Material Flow Management: A Strategic Approach to … Flow Management: ... Continuous improvement...

Material Flow Management: A Strategic

Approach to create Green Business

Opportunity using Carbon Trading

Global Experiences from a leading

German Non-Profit Research Institut

Curitiba, 17.06.2010

Dr. Michael KnausHead of the International DepartmentInstitut for applied Material Flow Management (IfaS)Phone: ++49 6782 171583E-Mail: m.knaus@umwelt-campus.de

Outline of the Presentation

Zero Emission Campus Birkenfeld

Institute of applied Material Flow Management

(IfaS)

MFM, Circular Economy & Sustainable

Development

Case Studies selected IfaS projects

Conclusion

The Environmental Campus Birkenfeld:

Sustainable Education or Education for

Sustainability

more than 150 professors (60 at ECB)

international students from more than 60 countries

more than 150 international university cooperation

more than 10 research institutes

more than 6.500 students

4.000 in Trier,

2.400 in Birkenfeld

100 in Idar-Oberstein

Facts and Figures

US Military Hospital in Birkenfeld from 1953 until 1994

Aerial View of the Past

ECB – The Zero Emission Campus

Ecological Campus Conception

Zero-Emission Heat and Energy Concept

Active and Passive Utilisation of Solar Energy

New: Zero-Emission Water Concept

Energy Efficient Building Conception

Flowchart Ecological Concept

Solar Energy Utilisation

Photovoltaic: Facade-Integrated & Art

Solar Thermal Applications

Neighbouring Eco-Industrial Park

Intelligent Market Price Design

Zero-Emission Heat and Energy Concept

Energy demand is covered by neighbouring Combined Biomass Heat and Power Station

Electricity Demand: 1.000 MWh/aAbatement Potential per anno: 550 t CO2e

Based on the German Energy Mix: 550 g/kWh CO2e

Heat Demand in total: 2.000 MWh/aAbatement Potential per anno: 500 t CO2e

Based on the German Heat Generation Mix and 250 g/kWh CO2e

Renewable Energy Production: 300.000 kWh/aAbatement Potential per anno: 165 t CO2e

Based on the German Energy Mix: 550 g/kWh CO2e

Other Innovations

Zero-Heat-Energy Student Dormitory [Passive

House Standard]

Modular Boarding House [Timber frame – less

embedded energy]

Innovative Waste Water Management

at the Environmental Campus Birkenfeld

a) Recycling plant for the

treatment of organic

solid and biological

b) Recovery of Nutrients

c) Natural waste water

treatment with service

water recirculation and

biomass production

d) Natural water pond for

recreation

Introduction of IfaS

Definition Research Focus

MFM: A tool for Green Business Development

Current IfaS Projects Short List

- Zero-Emission-Strategies, Circular Economy and Climate

Protection Concepts for Cities, Regions and Universities

- Clean Development Mechanism and Carbon Footprint:

Training and project development in Europe, Asia and Latin

America

- EU Innovation Projects: PROGRASS, SOLLET, VERC,

- Sustainable Water Management Projects in Africa and Middle

- Analysis & Regional Implementation of Biomass-Projects in

Germany, Turkey, Chile, Brazil, China, Marocco

- Master Programs in International Material Flow Management

(IMAT)

- .....

Present Throughput Society (without MFM approach)

Related Purchasing PowerMaterial / Energy Flows

Potentials

Circular Economy with MFM approach

Financial ResourcesMaterial / Energy Flows

Potentials

Activated Regional

Resources

Regional added value

IfaS Network and Partners in 22 Countries

Circular Economy, 3 R s Society and

Material Flow Management Economy

UNU - Zero Emission Approach

What are the Aims of MFM?

Systemic (energy/material) efficiency increase

Decrease operating costs

Create stakeholder networks

Activate regional potentials

Create and maintain jobs

Support innovative SME

Create a sustainable economy/society

Enhance regional added value!

What is Zero Emission?

Differing approaches and definitions!

Management- und marketing approach

Continuous improvement process (KAIZEN)

CO2equ. neutrality of systems (on a balance approach)

Sustainable utilisation of „waste water and waste“

ZE stands for a systemic, interdisciplinary optimisation approach with elements of sufficiency, efficiency and substitution.

