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Sterecycle Process Information

1. Introduction

Sterecycle Limited is a provider of clean recycling technology for Municipal Solid Waste
(MSW), and similar non-hazardous commercial and industrial wastes, based on a novel and
patented steam conditioning process (autoclave). Sterecycle has purchased all of the UK and
most European patent rights on an exclusive basis from the US patent holder. Sterecycle
have also applied for and secured several additional patents on the technology as a result of
intellectual property gained since the commencement of operations in the UK. This
technology provides a unique solution to the treatment of MSW by allowing the recovery of up
to 80% of residual waste via recycling and reuse of clean and safe products.

Sterecycle has constructed a commercial scale plant (initially to accept 100,000tpa but with
planning permission to expand to 200,000tpa) in Rotherham, South Yorkshire, which has
been operating successfully since June 2008. The company has also recently secured
planning permission from Cardiff Council for the development of a 200,000tpa waste
autoclave treatment facility with biomass combined heat and power for on-site fibre treatment
and is actively seeking to develop further plants throughout the UK.

2. Technology

The Sterecycle Autoclave Technology has been developed in the USA and now the UK, over
the last 10 years. There are currently two plants in existence in the US which have provided
considerable experience of the technology and plant maturity, as well as the necessary plant
operating experience for the process. The Rotherham plant has now been in successful
operation for over 24 months and is treating MSW under contracts with Rotherham, Barnsley
and Doncaster MBCs.

The technology has been refined through operation in the United States and subject to
extensive technical due diligence in the UK prior to installation at Sterecycle Rotherham.
Sterecycle’s own engineering team have further enhanced the technology to improve
operating efficiencies and performance, creating considerable operational experience which
will be crucial for the development of future Sterecycle autoclaving facilities and associated
post autoclave treatment. Through the continuous operation of the Rotherham plant,
Sterecycle have applied for and secured a number of patents related to the autoclave design
and process including the anaerobic digestion of the biodegradable element of the processed
waste.

3. Process
The Sterecycle process produces two primary products from municipal and commercial
wastes:

• A biomass product, Sterefibre®, which, because of the non-intrusive nature of the


treatment process, is a high quality, biomass rich material that can be used as a
carbon-neutral, low-contaminant fuel; a feedstock for anaerobic digestion; or as a
high quality soil conditioner. Between 55% and 65% of the input waste recovered
as Sterefibre®, depending on the input waste composition.

• Clean, sterile recyclates in the form of glass, plastics, ferrous and non ferrous
metals and inert materials (for processing through existing, established markets).
Approximately 15% of the input waste is recovered as recyclable material
depending on the input composition.

This is achieved through the use of steam treatment in pressurised autoclaving vessels. A
brief process description is as follows:

Confidential 1 September 2010


Sterecycle Process Information

• Autoclave Loading

The incoming ‘black bag’ residual wastes elevated inclined position of the autoclave
are delivered and tipped in the Waste during loading.
Reception Hall. The waste is then loaded
into a batch weighing hopper by
mechanical grab/loading shovel. Any large
items or materials unsuitable for the
autoclave process will be removed by the
mechanical plant. No shredding is required
and this minimises the release of heavy
metals from batteries etc, which are
recovered intact in the process. The waste
is significantly compacted in the
autoclaves due to the combined effects of
wetting agent, autoclave rotation and the

Figure 1: Inside Sterecycle Rotherham. Note


inclined position of autoclave vessel for waste
loading.

• The Autoclave Stage

After the completion of waste charging, the autoclave rotation is stopped and the door is
closed, rotation is then re-started and the autoclave is lowered to a horizontal position for
processing. The autoclaves are rotated at all times during processing and together with the
internal design of the vessel, this helps to both agitate and prevent agglomeration of the
waste and assists the pulping action of the process.

Pressure/temperature control within the autoclave is accomplished readily and accurately via
a combination of steam injection and heat transfer from a thermal fluid filled external jacket.
o o
Typically the Sterecycle process is conducted at 130 to 140 C which requires a relatively low
pressure of 2-3 barg within the autoclave and thereby mitigating significantly the potential
hazards (e.g. plastics melting) of alternative processes with the use of higher temperatures
and pressures. This internal steam atmosphere changes the heterogeneous nature of the
waste materials, sterilises them and converts the bio-degradable waste (e.g. food, paper, card
and other cellulosic material), into a homogeneous biomass fibre, which is marketed as
Sterefibre®.

As well as producing Sterefibre®, the autoclave process acts as a ‘steam-sterilisation’


process, producing cleaned materials that are separated through a series of mechanical
processing operations into recyclable fractions.

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Sterecycle Process Information

Figure 2: Inside an Autoclave Vessel prior to processing (Sterecycle Rotherham)

• Materials Separation

After processing and discharge the materials are conveyed into the waste separation hall to
separate the fibre, clean autoclave treated products (recyclables) and residues. This is
undertaken using standard Materials Recovery Facility (MRF) equipment to sort the
recovered fibre, recyclables and remaining reject fraction.

4. Outputs

The Sterecycle process will typically produce the following outputs following the processing of
the residual wastes:

Material Percentage Products to Market


Recovered1
Biomass (Sterefibre®) 55-65% Sterefibre® to on site renewable power as biomass fuel
or soil conditioner markets
Recyclables 15% Recovered materials (plastics, metals, glass, inerts,
wood and WEEE) to established recyclables markets.
Residues 20-30% Residue to energy recovery or landfill.
1
Dependant upon input composition

The main output is Sterefibre®, which is produced largely from the biodegradable wastes,
such as food, paper and card. Sterefibre® is a biomass rich product, which has a number of
end use applications, through which the company is able to guarantee the achievement of
landfill diversion targets. Possible applications include:

• Green Energy Recovery

The fibre is an excellent source of biomass derived energy, being consistent, homogenous
and easy to handle and transport. It can be used in an on-site Biomass Combined Heat and
Power plant (as planned for Sterecycle’s second plant in Cardiff) or can be supplied to 3rd
party biomass power plants.

