowson, principal consultant with Ricardo-AEA
“The mindset of people who continue to litter. This is something that is so easy to deal with - there is no shortage of litter bins these days. “This would allow millions of pounds to be
redirected to the more difficult challenges that face the sector,” Mike Read, head of waste Grant Thornton
January 23 2014 7
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