Waste-to-Energy (WtE) Market

Waste-to-Energy (WtE) Market Outlook

The Waste-to-Energy (WtE) Market is valued at USD 38.9 Bn in 2026 and is projected to reach USD 50.2 Bn, growing at a CAGR of 4% by 2033.

Waste-to-energy Market Rises High as World Seeks Fuel Alternatives for Generating Electricity

Worldwide demand for energy is increasing despite excess depletion of oil and gas reserves. Waste-to-energy (WtE) technology provides a secondary route for energy generation.  It is a process in which energy is generated from the treatment of waste, thus turning waste into a source of power generation. It is thus being touted as an effective means of energy recovery from waste. According to the World Bank estimates, the world’s waste generation is projected to nearly double in volume by 2025 and reach 6 million tons of waste per day. Several countries are opting for alternate sources of energy due to restricted land filling, growing environmental issues, and high volatility in fuel prices. Waste-to-energy not only solves environmental problems related to waste by reducing the volume but also decreases the greenhouse gas emissions in the long run. The potential to make the waste useful will boost the growth of waste-to-energy market in the coming years.

Stringent MSW Management Regulations to Drive Electricity Generation Through Alternate Routes, Boosting Waste-to-energy Market Growth

The key factors such as rising investments in renewable energy, the Paris Climate Change Agreement, and growing concerns regarding disposal of waste ecologically are expected to drive the waste-to-energy market across the globe. Government subsidies and environmental regulations in Europe, Asia Pacific, and North America are projected to help entrants to establish themselves in the waste-to-energy market. A major restraint facing the waste-to-energy market is the initial high capital cost. According to the Waste to Energy Research and Technology Council (WtERT), a plant with a capacity to process a thousand tons of waste every day can cost between US$110 Mn to US$140 Mn to begin with. Furthermore, natural gas is positioned as a substitute for renewable gases due to its lower cost. This pricing and positioning have been identified as a threat to the waste-to-energy market. In addition, it also a challenge to other external substitutions of energy generation alternatives such as wind, solar, and geothermal. Moreover, various countries and regions are investing in renewable sources of energy other than waste-to-energy plants.

In recent years, increased waste generation, and consistently narrowing prospects of landfills have crafted a strong growth outlook for the waste-to-energy market. Not only is the world population growing but it is also becoming increasingly urbanised. This leads to greater levels of waste being generated globally in more concentrated levels and in closer proximity to large urban areas. These issues have brought attention on waste management frameworks, with increased interest in alternatives to landfill. As a result, municipalities worldwide are considering the functionality of waste to energy plants to help deal with mounting waste being generated. Growing adoption of WtE technology as a route of energy recovery from municipal solid waste will serve as the key opportunity for the development of waste-to-energy facilities across the globe.

Thermal Conversion Stands out Among Other WtE Technologies in Waste-to-energy Market, Biological Conversion Sought-after

In terms of technology, the global WtE market is segregated into thermal, and biological. Thermal segment is further broken into incineration, pyrolysis, and gasification. In 2021, the thermal segment dominated the global waste-to-energy market and constituted more than 75% share in 2021. Incineration (more than 65% share) is an extensively adopted process due to its ability to reduce the volume of waste to about 90% and weight by approximately 75% percent of the original waste, thus reducing the amount of waste in landfills. The bottom ash produced from incineration plants is used by construction companies, which, in turn, reduces the burden on landfills. Currently, incineration is the only waste-to-energy technology that is economically viable and operationally feasible at a commercial scale. Heat recovered from the incineration process can be further used either for direct water and space heating purposes or to power turbines for the generation of electricity.

