waste to energy plant market
DESCRIPTION
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.TRANSCRIPT
Global Waste to Energy Plant Market Fuelled Global Waste to Energy Plant Market Fuelled by Legislation and Energy Securityby Legislation and Energy Security
Increasing Focus to Reduce Increasing Focus to Reduce LandfillingLandfilling of Waste will Drive Global of Waste will Drive Global Waste to Energy Plant Market to reach $ 29 billion by 2016 Waste to Energy Plant Market to reach $ 29 billion by 2016
Monika Chrusciak,
Research Analyst,
Environmental & Building Technologies
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The Analyst
Monika Chruściak, Research Analyst
Environmental & Building Technologies, Frost & Sullivan
2
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
Focus Points
1 Market Size and Forecast until 2016
2
3
Key Market Challenges and Drivers
Municipal Solid Waste Volume until 2016
3
Conclusion and Recommendation6
Where to Look for Investments in WTE Market – Regional Hot Spots?
5 Competitive Landscape
4
. Source: Frost & Sullivan analysis
Global Waste to Energy Plant Market to reach $ 29 billion by 2016
Revenue of Global WTE Plant Market, 2012 and 2016
CAGR12.3%
Key Takeaway: The market is expected to grow by $ 11 Billion between now and 2016, where new installations will fuel market growth
• 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
4
. Source: Frost & Sullivan analysis
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
Major Drivers
5
The most significantlegislative initiatives havebeen introduced in Europe.This has especially drivengrowth in the flue gastreatment relatedopportunities.
Majority of plants inestablished WTE marketsof Europe, Japan and NorthAmerica in need ofmodernization and upgradeto improve overall plantefficiency.
Growth of the MSWgeneration and a declininglandfill capacity in somekey regions also leads togrowth of the WTE Plantmarket.
WTE plants are not onlyserving as a wasteutilization and disposalsolution but as a alternativesource of green energygeneration.
. Source: Frost & Sullivan analysis
Major Challenges
6
High capacity andextremely low toll gatefees, especially in emergingmarkets, restrict theincentive for developmentof WTE plants.
Lack of consistentgovernment policies andabsence of tangibleincentives have furtherposed key bottlenecks inthe growth of the market.
WTE plants are a relativelyexpensive technology interms of investment costs,compared to other wastemanagement processes.The recent economic crisishas dampened projectfinance and stalled growthin certain market segments.
There continues to bereluctance from certainquarters of society for WTEplants.
. Source: Frost & Sullivan analysis
Available Volume of Global Municipal Waste for WTE Set to Reach 1 Billion Tonnes Per Annum by 2016
Generated MSW Volume, Global(2009-2016)
7
. Source: Frost & Sullivan analysis
Waste Stream Attractiveness as Energy CarrierC
ost
($/t
on
) 3rd generation MSW
Waste tyre
Forest residues
Sewage sludge*
Sorted plastic
Most attractive waste streams
8
Co
st
($/t
on
)
Energy density (MJ/kg)
2nd generation MSW
1st generation MSW
MSWresidues
* 80% of dry matter
C&Dwaste
ELV fluff
. Source: Frost & Sullivan analysis
Where to Look for Investments in WTE Market –Hot Spots?
Europe MEA APACAmericas
9
HighKey: High - medium Medium Low. Source: Frost & Sullivan analysis
Focus points on individual Hot Spots
Europe
Waste to Energy
Ageing Fleet
Landfill Gate Fees
Favorable Policy
Resource Recovery
Energy Security
High
Focus points on individual Hot Spots
MEA
Promising
Waste to Energy
Ageing Fleet
Landfill Gate Fees
Favorable Policy
Resource Recovery
Energy Security
Focus points on individual Hot Spots
APAC
High
Waste to Energy
Ageing Fleet
Landfill Gate Fees
Favorable Policy
Resource Recovery
Energy Security
Focus points on individual Hot Spots
Americas
Waste to Energy
Ageing Fleet
Landfill Gate Fees
Favorable Policy
Resource Recovery
Energy Security
Medium
Competitive Landscape of Waste to Energy Plant Market
Market leaders
Kobelco Eco-Solutions Ltd.
Ener gos Ltd.
Indaver Group
Hitachi Zosen Inova AG
CNIM/Martin GmbH
Keppel Seghers Corporation
Covanta Holding Corporation
Energy
Regional reference list
Long global reference list
Cooperation with other companies
Expertise in installation and operation
Experience in modernization works
Active and ongoing investments
Tier 1
Regional
Market leaders
10
Regional leading companies
Local players
Local energy companies
Municipalities
Indaver Group
JFE Engineering Corporation
Ramboll Group A/S
Strabag SE
Moderate experience in other markets
Expertise in most of analysed segments
Active and ongoing investments
Local reference list
Participation in consortia
Tier 2
Tier 3
Regional leading companies
Local Playersand Emerging Companies
. Source: Frost & Sullivan analysis
Conclusion
1
Energy supply infrastructure continues to be a bottleneck in certain geographies2
Legislation is an important driver for sustained growth of the municipal waste to energy plantmarket
3Governments need to create transparent, firmed-up policy incentives and consistent road maps for Waste to Energy to re-assure investors and operators
4Greater collaboration between power producing and waste management companies will strengthen the market structure and business frameworks
11
Energy generationWaste Management
Company
Households
Collaborative Purchase Frameworks
Waste Quality and Quantity Screening
Green Energy Supply
What are the benefits?
Environmental Agency
Next Steps
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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
15
Fredrick Harry Royan
Global Research Director
Environment Markets
+44 (0) 207 343 8353
Archana Chauhan
Research Manager
CEE Operations
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