Select Committee on Environment, Food and Rural Affairs Written Evidence


Memorandum submitted by the British Cement Association (BCA) (X16)

EXECUTIVE SUMMARY

  1.  The cement sector has encountered difficulties similar to those experienced by most parts of UK industry in relation to the introduction of the Landfill Directive, viz.

    1.1  Uncertainty regarding the waste acceptance criteria, (WAC).

    1.2  Confusion as to whether on-site landfill was to be covered within the IPPC regulations and permits, or whether a separate landfill permit was required.

    1.3  Delays, lack of communication, and absence of pragmatism in the process of applying for landfill permits.

  2.  The British Cement Association and its members believe that important components in the provision of new waste treatment facilities are:

    2.1  certainty in the scope and applicability of new regulations, particularly in the UK implementation of EU provisions, eg the Waste Acceptance Criteria;

    2.2  certainty in the ambit of the existing EU definition of "waste", the associated definitions of "disposal", "recovery", and "recycling", and the relative importance of the waste treatment options within the waste hierarchy;

    2.3  securing funding for new plant in the United Kingdom from UK and foreign-controlled parent companies;

    2.4  obtaining planning permission; and

    2.5  obtaining operating permits from the regulatory authorities.

  3.  A major obstacle to the installation of new waste treatment facilities is a poor public perception of waste treatment, on the grounds of perceived health and environmental problems. The cement industry believes that both government and industry have an important part to play in allaying these concerns, and it is engaged in a wide number of to stakeholder engagement initiatives.

  4.  The next two to three years will br critical, for although the Landfill Directive and new hazardous waste provisions will effective, the waste industry will not have installed the requisite treatment capacity. It is therefore of the greatest importance that the EA's proposed modifications to the Substitute Fuels Protocol are introduced as soon as possible, to enable the installed capacity with the cement industry to be employed.

BACKGROUND

1.   Wastes generated by the UK Cement Industry

  The British Cement Association is the trade and research organisation that represents the interests of the United Kingdom's cement industry in its relations with Her Majesty's Government, the European Union and relevant organisations in the United Kingdom. The members of the BCA (Buxton Lime Industries, Castle Cement, Lafarge Cement UK and Rugby Cement) are the major domestic manufacturers of Portland Cement producing over 90% of the cement sold in the UK.

  2.  A relatively small quantity of waste is generated in the cement manufacturing process. The major waste arisings are cement kiln dust, CKD, or by-pass dust, BPD. Kiln dusts from the cement manufacturing process are historically referred to as either cement kiln dust or by-pass dust, depending on the type of process.

  3.  Cement kiln dust is classified as non-hazardous waste, whereas by-pass dust is classified as hazardous waste on account of its higher content of calcium oxide, which categorizes it as an irritant.

  4.  Where feasible, CKD and BPD are recovered within the manufacturing process. If this is not possible due to quality or other constraints, then alternative uses are sought. The landfill of these dusts is used as a last resort.

  5.  The industry is proactive in reducing the quantity of CKD and BPD sent to landfill. In 1998 a total of 289,207 tonnes of these dusts were disposed of off-site by landfill, whereas in 2002, the figure was 110,069 tonnes.

  6.  Under the Environment Agency Sector Plan for the cement industry[48] the sector will set targets to further reduce the quantity of CKD, BPD and other dust sent to landfill[49]

  7.  The cement sector has encountered difficulties similar to those experienced by most parts of UK industry as a consequence of the introduction of the Landfill Directive, viz.

    7.1  Uncertainty regarding the waste acceptance criteria, (WAC).

    7.2  Confusion as to whether on-site landfill was to be covered within the IPPC regulations and permits, or whether a separate landfill permit was required.

    7.3  Delays, lack of communication and absence of pragmatism in the process of applying for landfill permits, which has resulted in an additional, unnecessary workload for all concerned.

8.   Wastes Recovered by the UK Cement Industry

  BCA has presented evidence on the recovery of waste by the UK cement industry to this and other Select Committees[50],[51] , [52], [53]and to the Hazardous Waste Forum. Annex I updates and supplements this earlier information.

  9.   Waste-derived fuels. In the early 1990s cement manufacturers in the UK were among the first to burn waste-derived fuels, but as a consequence of the extra statutory Substitute Fuels Protocol, the rate of the substitution has fallen behind those in other European countries[54]

  10.  From a level of 3% substitution in 1990, the average rate in Europe rose sharply to 12.2% in 2001, saving 3.5 million tonnes of coal and resulting in significant reduction in stack emissions. However, in almost half of European countries, cement works burn extremely high levels of waste-derived fuel:

    >80%, Netherlands.

