A recent report from Pike Research forecasts that global revenues from WTE systems will experience strong growth over the next five years, more than tripling in size from $4.2 billion in 2011 to almost $13.6 billion by 2016.
“Waste collected in cities contains a large amount of biological and renewable materials, and it is therefore an important source of renewable energy,” says Pike Research President, Clint Wheelock. “As a consequence, energy-from-waste contributes to energy security and diversification, and matches the growing demand for renewable energy in a carbon constrained world.”
Wheelock adds that policies, regulations, and changing economic conditions are driving the growth of WTE capacity worldwide, creating attractive business opportunities for providers of WTE technologies and related components. Combustion is the primary technology today and is entrenched in the market, yet advanced thermal treatment (ATT) technologies such as plasma arc gasification are now emerging. Moreover, Pike Research’s analysis finds that biological technologies for treating waste offer an attractive alternative to thermal treating methods.
The WTE technology market offers opportunities for turnkey plant and key equipment suppliers, service companies that provide plant operations and maintenance, and engineering companies. Yet, the barriers to enter the turnkey business are substantial. Strong balance sheets to capture high capital-intensive projects and sustain long sales cycles, very reliable technologies and long-standing track records, and in-depth knowledge of market constraints are prerequisites to successfully operate in the market. A handful of specialist companies per region have these capabilities. The market is less constrained for key equipment categories such as air pollution control (APC), and this is also the case in the biological treatment market, where the capacities and the capital requirements of the projects are smaller.
Pike Research’s study, “Waste-to-Energy Technology Markets”, analyses the global market opportunity for waste-to-energy technologies as a means of generating electricity and heat from municipal solid waste. The study includes a comprehensive examination of economic and market drivers, existing and emerging technology options for WTE, the public policy and regulatory environment, and key industry players.
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