Select Committee on Environment, Food and Rural Affairs Appendices to the Minutes of Evidence


APPENDIX 7

Memorandum submitted by Lafarge Cement UK

EXECUTIVE SUMMARY

  The UK cement industry has the potential to be a significant part of the solution to the problem the country faces in dealing with its disposal obligations for a range of wastes.

  The cement industry and Lafarge Cement UK (LCUK), previously Blue Circle Cement UK, in particular already has a strong track record of success in delivering part of the solution. However, the outdated regulatory process applied by the Environment Agency restricts the industry's potential to contribute fully to sustainable development in the cement sector and, in turn, to sustainable development in the UK.

  LCUK urges the Committee to consider initiating a full review of the regulatory framework governing the use of waste derived material in cement manufacturing; the cement industry's potential to contribute to not only the solutions to hazardous waste disposal but also a wide range of other wastes; and to ensure that best environmental options are adopted in the use of hazardous and non-hazardous wastes.

  LCUK requests the Committee to consider that any new regulatory system reflects:

    —  European best practice in terms of permitting processes, without loss of environmental rigour;

    —  The extensive knowledge and experience gained in the UK and Europe in the use of waste derived material since the Committee last looked at this issue; and

    —  The UK cement industry's public commitment to earning and retaining its "licence to operate" through its environmental performance and its stakeholder engagement activities.

    —  The competitive position of the UK cement industry that can work to maximise environmental additionality.

  The cement industry in the rest of Europe is actively encouraged to play a significant role in providing solutions to hazardous and non-hazardous waste problems. The UK and its cement industry must not be left behind in terms of environmental, economic and socially responsible solutions to waste problems because of out dated regulatory systems. The Substitute Fuels Protocol must be re-invented to reflect best practice in the permitting and use of waste derived materials in the cement process and it must not be allowed to stifle the developing use of wastes as alternative raw materials.

  Lafarge invites the Committee to visit one or more of its mainland European plants to see and hear more about the use of hazardous and non-hazardous waste in the cement manufacturing process.

  Lafarge would be happy to present oral evidence to the Committee in terms of UK and European comparisons.

INTRODUCTION

  LCUK welcomes the Committee's inquiry and the wider waste review being conducted by the Performance and Innovation Unit.

  Focus of LCUK submission

  LCUK's submission to the committee focuses on the following aspects:

    —  Experience of constraints in the UK regulatory system for permitting the use of wastes (including hazardous wastes) in the cement process-governed by the Environment Agency's Substitute Fuels Protocol.

    —  Experience of the regulatory system in France for permitting the use of wastes (including hazardous wastes) in the cement process.

    —  Vision for the future.

LAFARGE CEMENT UK

  Lafarge Cement UK (LCUK) is the largest cement maker in the UK and is part of the Lafarge Group. LCUK has capacity to supply more than six million tonnes of cement a year from its nine cement works and employs over 1,500 people. LCUK was formerly known as Blue Circle Cement UK, but changed its company name to Lafarge Cement UK in January 2002. The Blue Circle product brand name has been retained.

  LCUK has been part of the Lafarge Group since July 2001, when Lafarge acquired Blue Circle Industries PLC. Lafarge is the world leader in building materials, employing 82,000 employees. It has leading positions in cement, concrete and aggregates, roofing and gypsum.

  Use of Wastes in the Cement Making Process—The Riple Bottom Line Effect

  The international cement industry has been substituting waste derived fuels for virgin fossil fuels for over ten years and can be considered to be highly proficient in its understanding, handling and environmental control of such wastes.

  The vast majority of experience and knowledge in this area has been developed in main-land European countries where the cement industry has traditionally been seen as an important contributor to the waste solution. LCUK now benefits from the large reservoir of knowledge that resides in its parent company, Lafarge S.A. of France. This similarly applies to other UK cement manufacturers who are either German owned or have manufacturing operations in other European countries.

  The cement making process is ideal for realising material or energy value from waste materials. LCUK is already engaged in the advantageous use of wastes including hazardous wastes either as fuel or raw materials in its manufacturing process.

  The company is currently using scrap tyres at three of its factories and recycled liquid fuel (RLF-classified as hazardous waste) at one. RLF is derived from solvent based wastes that are blended to a tight specification before they are suitable for use as cement kiln fuel. An active programme of seeking permits for trials and permanent permission to use further fuels is underway. This can include materials manufactured from materials classified as hazardous.

  The use of waste derived material is core to the company's environmental programme and provides significant steps forward in terms of sustainability and business performance. The use of waste delivers the "triple bottom line" of sustainable development, including:

    —  Improving the environmental performance of the factories-enhancing the environment for the communities living nearby.