    >40%, Switzerland, Austria.

    >30%, Belgium, France, Germany, Norway, (Sweden 29%).

  11.  In 2001, 4,370,000 tonnes of waste were recovered in European cement kilns. Of these, 20% were liquid, 80% were solid, and about one-third were hazardous wastes.

  12.  In addition to the many different categories of waste-derived fuel recovered on a country basis—14 solid fuels and three liquids—in Europe it is common practice to burn four or more of these materials [up to nine at the Obourg plant] at a given kiln.

  13.  In contrast to European practice, the level of substitution within the United Kingdom is only 7%, and the majority of plants using waste-derived fuels are permitted to use no more than two.

  14.   Waste-derived substitute raw materials. Waste-derived materials are also used as a substitute for other cement-making minerals, and in 2001 the European cement industry achieved a direct saving of 11.5% of its natural mineral raw materials usage, which is equivalent to almost 35 million tonnes of these materials.

  15.  Other EU countries have a lower reliance on landfill but a higher use of both co-incineration by cement kilns using alternative fuels and high temperature incineration. Cement kilns, therefore, have a very positive role to play within the UK's waste infrastructure.

  16.  These advantages cannot be fully realized due to substantial inertia within the regulatory regime, principally through the Substitute Fuels Protocol, (SFP), see section 24 & seq. Innovation is stifled and the inherent flexibility of the cement making process is thereby limited.

  17.  To realise the industry's potential, a more efficient process for granting PPC authorizations for using waste-derived fuels is required urgently, replacing the voluntary, extra-statutory SFP with a permitting process that reflects the considerable experience gained across Europe.

THE FUTURE CONTRIBUTION OF THE UK CEMENT INDUSTRY TO WASTE MANAGEMENT IN THE UK

  18.  The implementation of the Landfill Directive and the recent modifications to the regulation of hazardous wastes are changing the management of waste within the United Kingdom, placing more rigorous controls on those materials that continue to be disposed of by landfill, and requiring the development of a modern waste infrastructure in which a much greater emphasis is places upon recovery and recycling.

  19.  With its large potential capacity for waste-derived fuels, Annex I, and its growing use of waste-replacements for traditional raw materials, the UK cement industry has an important role to play in the development of this new infrastructure.

  20.  In its report The State of the Nation—2004, the Institute of Civil Engineers estimates that up to 2,300 new waste treatment facilities must be operational by 2020 to avoid a major crisis involving millions of tonnes of untreated waste.

  21.  The British Cement Association and its members believe that important components in the provision of new facilities are:

    21.1  certainty in the scope and applicability of new regulations, particularly in the UK implementation of EU provisions, eg the Waste Acceptance Criteria;

    21.2  certainty in the ambit of the existing EU definition of "waste", the associated definitions of "disposal", "recovery", and "recycling", and the relative importance of the waste treatment options within the waste hierarchy;

    21.3  securing funding for new plant in the United Kingdom from UK and foreign-controlled parent companies;

    21.4  obtaining planning permission; and

    21.5  obtaining operating permits from the regulatory authorities.

  22.  With regard to the developing the required infrastructure within the UK to treat wastes, the cement industry is in a strong position, viz:

    22.1  a substantial part of the cement industry's major capital expenditure is completed and the requisite planning permissions have been obtained; and

    22.2  operations within the cement industry currently fall within the IPPC regime, with its strict requirements on the measurement and reporting of emissions.

    Consequently, the introduction of the Waste Incineration Directive in 2005 is likely to be less problematic, compared for example with the burning of waste oils and meat and bone meal, (MBM), by the power industry and roadstone producers.

  23.  The next two to three years will critical, for although the Landfill Directive and new hazardous waste provisions will effective, the waste industry will not have installed the requisite treatment capacity. It is therefore of the greatest importance that the EA's proposed modifications to the Substitute Fuels Protocol are introduced as soon as possible, to enable the installed capacity with the cement industry to be employed.

THE SUBSTITUTE FUELS PROTOCOL, SFP

  24.  The major barrier to realizing the industry's potential waste treatment capacity is obtaining permission from the Environment Agency for burning waste-derived fuels. This falls within the voluntary, non-statutory Substitute Fuels Protocol, (SFP), a measure about which the British Cement Association has informed this and other Select Committees on a number of occasions50, 51, 52, 53.

