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Perspectives of Waste-To- Energy - Roadmap 2040

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Perspectives of Waste-To- Energy - Roadmap 2040 © Prognos AGPrognos© Perspectives of Waste-to- Energy - Roadmap 2040 - On behalf of ITAD (German Association of Waste-to-Energy Plants) Berlin|Dortmund|Düsseldorf August 2020 Background and task Data and fact base for the discussion of the perspectives of Waste-to-Energy* ▪ In the coming years, many municipal and private owners of thermal waste treatment plants (TAB) will have to make decisions on the replacement or modernization of individual incineration lines or entire plants. ▪ Against the background of the high investment costs and the long-term nature of the decisions, discussions have been going on for some time now about how many capacities or plants will be necessary in Germany in the future, ▪ therefore ITAD has commissioned Prognos AG in cooperation with Prof. Dr. Martin Faulstich to prepare the study "Perspectives for Waste-to-Energy - Roadmap 2040". ▪ The roadmap describes the development of plant utilization up to the year 2040 and considers the foreseeable changes in the range of tasks in the thermal waste treatment sector from various perspectives. ▪ The results of the study are presented in the form of 9 theses. *) Waste-to-Energy = Municipal solid and similar commercial waste incineration 2 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 Key messages Waste-to-Energy (WtE) 1 ... will continue to be fully utilized until 2040 2 ... guarantee safe disposal 3 ... ensure security in energy supply 4 ... are continuously modernized 5 ... support the recycling of household and commercial waste 6 ... make a contribution to climate protection 7 ... expand the municipal scope of action 8 ... is an important part of the Green Deal in the EU recycling industry... 9 … support the path to a climate-neutral Germany Bildquelle: AVG Köln 3 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 Waste-to-Energy 2040 ... focus on some details Bildquelle: AVG Köln 4 Waste-to-Energy 1 ... will continue to be fully utilized until 2040 Bildquelle: AVG Köln 5 1 WtE-plants will continue to be fully utilized until 2040. ▪ WtE primary competitive market: : • WtE-plants (MSWI + RDF power plants) • Cement plants (pro rata for comparable types of waste) • Coal-fired power plants (pro rata for comparable types of waste) • M(B)T with contracts for residual waste treatment ▪ Factors influencing the amount of waste to be thermally treated: • economic and demographic development • waste avoidance and/or recycling measures • changed legal classification, shifting of material flows from other disposal channels, new and additional waste flows Bildquelle: © Fotolia - Alexey Zarodov Bildquelle: Ralf Breer 6 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 1 Data and facts Market definition Waste-to-Energy WtE-plants are related to ▪ ∑ ~ 36,7 Mio. t and interact with other Total capacities in WtE and adjacent sub-markets for waste (sub)markets fractions typical of WtE * ** 27,0 Mio. t 1,7 2,5 ▪ Primary competitive Mio. t Mio. t Other power plants market 36.7 million tons: LCP 0,9 Mio. tTM • (pro-rata) capacities for comparable waste KVA 6,6 fractions in TAB Mio. t 2,3 * 1,3 ** Waste-to-Energy plants Mio. t Mio. t • M(B)T/MPS that have Cement kiln residual waste waste wood 5,8 Mio. t 1,6 Mio. t contracts power plants (>20 MW) M(B)T / MPS*** HWI Primary competitive market secondary and other competitive market flows between competitive markets Quelle: Darstellung Prognos AG 2020 7 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 1 Data and facts Facilities, capacities and utilization of TAB 100 27,0 ~ 96% plants Mio. t/a capacity Ø utilization / 2017 80% 92% 97% Quellen: ITAD, Eigenrecherchen Prognos AG 8 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 1 Data and facts Waste composition WtE 2017 MSW Import : (EWC 20 03 01) 5,7 % (1,5 Mio. t) 50 % 26,2 Mio. t 33 % 1 % hazardous waste Secondary waste 9 % (EWC 19 12 10 2 % sewage sludge EWC 19 12 12) others + 5 % other waste chapter 20 in-house waste …Quellen: ITAD Jahresbericht 2018, Destatis Fachserie 19, Reihe 1, ergänzende Eigenrecherchen und Hochrechnungen Prognos AG 9 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 1 Daten & Fakten basis for calculating future capacity utilization status quo-scenario scenario comprehensive recycling scenario relocation from other disposal options Updating 2017 revenue only under Individual and overall scenario for Evaluation of potentials through consideration implementation ▪ decommissioning of coal-fired • sector-specific development of ▪ ordinance on commercial waste power plants gross value added, ▪ packaging waste act ▪ Partial reclassification/closure of • population development, age ▪ seperate collection