Utility Week Live – everyone’s excited about sludge

“I never thought I’d be so excited about sludge” – a quote overheard near the Pumping Station at Utility Week Live 2016, where the conversation yesterday turned to the commercialisation of sludge.

Sludge has been something both water companies and the wider industry have been getting particularly excited about – or, more specifically, competition in the sludge market.

“Sludge will be the next big market,” said Severn Trent Water’s head of strategy Neil Corrigall.

Why is the topic gaining such prominence now? Recycling and reusing sludge from the water treatment process seems like a clear solution to the problem of stretched resources.

It’s only recently that Ofwat has started its big push on sludge, as part of its agenda as a “pro-competition regulator” – this includes retail competition as well.

As part of its Water 2020 proposals, Ofwat wants to “remove regulatory red tape” to open up the market for sludge and encourage innovation. The savings made would keep bills down and help meet our energy needs sustainably.

In his presentation, Neil highlighted that competition can be introduced into the market in four ways:

• by encouraging more trading between existing wastewater companies

• by opening access to treatment sites and driving a more dynamic reconfiguration of sludge flows from small treatment works to sludge treatment centres

• by creating competition for new capacity built for the wider system

• by opening the market to third party organic waste processors

All that remains now is to get the market mechanisms in place to be able to facilitate a viable system for sludge trading. But we know there is scope for commercial sludge trading, Neil concluded, “and we don’t have to wait to 2020.”

The industry eagerly awaits feedback on Ofwat’s Water 2020 consultation, which will help pave the way for the creation of a sludge market.