Circular Economy Conference Horsens, Denmark Industrial Symbiosis:

1. Circular Economy Conference Horsens, Denmark Industrial Symbiosis: Positive Action for Green Growth Peter Laybourn Chief Executive International Synergies Limited 29th November 2012

2. Contents What is Industrial Symbiosis? Commissioner Potočnik and IWCAIS National Industrial Symbiosis Programme (NISP) Innovation Recent Policy Activity International Growth New Applications Concluding Remarks

3. 1. What is Industrial Symbiosis?

4. What is Industrial Symbiosis? • Numerous academic definitions... In essence: • Industrial symbiosis is a systems approach to a more sustainable and integrated industrial economy that identifies business opportunities (often through innovation) to improve resource utilisation including materials, energy, water, capacity, expertise and assets

5. Elements of Industrial Symbiosis • Network of diverse organisations • Fostering eco-innovation and long-term culture change • Addresses the market failure of information • Yielding profitable transactions in: • Novel sourcing of inputs • Value added destinations for non-product outputs • Improved business and technical processes • Lombardi & Laybourn, 2012, Journal of Industrial Ecology 16(1):28-37

6. Illustrative Models of Industrial Symbiosis global national region organic facilitated Styria city IP China local

7. Models of Industrial Symbiosis Differ in... Lifetime/Duration Driver/Initial impulse Role of facilitation Scale But share... Economic, environmental and social benefits Cross-sector engagement

8. 2. International Working Conference on Applied Industrial Symbiosis (“Positive Action for Green Growth”)

9. Johnson Matthey, Alstom, Toyota, Ricoh, GIZ, URS Corporation, TATA, Dong Energy, Veolia, Landmark, Plastics Europe, Befesa Civils, McKinsey, HSBC, Noble Foods, TESCO and Birmingham City Council • DG Enterprise (Commissioner Potočnik), DG Environment, EEA, UNEP, World Bank, Committee on Climate Change, John Elkington, OECD, Invest Northern Ireland, CBI and Forum for the Future • Including practitioners from the UK, Australia, Brazil, China, Denmark (Kalundborg Symbiosis), Hungary, Korea, Mexico, Nigeria, Turkey and the USA

10. Four Global Themes • Climate Change and Energy Security • Eco-Innovation and Green Growth • Materials Security • Regional Economic Development Industrial Symbiosis has proven ability to deliver on these agendas

11. 3. National Industrial Symbiosis Programme (NISP)

12. NISP: The Pathway To A Low Carbon Sustainable Economy ‘The Pathway To A Low Carbon Sustainable Economy’ charts NISP’s progress since becoming the world’s first national industrial symbiosis programme in 2005 It sets out the compelling argument that the business led NISP has the potential to fulfill a key role in the transition towards a low carbon sustainable economy Available to download at: http://www.international-synergies.com/images/pdfs/NISP_The_Pathway_to_a_Low_Carbon_Sustainable_Economy.PDF

13. NISP (England) Delivered Outcomes April 2005 - March 2012 €40 million investment since 2005 *all outputs independently verified Rate Euro £1 = €1.18

14. Excellent Return on InvestmentApril 2005 - March 2012 Rate Euro £1 = €1.18

15. Organisation: Regionally delivered, Nationally co-ordinated Began as three regional pilots in 2002/3 and went UK national in 2005 World’s first National Industrial Symbiosis Programme Regional practitioner teams across the UK Investment from UK and regional government (now in transition to a commercial model) Business-led Programme Advisory Groups (PAGs) Substantial benefits of a national model

