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Waste Management in Sydney: Now & the Future. Planning policy & laws Destiny of Sydney’s waste Putrescible (Class 1) waste Alternative Waste Technology facilities Gate Fees Class 2 waste Way forward. Planning. 1. Wright Findings Waste gen rate for MSW is 1.2% & 4.2% for C&I
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Waste Management in Sydney: Now & the Future • Planning policy & laws • Destiny of Sydney’s waste • Putrescible (Class 1) waste • Alternative Waste Technology facilities • Gate Fees • Class 2 waste • Way forward
Planning 1.Wright Findings • Waste gen rate for MSW is 1.2% & 4.2% for C&I • Predicted 200K t shortfall in permitted Class 1 capacity in 10/11, increasing to 1 Mil t in 17/18 • Annual inflow caps unnecessarily restrict use of available capacity; (DoP: caps to be removed in 2014) • Annual levy increases mean will be cheaper to use AWT rather than landfill by 2014
Planning 2. Infrastructure SEPP Change • Cl 123 amended July ’10 • Applies to new/modified landfills • ‘Justifiable demand’ criteria deleted; now focus to resource recovery & better environmental outcomes
Planning – SEPP change • Is there a ‘suitable’ level of resource recovery by using AWTs/composting SO THAT THE AMOUNT OF WASTE IS MINIMISED BEFORE IT IS PLACED in the landfill? • Is the LF on degraded land eg old mine? • Are transport links ‘optimised’ to reduce impacts of hauling waste to the LF?
Planning 3. Waste Levy • Introduced in 1993 @ $4.20/t; now $70.30 • To double by 2015 • Increases by $10/t + CPI per yr • Generates > $260 Mil; about 90% to consolidated revenue
Planning 4. Waste Avoidance & Resource Recovery Strategy • Set in 2003 • No increase in total waste generated for next 5 years • By 2014, increase resource recovery: • In MSW to 66% • In C&I to 63% • In C&D to 76%
Waste Scene - Pute Waste LFs • Woodlawn (Veolia): Mod DA for inflow to 1.13Mil tpa (extra 600K from Sydney). Currently 360K + 90Kt • E Ck: Mod DA approved for additional 1.6 Mil t capacity (extend life to 2017 @ 550K tpa). Currently 500Kt + 50Kt • Lucas Hts: 575Ktpa • Belrose: 60K tpa • South Windsor (Hawkesbury Council): 26K tpa • Remaining consented capacity: 29 Mil t (Woodlawn 22 Mil t & WSN 7 Mil t) ~ 17 yrs supply
AWT’s – pute waste • Earthpower (TPI & Veolia): $70 Mil plant; 80K tpa. Commercial food waste • UR-3R (Global Renewables): processes MSW for WSN; $100 Mil plant (187K tpa) • SAWT (Sita): $60 Mil plant (80K tpa MSW & 40K tpa food/green) • ArrowBio (WSN): $90 Mil plant (90K tpa); MSW
AWTs • AWT industry: - still learning by doing - not meeting resource recovery & financial expectations - new facilities not being built fast enough - saleable product? - feedstock quality?
Councils & AWT Contracts • Don’t believe the spin of service providers • Assume the technology does not work • Have provider PROVE their res recovery claims • No. 1 Priority: Due diligence on the technology – use those who have operational experience • Don’t think you can contract the risk away. When the technology fails you still carry the can • Don’t fall for the trap of tightly defining the waste feedstock; it will ALWAYS vary. You will pay more later if you do
MSW Gate Fees • Pute LF: $70 - 90/t + $70 levy • AWT: $100/t is not sustainable. Need $150-$230. Facility pays levy on residue to LF (might be 50% of inflow) • When will AWTs be the cheapest way to go? And at what gate fee?
Waste Scene – Class 2 LF • 49 Mil t capacity remaining; ~ 16 yrs supply • Lighthorse LF approved in Nov 09 (14 Mil t capacity) • Economically unattractive for recovery from C&I
How to improve the resource recovery rate • Have state Govt zone land for waste facilities/integrated eco parks • Implement EPR schemes • Have Govt policies that support thermal applications & use of RDF • Keep increasing landfill levy but give funds to good performing Councils • Apply a carbon price