BIOREFINERY AND TERRITORIAL STRATEGY: A PARTICIPATORY APPROACH

The Gruppo CAP Case Study

Brussels, 17/10/2019 SUMMARY

GRUPPO CAP

FROM THE SUSTAINABILITY PLAN TO THE MASTER PLAN

THE BIOREFINERY

BIOPIATTAFORMALAB: THE PARTICIPATORY PROCESS

CONCLUSIONS GRUPPO CAP

Investments of the italian water utilities – benchmark 2017

Investiments on Investments population on revenues

Medium/Big Water 34 €/p.c. 22% Utilities* CAP Holding 46 €/p.c 33% GRUPPO CAP - SUSTAINABILITY PLAN 2033

www.sostenibilita.gruppocap.it THE MASTER PLAN

. Gruppo CAP provides municipal water and wastewater services to over 2 million inhabitants, producing in 61 waste-water treatment plants where almost 80.000 ton/year dewatered sludge is produced.

. In such a scenario Gruppo CAP can and wants to deliver a circular economy approach. To this aim Gruppo CAP has defined a territorial Master Plan to implement eco-innovative and energy-efficient solutions to • renovate and innovate existing wastewater treatment plants • close the circular value chain by applying low-carbon techniques to recover materials that are otherwise lost.

. The existing municipal wastewater treatment plants can be renovated and integrated to become multi-purpose urban biorefineries that serve the citizens to treat and valorize municipal waste streams, such as wastewaters and organic waste, towards a coherent urban strategy

. In order to include leading edge sustainable solutions, the Master Plan (50 M€ budget) considers synergic interaction with large ongoing European Horizon2020 innovation actions, such as the “SMART-Plant” and the “Digital Water Cities” projects

. Existing anaerobic digesters will be valorized towards the best exploitation of the existing reaction volumes, industrial symbiosis opportunities will be explored in order to provide better and cheaper services to our customers

THE NETWORK – OUR PLANTS

Bresso Perform Water 2030 Perform Water 2030 Industrial effluents CHP and biomethane Thermal valorization of sewage sludge and P-recovery Anaerobic digestion Anaerobic for organic matters digestion for CHP and biomethane organic matters Pero Anaerobic digestion Grit and sands CHP and biomethane for organic matters + valorization VFA Perform Water 2030 – Heating distrcits research center Anaerobic digestion Perform Water Peschiera for organic matters 2030 Fertilizers

Robecco Fertilizers CHP Grit and sands valorization San Giuliano Anaerobic digestion Perform Water Solar for organic matters Fertilizers 2030

CHP Trezzano

Solar

6 WORKING PACKAGES - ENERGY

2017 2018 2019

ROBECCO 4.564.839 kwh produced 6% of the WWTP COGENERATION SESTO consumption PESCHIERA

13.000 MWh DISTRICT HEATING PERO estimated production

BRESSO Bresso 558 cars (15.000 km/y) BIOMETHANE PERO Pero 340 cars

TREZZANO 217.840 kWh produced PHOTOVOLTAICS BAREGGIO (estimation 2019)

6% of the WWTP consumption WORKING PACKAGES: NUTRIENTS

LINEA DI AZIONE 2017/2018 2019 2020

Conversion of existing volume SESTO (thickeners) -> Sludge fermentation: VFA 1ton VFA/d (Sesto) + 1ton VFA/d ROBECCO (Robecco) to be resued in substitution of C (moving towards SCENA-SMART PLANT process)

From biogas desulphurisation -> 1500 kgS/year BRESSO SULPHUR RECOVERY Ongoing test for concentration and recovery

PESCHIERA SAN 28% of our sludge in 2018 became FROM SLUDGE TO GIULIANO compost (mixed with garden ROZZANO FERTILIZERS waste) or fertilizer (calcium carbonate)

69.268.550 m3/year (21.8% total vol) REUSED 15 PLANTS WASTEWATER 2 plants direct reuse for agricultural and civil purpose (street washing trucks)