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Sterecycle Process Information

• Anaerobic Digestion

Sterefibre® is an excellent feedstock for anaerobic digestion, being homogenous and capable
of generating an exceptional biogas yield. This is attributed to the fact that the fibres within
the organic materials are partly broken down during the autoclaving stage, improving
digestibility. The biogas produced from the process can be used to generate renewable
electricity in gas engines which is eligible for 2 ROCs. It can also be upgraded for direct
injection into the gas grid or used as a transport fuel.

• Land Restoration

Sterefibre® can be used in a wide range of


land applications being a valuable source of
organic matter with high levels of nutrients.
The PAS 100 equivalent material contains the
required properties to demonstrate
“environmental benefit and ecological
improvement” through its application.
Sterecycle is highly experienced in the
marketing of Sterefibre® and has received
considerable interest from a Yorkshire farming
co-operative, who are keen to apply the fibre
from the Rotherham facility as an inorganic
fertiliser replacement.

Figure 3: Sterefibre® from the Rotherham


facility
• Other Markets

The technology was developed in the US as a means to recover fibre and pulp for card and
board manufacture. This market does have potential but at this stage is unable to “guarantee”
an outlet for fibre in all locations of the UK.

5. Benefits

The Sterecycle waste treatment technology has a number of benefits over other waste
treatment options. It is a highly deliverable solution and Sterecycle has demonstrated the low
planning risk associated with autoclaving, relative to other waste treatment technologies. The
company has secured two planning consents within the last year with minimal local
opposition. Permission from Rotherham Council was given in January 2009 to double
treatment capacity to 200,000 tonnes per annum at the company’s facility, while Cardiff
Council awarded permission for the development of a 200,000 tonne per annum autoclaving
facility with an integrated biomass combined heat and power for on-site fibre treatment.
Sterecycle believe the planning success is largely due to the fact that the technology is
primarily one which recycles waste, using steam treatment to recover valuable materials for
onward processing, and therefore avoids the mass burn incineration of waste and its
associated perceived environmental impacts.

Another significant advantage of the technology is its ability to recover recyclable materials
that have not been collected through separate kerbside services. The autoclaving process
cleans and sterilises the inorganic materials, making them easier to sort. Using advanced
and sophisticated material separation technologies, Sterecycle are able to recover plastics,
metals, glass, wood, and aggregates, therefore complementing the existing recycling services
being carried out by the Council. Sterecycle is keen to stress that it does not believe its
technology is a substitute for separate recycling collections, instead recovering materials and

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Sterecycle Process Information

helping local authorities meet and exceed their challenging recycling targets. The technology
is particularly suitable for the recovery of materials that have poor recovery rates at the
kerbside such as food wastes and plastics.

The range of applications in which the Sterefibre® output can be used, generates
considerable opportunities for the technology. At the present time, Sterecycle is using land
recycling outlets for the fibre and given its high quality, is working with its advisor, ADAS and
the Environment Agency towards its application on agricultural land. The energy recovery
options available, including anaerobic digestion and combined heat and power have the
ability to make the Sterecycle process completely self-sufficient, with additional heat and
power to be exported to 3rd parties. Not only does this divert biodegradable wastes from
landfill, therefore reducing methane emissions, but it reduces the use of fossil fuels, and when
the additional recycling is included, creates considerable environmental benefits.

6. Risks

The main risk associated with the Sterecycle autoclaving technology is the establishment of
secure markets for the outputs from the process. Towards the end of 2008, Sterecycle was
unable to find any markets for the plastics recovered from the Rotherham facility, due to the
global crash in recycling markets. While the markets have improved in the last few months,
risks remain. Sterecycle is therefore mitigating this risk by installing a plastics chipping and
washing plant at Rotherham, and subsequent facilities, to create a high quality product and
already have in place contracts for the supply of the material to local reprocessors,
guaranteeing diversion from landfill. Market risks are also associated with the Sterefibre®.
However Sterecycle believe these to be low given the high quality nature of the material and
the company’s considerable experience in diverting this material into land recycling
applications. To eliminate this risk completely, Sterecycle is seeking the integration of a
biomass combined heat and power plant with the autoclaving process. The precise treatment
option for the Sterefibre® is determined on local market conditions and whether it is being
developed on a merchant or contract backed facility.

There are planning risks associated with any waste management facility, particularly one that
is treating residual wastes. However Sterecycle’s own experience of the planning process
has been unproblematic. This is mainly due to the high standard of environmental controls
incorporated into the plants, the use of clean steam treatment and the considerable benefits
that the autoclave solution delivers.

7. Summary

Sterecycle has pioneered the use of an innovative new waste treatment technology that
guarantees high levels of landfill diversion and additional recycling. The company has
developed and is operating the world’s first waste autoclave waste treatment facility that is
processing residual municipal wastes on a commercial scale. Sterecycle has refined its
autoclave process by means of its philosophy of continuous improvement and these lessons
are being incorporated into future developments.

The technology is one which is now established, proven and robust, delivering considerable
benefits over other waste treatment methods particularly in terms of public acceptability and
ease of planning. While guaranteeing diversion of biodegradable wastes from landfill through
®
the use of the Sterefibre , the process can also increase recycling rates, complementing
existing kerbside services. With a track record of planning success and minimal risks,
Sterecycle has an exciting pipeline of projects and is keen to work in partnership with local
authorities or their contractors throughout the UK, helping them to achieve their targets in a
cost effective and environmentally beneficial way.

Confidential 5 September 2010

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