It's not as sexy as wind or solar, but waste-to-energy has been getting more political and environmental attention, particularly in Europe, where it's much farther along than elsewhere.

An important component of integrated waste management strategies, waste-to-energy assists in waste incineration to relieve pressure on landfill and dispose of waste that cannot be recycled. Energy generated is fed either back into the plant itself or into the local grid.

Frost & Sullivan says that the European waste-to-energy plants markets represented a $1.8 billion market in 2005, and estimates this to reach $2.7 billion in 2010.

"Among other factors, landfill legislation and increasing waste volumes are prompting countries to revisit waste management strategies and develop more cost-effective, sustainable solutions," says Frost & Sullivan's Energy and Environment Practice Director John Raspin. "The EU Landfill Directive, which sets targets for the reduction of land-filling of biodegradable municipal waste (BMW) represents tremendous growth potential. This Directive, coupled with the short supply of new landfill void space in Europe, is driving alternative waste disposal strategies including waste-to-energy."

Increased production of refuse derived fuel (RDF) in countries such as Germany and shortfall in the capacity for disposing such pre-treated waste will create greater need for new waste-to-energy plants.

Currently, over 400 waste-to-energy plants in Europe process about 50 million tonnes of municipal solid waste per year. However, as a result of the Landfill Directive, this number is likely to increase and over 100 plants or lines are expected to be installed by 2012.

A model of waste-to-energy is the City of Amsterdam's Waste and Energy Company, which, for the better part of 100 years, has been turning virtually all of the city's waste into recycled-grade metal, gypsum and salt. The process uses some 30 innovations, all developed in-house.

"We're able to take 99% of the city's waste and incinerate it with virtually zero discharge," said Jan van der Meulen, Deputy Director of the Directorate for City Counseling of the City of Amsterdam. He introduced the Waste and Energy Company's capabilities today to attendees at the International Sustainable Energy Forum in San Francisco.

Despite the apparent benefits of waste-to-energy technology, it's met with public opposition from environmental groups and local communities over the safety of waste incineration. This has hindered the implementation of new projects. Vendors insist the technology is safe. Others aren't so sure.

"The effects of emission on public health, increase in traffic and pollution associated with transporting waste for incineration are key concerns likely to hamper market expansion," says Raspin. "While the markets offer opportunities through high-value capital-intensive contracts and operational revenues, risks of project cancellation pose a significant challenge."

In view of long waiting periods involved in project planning and the risks of project cancellation, waste-to-energy suppliers will need to work closely with local communities and municipalities to promote projects. With the rise in competition, the markets are witnessing an increasing number of mergers and acquisitions and competition is set to intensify.

However, significant opportunities exist, say Frost & Sullivan, for companies that can target and explore specific areas of growth. Strengthening product and financial positioning through consolidation, enhancing brand name and customer services, as well as meeting environmental demands of legislations and customers are some of the key factors that will influence market success.

For more information:

Amsterdam Waste and Energy Company [1]