wood recycling a transforming marketplace david lee group operations director
TRANSCRIPT
![Page 1: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/1.jpg)
Wood recycling
A transforming marketplace
David LeeGroup Operations Director
![Page 2: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/2.jpg)
Hadfield & UKWR – Who are we?• 30+ years experience• Agricultural background• Leading UK wood recycling business
– Producer of leading animal bedding brands– Significant tonnages to panelboard mills– Leading provider of waste wood for UK WID wood biomass stations
• Approaching 100 k tonnes processed pa
– Export– Plus several other sustainable products
• Total of 250k tonnes in 2010/11 • 3 sites main sites
– Manchester, Middlesbrough, Tilbury
![Page 3: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/3.jpg)
Manchester
![Page 4: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/4.jpg)
Middlesborough
![Page 5: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/5.jpg)
Tilbury
![Page 6: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/6.jpg)
![Page 7: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/7.jpg)
Wood waste basics
Post consumer (household
collections, civic amenity sites)
Sources
Commercial & Industrial
Construction & Demolition
Collection & Processing
Panel board Manufacturing
Bio energy
Animal bedding
Compost & Mulches
Other applications (filter material etc)
Applications
![Page 8: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/8.jpg)
Market fundamentals
Source
Originator
Collector
Processor
Consumer
Supply Chain
Gate fee+
price etc
=
Processing fee+
Haulage+
Margin
Economics
![Page 9: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/9.jpg)
Panel board (using recycled wood)
Biomass in operation
Biomass in construction
Biomass – Gaia Power
Biomass in development
Supply & demand locations
• Supply is based around population
• Existing demand is largely northern
• The south east has large generation and limited consumption
![Page 10: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/10.jpg)
Waste wood volumes
• General consensus is that approx 5m tns of wood waste is generated in the UK per annum
• Only 2.1m tns had a “home” in 2008.
• For “landfill” read “somewhere else”
From slide by Poyry
Question is how much will be accessible?
![Page 11: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/11.jpg)
Where does waste wood currently go?
The volumes going into the unknown end uses are large but it is almost impossible to determine how
much goes where
![Page 12: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/12.jpg)
Markets - Panelboard
• Pan European over capacity– Can 100% of UK industry survive?
• Regional bias– Majority of capacity is in NW England, NE England and
Scotland
• Quality requirements– Panelboard feed stock is typically more solid wood than panel products
![Page 13: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/13.jpg)
Markets - Biomass• Existing UK WID facilities
– 500k tonnes
• Mainland European demand– Swedish, German and Dutch supply from UK
• New UK Non WID facilities– RHI and public build schemes – New waste wood pelletising plants have been recently opened
• New UK WID facilities– Huge number in planning– Feedstock only exists for approx 750k - 1m tonnes pa
• then cannibalisation
![Page 14: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/14.jpg)
Markets - Animal bedding & mulches
• High growth in animal bedding in mid 2000s– Lots of new entrants in 2008/09
• Demand influencers– economic conditions– seasonality– availability of alternatives (straw, shavings etc)
• Pricing is determined by alternatives– rather than the wood market place
![Page 15: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/15.jpg)
Industry players• Traditional
– Aggregators & processors• SMEs
– Brokers• Small numbers
– Hauliers• Several but AW Jenkinson
dominant
– Consumers• Panel board• Animal bedding• Limited UK biomass
• Today– Aggregators & processors
• LWMC and SMEs
– Brokers• New entrants from UK & Europe
– Hauliers• Expansion of both number and scale
– Consumers• Panel board• Animal bedding declining• Export biomass growth• UK biomass stable
– Rapid growth in 2012
An industry in flux
![Page 16: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/16.jpg)
Wood waste in the NE of England• Significant demand for material
– Sembcorp Wilton– Eon Lockerbie– Egger Hewham– Dalkia Chilton– RWE Markinch?
• Impact on gate fees as demand comes on line?
![Page 17: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/17.jpg)
A sellers market - key decision criteria
• Duty of care
• Recycling vs recovery
• Costs (gate fees and haulage costs)
![Page 18: Wood recycling A transforming marketplace David Lee Group Operations Director](https://reader036.vdocument.in/reader036/viewer/2022062313/56649ce25503460f949ae4f9/html5/thumbnails/18.jpg)
Questions?
David LeeGroup Operations DirectorHadfield Wood RecyclersUK Wood Recycling Ltd
Mobile - 07973 633829Office - 0161 3702360Email - [email protected] www.hadfield.co.ukwww.ukwoodrecycling.co.uk