Introduction to the Waste to Profit Community Network August 12, 2009

David O’Donnell, DOE

Welcome!

Agenda• 9:00-9:15 Networking and Coffee• 9:15-9:30 Welcome & Introduction – David O’Donnell • 9:30-9:45 Success Stories in Innovation and Technology

Adoption• 9:45-10:40 Panel Discussion• 10:40-10:50 Break• 10:50-11:15 Member Updates and Progress Report• 11:15-11:30 Upcoming Affinity Group Meetings and Events• 11:30-12:30 Networking Lunch• 12:00-12:30 Overview of Community Network Process and

Instructions• 12:30-1:00 Participant Introductions• 1:00-1:15 Break• 1:15-1:45 Growing the Indus-Tree Breakouts• 1:45-2:00 Wrap Up

Gross Half Year Impact (January 1, 2009-June 30, 2009)

• 53,105 tons of waste diverted• 12,762 tons in the negotiation phase• 13,012 tons of CO2 eliminated• $5,514,574 in economic impact• 10 jobs created or retained• 23 Synergies completed year-to-date• Average implementation time for synergies this

quarter: 3 months

Cumulative Network Impact (2007-2009)

• 125,000 tons of waste diverted• 90,000 tons of CO2 eliminated• More than $12 million dollars in economic impact• 37 jobs created or retained• Average implementation time for synergies: 8

months

New Membership = New Opportunities

• Since January of 2009, 78 new companies have joined the ranks of Waste to Profit Network Membership. This is a 415% increase in quarterly membership enrollment over the past 10 quarters.

• The Waste to Profit Network has partnered with Chicago’s LIRIs as well as other industry and economic development groups like the CGRC, MVCC, and the ASSE to bring more community network meetings to more communities throughout Chicagoland.

• Over 90% of attendees claim knowledge about regional sustainability initiatives as the #1 reason to participate in Meetings. The #2 reason? More than 90% of companies identified at least 1 opportunity for profitable waste reduction.

Synergy Superlatives

• Longest implementation time- Naylor Pipe, 200 Tons of Submerged Arc Welding Flux recycled (3 years in the making!),

John Czulno, President

• Largest tonnage- Lafarge Cement: more than 50,000

tons!Mitch Nowicki

Synergy Superlatives• Most additional companies engaged:

Cloverhill Bakery, Mike Salazar: more than 10 additional organizations!

• Largest carbon benefit: Schulze Burch Biscuit Company: More than 2000 tons! Jim McBride, Vice President

• Waste to Prophet- The visionary that creates the best new business opportunities through By Product Synergy:

Engineered Glass Products, Phil Gordon

Waste to Profit Green Ribbon Award

The City of Chicago Department of Environment The City of Chicago Department of Environment and Chicago Manufacturing Center do hereby and Chicago Manufacturing Center do hereby recognizerecognize ________________________________________________________________________________________________________For Superlative Participation in The For Superlative Participation in The Chicago Waste to Profit By-Product Chicago Waste to Profit By-Product Synergy Network andSynergy Network and __________________________________________________________________

This 12th Day of August, 2009.This 12th Day of August, 2009.

SignedSigned__________________________________________________________________

Innovations in processing technology creates substantial business growth

Advanced Ground Care Products:• Internal investment of $100,000 created multi million

dollar production capability• New product, a compressed, recycled rubber blade for

snow plows is 100% recyclable,• Closed the loop on City snowplow blade front waste• Eliminated more than 100,000 pounds of CO2 by reusing

plastic

Innovations in energy efficiency technologies create investable savings• Schulze Burch Biscuit Company:

• Identified and implemented a recyclable materials collection

• Diverted more than 1200 Tons of plastic and cardboard from landfill.