13 plant indirect agricultural water reuse SLUDGE MANAGEMENT STRATEGIES

. From 2016 we have redesigned our strategies with a «zero-landfill» approach. 2019 DESTINATION 2015 2016 2017 2018 estimate . From July 2016, due to some market negative AGRICOLTURE 56,00% 77,40% 69,70% 38,50% 32,12% externalities, we have pushed on sludge to fertilizers LANDFILL 40,00% 16,20% 1,10% 3,50% 9,33% solutions increasing, at the same time, sludge co- CEMENT INDUSTRY 4,00% 2,30% 4,70% 3,30% 2,98% incineration. FERTILIZERS 0,00% 0,00% 5,00% 23,30% 23,37% CO-INCINERATION 0,00% 4,10% 19,40% 31,40% 32,21% . From 2017, sludge disposal in landfills is < 1,5%

. 8 changes in legislation IN in less than 4 years… Evolution of production and average cost (* including fertilizers) . Disposal costs are increasing 100.000 140 124 120 80.000 115 100 . Unit costs by destination are now flat with no 93 60.000 84 80 correlation with potential nutrients/energy 75 /ton recovery opportunities

40.000 60 € ton/year 40 20.000 20 . From 2018 several water utilities have started - - sending sludges to other EU countries (200 €/ton) 2016 2017 2018 2019 2020 estimation simulation . How long would it be sustainable without new PRODUCTION (ton/year) AVERAGE COST (€/ton) strategies? How Fertilizers regulation will impact?

. Will End of Waste legislation in Italy support new initiatives?

THE BIOREFINERY

OBJECTIVE

Transforming the existing municipal waste incineration plant in in a Platform dedicated to the carbon neutral circular economy. A green and highly innovative hub, unique in Italy, with two production lines: the first dedicated to the processing of sludge from wastewater treatment for the production of thermal energy and fertilizers; the second focused on the anaerobic digestion treatment of organic waste for biomethane production. THE OPPORTUNITY

30.000 t/y organic 6000 t/y waste digestate to compost

62.000 t/y sludge + 220 mc/h 3.000 t/y dried biomethane sludge 6240 t/y ashes (phosforus recovey)

4.800 MWh/y electricity 27.600 MWh heat (district heating) TIME SCHEDULE

December 2016 MOU July 2018 Preliminary design and investment approved by Authority December 2018 - Stakeholders engagement GO from municipalities Beginning of BiopiattaformaLab September 2018 - participatory process December 2019 Detailed design and permits December 2020 June 2020 Works Tendering Commencement date November 2022 – OFMSW (organic waste) We believe in Citizens participation November 2023 - Sludge treatment

http://www.biopiattaformalab.it/ BIOPIATTAFORMA LAB

Participatory process

 BiopiattaformaLAB is the participatory process desired by the Municipalities of Sesto San Giovanni, , , and and implemented by CAP Group and Core to involve citizens in a public debate, to collect suggestions and proposals for the industrial symbiosis project that transforms the existing municipal incineration plant into a biorefinery for sludge.

 Started in 2016 with the discussion between the proposing industrial realities and the 5 Municipalities involved, it has been enlarged with the involvement of civil society and representatives of committees, associations, trade unions.

 The participatory process is coordinated by the third representative nominated by Nimby Forum, independent and autonomous that guarantees the transparency of the process BIOPIATTAFORMA LAB

First phase

In the first phase of the participatory process citizens have expressed the need to identify methods and tools for monitoring and controlling the activity of the plant.

• 1 meeting to present the characteristics of the project • 3 thematic meeting dedicated to specific issues of the project • 1 closing meeting to present the Report of the process

Second phase

• The second phase is explicitly dedicated to the constitution in a shared and transparent manner of an organization (Residential Advisory Board) that guarantees the possibility to the inhabitants of the interested municipalities to monitor the activity of the plant, to verify compliance with the commitments undertaken, which favors a continuous, transparent and constructive dialogue between the parties involved.

• Citizens are the key actors of the Board together with Industrial representatives and Municipalities

• The second phase will bring in December 2019 to the organization of a public meeting to formally present the RAB, its functions and Statute.

CONCLUSIONS

. Exploiting existing assets and promoting industrial symbiosis is crucial

. Sizes and economies of scale matter, we need networking and pioneers

. As Gruppo Cap we are ready to host initiatives and pilots to support Regional /National strategies and regulation

. The realization of the participatory path was perceived in a positive manner and reported as a discontinuity with respect to the methods normally adopted

. Importance to start a stakeholder engagement process since the beginning of the project to collect citizens’ consensus and implement decisions with a collaborative approach

THANK YOU! www.gruppocap.it