Fears grow of waste wood mountain

Fears of a waste wood mountain in parts of England are growing as wood recyclers continue to struggle to find outlets for lower grade material.

A number of factors are causing the fall in demand for waste wood including low export demand from Scandinavia, the strength of the Pound against the Euro, lower demand from the Sonae board mill and the weak economy generally.

Traditionally, demand for waste wood has always fallen over the summer months when demand for fuel in district heating schemes on the Continent reduces and the panelboard factories have their summer shut downs.

However, the situation has been particularly acute this year following a mild winter in Sweden which was already well stocked with wood supplies. The proposed closure of the Sonae chipboard factory on Knowsley (see letsrecycle.com story), which takes 400,000 tonnes of waste wood a year and is already operating at lower capacity following a fire in 2011, is also creating considerable concern.

The lack of demand has pushed up gate fees at wood recycling sites, particularly in the South and East of England where there are very few domestic markets for waste wood.

Wood recyclers are charging up to 60 a tonne to process lower grade B and C waste wood and stockpiles are building up in many yards. This is a problem because the Environment Agency has been tightening up on regulation of sites and there are strict limits on how much companies can store. As a result, some firms have stopped taking in waste wood altogether.

Unaware

But, the Environment Agency told letsrecycle.com that it was unaware of any difficulties. An Agency spokeswoman said: There are seasonal variations in the market for wood chip but we’ve not been informed of any pending wood mountain or slump in demand by the wood recyclers association.

One recycler in the South East said: Weve stopped taking in waste wood as there are no outlets. Our material was going to a biomass plant up North but they have put a stop on it as there is so much around and it is piling up in our yard.

While it is understood that some larger companies, like Stobart and SITA UK, are just beginning to export material again in preparation for the coming winter, wood recyclers are desperately hoping for a cold winter and an upturn in the economy to really turn the situation around.

Difficult

Peter Butt, secretary of the Wood Recyclers Association, said: It is really difficult and has been described as the perfect storm. This is the time of year when stocks tend to be at their highest anyway. It is a shame when wood recyclers have to turn material away.

I am working with the Environment Agency and fire service to thrash out an agreement on the size of stacks and separation distances allowed on sites. This is when cooperation and communication between wood recyclers and regulators needs to be at its highest.

Mr Butt added that the potential closure of the Sonae plant was a big concern for recyclers. He said: We think it will be a terrible thing for the people concerned and our industry if it were to close as it takes 400,000 tonnes of waste wood a year.

Surrey

Justin Foster, from the waste contracts team at Surrey county council, explained that Surrey was experiencing problems in shifting waste wood. Most of the material is collected at the councils 15 civic amenity sites, which are managed by SITA UK.

He said: We have seen gate fees rise over the summer and we are having difficulty moving it [waste wood]. We are having to store it which is increasing the cost for us. There are places up North which will take it but the logistics mean that the figures dont stack up. We got a quote last week for a spot gate fee of 60/t, which, if you include haulage as well is getting up to landfill costs. It is wild.

We are speaking to our neighbours in the South East and there are a few local authorities looking at what we can do together as a regional group the SE7.

Mr Foster added that Surrey was concerned about government proposals to introduce landfill restrictions for waste wood, as outlined in a recent consultation (see letsrecycle.com story). He said: We are going to respond to the consultation from Defra to say think very carefully as the market for waste wood before you start putting restrictions on its landfilling.

Neil Bailey, technical advisor at the Wood Recyclers Association and who previously worked for biomass giant RWE, confirmed that gate fees for recycling waste wood had risen.

He said: Gate fees are around 45-50/t and in some cases they have even stopped taking material as they have not got outlets for it. Everyone is praying for a cold snap and for the economy to pick up so the board mills can sell and use more material. We are in limbo.

Liability

One waste management business in Eastern England said that it was concerned that waste wood in yards could become a big liability for waste businesses in the way that trommel fines had. He said: We would have expected to pay a gate fee to a recycler for the wood but now no-one wants it and landfilling it would cost a lot more.

Some waste businesses say there are now considering shredding waste wood to make stockpiles smaller to avoid creating waste wood mountains which has caused concerns about an increased risk of fire.

Commenting on the risk, one fire brigade told letsrecycle.com: We would advise anyone storing higher volumes of wood to ensure that the responsible person ensures that the fire risk assessment is appropriate for the extra volumes. Attention should be paid to fire safety measures and to fire exits and to making sure there is compliance with the Regulatory Reform Fire Service Order of 2006.