The benefits of Industrial Symbiosis - OECD.org · Manufacturing: e.g. cement, chemical, ... SODIUM HYPOCHLORITE NUFARM LIMITED PESTICIDES ... Economics D: Increased

30.07.10

1

Curtin University is a trademark of Curtin University of Technology

CRICOS Provider Code 00301J



Nov 2011

Division of Science, Engineering & Computing

The benefits of Industrial Symbiosis

The Kwinana experience



Sustainable Engineering Group Nov 2011 Division of Science, Engineering & Computing

Sustainable Engineering Group (SEG),

Curtin University

A/Prof. Michele Rosano

30.07.10

2





SEG


Industrial Ecology Engineering research group

Research and teaching

Established in 1999 at Curtin University

Teaching (u/graduate & graduate)

Applied research (multi-disciplinary and inter-disciplinary)

Consultancy services (Govt. and industry/SMEs)

Research expertise-

Industrial symbiosis

Life Cycle assessment

Engineering process

Eco-efficiency

Sustainability metrics



Kwinana Industrial Area


Established in 1950s

40 km south of Perth

Adjacent to Cockburn Sound

Deep water port facilities

Sensitive marine environment

Co-existence of processing industries:

Resource processing: e.g. alumina, nickel, steel, oil refineries

Utility: e.g. power, water treatment, co-generation plants

Manufacturing: e.g. cement, chemical, fertiliser plants

30.07.10

3





KIC


An incorporated association

Funded by members (~$1m pa)

6 key priority areas

- Protection of the environment

- Stakeholder perceptions

- Sustainable development (KIA)

- Community health

- Public safety

- Education

Mission: To promote and contribute to the sustainable co-existence of

Kwinana industry, the community and the environment.



SEG Industrial symbiosis experience


Kwinana, Western Australia. (1990)

Gladstone, Queensland.

Rustenburg, South Africa

Geelong, Victoria.

Dandenong, Victoria.

Whyalla, South Australia (2012)

30.07.10

4





Industrial symbiosis


Industrial symbiosis (often referred to as „Regional Synergies‟)

Definition “Capture, recovery and reuse of previously discarded

resources from one industrial operation by other, traditionally

separate, industries operating in their close proximity”

Categories

By-product synergies

Water and energy utility synergies

Supply chain synergies/management

Kwinana is a world-leading example of regional synergy implementation

48 diverse and matured existing synergies

Success factors

industry diversity, non-competitive, close proximity, KIC

Key role for Kwinana Industries Council

Potential for further synergy development



KIA- Triple Bottom Line


Economic

Major source of revenue Direct sales $12B 3.3% of WA total income Annual worth of A$ 20 billion

Social Jobs

~ 4,800 direct and up to ~ 26,000 indirect and induced jobs 64% live locally > 50% community activities funding spent locally Direct consultation with the community

Environment Interdependency creates significant environmental benefits High level of environmental performance and collective action between industries

30.07.10

5





Kwinana Industrial Symbiosis


47 existing synergies in

Kwinana

32 by-product synergies

15 utility synergies

Kwinana compares favourably with other international examples of regional

synergy development (Bossilkov et al, 2005).

Greatly exceeds „business-as-usual‟

Best-practice example

Maturity, diversity, and number of synergies




Examples of By-Product Synergies

Cockburn Cement supply of lime

kiln dust to HIsmelt Pig Iron

Plant and Tiwest Pigment Plant

CSBP Chemical Plant supplying

gypsum to residue area of Alcoa

Alumina Refinery to assist in plant

growth and soil stability

30.07.10

6






Regional Synergies KIA-1990

27 interaction between 13 industries

WESFARMERSCSBP

FERTILIZERS

AMMONIA

AMMONIUM NITRATE

SODIUM CYANIDECHLOR-ALKALI

CHLORINE &

CAUSTIC SODA

BP REFINERY

OIL PRODUCTS

BOC GASES

OXYGEN NITROGEN

HYDROGEN

WMC NICKELREFINERY

NICKEL

AIR LIQUIDE

OXYGEN NITROGEN

TIWEST PIGMENTPLANT

TITANIUM DIOXIDE

NU-FARM/COOGEECHEM.

