WRAP Cymru Advice & Guidance Workshop

WRAP Cymru Advice & Guidance Workshop 7 March 2013 Welcome

WRAP Cymru Business & Markets Programme Susan Jay Business & Markets Manager, WRAP Cymru

WRAP – working together for a world without waste • WRAP’S VISION:A world without waste, where resources are used sustainably. • WRAP’S MISSION: • To help businesses and individuals reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way.

Waste and Resources Action Programme • National Organisation • WRAP England • Zero Waste Scotland • WRAP Northern Ireland, and • WRAP Cymru • Each organisation receiving funding from regional governments and EU

WRAP Cymru - Aims • To deliver on WG targets set out in Towards Zero Waste • Working with businesses, consumers and Local Authorities • 6 key themes • Waste prevention and Preparing for Reuse • Consumption • Collection • Processing and Reprocessing • Remanufacturing and Market Development • Residual waste

WRAP Cymru Business and Markets Team • Business & Markets Manager • Sue Jay • Business Account Managers • Damian Walsh & Huw Lloyd (south) • Christine Melsher (north) • European Projects Manager • Bettina Gilbert • Grants Officer • Max Harvey & Andrea Mann

Headline Targets for 2012/13 • Diversion of (biodegradable) wastes from landfill • Savings of CO2 equivalent emissions • Primary resource use avoided • Cost savings • Business growth

Priority Areas of Work • Collection Systems/Infrastructure • Reprocessing infrastructure • Quality recyclates • Creating demand for quality recyclates in manufacturing

Closing the Loop

Knowledge and skills for the recycling and reprocessing sector • Consultancy support £20k • Marketing and market development • Operational and technical • Business Planning • Raising finance • IP/patenting • Management and Business Development (Interim Manager) £30k

Market Information • Market Knowledge • http://www.wrap.org.uk/recycling_industry/market_information/market_knowledge_portal/ • Access to expert advice from specialist teams in Cardiff and Banbury. • Market Situation Reports • http://www.wrap.org.uk/recycling_industry/market_information/market_situation_reports/ • Materials Pricing Reports • http://www.wrap.org.uk/recycling_industry/market_information/materials_pricing_reports/

Knowledge and skills for manufacturing • REMade in Wales – • Consultancy support to encourage innovation and development in the use of recycled materials in manufacturing of goods or packaging. • Improving resource efficiency in products, reducing use of virgin materials and providing market ‘pull’ for quality recyclates.

Accelerating Reprocessing Infrastructure Development (ARID) • Funded by the European Regional Development Fund, through the Welsh Government • To encourage all aspects of recycling, reprocessing, recovery and re-use. • Available to SME businesses in Wales Convergence region. • Funding available to end March 2015.

ARID Small Scale Grants • Commercial Recycling – Capital funding for SMEs to support growth in recycling provision for SMEs (collection services or bring sites) • Rolling programme • 40% intervention • Up to £50k grant • To divert over 65,000 tonnes of waste from landfill and create 50 new jobs

ARID Small Scale Grants • Recycled Content - Capital funding to support the introduction or increased use of recycled materials in goods or packaging. • Only available to manufacturing SMEs to improve recycled content of products or packaging • Rolling programme • 40% intervention • £50k maximum grant • To avoid use of 16,000 tonnes of virgin materials and create 16 new jobs.

ARID Large Scale Grant • Competitive Process • To encourage investment in reprocessing infrastructure • £200-£500k grant

eQuip • For the recycling/reprocessing sector • Helps companies secure financial assistance for new and second hand recycling plant and machinery. • Operated by Cranmer Lawrence & Company Ltd on behalf of WRAP • Provides an additional line of credit for the business with a ‘residual value’ guarantee's.

New Projects • Hospitality, Tourism, Food & Drink (SMEs) • Consultancy to review waste management options and reduce arisings(100% funded up to £10k) • Capital grants up to £50k for investment • Recycling on the Go • Targeting public spaces, events, venues etc • Capital grants to support investment in recycling equipment

Any Questions? • Thank you • susan.jay@wrap.org.uk • 07711 199 964 • 02920 448 090 • www.wrap.org.uk

ARID Reprocessing Infrastructure Fund Bettina Gilbert European Projects Manager, WRAP Cymru

Accelerating Reprocessing Infrastructure Development (ARID) • Funded through the Welsh Government and the European Regional Development Fund (ERDF). • Offers assistance to SMEs in Wales Convergence Regions. • Provides capital support to facilitate the development of the recycling & reprocessing infrastructure for C&I waste.

