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Waste to energy plant market


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A growing volume of municipal solid waste, an increasing need to generate energy and stricter legislations are together driving the waste to energy (WTE) plant market globally. Revenues - that at the end of 2012 accounted for $ 19 billion - are expected to reach $ 29 billion by 2016.

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Waste to energy plant market

  1. 1. Global Waste to Energy Plant Market Fuelled by Legislation and Energy Security Increasing Focus to Reduce Landfilling of Waste will Drive Global Waste to Energy Plant Market to reach $ 29 billion by 2016 Monika Chrusciak, Research Analyst, Environmental & Building Technologies © 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. The Analyst Monika Chruściak, Research Analyst Environmental & Building Technologies, Frost & Sullivan Experience in Energy and Environment sector with special focus on: Land-Surface Environmental Protection Sustainable Waste Management Renewable Energy Sources Energy Efficiency . Source: Frost & Sullivan analysis 2
  3. 3. Focus Points 1 Market Size and Forecast until 2016 2 Key Market Challenges and Drivers 3 Municipal Solid Waste Volume until 2016 4 Where to Look for Investments in WTE Market – Regional Hot Spots? 5 Competitive Landscape 6 Conclusion and Recommendation . Source: Frost & Sullivan analysis 3
  4. 4. Global Waste to Energy Plant Market to reach $ 29 billion by 2016 Key Takeaway: The market is expected to grow by $ 11 Billion between now and 2016, where new installations will fuel market growth Revenue of Global WTE Plant Market, 2012 and 2016 CAGR 12.3% • Number of installed WTE plants is expected to increase by nearly 10 percent between 2012 to 2016 resulting in a market size of $ 29 Billion • Modernisation segment is forecast to fuel growth by around 10 percent in 2016 • Operation & Maintenance (O&M) Services are expected to lead stable growth until last study period . Source: Frost & Sullivan analysis 4
  5. 5. Major Drivers The most significant legislative initiatives have been introduced in Europe. This has especially driven growth in the flue gas treatment related opportunities. Majority of plants in established WTE markets of Europe, Japan and North America in need of modernization and upgrade to improve overall plant efficiency. Growth of the MSW generation and a declining landfill capacity in some key regions also leads to growth of the WTE Plant market. WTE plants are not only serving as a waste utilization and disposal solution but as a alternative source of green energy generation. . Source: Frost & Sullivan analysis 5
  6. 6. Major Challenges There continues to be reluctance from certain quarters of society for WTE plants. WTE plants are a relatively expensive technology in terms of investment costs, compared to other waste management processes. The recent economic crisis has dampened project finance and stalled growth in certain market segments. High capacity and extremely low toll gate fees, especially in emerging markets, restrict the incentive for development of WTE plants. Lack of consistent government policies and absence of tangible incentives have further posed key bottlenecks in the growth of the market. . Source: Frost & Sullivan analysis 6
  7. 7. Available Volume of Global Municipal Waste for WTE Set to Reach 1 Billion Tonnes Per Annum by 2016 Generated MSW Volume, Global(2009-2016) . Source: Frost & Sullivan analysis 7
  8. 8. Waste Stream Attractiveness as Energy Carrier Sorted plastic Most attractive waste streams Sewage sludge* Cost ($/ton) Waste tyre Forest residues ELV fluff 3rd generation MSW 2nd generation MSW 1st generation MSW C&D waste Energy density (MJ/kg) * 80% of dry matter . Source: Frost & Sullivan analysis 8
  9. 9. Where to Look for Investments in WTE Market –Hot Spots? Americas Europe MEA APAC Medium High Promising High Waste to Energy on Focus points individual Hot Spots Ageing Fleet Waste to Energy on Focus points individual Hot Spots Ageing Fleet Waste to Energy Focus points on individual Ageing Fleet Hot Spots Waste to Energy Focus points on individual Ageing Fleet Hot Spots Landfill Gate Fees Landfill Gate Fees Landfill Gate Fees Landfill Gate Fees Favorable Policy Favorable Policy Favorable Policy Favorable Policy Resource Recovery Resource Recovery Resource Recovery Resource Recovery Energy Security Energy Security Energy Security Energy Security Key: High High - medium Medium Low . Source: Frost & Sullivan analysis 9
  10. 10. Competitive Landscape of Waste to Energy Plant Market Long global reference list Cooperation with other companies Market Market leaders Expertise in installation and operation Tier 1 leaders Experience in modernization works Hitachi Zosen Inova AG CNIM/Martin GmbH Keppel Seghers Corporation Covanta Holding Corporation Energy Active and ongoing investments Kobelco Eco-Solutions Ltd. Regional reference list Regional Regional Moderate experience in other markets Tier 2 leading leading companies Expertise in most of analysed segments companies Active and ongoing investments Local Local Local reference list Players Participation in consortia and players Tier 3 Emerging Companies Ener gos Ltd. Indaver Group JFE Engineering Corporation Ramboll Group A/S Strabag SE Local energy companies Municipalities . Source: Frost & Sullivan analysis 10
  11. 11. Conclusion 1 Legislation is an important driver for sustained growth of the municipal waste to energy plant market 2 Energy supply infrastructure continues to be a bottleneck in certain geographies 3 Governments need to create transparent, firmed-up policy incentives and consistent road maps for Waste to Energy to re-assure investors and operators 4 Greater collaboration between power producing and waste management companies will strengthen the market structure and business frameworks What are the benefits? Energy generation Green Energy Supply Collaborative Purchase Frameworks Environmental Agency Waste Management Company Waste Quality and Quantity Screening Households 11
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  15. 15. For Additional Information Chiara Carella Head of Corporate Communications Europe, Israel, Africa +44 (0) 207 343 8314 Monika Chrusciak Research Analyst Environmental & Energy Group +48 (0) 22 481 62 35 Fredrick Harry Royan Global Research Director Environment Markets +44 (0) 207 343 8353 Archana Chauhan Research Manager CEE Operations +48 (0) 22 481 62 81 15