Summary:
Industrial symbiosis involves transforming one company's waste, energy or unused materials into resources for another, within a circular economy framework. For procurement departments, these dynamics offer concrete levers for optimising resources and costs. Buyers have a key role to play in identifying partners, structuring flows and managing these collaborations.
Table of contents:
- What is industrial symbiosis?
- How does industrial symbiosis emerge?
- Industrial symbiosis: the Kalundborg example
- What is the role of procurement in industrial symbiosis?
In a world of limited resources, the circular economy is emerging as an essential pathway to reconcile economic performance and sustainability. At the heart of this model lies industrial symbiosis, also known as industrial ecology. It describes intercompany synergies to optimise resource use, reduce waste and strengthen territorial resilience. This model paves the way for more sustainable, more profitable and more responsible production.
What is industrial symbiosis?
Industrial symbiosis refers to an organisational mode between companies that exchange and/or pool their flows (materials, energy, water, waste, services, etc.). This is inspired by how natural ecosystems function, where every resource, even residual, finds a use for another organism.
Sabrina de Gobbi, economist at the International Labour Organisation, explains: "Industrial symbiosis is a form of circular economy centred on the company. According to this model, one company's waste or by-products can contribute to another company's production system, all with mutual benefits."
Contrary to common belief, industrial symbiosis is not reserved for heavy industry. Companies in the tertiary sector can also pool infrastructure, equipment or services.
This collaborative approach presents multiple benefits. Firstly, it reduces pressure on natural resources as well as greenhouse gas emissions. It also generates a direct economic impact: production costs and waste management expenditures are reduced, paving the way for business models based on valorisation rather than elimination. Lastly, industrial symbiosis contributes to building more resilient and more competitive ecosystems.
How does industrial symbiosis emerge?
There are three main models that lead to the creation of industrial symbiosis networks: self-organisation, facilitation and planning.
Self-organisation
In this first model, companies collaborate spontaneously to reduce their costs, increase their revenues or develop their activities. Initially, they are not always aware of the symbiotic nature of their exchanges, as this develops naturally over time. Often, these approaches are initiated by one company, which associates other companies throughout its value chain.
Facilitation
In this second model, a third party (collective, association, etc.) brings together voluntary companies interested in the project. They provide the experience, knowledge and contacts needed to initiate such an approach.
Planning
In the third model, external stakeholders identify the companies. They play a central role: they define objectives, structure industrial symbiosis networks and participate in decision-making. Government policies are often at the origin of this type of project.
Industrial symbiosis: the Kalundborg example
The very first industrial symbiosis was born in Kalundborg, Denmark. This dynamic developed naturally in the 1960s. The companies located in this industrial park wanted to reduce their waste by finding alternative uses that would generate profit.
It started with six industrial partners and one public stakeholder. All these stakeholders were located a few hundred metres from each other and were connected by a network of pipelines. Today, 17 partners exchange up to 34 flows, ranging from steam to biomass, including wastewater, sand, sulphur and used lubricating oil.
This system saves each year:
- £21 million;
- 635,000 tonnes of greenhouse gas emissions;
- 3.6 million m³ of water;
- 100 GWh of energy;
- 87,000 tonnes of materials.
Today, there are multiple examples of industrial symbiosis: the Styria region in Austria, the Ulsan Eco-Industrial Park in South Korea and the Humber industrial cluster in the United Kingdom.
An example of a simple and bilateral symbiosis
In the circular economy, we believe in the strategy of small steps. Companies can hold high ambitions whilst initiating progressive and accessible approaches. This relies on simple, rapid and quantifiable actions.
The partnership between Manutan Group and Sical Creil, one of its cardboard suppliers, is an example. The two partners have set up a system for collecting and reusing wooden caps used to stabilise pallets. These elements, previously recycled by Manutan, are now reused by Sical Creil to deliver new orders. This direct flow, with no additional transport thanks to optimised return journeys, transforms this waste into resources.
What is the role of procurement in industrial symbiosis?
The procurement function plays a key role in developing the circular economy. And this is just as true for developing industrial symbiosis networks.
Procurement departments can conduct internal reflections around analysing the value chain to initiate such approaches, in line with the company's strategy. With their in-depth knowledge of the regional ecosystem, they can explore the potential flows for valorisation or pooling.
This is what Anne Brenady, environment and circular economy manager at AFNOR (French Standardization Association), emphasises: "It consists of ensuring that its outgoing flows become the incoming flows of a neighbouring stakeholder. Industrial symbiosis can apply to different materials, energy and waste. We can also consider pooling collection means. In all cases, the company will need buyers to source and identify the partners involved in pooling these flows and to find outlets."
Once opportunities are identified, procurement will also structure the approach. They will be responsible for orchestrating relationships, negotiating contracts, then ensuring their proper execution. It also is up to them to set up a monitoring and evaluation system, with the right key performance indicators, to adopt a continuous improvement approach.
Industrial symbiosis thus creates economic, social and environmental value. As for procurement, it is ideally positioned to initiate, structure and manage these approaches. Consequently, they become genuine catalysts for circular innovation.
Going further in the circular economy
Manutan Group supports companies in their circular approach. We offer a range of refurbished products as well as collection and valorisation services for old equipment (available in Belgium, France and Netherlands, under conditions in Italy and on request in Denmark, Sweden, Finland, Norway and United Kingdom, as of content publication date), but also rental and reconditioning as a service.
