Market Report
WASTE MANAGEMENT IN POLAND
OFFICIAL PROGRAM
P
WASTE MANAGEMENT AND WASTE WATER MANAGEMENT IN POLAND This study lays out the current situation of waste management and waste water management market in Poland. The aim of the study is to analyze what challenges and opportunities Swiss investors face in the waste management and waste water management market in Poland and what solutions can be implemented to improve their position in Polish market. Language: English Number of pages: 43 Author: Swiss Business Hub, APAX Consulting Group Other architectural Reports: Are you interested in other architectural Reports for other sectors and countries? Please find more Reports here: www.s-ge.com/reports
DISCLAIMER The information in this report were gathered and researched from sources believed to be reliable and are written in good faith. S-GE and its network partners cannot be held liable for data, which might not be complete, accurate or up-to-date; nor for data which are from internet pages/sources on which S-GE or its network partners do not have any influence. The information in this report does not have a legal or juridical character, unless specifically noted.
Contents
1. EXECUTIVE SUMMARY _______________________5
4. ANALYSIS OF THE SECTOR – WASTE WATER MANAGEMENT _______________________________ 27
2. POLAND AND ITS KEY ECONOMIC INDICATORS _6
4.1. policy and regulation within the waste water
2.1. Poland – economic structure and economic performance6
management industry ________________________ 27
2.2. Key economic indicators _____________________ 6
4.1.1. EU legal regulations ______________________ 27
3.
ANALYSIS
OF
THE
WASTE
MANAGEMENT
SECTOR _____________________________________8 3.1. Policy and regulation within the waste management industry 8 3.1.1. EU legal regulations _______________________ 8 3.1.2. State legal regulations _____________________ 8 3.1.3. Goals and limitations within the waste management industry 10 3.2. Current situation and future outlook for the waste management market __________________________ 11 3.2.1. The waste management market in Poland ________ 11 3.2.2. Outlook for potential changes within the waste management industry ________________________ 15 3.2.3. Key issues within the waste management market __ 21 3.3. Competition analysis ______________________ 21 3.3.1. Key drivers for competitive advantage in the Polish market 24 3.3.2. Market fragmentation and its key players _______ 24 3.4. Potential investment and cooperation opportunities within the industry __________________________ 25 3.4.1. Public sector ___________________________ 25 3.4.2. Private sector __________________________ 26
4.1.2. State legal regulations ____________________ 28 4.1.3. Goals and limitations within waste water management28 4.2. Current situation and future outlook for the waste water management market __________________________ 30 4.2.1. The waste water management market in Poland ___ 30 4.2.2. Outlook for potential changes within the waste water management industry ________________________ 32 4.2.3. Key issues within the waste water management market34 4.3. competition analysis ______________________ 36 4.3.1. Key drivers for competitive advantage on the Polish market 37 4.3.2. Market fragmentation and its key players _______ 38 4.4. Potential investment and cooperation opportunities within the industry __________________________ 38 4.4.1. Public sector ___________________________ 39 4.4.2. Private sector __________________________ 39
5. SUMMARY AND KEY TAKEAWAYS ____________ 41
List of figures
Fig. 1. The annual level of recovery and recycling required under the Act on packaging and packaging waste. ............................. 9 Fig. 2. Total waste generated in 2005-2011 in Poland. ...................................................................................................................... 11 Fig. 3. Municipal waste management in the European Union in 2010. ........................................................................................... 12 Fig. 4. Municipal waste treatment in the years 2007-2011. .............................................................................................................. 12 Fig. 5. Types and number of municipal waste treatment installations in Poland as on 31 December 2009................................... 13 Fig. 6. Municipal waste generated and collected in 2011 by districts. ............................................................................................. 14 Fig. 7. Composition of selectively collected waste in Poland in 2011. ............................................................................................... 14 Fig. 8. Recycling levels of individual packaging waste streams in Poland 2009 [%]. ...................................................................... 16 Fig. 9. Cement and clinker production in Poland in 2010-2014 [in thousand tons]........................................................................ 17 Fig. 10. Selected planned thermal waste treatment plants in Poland. ..............................................................................................18 Fig. 11. Planned pyrolysis plants in Poland. ....................................................................................................................................... 19 Fig. 12. List of companies in wood and poultry industry in Poland having waste gasification plants in 2011. ............................... 19 Fig. 13. Comparison and general attractiveness of waste-to-energy chain. ..................................................................................... 20 Fig. 14. Division of Poland’s waste management market and its key players. ................................................................................. 22 Fig. 15. Location of plants of major waste management market players in Poland, in 2013. ......................................................... 