Canada-based Sanexen creates valuable end markets for C&D fines through the development of a first-of-its-kind recovery plant.
An unavoidable byproduct generated during the recycling of construction and demolition (C&D) debris, C&D fines—or recovered screen materials—have created a persistent dilemma for recyclers looking to find end markets for the materials they produce.
While some applications have been identified in recent years, such as for use as alternative daily cover (ADC) at landfills, consistent markets for C&D fines have not yet been identified due to heavy contaminants found within the material.
Consisting of primarily soil, wood, concrete, gypsum and other miscellaneous material particles, fines have received increased scrutiny due to their association with hydrogen sulfide (H2S)—a colorless gas that generates toxic emissions, odors and a risk for fires even in low concentrations.
In addition to H2S, concerns over toxic compounds polycyclic aromatic hydrocarbons (PAHs) and polychlorinated biphenyls (PCBs) have left recyclers stumped on how to utilize fines in a safe and environmentally friendly way.
For Canada-based Sanexen Environmental Services Inc. (Sanexen), a member of the company Logistec, this challenge posed an opportunity to apply its experience in contaminated soil and residual material management to generate a valuable product from C&D fines.
The close to 40-year-old company has historically focused on environmental remediation projects, such as water rehabilitation, site remediation, regulated materials management, risk assessment and environmental compliance audits. Overall, Sanexen has treatment more than three billion gallons of heavy contaminated water and roughly 15 million tons of contaminated soil.
“Five years ago, we identified internally that there were upcoming issues of disposing C&D fines. So, our group started working on the research of this particular waste stream, identified the characteristics of the C&D fines, and made sure that we had proper analysis and that we understood the difference between regions that will generate the fines,” says Mathieu Germain, director of strategic development at Sanexen.
Given the growing percentage of C&D waste created each year, with an estimated 600 million tons generated in the U.S. in 2018, finding a way to develop new materials out of C&D fines in an economically feasible way was Sanexen’s first target.
“There’s millions of tons [of C&D fines] that are being generated in North America every year, so we evolved a solution over the last fived years to ensure that we would answer that particular need to have a large-scale solution that can be applied at an economic cost that would make sense for the operator,” says Germain.
This development transpired into the construction of the first C&D fines recovery plant of its kind in North America. Located in Montreal, Canada, the plant offers large scale processing of up to 150,000 metric tons per year, allowing for millions of tons of C&D debris to now be recycled rather than ending up in landfill.
At the facility, the reclamation process turns accepted debris into byproducts such as aggregate materials, wood residues and compost.
“Our process is a combination of mechanical sorting and biological treatment,” says Germain. “We took the knowledge that Sanexen has develop over almost 40 years now in order to ensure that we would be able to dedicate a solution that will treat the contaminants that are contained in C&D fines.”
According to Sanexen, the process begins with the coarser component of the C&D material residues being mechanically screened to obtain bituminous mix and aggregate materials for road applications. The lighter component of the stream is then directed towards added-value processing for biofuels and renewal chemicals.
As for the ultra-fine components of the C&D material residues, this is biologically treated into compost for mining sites, landfill cover materials and landscaping applications. This material can also be further transformed into additives for manufactured construction or products like foams, composites and plastics.
“The interesting part of our patent-pending solutions that we implemented is that we’re adding the flexibility of the components that enter the biological treatment in order to adapt it to the local market,” says Germain. “So, for instance, if you’re looking for compost that will be used in the northeast, we have a solution in place—namely the one that we have in Montreal—that’s able to fulfill needs throughout the year. So, whether its January or July, we’re able to answer the needs of the market.”
This model of reclaiming C&D fines presents a unique opportunity for creating end markets due to its ability to successfully remove contaminants, which can include metals and asphalt shingle residues.
“After removal of these contaminants, you remain with traces of PAHs—which can be found in asphalt shingles—and gypsum. Gypsum per se is not a contaminant, but if it goes to landfill it leads to all sorts of environmental issues because when it’s buried and interacts with water it generated H2S,” says Martin Bureau, vice president of innovation at Sanexen.
“So, what we did instead of trying to get rid of the gypsum one way or another, we decided to use bio treatments to transform it into nutrients because gypsum is essentially calcium sulfate. You need sulfur for soils, as well as calcium, so we’re transforming it and not getting rid of it, but actually taking advantage of it.”