MFM Methodology

Definition of material and energy flows in a system to be analysed and optimised

Material Flow Analysis (MFA - on site visits, questionnaire, interviews, statistical data)

Quantities of defined material and energy fluxes

Qualities of defined material fluxes

Place of Origin/Logistics of defined material fluxes

Identification of major efficiency, sufficiency and optimisation potentials

Identification of regional key stakeholders and decision makers

MFM Methodology (cont.)

Formulation and development of key MFM projects in

close cooperation with key stakeholders

Business planning and Environmental Impacts

Assessment for key projects

Setting up Joint-Venture(s) for the project

implementation

Aggregation of key projects and set up of Circular

Economy Holding

Regional MFM Development Process

Analyse Phase

Stakeholder analysis

Demand Side Analysis

Heat energy demand of buildings and industry

Electricity demand

Freshwater demand

Disposal Side Analysis

Waste water / waste (quantities, qualities and current treatment structure)

Potential Analysis

Energy Efficiency Potentials

Biomass

Solar power (roofs and other areas)

Wind power

Waste heat

Current CO2equ.-Balance

Demand Side Optimisation Strategy

Strategy Planing and Project Development

Definition of project ideas and actions

EE in buildings

District heating grids

Initiate Feasibility studies

Technical Feasibility

Economic Feasibility

Environmental and Social Impacts

Initiate Implementation

Stakeholder Management

Identify additional financing options like GHG emission trading

Identify bilateral cooperation and technology transfer models like BOT

Example Energy

Waste or Resource –

Problem or Opportunity?!

50 litres of oil and 600 kg fertilizer or waste?

Current Status Quo in Marga-Marga

The total amount of MSW (~ 100.000 t/a) is still disposed at

the Landfill Site Quilpué(non-sanitary landfill) although the

operation permit is deemed since 2007.

The alternative (without the project) would be the

transportation to and disposal at the El Molle or Til-Til landfill

The “recycling action” is currently organised by the “grey

sector”

The organic fraction is not properly utilised, yet. A minor

portion (4000 t/a) is used for composting

Chile still having no comprehensive waste management law

or ordinance comparable to the EC landfill directive (with

priority on material and energy recovery).

LFG flaring projects constitutes the state-of-art

Current Status Quo in Marga-Marga (pics)

Project Aims

The ultimate goal is to establish a sustainable resource

management system based on Circular Economy

principles with the following elements:

Material recovery (urban mining) by means of full

exploration of recyclables

Energy recovery with focus on biogas production

utilising the organic fractions

Minimising the assigned GHG emission in the waste

management sector

Local training and capacity building

Disposing inert materials only

Additionality Marga-Marga

Defined Project Alternatives:

1. Continuation BAU – not possible because the landfill in

Quilpué is already overflowing

2. Construction of a new landfill

3. Disposal at El Molle (total amount or excluding

recycables)

4. Disposal at Til-Til (total amount or excluding

recycables)

5. MSW Incineration in a new incineration site

Project Activity: Construction of a recycling centre

with focus on “mechanical biological treatment

technology” and disposal of inert materials at El Molle

Economic Analysis of the Alternatives

Pre-Requiste had been: No higher treatment cost per unit (t) than the alternatives.

Total investment was not an issue due to access to federal governmental loan programs

MFM Concept Resource-Centre

Economic Parameters of the Project Activity

Costs per ton depending on the development of Secondary Raw Material Markets

16,1115,94

15,7715,59

15,4215,25

15,0714,90

14,2114,03

13,8613,69

13,5113,34

14,55 14,38

10,00 €

10,50 €

11,00 €

11,50 €

12,00 €

12,50 €

13,00 €

13,50 €

14,00 €

14,50 €

15,00 €

15,50 €

16,00 €

16,50 €

-70% -60% -50% -40% -30% -20% -10% 0% +10% +20% +10% +40% +50% +60% +70% +80% +90% +100%

Operative Results

Baseline

Emission Reduction Potential

Main Economic Drivers

Socio Economic Results

Socio-Economic Parameter

Evaluation Results

BAT concept BAU Scenario

CIDITEC BENSAL Concept

VAC- Net present cost value (in €) -1,333,364 -1,357,258

CTT- Treatment costs per unit (in €)-11,39 -11,67

Creation of new Jobs 120 - 188 40 - 64

Emission Reduction Potential in t CO2e 2,827,309- Transportation

emissions

Operating Costs in € per t of MSW

including transportation and disposal 10.16 € 18.55 €

Value Added Tax Potential (VAT 19%)3.346.560 + /- 0

Further SD impacts (cont)

