Waste-to-energy market soars as report reveals it could grow to $33 Billion by 2023
Some of the best utility-based stocks to buy right now are in the waste-to-energy market and it appears the juggernaut won’t be stopping for some time yet.
The market was valued at $20.86 billion (US) in 2015, and that figure is expected to rocket to around $33 billion by 2023 according to the latest analysis by Global Market Insights.
Part of the reason for the market’s success is that it’s good PR for governments and public bodies to adopt more ecologically-sound means of disposing of their waste. The experts at GSI believe that will drive a continued global growth in the market.
Thermal-based technologies have constituted a sizeable portion of the market’s revenue, and an incineration process based on thermal technology has been widely employed, and those alone could grow to $29 billion over the forecast period.
Europe is leading the way in terms of energy-from-waste market size, with major operating plants in Germany, France and UK and they comprised almost half (47%) of the total revenue share in 2015.
The European Union’s forceful approach in ensuring greenhouse gas emissions from landfills are kept to a minimum may be a factor in why Europe is so keen on the energy-from-waste market. The EU’s Renewable Energy Directive has set a binding target to use 20% of energy derived from renewable sources by 2020 and so that has probably accelerated the growth in the European market.
China, India, Indonesia and Brazil are expected to generate significant amount of municipal solid waste in the coming years so and the report says governments in those are considering investing in waste disposal and treatment techniques and are funding projects based on Public Private Partnerships.
In some communities, waste-to-energy projects are making a huge difference. Take the metropolitan city of Vantaa in Finland as an example, where the local authority has been able to slash district heating prices for residents thanks to cost savings from its waste incinerator.
The plant there currently produces almost half of the energy the city needs every year and since opening in 2014, it has burned over a million tonnes of waste.
Lassi Kortelainen, district heating service director at Vantaa Energy, told Uutiset: “We have achieved a 95-percent efficiency rate, in other words, almost all of the energy we produce is utilised as district heating and electricity.
“We were able to offer basic district heating to our customers in November and December free of charge.
“Overall, we've reached a ten percent reduction in energy charges.”
Good news for the people of Vantaa and yet more proof that waste-to-energy is here to stay.
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.