RD RDF Exp xport, Brexi xit and UK Plant Capacity Mark Terrell - - PowerPoint PPT Presentation

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

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“ 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

An Andusia Ti Timeline

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2012 2013 2014 2015 2016 2017 2018

Andusia established First contract signed with European Plant Doubled supplied tonnage No 1 Independent exporter in the UK 750,000 tonnes supplied for recovery 900,000 tonnes supplied for recovery 1Millionth Tonne

1 1 Millionth To Tonne

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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

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Ex Export Market

• RDF tonnage has appeared to plateau
• 2016 & 2017 - 99.7% difference
• Export not going anywhere – 2018 the same??
• UK expansion is required to cope with demand

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• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2014 2015 2016 2017 2018

Export Volumes of RDF/SRF

2014 2015 2016 2017 2018

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
• ur own waste
• RDF still critical

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Br Brexit on the waste market

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Br Brexit Timeline

• 2018 : Current Situation
• 2019 : BREXIT
• 2021 : Transition Period
• Future : Perceived risk

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2018 Now 2019 2020 2021 Brexit deal to be announced New wave of WTE plants Post EU period Transitional period

Br Brexit Issues

• A number of perceived risks
• Demand will still be there
• We need each other

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Exchange rate

• Change costs for RDF

Tariffs

• Taxing imports
• Increasing cost of RDF

Customs controls

• Slowing down movements
• Making export more complicated

Environmental standards

• Requirements of how waste is managed
• Additional treatment

Ex Exchange Rates

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Brexit Referendum Low point 1.08

• Exchange rate fell massively since Brexit
• Has the low point been found?
• Stabilisingin the last 6 months

Ta Tariffs

• Negative priced – RDF
• Tariffs highly unlikely
• European plant can reduce price
• Market will bear the cost

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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

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En Environmental Standards

• UK to follow EU standards
• Commitment from Government to do this
• Framework of legislation in place
• No perceived issues

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Ot Other Drivers Ou Outside of Europe

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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

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Wh What does the UK new w infrastructure hold?

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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
• ver capacity
• North East of England
• Yorkshire
• Avonmouth
• Planning permission for new plants here

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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

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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

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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?

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Ag Aggregator model

• What we do is”
• Taking the risk in the supply chain
• Enabling SME to reach higher
• Enabling EfW to reach lower

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• No. of supply contractors

EfW Supply Contract

Andusia (Aggregator)

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

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Th Thank you Qu Questions?

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