TNO Insight - A calculation model that stimulates reuse of construction materials | Knowledge Hub | Circle Economy Foundation
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Business case
TNO Insight - A calculation model that stimulates reuse of construction materials
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A calculation model that provides insight into the financial residual value of a construction product. With the advantage that the owner prefers to recycle it circularly for a high-quality application, rather than processing it into low-value raw material. That is the Residual Value Calculator that TNO is developing together with partner C2C ExpoLAB.

Problem

The built environment is responsible for half of all materials used in the Netherlands, and approximately 25 megatons of waste are produced in the construction and demolition sector every year. If we want to reduce our ecological footprint, raw materials, scarcity, and limiting demand must be urgently rethought, notably by keeping products in circulation longer.


Building components such as interior walls represent a residual value at the end of their service life that’s higher than the return on the materials alone. One major issue in the reuse of construction materials is that people are not aware of the value that is still in the product, especially the added value beyond the sheer material value (labour, repair potential etc). As a consequence, many construction materials are not being reused although they offer good opportunities to do so. Destroying the product leads to the loss of that added value.


Even if they are being recycled into new materials, this leads to a loss in value because the work put into the product is lost. For example, interior walls in offices are often destroyed or recycled when the office layout gets changed, although they could be used for multiple years.

Solution

To create a financial incentive that can encourage this transition, TNO developed a residual value calculator. Residual value is the real value of a product at the end of its lifetime and it can be the financial incentive stakeholders need to take responsibility for their products.

The Residual Value Calculator is a calculation model that has been developed to measure the remaining value in materials, which should incentivise reuse or reselling. This happens by giving insight into the financial residual value of building products and elements, such as the inner and outer walls of homes and offices. The calculator was developed with C2C Expolab.


The Residual Value Calculator lets users see at any time what the building products or elements in their property portfolio are still worth. To calculate the residual value after a number of years, the calculation model uses factors such as:

- raw materials price

- quality

- detachability

- transport costs

- maintenance costs

- repair costs


Outcome

The main goal is that this method can be used to change strategies and policies to stimulate the transition to a circular economy. The hope is that this tool will be used by designers and architects to build the cities of the future. A future that has nature at its heart, instead of humanity dominating the natural.

Additional information

Photo by Jan Huber on Unsplash

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