ARID – Strategic Alignment • Addresses the strategic objectives outlined in the Operational Programme European Regional Development Fund 2007-2013, Priority 4: Theme 2 and seeks to: • Enhance competitiveness; • Reduces costs for businesses; • Reduce (raw) materials usage; • Reduce waste and its landfill; • Reduce greenhouse gas emissions.

ARID – Strategic Alignment • Supports objectives set out in the Welsh Government’s ‘Towards Zero Waste, One Wales: One Planet’ • Delivery mechanism for actions identified in the Collections, Infrastructure and Markets Sector Plan (CIMs). • To achieve 2024-25 recycling targets: • New & innovative facilities to manage recyclate as new waste materials are targeted; • Need to develop reprocessing infrastructure, particularly for plastic film and non- bottle dense plastic & food waste treatment; • Quality of feedstock is an issue for reprocessors.

Local Authorities: Blaenau Gwent Bridgend Caerphilly Merthyr Tydfil Rhondda Cynon Taf Torfaen Neath Port Talbot Swansea Carmarthenshire Pembrokeshire Ceredigion Gwynedd Anglesey Conwy Denbighshire

ARID Objectives: • To reduce levels of C&I waste deposited in landfill through developing capacity to reprocess recyclable waste. • To promote projects which add value to recycled materials and ensure quality input materials are readily available for use by the manufacturing sector.

ARID Offer: • Small scale grants to develop segregated collection services for SMEs. Support for re-use activities will be available for services handling textiles, furniture and WEEE. • Small scale grants for manufacturing SMEs to increase the use of recycled materials in products and packaging. • Large scale grant for waste reprocessing infrastructure.

ARID – Future Funding • Fund for small scale reprocessing infrastructure investments: • £50k up to de minimis threshold • CIMS Plan target materials e.g. plastics (film and non-bottle dense plastics), card, treated wood, glass, WEEE, textiles and food waste; • Equipment considered vital to enhance and improve the quality of recyclates made available to the market; • Pull through effect – to increase demand for segregated C&I collections. • Eligible capital cost items include: • Optical sorters; • Eddy current separators; • Glass breakers and washing plants; • Wood shredders; • Screens; • Related infrastructure and building works.

ARID – Future Funding • Application Process: • Application Guidance Document & Form • De minimis declaration • External financial assessment for funding over £50k • Guarantee required for funding over £100K • Open application call • Monthly assessment panels • £1.6M budget • Targets: • Support 20 businesses; • Create 24 new jobs; • Divert 74,000 tonnes of waste from landfill; • Avoid 60,000 tonnes of CO2e emissions.

ARID Targets for Reprocessing Grants • £2.5M to be awarded by end March 2015. • Funding in excess of de minimis levels - normally up £500k, but can consider larger projects. • 40% intervention rate. • Target results: • Support at least 6 SMEs • Reduce 116,00 tonnes of C&I waste from landfill • Avoid 95,000 tonnes CO2(e) emissions • Create at least 7 new jobs.

ARID Priority Materials • Those covered by WRAP state aid notification (N517/2010): • Organics, compost; • Plastics; • Treated/contaminated wood; • WEEE; • Textiles; • Flooring, tiles, insulation & composites.

ARID Eligible Business Activities • New or expanded recycling and reprocessing capacity of Commercial & Industrial waste sources. • Focus on sectors producing the most C&I waste: • Food manufacturers; • Wholesale and retail sectors; • Accommodation, food services & hotels. • C&I as defined in the Controlled Waste (England and Wales) Regulations 2012.

ARID Project Criteria • Projects should be innovative or use conventional technologies in an innovative manner. • Give consideration to local markets for input and output materials. • Create a pull-through effect & promote segregated recyclate collections.

ARID Project Criteria • Follow best practice & take the Waste Hierarchy into consideration. • Must demonstrate a need for the proposed development and not displace exiting markets. • At least 50% of the waste comes from third parties. • Funding cannot be awarded for Research & Development.

ARID Criteria – Construction Projects • Premises constructed with a floor space of 1000m2 or more, or a site with an area of a hectare or more, must meet BREEAM ‘Excellent’ standard. • In addition – at least 10% of the total value of products materials used should be recycled or reused content. • Construction projects awarded more than €500k (approx. £430k), must have a billboard erected during construction displaying ERDF logo. • Once build is completed, this will be replaced by a permanent plaque.

