quarterly meeting december 2016 - wood recyling · 2019-08-23 · inova brignoles 180kt/a1 (jan...
TRANSCRIPT
Quarterly Meeting December 2016
Welcome all & a special welcome to our guests and new members
Company Name
Environment Agency Marie Fallon
Hawkins Iain Woodward
Jack Moody Robert Moody and Andy Bakes
UROC TBC
Poyry Lauma Kazusa
WRAP Debbie Palfrey
Bytronic Stewart Jackson
Agenda10.00 am – 10.10 am Welcome and Introduction – Andy Hill, WRA
10.10 am – 10.40 am The EA and the WRA – working together – Marie Fallon, EA
10.40 am – 11.10 am WRA Activity Update – Andy Hill and Julia Turner WRA
11.10 am – 11.25 am WRA Communications Update – Julia Turner WRA
11.25 am – 11.45 am Technical Update – Richard Coulson and Geoff Hadfield, WRA Board
FPP
Proposed EA Quick Wood Guide
Discussions on Wood Waste Classification
11.45 am – 12.05 pm Service Members Opportunity – Paul Caldwell, WRA Board
12.05 pm – 12.25 pm Insurance for Wood Recyclers – Tim Rogers, Waste Insure
12.25 pm – 12.30 pm Location and Timing of Future Meetings – Discussion
12.30 pm – 1.00 pm Lunch
Our Association
• Established in 2001 the overall aim of the WRA is to promote
the interests of its member companies and the wood recycling
sector in the UK
• It does this by:
providing an effective voice for the wood recycling industry in the
UK
influencing Environmental legislation
promoting the sector to policymakers
assisting members to understand and respond to changing
market conditions, legislation and regulation
providing a forum for the exchange of non-competitive information
acting as a research and statistical library for wood recycling and
other relevant market information
proactive engagement with other Trade associations in both the
UK and Europe
Macro view: England landfill performance
Source: Environment Agency
2014 2015%
change
Total Volumes
Arising (Mt)187 191.1 2%
Volumes to Landfill (Mt)
41.3 43.9 6%
Landfill Void (M3)
484 471 -3%
Incineration 8.6 10.4 21%
No landfill ban for Wood
What is wood recycling contributing?
• Circa 4.5 – 5 mil tonnes of waste wood
• 1 – 1.5 mil tonnes recycled, further 1 million tonnes to
biomass and further 1 million tonnes exported
• Since 2002 waste wood reprocessing grew by 1 million
tonnes
• Animal bedding - 100,000 tonnes in growth since 2007
• Biomass export - 300,000 tonnes in growth since 2007
• UK market set for transformation with new biomass
facilities
What is wood recycling contributing?
Operational
Construction
Project
= 700k tpa
= 1,8 Million tpa
Our sector is making a
significant contribution
to UK energy security!
Operational
Project
E-ON 800KT
Biomass
(Sept 2016)
Biosynergy 60KT/A2
(2017)
Sanofi St P les
Elbeufs 30KT/A2
(2018)
NovaWood
75KT/A2 (2018)
SAÏCA 70KT
(2018-2019)
Thiolet Paper-mill. St
Michel 80KT
Biomass (2018)
INOVA Brignoles
180KT/A1 (Jan
2016)
Massy Palaiseau
30KT/A2 (2016)
Kronospan
Auxerre 50KT/A2
(2016)
Engie 450KT
(2020)
Unilin/Aspiravi
180KT (2020)
France Biomass projects1million tonnes =
Removal of German Subsidies
Waste management targets set in waste directives
Legislative Text Year Collection Target Reuse Target Recycling Target
Packaging Directive
2008 Collection system
required
Overall recycling target 55%
Wood - 12,5%
Plastics - 22,5%
Metals - 50%
Paper/cardboard and glass - 60%
2025 Collection system
required
Overall recycling target 65%,
Wood - 60%
Plastics 55%
Metals - 75%
Paper/Cardboard 75%
2030 Collection system
required
Overall recycling target 75%,
Wood - 75%
Plastics – 85%
Metals - 85%
Paper/Cardboard – 85%
Target of - 40% GHG emissions
by 2030 (compared to 1990 levels)
Non-ETS sectors
GHG emission: 30%lower than in 2005
(Proposal)
EU 2030 Climate & Energy package
EU ETS System
CO2 emissions: 43%lower than in 2005
(Proposal)
Legislative proposal to revise the ETS system for the period 2021-2030
Legislative Proposal on:
Decision for non-ETS sectors in a
2030 perspective – 2016
The EU will publish a
Communication on Waste to
Energy - 2016
CO2 and carbon pricing - Emissions Trading Scheme (ETS)
Waste
Management
A co-ordinated industry…..