Depending on where the C&D materials are sourced from, Bureau says bio treatment might be necessary for other contaminants varying by location.
“It depends on what ends up at the C&D facility,” he says. “On a case by case basis, sometimes we need to look at lead and arsenic as well.”
Although there have been several attempts to find value for C&D fines through screening methods over the years, Germain says Sanexen’s approach is unparalleled due to its ability to build upon the characteristics of each byproduct to give them a second life.
“Through this innovation, we’re able to generate revenues that are profitable for something that is the main issue about those residues—the gypsum. So, we’re taking advantage of the presence of gypsum to then create an added value product. If you don’t do that, and you just remove the aggregates and the wood, then you’re stuck with a very fine material and the process is not profitable. It’s actually a loss,” says Bureau.
The C&D fines recovery plant has been in operation since August of this year; however, Germain says Sanexen is already working on new versions of the plant.
“This is the first version of the plant that is fully operational and that has a given use and very cool benefits, but the next version of our plant for the manufacturing of new construction products out of these outputs that we’re creating right now is now a potential reality. It used to be just a thought, or a dream, but now that we have access to an input of material that we’re treating, we made a corporate choice that we can always improve what we’re doing,” he says.
“There’s really endless possibilities being offered now for the C&D world.”
The company also expects total revenue growth to range from 17 and 17.5 percent for the year.
Waste Management (WM), Houston, has announced its financial results for the third quarter of the year, which ended Sept. 30. Revenue grew for the quarter compared with the same time frame last year. The company achieved $4,665 million in revenue in the recently completed third quarter compared with $3,861 million in revenue in the third quarter of 2020.
The company says the results put it on track to meet its full-year financial targets despite accelerating cost inflation.
According to WM, revenue for its collection and disposal services increased $260 million, driven by $137 million in volume increases and $123 million of growth from yield. Acquisitions, net of divestitures, added $295 million of revenue primarily from the acquisition of Advanced Disposal in Ponte Vedra Beach, Florida. The company acquired Advanced Disposal in October 2020.
WM’s operating earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted on the same basis as total company operating EBITDA, was $1.4 billion, or 31.1 percent of revenue, for the third quarter of the year compared with $1.27 billion, or 33.1 percent of revenue, for the third quarter of 2020.
WM says operating EBITDA in its recycling line of business improved by $53 million compared with the third quarter of 2020. The improvement, the company says, was driven by an increase in market prices for recycled commodities and investments WM is making in improved technology and equipment at its material recovery facilities that are delivering a less labor-intensive operating cost model.
Its EBITDA in the renewable energy line of business improved by $22 million compared with the third quarter of 2020, primarily driven by increases in price.
“Strong organic growth and continued progress on the integration of the Advanced Disposal business powered our robust revenue growth in the third quarter and led to a more than 14 percent increase in adjusted operating EBITDA and a more than 15 percent increase in net cash provided by operating activities,” says Jim Fish, WM president and CEO. “Our solid results put us on track to meet our full-year financial targets despite accelerating cost inflation.”
Operating expenses were 62.3 percent of revenue in the third quarter of this year compared with 60.4 percent in the third quarter of 2020. On an adjusted basis, operating expenses were 62.2 percent of revenue in the third quarter of the year compared with 60.4 percent in the third quarter of 2020. WM says the increase in operating expense margin in the current quarter is due to an acceleration of labor and other inflationary cost pressures, as well as the impact of higher commodity prices for recyclables.
In the third quarter of this year, net cash provided by operating activities was $1.18 billion compared with $1.03 billion in the third quarter of 2020. The improvement in net cash provided by operating activities was primarily driven by the increase in operating EBITDA.
According to WM, total company revenue growth this year is expected to be between 17 percent and 17.5 percent. Combined internal revenue growth from yield and volume in the collection and disposal business is expected to be about 6.5 percent, driven by the company’s disciplined pricing programs and strong outlook for continued volume recovery. Adjusted operating EBITDA is expected to be between $5 billion and $5.1 billion this year. Free cash flow is projected to be between $2.5 billion and $2.6 billion this year.
“Our people are doing an outstanding job providing essential services to our customers and communities,” Fish says. “We’re proud to highlight many of the efforts that have helped us move the needle on our sustainability goals in our 2021 Sustainability Report released earlier this month.”