• Created a cost savings of more than $82,000. • Reinvested the savings in ongoing sustainability work in

energy retrofits. • Annual energy cost savings of more than $12,000

Raw materials innovation encourages public investment

• Flux Studios:• Received a 2008 IL-DCEO grant of $150,000 to support

process development • Goal: utilize locally available aggregate by products as

feedstock for a green concrete tile line. • 1 Ton of tiles = 2 Tons CO2 eliminated• Home for more than 1 million pounds of unrecyclable

aggregates

Collaboration with AcademiaLibby Allen Augustine

Our climate has changed.

Where do we stand?

On the forefront of the origin of technological innovations and alternative market tools.

material commodities and energy resources

waste

emissions

transformation

The result:

$The promise of capturing significant market value.

For example:

The CleanTech industry is experiencing unprecedented interest from investors, and is poised for sustained growth in the future.

How do we make these opportunities translate to other types of material optimization ?

Increase the innovativeness and visibility of projects through expert collaboration with University systems.

“Participants in research collaboration appear to realize significant benefits, some expected and others unexpected. The most significant benefit realized by firms is an increased access to new university research and discoveries, and the most significant benefits by faculty members is complementing their own academic research by securing funds for graduate students and lab equipment, and by seeking insights into their own research. Reflecting on their collaborative experience, an overwhelming majority of these participants say that in the future they would expand or at least sustain the present level of collaboration.”

Yong S Lee, The Sustainability of University-Industry Research Collaboration: An Empirical Assessment

Something to consider…

Waste creates Profit?

Or

Sustainable Actions create Investment Potential.

Welcome! Let’s get collaborating!

Panel IntroductionKaren Wan

Deepening Collaboration

• Moving into more complex problems • Introducing state of the art technical strategies• Analyzing network results differently• Leveraging regional capacities

WTPN needs expanded partnerships!

Markets and WTPN

• The use of by-product synergy networks as a market driver began with the successful development of the National Industrial Symbiosis Programme in the UK in 2003.

• In 2006, the City of Chicago and CMC developed a public/private funding model for economic development and market development

• Now, looking at a Midwest regional collaboration with EPA Region 5 and 7 support

• Exploring academic partnerships

“…Establishing a framework of perpetual collaboration – multi layered communication in

many forms, connecting with entities both within and across country and organizational boundaries

– is the best first step to help the public sector meet its wide range of constituent needs.”

Source: IBM Institute for Business Value.

Perpetual collaboration – the core capability governments will need.

Knowledgecreation and

sharing

Organization, culture and governance

Personalizedinteraction and

services

Partnerships, intermediaries and exchanges

Source: IBM Institute for Business Value.

Perpetualcollaboration

Collaborative Innovation Network Drivers

Collaborative

Innovative

Social

Environmental

Economic

Case Study:IBM’s Government 2020 and the perpetual collaboration mandate

The future of societies around the world is being shaped by six drivers outside the realm of government control.

1. Changing demographics2. Accelerating globalization3. Rising environmental concerns4. Evolving societal relationships5. Growing threats to social stability and order6. Expanding impact of technology

Source: IBM Institute for Business Value.

Hierarchy of Material Use as a Principle of Growth

Reuse and By-Product SynergyReuse and By-Product Synergy

RefurbishmentRefurbishment

RecyclingRecycling

DowncyclingDowncycling

Energy RecoveryEnergy Recovery

LandfillLandfill

Case Study- UK funding methodology• Landfill fees and taxes fund NISP program• Average funding to impact =$9USD/1 Ton

diverted• Average member impact =~650 T/Member• US public sector’s fluctuating drivers =

fluctuating funding• WTP funding to impact=$5USD/Ton diverted• Average member impact =650 T/Member

Success Factors

• Continually evolving network deliverables• City of Chicago leadership In Climate

Change/Green Jobs• Regional connections• Ongoing strengthening of technical collaboration

model• Engaged member companies• Strong coordination with regional EPA

Future of the Network

• City of Chicago Climate Change Action Plan• Green Jobs• Market Development

• Connection to Renewable Energy markets• Midwest regional alliance• Carbon trading

