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Circular economys frontier of knowledge Nabil Nasr wcef2018
- 1. © 2018 IRP Redefining Value A Revolution in Manufacturing: Remanufacturing, refurbishment, repair and direct reuse in the circular economy 2018 World Circular Economy Forum Nabil Nasr, Ph.D., Associate Provost and Director Jennifer D. Russell, Ph.D. Study co-author Golisano Institute for Sustainability Rochester Institute of Technology (RIT) – Rochester, NY USA Prof. Nabil Nasr, Associate Provost and Director Jennifer D. Russell, Ph.D. Golisano Institute for Sustainability Rochester Institute of Technology (RIT) – Rochester, NY USA October 22, 2018
- 2. © 2018 IRP Refurbish/ remanufacture Recycle Reuse/redistribute Maintenance Mining/materials manufacturing Parts manufacurer Product manufacturer Service provider Leakage—to be minimised Landfill Energy recovery Collec@on Circular Economy (CE) • CE seeks to maximize system efficiency through both resource utilization and value retention. Potential Benefits • Offer substantial and verifiable benefits in terms of resource efficiency, circular economy, and reduced negative environmental impact. Broader Impact • Inform policy and guide private sector Context of the IRP study Value-Retention Processes (VRPs) • Processes that retain value within a system through: direct reuse, repair, refurbishment, and remanufacturing. Ellen MacArthur Foundation, SUN, and McKinsey Center for Business and Environment; Drawing from Braungart & McDonough, Cradle-to-Cradle (C2C).
- 3. © 2018 IRP Process-level: Value-Retention Processes (VRPs) are not equal Expected EOL Manufactured Comprehensive Refurbishment EOL Almost full service life Manufactured Expected EOL Manufactured Expected EOL Manufactured EOU Direct Reuse Expected EOL Manufactured EOU Repair Expected EOL Manufactured Refurbishment EOLEOU OEM New (Manufacturing) Remanufacturing Comprehensive Refurbishment Arranging Direct Reuse Refurbishment Repair FullServiceLifeEnablingProcessesPartialServiceLifeEnablingProcesses Expected EOL Remanufacturing Full service life EOL Full service life Expected EOL Remanufacturing
- 4. © 2018 IRP Research questions 1) What are the product- and process-level environmental and economic implications of circular VRP-based production, relative to traditional linear OEM New production? 2) What are the economy-level environmental and economic implications of circular VRP-based production, relative to traditional linear OEM New production? 3) What are the impacts of regulatory, market-based, technological, and collection infrastructure barriers to VRPs, and how do they affect transition to circular economy? 4) What actions can be taken by industry and policy-markets to support and enable VRP market transformation for circular economy through VRPs?
- 5. © 2018 IRP Methods & approach
- 6. © 2018 IRP VRPs and circular economy rely on an expanded system model VRPs and circular economy rely on an expanded system model
- 7. © 2018 IRP Framework & modeling approach: Top-down: Macro-circular dynamic system modeling of 3 sectors across 4 economies Bottom-up: Material, product-, and process-level analysis of 3 representative products from 3 sectors Vehicle Parts Heavy-Duty (HDOR) Equipment Parts Industrial Digital Printers USA Brazil China Germany
- 8. © 2018 IRP Data collection & impacts assessment Identified 9 case study products from 3 sectors Identified industry collaborators Collected materials-level (BOM) for every product Collected process-level impact data Modeled & simulated input requirements Estimated/documented each product & process: • Material requirement (kg) & waste (kg) • Embodied materials energy (MJ) • Embodied materials emissions (kg CO2-eq.) • Process energy (MJ) • Process emissions (kg CO2-eq.) • Cost advantage ($ USD) • Employment opportunity (FTE) ECONOMY D Ne w R1 R2 R3 R 4 Vehicle Engine Vehicle Alternator Vehicle Starter