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China - Opportunities For Austrian Solid Waste Treatment Technologies

Han HANKey Account Manager – Environmental Technology Österreichisches AußenwirtschaftsCenter Guangzhou

BranchenforumLinz

14.11.2011

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Overview: Solid Waste in China

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Driven byUrbanization & Industrial Development

0.5 kg per day in 1980s, 0.7 kg per day in 1990s, and exceeding 1 kg per day in 2000s

Almost 1/3 solid waste generated in the world comes from China

Volume of waste is growing by 10% per annum 400,000 tons of garbage per day, treated at 849

facilities (60~80% is landfill)

• CNY 210 billion invested within the 11th FYP (2006-2010)

• share of incineration is expected to double in the coming five to ten years

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Governance & Management

State Council (NDRC)

Ministry of Finance

Department of Finance

Ministry of Environmental

Protection

Department of Environmental Protection

Hazardous Waste Center

Ministry of Health

Department of Health

Ministry of Housing and Urban-Rural Development

Department of Housing and Urban-Rural Development

Municipal Commission of Urban Administration and Environment

Environmental Sanitation Bureau

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Laws, Regulations & Standards

the Environmental Protection Law the Solid Waste Pollution Prevention and Control Law the Law on Circular Economy Promotion Management Measures on Urban Waste the National Five-Year Plan on Urban Environment and

Sanitization the Law on the Prevention of Environmental Pollution

Caused by Solid Waste The National Catalog of Hazardous Waste the Identification Standard of Hazardous Waste (GB5085-

96) the National Management Regulation for Hazardous Waste

Transfer Manifests the Regulation on Managing Import of Solid Waste

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Finance

Government funds – mainly for municipal solid waste (urban & rural), recently marketized and diverse in fund sourcing

Governments guarantee the full purchase of power generated by incinerators

Immediate rebate on value-added tax (VAT) for biomass electricity generation plants. 

Build-Operate-Transfer (BOT) – following wastewater sector

Clean Development Mechanism (CDM) – landfill gas recovery, incinerator gas recovery

Target (incineration): 500 MW by 2010 and 2000 MW by 2020

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Technology Support

Dozens of regional research institutes specialized in sanitation environmental engineering

Many well-equipped mechanic and engineering design institutes

Both national and regional industrial associations

China Association of Urban Environmental Sanitation - (www.caues.org) focuses on municipal solid waste treatment in the country, providing technical consultancy and scientific advisor to policy-makers.

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Municipal Solid Waste in China

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Collection and Transfer of MSW Formal vs. informal sorting Labor-intensity Upgrading collection stations Starting charging for waste collection and disposal

Recycling Formal vs. Informal Low value in secondary material market Competition with imported waste

Composting Commonly practiced in China Poor market demand

Incineration Growing market Governmental support and subsidies Public response

Landfill Shortage in space Little control in leachate and gas Lack of productive post closure use

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New Movements on Segregation

Guangzhou Interim Measures of Municipal Solid Waste Segregation has officially come into effect on April 1st 2011.

Beijing announced its decision to adopt a differentiated tariff system to encourage less waste generation in 2011.

More tier I and II cities are following the trend to establish a more strict system on municipal solid waste management.

A necessary step to move forward, especially on incineration and recycling

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Demolition Waste

Half of the world’s buildings to be constructed between now and 2020 are expected to be in China

about 30~40% of the solid waste generated in Chinese urban areas is demolition waste

over 98% has been landfilled directly without any treatment; less than 2% has been roughly segregated to extract valuable resources

Only 20 – 30 companies specialized in recycling demolition waste in China

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Starting in 2011

Cities like Shanghai, Nanjing and Urumqi (Xinjiang) have issued specific regulations on demolition waste. These regulate the requirements on the disposal, storage and transfer of demolition waste, and set up the review and approval process.

Some cities are designating specific space/sites for recycling demolition waste (iron, cement, glass, etc.).

These governmental movements are believed to strongly promote the demolition waste market

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Kitchen Waste

improved living standards and a wasteful consumption behavior led to a significant growth in daily volume and higher composition of fat/oil

the growing public concerns about the poor quality of cooking oil extracted from waste cooking oil (gutter oil) that was illegally traded and processed on the market

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Actions in 2011

Governments are investigating illegal sourcing and trade of waste oil (gutter oil) throughout the country.

Companies specialized in kitchen waste treatment (converting to biofuels) find it more easy to source oil.

Waste segregation laws and policies favor the kitchen waste recycling with better enforcement and facilities.  

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General Outlook

Fast growth:Generation increase Investment increaseDemand increase

Government is promoting incineration and recycling industries

More private business involved Diversifying market needs

Kitchen waste compostingDemolition waste treatment equipmentElectronic waste recyclingMedical waste treatment

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Market Opportunities

Manufacturing and sale of automated waste collection, transfer and storage facilities

Manufacturing and sale of advanced sorting machinery

Soil remediation and land reclamation for post closure landfills

Plastic recycling technology Construction and operation of landfills and

incineration plants Specialized treatment technology for

electronic and medical waste

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Some Advices

partnering with a domestic company is highly recommended given the solid waste market is not fully open and mature (at least compared to the wastewater market)

Most of information and resources regarding new projects and investments are in governmental hands

Products and technologies need to adapt to the local environment and needs

Communication challenges include that the engineers and sales persons in this sector are not able to communicate in English or German

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Questions?

Thank You!