0
100
200
300
400
500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Am
ou
nt o
f F
ire
s
Year
Unregulated Regulated
How many fires have there been?
Source: Environment Agency
Environment Agency
Marie Fallon
Marie Fallon Working together to …
“Driving for the highest standards in health safety and environmental issues”
Fire Prevention Objectives
• Minimise the likelihood of a fire happening
• Aim for a fire to be extinguished within 4 hours
• Minimise the spread of fire within the site & neighbouring sites
16
Incident Data
17
• 2012- 2016 Incident Data (up to August)
• 262 Incidents – 24 Involved wood of some type
• Monitoring type & frequency
• Impact of fires on People and Environment
• Assessment of costs
• Impact of FPP’s
Current Documents
• Fire prevention plans: environmental permits – July 16
• Fire prevention plan consultation summary –September 16
• Review of guidance and test results – BRE September 16
18
Current Position
• 361 Fire Prevention Plans received
• 169 Approved Fire Prevention Plans
• Assessment Panel in operation – Will be phased out
• Majority of Areas and relevant national permitting staff trained
• Area teams make the final decision – Flexibility
• Network across agency i.e. Ports
• Working with Chief Fire Officers Association & CIWM on training packages for industry
19
Your concerns …….
Stack sizes and separation distances
Inconsistent approach by EA
Need for sector guidance
20
Our observations ……..
Business model for some sites ?Lack of infrastructure ie Fire Water Containment
Size of site & capacity for storage
Site locations Residents
Sensitive receptors ie railway lines, pylons
Monitoring Mixed picture
Links with Fire and Rescue Service
21
Our offer ……
Dedicated officers to work with WRA – Wood Template for FPP
Sector planning – have we got the best understanding of the market here and abroad?
Share similar Objectives – “Driving for the highest standards in health safety and environmental issues”
Future Regulation Agenda – Strategic Review Of Charges, EU Exit etc
Right Waste, Right Place, Right People
22
23
Update from the Board Meeting• Agreed to develop Code of Practice framework for
review and resource allocation at the next Board
meeting – Stakeholder focus
• Mapping of Stakeholders for allocation and
management
• Standing items
• Accounts/Financial position
• Technical Committee feedback on FPP & EA Quick
Guide for waste wood classification
• Update on Exec Dir priorities
WRA Activities Update
• Technical
FPP
EA Quick Wood Guide
Future Wood Waste Classification
• Fire Conference
• Site Visits
• Membership database Updating and Invoicing – A plea!
Stakeholder Engagement – Qtr 4• Informal liaison with Marie Fallon
• Andy and Julia met with the Automotive Waste Industry Alliance – October
• Discussions with Howard Leberman and wider wood waste industry
representatives, October and November
• Attended the CIWM President Inauguration – October
• Discussions with WRAP – Debbie Palfrey – October and November
• Andy and Julia attended the BAV Conference – November
What are the key UK issues?
• Flexible and proportionate regulation, e.g. fire prevention
• Wood grades and separation
• End markets/End of waste
• Industry Standards
• Image of the wood recycling sector
Where do we want to be?• Working with the regulator to develop more Wood Sector
bespoke and flexible solutions
• Enhancing the image of our trade association and its
members
• Raising industry standards
• Promoting products not waste
• Raising the profile of the wood recycling sector with key
stakeholders
• Improving the quality of WRA statistical, market and
scientific information
How do we get there?
• More evidence/science – possible collaboration with academic institutions
• Continued dialogue with the regulator but from a positive, collaborative perspective
• updating our Code of Practice
• Industry-wide collaboration
• Collaboration with European counterparts
Communications Update
• Ongoing media coverage on FPP including:
Major article in CIWM Journal November issue
Opinion piece in online newsletter Clarity Environmental
Influencing content and providing comments for articles in MRW, Lets Recycle and
Recycling and Waste World among others.