• National leader in innovative green business collaboration networks

• Enhanced synergy development with new technical partnerships

Our Panelists

• 10:00-10:10 City of Chicago Initiatives- Hanh Pham

• 10:10-10:20 John Paul Kusz, IIT

• 10:20-10:30 CMC interface with Chicago Climate Action Plan

• 10:30-10:40 James Pena, MEEA, Building Operator Certification

Collaboration Execrise

Before We Begin…

• You should have in front of you:

• Everyone should have completed the confidentiality agreement before we get started

• Participant Form: Please fill out and return before you leave

Chicago Manufacturing Center•Established in 1994 to provide small to medium size

manufacturing businesses with best-in-class services and assist economic development

•Illinois 501(c)-3 Not-for-Profit Corporation•Part of the nationwide Manufacturing Extension

Partnership (MEP) network of experts•#1 consulting network in U.S. for small-medium businesses•Wide skill and experience base

•Three core competencies:•Operational Excellence•Competitive Strategy•Policy to Practice

Core Competencies

•Operational Excellence•Make business as usual better•Lean training and implementation to reduce waste•Quality Management Systems (ISO, six sigma) to hold

improvement gains

•Competitive Strategy•Look beyond business as usual•Strategic planning & marketing•Eureka! Winning Ways Growth strategies•Global Benchmarking of Practice-Performance

Core Competencies•Policy to Practice

•How to leverage available tax money•Sustainability initiatives•Waste to Profit Network•Public-Private partnerships•Federal, State, and Local initiatives

Welcome to the place for those who want:

• To be a part of an award winning economic development program with proven environmental and social benefits to your community

• To gain local industry contacts that can benefit your business

• To save money sourcing raw materials for your processes

• To make a profit from your waste!

What We Are

We address Chicago’s sustainability needs by working together with Chicago area companies, institutions and City of Chicago departments to identify and implement by product synergies that not only reduce waste and emissions, but also deliver economic impact.

Who We Are• Members:

• We have over 200 member companies combined in our Innovation and Community Networks

• Funders:• The Waste to Profit Network is a partnership of the

Chicago Manufacturing Center, NIST, the City of Chicago, State of Illinois, and Region V EPA.

• Partners:• We collaborate with other consulting firms, non-profits,

NGOs, Government and Economic Development Groups, and Chicago area businesses and Institutions to implement projects and improve the sustainability of Chicagoland

• We recently launched an Illinois-wide network through our partners at IMEC

COMMUNITY NETWORK PROCESS

COMPANY

COMPANY

COMPANY

COMPANY

WASTESTREAM

ID

&

CATEGORIZATION

MATERIAL SPECIFIC

BREAK OUT GROUP

MATERIAL SPECIFIC

BREAK OUT GROUP

MATERIAL SPECIFIC

BREAK OUT GROUP

NEEDS

OF

INNOVATION

MEMBERS

SYNERGY

SYNERGY

TODAYONGOING ‘09

SYNERGY

SYNERGY

SYNERGY

SYNERGY

SYNERGY

SYNERGY

SYNERGY

How it works: Community Network

• The Waste to Profit Community Network engages any size business in a free half day workshop about sustainability and economic growth.

• To date, Community Network workshops have assisted over 150 companies throughout Chicago. Active members’ data is retained in our database which allows us to identify future opportunities and opportunities outside of meeting attendance. Network team members continue to look for opportunities after workshops are completed.

How it works: Innovation Network

• The Waste to Profit Innovation Network is a fee based network serving companies with large and complex waste streams a desire to collaborate on large scale projects, and engage in dialogue about regional needs with industrial and regulatory stakeholders.

• Innovation Network Members receive in-depth practitioner support on technical assessments, data analysis, synergy creation and implementation and success story marketing.

Why it works: Beyond waste-swapping• Technical Support: WTP Team members work through

difficult synergies to identify innovative applications and opportunities for waste streams

• Business Relationship building: Network events are designed to foster trust and open communication between companies. Confidentiality is protected. Partnerships are inspired.

