Synergy Management Services Companies: A New Business Model for Industrial Park Operators

The concept of industrial symbiosis (IS) was introduced decades ago and its environmental and economic benefits are well established, but the broad acceptance of IS still faces significant barriers. This article provides a new approach to capture synergies within industrial parks by suggesting a new business model. Building on findings from a survey conducted by the authors and on literature, we first identify potential barriers to low‐carbon synergistic projects. Economic concerns of technically feasible synergies and financial issues turn out to be the largest barriers, because of long payback periods and fluctuating raw material and by‐product market prices. Existing business models do not offer easy ways to overcome or relax these barriers. We therefore introduce the concept of a synergy management services company (SMSCO), a synergy contractor and third‐party financing model, to overcome these barriers. This model shifts the financial risk of the synergistic project from collaborating firms to the SMSCO. We posit that this attribute of the SMSCO model makes it attractive for industrial park operators who seek long‐term solutions to secure future viability of their park.     

Understanding the Evolution of Industrial Symbiosis Research

This study analyzes the evolution of the research field of industrial symbiosis (IS). We elucidate its embedding in industrial ecology (IE), trace the development of research themes, and reveal the evolution of the research network through analysis of the core literature and journals that appeared from 1997 to 2012 by citation analysis, cocitation analysis, and network analysis. In the first period (1997–2005), IS research held a minority share in the IE literature. The research revolved around the concept of IS, the assessment of eco‐industrial park projects, and the establishment of waste treatment and recycling networks. In the second period (2006–2012), diverse research approaches and theories enriched the field, which has led to a maturation in theory building. Our findings clearly illustrate that IS evolved from practice‐oriented research toward coherent theory building through a systematic underpinning and linking of diverse topics. As scientific attention shifted from exploring a phenomenon to elucidating underlying mechanisms, IS knowledge found worldwide practical implementation. The coauthorship network shows that the academic communities of IS are distributed worldwide and that international collaboration is widespread. Through bibliometric and network analysis of IS, we have created a systemic, quantitative image of the evolution of the IS research field and community, which gives IS researchers an underpinned overview of the IS research and may help them to identify new directions and synergy in worldwide research.     

Modeling and Optimization of a Coal‐Chemical Eco‐industrial System in China

China is coal dependent, and this situation will persist for a long time. Because more and more attention has been paid to energy security, the coal‐chemical industry has become a hot topic and has developed quickly. To improve efficiency and reduce emissions, industrial symbiosis (IS) can be introduced when establishing a coal‐chemical eco‐industrial system to achieve harmonious development between nature, industry, and society. In order to learn the influence of IS on the current industrial system, a model of coal‐chemical eco‐industrial systems was built. Using scenario optimization and linear programming, the behaviors and optimal industrial structures of the system under different scenario settings were compared, and industrial ecological analysis was performed. By comparative analysis, results showed that the greatest proportional decrease in the use of coal for coking was 15% compared with actual data for 2005. The resource‐productivity and eco‐productivity were 828 yuan/ton and 2.51, which are much higher than the values of 548 yuan/ton and 1.23 in 2005. The symbiosis index and the link density were found to be 0.675 and 1.67, compared with 0.588 and 0.94 in 2005. Research results showed that the coal‐chemical eco‐industrial system achieved a high value‐added utilization of coal and an updated product profile. Such systems will constitute the main direction and the inevitable trend of China's coal utilization in the future, which will reduce the harm to the environment from increased coal use and benefit the energy industry, the economy, and society.     

Scaling‐Up of Industrial Symbiosis in the Korean National Eco‐Industrial Park Program: Examining Its Evolution over the 10 Years between 2005–2014

In 2005, South Korea initiated the 15‐year National Eco‐Industrial Park Development Program in three stages to gradually transform aged industrial complexes into eco‐industrial parks (EIPs) by promoting industrial symbiosis (IS). Building upon the pilot experiences from the first 5 years, the second phase of the program focused on the scaling‐up of IS at a broader regional level. Key scaling‐up strategies included the expansion of target areas by connecting multiple industrial complexes, the standardization of processes and dissemination of learning, and the development of large‐scale projects that could contribute to the regional development. In this study, we examined the evolution of IS over the last 10 years between 2005 and 2014, primarily to understand the characteristics and impact of these scaling‐up strategies. Our findings showed that the scale of IS in the second phase had increased in various aspects in comparison to that in the first phase. The number of operating projects had increased from 52 to 159, the number of participating firms increased from 90 to 596, and the average distance of IS increased from 40 to 48 kilometers. The size of economic and environmental benefits also increased along with an increase in the private investment and government research funding. We further analyzed the role of the regional EIP centers as facilitators, how their activities influenced the scaling‐up of IS, and discussed the characteristics of the Korea's approach to IS.     

