Making the Most of the Sludge Market: a water company perspective

Simon Black Head of Recycling & Environmental Services - Anglian Water Director – Assured Biosolids N L I N C O L N S H I R E CHP B Pyewipe N E Newton L I N C S Marsh Over 70% of AW’s sludge is

N O T T S transferred by road to 10 STC’s!

Lincoln KEY Canwick Pre-pasteurisation + Digestion + Dewatering L I N C O L N S H I R E c.2.0m tonnes of liquid B Biological Hydrolysis+ Digestion + Dewatering Boston sludge is transferred from T Marston Thermal Hydrolysis + Digestion + Dewatering 1,091 WRC’s and a further

CHP N O R F O L K Co-composting B King’s Lynn 290k tonnes of dewatered Spalding King’s Lynn CHP CHP Installed Caister sludge to 10 STC’s Co-combustion plant CHP Tydd Norwich T Raw Dewatering only R U T L A N D Whitlingham Gt.Yarmouth P E T E R B O R O U G H Cake Reception Facility Peterborough Lowestoft L E I C S Lowestoft Raw Cake Export (primary destination) Market HarboroughCorby Flag Fen Raw Cake Export (secondary destination) Thetford Ely Thetford Kettering Huntingdon N O R T H A M P T O N S H I R E Wellingborough Broadholme CHP Bury St Edmunds B B Northampton Great Billing St Neots S U F F O L K CHP Cambridge Cambridge B E D F O R D S H I R E Bedford M I L T O N Haverhill CHP K E Y CHPN E S Bedford Ipswich B Cottonvalley T Cliff Quay Milton Keynes Leighton Letchworth Chalton O X O N BLinslade U C K S Colchester CHP Harwich & Dovercourt Hitchin Colchester Stevenage B DunstableLuton 156,000tds production forecast Clacton E S S E X c.22% of bioresources cost 2020/21, with treatment ChelmsfordCHP Jaywick Chelmsford can be attributed to the capacity of 175,300tds across 10 Basildon CHP Rochford collection and transfer of sites (157,770tds @ 90% Basildon B Rayleigh raw sludge to STCs SOUTHENDWest availability) THURROCK Canvey Tilbury Power generation

CHP Power (GWh) house

100 - in 90 O&Mbrought 80 70

60 HpH 50

40 Advanced AD Advanced 30 GtBilling

20 Conventional AD& CHP AD& Conventional 10 0 Treatment capacity Revenue forecast 2020……. AD plants – sewage sludge/OOW

Anglian Water STCs Other Organic Waste AD plants Current situation

Biosolids Source segregated AD Sewage sludge produced at 8,500 sites 473 operational plants in the UK – 329 are farm fed and 144 waste fed – capacity of 12.3 Mt Treated at 174 STCs producing 3.6 WRAP state 10.2 Mt of food-waste per annum, million wet tonnes/annum including 4.7 Mt from households Vast majority goes to agricultural land

Water Industry data - 2016 Data adapted from NNFCC and ADBA Sludge trading – an opportunity?

• Potential for sludge trading with 3 neighbouring water companies is limited: ▪ Cost of hauling liquid sludge (94-97% water) is high ▪ c.160,000m3 of liquid sludge (7.4%) could travel across the AW boundary • Opportunity with third party AD sites is much greater: ▪ 32 commercial AD sites, accepting food & other wastes, ▪ 25 industrial AD sites, ▪ 90 agricultural AD sites, all within the AW region • A significant reduction in haulage cost could be delivered in future ▪ Carbon/ vehicle emissions/congestion reduction • Market is likely to develop gradually, as additional capacity is required, if materials remain separate • Mandatory food-waste collections has the potential to significantly increase the quantity of food-waste available Environmental legislation – a trading barrier?

• Sludge trading between water companies - – No barriers, as Sludge Use in Agriculture Regulations (SUAR) apply – Limited potential (c.7.4% for AW) as haulage costs are high • Co-treatment including sewage sludge - – materials immediately deemed a waste, regardless of whether they are wastes in isolation – materials don’t meet any of the existing QPs /EOW standards & SUARs don’t apply – Co-treated materials require Standard Rules 2010 No. 4 and associated deployment for each 50 ha block of land – adds significant admin/permit costs, delays & associated operational cost – The opportunity is significant, but the associated legislation blocks acceptance – co-treatment in the water industry is currently falling – from 5% to < 1% – AW operated two sites and closed/is closing operations A clear need for change – reducing cost and environmental impact! Biosolids Assurance Scheme - BAS Water Industry initiative to provide reassurance to the food chain and consumers delivered by Assured Biosolids Ltd (ABL) a not-for-profit industry owned company Brings together regulations and best practice into a single transparent Standard Sets a minimum Standard – which protects the environment & creates a level playing field for all operators and contractors Stakeholder input and support are essential to maintain validity and credibility Third party audit by NSF Certification NSF Certification have achieved UKAS Accreditation for the BAS Standard Currently c.96% of UK output to agric. land is Certified https://assuredbiosolids.co.uk BAS Scheme Scope

Wastewater sludges and all other Excludes material for e.g. industrial input materials are subject to SLUDGE TREATMENT use & incineration Source Material Risk Assessments

Including transport and long term Controls on size, duration, location FIELD STORAGE storage sites etc. to protect the environment and receptors

Scope ends on satisfactory Extensive controls to protect soil, application to land environment and receptors

• Food waste already allowed (through SMRA), but Members still required to comply with relevant regulations • Could add additional controls as required A way forward • The EPR is a framework; the EA apply appropriate controls dependent on the risk: • A ‘new point’ e.g. hybrid permit • An existing control e.g. exemption • Using additional controls (perhaps BAS plus any amendments) as required, to reduce the risk, should allow a reduction in regulatory effort • Therefore reducing the cost and oversight required • Depends on demonstrating the controls already in place and potentially adding additional controls - further engagement with the EA (and others) Conclusions

• SUAR supported by the Biosolids Assurance Scheme (BAS) currently provides robust controls & assurance for biosolids recycling to agricultural land – biosolids is perceived as “a valuable resource, not as a waste” • Using additional controls (e.g. BAS plus any amendments as required) to reduce the risk, should allow reduced regulatory effort when materials are co-treated - • Allowing market development & ensuring efficient future investment. • Enabling sludge trading whilst protecting customer bills, the environment and the associated benefits the material provides. Thank you for listening