Market forces in municipal and industrial waste-to-energy

The market for municipal and industrial waste-to-energy can be characterized simply as currently soft with continued excellent long-term prospects. But as in all markets large and small, niche opportunities exist now which can be profitable with proper definition and strategy. Economics of several projects have proven marginal, cost overruns are common, and revenue projections are sometimes overstates. Also contributing to poorer economics of late are lower prices for the electric power produced from these plants. New environmental restrictions are adding 10-15% to the capital costs of a given project. On the industrial front, the strength of waste-fuel firing continues to be evident for independent power production. Important fuel-niche markets have sprung up over the last decade including petroleum coke, coal-mining wastes, hospital or redbag wastes, biomass, used tires, and so on. Another fuel niche is hazardous waste incineration. In the municipal arena, realism has not yet hit the recycling and source reduction enthusiasts. Only 25-35% recycling is considered practical by experts. There are also limits to how often material can be recycled. Finally, in spite of the best efforts of the population to control the amount of refuse generated and to recycle that which is, population and economic growth may overtake any new sense of environmental responsibility. And, yes, the additional refuse still has to go somewhere exclamation point The best somewhere option continues to be a waste-to-energy plant. Current market opportunities and two other market forces (international activities and the role of US utilities) are discussed