  25.  In its submission to this Committee's inquiry into Hazardous Waste, BCA requested that the Environment Agency "review the operation of the Substitute Fuels Protocol and speed up the adoption of alternative fuels (by the cement industry)". The Committee concluded[55]

    The Committee believes that the primary consideration in allowing waste to be incinerated should be the overall environmental impact of doing so. It remains for the Environment Agency to decide how best to ensure that the environmental impact of waste management is minimized within the current regulatory regime.

  26.  The determining role of the Environment Agency in relation to the current proposed modification of the SFP has been further emphasized by the Prime Minister, who stated in response to a recent PMQ[56]

    The Environment Agency explanation, of course, is that there will be sufficient controls [under the proposed revision to the SFP] to meet environmental objections. It is important to realise that the Agency's position is not that it does not accept that there is a legitimate issue that must be dealt with, but it has proposed safeguards and controls that it says are adequate to meet those objections. When we have an independent Environment Agency, it is important that we take account of what it says.

  27.  The Environment Agency has concluded recently its consultation into modification to the Substitute Fuels Protocol, details of which are to be presented to the EA Board on 13 October 2004.

PUBLIC CONCERN REGARDING THE POTENTIAL HEALTH RISKS OF WASTE TREATMENT PLANT

  28.  Whilst there is growing public enthusiasm for "recycling" (ie segregation of domestic refuse at source), this is at odds with its attitude towards plant for the treatment of this material.

  29.  An obstacle to achieving the goal of new waste treatment facilities is the perception of waste treatment as being inherently bad for the health of those living in the vicinity of an installation, and the translation of these fears into concerted action to shut down existing facilities and prevent new ones being built.

  30.  In a bid to inform the debate about waste policy, Defra commissioned Enviros and the University of Birmingham[57]to produce a report comparing the environmental impacts of various waste options[58]The report focuses on air quality and provides an indication to local communities that in comparison to other sources of pollutants encountered in daily life, the health risks associated with the treatment of municipal waste are minor.

  31.  The British Cement Association welcomes this report, and recognizes the important of addressing stakeholder concerns in this area. The industry is committed to stakeholder engagement through its sustainable development initiatives, which include:

    31.1  The concrete sector sustainability strategy.

    31.2  The World Business Council for Sustainable Development, (WBCSD), Cement Sector Initiative, (CSI), in addition to company-specific initiatives.

  32.  In addition, a two-day master class for the CEOs of BCA's Member Companies was recently run by Jonathon Porritt, following which the UK cement industry committed to the five year goal of becoming an industry leader on sustainable development through its goal directed plan UK Cement Industry: Creating Societal Value.

  33.  The local communities around cement factories are among the industry's key stakeholders. UK cement producers have regular communications with local stakeholders as part of their normal day-to-day operations. Frequent community engagement is supplemented on a site-by-site basis focussing on key licence to operate issues, for example quarry extensions and waste-derived fuels trials.

  34.  Communications take the form of:

    —  Newsletters explaining plans and progress on such issues such as plant developments and the introduction of waste-derived fuels.

    —  Open Days allowing communities to see the working operations.

    —  Open Door Policies under which members of the community can telephone and request a meeting or a site visit.

    —  Liaison committees providing a regular forum for dialogue between companies and community representatives. (The Environment Agency is represented on these liaison committees.)

  Targets relating to stakeholder engagement are incorporated in the EA Cement Sector Plan, Annex II.

  35.  To supplement these initiatives, the BCA is in discussion with the Environment Council, with a view to extending the effectiveness of its stakeholder engagement.

  36.  In response to a parliamentary question on the environmental impact of using recycled liquid fuels in cement kilns, Environment Minister Elliot Morley stated:

    It is perfectly reasonable for people to raise questions about the impact of changes, in this case in relation to what is burned in cement kilns, but I am sure that the Hon. Gentleman would agree that, if one is to take people's legitimate concerns seriously, it is not reasonable to distort the arguments or unnecessarily frighten or worry people when there are no grounds to do so. Such waste liquid solvents have been used in other cement works in the UK and elsewhere in Europe for over a decade, so the technology is not new and the risks associated with it are well known and understood[59]

  37.  The cement industry wholeheartedly supports the Minister's view.

  38.  Responsibility for waste policy is vested across many disparate parts of Government and its agencies. Policy needs to be drawn together into a clear framework and a coherent and complimentary strategy. It is imperative in order that industry and government can deliver the investment necessary to put in place an infrastructure that can deal with the UK's waste problem as the landfill directive is fully implemented.