CHLOR-ALKALI

CHLORINE &

CAUSTIC SODA

CAUSTIC

SODA

AMMONIUM SULPHATE

SULPHUR

HYDROGEN

NITROGEN

HYDROGEN

CARBON DIOXIDE

NITROGEN

LIME

OXYGENNITROGEN

ALCOA WORLDALUMINA

ALUMINA

COCKBURNCEMENT

CEMENT & LIME

LIME

SULPHURICACID

CARBON

DIOXIDE

SULPHUR

CAUSTIC

SODACHLORINE

SULPHURIC

ACID

HYDROGEN

AMMONIA

CARBONDI

OXIDE

NITROGEN




Regional Synergies KIA - 2006

(106 interaction between 28 industries)

INDUSTRIES THAT SERVICE MANY

INDUSTRIES*

CBI CONSTRUCTORS: FABRICATION, CONSTRUCTIONFREMANTLE PORT AUTHORITY: PORT FACILITIESTRANSFIELD SMP: FABRICATION, CONSTRUCTIONWATER CORPORATION: WATER SUPPLY, SEWAGETREATMENTKWINANA POWER STATION & EDISON MISSION: ELECTRICITY

SULPHURICACID

WESFARMERS

CSBP

FERTILIZERSAMMONIA

AMMONIUM NITRATESODIUM CYANIDE

CHLOR-ALKALICHLORINE &

CAUSTIC SODA

BP REFINERY

OIL PRODUCTS WASTEGASES

BOC GASES

OXYGEN NITROGENHYDROGEN

WMC NICKEL

REFINERY

NICKEL

AIR LIQUIDE

OXYGEN NITROGENARGON

CARBON DIOXIDE

TIWEST

PIGMENT

PLANT

TITANIUM DIOXIDE

NU-FARM/

COOGEE CHEM.

