Trends in Global Waste to Energy Market

Waste-to-Energy is the use of modern combustion and biochemical technologies to recover energy, usually in the form of electricity and steam, from urban wastes. These new technologies can reduce the volume of the original waste by 90%, depending upon composition and use of outputs. The main categories of waste-to-energy technologies are physical technologies, which process waste to make it more useful as fuel; thermal technologies, which can yield heat, fuel oil, or syngas from both organic and inorganic wastes; and biological technologies, in which bacterial fermentation is used to digest organic wastes to yield fuel.

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The global market for waste-to-energy technologies was valued at US$6.2bn in 2012 which is  forecasted to increase to US$29.2bn by 2022. While the biological WTE segment is expected to grow more rapidly from US$1.4bn in 2008 to approximately US$2.5bn in 2014, the thermal WTE segment is estimated to constitute the vast bulk of the entire industry’s worth. This segment was valued at US$18.5bn in 2008 and is forecasted to expand to US$23.7bn in 2014.

The global market for waste to energy technologies has shown substantial growth over the last five years, increasing from $4.83 billion in 2006, to $7.08 billion in 2010 with continued market growth through the global economic downturn. Over the coming decade, growth trends are expected to continue, led by expansion in the US, European, Chinese, and Indian markets.

By 2021, based on continued growth in Asian markets combined with the maturation of European waste management regulations and European and US climate mitigation strategies, the annual global market for waste to energy technologies will exceed $27 billion, for all technologies combined.

Asia-Pacific’s waste-to-energy market will post substantial growth by 2015, as more countries view the technology as a sustainable alternative to landfills for disposing waste while generating clean energy. In its new report, Frost & Sullivan said the industry could grow at a compound annual rate of 6.7 percent for thermal waste-to-energy and 9.7 percent for biological waste-to-energy from 2008 to 2015.

The WTE market in Europe is forecasted to expand at an exponential rate and will continue to do so for at least the next 10 years. The continent’s WTE capacity is projected to increase by around 13 million tonnes, with almost 100 new WTE facilities to come online by 2012. In 2008, the WTE market in Europe consisted of approximately 250 players due in large to the use of bulky and expensive centralized WTE facilities, scattered throughout Western Europe.

An Introduction to Biomethane

Biogas that has been upgraded by removing hydrogen sulphide, carbon dioxide and moisture is known as biomethane. Biomethane is less corrosive than biogas, apart from being more valuable as a vehicle fuel. The typical composition of raw biogas does not meet the minimum CNG fuel specifications. In particular, the COand sulfur content in raw biogas is too high for it to be used as vehicle fuel without additional processing.

biogas-vehicle

Liquified Biomethane

Biomethane can be liquefied, creating a product known as liquefied biomethane (LBM). Biomethane is stored for future use, usually either as liquefied biomethane or compressed biomethane (CBM) or  since its production typically exceeds immediate on-site demand.

Two of the main advantages of LBM are that it can be transported relatively easily and it can be dispensed to either LNG vehicles or CNG vehicles. Liquid biomethane is transported in the same manner as LNG, that is, via insulated tanker trucks designed for transportation of cryogenic liquids.

Compressed Biomethane

Biomethane can be stored as CBM to save space. The gas is stored in steel cylinders such as those typically used for storage of other commercial gases. Storage facilities must be adequately fitted with safety devices such as rupture disks and pressure relief valves.

The cost of compressing gas to high pressures between 2,000 and 5,000 psi is much greater than the cost of compressing gas for medium-pressure storage. Because of these high costs, the biogas is typically upgraded to biomethane prior to compression.

Applications of Biomethane

The utilization of biomethane as a source of energy is a crucial step toward a sustainable energy supply. Biomethane is more flexible in its application than other renewable sources of energy. Its ability to be injected directly into the existing natural gas grid allows for energy-efficient and cost-effective transport. This allows gas grid operators to enable consumers to make an easy transition to a renewable source of gas. The diverse, flexible spectrum of applications in the areas of electricity generation, heat provision, and mobility creates a broad base of potential customers.

Biomethane can be used to generate electricity and heating from within smaller decentralized, or large centrally-located combined heat and power plants. It can be used by heating systems with a highly efficient fuel value, and employed as a regenerative power source in gas-powered vehicles.

