Ralf Schöpwinkel explained that the invasion has caused several “economic and logistical headaches” which resulted in a shortage of waste as a feedstock, increased transport costs, increased energy prices, and an “unpredictable market”.
He added: “Admittedly, this is an imbalance the industry already had a taste of during Covid, but the challenges we faced last year are now amplified in several areas and contribute to further uncertainty in the waste markets.”
Mr Schöpwinkel said war in Ukraine was “cooling” the economy and reducing consumption in Europe, leading to a shortage of feedstock for recycling and energy recovery.
As an example, he cited the supply of waste wood; Russia has long been a supplier of timber and biochips to the panelboard and paper industries and to energy from waste (EfW) plants that use wood chips as fuel, Mr Schöpwinkel said.
He said these exports stopped “more or less overnight” once sanctions were imposed.
“The European waste market lacked waste wood even before the war began, resulting in higher prices,” Mr Schöpwinkel said.
Transport
Mr Schöpwinkel said the number of Ukrainian drivers returning home to protect their country had contributed to a shortage which reduced transport capacity.
Russian bulk carriers are also leaving the supply chain, Mr Schöpwinkel said, which limits maritime transport capacity.
And, he added that vessel fuel has doubled in price, while the diesel price for road transport has “never been higher”, with rail transport currently unable to compensate for the lack of other services.
‘Unpredictable market’
Turning to energy prices, Mr Schöpwinkel said the war had “significantly” increased operating costs for many industry players, forcing several European recyclers and cardboard mills to stop production temporarily.
Mr Schöpwinkel said: “If the war in Ukraine can teach us anything, it would be that the entire value chain quickly becomes vulnerable when market mechanisms, in combination with emission quotas and other regulations, undergo unforeseen changes.
“Broad international cooperation – giving easier access to feedstock throughout Europe – would reduce the risks and open for a more stable waste market in future crisis situations.”
Norway
Established in Norway in 2004, Geminor has logistic hubs and offices in Scandinavia, Finland, the UK, Germany, France, Poland, and Italy, and employs more than 80 people.
The company says it handled 1.73 million tonnes of feedstock in 2021 and holds contracts with more than 350 waste producers and 180 EfW and recycling facilities.
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