22 Fig. 16. The most densely populated region by major international companies in waste management sector. ............................ 23 Fig. 17. Market fragmentation and its key players ............................................................................................................................ 24 Fig. 18. Deadlines and goals for reduction of biodegradable pollution. .......................................................................................... 29 Fig. 19. National Programs and general information ....................................................................................................................... 29 Fig. 20. Industrial and municipal wastewater requiring treatment discharged into waters/ground in 2011 ................................ 30 Fig. 21. Cities with high threat of industrial and municipal wastewater in 2011 (top 10). ............................................................... 31 Fig. 22. List of equipment (best prospects within the sector) .......................................................................................................... 32 Fig. 23. Production of sewage sludge depending on type (in thousands tons of dry residue) ........................................................ 33 Fig. 24. Cities (breakdown by population) ........................................................................................................................................ 35 Fig. 25. Businesses operating within sewage disposal and treatment ............................................................................................ 36 Fig. 26. Selected Companies within wastewater industry (per segment) ........................................................................................ 36 Fig. 27. Number of antitrust decisions (2005-2011) ..........................................................................................................................37 Fig. 28. Market fragmentation and its key players ........................................................................................................................... 38
1. Executive Summary The waste management market in Poland The waste management market in Poland has undergone a significant change over the past few years, largely as a result of the country trying to catch up with Western Europe. Transposition of EU directives has accelerated the pace of modernization of existing plants as well as forced the companies to engage in further investments, especially in the reduction of landfilled waste. At the EU level, perhaps the most important directive was the Act on maintaining cleanliness and order in municipalities (2011), which entirely transforms the system of municipal waste collection. However, in terms of the waste-to-energy process, Poland’s market appears to be untapped. As will be shown, merely 1% of municipal waste is currently thermally treated in Poland, whereas the majority of waste is landfilled. This is a striking contrast when compared to Western European countries, which have invested in incinerators and MBT plants many years ago. Although investments continue to pour into Poland, experts are voicing concerns whether Poland – and more specifically local governments – will be able to successfully grasp the new system of waste collection and disposal. According to statistics, the biggest potential for the industry lies in urban areas that generate 80% of municipal waste. In terms of opportunities for new investors, there is a significant demand for modern infrastructure, such as thermal treatment plants, gasification plants and MBT installations, constructed according to the hierarchy of waste management. Furthermore, there is a substantial opportunity for cooperation or mergers between market players, given that the waste management sector is expected to consolidate. The waste water market in Poland The waste water market in Poland has witnessed huge investment over the past few years, largely as a result of the country trying to “catch up” with EU specified regulations. At the EU level, perhaps the most important directive which dictates municipal waste water is the Urban Wastewater Directive, signed originally in 1991. Domestically speaking, cities and smaller municipalities are bound to comply with the National Urban Wastewater Treatment program, largely having come into effect in 2003, shortly before Poland entered the European Union. Although investments continue to pour into the industry, most experts interviewed for this part of the research paper believe that the largest potential lies – geographically – in smaller urban areas. This is due to a few reasons. First, approximately 10 million Poles live outside of the EU wastewater system. This represents a sizeable chunk of Poland’s population, almost 25% of the country’s total population. Secondly, demographic trends show that Polish cities are expanding at a quick pace, with more and more rural settlements being built just outside the fringes of larger cities. These smaller rural residential areas will need to be supplied with “local solutions” and municipal governments will need to address this growing problem. Lastly, in terms of the waste-to-energy process, tapping waste water sludge in Poland continues to be a huge problem – and ultimately – a large opportunity for investors. As will be shown, less than 5% of sewage sludge is currently thermally treated in Poland. This is a striking contrast when compared to countries such as Sweden and Germany. Indeed, although the technology exists, two factors seem to inhibit the future for thermal treatment plants, which are widely seen as the most effective method in dealing with waste water sludge. First, the high costs of thermally treating sludge continue to act as an impediment to larger investments in the sector. Secondly, the lack of a well-developed social conscience regarding the benefits of investing in an infrastructure that supports a waste-to-energy process, still inhibits the industry.
WASTE MANAGEMENT IN POLAND
5