The Circular Economy

as a way of living

Smart City Event

3rd June 2015

Amsterdam

Thierry Clement, Veolia Senior Vice President Business Development Cities

250 years ago,

“Circular Economy” was the exclusive way of living

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XVIII century: Production system based on agriculture Low transformation of natural resources Almost 100% of products recovered Tough living conditions

The first economy was Circular

Natural resources

Production

Consumption

Waste return to

earth

Limited waste

disposal

1750 Life Expectancy

25 – 30 years

Transition towards massive

consumption of natural resources

3

Industrial Revolutions:

Modernization Research & Development Healthcare improvements Planet damages and human activities impacts not anticipated

Natural resources

Extraction, Production

Consumption (products)

Waste

Start of the Linear Economy

Globalization, Urbanization and Rural exodus…

How will we keep our planet alive?

5

0

2

4

6

8

10

12

Worldwide urbanpopulationgrowth (in Bn)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1750 1900 Today 2050

Urban Population

Rural Population

Worldwide urban population growth

Sources: http://www.un.org/en/development/desa/news/population/world-urbanization-prospects-2014.html http://fr.slideshare.net/maggiesalgado/changes-in-britain-1750-1900

How can we move to a new Circular Economy?

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Natural resources

Extraction, Production

Consumption (products)

Waste

Distribution in short

loops

Production

Consumption (services)

Collection & separation

of waste

Re-use, recycling,

transformation

The first economy was Circular

Natural resources

Production

Consumption

Waste return to

earth

Limited waste

disposal

The industrial revolution Linear economy

Moving toward a SMART way of living and sustainable

Through Circular Economy

Today (in EU) Life Expectancy

70 - 80 years

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What are the drivers driving the need for a

Sustainable Circular Economy?

Cost & Volatility

o Scarcity and increasing difficulty to extract natural resources

o The price of raw materials was halved between 1900 and 2000 and

increased by more than half between 2000 and 2010.

Dependence & Uncertain

supply

o Most of the resources used are non-renewable (68% in France)

o Most of the resources used in OECD countries are imported

o Strongly increasing world population that becomes wealthier (consumes more resources)

o Increase in raw materials consumption (+10% in water since 2000)

Boom in the demand

Recycling potential

underutilized

o No recovery of 80% of the volume of consumer goods consumed.

o Only 2% of treated wastewater is recycled in the world (UN-Water)

o 1.3 billion tonnes of municipal waste produced each year worldwide (World Bank)

2. Preserving resources o Reduction in

consumption o Audits & diagnoses of

environmental footprints

1. Improving access to resources o Durability of production chains o Regional ecology through the introduction of local

loops of resources and of integrated offerings o Functional economy o Eco-design

3. Renewing resources o Renewed secondary

raw materials o Extended life cycle of

products

Traditional Linear Economy

Circular Economy

What Veolia is doing

A circular economy for “Resourcing the world”

Veolia is involved in Circular Economy solutions & technologies (video link)

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Increase in material complexity due to: built-in functionality and material-based differentiation

increasing difficulty to identify and separate materials

Misalignment of incentives Lack of markets at scale Lack of reverse capabilities and

infrastructure Missing enablers in the transition

Today’s products have global footprints

Most of the time, materials don’t find their way back to the value chains

SOURCE: World Economic Forum and Ellen MacArthur Foundation circular economy team

What are the challenges to accelerate the transition towards the circular economy across global supply chains?

Linear

Lock-ins

Geographical

Dispersion

Material Complexity

Solutions and innovations exists…

Global actions are needed !

10

Today

Tomorrow

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Thank you for your attention,

Any question?

Veolia

Living references

with Cities & Industries

(video)

Brussels: Multi services approach Producing bio plastics from WW

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Pecs: Biomass Renewable Energy District Heating network

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Milwaukee: A partnership agreement

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Shell: Zero liquid discharge from GLT in Qatar

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Veolia

Other circular economy

references

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Circular economy gets real in your daily life !

Working alongside Procter & Gamble we have repackaged waste detergent into a new, high performance auto wash. At our Tinsley site, we have been trialling a new auto wash on our own vehicles

Working with Diageo’s Cameronbridge Distillery, we have developed new technology to recover energy from the by-products of whisky production.

Working alongside local authorities, we offer a closed-loop environmental solution by recycling used plastic bags into refuse sacks.

Working with a national food producer, we have created a landmark solution that has enabled recycled water to be used in food production. To achieve this, we created a water recycling facility that took the wastewater from the factory and recycled 72% of it back into the food production process.

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Circular economy gets real in your daily life !

Working alongside a leading healthcare company, we have recovered high quality platinum from obsolete pharmaceutical drugs.

The Dairy Crest biomass energy plant is one of the largest wood pellet burning installations in its industry sector, using sustainably sourced pellets made from used or life-expired wood.

Working across UK, Europe and the United States, Veolia is developing innovative technology to recover valuable metals from disused industrial catalysts for clients in the Oil & Gas, Chemical and Petrochemical sectors. Trials of this technology are underway. We are working closely with our technology partners to maximize the amount of valuable metal we reclaim.