The company will offer the Haulmaxx EX as a part of the chassis enhancements for ACX and DC-64 models.
Hendrickson Truck Commercial Vehicle Systems, Woodridge, Illinois, announced Oct. 26 that it has partnered with Hagerstown, Indiana-based Autocar to offer the Haulmaxx EX as a part of the chassis enhancements for ACX and DC-64 models.
According to Hendrickson, Haulmaxx EX provides the versatility needed for trucks and tractors that operate both on- and off-highway. The suspension’s equalizing beam distributes the load equally between both axles in off-road and uneven terrain conditions. The design eliminates fixed center bushing pivot points to reduce wheel hop. When paired with Hendrickson Traax Rods, stability is enhanced and articulation increased for improved on- and off-highway operation.
“Customers today expect more out of their vocational suspensions. Haulmaxx EX exceeds expectations by expanding on the capabilities of the current Haulmaxx design. With up to a 70,000-pound site rating for the 46,000-pound capacity suspension, Haulmaxx EX is extremely rugged, supporting the most demanding vocational applications and offering capacities of 40,000 pounds, 46,000 pounds and now 52,000 pounds,” says Ashley Dudding, director of engineering for Hendrickson Truck Commercial Vehicle Systems. “Hendrickson utilized our industry-leading analysis and validation techniques to ensure Haulmaxx EX would meet these rigorous demands, minimize maintenance requirements, and deliver the lightest weight vocational suspension on the market.”
For CARDS Recycling President Dan Christensen, efficient transfer station management can drastically improve how a company or municipality handles its solid waste.
For Dan Christensen—a reputable figure in the waste and recycling space and founder of Springdale, Arkansas-based CARDS Recycling (CARDS)—efficient transfer station management can drastically improve how a company or municipality handles its solid waste.
Evidence of this can be seen firsthand with the evolution of CARDS, which has grown from exclusively specializing in the recycling and disposal of construction and demolition (C&D) waste to becoming a major provider of transfer station management and hauling services in the South Central region of the U.S.
“We founded the business in late 2017. When we first founded the company, we had a construction and demolition landfill and roll-off assets, and we specialized in the recycling and disposal of construction and demolition waste only,” says Christensen. “Since then, we’ve evolved and acquired a network of transfer stations to better manage our volumes of municipal solid waste.”
With close to 20 locations across Texas, Oklahoma, Missouri and Arkansas, some of which are managed for other waste entities, Christensen says CARDS has built a comprehensive service network for companies to outsource their transfer operation needs.
“I think there are certain focus areas for other firms that maybe consume the assets and capital available, and it makes a lot of sense sometimes to … operate them independently,” he says. “So, we feel we’re in the best position to manage this waste on a go-forward basis; we’ve gotten pretty good at understanding the driving factors of what makes these stations run efficiently, and [transfer station management is a] business we plan to continue to expand.
“We’ve constructed a number of transfer stations as well for our competitors, and we see this as something that could be a part of our business going forward. We built a couple of very nice facilities in the last few years, and some we constructed for other large waste haulers, so it’s a part of business that we’d like to continue to expand as we go forward.”
With Christensen’s considerable experience in the waste management sector, which includes positions such as president of Cortland, Illinois-based DC Trash and general manager for Phoenix, Arizona-based Republic Services, there are several key factors he’s learned to look out for when designing a transfer station.
“Efficiency is obviously the most important factor since you have to be able to manage the volumes within the marketplace,” Christensen says. “When we design them, we’re considering factors like how much throughput the transfer station expects to have and how quickly can you load the amount of waste that’s coming in, and that usually leads to the best designed station that allows for the most efficient operations.”
Other elements that can come into play are variances between waste streams and the ability to obtain necessary equipment.
“The balance between waste streams sometimes creates inconsistencies in load weights, for instance, with solid waste versus construction and demolition waste. You also have the same challenges that everybody has right now with obtaining equipment to grow the businesses,” Christensen says. “It seems as though some of these manufacturers are a year out [with their expected delivery times] in some cases, so having the ability to react quickly is often hindered by your ability to get equipment.”
While a well-planned facility can provide a solid base for streamlined transfer station operations, Christensen says having the proper equipment is crucial to maintaining productivity.
“At any given transfer station, you’re going to have trailers, semi-trucks and heavy equipment that’s used to load the waste,” he says. “For trailers specifically, having your trailer capacity spec’d to be consistent with the maximum allowable weights in each given state is the most important part. You also need to ensure that you hit those targeted weights without exceeding them.”