Barriers to Industrial Symbiosis: Insights from the Use of a Maturity Grid

The concept of industrial symbiosis (IS) over the last 20 years has become a well‐recognized approach for environmental improvements at the regional level. Many technical solutions for waste and by‐product material, water, and energy reuse between neighboring industries (so‐called synergies) have been discovered and applied in the IS examples from all over the world. However, the potential for uptake of new synergies in the regions is often limited by a range of nontechnical barriers. These barriers include environmental regulation, lack of cooperation and trust between industries in the area, economic barriers, and lack of information sharing. Although several approaches to help identify and overcome some of the nontechnical barriers were examined, no methodology was found that systematically assessed and tracked the barriers to guide the progress of IS development. This article presents a new tool—IS maturity grid—to tackle this issue in the regional IS studies. The tool helps monitor and assess the level of regional industrial collaboration and also indicates a potential path for further improvements and development in an industrial region, depending on where that region currently lies in the grid. The application of the developed tool to the Gladstone industrial region of Queensland, Australia, is presented in the article. It showed that Gladstone is at the third (active) stage of five stages of maturity, with cooperation and trust among industries the strongest characteristic and information barriers the characteristic for greatest improvement.     

Using an Industrial Waste Account to Facilitate National Level Industrial Symbioses by Uncovering the Waste Exchange Potential

The identification of potential by‐product exchanges is important for fostering industrial symbiosis. To discover these potential exchanges, this article extends the analysis of local industrial symbiosis to a national scale. A waste input‐output table, which is a material flow accounting tool, was compiled and used as a database to examine the existing exchanges of by‐products. The supplies and demands of industrial wastes or by‐products were compared to highlight their potential use for promoting higher exchange flows. The analysis of the linkages indicated that the majority of each of the by‐products were reused by the few industries that had the technology and operational capacity for reuse. This finding is useful for determining which industries are good candidates for promoting further industrial symbiosis (IS). Based on a nation‐wide analysis that considered the industrial characteristics of Taiwan comprehensively, 23 types of major by‐products with greater reuse flows and 216 potential exchange patterns were identified between the industries. In addition, three types of eco‐industrial networks were characterized as follows according to their dominant types: (1) fossil fuel, metal, and mineral‐dominated; (2) agricultural and synthetic material‐dominated; and (3) information and communications technology (ICT) and chemical industry‐dominated eco‐industrial networks. This analysis highlights the resource exchange potentials and provides information to new firms for networking with existing businesses.     

Levels of Institutional Capacity and Actor Expectations about Industrial Symbiosis

One assumption underlying the work on industrial symbiosis (IS) is that certain social conditions must be fulfilled in order for firms to develop symbiotic linkages. In this article we add depth to this insight by using institutional capacity as an underlying concept for these conditions, and we propose that such capacity influences IS by altering the opportunity set of actors. We then test the assumption on a dataset of 233 projects aiming to develop eco‐industrial parks. We find that the link between institutional capacity and the opportunities for symbiotic linkages perceived by actors is not always present and is more complicated than has been recognized thus far. We discuss potential alternative ways in which institutional capacity might influence IS and present ideas for future research to shed light on this important relationship.     

Evaluation and Allocation of Greenhouse Gas Reductions in Industrial Symbiosis

Industrial symbiosis (IS) exchanges have been recognized to reduce greenhouse gas (GHG) emission, though methods for quantification of GHG emissions in IS exchanges are varied, and no standardized methods are available. This article proposes a practical approach to quantify total and allocated GHG emissions from IS exchanges by integrating the GHG protocol and life cycle assessment. The proposed method expands the system boundaries to include all IS companies, and the functional flow is set to be the sum of the main products. The total impact of a company is allocated to the main product. Three by‐product impact allocation methods of cutoff, avoidance, and 50/50 are proposed, and the total and distributed impacts of the IS systems in an industrial park are theoretically derived. The proposed method was tested to quantify GHG reduction in a real IS exchange developed between Korea Zinc (a zinc smelter) and Hankook Paper (a paper mill company) in the Ulsan Eco‐Industrial Park initiative. The total reduction of GHG emissions in this IS exchange, 60,522 tonnes of carbon dioxide per year, was the same in the GHG protocol, whereas GHG distribution between two companies depended on the allocation method. Given that the reduction of GHG emissions from IS exchanges is the product of the collaboration of giving companies and receiving companies, the 50/50 allocation method is best from an equivalent‐responsibility and benefit‐sharing perspective. However, this study suggests a more practical implementation approach based on a flexible and negotiable method of allocating the total GHG reduction between stakeholders.     

