The disposal of hazardous waste within the UK via Incineration is close to saturation point. As a result, the domestic processing market can be a fairly difficult place in which to find value for those responsible for managing the UK’s hazardous waste.
The situation is made even more challenging by the fact that hazardous waste producers are now seeking to realise the environmental and commercial benefits of re-use and energy recovery as opposed to the more traditional disposal. Municipal incinerators in the UK are restricted in what waste streams they can accept, which further affects an already challenging market.
Whilst the lack of capacity generally presents an obvious challenge in itself, the situation is further complicated by the fact that these facilities require a blend of different materials to work effectively. With limited capacity in UK High Temperature Incineration (HTI), there is already ample supply of materials that are easy to process and have the correct range of calorific value to operate at the optimum temperature.
Europe
In stark contrast the European market has capacity for hazardous waste via incineration and energy recovery plants operating to ‘R’ code status meaning that material processed through them can be classified as being reused in the production of sustainable energy. Another marked difference is the acceptance criteria for Waste to Energy plants within the European market. Totus has built up a portfolio of close partners across Europe giving them more than 30,000 tonnes of capacity for hazardous waste per year. 2017 will see this capacity grow via new routes, opening up more opportunities within the UK market.
The opportunity presented by export however is not always easy to exploit. Especially for those businesses whose operations have traditionally fallen solely in the UK. The key to success lies in a detailed understanding of both the materials that need managing and the current and future requirements of the European facilities. This knowledge and experience enables Totus to match precise material requirements of a specific facility with the waste being produced. It is also easier for businesses who are managing a range of different material types to build strong commercial relationships with the incinerator operators as this enables them to blend waste streams to get the right mix. These relationships enable us to secure input tonnage at an agreed rate, providing customers with security of off-take and a stable price.
Logistics
Another challenge lies in the logistics and the associated administration. Small scale and infrequent haulage is often expensive as well as being very time consuming to procure. There is also a significant administrative burden resulting from the paperwork required for export. Totus’ experience in the SRF and RDF markets has provided us with a great logistics network and understanding of European infrastructure. This gives us the opportunity to utilise any spare capacity or new routes on the network and to provide real value when it comes to transport. We are also starting to work with some of the logistics providers to transport some of the waste streams we handle in larger volumes, which will deliver some real economies of scale.
The European market offers a great deal of potential for UK waste management companies looking to leverage the export opportunity. Whilst there is nothing to prevent the companies from establishing their own recovery route it is worth taking the time to understand whether they have the required resources, experience and network to derive value. They should also consider whether this approach would detract from their day to day business. Working with an experienced hazardous waste exporter such as Totus could enable them to reap the commercial and environmental benefits without detracting from their day-to-day business.
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