RD RDF Exp xport, Brexi xit and UK Plant Capacity Mark Terrell General Manager Andusia Recovered Fuels Ltd
Wh Who are An Andusia Re Recovered Fuels Ltd? Leading the way in RDF solutions . • Largest UK independent exporter since 2013 • Supplying RDF waste across Central Europe and Scandinavia to EfW Plants • Directors have a combined 40+ year experience “ We have worked with Andusia for several years now and they make what can be a complicated process flow seamlessly and operate a highly efficient business. ” UK RDF Supplier Andusia Recovered Fuels Limited 2
An Andusia Ti Timeline 2014 2015 2016 2018 2012 2013 2017 1Millionth 750,000 tonnes 900,000 tonnes First contract Doubled supplied No 1 Independent Andusia Tonne supplied for supplied for signed with tonnage exporter established recovery recovery European Plant in the UK Andusia Recovered Fuels Limited 3
1 1 Millionth To Tonne Andusia Recovered Fuels Limited 4
New Phase of Waste Infrastruct cture Development • We are moving into a new era • Changing UK infrastructure • New UK WTE plants being built • New UK WTE plants being planned • Brexit • Changing many things • Perceived risk • World development • China recycling restrictions • Global consumptions of raw materials Andusia Recovered Fuels Limited 5
Ex Export Market Export Volumes of RDF/SRF • RDF tonnage has appeared to plateau 4,000,000 • 2016 & 2017 - 99.7% difference 3,500,000 3,000,000 • Export not going anywhere – 2018 the same?? 2,500,000 • UK expansion is required to cope with demand 2,000,000 1,500,000 1,000,000 500,000 - 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Andusia Recovered Fuels Limited 6
UK UK Market • Landfill decreasing • New WTE plants being built • But not enough • Even predicting a long way in the future • Not enough treatment capacity to treat our own waste • RDF still critical Andusia Recovered Fuels Limited 7
Br Brexit on the waste market Andusia Recovered Fuels Limited 8
Br Brexit Timeline • 2018 : Current Situation • 2019 : BREXIT • 2021 : Transition Period New wave of Brexit deal to be Post EU period Transitional period WTE plants announced • Future : Perceived risk 2019 2020 2018 2021 Now Andusia Recovered Fuels Limited 9
Br Brexit Issues Exchange rate • A number of perceived risks •Change costs for RDF • Demand will still be there Tariffs •Taxing imports •Increasing cost of RDF • We need each other Customs controls •Slowing down movements •Making export more complicated Environmental standards •Requirements of how waste is managed •Additional treatment Andusia Recovered Fuels Limited 10
Ex Exchange Rates Brexit Referendum • Exchange rate fell massively since Brexit • Has the low point been found? • Stabilisingin the last 6 months Low point 1.08 Andusia Recovered Fuels Limited 11
Ta Tariffs • Negative priced – RDF • Tariffs highly unlikely • European plant can reduce price • Market will bear the cost Andusia Recovered Fuels Limited 12
Cu Customs Co Controls • Possible tougher customers checks • More complicated to export Exports will need to be: • Experienced in exports • Increase checks and balances • Possible additional work Andusia Recovered Fuels Limited 13
En Environmental Standards • UK to follow EU standards • Commitment from Government to do this • Framework of legislation in place • No perceived issues Andusia Recovered Fuels Limited 14
Ot Other Drivers Ou Outside of Europe Andusia Recovered Fuels Limited 15
Ch China Waste Regulations • China has cracked down on plastic imports • Prices for plastic falling • Some plastics there is virtually no options Consequently: • More plastics in general waste • Increase calorific value of waste • Get worse before getting better Andusia Recovered Fuels Limited 16
Wh What does the UK new w infrastructure hold? Andusia Recovered Fuels Limited 17
Pl Planning Permission Required • Very difficult to gain planning where it is required • London and South East • Major cities • Planning in industrial heartland is easier, however there is over capacity • North East of England • Yorkshire • Avonmouth • Planning permission for new plants here Andusia Recovered Fuels Limited 18
Te Technology Selection • Conventional EfW (too large) • Proven – robust • Scale is critical 300ktpa+ • Gasification (good fit for new plants) • New technology for waste – signature plants working already • Progressing well • Scalable - 100-150ktpa • Others – Pyrolysis / Bio-refineries (not suitable) • A long way to go yet Andusia Recovered Fuels Limited 19
10 10 Year - Wa Waste Supply Contract • Fixed price required – with RPI/CPI • Fixed volume – put or pay • Fixed term – bankable – long enough to pay off debt • Waste prices are market driven • Essentially the cost of collecting your bin • Large tier 1 companies will not take large risks Andusia Recovered Fuels Limited 20
UK UK Capacity & Infrastructure • Waste supply contract is critical for new EfW • Banks want low risk • Funders and the market can be poles apart • Is the aggregator model positioned to close this gap? Andusia Recovered Fuels Limited 21
Ag Aggregator model • What we do is” -Taking the risk in the supply chain - Enabling SME to reach higher - Enabling EfW to reach lower Andusia EfW No. of supply contractors (Aggregator) Supply Contract Andusia Recovered Fuels Limited 22
Co Conclusion • Short Term Vs Long Term • Changing landscape – Brexit issues, China, World market • Long term deals offer great value • Experience guide require for the next 5 years • 2021 onwards UK to step up new waste infrastructure Andusia Recovered Fuels Limited 23
Th Thank you Qu Questions? Andusia Recovered Fuels Limited 24
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