Assessing the “Short Mental Distance” in Eco‐Industrial Networks

Like many economic exchanges, industrial symbiosis (IS) is thought to be influenced by social relationships and shared norms among actors in a network. While many implicit references to social characteristics exist throughout the literature, there have been few explicit attempts to operationalize and measure the concepts. The “short mental distance,”“trust,”“openness,” and “communication” recorded among managers in Kalundborg, Denmark, set a precedent for examining and encouraging social interactions among key personnel in the dozens of eco‐industrial networks around the world. In this article we explore the relationships among various aspects of social embeddedness, social capital, and IS. We develop a conceptual framework and an approach using quantitative and qualitative methods to identify and measure these social characteristics, including social network structure, communication, and similarities in norms and conceptions of waste, and apply them in an industrial network in Nanjangud, South India. The findings suggest that there is a fairly high level of shared norms about dealing with waste—the “short mental distance”—in this network, but by‐product transactions are only weakly correlated with the structure and content of communication among managers. Replication of this approach can increase the understanding and comparability of the role of social characteristics in eco‐industrial activities around the world.     

Evaluating the environmental performance of producing soil and surfaces through industrial symbiosis

Industrial symbiosis (IS), where different entities collaborate in the management of energy, utilities, materials, or services, has been identified as an approach to improve resource efficiency and circularity in industry. This article assesses the environmental performance of an IS network with firms involved in waste management, soil, surfaces, paper, lumber, and energy. The aim is to highlight the environmental performance of an IS network and pay particular attention to the improved performance for products in the IS network. Life cycle assessment is used to compare the current IS network with a reference scenario and a potential future development. The results suggest that there are significant benefits from the IS network. Large reductions in greenhouse gas (GHG) emissions and abiotic resource depletion were identified. Furthermore, large reductions in local impacts, namely eutrophication and acidification impacts are illustrated. It was shown that all firms in the network benefit from the synergies involved, with a large share of the benefits stemming from the facilitated exchanges with the waste management company. The replacement of conventional products and energy streams with bio‐based counterparts from within the network is of significant importance. Finally, the results point to the importance of the facilitation of by‐product synergies, and the significant value this creates in the region, with large potential to improve the environmental performance of firms and their products.     

Material Flow Optimization in By‐product Synergy Networks

By‐product synergy (BPS) is an industrial ecology practice that involves utilization of industrial by‐products as feedstocks for other industrial processes. A novel decision support tool is developed to analyze BPS networks that involve material processing and transport among regional clusters of companies. Mathematical programming techniques are used to determine the optimal network design and the material flows that minimize total cost or environmental impacts. This methodology is incorporated into a graphical software package called Eco‐Flow?. The tool has been applied to model and analyze available synergies in an existing BPS network centered in Kansas City, Missouri. A base case, which assumes no synergies, is compared with the optimal BPS solution found by Eco‐Flow?. The results for Kansas City suggest that when companies in the network cooperate to optimize the system profitability, up to $15 million per year of savings are possible. The findings also indicate that the BPS approach would result in 29% reduction in total cost, 25.8% reduction in average company cost, 30% reduction in carbon dioxide (CO₂) emissions, and 37% reduction in waste to landfill. The modeling approach is being extended to better represent the dynamics of industrial and ecological processes.     

Social Semantic Web Framework for Industrial Synergies Initiation

Industrial synergies join two or more organizations that initially functioned as independent economic actors—that may originate from different sectors—together in order to share resources and exchange by‐products for mutual environmental, financial, and social benefits for its participants. Industrial symbioses (ISs) are networks of industrial synergies that can be initiated and created over time in various manners. In practice, the initiation of an industrial synergy, and particularly the identification of by‐product compatibilities, relies on direct or facilitated knowledge and information sharing, which is essential for discovering industrial synergy opportunities. Beyond its potential contribution to facilitate knowledge and information sharing among organizations, the Social Semantic Web (SSW) also has the potential to facilitate the initiation of industrial synergy by systematically and automatically identifying and recommending by‐products exchange compatibilities to potential partners. This framework exploits the ability of the sematic web to enable the search for analogies between potential partners within a region or district and existing industrial synergies around the world. This paper proposes the Social Semantic Web for Industrial Synergies Initiation (SSWISI) framework for the initiation of industrial synergies, which is based on the Social Semantic Web. The framework proposed in this paper adopts the concept of Linked Open Data (LOD), which enables the sharing and exchanging of information with external systems. This feature distinguishes the proposed framework from the existing approaches in its initiation of industrial synergies.     