    —  The most recent trials run by LCUK showed that using RLF cut the overall impact of that factory on the local environment by 25 per cent.

    —  Moving materials up the waste hierarchy from disposal to energy recovery-saving landfill space and helping deliver government waste policy.

    —  LCUK's Dunbar Works is permitted to use up to 40,000 tonnes of RLF a year-liquids that would otherwise have been disposed of in landfill sites or incinerated.

    —  Conserving fossil fuels for future generations-moving towards the more sustainable use of resources.

    —  A tonne of RLF contains energy equivalent to 80 per cent of that in a tonne of coal.

    —  Improving the factories' commercial performance by helping control rising energy costs-protecting the jobs of LCUK's 1,500 plus direct employees plus related dependent jobs.

    —  Energy represents around 30 per cent of LCUK's fixed production costs.

Playing a significant role

  LCUK can play a significant role in using society's and industries' wastes and by-products. Through initiatives already underway the company anticipates that within five years it will be using annually:

    —  Up to 150,000 tonnes of used tyres, one of the UK's key problem wastes, as fuel; and

    —  500,000 tonnes of industry by-products blended to create alternative raw materials

  A regulatory system more closely related to best practice in Europe would enhance the benefits to the country and environment, by increasing the speed with which the full time use of the materials could be allowed. This would consequently give greater scope to use more materials too.

REGULATION APPLIED TO THE UK CEMENT INDUSTRY

  The Environment Agency regulates the UK cement industry under the Integrated Pollution Control regime. This regime is currently in the process of being replaced by the Integrated Pollution Prevention and Control system for which all cement makers have submitted permit applications.

  The regulations governing the permitting of alternative fuels is set out in the Agency's guidance note "The Substitute Fuels Protocol" (SFP). The Agency developed this from recommendations made following two House of Commons Select Committee enquiries into the regulation of the cement industry and alternative fuels held during the mid 1990s.

It applies only to the cement and lime processes, while other industrial processes utilising the same materials are not required to follow the same rigourous testing and trials regime.

  The SFP reflects the concerns and issues of ten years ago, but has been overtaken by a depth on knowledge and experience gained across the international cement industry, particularly the main-land European cement industry.

  LCUK contends that the SFP is now out-dated and works against the adoption of best environmental solutions. This is clearly illustrated by the fact that trials on the same alternative fuel at another works requires the full testing protocol even though the environmental benefits have been confirmed at another works and often on the same type of kiln. The UK cement industry continues to burn unnecessary amounts of coal when potential fuel is landfilled or incinerated without energy recovery because the regulatory system adopted by the Environment Agency makes it too difficult and costly to use these wastes, despite strict-and welcome-controls on materials handling and stack emissions.

  France, Germany, Belgium and Switzerland now spearhead best practice in terms of permitting and the use of waste derived fuels and this is reflected in their recovery rates of waste (hazardous and non-hazardous) for use in the cement process:

Average Use of Waste Derived Fuels in Cement Kilns in Europe
UK6 per cent
European Average12 per cent
Germany and France30-40 per cent
Belgium50 per cent


  A comparison of the time it takes to secure permission to use new fuels in the UK and France shows:

    —  in the UK it would take seventeen months or more to secure permission to use a single fuel at a factory;

    —  in France it takes a maximum of twelve months to get a permit to use fuels from a list of specified types of waste.

  The full permitting process is set out below:

Waste fuels permitting process-comparison of UK and France
UK
Apply for and get permission for a trial using the a single new fuel 4 months
Run the trial using the fuel6 months
Prepare report on trial3 months
Apply for and get permanent permission to use the fuel 4 months
Full time use of single fuel commences after 17 months**
France2 months
Apply for licence to use a list of "wastes" as fuel-negotiation with Prefecture 2 months
Public consultation*2 months
Dossier on the application reviewed by committee and signed 2 months
Full time use of the fuels commences after 6 months**


  *This aspect is at the discretion of the prefecture, depending on the level of interest in the operation-this can be extended

  **This is for the shortest possible period both processes can take. In the UK it the final stage alone has been known to take 14 months; in France-it usually takes between nine and 12 months.

  The cement industry in the rest of Europe is actively encouraged to play a significant role in providing solutions to hazardous and non-hazardous waste problems. The UK and its cement industry must not be left behind in terms of environmental, economic and socially responsible solutions to waste problems because of out dated regulatory systems. The Substitute Fuels Protocol must be re-invented to reflect best practice in the permitting and use of waste derived fuels in the cement process and it must not be allowed to stifle the developing use of wastes as alternative raw materials.



 
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