Production Printer Printing Press Printing Press HDOR Engine HDOR Alternator HDOR Turbo Charger ECONOMY D Ne w R1 R2 R3 R 4 Vehicle Engine Vehicle Alternator Vehicle Starter ECONOMY C Ne w R1 R2 R3 R 4 Vehicle Engine Vehicle Alternator Vehicle Starter Production Printer Printing Press Printing Press HDOR Engine HDOR Alternator HDOR Turbo Charger ECONOMY B Ne w R1 R2 R3 R 4 Vehicle Engine Vehicle Alternator Vehicle Starter Production Printer Printing Press Printing Press HDOR Engine HDOR Alternator HDOR Turbo Charger ECONOMY A Ne w R1 R2 R3 R 4 Vehicle Engine Vehicle Alternator Vehicle Starter Production Printer Printing Press Printing Press HDOR Engine HDOR Alternator HDOR Turbo Charger ECONOMY C Ne w R1 R2 R3 R 4 Vehicle Engine Vehicle Alternator Vehicle Starter ECONOMY B Ne w R1 R2 R3 R 4 Vehicle Engine Vehicle Alternator Vehicle Starter ECONOMY A Ne w R1 R2 R3 R 4 Vehicle Parts Industrial Digital Printers HDOR Equipment Parts
- 9. © 2018 IRP Sample Results
- 10. © 2018 IRP Estimated Current State of Production OEM New 66.0% Direct Reuse 0.3% Repair 0.3% Refurbished 0.5% Remanufactured 32.9% Estimated Production Share* - USA Case Study Industrial Digital Printers, Current State - OEMNew Direct Reuse Repair Refurbished Remanufactured • Direct reuse, repair, and refurbishment have marginal share compared to remanufacturing • Only a few producers of Industrial Digital Printers engage in VRPs • Remanufacturing has significant share with potential for growth if market access is not restricted *Produced in USA for sale internationally
- 11. © 2018 IRP 0 500 1,000 1,500 2,000 2,500 OEMNew Remanufacturing Comprehensive Refurbishment DirectReuse Repair Full Service Life Partial Service Life MaterialImpactsPerUnit New Material (kg) ProductionWaste (kg) 0 50,000 100,000 150,000 200,000 250,000 OEMNew Remanufacturing Comprehensive Refurbishment DirectReuse Repair Full Service Life Partial Service Life EnvironmentalImpactsPerUnit Embodied Energy (MJ) Embodied Emissions (kg CO2-eq.) USA Process Energy (MJ) USA Process Emissions (kg CO2-eq.) Product-Level Results: Digital Industrial Printer, USA Environmental Impacts Per Unit - Industrial Digital Printer, USA - Material Impacts Per Unit - Industrial Digital Printer, USA - * * * Does not enable full new service life
- 12. © 2018 IRP Recommended Policy Priorities ELIMINATE regulatory barriers that interfere with movement of cores and finished products. ADOPT, ACCEPT & ALIGN VRP definitions across different countries and internal agencies. EXPAND “3R’s” to include VRPs as gateway activities to recycling. ESTABLISH & ENFORCE clear standards, guidelines, and compliance for each class of VRP. INVEST in accelerated VRP adoption via funding to VRP producers for R&D and skilled labor. ENGAGE & EDUCATE customer markets about VRPs. IMPLEMENT accessible and efficient end-of-use product collection systems to support reverse-logistics. LEAD-BY-EXAMPLE by adopting VRP-friendly public procurement practices and policies.
- 13. © 2018 IRP Recommended Industry Priorities EVALUATE existing product lines to identify new opportunities for VRPs within the product-system. DEVELOP, RATIFY & ENFORCE VRP standards and practices. ADOPT an expanded systems-perspective that includes design-for-reman. COORDINATE with internal company stakeholders to facilitate intra-firm resource and knowledge-sharing. PARTNER with other industry members to provide active customer market education and awareness. COLLABORATE with industry members and policy-makers to identify and communicate about key barriers. PROVIDE transparent and credible information to customers about VRPs and VRP product quality. MODIFY design priorities to include essential VRP principles (e.g. design for disassembly).
- 14. © 2018 IRP Thank you Nabil Nasr Golisano Institute for Sustainability Rochester Institute of Technology Email: nasr@rit.edu Phone: +1 585-475-5106 http://www.sustainability.rit.edu/