Use of Symbiosis Products from Integrated Pulp and Paper and Carbon Steel Mills: Legal Status and Environmental Burdens

This study assesses the policy/legal status of both multistream residues and potential secondary products (“symbiosis products”) and whether there could be environmental benefits associated with the utilization of residues from integrated pulp and paper and carbon steel mills as raw materials for such secondary products. Waste‐related European Union (EU) and Finnish policy and legal instruments were reviewed to identify potential constraints for, and suggested next steps in, the development of potential process industry residue‐based symbiosis products. The products were soil amendment pellets, low‐grade concrete, and mine filler. A global warming potential (GWP) assessment and an exergy analysis were applied to these potential symbiosis products. Some indicative GWP calculations of greenhouse gas emissions associating similar and/or analogous products based on virgin primary raw materials, more energy‐intensive processes, and the alternative treatment of these residues as wastes are also presented. This study addresses GWP, exergy, and legal aspects in a holistic manner to determine the potential environmental benefits of secondary products within the EU legal framework. The GWP assessment and exergy analysis indicate that the utilization of multistream residues causes very low environmental burdens in terms of GWP. The utilization option can have potential environmental benefits in terms of GWP through process replacement and avoided landfilling and waste treatment impacts, as well as potentially through emission reductions from product replacement if suitable and safe applications can be identified. Waste regulation does not define the legal requirements under which utilizing residues in such novel concepts as introduced in this study would be possible, nor how waste status could be removed and product‐based legislation be applied to the potential products instead.     

Industrial Symbiosis in the Australian Minerals Industry: The Cases of Kwinana and Gladstone

The realization of regional synergies in industrial areas with intensive minerals processing provides a significant avenue toward sustainable resource processing. This article provides an overview of past and current synergy developments in two of Australia's major heavy industrial regions, Kwinana (Western Australia) and Gladstone (Queensland), and includes a comparative review and assessment of the drivers, barriers, and trigger events for regional synergies initiatives in both areas. Kwinana and Gladstone compare favorably with well‐known international examples in terms of the current level and maturity of industry involvement and collaboration and the commitment to further explore regional resource synergies. Kwinana stands out with regard to the number, diversity, complexity, and maturity of existing synergies. Gladstone is remarkable with regard to unusually large geographic boundaries and high dominance of one industry sector. Many diverse regional synergy opportunities still appear to exist in both industrial regions (particularly in Kwinana), mostly in three broad areas: water, energy, and inorganic by‐product reuse. To enhance the further development of new regional synergies, the Centre for Sustainable Resource Processing (CSRP), a joint initiative of Australian minerals processing companies, research providers, and government agencies, has undertaken several collaborative projects. These include research to facilitate the process of identifying and evaluating potential synergy opportunities and assistance for the industries with feasibility studies and implementation of selected synergy projects in both regions. The article also reports on the progress to date from this CSRP research.     

Methodological Aspects of Applying Life Cycle Assessment to Industrial Symbioses

In view of recent studies of the historical development and current status of industrial symbiosis (IS), life cycle assessment (LCA) is proposed as a general framework for quantifying the environmental performance of by‐product exchange. Recent guidelines for LCA (International Reference Life Cycle Data System [ILCD] guidelines) are applied to answer the main research questions in the IS literature reviewed. A typology of five main research questions is proposed: (1) analysis, (2) improvement, and (3) expansion of existing systems; (4) design of new eco‐industrial parks, and (5) restructuring of circular economies. The LCA guidelines were found useful in framing the question and choosing an appropriate reference case for comparison. The selection of a correct reference case reduces the risk of overestimating the benefits of by‐product exchange. In the analysis of existing systems, environmentally extended input‐output analysis (EEIOA) can be used to streamline the analysis and provide an industry average baseline for comparison. However, when large‐scale changes are applied to the system, more sophisticated tools are necessary for assessment of the consequences, from market analysis to general equilibrium modeling and future scenario work. Such a rigorous application of systems analysis was not found in the current IS literature, but would benefit the field substantially, especially when the environmental impact of large‐scale economic changes is analyzed.     

