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In 2009 the municipalities and First
Nation communities on Vancouver's North Shore commissioned a study through Metro Vancouver,
to assess how resource recovery could be implemented.
Completed in March 2011, "Integrated Resource Recovery: Metro
Vancouver North Shore Communities" uses Sequel's IRM approach
to optimising resource management, with six main Scenarios, 1,800 cash flows and over 9,000 engineering variables:
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The analysis evaluated the ability to
recover a wide range of resources over 50 years, in 2010 dollars:
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The business case included the full
costs of construction, finance, operations, maintenance and capital
replacement;
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The recommended Scenario comprises
centralised treatment of liquid and solid organic wastes;
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Moving to 90% diversion of solid organic
wastes is recommended (exceeding the Base Planning Case and policy of 70%,
due to improved viability & GHG reduction);
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The proposed system plant comprises anaerobic digesters,
gasifiers, heat pumps & exchangers and associated scrubbers, filters
etc.;
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A 58km District Water and Energy
System (or "DEWS") will distribute recycled water and energy;
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Sequenced combinations of plant and
resource distribution to optimise energy and value (see
diagram).
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The recommended Scenario is
projected to reduce the overall
net cost to the taxpayer:
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Expected to be capable
of generating new revenues for the community and reducing or
limiting existing taxes - over $3bn in new revenues over 50 years;
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Net of all costs, the preferred
Scenario is projected to total $800m better than the Planning Base
Case;
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Compared to sewage treatment alone -
the previous policy for the Region - the preferred Scenario is
projected to total +/-$1.14bn better for taxpayers;
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Equated as an estimated "cost per residence"
the preferred Scenario would require
an average of $41/home short term support. Prior reported
estimates have been considerably higher;
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This initial taxpayer support would be repaid through reducing
and eliminating
taxpayer support once viability is achieved, allowing taxes to be
diverted to other needs;
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Initial contracts of 280+ buildings
would be retrofitted at no cost to owners, to allow the heat and
other resources to be used;
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Heat for connected buildings is priced
at 25% below current comparable installations, thus making
connection attractive;
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Tipping fees planned to be reduced by
40%, with long term potential for reductions in costs, with
community energy priced below inflation;
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Some phasing has been included but
more work on this is recommended, to
further reduce or potentially eliminate taxpayer funding.
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Significant recovered resources (for
full resource statistics see Executive
Summary Tables 3 and 4):
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The recommended Scenario is projected to reduce
community GHGs by approximately 25% below 2007 levels (i.e. roughly five times Kyoto
Protocol's 5.2% target);
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NOx (nitrogen oxides) are projected to be reduced by an
estimated 83%;
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Initially, 10% of water will be
recycled, but with infrastructure built to considerably exceed this
as opportunity permits, through adaptation;
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Carefully deployed, the potential
exists for further ecosystem and
habitat restoration (creeks, streams, wetlands etc.).
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Further work to optimise the
analysis to reduce risk and costs, improve phasing and finance
options is recommended. The noted main challenges include:
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Increase in initial construction costs (roughly
double the cost), but revenues more than offset the increased cost;
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Maximising waste diversion and
recycling will require community support. Impacts will largely
be one extra recycling box;
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Current approaches to waste
handling and ongoing projects could erode the
advantages of a comprehensive IRM approach, thus increasing
taxes, unless controlled;
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Traditional engineering approaches,
structure and models require to be reconsidered if taxpayer value is
to be optimised.
The study considerably exceeded the
original planned Concept Level scope, to help provide an extra level
of information and comfort with the conclusions and recommendations. The model was exposed to
extensive technical review
throughout the 18-month duration. In late January 2011 over 60 technical
reviewers attended a workshop, including executives from all
three municipalities. The meeting concluded that it should be
pursued and those steps are under way, including main stakeholder
review, approvals, engagement and communications.
The recommended direction represents a
significant potential improvement for a community of 175,000 (2006
census), although changes and commitment will be needed if the benefits
and considerable taxpayer savings are to be
achieved. Perhaps the most significant challenge is that current
government structures, plans, policies, governance models, skills, training, education and
responsibilities are not aligned.
To assist understanding
IRM, Sequel
made a short video
(mp4 format) of
experiences in Gothenburg, Sweden, which contributed to Sequel's IRM
development and conversion. Links to the video
are also embedded in the
Briefing and Executive
Summary documents, and the video is available in
wmv large format
and small format.
IRM is considered consistent with the
World Bank's Eco2 strategy
and the business case used to direct the assessment is a modified
version of an international valuation standard, thus consistent with transparency.
Available documents and material:
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Briefing note. This
two-page document bullets the main findings but contains little
commentary on how these were concluded or the related
recommendations;
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Executive Summary.
A 15-page document summarising the key elements and main
tables, with summarised recommendations, finding and
salient explanations;
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Report. The
84-page main study report;
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Technical Appendix.
The 303-page technical background and ancillary supportive
explanation to the main study;
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Metro
Vancouver presentation at
Gaining Ground 2009, initiating
the study and the 13 April 2011
Waste Management Committee presentation of the findings.
For more information
contact Sequel. |
