The world is drowning in waste. At least this is the impression one can have when examining the forecasts relating to the global increase in waste: The World Bank predicts an increase in the annual global production of waste by 2050, of 2 billion tonnes currently at 3.4 billion tonnes, an increase of around 70%. This is more than double the population growth during the same period.
By Johannes Haubrich, Head of Investment Products
According to the World Bank, geographically, about 44% of all waste produced in sub-Saharan Africa is collected, while in Europe, Central Asia and North America, at least 90% of waste is collected. waste. But recycling is still not widespread around the world: the recycling rate for municipal waste (household waste and similar waste) is 43% in Europe, while the United States only recycles a little less than a third. of their waste. Globally, only 14% of waste has a “second life”. Much of what cannot be recycled is burned to produce energy. The problem is that this increases global carbon dioxide emissions, and this is harmful to both humans and the climate.
Waste in the United States – a curse; or would that be a blessing?
In all this, we often forget one thing: waste is not only the by-product of our consumption that is difficult to avoid and harmful to the environment, it also and above all has value! If treated correctly, waste is an important raw material. Their valuable components can be used to replace raw materials such as wood, oil or metals that are not available in abundance. Which means that you can also make money from waste.
The United States is the world’s largest producer of waste, with 624,700 tonnes per day. Each American citizen currently produces 811 kilograms of waste per year. On the one hand, the United States faces the major problem of waste disposal but on the other, there is a huge potential for reuse of resources and raw materials.
GFL Environmental – Waste, their business
GFL Environmental is one of the top five waste management companies in North America. With a compound annual revenue growth rate of 32% over the past five years, GFL has become the fastest growing publicly traded municipal waste management company in the United States. Its main competitors recorded an average annual growth of 10% during the same period. This is due to GFL’s relatively higher annual spend on mergers and acquisitions compared to its peers. Some 33% of its annual turnover is on average devoted to mergers and acquisitions, while its competitors only invest around 10%.
The company provides identification, collection, transportation, treatment, recycling and disposal of a wide range of hazardous and non-hazardous solid and liquid wastes. GFL has a broad customer base in the industrial, commercial, municipal and residential sectors across North America. The strength of the company lies in the diversity of its services. GFL’s “one-stop shop” offers a comprehensive range of integrated and customizable environmental solutions, all delivered from a single source, saving customers time, effort and money.
Recycling – Breaking the waste cycle
The general disposal of residual, bulky and hazardous waste as well as green waste and construction materials is not only the foundation of GFL’s business model. It is also the source of recovery of many reusable materials.
GFL owns or operates materials recovery facilities throughout North America, which use a range of advanced technologies to sort and prepare recyclable materials for resale and reuse. In 2022, GFL factories notably recovered more than a million tonnes of fibrous materials, 468,000 tonnes of construction materials and wood, and 184,000 tonnes of plastic.
Environmental Services – Repairing the damage
GFL also has an extensive integrated network of companies dedicated to the disposal and recycling of soil and liquid waste. Complete solutions for the sanitation and reuse of contaminated soil are notably offered. It also often contributes to the development of brownfield sites that have been abandoned or underutilized due to pollution from industrial use, and which are now being reactivated for recreational, conservation or commercial rehabilitation projects. In 2022, GFL processed nearly 4 million tonnes of soil, an increase of 90% compared to 2021 volumes.
A 124% increase was also recorded in the disposal and treatment of liquid waste between 2021 and 2022. More than 890 million liters of wastewater and 340 million liters of used motor oil and antifreeze have been treated.
Landfill Gas – Transforming Waste into Energy
Around 44% of waste produced globally is organic waste such as food and green waste. When stored in landfills, they produce landfill gas, a natural byproduct of the decomposition of organic matter. About 50% of it is methane, a powerful greenhouse gas that is at least 28 times more effective than CO2 at absorbing heat in the atmosphere. In the United States, 14.3% of methane emissions come from municipal landfills. Instead of letting it escape into the atmosphere, landfill gas can be captured, converted and used as a renewable energy source or biomethane.
Thanks to new government incentives for the transportation sector, the majority of US biomethane currently produced is destined for the transportation fuels sector, so demand has seen growth of 20% in 2022. The biogas market is expected to be multiplied by 10 by 2050.
GFL is riding this trend and has significantly increased its investments in landfill gas installations in recent years. Nine projects are under development. Each of them has a high level of profitability, with an expected payback period of less than two years. Existing facilities recovered more than 352 million m3 of landfill gas in 2022. This production is expected to be multiplied in the years to come. Pleasant side effect: GFL can also use the biogas itself and thus reduce both its carbon footprint and operating costs. The share of company vehicles running on natural gas is currently 16%. By 2030, 85% of GFL’s fleet in the United States will run on renewable natural gas from its own landfills.
Engage in a perspective of vigorous growth
GFL is constantly seeking to build on the strong growth recorded in recent years. The high barriers to market entry in the constantly growing waste disposal sector (estimated average annual growth rate of 4.5% until 2030) give the company additional leverage and strengthen the pricing power of GFL – over the past five years, price increases of 28% have been achieved, compared to an inflation rise of around 18%.
All of this not only benefits GFL and its investors, but also the environment. In 2022, 12.5 million tonnes of greenhouse gas emissions were avoided and CO2 sequestration was recorded. This amounts to removing 1.8 million gas-powered vehicles from circulation for one year.
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