Page 37 - CARILEC CE Industry Journal_Oct_2019

It is against the basic idea of sound utilisation of The third investor key question is:
resources to discourage recycling, and as reality is that how are we covered if there is a significant
recycling is not a very good business unless the tipping
fee/landfill tax is very high, then in practice no laws need change in the CV of the waste?
to be passed to that effect.
The capacity of a plant and the amount of electricity
Passing laws requiring recycling may, however, damage produced per ton of waste are both directly linked to the
the economy of the investment, so such laws should only CV value:
be introduced to the degree that they do not harm the • If the CV increases then the plant capacity in ton/h
economy of the investment. decreases, but the amount of electricity produced
per ton waste increases.
In essence: • If the CV value decreases then the plant capacity
If there is any significant tipping fee, laws are needed in ton/h increases, but the amount of electricity
that ensure that waste is delivered to the plant ensuring produced per ton waste decreases.
that no littering, landfilling, or export of waste occurs.
Whilst a business model can absorb some changes,
The investor’s second key question is: major changes can seriously affect the profitability of an
how do we ensure a sufficient income investment to a degree that cannot realistically be
covered by normal profit margins.
stream from electricity sales?
In essence:
To provide a significant electricity sales income, the kWh The contracting authority will need to take responsibility
price will need to be high, and there must not be for major deviations in the waste’s CV value.
limitations to the WtE capacity or supply.
Utilities and end users will not voluntarily accept The above three key questions are the major issues that
additional capacity and supply at a high price but an investor will need to have clarified and it is probably
receiving a substantial income from electricity sales has nearly impossible to attract commercial investors unless
significant advantages: the framework conditions are giving satisfactory answers
• The electricity consumers are to a high degree the to these questions.
same as waste consumers.
• There is typically a well-functioning and bankable There are many other relevant questions that need
billing system in place. answering, such as but not limited to:
• The income is outside the state budget • Are the waste suppliers and the electricity
• As the electricity supplied from WtE will only be off-takers sufficiently solid as a basis for the
between 5 and 10% of the total early consumption, investment (investment grade)?
paying a high price for electricity supplied from the • Can the produced slag legally be reused as
WtE plant will not create a significant increase in building or road filling material?
the average electricity bill. • What are the emission limits?

In essence: But these questions are only relevant if the main
If significant electricity fees are needed, then laws or framework conditions are in place.
other means (typically the regulator) must ensure that
the fees are set sufficiently high and that all produced
electricity can be delivered.