Veolia is taking mixed rigid plastic items and wheelie bins collected from household Waste Recycling Centres (HWRCs), commercial and industrial customers and turning them into brand new wheelie bins. There are a lot of rigid plastic household items that are sent to our HWRCs such as garden furniture, toys and dustbins.

Challenges o Transform wastewater and waste from a source of pollution

into an opportunity for sustainable development o Make the Billund Biorefinery (Denmark) a real laboratory

for large-scale technical innovation to open the door to a new way of treating wastewater and biowaste

Veolia's solutions o A facility equipped with Veolia’s proprietary thermal

hydrolysis and anaerobic digestion technology, EXELYS™, that simultaneously treats the wastewater from the city’s 70,000 residents and the 4,200 metric tons of organic waste from agriculture, industry and local households

Customer benefits o Production of biogas from the biowaste and treatment

sludge to provide heat and electricity to the site o Production of organic fertilizer for agriculture and

bioplastics for industry o The treated water will be discharged back into the

neighboring stream o City-country-industry loop o Reduced environmental footprint o Protection of the local biodiversity

Producing biogas to supply heat and electricity Billund Biorefinery

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Challenges o Castorama, a leader in home furnishings has

committed to being “Net Positive”, by going one step

further of environmental protection and seeking to

have a positive impact on the planet’s future

Veolia's solutions o Research and development in cooperation with the

Castorama teams

o Creation of an ad hoc logistics unit to collect the timber

waste from Castorama’s stores in France

o Design of a wood flour with 35% wood and 65%

plastics that can be recycled industrially

Customer benefits o Commitment to supply 1,000 metric tons a year for five

years

o Improved water-resistant and 40% lighter weight

product

o A first in France for a 100% recycled composite timber

used to manufacture a laminated kitchen countertop, a

pure circular-economy product

Creating a recyclable kitchen countertop Castorama

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Key financials o Annual revenues: 950 k€

o Contract duration: 4 years

Market driver o Development of en extended producer

responsibility on furnitures with ambitious

objectives on recycling and valorization rates

Client challenge o Encourage the development of new plants to

dismantle matress in order to achieve its recycling

rate

Veolia business model o Plant co-financed with social economy partner

o Minimum tonnage guaranteed by EcoMobilier

Veolia Solution o Set up of an industrial process to dismantle

matress starting with a desinfection module

o Recovery of secondary raw materials: foam, latex,

textile, iron

Client benefits o Recycling rate of matress > 90 %

Dismantling of matress for a second life Eco-Mobilier

Energido: Converting wastewater into energy

Challenges The energy sector is within local authorities the largest

greenhouse gas issuer and often the leading operating

expenditure item. Local authorities are implementing strategies

aimed at lowering their energy consumption and developing

local and renewable energies. Large cities, in particular, have to

face a major challenge: combining unprecedented urban

development while minimizing their impact on the environment.

Veolia's solution

A process patented by Veolia, ENERGIDO recovers heat from

wastewater.

Wastewater, put in contact with a heat exchanger located

outside the sewer system, conveys its energy to a fluid feeding

the heat pump located within the facility. The latter returns the

energy by producing water at the desired temperature (40° to

60° Celsius) that feeds the heating network.

Customer benefits o France's first eco-friendly district is 100% heated thanks to

energy recovered from wastewater (Cap d’Azur eco-district

in Roquebrune-Cap-Martin): with residents’ invoices cut by

around 15%,

o Decrease in CO2 emissions:

o 84 tons saved in the Cap d’Azur eco-friendly district,

o 280 tons of CO2 saved for the Aquarena aquatic center in

Arras,

o 230 tons of CO2 saved for the Cercle des nageurs

swimming pool in Marseille

o Smart Water Box

Urban Digital Services Offering: Veolia services with IBM inside

• Integrated and real time insight on infrastructure, assets and

operations for water, by integrating heterogeneous sources of

data and leveraging wireless sensors (networks, assets,..) to

provide analytics, optimization and forecasts.

• Combining data management and analytics leads to smarter

decisions

o Smart Wastewater Plant

• CISPEO is the first range of solutions developed and patented by

Veolia, which uses and transposes artificial intelligence

processes to water treatment and related activities to monitor,

diagnose or control the operation of treatments units in a

wastewater treatment plant.

• When you choose a CISPEO solution, you benefit from

Veolia’s skills in terms of preliminary assessment of the

facilities, configuration and implementation of the solution,

operational technical assistance…

• CISPEO acts on 3 levels

• Energy consumption

• Use of chemicals

• Human resources and work organization

Smart-metering

CHALLENGES OUR SOLUTION

CASE STUDIES:

France: Lyon – Smart Water Box

CUSTOMER BENEFITS

o Accelerated Urbanization is a major challenge.

o Cities objectives: efficiency, attractiveness,

transparency

o Citizens’ expectations: quality of services, new types

of consumption, quality of life

o Private sector objectives: accessibility, cost efficiency,

quality of human resources

o Reducing operating costs while guaranteeing the

facilities treatment efficiency.

o Optimizing maintenance workforce

o Operational performance

o Water losses reduction

o Developing responsible management methods to

improve the quality of life in the workplace and

reduce the environmental impact of the activity (

chemical impact, GHG emissions)