Hot topics for WtE within the EU

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1 Confederation of European Waste-to-Energy Plants Hot topics for WtE within the EU Best regards from Ella Stengler /CEWEP to ISWA WG Energy Recovery 29 September 2011

2 Implementation of the WFD R1 guidelines 2

3 CEWEP Internal Workshop - 11 th October 2011 How to calculate Energy Efficiency R1 = according to the R1 Guideline? CEWEP internal Workshop R1-factor = Ep (Ef + Ei) 0.97 * (Ew + Ef) on 11 th October 2011 At the A2A Waste-to-Energy Plant in Brescia In order to register, please send an by 12th September 2011 to info@cewep.eu

4 Legal status R1 guidelines are not legally binding, but it is expected that Member States will apply them. A court would also consider them as indication for interpretation of the application of the R1 formula. 4

5 CEWEP Energy Efficiency Report III... in preparation. Could be less positive than Energy Efficiency Report II due to some energy flows that do not count within Ep according to R1 guidelines = energy uses influencing the steam/heat production (see above)

6 Climate Correction Factor COM is preparing working paper: 1. zero option (no climate factor), 2. wider climate correction factor compensating also a lack of demand for heat produced by the incinerator or 3. climate correction factor restricted to compensating the lower efficiency of turbines in warmer climate. The working paper will be finalized in due course COM plans to hold a R1-formula expert working group by the end of Comitology process necessary for adaptation (-> legally binding) 6

7 Implementation of WFD end of waste 7

8 end of waste The COM s Joint Research Centre (JRC) is preparing a study, which will be carried out by DHI Consultancy, Denmark, to explore whether aggregates, including inter alia BA and fly ash from waste incineration, could be end of waste candidates. -> REACH would apply H14 ecotoxicity test for BA: difficult as bioanalytical testing is not suitable for BA. Alternative eco-toxicity classification of bottom ash? CEWEP Residues Working Group is following this item. 8

9 end of waste The JRC has commissioned Umweltbundesamt, Austria to carry out a study into The suitability of different waste-derived fuels for end-of-waste status. public consultation is open now until 28 th October > Waste Incineration Directive and Waste Shipment Regulation would not apply if waste-derived fuels become product status CEWEP Energy Working Group is following this item. 9

10 Implementation of the WFD Life Cycle Thinking Diversion from waste hierarchy for some waste streams must be justified by Life Cycle Thinking. CEWEP study on Sustainable European Waste Systems based on LCA compares waste management routes and looks at future possibilities, particularly with regard to plastic waste. The study is conducted by DTU and Politecnico di Milano. CEWEP reference group

11 On the horizon 2014: Review of the targets of the WFD Review of Energy Efficiency provisions, R1 Formula? Report on waste prevention and decoupling objectives for 2014

12 Roadmap for a Resource Efficient Europe In due course Commission will publish the roadmap to stimulate recycling via product design to enforce the waste hierarchy to stimulate demand for recycled materials through appropriate economic incentives. 12

13 Economic instruments seminar to be organised by COM on economic instruments on 25 th October 2011 explicitly mentioning incineration taxes and fees CEWEP will attend this seminar, considering the arguments gathered in the paper we produced in March 2011 against taxation of waste incineration 13

14 Incineration Taxes 2011 implemented in 6 countries Country /tonne Austria 7 Belgium 6 average the 25 /t for incineration without energy recovery (Wallonia) is not relevant in practice Denmark incineration tax replaced by a tax on produced heat from waste and a tax on CO 2 emissions (fossil part of waste) France 7 Portugal 1.05 Spain Differs on regional level

15 Diversion from landfills Most successful countries: DE, NL, AT, SE 1% or less Means: Landfill bans in all 4 countries Landfill taxes in AT + NL 15

16 Future EU Landfill Policy COM aims to phase out biodegradable waste from landfill -> review targets New targets for plastic waste Aim is to go to zero-landfill

17 2011 EEA report 'Waste opportunities Three different scenarios for 2020 are projected Business-as-usual: 44 Mt CO 2 -e savings All countries fully meet the Landfill Directive s targets 62 Mt CO 2 -e savings landfill ban of all MSW: 78 Mt CO 2 -e savings compared to EEA report based on ETC/SCP working paper 4/

18 2011 EEA report 'Waste opportunities Huge potential benefits for climate change mitigation if more ambitious waste policies were implemented. In this scenario, recycling would increase to 61 % of MSW and incineration to 39 % in

19 BREFs Best Aivailable Techniques REFerence documents Work programme for the EIPPC Bureau, Seville: End 2012: review of BREF Waste Treatment (inter alia bottom ash, stabilisation processes) - CEWEP questionnaire BA 2013: review of the BREF Waste Incineration (adopted 2006) Currently review of Monitoring BREF provides information regarding monitoring requirements of industrial emissions at source. Issues tackled are as follows: Appropriate monitoring regime; The way the ELV s, or equivalent parameters, are expressed; Monitoring timing considerations; How to deal with uncertainties; Monitoring requirements to be included with ELVs in permits; Approaches to monitoring; Approaches to monitoring a parameter; monitoring costs.

