CIRCULAR ASSET MANAGEMENT plugging asset value leaks by closing loops 05.10.2016
Eva Gladek, Metabolic
Jasper Flapper, Antea Group
OUTLINE • What is the Circular Economy? • Circular Economy Cases • Applications of Circular Procurement and Asset Management
Circular Asset Management - plugging asset value leaks by closing loops
INTRODUCTION
Circular Asset Management - plugging asset value leaks by closing loops
Antea Group
Circular Asset Management - plugging asset value leaks by closing loops
Collaboration Circular Economy Thinking
Circular
Procurement Assessment Procurement Design Demolition & re-use Asset management
Engineering & project management
Circular Asset Management - plugging asset value leaks by closing loops
ABOUT METABOLIC • Metabolic is a systems consulting and cleantech development firm • Our mission is to transition the global economy to a fundamentally sustainable state • We have an interdisciplinary team of around 25 people and offices in Amsterdam and Aruba • In the last 4 years, we have completed over 150 projects, most of which have related to the Circular Economy
Circular Asset Management - plugging asset value leaks by closing loops
WHAT IS THE CIRCULAR ECONOMY?
Circular Asset Management - plugging asset value leaks by closing loops
SUSTAINABILITY CHALLENGES
Circular Asset Management - plugging asset value leaks by closing loops
FATAL FEEDBACK LOOPS
Circular Asset Management - plugging asset value leaks by closing loops
EXPONENTIAL TIMES
Circular Asset Management - plugging asset value leaks by closing loops
PLANETARY BOUNDARIES
Planetary Boundaries. Source: Rockstromm et. al, Stockholm Resilience Centre
Circular Asset Management - plugging asset value leaks by closing loops
SO HOW DO WE MOVE FORWARD?
Circular Asset Management - plugging asset value leaks by closing loops
BUILDING A CIRCULAR ECONOMY Since 2012, Metabolic has completed over 150 projects for companies, cities, and governments, with a large focus on the Circular Economy. POTENTIAL MAP CIRCULAR FRYSLÂN Incineration (96.000 ton) Landfill (80.000 ton)
CO2 7.333.000 ton
Organic (76.000 ton) Paper (43.000 ton)
Waste (8%)
Plastics (30%)
GREY WASTE
Minerals (39%)
211.000 ton
POTATO/SEAWEED
OMRIN
Construction & demolition waste 930.000 ton
Roadside grass (37.000 ton)
BUILT ENVIRONMENT
52.103 TJ
Renewables (7%)
G
WASTE
PRODUCTS
87.000 ton
AGRO-PRODUCTS 960.000 ton AGRICULTURE
PLAST ICS
FLO RI C
MUN ICIP AL
PAPER PLASTIC ORGANIC
GREE
NH
Sugarbeet (21%) Other (15%)
OUS
E
STRU
VITE
D CLE CY RE
W AS
ANIMAL FEED
R
AT E
Milk (2 million) Meat (16.000 ton)
5,2 million ton
LIVESTOCK PRODUCTION
Eggs (14 million eggs, 980 ton) ER WAT BLACK
DECE NT
RAL
8.000 ton N surplus
AS W EY GR TE AS CW ANI ORG
ER PAP
LL UL OS E
PE INDPA USTRR Y BUILD BIOBA ING SED MATE RIALS BIO PRODPOLYM UCTIO ER N
K
BAN
UILD
Other animals (15%)
CE
SUG AR S
BANK
MATE RIAL FACILPROCES ITY SING NEWB
Concentrated feed (11%)
STAR CH &
DRACHTEN
SLUDGE
PHA PRODUCTION
BANK
Feed (29%)
CONSUMER PRODUCTS
R ATE TE W WAS
S
LIGNO BIORECELLU FINER LOSE Y
