Executive Summary Draft Version 01 Confidential and not for Distribution 5 /8/2010

1. 10/237 Feasible and Cost effective Waste Management Scheme for Ozone Depleting Substances (ODS) contained in Polyurethane (PU) Insulation Foam Executive Summary Draft Version 01 Confidential and not for Distribution 5/8/2010

2. Structure of the Report • Overview Waste Legislation • The impact of classification of ODS containing PU waste as hazardous • General requirements for ODS destruction routes • Can waste classified as hazardous be incinerated in MSWI ? • Technical and economic feasibility of collecting ODS containing PU foam separately • Environmental impact of the HTWI route versus MSWI • Refrigerator recycling with ODS recovery – a route for PU foam? • ODS Destruction Efficiency/Cost Comparison • Waste Management Strategy Considerations • Appendix PUIF ODS SLIDES for PU Europe and ISOPA

3. Overview Waste Legislationexcluding other legislation e.g. transport,.. • European Waste Catalogue (EWC) replaced by List of Waste (LoW). Application of the List of Waste in EU has been evaluated by EU Commission to harmonise approach. CFC containing PU is classified as hazardous (H14). • National implementation of revised ODS Regulation (EC) 1005/2009 results into national activity plans. UK and Germany are forerunners. • Potentially negative consequences (see German UBA guideline brochure). PUIF ODS SLIDES for PU Europe and ISOPA

4. The impact of classification of ODS containing PU waste as hazardous • Notification to ship and receive hazardous waste is required for waste owner or operator ( e.g. MSWI or cement) to ensure proper handling according to regulations and guidelines. • PU waste characteristics and contamination of PU with adhering substances are important for determining classification according to the EU List of Waste. • The main cost factor is the change in gate fee and market supply and demand conditions. Additional administrative costs are not significant. • The building owner may transfer the waste ownership to the contractor who removes old insulation. After removal, all ownership changes are documented by official hazardous waste regulation documents. PUIF ODS SLIDES for PU Europe and ISOPA

5. General requirements for ODS destruction routes • With a view to optimising ODS destruction, all options should be assessed as to the following criteria: • High destruction rates / low risk; • High energy recovery rates & high efficiency; • Low cost of investment & operation; • High availability & broad acceptance limits; • Good proximity & low transportation cost. PUIF ODS SLIDES for PU Europe and ISOPA

6. Can waste classified as hazardous be incinerated in MSWI? • The MSWI‘s operational permit includes PU incineration. • Operational and building permits approved and granted by local authorities. Permit procedures not harmonised at EU level. • Permits also allow MSWIs the inicineration of hazardous substances and special waste other than municipal solid waste. • The range of permits needs clarification and exploration. • If the MSWI operator refuses ODS containing PU waste, it is advisable to object and ask for reasons. PUIF ODS SLIDES for PU Europe and ISOPA

7. Technical and economic feasibility of collecting ODS containing PU foam separately • Separate collection of PU is cost prohibitive (> 1200 Euro/t PU) and not ecological due to emissions from transport. • Lack of infrastructure: transportation , storage , containers etc. is not a high entry barrier to the market. The economic estimates were using practical assumptions (i.e. average waste quantities from non-residential buildings are higher than those from residential buildings). • Collection cost optimisation favors joint collection of all organic materials (except those rigid facings) at demolition sites and their transport to MSWI. Ideally, other burnable materials such as wood should be included. • Monitoring brominated flame retardant (FR-Br) issues at the MSWI site is important to prevent problems. PUIF ODS SLIDES for PU Europe and ISOPA

8. Environmental impact of the HTWI route versus MSWI • High temperature incineration is used to ensure an extremely high destruction of stable chemicals while achieving extremely low emissions. • ODS compounds have relatively weak chemical bonds, which can be cracked at lower temperatures and, hence, with less energy. • Even from an environmental point of view, HTWI is not necessarily the best balanced ODS destruction route. PUIF ODS SLIDES for PU Europe and ISOPA

