March 8, 2006

Vermelding onderdeel organisatie

1

SPM9539: Economy, Ecology and Technology of networked industrial complexesWeek 5 – course 1: Industrial Ecology

Gerard Dijkema

Faculty of Systems Engineering, Policy Analysis and Management. Department of Energy & Industry

March 8, 2006 2

Industrial Ecology (1)

A system that: "would maximize the economical use of waste materials and of products at the ends of their lives

as inputs to other processes and industries.“ Frosch, 1992

"One of the most important concepts of industrial ecology is that, like the biological system, it rejects the concept of

waste.“ Graedel and Allenby, 1994

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Industrial Ecology (2)

Industrial ecology (IE) encompasses the following concepts:

• material and energy flow studies ("industrial metabolism").

• eco-industrial parks ("industrial symbiosis").

• life-cycle planning, design and assessment.• dematerialization and decarbonisation.• design for the environment ("eco-design").

• extended producer responsibility ("product stewardship").

• product-oriented environmental policy

Process

Product

Actor

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Types of industrial ecosystems

Macro: Industrial processes as a whole:• Local, Regional, National, Global.

Meso: Sector interrelationships:• The Eco-Industrial Park.

Micro: Individual consumer/producer behavior:• Industrial Symbiosis.

March 8, 2006 5

Economic benefits of IE

Generic hidden resource productivity gains:• Within firm:

• eliminating waste• Making plant more efficient

• Within value chain: • reducing costs • Synergies between production and distribution

• Beyond production chain: • closed loop• Eco-Industrial parks and inter-firm relations

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Economic benefits for companies

• Cost Savings & Enhanced Competitiveness.• Revenue Generation.• Reduced Liabilities.• Improved Opportunities for Investment.• Access to New Technology.• Improved Human Resources.• Revenue Generation.• Enhanced Public Image.• Market Leader.

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Community economic benefits

• Improved business attraction, expansion, & retention?• Local import substitution?

• Depends on prices?• See our ‘bio food’.

• Brownfield redevelopment.• Reduced infrastructure development costs?• Improved quality of life.

March 8, 2006 8

Environmental benefits

• Reduced greenhouse gas emissions• Reduced air emissions & improved community health• Promotion of pollution prevention & the 4 R’s (Reduce,

Reuse, Recycle, Recover)• Improved resource conservation• Promotion of green technology• Increased environmental awareness• Regeneration of green space

March 8, 2006 9

Barriers to IE development

• Suitability of materials to reuse.• High cost of recycling (internalise negative externalities).• Information barriers (must set up reciprocal

relationships between sectors).• Organizational obstacles.• Institutional Barriers (need fiscal and regulatory

government intervention).• Most theories are prescriptive / wishful thinking.• Economics of production prevail over green imago.

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Relieve barriers

Some of the barriers may be lifted by:• Providing subsidies to mitigate negative externalities.• Creating organisations primarily concerned with

information sharing on IE.• Defining a long term sustainable industrial policy on

(pan) national level.• Public can demand more sustainable production

methods (increase green imago significance)• … Many others may be thought of…

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Eco-Industrial development?

“The creation of job opportunities through industrial expansion, especially in economically distressed communities, by applying principles

of industrial ecology, establishing eco-industrial parks, and expanding use of environmentally benign manufacturing

processes and techniques.”

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Eco-Industrial park (1)

• An industrial park that is designed to increase the economic return at the same time it decreases it’s ecological impact.

• Models in use:• By-product synergy.• Resource recovery park.• Green technology park.• “Resource circulating economy”.• Application of eco-industrial strategies, such as:

March 8, 2006 13

Eco-Industrial park (2)

An industrial park developed through the application of eco-industrial strategies such as:

• Waste heat recovery.• Cogeneration.• By-product exchange.• Green building development.• Creation of new eco-industrial industries and

businesses.

March 8, 2006 14

Eco-Industrial park prerequisites

• Material, water, and energy flows.• Companies within close proximity.• Strong informal ties between plant managers.• Minor retrofitting of existing infrastructure.• One or more anchor tenants.

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By-product exchange (1)

Municipal Recovery Facility

Ethanol Production

Furniture Factory

Particle Board Factory Recycled Paper

Manufacturer

WastePaper

Scrap Wood Sawdust

Aquaculture Biomass

Cogeneration Facility

SteamSteam

March 8, 2006 16

By-product exchange (2) Ethanol By-Products:

LigninGypsum

Yeast

Ethanol Plant

Major Inputs:

• Agricultural residues or Wood wastes

• Sulfuric Acid

• Steam from a Cogeneration Facility

Potential Exchange Partners:

Wallboard Manufacturer

Animal Feed Manufacturer

March 8, 2006 17

Industrial symbiosis: Kalundborg

Saves resources:• 30% better utilization of fuel using combined heat +

power than producing separate• Reduced oil consumption• 3500 less oil-burning heaters in homes• Does not drain fresh water suppliesNew source of raw materials• Gypsum.• Sulfuric acid.• Fertilizer.• Fish farm.

March 8, 2006 18

Industrial symbiosis: Kalundborg

March 8, 2006 19

The future of industrial ecology?