SNEEK DRINK INGWA PROD UCTIO TE N R
Milk cows (85%)
Mixed feed (22%)
R AL
CY
880.000 ton
LTU
E LOS CELLU
W TE
HEERENVEEN
OTHE
R
PACK AG
ING
RE
Rest flows Imported
80.000 ton
VITE
TP
GREE BIORE N FINER Y
RE
LA GREENDSCAP NWAS E TE
TE
Imported
Textile
CU
S GA IO
ROAD ASPH CONS ALT & TRUC TION
WW
SSES GRA
RE
Potato (35%)
Appliances
K
BAN
STRU
Feed
T RES
LEEUWARDEN
ON F
Food
152.000 ton
Grass feed (66%)
ID
CONSUMER
TER
SNI JAF VA L
WOOD
RI
C AC
Materials
BUILDING MATERIAL NEW CONSTRUCTION
320.000 ton
HUMI
. TC EE UR LT U
ICULTU
Consumer products
Resources
Pigs
ULTU RE
W PRODUCTIE: E LANDBOU NIEUW BV HENNEP OF VLAS
DIGES
B
INDUSTRY
HORT
AGRIC
1.070.000 ton
590.000 ton Industry waste
P
RETA IL TRAD E
THICK
FI
INDUSTRIAL RESOURCES
ULTU RE
AG
Office waste 210.000 ton
FOOD
646.445 ton
Non-drinks (66%)
Rest flows
Purified waste water to surface water
MOBILITY AND PUBLIC SPACE
Drinks (33%)
AGRIC
D FEE SS RA
P SA AS GR IT EIW
95 million m3
Rain (46,6%)
Furniture
SALTY
BEET S, GR & PO TATO AINS ES
WASTE WATER
95 million m3
DIE TAR YS U
SHO
THIN
MANURE
FEED
Sludge (62.500 ton)
OFFICES
WATER
ALGA E
WORMS ELS O PE S POTAT SK HU FLOUR
TOCK
Fosfate (423 ton) Heavy metals (20 ton)
Surface (0,02%)
RE
LIVES CONC EN FEEDTRATED
Nitrogen (3.096 ton) K
BAN
AQUA CULTU
PROCFOOD ESSIN G
Restflow agriculture (160.000 ton)
Nuclear (1%)
Drinking water (53,3%)
MEAT
Landscape green waste (62.000 ton)
Coal (3,9%)
Ground (0,1%)
SHEL FISH/ LFOOD MILK
B
ENERGY
Oil (28%)
TE SFA FO UM LCI CA
LEMENTS PP
RECYCLING
Seperately collected SMW 140.000 ton
Gas (60%)
20 %
CL
CONS DEMO
TRUC TIO
LITIO
N
N WA
STE
ED
PL AS TIC
CONS UMER GOOD S COMP
OUND
ING
PLAS PROD TIC UCTIO N
WW
TP RENO VATIO N
INSU LATIO N
& BUIL
DING MA TERIAL
Manure (9 million ton) AGRICULTURE
INFOGRAPHIC:
INFOGRAPHIC:
Circular Asset Management - plugging asset value leaks by closing loops
THE LINEAR ECONOMY
resources:
TAKE
MAKE
DISPOSE
Circular Asset Management - plugging asset value leaks by closing loops
THE CIRCULAR ECONOMY “Based on detailed product level modelling, the report estimates that the circular economy represents a net material cost saving opportunity of USD 340 to 380 billion p.a. at EU level for a ‘transition scenario’ and USD 520 to 630 billion p.a. for an ‘advanced scenario’” Source: Ellen MacArthur Foundation and McKinsey, 2011
Circular Asset Management - plugging asset value leaks by closing loops
THE VALUE OF MATERIALS
Circular Asset Management - plugging asset value leaks by closing loops
IS THIS CIRCULAR?
Marcopper mining disaster. Source: ProtectEcuador.org
How long will it last?: Critical resource demand. Source: Graedel et. al, Yale University
Circular Asset Management - plugging asset value leaks by closing loops
CIRCULAR ECONOMY CHARACTERISTICS • All materials are cycled infinitely • All energy is based on renewable sources • Biodiversity is structurally supported • Culture & society is supported • Health & well-being is supported • Not only financial value is generated • System is adaptive and resilient Source: Gladek et al., 2014. Circular Buiksloterham.