In order to ensure consistency across CARDS’ multiple sites throughout different states, the company has put an emphasis on following proper transportation management practices.
“We collect our own waste in a number of markets and then put it through our own transfer stations. From there, our own trucks transport it from the transfer station to the destination, which is in most cases, a landfill,” Christensen says. “So, the businesses are paralleled with one another, and we can control the volume from its generation all the way to its end destination.
“You have to control the volume that comes in in accordance with each individual permit, and those are specific to the sites in a lot of cases.”
According to Christensen, CARDS’ methodology for effectively operating its transfer stations also includes the use of technology to better visualize the company’s transportation and logistics services.
“We use some technology in our trucks to understand where our assets are and how they’re operating,” he says. “That also alerts us to any services that are needed or repairs and maintenance that needs to take place. It allows us to kind of ‘live dispatch’ the units in some cases and use them in the most efficient manner possible.”
Since CARDS first opened its doors four years ago, Christensen says the company has recognized an increasing value in offering comprehensive transfer station services.
“I think as landfill space becomes more limited across the county, the next best and most valuable asset that a waste company can have at its disposal is a transfer station,” he says. “It opens you up to be able to move the waste farther and have access to more landfills than you would have access to if you were having to direct haul the waste. We see that as a very important part of our waste collection business.”
Most recently, CARDS announced plans to develop a $5 million recycling transfer station in Springdale, Arkansas. The 40,000-square-foot facility will be used to offload household and construction waste, with most of the material being pulled for recycling.
Christensen says that the recyclable material will be stored until sold, and other waste will be removed for disposal at various landfills.
“We acquired the 12-acre site about a year ago, and our plans are to put a very large transfer station there with the ability to handle up to 1,250 tons a day of waste,” Christensen says. “Directly adjacent to the [transfer station] is a recycling center that will have the ability to manage up to 500 tons per day of recyclables from multiple streams, including industrial, residential, commercial and C&D waste that we hope to recycle and prevent from ending up in a landfill.”
Construction of the facility is anticipated to begin in mid-October, according to Christensen, and the facility will most likely be online around the same time in 2022.
“I think [the Springdale] facility will be transformational,” he says. “There’s only one landfill within the surrounding seven or eight counties. And so, that makes the transfer station a viable option. We [already] own and operate four transfer stations in this market; so, it’s going to give us the ability to transfer waste and even offer some zero-waste solutions to our customers by utilizing some incinerators that are in close proximity.
As CARDS has expanded its footprint through acquisitions and the development of new facilities, Christensen says steady growth has been the key to creating a successful company.
“I think for our business, we’ve proven that growth is a big part of our strategy. But it’s been responsible growth and execution along the way that has been very important,” he says. “We’re looking forward to the next six or eight months; we’ve got some scheduled acquisitions and some new contracts that will be starting in this space. The company has become much larger than it originally was, with 225 employees today, but we expect that number to be closer to 300 by the end of the year. So, we’re very excited about the opportunities we have before us.”
This article originally appeared in the October issue of Waste Today. The author is the assistant editor of Waste Today and can be reached at hrischar@gie.net.
The world’s energy portfolio shift is leading to opportunities, and a competitive landscape, for specialty demolition contractors.
The demolition industry in the United States has become increasingly familiar with the opportunities connected to the decommissioning of coal-fired power plants over the past two decades.
Whether relating to large power plants or smaller boilers, most demo contractors across the country have likely bid on, or considered bidding on, power plant work in recent years thanks to the revenue these substantial projects can generate.
While coal may be the first energy source to become a casualty of a lower emissions future, oil refineries, wells and drilling platforms are also slowly getting phased out. And while nuclear power doesn’t come with the same emissions concerns, that sector’s older assets are reaching the end of their useful lives in considerable numbers.
Nuclear energy has long had as many detractors as advocates, and in the coming decade, it seems likely there will be more decommissioning than startup activity in the sector.
Because of its proximity to New York City, one of the higher-profile nuclear plant decommissioning projects is underway at the Indian Point nuclear power facility in Buchanan, New York.
For that project to move forward, regulatory health and safety hurdles had to be cleared at both the federal and state levels.
