Circular Economy Conference

Horsens, Denmark

Industrial Symbiosis:Positive Action for Green Growth

Peter LaybournChief Executive

International Synergies Limited

29th November 2012

Contents

1. What is Industrial Symbiosis?2. Commissioner Potočnik and IWCAIS 3. National Industrial Symbiosis Programme (NISP)4. Innovation5. Recent Policy Activity6. International Growth 7. New Applications8. Concluding Remarks

1. What is Industrial Symbiosis?

What is Industrial Symbiosis?

• Numerous academic definitions...

In essence: • Industrial symbiosis is a systems approach to a more sustainable

and integrated industrial economy that identifies business opportunities (often through innovation) to improve resource utilisation including materials, energy, water, capacity, expertise and assets

Elements of Industrial Symbiosis

•Network of diverse organisations

•Fostering eco-innovation and long-term culture change

•Addresses the market failure of information

•Yielding profitable transactions in:−Novel sourcing of inputs−Value added destinations for non-product outputs−Improved business and technical processes

Lombardi & Laybourn, 2012, Journal of Industrial Ecology 16(1):28-37

Illustrative Models of Industrial Symbiosis

organic facilitated

local

global

IP

city

region

national

Styria

China

Models of Industrial Symbiosis

Differ in...

• Lifetime/Duration• Driver/Initial impulse• Role of facilitation• Scale

But share...

• Economic, environmental and social benefits• Cross-sector engagement

2. International Working Conference

on

Applied Industrial Symbiosis

(“Positive Action for Green Growth”)

• Johnson Matthey, Alstom, Toyota, Ricoh, GIZ, URS Corporation, TATA, Dong Energy, Veolia, Landmark, Plastics Europe, Befesa Civils, McKinsey, HSBC, Noble Foods, TESCO and Birmingham City Council

• DG Enterprise (Commissioner Potočnik), DG Environment, EEA, UNEP, World Bank, Committee on Climate Change, John Elkington, OECD, Invest Northern Ireland, CBI and Forum for the Future

• Including practitioners from the UK, Australia, Brazil, China, Denmark (Kalundborg Symbiosis), Hungary, Korea, Mexico, Nigeria, Turkey and the USA

•Climate Change and Energy Security

•Eco-Innovation and Green Growth

•Materials Security

•Regional Economic Development

Four Global Themes

Industrial Symbiosis has proven ability to deliver on these agendas

3. National Industrial Symbiosis Programme(NISP)

NISP: The Pathway To A Low Carbon Sustainable Economy

‘The Pathway To A Low Carbon Sustainable Economy’ charts NISP’s progress since becoming the world’s first national industrial symbiosis programme in 2005

It sets out the compelling argument that the business led NISP has the potential to fulfill a key role in the transition towards a low carbon sustainable economy

Available to download at:http://www.international-synergies.com/images/pdfs/NISP_The_Pathway_to_a_Low_Carbon_Sustainable_Economy.PDF

NISP (England) Delivered Outcomes April 2005 - March 2012

METRICS In Year Benefits* Lifetime Impact (Max 5 year)

Landfill diversion 9 million tonnes 45 million tonnesCO2 reduction 8 million tonnes 39 million tonnes

Virgin material savings 12 million tonnes 58 million tonnesHazardous waste eliminated 0.4 million tonnes 2 million tonnesWater savings 14 million tonnes 71 million tonnes

Cost savings €243 million €1.21 billion Additional sales €234 million €1.71 billionJobs 10,000+ ???Private investment €374 million ???

€40 million investment since 2005*all outputs independently verified

Rate Euro £1 = €1.18

Unit Benefit Realised In Year Spend Lifetime Spend

€1 new income generated for industry €0.02 €0.005

€1 saved by UK industry €0.02 €0.005

1 tonne of virgin material saved €0.48 €0.100

1 tonne of water saved €0.40 €0.080

1 tonne of CO2 reduced €0.73 €0.150

1 tonne of waste diverted from landfill €0.64 €0.130

1 tonne of hazardous waste eliminated €13.74 €2.740

Excellent Return on InvestmentApril 2005 - March 2012

Rate Euro £1 = €1.18

Organisation:Regionally delivered, Nationally co-ordinated

•Began as three regional pilots in 2002/3 and went UK national in 2005•World’s first National Industrial SymbiosisProgramme•Regional practitioner teams across the UK•Investment from UK and regional government(now in transition to a commercial model) •Business-led Programme Advisory Groups (PAGs)•Substantial benefits of a national model