Circular Asset Management - plugging asset value leaks by closing loops
WE NEED TO FUNDAMENTALLY RETHINK THE DESIGN OF THE SYSTEM. THIS REQUIRES A NEW MINDSET AND NEW TOOLS.
Circular Asset Management - plugging asset value leaks by closing loops
THE GLOBAL MATERIAL FLOW: 2010 THIS IS HOW LINEAR THE GLOBAL ECONOMY ACTUALLY IS:
www.metabolic.nl @METABOLIC HQ
11 % 18 % 12 % 7% 25 %
NORTH AMERICA
DISPERSED (28,7 billion tons)
2%
CENTRAL AMERICA
WASTE WATER (1.500 km3)
2% 1% 16 %
SOUTH AMERICA
ORE RESIDUES (4,7 BT) FOOD (12 BT)
3%
FEED (10,3 BT)
8%
BIOMASS (24,8 billion tons)
FORESTRY (2,35 BT) NON-FOOD CROPS (0,02 BT) OIL (4,37 BT) GAS (2,84 BT)
13 %
EUROPE
20 % 6% 15 % 15 %
13 %
AFRICA
FOSSIL FUELS (44,1 billion tons)
6%
INDUSTRY (0,399 billion m3) INDUSTRIAL PRODUCTS (5,02 BT) TRANSPORT (1,85 BT) OTHER (6,51 BT)
ANIMALS (0,15 BT)
METAL (0,218 BT) PLASTIC (0,226 BT)
SHORT TERM STOCK) (1,01 billion tons)
OTHER (0,365 BT)
DOMESTIC (0,23 billion m3)
MEDIUM-TERM STOCK (2,36 billion tons)
FIBER (0,02 BT)
MINERALS (33 billion tons)
MUNICIPAL SOLID WASTE (3,4 billion tons)
DUMPED (0,71 BT) LANDFILLED (1,275 BT)
ORGANIC (0,88 BT)
OTHER (0,365 BT)
HAZARDOUS INDUSTRIAL (0,4 BT) CONSTRUCTION WASTE (1,4 BT) AUTOMOTIVE WASTE (0,083 BT)
CONSTRUCTION MINERALS (30,5 BT)
LEGEND: Biomass (food, feed, forestry, and other)
1%
Fossil fuels (coal, gas, oil, and other)
4%
MIDDLE EAST
RECYCLED (0,41 BT) INCINERATED (0,35 BT)
NON-HAZARDOUS INDUSTRIAL (1,2 BT)
LONG-TERM STOCK (32,1 billion tons)
INDUSTRIAL MINERALS (2,5 BT)
COMPOSTED (0,21 BT)
NON MSW WASTE (7,8 billion tons)
PAPER (0,407 BT)
METALS (7,38 BT)
FRESH WATER (2.1 billion m3)
6%
WOOD (1,1 BT)
CHEMICALS (1,03 BT) COAL (36,89 BT)
ORES (15,6 billion tons)
6%
6%
FOOD WASTE (2,19 BT)
IRRIGATION (1,47 billion m3)
4% 26 %
1%
Ores
5%
Minerals (industrial and construction) Fresh water
• 117 billion tonnes extracted
OCEANIA ASIA 2% 16 %
39 % 29 % 32 % 60 %
11 % 1%
67 %
TOTAL GLOBAL MATERIAL FLOWS, 2010
• 71,8 billion tonnes “used”
The Global Metabolism Flow that was conducted by Metabolic in 2010 shows that we have extracted an estimated 71,8 billion tonnes of material from the Earth to fuel the global economy. These include: biomass (food, feed, forestry, and other), fossil fuels (coal, gas, oil, and other), ores, minerals (industrial and construction). Out of these: • Almost 11% is wasted prior to use (food and industrial waste). • An estimated 18% of approximately 3,4 billion tonnes of global Municipal Solid Waste is recycled or composted. An additional 10% is incinerated. The remainder is lost.