Biomethane to Grid

Biogas can be upgraded to biomethane and injected into the natural gas grid to substitute natural gas or can be compressed and fuelled via a pumping station at the place of production. Biomethane can be injected and distributed through the natural gas grid, after it has been compressed to the pipeline pressure. In many EU countries, the access to the gas grid is guaranteed for all biogas suppliers.

One important advantage of using gas grid for biomethane distribution is that the grid connects the production site of biomethane, which is usually in rural areas, with more densely populated areas. This enables the gas to reach new customers. Injected biomethane can be used at any ratio with natural gas as vehicle fuel.

Biomethane is more flexible in its application than other renewable sources of energy.

The main barriers for biomethane injection are the high costs of upgrading and grid connection. Grid injection is also limited by location of suitable biomethane production and upgrading sites, which have to be close to the natural gas grid.

Several European nations have introduced standards (certification systems) for injecting biogas into the natural gas grid. The standards, prescribing the limits for components like sulphur, oxygen, particles and water dew point, have the aim of avoiding contamination of the gas grid or the end users. In Europe, biogas feed plants are in operation in Sweden, Germany, Austria, the Netherlands, Switzerland and France.

Global Trends in the Biomass Sector

There has been a flurry of activity in the biomass energy sector in recent year, with many new projects and initiatives being given the green light across the globe. This movement has been on both a regional and local level; thanks to the increased efficiency of biomass energy generators and a slight lowering in implementation costs, more businesses and even some homeowners are converting waste-to-energy systems or by installing biomass energy units.

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Latest from the United Kingdom

Our first notable example of this comes from Cornwall in the UK. As of this week, a small hotel has entirely replaced its previous oil-based heating system with biomass boilers. Fuelled from wood wastes brought in from a neighboring forest, the BudockVean hotel has so far been successful in keeping the entire establishment warm on two small boilers despite it being the height of British winter – and when warmer weather arrives, plans to install solar panels on the building’s roof is to follow.

Similar projects have been undertaken across small businesses in Britain, including the south-coast city of Plymouth that has just been announced to house a 10MW biomass power plant (alongside a 20MW plant already in construction). These developments arein part thanks to the UK government’s Renewable Heat Incentive which was launched back in 2011. The scheme only provides funding to non-domestic properties currently, but a domestic scheme is in the works this year to help homeowners also move away from fossil fuels.

Initiatives (and Setbacks) in the US

Back across the pond, and the state of New York is also launching a similar scheme. The short-term plan is to increase public education on low-emission heating and persuade a number of large business to make the switch; in the longer term, $800m will be used to install advanced biomass systems in large, state-owned buildings.

A further $40m will be used as part of a competition to help create a series of standalone energy grids in small towns and rural areas, which is a scheme that could hopefully see adopted beyond New York if all goes well.


Unfortunately, the move away from fossil fuels hasn’t been totally plain sailing across the US. Georgia suffered a blow this week as plans to convert a 155MW coal plant to biomass have been abandoned, citing large overheads and low projected returns. The company behind the project have met similar difficulties at other sites, but as of this week are moving ahead with further plans to convert over 2000MW of oil and coal energy generation in the coming years.

Elsewhere in the US, a company has conducted a similar study as to whether biomass plant building will be feasible in both Florida and Louisiana. Surveying has only just been completed, but if things go better than the recent developments in Georgia, the plants will go a long way to converting biomass to fertilizer for widespread use in agriculture in both states.

Far East Leading the Way

One country that is performing particularly well in biomass energy investment market is Japan. Biomass is being increasingly used in power plants in Japan as a source of fuel, particularly after the tragic accident at Fukushima nuclear power plant in 2011.  Palm kernel shell (PKS) has emerged as a favorite choice of biomass-based power plants in the country. Most of these biomass power plants use PKS as their energy source, and only a few operate with wood pellets. Interestingly, most of the biomass power plants in Japan have been built after 2015..

On the contrary, the US and Europe saw a fairly big fall in financing during this period; it should be noted, however, that this relates to the green energy investment market as a whole as opposed to biomass-specific funding. The increase seen in Japan has been attributed to an uptake in solar paneling, and if we look specifically to things such as the global demand for biomass pellets, we see that the most recent figures paint the overall market in a much more favorable light for the rest of the world.

Brighter Times Ahead

All in all, it’s an exciting time for the biomass industry despite the set backs which are being experienced in some regions.  On the whole, legislators and businesses are working remarkably well together in order to pave the way forward – being a fairly new market (from a commercially viable sense at least), it has taken a little while to get the ball rolling, but expect to see it blossom quickly now that the idea of biomass is starting to take hold.