16. International Synergies’ NISP Process Practitioners facilitate all stages of synergy

17. NISP has circa 15,000 Members CORPORATES SMEs MICROS Anglian Water Services Ltd BAE Systems Balfour Beatty Bombardier Denso Manufacturing Ltd Diageo Foster Yeoman HSBC Jaguar Land Rover Johnson Matthey Michelin Peel Group RICOH UK Products Ltd SITA TATA Toyota UK Coal Plc Veolia Advantage Waste Solution Akristos Analytichem Angelheart Inc Arrow Environmental Blendcheck Ltd Clarkson Enterprises Dinano Ecoideam Enviro (Grimsby) Facility Water Management John Carson Innovations Kito Engineering Solutions Manufacturing Production Solutions Ross Miller Farm TVLI Waste Check Ltd Whitby Recycling Services Alutrade Arden Wood Shavings Befesa Salt Slags Bio Waste Solutions BIP Oldbury Coldwater Seaford Ltd County Mulch Delkia Bio-energy Farrow & Ball Firth Rixson Castings G&P Batteries Giffords Glendale Grounds Maintenance GPD Developments Green Tech Ltd Guala Closures Ltd H Sivyer Howarth Timber Engineering Jack Moody Holdings JBR Recovery John Pointon & Sons Ltd Kingpin LC Energy Lower Reule Bio Energy McGrath Barr MJ Allen Montracon New Earth Solutions Ramfoam Ltd Recycled UK Renewable Energy Growers Teknor Apex Westland Horticulture Works infrastructure Ltd • KEY POINTS • All sizes - Multi-nationals, SMEs, Micros, Entrepreneurs • All sectors • All resources • SMEs represent 90% of membership

18. Facilitating the exchange of information and best practice between businesses • Tried and tested, interactive business opportunity model • Typically 50 - 60 organisations in one room • Can generate 300+ potential synergies from a facilitated ½ day session Workshops

19. Opportunity Mapping

20. On-line project and data management tool • Information on resource and contact details • New and stored historic data • Bespoke report generating capabilities • Vital support and management tool for practitioners • Used in nine countries SYNERGie Management System

21. Facilitated Synergies: Role of Practitioners • Identify ‘IDEAS’ • Make introductions • Facilitate negotiations • Provide technical expertise • Mine the network for answers and opportunity • Use their industry expertise and knowledge • Encourage and accelerate synergy progress

22. Success Factors Practitioners Industrial expertise Long term relationship building & facilitation Marrying data & expert knowledge Working with the regulator and technology providers to ‘enable’ IS activity Engagement Model Extensive, diverse network Business opportunity programme History of exemplary performance Demand pull on innovation Data Quality NISP data & limited access to regulatory data

23. The Constituents of an Industrial Symbiosis Network Managed by International Synergies • Practitioners • Engages with businesses and regulators • Facilitates synergies • Delivers workshops • Innovation Managers • Connects industry to universities • Facilitates knowledge transfer • Embeds innovation within the network • Academia • Connect companies to research • Supports post-graduate learning • Valuable resource for Practitioners • Business Members • Recruited across all sectors • 90% SMEs and Micros • 15,000 in UK alone • Business Champions • Advocate for industrial symbiosis • Commercial ‘steer’ to the programme • Advice and guidance on delivery

24. Manchester Economics Report:Economic Impact Assessment (2005 - 10) Total Economic Value Added €1.8bn to €3.0bn, giving an investment multiplier of between 53.2 - 88.6 €175 million to €290 million to Treasury in direct receipts Benefit Cost Ratio in excess of 32:1 3:1 considered good by Government and 8:1 excellent by Regional Development Agencies

25. Manchester Economics Report: Conclusion NISP, having established the infrastructure to deliver the “symbiosis process” across industry, provides a strong foundation from which to increase the returns from public investment The triple line benefits achieved to date provide a compelling case for increased investment in the future

26. Case Study: A Fruitful Collaboration Companies: GrowHow UK (formerly Terra Nitrogen) John Baarda Ltd Summary: Ways of using ‘wastes’ from manufacturing plant to grow tomatoes all year round Achievements: 65 new jobs CO2 reduced by 12,500 tonnes pa Successful re-use of waste heat €17 million private investment in region