of bio-waste M(B)T structure and household size and greens (according to German ▪ additional proportional material • private consumer spending waste act) flows (e.g. sewage sludge, light shredder fractions, fine fractions of construction/demolition waste, waste • constant waste management containing POPs, European "division of labour") framework conditions ▪ effects of an output-based recycling rate 10 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 1 Data and facts Results of the balancing of waste quantities and WtE capacities Amount of waste available Capacities (WtE and coincineration for MSWI and similar waste) „lack of capacity“ ca. 2,4 Mio. t max status quo scenario scenario scenario scenario available available scenario comprehensive relocation available available capacity Capacity recyclng from other capacity capacity 100% 95,5 % disposal 90% 95% forecast 2040 options forecast 2040 MSW Industrial and commercial waste WtE-plants LCP Imports (EWC 191210, 191212, 200301) Cement kiln M(B)T …Quelle: Prognosen der Prognos AG 11 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 Waste-to-Energy-plants 3 ... ensure security in the energy supply Bildquelle: AVG Köln 12 3 Data and facts Energy production ITAD-members 10,6 GWh/2018 power prod. 8,3 GWh/2018 power export. - members 8,9 GWh/2018 heat export. 11,9 GWh/2018 process steam export. Quelle: ITAD 13 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 Waste-to-Energy-plants 4 … are continuously modernized. Bildquelle: AVG Köln 14 4 Data and facts Incineration lines and age and investment requirements up to 2040 > 200 23 11 35 years MSWI RDFI incineration lines Ø age of lines (years) Ø assumed need for modernization (basis: last furnce retrofit) 75 Mio. € 11 billion € 135 €/capita Ø modernization costs per WtE-capacity cumulative investment requirement until cumulative investment requirements up of 100.000 t/a 2040 to 2040 per capita - or just under 7 € per capita and year 15 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 4 Data and facts Modernization needs up to the year 2040 Modernization costs in € billion Modernization requirements - capacities in ∑ 11,1 billion € million t 4,6 cumulative modernization 6,1 costs until 2040 2,8 2,2 3,8 3,0 1,5 2,0 ≤ 2025 2030 2035 2040 16 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 Waste-to-Energy-plants 6 … make a contribution to climate protection. Bildquelle: AVG Köln 17 6 Data and facts WtE climate protection potential: burden and savings 2019 +9,5 -14,7 -5,2 Mio. t CO2eq Mio. t CO2eq Mio. t CO2eq emitted credits avoided waste incineration and use of substitution of fossil fuels for balance fossil energy for ignition and the generation of power, auxiliary firing process steam, district heating and metal recycling - member - member - member Quelle: ITAD e.V. 18 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 6 Daten & Fakten WtE climate protection potential : changes until 2040 ▪ higher emissions: Reduced direct and indirect emissions ? through Mio. t CO2eq ▪ lower credits for the ▪ Increase of energy efficiency substitution of fossil fuels and expansion of waste heat ▪ Increase in the separate utilization collection of metals and ▪ Capture of CO2 (CCU) target 2040: lower substitution rates in ▪ lower proportions of fossil- positive balance metal recycling based plastics on a petroleum basis or minimization of fossil-based - members waste fractions Quelle: ITAD e.V. 19 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 Waste-to-Energy-plants 8 ... are an important part of the Green Deal in the European recycling industry. Bildquelle: AVG Köln 20 8 WtE is an important part of the Green Deal. "Green Deal" ▪ New initiatives within the framework of the "Green Deal" to close landfills earlier, to establish recycling structures and to increase waste heat utilization are necessary in Europe to further reduce greenhouse gases European "division of labor” ▪ Availability of German TABs until the establishment of orderly material and energy recycling structures, especially in Eastern and Southern Europe Prerequisite: free capacities at home and viable, sustainable agreements ▪ Export also leads to the responsibility for taking back waste Bildquelle: © Europäische Union, 2019 - CORDIS, cordis.europa.eu 21 Perspektiven der thermischen Abfallbehandlung - Roadmap 2040 Waste-to-Energy-plants 9 … support the path to a climate neutral Germany. Bildquelle: AVG Köln 22 9 WtE-plants support the path to climate neutrality Circular Economy - Model of environmental and economic policy ▪ Integration of TAB into complex systems of recycling and resource conservation is an important step towards future climate neutrality. ▪ A circular economy cannot function without TAB.TABs make an important contribution to climate protection by avoiding
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