Annex I

PRESENT AND FUTURE WASTE RECOVERY BY THE CEMENT INDUSTRY

Fuel2001 20012002 200220032004 to 2007
Permitted Capacity ActualActual ActualActual Estimate
BCA Submission to EFRA Committee5 Hansard[60] Hansard60BCA data[61] BCA dataBCA Submission to EFRA Committee5
Waste-derived liquid fuels110,000 83,50298,345118,474 115,665200,000
Waste oils00 090,000 to
345,000
Tyres40,00030,674 37,48142,77865,621 290,000
Paper, plastic, and packaging0 07,8908,200 0500,000
Meat and Bone Meal, MBM0 0000 140,000
Processed Sewage Pellets, PSP0 00836 10,67540,000
TOTAL150,000 114,176143,716 169,288191,961 1,260,000
excl waste oils
1,515,000
incl waste oils
8 October 2004

Annex II

COMMUNITY ENGAGEMENT WITHIN THE EA CEMENT INDUSTRY SECTOR PLAN[62]

OBJECTIVE 7: TO IMPROVE TRANSPARENCY, UNDERSTANDING AND ENGAGEMENT BETWEEN THE AGENCY, INDUSTRY AND OTHER STAKEHOLDERS

Background

  It is important that all stakeholders know how environmental goals and objectives for the industry can be achieved and what barriers exist. In particular, the Agency and industry should look to build upon initiatives to engage with the public to achieve the environmental benefits of the use of waste resources.

Performance indicators

  7.1  Number (and proportion) of plants with local liaison groups who were active during the year.

  7.2  Number (and proportion) of environmentally significant proposals during the year that were pro-actively communicated by companies to local communities.

  7.3  Number (and proportion) of local liaison meetings attended by Agency inspectors.

  7.4  Number (and proportion) of substitute fuel decisions during the year for which an Agency Decision Document was issued.





48   To be published shortly. Back

49   Tonnes landfilled per tonne of cement manufactured. Back

50   House of Commons, Environment, Food and Rural Affairs Committee: "Hazardous Waste", Eighth Report of Session 2001-02, HC 919. Back

51   Environmental Audit Committee Inquiry into Waste, October 2002. House of Commons Environmental Audit Committee: "Waste-An Audit", Fifth Report of Session 2002-03, HC99-I and HC 99-II, page Ev 163. Back

52   EFRA Select Committee Inquiry on the Future of Waste Management, January 2003. House of Commons, Environment, Food and Rural Affairs Committee: "The Future of Waste Management", Eighth Report of Session 2002-03, HC 385-II, page Ev 207. Back

53   House of Lords Select Committee on the European Union, Sub Committee D (Environment, Agriculture, Public Health and Consumer Protection)-"European Union Waste Management Policy, HL Paper 194, 18 November 2003, page 105. Back

54   Data from CEMBUREAU. Back

55   Reference 3 at paragraph 63, page 19, and Conclusion (o), page 26. Back

56   Prime Minister's Questions, 23 June. Prime Minister's reply to Q4, [178979], Dr Andrew Murrison (Westbury) (Con). Back

57   Mark Broomfield of Enviros and Professor Roy Harrison were the authors of this report, "The review of environmental and health effects of waste management-municipal waste and similar wastes", which is available at www.defra.gov.uk/environment/waste/health-effects/index.htm Back

58   "Probe clears waste emission", Air Quality Management, June 2004, Issue 102, pages 1, 6-8. Back

59   Hansard, House of Commons-Adjournment Debate, 27 November 2003: Columns 230-236. Back

60   Elliott Morley, Hansard, 18 June 2003, Col 288W; Alun Michael, Hansard, 3 June 2003, col 18W. Back

61   The higher usage within the BCA data is possibly a combination of the omission of PSP at Cauldon, and the non-inclusion of Dunbar works, (which falls within the control of SEPA rather than the Environment Agency\. Back

62   Environment Agency Sector Plan for the Cement Industry, in preparation. See "Greener Business is Good Business: Spotlight on Business, Environmental Performance in 2003", Environment Agency, July 2004, page 7; and "Performance: A corporate responsibility report from the UK Cement Industry", July 2004, page 10. Back


 
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