CHLOR-ALKALICHLORINE &

CAUSTIC SODA

CAUSTICSODA

CAUSTICSODA

AMMONIUM SULPHATE

SULPHUR

HYDROGEN

NITROGEN

HYDROGEN

LPG

COOGEE

CHEMICALS

INORGANIC CHEMICALSTANK TERMINALLING

ARGON

CARBON DIOXIDE

NITROGEN

CARBONDIOXIDE

LIME

LUBE OIL

OXYGEN

OXYGEN

FLOCCULANT

AVENTIS CROP

SCIENCES

AGRICULTURALCHEMICALS

GASOLINECOMPONENTS

CHEMICALSGENERAL

SUMMIT

FERTILIZERS

FERTILIZERS

NITROGEN

OXYGEN

EDISON

MISSION

ENERGY

ELECTRICITY

CAUSTICSODA

OXYGENNITROGEN

NITROGEN

AMMONIUM CHLORIDE

COPPERSULPHATE

GRANULATED PRODUCTS

HYDROCHLORICACID

ALCOA WORLD

ALUMINA

ALUMINA

COCKBURN

CEMENT

CEMENT & LIME

AUST. FUSED

MATERIALS

FUSED ALUMINAFUSED ZIRCON

ALUMINA

LIME

SHINAGAWA

THERMAL

CERAMICS

REFRACTORIES

FUSEDALUMINA

SILICAFUME

WESFARMERS

LPG

PROPANE BUTANE

CIBA

SPECIALTY

CHEMICALS

FLOCCULANT

MILLENNIUM

PERFORMANCE

CHEMICALS

HIGH PURITY ZIRCONPOWDERS

SODIUM

SILICATE

SODIUM SILICATE

SULPHUR

SODIUM

SILICATE

STEAM

FUELGAS

AMMONIA

SULPHURICACID

CHLORINE

KERO-

SENESCARBONDIOXIDE

CARBONDIOXIDE

CARBONDIOXIDE

MOLTEN

SULPHUR

AMMONIA

SULPHUR

NITROGEN

HYDROCHLORIC ACID

SULPHURIC ACID

CO-OPERATIVE

BULK

HANDLING

GRAIN STORAGESHIP LOADING

NATURAL

GAS

HYDROCHLORIC ACID

NITROGEN

STEAM

SODIUMALUMINATE

SULPHURICACID

CAUSTICSODA

HYDROCHLORICACID

NITROGEN

ALUMINA

CAUSTIC

SODA

SODIUM

HYPOCHLORITE

NUFARM

LIMITED

PESTICIDES

CAUSTIC SODA

PESTICIDES

AMMONIA

ONE STEEL

MARKET MILLS

PATIO TUBING

OXYGEN

DIESELOILS

CHLORINE

LIME

DIESELOILS

TYCO WATER

STEEL PIPES

CEMENT

DIESEL OILSLUBE OILS

PROPANEOXYGEN

NITROGENHYDROGEN

CARBON DIOXIDE

LPG

SULPHURICACID

HYDROGEN

SULPHUR

KWINANA

POWER

STATION

ELECTRICITY

TRANSFIELD

SMP

FABRICATIONCONSTRUCTION

NITROGENOXYGEN LPG

STEELPRODUCT

HYDROCHLORIC ACID

CAUSTIC SODA

AMMONIA

SULPHURIC ACID

HYDROGEN

WAXES

CARBON

DIOXIDE

CONDENSATE

LUBE OIL

NITROGEN

NITROGEN

AMMONIUM SULPHATE

GRANULATED PRODUCTS

SULPHUR

COPPER SULPHATE

FERROUS SULPHATE

SULPHURIC ACID

SULPHURIC

ACID

STEAM

WAXES

CARBON DIOXIDE

DEMINERALISED WATER

CAUSTIC SODA

CAUSTIC SODA

30.07.10

7






Examples of Utility Synergies

Artificial wetland treatment at

CSBP Chemical Plant

On BP Refinery land

Some of BP effluent going

into wetland cells as well

2 Cogeneration facilities

BP Refinery (116 MW)

Tiwest Pigment Plant (40

MW)




Examples of By-product synergies

Reuse of slag from smelting

Road construction, fill material

Sand blasting

Insulation (air granulation of slag slag wool)

Geopolymers

Reuse of fly ash from coal-fired boilers

Road construction

Geopolymers

Soil conditioner

Reuse of gypsum from scrubbing systems

Plaster board manufacturing

Cement production

Soil conditioner

Reuse of lime kiln dust from cement plant

Desulphurisation (scrubbing)

Soil conditioner

30.07.10

8






Current Synergy Focus in Kwinana

Inorganic By-Products

Focus on high volume residues (bauxite and gypsum) Link into local construction developments

Water Mapping of company water inputs and outputs Water synergy scoping study and workshop Industrial wastewater reuse

Energy Industry energy survey (uses and losses) Energy scoping study and workshop Waste heat recovery (use for desalination)

Sustainability Roadmap Development of sustainability indicators and targets Guide strategic decision making on long-term sustainability Benchmarking of sustainability performance of the KIA




Benefits of Existing Synergies in the KIA

Reduced operational costs

Gypsum

Increase company income

Lime kiln dust

Increased water efficiency

Kwinana Water Reclamation Plant (KWRP)

