Recycling of Electric and Electronic Endoflife Devices

1
Recycling of Electric and Electronic End-of-life
Devices
Economical Assessment Study in Brussels
Thomas LEGLISE
ISEE 2000, San Francisco Tuesday May 9th
2
What will we talk about?

• Introduction
• Legal Aspects of Recycling in Europe
• Recycling Options
• Economic Evaluation for Brussels
• Conclusions

3
What will we talk about?

• Introduction
• Legal Aspects of Recycling in Europe
• Recycling Options
• Economic Evaluation for Brussels
• Conclusions

4
Problem Statement
5
Brussels situation

• Brussels is the capital of Belgium
• Brussels is a mid-European city with 1 million
  habitants

17,000 tons of electrical wastes each year
6
Project Framework
To determine the possibilities of establishing a
recycling facility in Brussels.

• Legal aspects of the problem
• No effective legislation yet, but...
• Necessary steps in the recycling process
• Study of similar projects in Europe
• Promising ones in Brussels
• Criteria are new activities, employment of low
  qualified workers and economic evaluation

7
What will we talk about?

• Introduction
• Legal Aspects of Recycling in Europe
• Recycling Options
• Economic Evaluation for Brussels
• Conclusions

8
European Commission - DG XI Works

• 6 to 7 millions tons of wastes each year
• Directive proposal features
• Producers responsibility
• The financing of all the recycling operations
  will be supported by the producers
• Take-Back Obligation
• The producers have to guarantee several options
  for the consumer to dispose of his devices,
  free-of-charge
• Recycling quotas

9
EC members are already working

• Germany and The Netherlands were the first
  members to impose a specific legislation
• Switzerland (not an EC member) also introduced
  the producers responsibility
• Development of several recycling facilities
• Rapid growing market
• Setting up of financing systems for the recycling
  through producers associations

10
In Belgium..

• Flanders was the first region to introduce a
  legislation in 1999
• No organized collection system
• No existing facilities for the recycling
• No agreement with the producers
• Nothing changed!!
• A national committee was created in 1999
• Recommendation of a unified politic in the 3
  regions (to agree with the EC)
• Producers responsibility, governmental support
  for facilities creations

11
What will we talk about?

• Introduction
• Legal Aspects of Recycling in Europe
• Recycling Options
• Economic Evaluation for Brussels
• Conclusions

12
What to do with end-of-life devices?

• The products must first be collected
• the coexistence of several possibilities is the
  key point
• Collections at home, at the enterprise, at sale
  stores
• Once they have been collected, we can distinguish
  three possibilities
• Reconditioning
• Disassembly for part reuse
• Material recycling

13
Parts or product reuse

• Products Refurbishment
• Highest added-value conserved
• PCs, Washing Machines,...
• Component Valorization
• Lower added-value
• Closed-Loop reuse, in the same application
• Compressors (White Goods)
• ICs and Micro Chips for specific applications
• Low-End application (Micro Chips in toys)
• Limited market (producers agreement)
• Qualified workers, high working time

14
Recycling for materials

• Material Valorization
• no added-value
• break up the devices into several fractions
• Close-Loop recycling for material reuse in the
  same application
• Open-loop Low application reuse
• Need for dismantling or disassembly facilities
  (low qualified workers)
• Economic trade-off between dismantling costs and
  material revenue

15
Recycling facilities in Europe

• Large Industrial companies
• Large volumes (40,000 tons per year)
• heavy dismantling process (shredders)
• productivity 200 tons/employee and year
• Fully manual workshops
• Low volumes (1,000 tons per year)
• fine manual disassembly
• productivity 15 tons/employee and year
• Small industrial facilities
• flexible volumes (1,000 to 10,000 tons)
• productivity 200 tons/employee and year

16
One promising option for Brussels

• Our choice is based on
• finding a correctly sized facility for Brussels
• a flexible solution for an uncertain context
• the possibility of low qualified employment
• a possible economic trade-off
• Small industrial dismantling facilities,
• flexible (capacity)
• expandable (working people)
• entrusting low qualified workers with dismantling
  operations

17
What will we talk about?

• Introduction
• Legal Aspects of Recycling in Europe
• Recycling Options
• Economic Evaluation for Brussels
• Conclusions

18
Economic Simulation Package

• Calculation sheet for estimating the annual
  budget of a recycling facility
• Based on the evaluation of
• Investments and annual overhead costs
• revenue from the activity
• parameters to adjust several possibilities

19
Material flows

• The input of the facility would be collected
  devices

The first adjustable parameter is the collection
ratio 100 of the layer in Brussels could not be
treated by this facility Typical values from 20
to 40

• The output would be several fractions to sold as
  raw material

The second adjustable parameter is the resell
price for the fractions
20
Employment

• Human needs were established through lab tests
  (working times)
• Depending on the quantity of products
• collection ratio of 40 (7,600 tons of products)
  75 employees
• about 100 tons/year and person.
• A third adjustable parameter is the subsidization
  of salaries
• depends on the employment of low qualified
  workers from 20 to 50 of the salaries costs

21
Annual overhead costs

• The estimated annual overhead costs vary from
  1,300,000 to 2,000,000

22
Investments and revenues

• Investments are essentially needed for
  infrastructure and building
• they were estimated to 100,000
• Basically the only revenue of the facility would
  be the reselling of the fractions
• depends on the material market, quantities
  involved and batches composition

23
Annual budget results

• Every simulated cases showed a deficit,
• Boundaries
• 1,000,000 for 3,600 tons and 40 employees each
  year
• 2,000,000 for 7,600 tons and 75 employees each
  year
• It is thus necessary to have a specific financing
  for this recycling facility

24
Recycling fees

• Annual deficit divided among products, on the
  basis of human needs by product
• From 5 to 15 of the selling prize
• Within the same range as landfill costs or
  incineration costs

25
What will we talk about?

• Introduction
• Legal Aspects of Recycling in Europe
• Recycling Options
• Economic Evaluation for Brussels
• Conclusions

26
Conclusions

• Evolving legal context
• producers responsibility could create a dynamic
  market
• Collection is the key point to create work
• Flexible solutions are needed
• react to the supposed growing market
• Economic viability is not insured
• a specific financing must be installed
• The costs could be limited if the facility is
  suited for the needs of the city
• small industrial dismantling facilities are a
  promising options for mid-European cities