The radiological cleanup and dismantling of a nuclear facility “is extremely demanding, both technically and financially,” stated a press release issued by the New York attorney general’s office in April of this year, as some of those hurdles were being addressed.
The New York State Public Service Commission was part of an oversight and negotiation process that also included the state of New York; environmental organizations; Entergy, the utility that owns Indian Point; and Camden, New Jersey-based Holtec International, the lead contractor.
For the contractor and any subcontractors involved, some $2.4 billion of aggregated decommissioning trust funds have been accrued to be spent on the project.
Such work is unlikely to slow down, according to a 2020 study by India-based The Insight Partners available on ResearchAndMarkets.com.
The nuclear decommissioning services market was valued at slightly more than $5.8 billion in 2019 and is projected to reach more than $9.4 billion by 2027, growing in billings by 6.3 percent annually during that stretch.
“As large numbers of nuclear power plants are nearing the end of the operational timeline, the operators and the governments are planning to decommission the facilities, which is driving the growth of nuclear decommissioning services market,” the authors of the The Insight Partners report write. “In the recent scenario, the decommissioning of nuclear facilities is outpacing the construction of newer facilities across the major regions around the globe.”
As governments and companies around the world attempt to lower their greenhouse gas emissions or “decarbonize,” the pace of decommissioning and demolition activity may be even more hectic on the fossil fuel front. Some demo firms are already poised to be part of that activity while others are making moves to get more involved.
This June, United Kingdom-based engineering consultancy RVA Group launched a new service designed to manage processes at “[a] number of industrial and process site closures globally.” RVA says the number of decommissioning opportunities in the global chemical, petrochemical, pharmaceutical, power, energy, oil, gas and heavy manufacturing industries “continues to rise.”
The sector is not new to RVA, with the firm saying it has “successfully delivered more than 850 decommissioning, decontamination, demolition and dismantling (DDDD) projects all over the world,” However, RVA Group says it had “identified a gap in the market when it comes to one of the earliest phases of preparing a site to be mothballed or removed.”
Asset owners commonly use internal resources to handle initial decommissioning work, but RVA says a “principal designer” should be involved to ensure the process is rigorously planned from the outset.
While the property owner can assume the role of principal contractor, “an experienced team with a decommissioning mindset should be charged with supporting or writing the decommissioning plan itself, as well as documenting the detailed processes to follow, and auditing works throughout,” according to RVA Group Managing Director Richard Vann.
“Nobody knows an asset or site better than the operator who has run it for several years,” says Vann. “So, when the owner calls ‘time’ on its operational life, it would be unwise to overlook the depth and value of process- and plant-specific knowledge that such individuals could bring to the table during a decommissioning project.”
He adds, “However, despite decommissioning often being considered an extension of site maintenance, it represents a specific engineering discipline that requires a distinct mindset. DDDD presents a number of opportunities that will not only make the process cost-effective, but also, in many instances, remove hazards and enable increased environmental, health and safety standards to be implemented.”
Regarding the financial argument for earlier involvement from decommissioning specialists, Vann remarks, “Sometimes operators go to such extremes that they undertake processes they don’t actually need to, as they could be handled more efficiently, and ultimately safely, during the dismantling phase.”
In the U.S., Louisiana-based Modern American Recycling Services Inc. (MARS) has spent more than 50 years providing demolition and recycling services to customers seeking oil rig decommissioning and dismantling, and large-scale recycling “of all types of vessels,” according to the company.
The firm had found steady work during the oil industry’s boom years and is poised to provide its services at sites that may wind down prematurely if the planet’s petroleum needs stabilize and recede in a potential decarbonization era.
The company has been recognized by Inc. magazine in five different years since 2009 as one of the fastest-growing privately held companies, “all while maintaining a safe working environment for our people,” says founder and owner Dwight “Butch” Caton Sr.
During its five decades in business, MARS says it has recycled nearly 10 million tons of offshore oil and gas structures and salvaged more than 10,000 barges, plus “hundreds of ships of various sizes.”
With the world’s wealthiest equity funds and largest corporations increasingly focused on investing in new energy sources while shifting away from others, specialty demolition contractors with pertinent experience seem poised to face a stable of opportunities that they can capitalize on.
This article originally appears in the Sept./Oct. issue of Construction & Demolition Recycling magazine. The author is a senior editor with the Recycling Today Media Group, who can be contacted at btaylor@gie.net.