A Rising Mountain of Urban Waste to Boost the Waste to Energy Plant Market

European Waste-to-Energy Plant Market – European Waste-to-Energy Plant Market – Rapid Growth Fuelled by Legislative Driver Rapid Growth Fuelled by Legislative Driver

Monika Chrusciak, Research Analyst Energy & Environment

March 6, 2013

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Today’s Presenter

Expertise in:

Monitoring and analyzing emerging trends, technologies and dynamics in the waste management market

Industry Expertise:

Waste management

Renewable sources – biomass use

Energy efficiency

Career Highlights:

Junior project specialist in STENA Recycling

Research assistant in Polish National Energy Conservation Agency

Research assistant in SINTEF Global Praxis

Monika Chrusciak, Research Analyst, Energy & Environment, Frost & Sullivan

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Focus Points

Key Market Forces

WTE Market Overview

Market Size and Forecast until 2016

Where to Look for Investments in WTE Market – Regional Hot Spots?

Conclusions

Market Segmentation

1

7

6

2

3

5

4

Competitive Landscape in Europe

Source: Frost & Sullivan analysis

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Briefing Objectives

Identify

Understand

Discover

Current position of the thermal WTE plant market in Europe

Technology options currently available, and how they would develop in the future

Country markets leaders in Europe and future trend during 2013–2016Current competitive landscape of WTE plant market

Future revenue trends of WTE segments


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Overview of the WTE Plant Market in Europe - 1

35.0%

25.0%

15.0%

18.0%

7.0%

Landfilling RecyclingComposting Energy RecoveryOther

Generated 265 Mton of MSW

Key Takeaway: Landfilling is expected to remain the dominating solution for MSW waste management in Europe till 2016

Key Takeaway: Landfilling is expected to remain the dominating solution for MSW waste management in Europe till 2016

Waste Management in 2012 Trend of MSW Landfilling in 2012

Landfilling share decline by 3 percent

In WTE plants used 15

percent of MSW

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.

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Overview of the WTE Plant Market in Europe - 2

Number of WTE plants in Europe:

> 100 50 - 100 < 1010 - 50

Key Takeaway: Thermal WTE plants are combining energy security and modern waste management approach

Key Takeaway: Thermal WTE plants are combining energy security and modern waste management approach

European WTE plants generated over 90 TWh of energy in 2012

In 2012 over 40 Mtons of MSW material were incinerated in 480 WTE plants

Currently France is leading WTE market with highest number of installed plants

In 2012 less than 10 WTE units were installed In Poland and CEE

2012 generated 265 Mtons of MSW, where over 93 Mtons were landfilled

2013 introduced legal ban on landfilling of organic and high calorific value

material


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Market Segmentation

Geographic Coverage

Europe

Waste to Energy Plant Segment

Waste Separation *

Incineration

Air pollution cleaning *

Time Line

2009–2016(2012 base year)

Grate

Fluidised bed

Sub-segmentation

Gasification

Waste

Municipal Solid Waste

Waste from household source

Western and Eastern Europe

Maximum performance efficiency of WTE plant is

obtained by combined work of all segments

Grate technology is leading incineration solution in

Europe

Household source


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Market Size and Forecast Until 2016

Revenue of WTE Plant Market in Europe, 2012 and 2016

Key Takeaway: 2016 market is expected to grow by $ 0.7 billion, where incineration segment is leading with over three quarters of market share

Key Takeaway: 2016 market is expected to grow by $ 0.7 billion, where incineration segment is leading with over three quarters of market share

2016 Air Pollution Cleaning Segment is expected to grow its market revenue as a result of strict legal environmental obligations

Rev

enu

e ($

Bil

lio

n)

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.

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Where to Look for Investments in WTE Market – Regional Hot Spots?

Key Takeaway: It is expected that in 2016 the U.K. and Ireland will be the most developed market in terms of growth of new installations

Key Takeaway: It is expected that in 2016 the U.K. and Ireland will be the most developed market in terms of growth of new installations

U.K and Ireland

Benelux

Italy

Poland

Others

Country Short term Long term

> 25 20 - 25 < 1020 - 10

Trend:Trend:GrowthGrowth StableStable DeclineDecline

Alpine States

U.K. and Ireland is currently dominating WTE plant market with the highest revenue shares

Market Revenue Share in Percentage, 2012: Revenue by Market Regions, Trend Till 2016:

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Tight Co-operation in WTE Plant Business in Europe

Collection Companies Recycling Centres

Co-operation with Recycling

centres

Quality assurance

during collection

High Value Material

Energy Distribution

Energy Distribution

Hazardous Waste

Fly Ash

Agreement on Energy

Supply

Fly ash management

O&M companies


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Competitive Landscape in Europe from 2009 to 2012

High competition

Uncertainty of investment

Euro Crisis

Market Factors

Ways to Overcome the Market Factors?

Unusual Business Strategy

Consortia Creation in New Tenders

Co-operation with Companies

Investments in Asia Pacific

High Plant Efficiency Performance

Low Pollution Generation

Smart Feedstock Solutions

Outsourcing Services

Consortia formation

EU funding and Government Support

Loan Share

Long Term Agreements

Market leaders

Unusual Business Strategy

Overcoming Uncertainty of Investments

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Key Market Forces

European Union legislation and country specific regulations

European Union legislation and country specific regulations

Ageing WTE fleetAgeing WTE fleet

Growing volumes of MSW and limited landfill space

Growing volumes of MSW and limited landfill space

Progressive business modelsProgressive business models

Early stage in development of pyrolysis technology

Early stage in development of pyrolysis technology

High initial investment costHigh initial investment cost

Social reluctance towards MSW incineration facilities

Social reluctance towards MSW incineration facilities

European Trends Impacting WTE Plant Market

DriversRestrains

Energy securityEnergy security


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Conclusions - 1

Grate technology is forecasted to remain the leading WTE plant solution

Capacity of WTE plants is not covered by incinerated feedstock material

Holistic approach is increasing its influence in WTE plants solutions

Modern WTE plants are co-operating with waste management centres

Ageing fleet is creating promising investment opportunities

Ash treatment technologies are expected to gain more interest until 2016

Future WTE plants are becoming innovative architectural buildings


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Low Value MSW

WTE Plant

Landfill site

vs.

< 20 years of operation

> 30 years of active operation

?

Mixed MSW

High Value MSW

Conclusions - 2


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For Additional Information

Chiara CarellaHead of Corporate CommunicationsEurope, Israel, Africa+44 (0) 207 343 [email protected]

Monika ChrusciakResearch AnalystEnvironmental & Energy Group+48 (0) 22 481 62 [email protected]

Fredrick Harry RoyanGlobal Research DirectorEnvironment (Water) Markets+44 (0) 207 343 [email protected]

Archana ChauhanResearch ManagerCEE Operations+48 (0) 22 481 62 [email protected]

A Rising Mountain of Urban Waste to Boost the Waste to Energy Plant Market

Technology

Transcript of A Rising Mountain of Urban Waste to Boost the Waste to Energy Plant Market