• Reliability: Unlike one-time waste swaps, WTP focuses on continually available, consistent by products that can be tested to meet manufacturing specifications. WTP focuses on fulfilling long-term supply chain needs, not one-time disposals.

• Documentation: The WTP tracks the social, environmental and economic benefits of by-product synergy, creating a marketable story for companies to share about their commitment to Chicago and the environment.

Hierarchy of Material Use as a Principle of Growth

Reuse and By-Product SynergyReuse and By-Product Synergy

RefurbishmentRefurbishment

RecyclingRecycling

DowncyclingDowncycling

Energy RecoveryEnergy Recovery

LandfillLandfill

Proof it works:

• Year 1:• $4.5 Million in economic

impact• 22,000 Tons of waste

diverted from landfill• 43,000 Tons of CO2

avoided

• Accolades:• 2007 City of Chicago

GreenWorks Award for Industry Transformation

• 2008 NIST/MEP Innovators of the Year

• 2008 Illinois Pollution Prevention Award Nominee

• Year 2:• $1.9 Million in economic

impact• 48,000 Tons of waste

diverted from landfill• 31,000 Tons of CO2

avoided

Quarter 1 & 2 2009 Update

• 53,105 tons of waste diverted• 12,762 tons in the negotiation phase• 13,012 tons of CO2 eliminated• $5,514,574 in economic impact• 10 jobs created or retained• 23 Synergies completed year-to-date

Cumulative Network Impact (January 1, 2007-June 30, 2009)

• 122,688 tons of waste diverted• 88,958 tons of CO2 eliminated• More than $12 million dollars in economic impact• 37 jobs created or retained• Average implementation time for synergies: 8

months

0

2

4

6

8

10

12

14

16

18

20

Percentage of InnovationParticipants

Percentage of CommunityParticipants

A. Healthcare

B. Metals

C. Chemicals

D. Food and Beverage

E. Construction and Building Materials

F. Electronics

G. Paper and Packaging

H. Energy

I. Plastics

J. Landscaping

K. Lumber and Furniture

L. Textiles

M. Glass

N. Printing

O. Other

Industry Spread Among Network MembersPERCENTAGE

OF

TOTAL

INDUSTRY SECTOR REPRESENTATION

Why WtP?

• Since January of 2009, 54 new companies have joined the ranks of Waste to Profit Network Membership. This is a 415% increase in quarterly membership enrollment over the past 10 quarters.

• The Waste to Profit Network has partnered with Chicago’s LIRIs as well as other industry and economic development groups like the CGRC, MVCC, and the ASSE to bring more community network meetings to more communities throughout Chicagoland.

• Over 90% of attendees claim knowledge about regional sustainability initiatives as the #1 reason to participate in Meetings. The #2 reason? More than 90% of companies identified at least 1 opportunity for profitable waste reduction.

What can I expect from TODAY?

• Community Network Meeting:• Large Group

Plant a Seed: Qualify company byproducts and feedstock Watch it Grow: Group all products by material type on

“affinitrees”

• Breakout Groups Pick the Low Hanging Fruit: Identify of the obvious

synergy opportunities Don’t Leaf anything Hanging: Identify of what needs are

yet unmet Branch Out: Collaborate around the identified synergy

potentials

What can I expect AFTER TODAY?

• See the Forest for the Trees: Team members create linkages between new Community network members, existing Community network members and Innovation network members

• Next Innovation Network next meeting is May 21st – Let us know if you’re interested.

• Team members will follow up with everyone regarding synergies & impact created after the meeting

Growing the Indus-Tree Part1

• Introductions• Plant a Seed• Watch it Grow

1. Plant a Seed

• Chose 3 Materials: They can either be byproducts that you have or inputs you want

• Fill out the information for each on a corresponding post-it: • Green=Byproduct• Blue= Input

• Use one post-it for each material, please!