International Synergies’ NISP Process

Practitioners facilitate all

stages of synergy

NISP has circa 15,000 Members

KEY POINTS• All sizes - Multi-nationals, SMEs, Micros, Entrepreneurs • All sectors• All resources• SMEs represent 90% of membership

 Anglian Water Services Ltd

BAE Systems Balfour Beatty

Bombardier Denso Manufacturing Ltd

Diageo Foster Yeoman

HSBC Jaguar Land Rover Johnson Matthey

Michelin Peel Group

RICOH UK Products Ltd SITA TATA

Toyota UK Coal Plc

Veolia

Advantage Waste SolutionAkristos

AnalytichemAngelheart Inc

Arrow EnvironmentalBlendcheck Ltd

Clarkson EnterprisesDinano

EcoideamEnviro (Grimsby)

Facility Water Management John Carson Innovations

Kito Engineering Solutions Manufacturing Production

Solutions Ross Miller Farm

TVLI Waste Check Ltd

Whitby Recycling Services

CORPORATES SMEs MICROS

Workshops

• Facilitating the exchange of information and best practice between businesses

• Tried and tested, interactive business opportunity model

• Typically 50 - 60 organisations in one room

• Can generate 300+ potential synergies from a facilitated ½ day session

Opportunity Mapping

SYNERGie Management System

• On-line project and data management tool

• Information on resource and contact details

• New and stored historic data

• Bespoke report generating capabilities

• Vital support and management tool for practitioners

• Used in nine countries

Facilitated Synergies: Role of Practitioners

• Identify ‘IDEAS’

• Make introductions

• Facilitate negotiations

• Provide technical expertise

• Mine the network for answers and opportunity

• Use their industry expertise and knowledge

• Encourage and accelerate synergy progress

Success Factors

PractitionersIndustrial expertiseLong term relationship building & facilitationMarrying data & expert knowledgeWorking with the regulator and technology providers to ‘enable’ IS activity

Engagement ModelExtensive, diverse networkBusiness opportunity programmeHistory of exemplary performanceDemand pull on innovation

DataQuality NISP data & limited access to regulatory data

Practitioners• Engages with businesses and regulators

• Facilitates synergies• Delivers workshops

Innovation Managers• Connects industry to universities• Facilitates knowledge transfer• Embeds innovation within the network

Business Champions• Advocate for industrial symbiosis

• Commercial ‘steer’ to the programme• Advice and guidance on delivery

Business Members• Recruited across all sectors• 90% SMEs and Micros• 15,000 in UK alone

Academia• Connect companies to research

• Supports post-graduate learning • Valuable resource for Practitioners

The Constituents of an Industrial Symbiosis Network Managed by International Synergies

Manchester Economics Report:Economic Impact Assessment (2005 - 10)

• Total Economic Value Added €1.8bn to €3.0bn, giving an investment multiplier of between 53.2 - 88.6

• €175 million to €290 million to Treasury in direct receipts

• Benefit Cost Ratio in excess of 32:1 3:1 considered good by Government and 8:1 excellent by Regional Development Agencies

Manchester Economics Report: Conclusion

NISP, having established the infrastructure to deliver the “symbiosis process” across industry, provides a

strong foundation from which to increase the returns from public investment

The triple line benefits achieved to date provide a compelling case for increased investment in the future

Case Study: A Fruitful Collaboration

Companies: • GrowHow UK (formerly Terra Nitrogen)• John Baarda Ltd

Summary:• Ways of using ‘wastes’ from manufacturing plant to grow tomatoes all year round

Achievements:• 65 new jobs• CO2 reduced by 12,500 tonnes pa• Successful re-use of waste heat• €17 million private investment in region

Ricoh disseminates best practice through NISP

EE best practice dissemination

• Ricoh adopts variable speed drive system- £5k investment brings positive rate of return in less than 8

months- Carbon reduction 50 tonnes per annum

• Best practice disseminated at NISP event to... - 70 UK companies including many SMEs - Technology adopted by GKN with £25k savings per annum and

major carbon reduction

Before: 42 x 400w (single fitting) After: 42 x 120w (single fitting)

Toyota disseminates best practice through NISP

• Toyota adopts energy efficient LED lighting across its facility- 16% reduction in electricity last year • Best practice disseminated at NISP event hosted by Toyota to...

