Page 36 - CARILEC CE Industry Journal_Oct_2019

Framework for Renewable

Waste-to-Energy (WtE)

- Bjarne Bech, Senior advisor, BWSC

Most societies that landfill waste are looking to modernise So, the investor’s first key question is:
how they handle their waste. Landfilling has many how do we ensure that sufficient amounts
negative issues, the most important being greenhouse gas
emissions which can be a significant portion of the of waste are delivered to the plant?
society’s climate load. Moving from landfilling to
waste-to-energy (WtE) solutions is among the options at Normally this is a ‘carrot and stick’ situation.
the top of the list.
The obvious carrot for waste collectors/suppliers/deliverers
To ensure a successful introduction of WtE solutions, it is would be very low, or even zero, tipping fees. This means
important to have a suitable legal and commercial limited or no tipping fee income to the owner/investor, but it
framework in place, based on a broad understanding of would ensure that waste arrives where it should. The carrot
the WtE business. method is simple, requires little control, but demands that
the other income streams are sufficient to cover costs.
The most common misconception is that WtE is a
low-cost method of supplying renewable power. This, Suppliers of waste will naturally always try to avoid
unfortunately is not the case, WtE is primarily an significant tipping fees, so if the tipping fee is high, then
environmentally sound solution to landfill issues with a ‘stick’ is unfortunately required to make alternatives
electricity as a useful by-product. either unattractive or forbidden. This could take the form
of high taxation on private operation of landfills or
Moving from low technology landfilling to hi-tech WtE exporting waste.
requires significant capital investment, an experienced
power plant builder and a qualified power plant operator Both of these alternatives require reliable control
to manage daily operations and maintenance. Income mechanisms. In relation to private landfill operation
from electricity sales alone cannot offset the overall costs taxes, there must be fiscal controls with weighbridges to
of a WtE programme at normal kW-sales prices. The ensure that the tax is paid, in addition to policing of what
electricity price will either need to be very high or tipping materials are dumped and how pollution is monitored
fees and/or a capacity fee will also be required to provide and prevented.
enough income to cover the costs.
A relevant question in relation to waste amounts is whether
The high capital cost of WtE is often prohibitive for public there is a need for protection against competitors building
institutions to bear alone, especially for island nations. Private a similar facility to compete with lower tipping fees?
investment however, cannot be attracted unless the
conditions supporting the investments are clearly structured, Nobody likes monopolies, but investors need to be certain
legally enforceable and, most importantly, bankable. of the waste supply for at least 10-15 years until their
investment is paid back. So yes, in reality there will have
Clearly, investors need to know how to achieve sufficient to be a monopoly. But like the classic case of a ‘Panama
income to make their investments profitable, which raises Canal alternative’, it is very risky and expensive for a
a number of questions that must be addressed before competitor to step in. While there will be a need for
investment can be considered. guarantees on a minimum supply of waste, a formal
monopoly law may therefore not be required.
Income streams from tipping fees and electricity
production are both directly linked to the amount of waste Another relevant question is whether waste recycling,
received, but electricity production is also directly related that reduce the amount of waste available, should be
to the calorific value (CV) of the waste itself. prohibited?

34 CE INDUSTRY Journal