20 Emissions trading for NOx and SO 2 The Commission has... decided not to pursue action with regard to a NOx/SOx trading system. Industry was strongly against such an emissions trading.

21 EU ETS vs taxes CEWEP held a workshop on EU ETS versus carbon taxes and determination of the biogenic/fossil content of MSW, on 3 rd March 2011 in Vienna. 21

22 Conclusions Waste to energy In case of inclusion in the EU-ETS: Relevant shortage for most operators (no free allocation for electricity!) surplus only in some cases possible (Heat producers, Carbon Leakage) Monitoring complex Open issues, e.g. consideration of biogenic amounts, extent and effort of the CO 2 monitoring

23 Fraction of fossil CO2 emissions [%] Comparison with radiocarbon method Balance method Radiocarbon method Mohn et al., 2008

24 Analysis NCV Monitoring Guidelines 0,5% 1,5% The sampling procedure and frequency of analyses shall be designed to ensure that the annual average of the relevant parameter is determined with a maximum uncertainty of less than 1/3 of the maximum uncertainty which is required by the approved tier level for the activity data for the same source stream. If the operator is not able to meet the allowed max. uncertainty for the annual value or unable to demonstrate compliance with the thresholds, he shall apply the frequency of analyses as laid down in Table 5 as a minimum, if applicable. In all other cases the competent authority shall define the frequency of analyses.

25 Conclusions - ETS vs. Carbon Tax Variety of issues relevant Monitoring and Management: likely more complex in case of ETS Financial aspects: key issue: EUA price vs tax Auctioning for electricity generators similar to tax Price Offset in case of heat generating installations Higher predictability for tax vs. fluctuating EUA prices (higher risk / chances)

26 Directive on Renewables and reporting obligations The biodegradable fraction of industrial and municipal waste is part of the biomass definition, thus counts as a renewable energy source. Member States shall report to the COM by 31 Dec 2011, inter alia, how the share of biodegradable waste in waste used for producing energy has been estimated, and what steps have been taken to improve and verify such estimates. Art. 22 RES-Directive

27 Reporting to COM Most MS give estimation of energy from biodegradable part of waste (48 80%): average 50% Alternative: different measurements to determine fossil/biodegradable part C14, balance method etc. - has been discussed at CEWEP s workshop in March 2011 in Vienna

28 Energy Efficiency Directive COM proposal, June 2011 Article 2 (26) (Definitions): 'efficient district heating and cooling' means a district heating or cooling system using at least 50% renewable, waste or cogenerated heat or a combination thereof and having a primary energy factor, as referred to in Directive 2010/31/EU, of at least

29 Energy Efficiency Directive Regarding national heating and cooling plans ANNEX VII states that they should include, inter alia waste incineration plants; Urban spatial plans shall be designed to ensure that, inter alia, thermal electricity generating installations, industrial plants producing waste heat, waste incineration plants and other waste-to-energy plants are connected to the local district heating or cooling network; 29

30 Energy Efficiency Directive Timing: Finalization of the legislative text under the Cyprus Presidency and entering into for force by end 2012 December 2013: Implementation of the new Directive in the MS June 2014: Assessment of progress towards 20% saving objective; if no progress binding targets for MS 30

31 Energy Taxation Directive (ETD) COM proposal from April 2011 aims to harmonise taxes and raise minimum tax rates for two components: - One is based on CO 2 emissions of the energy product and would be fixed at 20 per tonne of CO 2. - The other one is based on energy content, i.e. on the actual energy that a product generates measured in Gigajoules (GJ). Min. tax rate fixed at 0.15/GJ for heating fuels and electricity from 1 st January

32 Energy Taxation Directive With regard to waste no specific changes Discussions on the interpretation of the current Directive from 2003 and its applicability to waste continue. Currently,most MS do not tax waste according to the Energy Taxation Directive. DK does Germany will probably tax RDF and waste with calorific value > 13 (18) MJ/kg (under discussion) 32

33 Energy Taxation Directive Waste is not an energy product according to Art. 2(1) ETD. However, hydrocarbons, that are not energy products, are in the scope of the Directive if they are intended for use, offered for sale or used for heating purposes (Art. 2(3) 4 th subpara of COM proposal). 33

34 Energy Taxation Directive Is waste in incineration plants used for heating purposes? Different in cases when the waste becomes a fuel of a specific quality after certain pre-treatment? waste product? CEWEP Task Force The ETD is now discussed in the Council (unanimity would be necessary) and European Parliament. 34

35 For more information on Waste-to-Energy: CEWEP Confederation of European Waste-to-Energy Plants Boulevard Clovis 12A, B-1000 Brussels Tel Fax Ella.stengler@cewep.eu

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