• Working with Lets Recycle to deliver Fire Conference
• Autumn/winter issue of the WRA magazine
• Collaborative PR approach with other trade bodies
Communications Update
Communications for 2017• Revamping of website to make it:
More appealing to visitors
More easily updatable
More newsy
Offer more to members
• Out to tender in January for a new look website launched
for the spring.
• Continuing to raise awareness of the WRA though the
general trade and specialist media.
• Working with ED to look at what WRA offers to members
in general
Technical Committee Update
Richard Coulson
Technical Group Update
• FPP
• EA “Waste Wood Quick Guide”
• Next Steps & Thoughts!
FPP –
• Legal challenge considered and decided against JR
Cost / time / resource / damage to EA relationships - all high risk.
• Aim now is to pursue our issues with the EA & Marie directly:Provide independent technical report to highlight current failings and
make recommendations for further scientific research requiredJointly commission this research?Take it’s output to improve / speed-up FPP “Flexibility”
• In the meantime feedback actual sites which are in stalemate and not living the “Flexibility” of FPP
• We have / will remain active in all relevant stakeholder working groups
EA “Waste Wood Quick Guide”• EA intention to produce an internal document for officers identifying the key issues
in handling waste wood
• In essence have concerns about hazardous wood waste:Their process starts with identifying if a material is a waste and if so hazardous or not.Concept of “All waste is hazardous unless you can prove otherwise” is gaining momentum for
woodEU accession countries are demanding further guidanceAn issue has been reported with hazardous Grade A timber
• Need to make your colleagues aware that EA officers are looking at how our industry handles hazardous wood waste now and give them some comfort
• Next StepsEA keen that we help drive the solutionWorking Group formed to feed back our recommendationsCurrent messages
o Reprocessors have raw materials specifications and procedures to identify and exclude hazardous wood
o This is low risk, what we do now is sufficiento The actual issue is low risk and is reducing – EA action needs to be proportionate
Thoughts / Next Steps: • Please communicate “In-flexibility” so we can feedback
• If you have “best practice” procedures re treatment of hazardous wood please forward
• Brief your colleagues and review your procedures on hazardous wood now
• CIWM will likely commission a specific fire prevention training course Q.2 next year.
Our stakeholders support this and we will advise of a potential wood specific session
• Comments from recent fire conference; “You may have preventative systems in place but do they work?”
• Saica Paper & Pyrosmart example; The system works but an operative ignored the warnings
• The association has a risk register, it needs your input
• Self Regulation – an association Code of Practice
Service Members
Paul Caldwell
Current Presentation format
• Service member talk
• 5 minute slot
• PowerPoint
• Only 3 Presentation slots available all year
• Not fair to all service members
New proposal
• Designated area
• Pop up stands
• Interval break to network
• £Cost to service members
• Set up time
Waste Insure
Tim Rogers
Insurance Market Overview – Wood Recyclers Association
www.wasteinsure.co.uk | [email protected]
www.wasteinsure.co.uk | [email protected]
Discussion Points
• Industry Statistics
• Market availability
• Insurer concerns
• Typical Policy Warranties
• Insurance Act 2015
• The Role you broker plays
www.wasteinsure.co.uk | [email protected]
The Recycling Market Explained:
• In recent years the recycling industry has suffered a number of major losses to property and plant through fire related incidents, which has seen many insurers withdraw from the marketplace.
• The insurers that remain have been forced to restructure their premium rating, reduce capacity and cover and in some cases invoke unworkable policy conditions.
• We must stress that the figures quoted do not include non-reportable / near misses.
Claims Cost:
• Average Premium circa £100,000
• Property / Plant & Business Interruption
• Total Estimated Maximum Loss £5,000,000
Year Reported Incidents Average Per Day
2011 425 1.16
2012 300 0.82
2013 310 0.85
10 Year Average (2001-2012) Average Per Day
355 per annum 0.93
www.wasteinsure.co.uk | [email protected]
The Insurance Market Explained 2016:
Market Capacity:The capacity available in today’s marketplace has reduced by over 85%.
• Many of the more familiar/better known insurers have withdrawn from the market for the foreseeable future.
• The recent demise of the non-rated insurer, Gable Insurance, means the Lloyds of London market is really the only ‘A’ rated capacity to write waste recycling Property & Fixed plant risks.