27. Ricoh disseminates best practice through NISP • Ricoh adopts variable speed drive system • - £5k investment brings positive rate of return in less than 8 months • - Carbon reduction 50 tonnes per annum • Best practice disseminated at NISP event to... • 70 UK companies including many SMEs • Technology adopted by GKN with £25k savings per annum and major carbon reduction EE best practice dissemination

28. Toyota disseminates best practice through NISP • Toyota adopts energy efficient LED lighting across its facility • - 16% reduction in electricity last year • Best practice disseminated at NISP event hosted by Toyota to... • 40 UK companies including Tesco, Next, Royal Mail and many SMEs • Other companies now installing LED lighting Before: 42 x 400w (single fitting) After: 42 x 120w (single fitting)

29. Welcome to MichelinPaul KinkeadEnvironment Manager

30. Reduction in waste to landfill • Corporate target to eliminate process waste to landfill • Challenge: difficult materials to recycle • 36 individual waste streams • Use of benchmarking within Michelin • Breakthrough : engagement with NISP to source creative and cost effective solutions • Access to expert solution providers

31. Reduction in waste to landfill • 97% reduction achieved • Ballymena factory is the corporate benchmark • Corporate targets achieved 18 months ahead of plan

32. 4. Innovation

33. Industrial Symbiosis creates the space for innovation to happen “Innovation occurs at the intersection of expertise, diversity and opportunity driven by making novel connections” “An environment to promote creative serendipity* through the collisions of thoughts and ideas” *The Three Princes of Serendip Horatio Walpole (in a letter to Horace Mann, 28 January 1754)

34. Technology and Innovation: Eco-Innovation Exemplar • Some potential synergies require innovative solutions - new technologies • new applications for existing technologies • Immediate demand pull on of R&D and technology innovation • University of Birmingham studies have found a high level of innovation in synergies • 50% involved best available practice • 20% involved new research and development • NISP is an EU Environmental Technologies Action Programme (ETAP) and OECD Eco-Innovation Exemplar

35. OECD Identifies Industrial Symbiosis as Critical to Growth Agenda • OECD has recently declared industrial symbiosis • ‘a la NISP’ to be “an excellent example of systemic • innovation vital for future green growth” Production Process Product & Service Organisational Boundary Incremental Innovation Systemic Innovation

36. Industrial Symbiosis Transforms Individual Businesses: John Pointon & Sons Ltd • Pre - NISP: animal renderer inputs: carcasses, outputs: • landfill, CO2 perception: dirty industry • Initial NISP stage: animal by-products diverted from landfill to • cement industry • Second stage: improved efficiency of processes • Third stage: move into bio-fuels utilising more by-product • Fourth stage: move to anaerobic digestion and grid connection • Current situation inputs: carcasses, organic residues outputs: • energy and minerals • Vision: clean energy company

37. 5. Recent Policy Activity

38. Recent European Policy and Action Best Practice under the European Waste Framework Directive (2009) Roadmap to a Resource Efficient Europe (2011) Sustainable Industry-Going for Growth & Resource Efficiency (2011) European Climate Knowledge and Innovation Community (2012) European Resource Efficiency Platform (2012)

39. Underpinning evidence to support policy:COWI Report (2011) • Economic analysis of resource efficiency policies; “the National Industrial Symbiosis Programme has the maximum possible score based on economic and environmental benefits amongst 120 policies from 23 countries”  • The report presents evidence to support a European-wide replication of NISP stating, “NISP shows high potential for improving resource efficiency, and the programme could be successfully replicated in every EU Member State” • “NISP has significant implications for profitability…and provides for a long-term sustainable investment for growth”

40. Now Introduced into Industrial Policy... “The new industrial policy update to be launched this week will include practical proposals for industrial symbiosis schemes across Europe” Commissioner Potočnik, in a speech to the Business Europe Advisory Board and Support Group October 2012

