Overgaard practical approach towards green recycling

By Svend Overgaard

Prac%cal approach towards green recycling -­‐ Outline 1. Brief introduc5on to LITEHAUZ 2. Hazardous materials in ship recycling 3. Environmentally Sound dismantling (findings of the UNEP study)

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Our organiza%on

ENVIRONMENTAL SERVICES For the mari%me sector

Litehauz was founded in december 2007

Our office is located in Holte, north of Copenhagen, Denmark

Frank Stuer-­‐Lauridsen CEO and Senior environmental Consultant Svend Boes Overgaard Senior Environmental Consultant & Office Manager Pernille Bohn Environmental Consultant Monikka Bergstrøm Environmental Consultant DiMe Kristensen Environmental Consultant MaMhew Woods Junior Environmental Consultant

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The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Selected Services and references Ship recycling

•

Discharges and emissions

•

World Bank study -­‐ The Ship Breaking • and Recycling Industry in Bangladesh and • Pakistan •

•

•

UNEP (United Na5ons Offices in Geneva)– Feasibility study for environmentally sound ship dismantling Development of IHMs, Green Passports, and Asbestos surveys on 15 vessels.

Black Carbon emissions from interna%onal shipping LNG as fuel in short sea and ferry sector Cost of NECA in North Sea Costs for shipping – PSSA around Greenland

Ballast water

• • •

Exemp%ons under regula%on A-­‐4 Assistance to developers of ballast water treatment systems Development of in-­‐line monitoring of BWMS performance

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The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Ship Recycling and Hazardous Materials

Ship recycling methods Slipway – Landing (Aliaga )

Beaching (Chidagon)

Pier Breaking – Along side (Changjiang Ship Breaking Yard, China)

Drydock (Able Seaton Port)

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Hazardous Materials – Bangladesh (2008-­‐2030) Hazardous material (unit)

Remain at Sold with Waste Unknown or yard/ in beach equipment or Re-­‐rolling mills disposal site informal waste sediment as item (formal) disposal site

Asbestos (t)

37,525

3,950

0

0

37,525

PCB mainly in cables (t)

24,000

216,000

0

0

0

ODS (PU foam) (t)

42,000

2,100

0

0

165,900

Paints (metals, TBT, PCB) (t)

3,460

3,460

58,820

0

3,460

Heavy metals (t)

169.5

169.5

339

0

0

1,978,000

0

0

0

0

107,000

0

0

0

0

193

389

0

0

193

33,750

607,500

0

0

33,750

Waste liquid organic (m3) Miscellaneous (sewage) (m3) Waste liquids inorganic (t) Reusable liquids organics (t) (World Bank, 2010)

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The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Main regulatory drivers for greening of the industry

• The Hong Kong Interna%onal Conven%on for the Safe and Environmentally Sound Recycling of Ships

• Mul%lateral agreements • Basel Conven%on, • Ban Amendment • Stockholm Conven%on • Montreal Protocol

• ILO agreements on worker’s rights and occupa%onal safety and health condi%ons

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The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Feasibility Study for Ship Dismantling

For UNEP, funded through a grant by the European Commission.

Feasibility study to iden5fy cost-­‐effec5ve alterna5ves to the tradi5onal beaching method Study approach • Components of environmentally sound management • Unit cost price • Compliant model facility • Baseline facili%es • Cost of upgrade to compliant model • Incremental implementa%on • Sensi%vity analysis

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Components of Environmentally Sound Management Documenta5on and iden5fica5on of hazardous materials Equipment for dismantling ac5vi5es

Yard facili5es

Quality assurance and procedures 9/4/2013

The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Components of Environmentally Sound Management Key components • Inventory of hazardous Materials (IHM) • Equipment to ensure prober handling of HMs • Occupa%onal safety and health related equipment, e.g. PPE, first aid..

• Heavy machinery e.g. cranes, mechanical movers, forklijs, etc.

• Impermeable surfaces and storage measures • Containment installa%ons and spill response equipment • Quality assurance schemes, e.g. ISO standard • Procedural measures, plans and training of personnel

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Descrip5on on Compliant Model Facility – Key Assump5ons • • • • • • • • • • •

Hong Kong Conven%on requirements are met 100,000 LDT capacity per year Heavy machinery and dismantling equipment OSH equipment and procedures Paved areas (50,000 m2) Impermeable floors (20,000 m2) Closed buildings (200 m2) Administra%on and domes%c buildings (900 m2) Managerial staff (12) Labourers: (117/434) Train the trainer courses and ini%al training of labourers

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Baseline Facili5es Baseline 1

• Exis%ng (non-­‐compliant) pier-­‐breaking facility

Baseline 2

• Exis%ng (non-­‐compliant) slipway facility

Baseline 3a

• Basic pier – no prior dismantling ac%vity

Baseline 3b

• Basic harbour area -­‐ no prior dismantling ac%vity

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Baseline Facility Assump5ons General assump5ons • Logis%cal infrastructure • Basic installa%ons: electricity, water, etc.