2. Participant IntroductionsTell Us:•Your Name•Your Company•What does your organization do or make?•What are the materials you have/want?

3. Watch it Grow

• Place Each Material Post-it on the Appropriate Affinitree and in the Corresponding Category

Stan’s Cement Co.

Heat Waste from Cement Kiln

Affinitree Material Categories • Construction and

Demolition Materials • Building Materials • Glass• Wood• Sands and Soils

• Chemicals and Materials• Organic• Inorganic• Paints and Solvents• Plastics and Polymers

• Energy• Transport• Fuel• Facility• Heat

• Metals • Ferrous• Non Ferrous• E Waste • Ashes and Slags

• Non-Materials • Services• Ideas• Expertise• Technology

• Organics• Paper• Food Waste• Organic Wastes• Green Waste

• Water• Clean Water• Process Water (Organic

Contaminants)• Process Water (Inorganic

Contaminants)• Storm Runoff and Grey Water

Growing the Indus-Tree Part 2• In each of two- 30 minute sessions, follow your material

affinitree to choose the breakout group that best meets your needs. These groups will pair you with others whose needs are similar to your own.

• Pick the Low Hanging Fruit: Identify the Obvious Correlations between Haves/ Wants on the Board

• Don’t Leaf it Hanging: If there isn’t an obvious solution on the board, suggest one!

• Branch Out: Network and take advantage of the Opportunities to turn your waste in to profit today.

• Team members will be recording connections created in today’s meeting

A Note about Break Out Groups…

There is no rule against moving around!

Feel free to visit two or more groups during the half hour as

your needs (or curiosity) dictate.

Break Out Session One- 20 Minutes•Construction and Demolition Materials

•Building Materials •Glass•Wood•Sands and Soils

•Chemicals and Materials•Organic Chemicals•Inorganic Chemicals•Paints and Solvents•Plastics and Polymers

•Energy•Transport•Fuel•Facilty•Heat

Break Out Session two- 20 Minutes• Metals

• Ferrous• Non Ferrous• E Waste • Ashes and Slags

• Non-Materials • Services• Ideas• Expertise• Technology

• Organics• Paper• Food Waste• Organic Wastes• Green Waste

• Water• Clean Water• Process Water (Organic Contaminants)• Process Water (Inorganic Contaminants)• Storm Runoff and Grey Water

Moving Forward• More networking after this wrap-up• Technical team will contact highest potential

synergies and bridge to Innovation Network• Reporting back collaborations on synergies is

highly encouraged – contact Libby Allen Augustine

• Synergies can be:• New or optimized recycling efforts• Actual by-product synergy exchanges or matches• Reduced waste (plant or organizational efficiency)

• Interested in Innovation Network – contact Libby Allen Augustine

Upcoming WtP Events

• September 24 in partnership with Morraine Valley Community College: Carbon Footprinting for Business

• October TBD in Partnership with GCRC• November 5 in partnership with MVCC: The lean

and Green Office• December TBD in partnership with ISTC, DuPage

County

Group Synergy Participation

Food Waste Composting• Since September 2008, Waste to Profit has

supported a regional stakeholder group in conjunction with CGRC, SCARCE, Region V EPA and Chicago Compost LLC to gauge member’s and the region’s needs for food waste composting. WtP will be helping to develop reional composting business by identifying feedstock providers and end users of compost

Group Synergy Participation

Foundry Sand• In coming months, WtP intends to engage

cement, concrete and asphalt companies which mine virgin silica that could be substituted with foundry sand, help facilitate testing of the material and foster connections between producers and users. It is estimated that over 1,000,000 Tons of foundry sand are sent to landfill in Illinois each year.

For More Information

Libby Allen AugustineCommunity Network ManagerChicago Manufacturing Centerlallen@cmcusa.org312.542.0496

William HoffmanDirector of SustainabilityChicago Manufacturing Centerwhoffman@cmcusa.org312.542.0471

Thank you for Participating!