Indicator BAT BAU

Total MSW disposal (t)

without pre-treatment

0 3,501,709

Total recyclable recovery

Metal: 46,514

PET: 13,741

Plastics: 99,558

Paper: 77,864

Glass: 22,750

None, recycling

actions are not

foreseen

Total energy recovery (20y) Biogas (Nm3): 218,133,316

Electric Energy (MWhel): 284,549

Thermal Energy (MWhth): 442,002

Secondary Fuel: 1,096,315

Non, energy

recovery actions are

not foreseen

Technology and policy

innovation potential

Incremental innovation due to

BAT approach

Gradual

improvement due to

sanitary landfilling

Energy efficiency through material recycling

Savings are equal to a yearly energy demand of a large city (appr. 440.000 inh.)

Climate protection through waste treatment

LFG Flaring - Not an option for regional added value!

Ressource Center instead of landfill!!

Circular Economy vs Throughput Economy

less than 4% of the Sahara area is sufficient to cover world

electricity demand

Sustainable Energy Strategies

The vision: MEDA Low-energy house

3) Solar or

geothermal

energy

1) Design & shading

MEDA Low-energy house:5-10% incremental cost,

40-50% energy saving / comfort increase

5) EE appliances:

lighting, white goods,

office equipment, etc.

2) Insulation of roof,

walls and windows4) HVAC (heating, venti-

lation, air conditioning)

6) Behaviour

Sustainable Buildings:

Energy Producer of the Future

Link: http://www.juwi.de/fileadmin/user_upload/Unternehmen/Neubaubroschuere_12_2008.pdf

Circular Economy City Planning

Energie-

Management

Verbraucher

Wärme

Verteilungs-

Interaktive

Zähler-

technik

Haushalte Industrie

Erzeugung Speicherung

Wind Sonne Batterie+

Verbrauch

Biomasse Gas

Wasser

Prognose, Planung, Optimierung, Regelung,

Überwachung, Erfassung,Kommunikation

Erzeuger /

Speicher

Decentral Energy Management System DEMS

(Siemens, Pfalzwerke Utility, EU)

Renewable Energy Price Development

Conclusion

MFM is leading to more sustainablity and regional

added value

CDM could be a powerful tool and co-financing

mechanism

Best investments are green….and

CAPACITY BUILDING!

Invest in IMAT s

IMAT®:

Sustainable Education

or Education for

Sustainability

Interdisciplinary Education for Sustainable Development

Sound knowledge in Clean Technologies and Business Planning

Training in Zero Emission System Design

Applied Research for Sustainability

Student are working hands-on

IMAT Key Ideas

Project based Learning in Small Learning Groups

Classes of 15-30 Students

International Research and Education Networks

Residential Campus: Living, Learning, Working

Industrial Practitioner as Lecturer

IMAT Key Ideas (cont.)

Provided Knowledge

Material Flow Management

Ecological Economics

Clean Technologies / Environmental Technologies

Understanding of Holistic and Complex Material and

Ecological Systems

Project and Change Management

Intercultural Communication / Networking

Financing

Environmental Management

German-Japanese Dual Degree IMAT Program together

with Ritsumeikan Asia Pacific University, Beppu

German-Turkish Dual Degree IMAT Program together

with Akdeniz University, Antalya

German-Brazilian Dual Degree IMAT Program together

with Universidade Positivo, Curitiba (March 2011)

German IMAT MSc Program

IMAT Programs

Job Perspectives

and Opportunities

Eco-Entrepreneurship

Global Consultancy Companies

(Non-) Governmental Organisations

Industry (Process Optimisation, Eco-Controlling, Strategy Development, Corporate Governance, etc.)

Research Institutions

Policy Making

IMAT Students are the business leaders of the future

Bachelor Degree or Equivalent

Adequate Knowledge of English Language (e.g.

TOEFL with 550 points is recommended)

Sound Research Proposal

High Motivation and Interest in MFM and Circular

Economy

One Annual Intake (Fall Semester)

Scholarships are available! MEXT PGPApplication

deadline 30.11.2010

Admission Requirements

Thank you for your time and attention

www.stoffstrom.org

www.imat-master.com

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