- 40 UK companies including Tesco, Next, Royal Mail and many SMEs- Other companies now installing LED lighting

Welcome to MichelinPaul Kinkead

Environment Manager

File reference : NISP workshop

Author/Dpt: Paul Kinkead EP/ENV Creation date: 27/392010 Classification: D3 Retention: YC+3 Page: 30 /

Reduction in waste to landfill

• Corporate target to eliminate process waste to landfill

• Challenge: difficult materials to recycle• 36 individual waste streams• Use of benchmarking within Michelin• Breakthrough : engagement with NISP to source

creative and cost effective solutions• Access to expert solution providers

File reference : NISP workshop

Author/Dpt: Paul Kinkead EP/ENV Creation date: 27/392010 Classification: D3 Retention: YC+3 Page: 31 /

Reduction in waste to landfill• 97% reduction achieved• Ballymena factory is the corporate benchmark• Corporate targets achieved 18 months ahead of plan

0

1000

2000

3000

4000

2002 2003 2004 2005 2006 2007 2008 2009 2010

Tonnes to Landfill

2009 result was 57T

Joined NISP

File reference : NISP workshop

Author/Dpt: Paul Kinkead EP/ENV Creation date: 27/392010 Classification: D3 Retention: YC+3 Page: 32 /

4. Innovation

Industrial Symbiosis creates the space for innovation to happen

“Innovation occurs at the intersection of expertise, diversity and opportunity driven by making novel connections”

“An environment to promote creative serendipity* through the collisions of thoughts and ideas”

*The Three Princes of Serendip Horatio Walpole

(in a letter to Horace Mann, 28 January 1754)

•Some potential synergies require innovative solutions - new technologies - new applications for existing technologies

•Immediate demand pull on of R&D and technology innovation

•University of Birmingham studies have found a high level ofinnovation in synergies

- 50% involved best available practice - 20% involved new research and development

• NISP is an EU Environmental Technologies Action Programme(ETAP) and OECD Eco-Innovation Exemplar

Technology and Innovation: Eco-Innovation Exemplar

OECD Identifies Industrial Symbiosis as Critical to Growth AgendaOECD has recently declared industrial symbiosis ‘a la NISP’ to be “an excellent example of systemic innovation vital for future green growth”

Product & Service

Production Process

Organisational Boundary

Incremental Innovation Systemic Innovation

Industrial Symbiosis Transforms Individual Businesses: John Pointon & Sons Ltd

•Pre - NISP: animal renderer inputs: carcasses, outputs: landfill, CO2 perception: dirty industry

•Initial NISP stage: animal by-products diverted from landfill tocement industry

•Second stage: improved efficiency of processes

•Third stage: move into bio-fuels utilising more by-product

•Fourth stage: move to anaerobic digestion and grid connection

•Current situation inputs: carcasses, organic residues outputs:energy and minerals

•Vision: clean energy company

5. Recent Policy Activity

Recent European Policy and Action

•Best Practice under the European Waste FrameworkDirective (2009)

•Roadmap to a Resource Efficient Europe (2011)

•Sustainable Industry-Going for Growth & Resource Efficiency (2011)

•European Climate Knowledge and Innovation Community (2012)

•European Resource Efficiency Platform (2012)

Underpinning evidence to support policy:COWI Report (2011)

• Economic analysis of resource efficiency policies; “the National Industrial Symbiosis Programme has the maximum possible score based on economic and environmental benefits amongst 120 policies from 23 countries”

• The report presents evidence to support a European-wide replication of NISP stating, “NISP shows high potential for improving resource efficiency, and the programme could be successfully replicated in every EU Member State”

• “NISP has significant implications for profitability…and provides for a long-term sustainable investment for growth”

Now Introduced into Industrial Policy...

“The new industrial policy update to be launched this week will include practical proposals for industrial symbiosis schemes across Europe”

Commissioner Potočnik, in a speech to the Business Europe Advisory Board and Support Group

October 2012

6. International Growth

Replication…already happening

CountryStatusProjectRegion/State Client

United KingdomOngoingNISPEngland, Scotland, N. Ireland & WalesDefra, Scottish Government, Invest Northern Ireland, Welsh Government

SlovakiaCompleteReducing Production Wasteby Industrial SymbiosisBratislavsky krajERDF

HungaryOngoingNISP HungaryKozep-Magyarorszag, Budapest

European Union Life+Climate KIC

TurkeyOngoingNISP TurkeyIskenderun Bay areaBP

South KoreaOngoingCo-operation on Eco-Park Development

ChinaOngoingTianjin Economic Development Area Industrial Symbiosis NetworkTianjinEuropean Union Switch Asia

ChinaCompletePilot Project – Circular EconomyYunnan ProvinceDefra – Sustainable Development Dialogues

RomaniaCompleteECOREGSuceavaEuropean Union Life+Brazil

OngoingNISP Brazil

Minas GeraisDefra – Sustainable

Development DialoguesAl-Invest

MexicoComplete

NISP MexicoToluca Lerma

Defra – Sustainable Development Dialogues

South AfricaComplete

South Africa Industrial Symbiosis Pilot Programme

Gauteng ProvinceDefra – Sustainable

Development Dialogues

PolandOngoingEUR-ISWroclawClimate KIC

BelgiumOngoingEssenciaBrussels

Other current interest... A question of competitiveness?