Industrial symbiosis in the forestry sector: A case study in southern Brazil

Industrial symbiosis (IS) is an important concept in the field of industrial ecology that has disseminated worldwide as a practice to decrease the ecological impact of industrial processes through the exchange of by‐products and waste between units in a system. The forestry industry is the main economic activity in the region of Lages in southern Brazil. IS relationships have expanded with the use of waste material from wood processing and strengthened cooperation between companies in different sectors. The aims of this article were to: a) quantify the level of IS in the system, b) identify the benefits of IS for participants, and c) explain why the network further developed IS to the formation of an industrial ecosystem. A questionnaire was administered during visits to 24 forestry companies in order to analyze their products and processes, commercial relations, positive impacts, and local insertion. The industrial symbiosis indicator (ISI) was determined using waste stream data from the system to represent the level of symbiosis among the companies in this region. The results show that the companies participate in a symbiotic network, mainly involving the exchange of chips, bark, sawdust and shavings. In most cases, these exchanges occur between nearby companies, constituting an extensive industrial ecosystem.     

Industrial Symbiosis Dynamics and the Problem of Equivalence: Proposal for a Comparative Framework

Industrial symbiosis (IS), one of the founding notions within the field of industrial ecology, has diffused throughout significant parts of the world as a practice that can reduce the ecological impact of the industrial processes of groups of firms. In this article, we propose a fresh look at this research topic, building on the considerable advances that have been made in the last 15 years in understanding how IS comes about. We propose a conceptual and theoretical framework for taking on the challenge of comparative analysis at a global level. This requires developing an approach to address a solution to the problem of equivalence: the difficulty of comparing instances of IS across different institutional contexts. The proposed framework emphasizes IS as a process and attempts to address the obstacles to comparative study by (1) identifying terminology to examine IS variants, (2) providing a typology of IS dynamics, and (3) formulating key research questions to illuminate a way forward. In developing our argument, we build on the collective experiences of collaborative research efforts in North America, Europe, and Asia as evidenced in recent overviews of the literature.     

Economic and Social Impact Assessment of China's Multi‐Crystalline Silicon Photovoltaic Modules Production

It is important to have insights into the potential sustainability impacts as early as possible in the development of technology. Solar photovoltaic (PV) technologies provide significant environmental, economic, and social benefits in comparison to the conventional energy sources. Because most previous studies of multi‐crystalline silicon (Multi‐Si) PV modules discuss the environmental impacts, this study quantitatively assesses the economic and social impacts of China's multi‐crystalline silicon (mc‐Si) PV modules production stages. The economic analysis is uses life cycle cost analysis, and the social impact analysis is carried out by applying the social index evaluation method. The economic analysis results demonstrate that the main cost of mc‐Si PV modules production in China lies in raw materials and labor and the production of Multi‐Si PV cells have the highest cost among the five manufacturing processes involved in Multi‐Si PV. The result of the social impact analysis reveal that the employment contribution index, S₁₁, is 0.72, indicating that Multi‐Si PV modules production in China has a prominent contribution to employment in comparison with other industries; the labor civilization degree, S₁₂ (i.e., the proportion of mental labor involved in a given job), and labor income contribution index, S₁₃, are both approximately 0.6, indicating that Multi‐Si PV modules production has a less‐significant labor level and income contribution in comparison with other industries; the production capacity contribution index, S₁₄, is merely 0.183, indicating that production of Multi‐Si PV modules does not contribute significantly to the gross domestic product (GDP). Based on the results of these evaluations, some recommendations to improve the economic and social impact of Multi‐Si PV modules production in China are presented, including support for research on polycrystalline silicon production for the purpose of reducing the raw material cost, as well as upgrading manufacturing facilities and implementing the corresponding production training in order to promote the labor civilization degree.     

Probabilistic Assessment of Industrial Synergistic Systems

A probability‐based method is presented for assessing the reliability of synergistic systems and their ability to cope with the uncertainties often associated with two of a company's main types of activities: those carried out by the manufacturing department, and those carried out by the storage department. This method is based on a model focusing on the dynamic simulation of synergistic flows in terms of the mass balance. It differs from previous material flow analysis tools, which do not take into account the temporary failures occurring at the companies involved and the resulting loss of production capacity. The failure events occurring at any of the companies in a synergistic system may result in various levels of synergy failure and a short supply of resources for other companies. We therefore propose to identify the main factors responsible for a lack of synergy. We developed a dynamic stock simulation model for assessing the reliability of synergistic systems as well as that of the individual companies of a system before and after a synergy is set up. We first confirm the validity of this model by comparing the results with those based on the binomial theorem in system reliability analysis, and we then apply the model to the case of an industrial system. We conclude that companies involved in a synergistic system will inevitably be exposed to a higher risk of resource shortage because of the unsteady synergistic and outsourcing flows on which they depend. More efficient stock management methods would prevent the occurrence of the risks often associated with synergistic flows.