June 2009

Green in Demand

A growing number of cities and towns are seeking to boost their green status by diverting waste from landfills and turning it into green products. This growing market has helped offset some of the decline from the slumping housing industry.

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Photo: CWQ Mill

By Dan Rafter

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But that doesn’t mean that greenwaste processing doesn’t face some challenges. There is certainly potential trouble on the horizon, thanks to the ongoing collapse of the homebuilding industry.

While this slowdown means that municipalities are seeing less construction waste thrown their way—a positive for those trying to slow the amount of trash sent to their landfills—it may also mean that solid waste districts won’t need to purchase as many shredders, mulchers, or grinders. And that, of course, is not welcome news to the manufacturers of this equipment.

The bad news is that there is no end in sight to the housing industry slowdown. The National Association of Realtors reports that existing-home sales, a grouping that includes single-family homes, townhouses, condominiums, and co-ops, fell 5.3% in January when compared with December 2008. The numbers are even worse when comparing January sales to the same month one year earlier. Home sales dropped 8.6% across the country from January 2008 to the same month this year.

With fewer people buying homes, homebuilders have significantly slowed their construction of new residences, too. The National Association of Home Builders reported that new-home production fell by 16.8% in January. That’s the seventh consecutive month during which production has fallen.

A Changing Market
The decline in construction has collided with the still-growing interest among municipalities and the public in anything labeled “green.” This has helped keep the greenwaste processing industry at a fairly consistent level, even as the national economy continues to struggle.

“Our primary business is working with municipalities seeking to reduce the amount of waste they put into their landfills,” says Pat Crawford, vice president of products with Diamond Z Manufacturing.

The Caldwell, ID–based company manufactures tub grinders, horizontal grinders, and trommel screens, all used by municipalities to shred and grind portions of their wastestreams.

This doesn’t mean, though, that Diamond Z officials aren’t watching the housing industry closely. The wood that home builders and developers discard, not to mention the trees and shrubs that they clear when erecting new homes and subdivisions, are prime candidates for greenwaste diversion. As municipalities receive less of this construction waste, their thirst for grinders and shredders may not be as high.

“It’s amazing the impact that the housing industry has,” Crawford says. “It trickles down to everything you can imagine. Construction workers who aren’t working aren’t buying as much as they once did. You are not producing the debris from a construction site. Demolition work has slowed down. The construction and demolition materials are reduced. The land clearing, the trees and shrubs they have to clear from a piece of ground to build a new structure, has all been reduced. The housing slowdown has had a very broad impact on our industry. It’s amazing when you think about the impact that housing has on just about every industry.”

Still, Crawford expects the greenwaste movement to continue to build. And when the housing industry does eventually rebound, that, combined with the continued demand for waste diversion and biomass products, will provide a boost to companies providing grinding and mulching equipment.

Crawford sees the biomass market, where waste is transformed into material suitable for biofuels, to be a market that is also growing steadily.

“The cogen market has been strong for us,” Crawford says. “It’s a good, cheap fuel source. And we are seeing a growing demand for it.”

Greenwaste Processing in San Diego
Greenwaste processing has long been the norm in San Diego, as has diverting waste from the Miramar Landfill, which the city owns. In 1989, the state of California required all state landfills to divert 50% of their solid waste to salvage and recycling efforts by the end of 2005.

The Miramar Landfill achieved this goal ahead of schedule when, in 2004, it diverted 52% of its solid wastestream.

Recently, the San Diego landfill has seen market forces generate a significant dip in the amount of trash it receives. According to a story in the Los Angeles Times, haulers sent 66,000 tons of trash to the Miramar Landfill in December 2008. That’s a 12% dip from the same period one year earlier.

The Times story also reported that construction and demolition waste fell 80%. The landfill took in 7,000 tons of this type of waste in December of 2008 after taking on 36,000 tons of it in the same month in 2007.

Today, the city transforms waste into wood chips and compost that it sells to the public or gives to the city. It also transforms waste into biomass that it sells to cogen plants. It also uses waste, which has been run through grinders that the city has purchased from Diamond Z, for erosion-control and weed-abatement efforts, Armstrong says.

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Consumer demand for the city’s green-waste-generated compost has been strong, Armstrong says. This is probably due to its price. While a truckload of compost from a store like Home Depot may cost $60 to $100, the city charges just $10 for the same amount, Armstrong says.

“Our biggest issue is that we have limited air space in the landfill,” Armstrong says. “Our main goal is to divert as much of the city wastestream from the landfill as we can. And we try to do that in as many ways as possible.” Next Page >

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