Energy Transition Handbook - Flipbook - Page 29
Energy Transition Handbook 2021
29
Energy from Waste (EfW)
The global energy from waste market is poised to grow by USD 12.26 billion during
2020-2024. The market is driven by increasing urbanization and the rising popularity of
integrated waste management systems.
Energy from waste plants turn waste into a useable
form of energy, including electricity, heat and
transport fuels (e.g. biodiesel). This can be done in
a range of ways, of which, incineration is the most
well-known. EfW plants have an important role to
play in reducing both the amount of waste sent to
landfill and greenhouse gas emissions. They can
also play a role in helping to deliver zero carbon
buildings, as a source of heat and electricity and
particularly when connected to distributed energy
networks. Generally, EfW plants use residual
waste, being waste which cannot be recycled, and
this produces a partially renewable energy source,
sometimes referred to as a low carbon energy
source. As a partially renewable energy source it
contributes to renewable energy targets and it has
the added advantage that it is non-intermittent, so
it can complement other renewable energy sources
such as wind or solar.
Key issues:
•
waste supply risk
•
waste composition and calorific value
•
economic incentives to divert waste from
landfill, such as landfill taxes
•
technology risk
•
municipal covenant risk
•
planning and permitting issues
•
change in law risk
•
contamination
Case studies
Hogan Lovells advised Covanta, Green Investment
Group Limited (GIG) and Veolia on the successful
completion of the Rookery South Energy Recovery
Facility, a deal involving the construction and
operation of a 60 megawatt energy from waste
facility in Bedfordshire. When operational the
plant will have the capacity to treat up to 545,000
metric tons of municipal, household, and business
waste per year, generating over 60 megawatts of
electricity which will be sold into the grid on a
merchant basis, powering the equivalent of over
112,500 homes.
Hogan Lovells advised International
Finance Corporation (IFC) on a a landmark
project to design, build and operate a 103
MW energy- from- waste facility in Serbia.
The facility will generate electricity for the
national grid and heat for Belgrade’s municipal
district heating company. The project also involves
cleaning up one of Europe’s largest landfills
and constructing a new EU-compliant sanitary
landfill, which will form part of a sustainable
waste-management complex designed to reduce
pollution and mitigate climate change. It will be
delivered under a long-term contract awarded to
Beo ista Energija d.o.o., a company formed by
global utility company Suez S.A., the Japanese
conglomerate Itochu Corporation, and Marguerite
Fund II, a pan-European equity fund. €300
million of non-recourse, project finance debt is
being provided by IFC, the European Bank for
Reconstruction and Development (EBRD) and
the Development Bank of Austria (OeEB).