Electricity Generation Remains the Prime Segment by Application in Waste-to-energy Market

In terms of application, the global waste-to-energy market is segmented into electricity generation, steam exports, and combined heat & power (CHP). Generation of electricity through waste remains one of the major applications of the waste-to-energy technology. In 2021, electricity generation dominated the waste-to-energy market and constituted more than 60% share by value. Producing electricity is only one reason to burn MSW. Burning waste also reduces the amount of material that would probably be buried in landfills. Burning MSW reduces the volume of waste by about 87%. Steam or heat generated from burning of waste in WtE plants are utilized for in-house operations such as heating needs or are exported via pipeline to power plants which utilizes the steam/heat for heating the boiler. Combined heat and power (CHP) plants recover otherwise wasted thermal energy for heating. This is also called combined heat and power district heating.

Asia Pacific Leads Global Waste-to-Energy Market in Terms of Installed Capacity

Globally, more than 360 MTPA capacity of waste-to-energy facilities were operational in 2021 with more than 1,000 active waste-to-energy plants. However, data indicates that Asia Pacific dominates the waste-to-energy market in terms of installed capacity of waste-to-energy plants, followed by Europe that houses a noteworthy number of waste-to-energy projects. In 2021, Asia Pacific accounted for a large share of 54.4% in the global waste-to-energy market. China, Japan, South Korea, and Australia are the major markets in Asia Pacific in terms of waste-to-energy facilities. In India, the Ministry of New and Renewable Energy, is implementing a programme to provide subsidy of around US$310 thousand per MW (maximum US$1.55 Mn per project) for five new MSW waste-to-energy plants. Globally, China accounts for 30% of the waste-to-energy market in terms of installed capacities of WtE facilities. In addition, China has laid down an ambitious sustainable waste treatment and landfill avoidance goals. Its 13th Five-Year Plan calls for approximately 600,000 tonnes per day of energy from waste (EfW) capacity by the end of 2020. Considering these policies, over 200 new EfW facilities are expected to be built in China between 2020 and 2030. This is expected to benefit the demand for WtE in Asia Pacific.

The global waste-to-energy market forecast reveals that North America holds the huge potential for waste-to-energy market. The US is the leading country in North America in terms of waste-to-energy plant installations. The number of countries accepting the Paris Climate Change Agreement has been increasing significantly across the globe. This agreement enforces countries to increase the share of renewable sources of energy in their total power generation, thereby providing ample of opportunities for the adoption of the waste-to-energy technology. The goals of the European climate and energy policy of creating an energy system are characterized by less dependence on fossil fuels. This creates a stronger market pull for waste-to-energy technology, especially to produce biogas, and biofuels.

Global Waste-to-Energy (WtE) Market: Competitive Landscape

Key players involved in waste-to-energy market are Covanta Energy Corporation, Veolia, Seuz Environment, Hitachi Zosen Inova, Sembcorp Industries, Ramboll Group, Viridor, Wheelabrator Technologies Inc., Babcock & Wilcox Enterprises, Inc., AVR, and China Everbright Environment Group Limited.

In August 2022, Covanta announced that the Covanta Fairfax Waste-to-Energy facility recently completed planned enhancements to its state-of-the-art pollution control technology aimed at further reducing nitrogen oxide (NOx) emissions, thereby helping to further protect the environment. On September 2022, SUEZ and its partners complete the acquisition of EnviroServ, South Africa’s largest waste management company.

The Global Waste-to-Energy (WtE) Market is Segmented as Below:

By Technology Coverage

• Thermal
  • Incineration
  • Pyrolysis
  • Gasification
• Biological

By Application Coverage

• Electricity Generation
• Steam Exports
• Combined Heat & Power (CHP)

By Geographical Coverage

• North America
• Europe
• Asia Pacific
• Rest of the World (RoW)

Leading Companies

• Veolia
• Covanta Energy Corporation
• Seuz
• Sembcorp Industries
• China Everbright Environment Group Limited
• AVR
• EQT AB
• Wheelabrator Technologies Inc.
• Hitachi Zosen Inova AG
• Babcock & Wilcox Enterprises, Inc.
• Viridor
• Ramboll Group