ARID Eligible Costs • Capital costs to recycle or reprocess C&I waste including: • Plant & equipment • Civil engineering • Building works. • Grants cannot be awarded to projects as match funding to other European Funding instruments.

ARID Process • Competitive grant process. • Funding rounds open twice yearly. • Current round opened February 5th. • Applications to be submitted by 1.30pm, Tuesday 30th April 2013. • Projects must be completed by end March 2015.

ARID Example Projects • Treating & reprocessing of ‘challenging’ materials e.g. treated, contaminated wood, or composite materials. • Increasing the efficiency of existing facilities or reprocessing methods e.g. use of NIR to increase plastic polymer sorting. • Projects which will improve current recycling rates and/or quality e.g. solutions to increase textile recycling, recycling of carpets, or WEEE. • Projects recovering energy from waste will be considered providing this is the best option for the material, and the materials could not be readily used elsewhere – e.g. AD over IVC.

How to apply Mark Kinghorne Grants & Compliance Officer, WRAP

Capital grants within WRAP • To aid specific & strategic interventions in the market to address a specific need in a particular sector. • Always through an open competition – launch date/end date • Awards are made against defined evaluation criteria for applications • Applications are assessed by an assessment panel • The funding process is delivered within and governed by EU State Aid Regulations

Capital Grants – the Process • All grant applications received are not opened until the deadline has passed. • Each application is evaluated by a panel of assessors which includes WRAP internal staff, as well as independent environmental, technical, and financial assessors. • A member of the Waste Strategy Branch of the Welsh Government will also assess applications and attend the panel meeting.

Capital Grant - the process cont’d • Proposals which best meet the assessment criteria and will deliver the programme objectives are selected for funding. • The Panel may request further information or invite you to a meeting to discuss any points for clarification. • We will inform all applicants of our decision in writing, and we also offer feedback to unsuccessful applicants.

Capital Grant – the process cont’d • Contract will be drawn up (Please see Terms & Conditions) • Payments made against agreed milestones & in line with project spend profile. • In order to drawdown the grant fund you will be required to provide evidence of expenditure. (Please see guidance material) • Project monitor will be appointed to hold regular progress meetings throughout the project.

ARID Eligibility - SCOPE • Must be an SME. • Must be a capital investment. • Must be additional capacity to divert waste from landfill, landspread or land injection in Wales. • Must be fully operational by 31 March 2015. • Must be in Convergence area.

ARID Eligibility - SCOPE cont’d • Demonstrate a local need for the facility and not distort or be displacement of existing competition. • Viability of the project must be dependent on WRAP funding. • Secured sources of input materials and access to end markets. • Commercially sustainable with tonnages monitored for a minimum of 5 years.

Note the following.. • WRAP reserves the right to not assess any applicant who fails to meet published scope of competition and the application procedure. • Maximum percentage of support provided under this programme is up to 40% of eligible capital costs normally up to £500k. • Grants are exclusive of VAT.

Programme Timescale Panel assessment Environmental, H&S and Financial assessment Launch 5 Feb 2013 Deadline Tues 30 April 2013 at 1:30pm Contracts signed 30 Sept 2013 (latest) Draft contracts On site Environmental Audit Inform applicants wc3 June 2013 Project build phase FULLY OPERATIONAL 31 March 2015 (latest)

Evaluation Criteria • Overall value for money offered determined by: • Financial robustness of the proposal • Quality of the design of project facility • Quality of the arrangements for the facility outputs • Quality of arrangements for sourcing the input material • Applicants ability to deliver the project • Corporate environmental commitment & overall environmental impact of the new facility • Corporate commitment to Health & Safety

Howto apply • Guidance and Scope Documents: • http://www.wrapcymru.org.uk/content/arid-large-scale-infrastructure-reprocessing-facilities-wales-fund-wmd0023 • Written proposal – 25 pages A4 (double sided). • Application / proposal structured into 6 sections: • Contact & Organisation information • Executive Summary • Project description • Project Management & Project Plan • Financial information • Environmental information • Equal Opportunities

Contact & Organisation information • Name and registered address • Lead contact information • Organisation type/structure • Company number • Have you obtained Board approval • Guarantor contact information.

Project Guarantors • Forms part of the contract • Safeguard Public money • security for the value of funding support • Options: • Parent or Holding Company • Bank bond (for duration of contract) • Letter of credit • Third party company guarantee • First charge of project assets (cost involved) • Note: WRAP cannot accept personal guarantees

WRAP Cymru Advice & Guidance Workshop