41. 6. International Growth

42. Replication…already happening Belgium Ongoing Essencia Brussels Country Status Project Region/State Client Poland Ongoing EUR-IS Wroclaw Climate KIC United Kingdom Ongoing NISP England, Scotland, N. Ireland & Wales Defra, Scottish Government, Invest Northern Ireland, Welsh Government Slovakia Complete Reducing Production Waste by Industrial Symbiosis Bratislavsky kraj ERDF Turkey Ongoing NISP Turkey Iskenderun Bay area BP China Ongoing Tianjin Economic Development Area Industrial Symbiosis Network Tianjin European Union Switch Asia South Korea Ongoing Co-operation on Eco-Park Development Mexico Complete NISP Mexico Toluca Lerma Defra – Sustainable Development Dialogues Romania Complete ECOREG Suceava European Union Life+ Brazil Ongoing NISP Brazil Minas Gerais Defra – Sustainable Development Dialogues Al-Invest China Complete Pilot Project – Circular Economy Yunnan Province Defra – Sustainable Development Dialogues South Africa Complete South Africa Industrial Symbiosis Pilot Programme Gauteng Province Defra – Sustainable Development Dialogues Hungary Ongoing NISP Hungary Kozep-Magyarorszag, Budapest European Union Life+ Climate KIC

43. Other current interest... A question of competitiveness? • Argentina • Australia • Canada • Chile (starts December 2012) • Cuba • Finland • Italy (Sicily) • Province of Limburg, Netherlands • Western Cape, South Africa

44. Chinese President HuJintao18th Party Congress, November 2012 “We will have a large scale circular economy and considerably increase the proportion of renewable energy resources in total consumption...” “ We must give prominence to building a resource –conserving and environmentally friendly society...” Incoming President Xi Jinping is expected to continue this path

45. Key tasks to introduce a circular economy to China identified as: • Optimise spatial layout • Optimise industrial structure • Realise zero emissions through supply chain optimisation • Efficient utilisation of resources • Centralised treatment of pollutants • Green infrastructure • Standardisation of administration, operation and management of parks

46. China International Green Innovate Products & Technologies Show, 9-11 November 2012, Guangzhou • International Synergies Limited invited to present • Ministries of Commerce, Environmental Protection, • Science and Technology attended • Directors from 51 Ecological Industrial Parks (EIPs) • Industrial Symbiosis seen as key to future development • of EIPs • Further meetings early 2013 with TEDA (probably largest EIP • in world) for a multi-province industrial symbiosis • programme

47. 7. New Applications

48. Bettaland Freedom Recycling AWO Bedford Localfast Inward Investment Newport Paper Indigo Waste Pearsons Donarbon M W White Viridor Shred Secure Control Group Kelstone Recycling Anglian Confidential Bywaters May Gurney Indigo Waste ORM Crestmont Akristos Hanson Aggregates RTAL Eco Aggregates Southfields Group S Walsh Tarmac Recycling Rejected Loads Vermiculture Soil Conditioning Aggregate Production Paper Sludge & Ash Water Waterwise Anglian Water Paper Co Waste Paper RTAL Alternative Use PREL Minergy Advanced Plasma Power Incineration Screening Materials Power Construction Plastics Organics Centrico BHM Sutton Services GKL Northern Milbank Dickerson Group Gulf Star Oil Revalue Technologies Plasgran Chase Plastics HotRot Organic Solutions Greenview Technologies Biogen Donarbon

49. Regional Economic Development2011: Birmingham Big City Plan • Tyseley Environmental Enterprise District • - Framework for Action (May 2011) • Birmingham’s priorities for Tyseley: • “Support businesses and organisations to • capitalise on low carbon opportunities • and maximise industrial symbiosis” • International Synergies Limited • commissioned to produce report • (completed October 2012)

50. Industrial Symbiosis Opportunities for Tyseley Environmental Enterprise District