• Out of the total annual solid waste collection of 11,2 billion tonnes per year, only an estimated 6,2% is recovered in a form that has high utility for future use (recycling or composting). An additional 33% is recovered in a form that has low-medium utility for future use (downcycling or incineration). • Aside from these solid materials, the other largest “lost” flow is untreated wastewater: 80% of domestic and 70% of industrial wastewater streams remain untreated (184,4 km3 and 279,3 km3 respectively).
This immense material throughput and the inefficiencies of each stage of materials’ and products’ lifespans and the overall speed at which they are extracted are obviously too large and call for a radical rethinking of how the current system is designed. The linear “take, make, waste” model of production-consumption systems is self-evidently unsustainable, with the operation of some key industries being primarily responsible for the major biospheric and human wellbeing issues.
Reducing material throughput, increasing efficiency gains, and extending the useful lifespan of materials and products (both within a single product's life cycle and across product cascades), and closing resource loops is essential for fixing the global metabolism and changing the way the current economic system is functioning.
Circular Asset Management - plugging asset value leaks by closing loops
IMPROVING BUSINESS AS USUAL • OPPORTUNITY SIZE: • a minimum of 3,4 billion tonnes per year • 4.5% of used annual material extraction
Circular Asset Management - plugging asset value leaks by closing loops
THINKING OUT OF THE BOX • OPPORTUNITY SIZE: • a minimum of 15 billion tonnes per year • 30% of used annual material extraction
Circular Asset Management - plugging asset value leaks by closing loops
CIRCULAR ECONOMY BUSINESS MODELS • Power of the inner circle:
• Pay per use and leasing • Repair • Waste reduction • Sharing platforms
• The power of circling longer:
• Performance based contracting • Takeback guarantees • Through-sales • Refurbishment
• Power of cascaded use:
• Upcycling • Recycling • Supply chain collaboration
• The power of pure inputs:
• Monomaterials • Certified materials • Circular procurement and sourcing
Circular Asset Management - plugging asset value leaks by closing loops
CIRCULAR ECONOMY CASES
Circular Asset Management - plugging asset value leaks by closing loops
EXAMPLE IN PRACTICE: ECOVATIVE
Circular Asset Management - plugging asset value leaks by closing loops
EXAMPLE IN PRACTICE: PROTIX
Circular Asset Management - plugging asset value leaks by closing loops
EXAMPLE IN PRACTICE: PARK 20|20
Circular Asset Management - plugging asset value leaks by closing loops
EXAMPLE IN PRACTICE: SCHIPHOL
Circular Asset Management - plugging asset value leaks by closing loops
PROCUREMENT + ASSET MANAGEMENT PRODUCTIVITY OF EMPLOYEES Annual societal costs related to workplace stress and repetitive-strain injury amounts to €6 billion. 2 to 4 percent of employees call in sick due to work related stress every year
23.000 kg
1,5 million kg
equipment
structural
375.000 kg
45.000 kg
36 million kg
38.000 kg
2 million MJ
water
fuel
energy
infrastructure furnishing
Absenteeism in the Netherlands is 7,6 days/year, costing employers approximately €10,8 billion
7,9%
?
