The Czech Republic - The current waste landscape and investment opportunities in the EfW market Prepared by Petr Ruzicka, Sector Development Specialist for Energy and Environment
Outline Introducing CzechInvest Investment climate and business environment Current waste situation Trends in waste management R&D centres Investment opportunities Key players on the market Investment case studies
Introducing CzechInvest
CZECHINVEST Investment & Business Development Agency Ministry of Industry and Trade CzechInvest Investment and Business Development Agency mission to support foreign direct investment to develop local companies to implement business-development programs to improve business environment Source: CzechInvest, 2013
Our Services to Potential Investors Collect/provide information Identify sites and buildings Find potential suppliers/acquisition partners Liaise with government bodies Handle investment incentives Enable access to structural EU funds Provide aftercare services Development of clusters Regeneration of brownfields Our services are free of charge Source: CzechInvest, 2013
Investment Climate and Business Environment
Czech Republic: Basic Data Population (2013) 10.5 million Labour force (2013) 5.3 million Unemployment (updated: 30.6.2014) 7.4% GDP p.c. in EUR (2014*) 14 000 GDP growth (2013*) -1.4% GDP growth (2014*) 1.7% Annual inflation (June 2014) 0.7% Average monthly wage (June 2014) 904 $ 1, 226 Export destinations (2013) Germany (31.3%) Slovak Rep. (8.9%) Poland (6.0%) * forecast Source: Czech Statistical Office 2014, Czech Ministry of Finance. April 2014
Basic Economic Indicators *Estimate **Forecast Source: Ministry of Finance. Macroeconomic Forecast. April 2014
Development of Corporate Tax Rate 30 25 20 15 10 24% 21% 20% 19% 19% 19% 19% 5 0 2007 2008 2009 2010 2011 2012 2013 Source: CzechInvest,2013
Switzerland Australia Canada Belgium United States Netherlands United Kingdom Japan Austria France Germany Spain Czech Republic 89 830 77 262 58 376 55 317 55 048 52 309 50 658 50 161 49 824 45 568 45 287 34 601 15 947 Gross Annual Wages, in USD 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Source: OECD StatExtracts, 2014
Current Waste Situation and Trends
Production of Waste in the Czech Republic Total production of waste: 30 mil. T Production of municipal waste: cca 5,2 mil. t = 494 kg/citizen/year Recovery of municipal waste: 42 % material recovery 30,4 % For energy use 11,8 % Share of municipal waste on landfills: 54 %.
Waste Management Waste Framework Directive 2008/98/EC The waste hierarchy: 1) waste prevention, 2) preparation of waste for re-use, 3) recycling of waste (material recovery), 4) other recovery (e.g. energy recovery), 5) the disposal of waste
Trends in waste management treatment Focus on fulfilling of waste treatment hierarchy Prevention of waste in the beginning emphasis on technology development Lowering of waste production/per person Waste as a source for further re-utilization Better effective utilization of Waste Closing of landfills (by 2025)
Existing Incinerators in the Czech Republic EXISTING USTI NAD LABEM PLANNING PROCESS MOST LIBEREC UNDER CONSTRUCTION KARLOVY VARY PRAGUE HRADEC KRALOVE UNDER CONSIDERATION PLZEN PARDUBICE JIHLAVA OLOMOUC KARVINÁ OSTRAVA CESKE BUDEJOVICE BRNO ZLIN
Energy recovery of MW SAKO Brno - capacity of 240,000 tons/year ZEVO Praha Malešice - capacity of 310,000 tons/year TERMIZO Liberec - capacity of 96,000 tons/year
MOST and KARVINÁ http://www.evokomorany.cz/ http://kicodpady.cz/ 150 000 tonnes of waste per year 180 000 tonnes of waste per year
R&D centres
IF R&D IS WHAT YOU NEED Czech Republic has a strong academic background cooperation with leading Czech companies focusing on R&D projects Czech Republic has a leading position among its main competitors in the region Czech Republic is home to a broad range of science and technology parks and innovation centres