March 8, 2006

Vermelding onderdeel organisatie

20

Community revitalization and eco-industrial developments in Duluth-Superior lake area

Project by and Slides fromSangwon Suh, Ph.DUniversity of Minnesotasangwon@umn.edu

March 8, 2006 21

EIP benefits

• Provide the member facilities a renewed ‘reason’ to be there.

• Reduce raw material procurement and waste treatment costs.

• Integrate the member facilities within themselves and with the local community and the local government.

• Obvious environmental benefits

• GD: focus on ‘local community’

March 8, 2006 22

EIPs locations in the US

PCSD Demo Sites

Other EIPs

March 8, 2006 23

Community revitalization plan

• Eco-Industrial Development (EID) as a mean for community revitalization• Governors and Congresses of Minnesota and

Wisconsin• Mayors of Duluth and Superior• Minnesota Pollution Control Agency (MPCA)• University of Minnesota, University of Superior-Lake• Department of Energy (DOE)

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Duluth-Superior Lake

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Duluth-Superior Lake

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Duluth-Superior Lake Area

• Population

0

50,000

100,000

150,000

200,000

250,000

300,000

1880 1900 1920 1940 1960 1980 2000 2020

Year

Popu

latio

n

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Duluth-Superior Lake Area

• Industry• Traditionally: a renowned international harbor

• Main export items: mining products, timber, agricultural and wood products

• <GD: Forest-Based Industry / Pulp & Paper>• Main import items: motor vehicle, manufacturing

products• Today:

• Military equipments, mining industry, University, water transportation

March 8, 2006 28

Community revitalization plan work flow

• Governors and Mayors expressed their supports• State congresses have discussed related legislative

issues• Integrated biorefinery project is identified as the first

milestone• Regional EID center is established and recognized by

the two State governments

March 8, 2006 29

Integrated Biorefinery project

• Work flowLocation searchDesign team meetingBusiness plan set upEstimate budget requirementsArrange necessary legal issuesContractor search / negotiation / constructionTest operation / full operation

March 8, 2006 30

Location search

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Location search

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Location search

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Neighboring facilities

Main facilityMain facility

z

Cement kilnCement kiln

Grain processingGrain processing

WastewaterWastewaterTreatmentTreatment

zMurphyMurphyOil companyOil company

zJeff FosterJeff FosterTruckingTrucking

March 8, 2006 34

Location search

March 8, 2006 35

Location search

• Area photo

March 8, 2006 36

Location search

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Location search

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Location search

March 8, 2006 39

Gasification-ethanol production combined cycle

Tire (100Kt/yr)Sewer sludge (36Kt/yr)

Demo deb (80Kt/yr)

Water

Natural Gas

HT steam

100MW elec.

Bio-ethanolproduction

Ethanol

Murphy

30 million $

3 million $ (tipping)

6 million $

20 million $

purificationHeavy metalsand residues

LT steam

Black water(to be recycled)

Bottom ashSlag

HT syngas

HT steam

Quenching chamber

Oxygen

March 8, 2006 40

Pressing process

Grinding Forming Pressing

Cutting and finishing

Desk top

Door cores

Room dividers

Paper sludge

Cardboards

Water Elec.

water

Heat

steam

0.5 million $ 0.5 million $ 0.25 million $

0.25 million $

March 8, 2006 41

Combined process

Grinding Forming Pressing

Cutting and finishing

Desk topDoor cores

Room dividers

Paper sludgeCardboards

Water Elec.

water

Heat

steam

Hydroponic greenhouse

Tire (100Kt/yr)Sewer sludge (36Kt/yr)

Demo deb (80Kt/yr)

Water

Natural Gas

HT steam

100MW elec.

Bio-ethanolproduction

Ethanol

Murphy

30 million $

3 million $ (tipping)

6 million $

20 million $

purificationHeavy metalsand residues

LT steam

Black water(to be recycled) Bottom ash

HT syngas

HT steam

Quenching chamber

Distilled spirit

2MW

March 8, 2006 42

Integrated Biorefinery project

• Inputs• Waste tires• Wood processing wastes• Demolition debris • Paper mill sludge• Wastewater treatment plant wastes

• Useful outputs• Ethanol (64 mil gallon per year = c.a. 20 mil $ p.a.)• Electricity (6 mil $ p.a.)• Heat and Steam• Composite wood products (3 mil $ p.a.)• Tomato• Waste treatment services

March 8, 2006 43

Design choices: spatial configuration

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Budget requirements

• A first step for community revitalization• Cost estimates

Core refinery process 150 mil $Railroad arrangement c.a. 30 mil $Shoreline reconstruction c.a. 100 mil $Greenhouse c.a. 1.5 mil $Press and others c.a. 1 mil $Total c.a. 230 mil $Total direct investment c.a. 153 mil $

• Expected investment recovery time: 5 - 6 years (c.f. > 15 years)

March 8, 2006 45

Expected impact on the regional development

• Low cost electricity supply to the region• Low cost ethanol supply to the region• Low cost waste treatment option• A new gateway that connects inland water, road and

railroad transportation• New center of the region’s logistics hub - energy

production - waste treatment• A vital step toward the EID of the region• A symbol for biorefinery-based EID