Increased energy efficiency

Cogeneration facilities

Water and energy security

KWRP, cogeneration facilities

Employment generation in the KIA

Cogeneration facilities

Improved quality of life for neighbouring communities

30.07.10

9






Facilitating the Business Model

Nickel refinery Oil refinery

Oily wastewater

for treatment

Nickel refinery Fertiliser plant

Treated effluent

Collective

anaerobic digester

Biogas

Biosludge

Treated

effluent

• Synergy

identification

• Facilitation

• Synergy

identification

• Industry

facilitation

• Market

assessment

• Pre-feasibility

study

SEG’s Role




Facilitating Structures that encourage collaboration

•Industry bodies/leadership

•Synergy development activities

Data collection

Workshops

•Funding

•Promotion

Operational and contractual

arrangements

•Ownership and liabilities

•Supply and demand risks

•Price

Evaluation methods

•Tools

•Assessment approaches

1. Assess and Review Resource Inputs and

Outputs of Companies in the Area

3. Develop and Implement Business Plans for Synergy

Projects

2. Develop and Screen Synergy Opportunities

Successful By-Product and Utility Synergy Projects

Triple Bottom Line

Accounting

Method

Operational and

Contractual

Arrangements

Facilitating

Structures

Synergy

Development

Process

EIP Enabling Mechanisms

30.07.10

10






Identifying Drivers & Barriers to synergy development

Regulation

D: Air, water quality requirements; reporting schemes

B: Complicated, approval procedures

Economics

D: Increased revenue

B: Low costs for resources and waste disposal

Community

D: Improvement of quality of life

B: Community opposition and public concerns to waste reuse

Technology

D: Replacement/decommissioning of old equipment

B: Lack of suitable technology to transport/convert by-product

Risk and Liabilities

D: Reduction of liabilities associated with waste storage

B: Dependencies, lack of supply securities




Existing synergies provide range of sustainability benefits

More synergy opportunities exist

Business case of synergies

Need to understand broader sustainability benefits

Regulatory barriers

Prevent or delay implementation synergies

Industry champions

Crucial for synergy development

Industry involvement

Development of synergies is not core business

Kwinana Industries Council has key role

Platform for industry collaboration

Lessons Learnt in Kwinana

30.07.10

11






Benefits and Success Factors

Kwinana is world leading example in

regional synergy development

Historical development of synergies

Favourable features of Kwinana

Significant sustainability benefits

Move beyond ‘low-hanging fruit’

Many more synergy opportunities still exist

Commitment to further develop synergies

Need to overcome barriers

Regulation, demonstrate sustainability

benefits

Need to communicate achievements

Industries, government, community




Benefits and Success Factors

Excellent ongoing positive PR exercise

In addition to the sustainability benefits

Assisting with the ‘Social licence to operate’

Independent research agency needed

Particularly a university research group

(impartial and independent) critical in dealing

with any commercial in-confidence information

exchange between companies.

Company champions

Necessary to ensure overall commitment and

provide data inputs and decision making roles

when required.

30.07.10

12






Australian Government R&D Incentives

• Low Carbon Australia $100m

• invest in carbon abatement, EE, accreditation for C neutral

products, provides advice on carbon reduction mechanisms

• Generic R&D Tax Concessions

• 125% of the amount spent for R&D capital equipment depreciation.

• Renewable Energy (Solar power) Feed in Tariff schemes in each State

• Clean Energy Focus ( but still major exporter of coal…..)

• Most ‘green technology’ funding focussed on green energy

• Australian Renewable Energy Agency

• Green Energy Fund $10bn

• ARENA- Early stage R&D technology

• Clean Energy Finance Corp- commercial development and roll

out




Australian Government R&D Incentives

• RET- Renewable Energy Targets: 20% of Australian electricity be

produced from renewable energy sources by 2020.

• REC- Renewable energy certificates

• Replaced mandatory Renewable Energy Target Scheme of

9500Gwh of extra renewable electricity by 2010 (finished).

• National Research Centres

• Full Industry funding plus University funding

• Co-operative Research Centres (CRC) (7yr term)

• Govt. + Industry funding

• Australian research Council (ARC) Linkage and Discovery

• University/CSIRO collaboration

Documents

The benefits of Industrial Symbiosis - OECD.org · Manufacturing: e.g. cement, chemical, ... SODIUM HYPOCHLORITE NUFARM LIMITED PESTICIDES ... Economics D: Increased