Energy and Environmental Universities The largest faculties, 2013/2014 CZECH REPUBLIC Students: 10,228 Graduates: 2,838 PhD students: 1,121 J.E.Purkyne University, Usti Students: 954 Graduates: 195 PhD students: 10 University of West Bohemia, Plzen Students: 418 Graduates: 99 PhD students: 59 Charles University, Prague Students: 673 Graduates: 184 PhD students: 76 PLZEN USTI NAD LABEM PRAGUE OLOMOUC OSTRAVA Palacky University, Olomouc Students: 394 Graduates: 69 PhD students:18 VSB Technical University, Ostrava Students: 1,107 Graduates: 319 PhD students: 121 Mendel University, Brno Students: 351 Graduates: 107 PhD students: 75 Czech University of Life Sciences, Prague Students: 2,367 Graduates: 696 PhD students: 219 CESKE BUDEJOVICE BRNO Masaryk University, Brno Students: 276 Graduates: 62 PhD students:46 Institute of Chemical Technology, Prague Students: 629 Graduates: 97 PhD students: 140 Czech Technical University Students: 1,272 Graduates: 367 PhD students: 178 University of South Bohemia, České Budejovice Students: 564 Graduates: 140 PhD students: 41 Brno University of Technology Students: 846 Graduates: 216 PhD students: 92 Source: Ministry of Education, Youth and Sports, 2014
R&D centres OPEN Institute of Clean Technologies for Mining and Utilization of Raw Materials for Energy Use -- The main objective of the project is to create a unique centre (just one in the Czech Republic), which will preferentially deal with the research of problems in the area of extraction and utilization of energy resources and further exploitation of the geological environment,
R&D research centre http://www.ietech.eu
Energy Units for Utilization of non traditional Energy & Sources -- research and development of technologies for fuel transformation, especially of waste products and alternative fuels, into heat energy and electric power and their further effective use
Energy research center http://vec.vsb.cz/en The Energy Research Center RTD activities are mainly oriented by efforts to find solutions for problems of efficient energy generation and rational utilizations of power, inclusive problems of environmental protection.
Financial support
Investment Incentives -- Act on Investment Incentives No. 72/2000 Coll., as amended Supported activities -- Manufacturing industry - Starting or expanding production facilities -- Technology centres - Establishment or expansion of R&D centres -- Business support services centres - Establishment or expansion of shared service centres, SW development centres or high-tech repair centres Types of Incentives (granted up to the ceiling of state aid) -- Tax incentive - corporate income tax relief for max.10 years -- Job creation grants - app. EUR 7,500 per each new job created - regions A only* -- Training and retraining grants - 25 % of total training costs - regions A only ** -- Discounted price of land -- Cash grant on capital investment (in case of strategic investment only) * Regions A Most, Ústí nad Labem, Bruntál, Karviná ** granted above the ceiling of state aid Source: Act on Investment Incentives No. 72/2000 Coll., CzechInvest 2013
European funds Operational Programme Environment 2007 2013-520 mil EUR for waste management Operational Programme Environment 2014 2020 - prevention, material and energy recovery and reducing hazardous waste properties
Business Properties for Investors Section Identification of suitable locations which fulfill investors requirements Provision of property offers to foreign investors (industrial zones, halls, land plots, office spaces) Provision of consulting services relating to the Czech commercial property market Cooperation with public and private property owners, developers, brokers and public bodies Source: CzechInvest, 2014
Reasons to Invest in the Czech Republic -- Long tradition in design, development and manufacturing for the energy, engineering and electronics sectors -- The first prototype of the Kaplan turbine developed and produced in Brno in 1919 -- Availability of skilled and experienced industry-specific staff at competitive prices -- Close ties between universities, research and industry -- Established industrial R&D, manufacturing and supply chain -- Supportive business environment and incentives for both R&D and manufacturing
Investment Case Studies
VYNCKE CZECH REPUBLIC In 2012 Vyncke opened a new manufacturing facility of cogeneration units in the Czech Republic which together with operations in Belgium, Germany, Canada, Brazil, India, Malaysia, Thailand and China contributes to the company s global footprint.
Doosan Skoda Power In 2009 Škoda Power, a Czech producer of steam turbines since 1904, became part of Doosan Heavy Industries & Construction, a leading provider of clean, efficient, flexible and integrated solutions for energy production, which uses the latest ttechnology and relies on cutting-edge engineering knowledge from boilers and turbines to turnkey power-plant projects.
Thank you for your attention. Petr Ruzicka petr.ruzicka@czechinvest.org www.czechinvest.org