• The following demonstrates market capacity.
Local Composite Markets:
Lloyds & London Market:
Insurer Cover Line Comments
Allianz Mobile Plant Only Existing business
OAMPS Liability only Niches Waste lines only
AVIVA Property/Plant Niche Waste Lines only
Zurich Mobile Plant?/ Property/ Liability
Niche Waste Lines only
QBE Plant/Property/Liability Existing Business Only
Market Cover LineHiscox, QIC Europe Ltd (DILM) Property & Machinery
Nationale Suisse Machinery & Property
Aspen/ Open Market Certain classes
HDI Gerling/ Open Market Certain Classes
www.wasteinsure.co.uk | [email protected]
The Recycling Market: Insurer Concerns
Sept 2016 South Wales - A deep-seated fire of around 3,000 tonnes of woodchip in a stack that was 15m high, 20m wide and 100m long.
Dec 2016 Gloucestershire - A deep-seated fire at a Garden & Waste Recycling facility requiring up to 50 firefighters – Est.£7-8M
Dec 2016 - Fireballs and huge plumes of black smoke engulfed the town and its surroundings – Est £12m
www.wasteinsure.co.uk | [email protected]
The Recycling Market: Insurer Concerns
Throughput of WasteSecurityStorage/Space
www.wasteinsure.co.uk | [email protected]
Typical Policy Conditions and Warranties
Policy Wordings & Conditions:
• The majority of the market now share standard policy conditions therefore prior to finalising renewal terms it is imperative these are reviewed as early as possible.
• Any condition that can not be managed must to discussed and agreed with the underwriter before commencement of the policy.
• If in the event the condition cannot be amended / removed, your internal measures can be implemented to minimise any potential risk.
• Common policy conditions are:
• No storage / waste within a 6m / 10m radius of the building
• No storage / waste within 2m‘s of a boundary fence
• No machinery / plant within 10m of the building
• No storage / waste on work surfaces / under machinery
• No internal waste within 2m’s of any plant / machinery
• Regular dust extraction and clean up
• Stock Control Measures
• Storage and waste in the open exclusion
• 30 minutes machinery shutdown procedure
• Same day processing
• Financial Profit & Loss accounts condition
Storage of Waste in the Open Exclusion:
The insurance does not cover Damage caused directly or indirectly by or arising from stock and/or Waste Material in the open or subsequent Damage to any other property resulting therein.
Stock Control Measures:
It is a condition precedent to liability of the Insurer that the Insured shall ensure that if piles of materials are likely to stand for more than 72 hours, the spontaneous combustions risk should be re-evaluated. Revised and updated control measures should include the use of an infra-red heat gun and/or metal probes. Daily checks should be implemented on suspect materials and records should be kept.
Financial Information Condition Precedent:
It is a condition precedent to the liability of Insurers that the Insured produce to Insurers a recent (i.e. not more than 2 months old) profit and loss statement and balance sheet within 7 days of inception of the policy.
Without prejudice to the foregoing, upon receipt of the profit and loss balance statement and balance sheet the Insurer reserves the right at their sole option to cancel the policy on the giving of 14 days’ notice. In the event of cancellation, the Insured shall be entitled to proportionate return of premium unless a loss has arisen for which the Insured seeks indemnity under this Policy, in which case the Insurer shall remain entitled to the full premium.
www.wasteinsure.co.uk | [email protected]
The Insurance Act• ‘Fair presentation of the risk’ to the insurer
• ‘Reasonable search’ for material information
• Warranty breaches can now be remedied– Cover resumes once breach has been remedied.
– Deliberate/reckless breach = Avoidance of policy, refusal of all claims and retention of customer’s premium (just as now).
– Not deliberate/reckless = Proportionate remedy will apply.
• Abolition of ‘basis of contract’ clauses.
• Insurers may ‘Contract out’ of the Act.
www.wasteinsure.co.uk | [email protected]
The Broker Role
• Insurance Broker, Risk Advisor or both?
•Your Broker is your voice in the marketplace
•Start the renewal process early
•Agree all Warranties in advance
•Look at risk transfer options
•Pre-cover surveys
•Quarterly / Six-monthly review of cover
www.wasteinsure.co.uk | [email protected]
The End!
Location and Timing of Future Meetings -
Discussion
Lunch & Networking