9. Refrigerator recycling with liquid ODS recovery – a route for PU foam? • Operating data from fridge recycling plants indicate that ODS recovery efficiency is lower than expected. The ODS recovery step cost is high compared to total recovery cost. • ODS recovery/destruction capacities applying current technologies would have to be multiplied by 10 to 20 to meet ODS containing demolition waste. • Logistic costs and investments in infrastructure will have to be balanced with increasing throughput treatment capacity. • Options for ODS recovery equipment are: (1) upscaling existing technologies or (2) the use of similar size equipment with multiple parallel trains. • New ODS recovery plants for PU would require heavy investment. Cost of waste management is defined according to the polluter – owner- pays principle (see Waste Framework Directive). PUIF ODS SLIDES for PU Europe and ISOPA

10. ODS Destruction Efficiency/Cost ComparisonPU without Metal Facing, CFC 10 wt% PUIF ODS SLIDES for PU Europe and ISOPA

11. Efficiency of ODS recovery / destruction • Theoretically, MSWI and HTWI can provide equivalent ODS recovery / destruction efficiency; • However, results from refrigerator foam ODS recovery suggest that lower recovery rates and higher diffuse emissions are very common in practice; • The type of collection and collection efficiency is not so important from a GWP perspective (Note: CFC-12 has a GWP of 8500). However, logistic issues are very important for cost reasons. PUIF ODS SLIDES for PU Europe and ISOPA

12. WasteManagenment Strategy Considerationsfor PU Europe and ISOPA • MSWI isthepreferred route for PU wasteclassifiedashazardous, but steel/cement route needstobefurtherexplored. • Joint PUEurope/ISOPA positioncouldbeprepared; • Correctbiasedandunfavorablestatements; • For example in UBA brochure 2009, page 6 • Input toCommission & MS withrespectto § 22 Recovery & Destructionofcontroledsubstances in ODS Regulation (par. 4: List ofproductsandequipment .. tobeestablished). • Evaluatealliancewithotherstakeholders (EXIBA) withregardtomeritsandrisksof a jointeffort: • Effectof FR containingfoams e.g. Fr-Brmakestheissuemorecomplexas MSWI operatorsmayhavespecialreasons for not acceptingfoamswith Fr-Br. • Broaderlobbyingeffortcouldleadto a betterresponsefromlegislators. PUIF ODS SLIDES for PU Europe and ISOPA

13. Appendix PUIF ODS SLIDES for PU Europe and ISOPA

14. Appreviations • CFC, HCFC (ODS) chemical compounds • EoL End of Life • EWC European Waste Cataloque • Fr- Br Brominated Flame redardant • GHS Global Harmonized System • H14 Hazard Criteria : eco toxcicity • HDW Hazardous Waste Directive • HTWI High temperature /hazardous waste incinerator • LoW List of Waste • MSWI Municipal solid waste incinerator • MS EU member states • ODS Ozone Depleting Substances • PU Polyurethane • UBA Umweltbundesamt (Germany) • WFD Waste Framework Directive PUIF ODS SLIDES for PU Europe and ISOPA

15. Collection Costs * wt % of PU waste coming from domestic sites (rest from non domestic sites) The calculation is based on the assumption that the average waste quantity per domestic sites is 0.5 t PU, per non domestic site is 2.5 t PU ** cost including collection, handling, transport gate fee, ... PUIF ODS SLIDES for PU Europe and ISOPA

16. ODS / PU Disposal & RecoveryCost*Total CostSensitivitybased on thefollowinggatefeesLandfill 50,70, 100 Euro/t, MSWI 80,150,300 Euro/t, ODS +Cement 50, 70, 100 Euro/t PUIF ODS SLIDES for PU Europe and ISOPA

17. Waste Management Strategy Considerations for Germany • Germany has a fairly high capacity of MSWI broadly covering most of the federal states; • The level of acceptance by MSWI to receive ODS containing PU foam seems to be high as shown from discussions with German Waste Incineration Association (ITAP). • Competition between the two routes: cement and MSWI for waste incineration is favorable for PU and should be followed up. PUIF ODS SLIDES for PU Europe and ISOPA

18. Waste Management Strategy Considerations for UK, IR • At present, UK has a rather untypically low 5 Mio t MSW incineration capacity, with a unfavourable geographical coverage of the country. • Additional capacity of 6 Mio t MSWI will increase the existing capacity significantly within the next five years. • The acceptance to receive PU with ODS depends on operators choice (old vs. new plant, capacity load, gate fee). PUIF ODS SLIDES for PU Europe and ISOPA