• Basic access roads to the yard area • Waste management facili%es • Disposal facili%es in the form of landfills

And A number of specific assump%ons, e.g: • Baseline 1 and 2: ugraded to highly mechanised facili%es • Baseline 3: are labour intensive and less mechanisa%on is needed

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Results – Upgrade cost Total cost 100,000 LDT ( million USD)

Total cost 50,000 LDT (million USD)

Total cost 25,000 LDT (million USD)

Exis5ng pier breaking (1)

9.5

3.9

1.9

Exis5ng slipway (2)

21.0

12.9

7.5

Basic pier (3a)

23.9

14.3

9.5

Basic harbor (3b)

24.9

14.8

9.7

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Results -­‐ Upgrade distribu5on Model 1 Pier breaking

Model 2 Slipway

Model 3a Basic pier

Model 3b Basic harbor area

Documenta5on and iden5fica5on

<1%

<1%

<1%

<1%

Equipment for dismantling ac5vi5es

38%

37%

41%

42%

Yard facili5es

59%

60%

51%

50%

Quality assurance and procedures

<1%

<1%

<1%

<1%

Train the trainer courses and training of labourers

3%

4%

9%

9%

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Incremental Implementa5on Schedule Short term – up to one year Minimal (cost) equipment

Medium term – one to three years Simple/low cost techniques and equipment

Long term – three to seven years Improved infrastructure and heavy machinery

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Incremental Implementa5on Schedule <1 year

1-­‐3 years

3-­‐7 years

Exis%ng pier (1)

16%

36%

48%

Exis%ng slipway (2)

9%

37%

54%

Basic pier/harbour (3a and 3b)

45%

31%

23%

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Sensi5vity Analysis Heavy machine equipment () • European marked price as used as basis • Used equipment (low boundary) • (up to -­‐17%)

Concrete • Mean prices used as basis • Low and high price as boundaries (based on Turkish & Asian prices) • (-­‐20% to +30%)

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The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Sensi5vity Analysis (100,000 LDT facility) 30

29

30 27

25

24

25 21

20 17

Millions (USD)

16

15

14 12 9

10 6

5

-­‐ Low

Baseline Model 1 -­‐ Pier breaking

High

Low

Baseline Model 2 -­‐ Slipway

High

Low

Baseline Model 3a -­‐ Basic pier

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High

Low

Baseline

High

Model 3b -­‐ Basic Harbour

The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Finish

Thank you!

Contact informa5on: Litehauz Aps Holte Sta%onsvej 14, 1. floor 2840 Holte Denmark Mob: +45 28192886 Mail: svo@litehauz.com Website: www.litehauz.com 9/4/2013

The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Poten5al loca5ons for upgrade to compliant model Decision-­‐making parameters for iden5fica5on of feasible loca5ons to upgrade to a compliant model facility:

• A history of ship import for scrapping • Enforced regula%ons on environmental pollu%on • Access to hazardous waste management facili%es • Strong domes%c demand for steel not readily available from other sources (plates and rebar) • A market for ship equipment and consumables • Low wages

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The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Poten5al loca5ons for upgrade to compliant model Baseline 1 -­‐ upgrade to compliant pier breaking (PB) facility • Pier breaking facili%es in India, China and poten%ally also in Dominican Republic and the Caribbean

Baseline 2 -­‐ upgrade to compliant slipway (SW) facility • E.g exis%ng slipways in Mumbai (India)

Baseline 3 -­‐ establishment of PB or SW facility from Basic pier/harbour area • Basically any port infrastructure or ship repair yard • Philippines, Indonesia, Vietnam, Thailand, Pakistan, Bangladesh and India.

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The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Top ten recycling na5ons -­‐ 2010

Scrapped amount [DWT]

Number of ships scrapped

Main recycling method applied

India

9,287,775

451

Beaching

Bangladesh

6,839,207

110

Beaching

China

5,769,227

189

Pier breaking

Pakistan

5,100,606

111

Beaching

Turkey

1,082,446

226

United States

217,980

15

Slipways Pier breaking /drydock

Romania

16,064

4

Pier breaking

Denmark

15,802

25

Japan

13,684

1

Pier breaking Pier breaking /drydock

Belgium

8,807

12

Pier breaking

(Intermodal Research, 2011) 9/4/2013

The Interna%onal Conference on Ship Recycling April 2013 -­‐ WMU

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Projected annual and accumulated scrap volumes 2010 – 2030 Global historic recycling volume 2000-­‐2009 and projected recycling 2010-­‐2030 in million Gross Tonnage

(World Bank, 2010)

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