• Argentina• Australia• Canada• Chile (starts December 2012)• Cuba• Finland• Italy (Sicily)• Province of Limburg, Netherlands• Western Cape, South Africa

Chinese President Hu Jintao18th Party Congress, November 2012

“We will have a large scale circular economy and considerably increase the proportion of renewable energy resources in total consumption...”

“ We must give prominence to building a resource –conserving and environmentally friendly society...”

Incoming President Xi Jinping is expected to continue this path

Key tasks to introduce a circular economy to China identified as:

• Optimise spatial layout• Optimise industrial structure• Realise zero emissions through supply chain optimisation• Efficient utilisation of resources• Centralised treatment of pollutants• Green infrastructure• Standardisation of administration, operation and

management of parks

China International Green Innovate Products & Technologies Show, 9-11 November 2012, Guangzhou

•International Synergies Limited invited to present

•Ministries of Commerce, Environmental Protection,Science and Technology attended

•Directors from 51 Ecological Industrial Parks (EIPs)

•Industrial Symbiosis seen as key to future developmentof EIPs

•Further meetings early 2013 with TEDA (probably largest EIP

in world) for a multi-province industrial symbiosisprogramme

7. New Applications

Inward Investment

Paper Sludge & Ash

Paper CoWater

Rejected Loads

Incineration

ORMCrestmont

Indigo Waste

Vermiculture

Aggregate Production

Construction

HotRot Organic SolutionsGreenview Technologies

BiogenDonarbon

Waste Paper

Gulf Star OilRevalue Technologies

PlasgranChase Plastics

Screening Materials

Newport PaperIndigo Waste

PearsonsDonarbon

M W WhiteViridor

Shred SecureControl Group

Kelstone RecyclingAnglian Confidential

BywatersMay Gurney

Power

Soil Conditioning

OrganicsPlastics

BHMSutton ServicesGKL Northern

MilbankDickerson Group

Centrico

RTALAlternative Use

PRELMinergy

Advanced Plasma Power

WaterwiseAnglian Water

BettalandFreedom Recycling

AWO BedfordLocalfast

AkristosHanson Aggregates

RTALEco Aggregates

Southfields GroupS Walsh

Tarmac Recycling

Regional Economic Development2011: Birmingham Big City Plan

•Tyseley Environmental Enterprise District

- Framework for Action (May 2011)

•Birmingham’s priorities for Tyseley:“Support businesses and organisations tocapitalise on low carbon opportunitiesand maximise industrial symbiosis”

•International Synergies Limitedcommissioned to produce report(completed October 2012)

Industrial Symbiosis Opportunities for Tyseley Environmental Enterprise District

Two main themes:•Metals recovery (including rare earth metals)•Low-carbon fuels

Three time frames:•Today – both partners and resource flow exist•Tomorrow – technology is known but a partner is missing•Future - innovation potential

Future Vision: Develop an integrated resource recovery system with an innovation centre

Industrial Symbiosis Opportunities Identified for Tyseley

8. Concluding Remarks

How Far We Have Come2004: Industrial Symbiosis as Novelty

“If companies can make use of waste, it will be a big benefit”

Dax Lovegrove

One company’s waste may turn out to be

suitable fuel for another, saysSarah Murray

How Far We Have Come2010: Financial Times Managing Climate Change

2012: Assessing industrial symbiosis’ contribution to

climate change mitigation and energy security

How Far We Have Come2012: Nature Climate Change

How Far We Have Come2012: Energy Delta Institute

What Next?

• Industrial symbiosis has over a period of time has a track record and is recognised as having reduced waste, carbon dioxide, water-use etc and we are just scratching the surface of possibility (demand led)

• Time for industrial symbiosis also to be used to its full potential to contribute to the circular economy through:

− Systemic innovation leading to green growth and pro-active low carbon economic development delivering green jobs

− All of the above can be accelerated by a Pan European Network

Thank you for listening

Peter LaybournChief Executive

International Synergies Limited

t: +44 (0) 121 433 2660dl: +44 (0) 121 433 2667

peter.laybourn@international-synergies.com

www.international-synergies.comwww.nispnetwork.com