unknown
6,5%
59,7%
16,8%
export
recovered
recycled
2,9%
6,1%
landfill energy recovery
10.000 kg C02 emissions GLASS
7 million kg
120.000 kg
waste
FACADE
waste
CONSTRUCTION (€ 22 million)
DECONSTRUCTION
FRAME
(€ 600.000)
emissions REFURBISHMENT CYCLE ( ~10 yrs)
FURNITURE & FIXTURES
waste WALLS & CEILING
emissions INSULATION & FRAME
RENOVATION CYCLE (20-30 yrs)
720.000 kg GLASS
waste INFRASTRUCTURE
200.000 kg
1 million kg
72 million kg
6,7 million kg
89 million MJ
90 million MJ
Paper
Food
water
fuel
electricity
heat
hazardous waste 3,4 million kg HEATING VENTILATION & COOLING LIGHTING ELECTRONICS
DAILY CYCLE (150 FTE x 50 yrs)
emissions 236 million kg CO2
solid waste 2,25 million kg
PERSONAL TRANSPORT
CAFETERIA PAPER
TOILET
waste water 72 million kg
TAP OTHER
0 years
10 years
20 years
30 years
INPUT TIMELINE
40 years
50 years
BASIC DATA ASSUMPTIONS FOR MAP 0 years
10 years
20 years
30 years
OUTPUT TIMELINE
40 years
50 years 150 FTEs
5.000 m
2
50 years
Circular Asset Management - plugging asset value leaks by closing loops
APPLICATIONS OF CIRCULAR PROCUREMENT AND ASSET MANAGEMENT
Circular Asset Management - plugging asset value leaks by closing loops
Applications of Circular Procurement and Asset Management
Circular Asset Management - plugging asset value leaks by closing loops
Applications of Circular Procurement and Asset Management
Circular Asset Management - plugging asset value leaks by closing loops
Spaarndammertunnel
Circular Asset Management - plugging asset value leaks by closing loops
Spaarndammertunnel
Circular Asset Management - plugging asset value leaks by closing loops
Spaarndammertunnel
Circular Asset Management - plugging asset value leaks by closing loops
Spaarndammertunnel
Circular Asset Management - plugging asset value leaks by closing loops
Spaarndammertunnel Aanbevelingen » Circulaire varianten studie; » Levenscyclus denken meenemen in de aanbesteding; » Functionele ipv technische eisen; » Verschuiving van eigendom van eindgebruiker naar producent; » Transparantie over de gebruikte materialen en installaties.
Circular Asset Management - plugging asset value leaks by closing loops
Circulair aanbesteden (1) Materiaalgebruik minimaliseren
Energieverbruik minimaliseren
Maximaal gebruik van secundaire grondstoffen
Vermijd gebruik toxische en kritische grondstoffen
Maximaal hoogwaardig hergebruik van producten, onderdelen en grondstoffen
Vergroot ketentransparantie
Circular Asset Management - plugging asset value leaks by closing loops
Grondstoffenpaspoort data
Circular Asset Management - plugging asset value leaks by closing loops
Grondstoffenpaspoort data Benodigde primaire, secondaire, toxische producten, onderdelen en grondstoffen Werkpakket Leverancier
Circular Asset Management - plugging asset value leaks by closing loops
Grondstoffenpaspoort data Benodigde primaire, secondaire, toxische producten, onderdelen en grondstoffen
Vrijkomende producten, onderdelen en grondstoffen
Werkpakket
Afnemer
Leverancier
Circular Asset Management - plugging asset value leaks by closing loops
Grondstoffenpaspoort monitoring
Opleveren per werkpakket Bonus- malus regeling Onderhoudsplan Sloopplan
Circular Asset Management - plugging asset value leaks by closing loops
Circulair aanbesteden (2) Materiaalgebruik minimaliseren
Levensduur, Total Cost of Ownership, Grondstoffenpaspoort => MKI (Milieu Kosten Indicator, DuboCalc) & prestatie ipv bezit
Maximaal gebruik van secundaire grondstoffen
Grondstoffenpaspoort
Maximaal hoogwaardig hergebruik van producten, onderdelen en grondstoffen
Grondstoffenpaspoort
Circular Asset Management - plugging asset value leaks by closing loops
Circulair aanbesteden (3) Energieverbruik minimaliseren
Total Cost of Ownership
Vermijd gebruik toxische en kritische grondstoffen
Grondstoffenpaspoort
Vergroot ketentransparantie
Grondstoffenpaspoort
Circular Asset Management - plugging asset value leaks by closing loops
Waarde
Tijd
Circular Asset Management - plugging asset value leaks by closing loops
Sparjebird brug
Circular Asset Management - plugging asset value leaks by closing loops