Palm Kernel Shells: An Attractive Biomass Fuel for Europe

Europe is targeting an ambitious renewable energy program aimed at 20% renewable energy in the energy mix by 2020 with biomass energy being key renewable energy resource across the continent. However, the lack of locally-available biomass resources has hampered the progress of biomass energy industry in Europe as compared with solar and wind energy industries. The European biomass industry is largely dependent on wood pellets and crop residues.

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Europe is the largest producer of wood pellets, which is currently estimated at 13.5 million tons per year while its consumption is 18.8 million tons per year. The biggest wood pellet producing countries in Europe are Germany and Sweden. Europe relies on America and Canada to meet its wood pellet requirements and there is an urgent need to explore alternative biomass resources. In recent years, palm kernel shells (popularly known as PKS) from Southeast Asia and Africa has emerged as an attractive biomass resources which can replace wood pellets in biomass power plants across Europe.

What are Palm Kernel Shells

Palm kernel shells are the shell fractions left after the nut has been removed after crushing in the Palm Oil Mill. Kernel shells are a fibrous material and can be easily handled in bulk directly from the product line to the end use. Large and small shell fractions are mixed with dust-like fractions and small fibres.

Moisture content in kernel shells is low compared to other biomass residues with different sources suggesting values between 11% and 13%. Palm kernel shells contain residues of Palm Oil, which accounts for its slightly higher heating value than average lignocellulosic biomass. Compared to other residues from the industry, it is a good quality biomass fuel with uniform size distribution, easy handling, easy crushing, and limited biological activity due to low moisture content.

Press fibre and shell generated by the palm oil mills are traditionally used as solid fuels for steam boilers. The steam generated is used to run turbines for electricity production. These two solid fuels alone are able to generate more than enough energy to meet the energy demands of a palm oil mill.

Advantages of Palm Kernel Shells

PKS has almost the same combustion characteristics as wood pellets, abundantly available are and are cheap. Indonesia and Malaysia are the two main producers of PKS. Indonesian oil palm plantations cover 12 million hectares in Indonesia and 5 million hectares in Malaysia, the number of PKS produced from both countries has exceeded 15 million tons per year. Infact, the quantity of PKS generated in both countries exceeds the production of wood pellets from the United States and Canada, or the two largest producers of wood pellets today.

Interestingly, United States and Canada cannot produce PKS, because they do not have oil palm plantations, but Indonesia and Malaysia can also produce wood pellets because they have large forests. The production of wood pellets in Indonesia and Malaysia is still small today, which is less than 1 million tons per year, but the production of PKS is much higher which can power biomass power plants across Europe and protect forests which are being cut down to produce wood pellets in North America and other parts of the world.

PKS as a Boiler Fuel

Although most power plants currently use pulverized coal boiler technology which reaches around 50% of the world’s electricity generation, the use of grate combustion boiler technology and fluidized bed boilers is also increasing. Pulverized coal boiler is mainly used for very large capacity plants (> 100 MW), while for ordinary medium capacity uses fluidized bed technology (between 20-100 MW) and for smaller capacity with combustor grate (<20 MW). The advantage of boiler combustion and fluidized bed technology is fuel flexibility including tolerance to particle size.

When the pulverized coal boiler requires a small particle size (1-2 cm) like sawdust so that it can be atomized on the pulverizer nozzle, the combustor grate and fluidized bed the particle size of gravel (max. 8 cm) can be accepted. Based on these conditions, palm kernel shells has a great opportunity to be used as a boiler fuel in large-scale power plants.

Use of PKS in pulverized coal boiler

There are several things that need to be considered for the use of PKS in pulverized coal boilers. The first thing that can be done is to reduce PKS particle size to a maximum of 2 cm so that it can be atomized in a pulverized system. The second thing to note is the percentage of PKS in coal, or the term cofiring. Unlike a grate and a fluidized bed combustion that can be flexible with various types of fuel, pulverized coal boilers use coal only. There are specific things that distinguish biomass and coal fuels, namely ash content and ash chemistry, both of which greatly influence the combustion characteristics in the pulverized system.

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PKS has emerged as an attractive biomass commodity in Japan

Coal ash content is generally greater than biomass, and coal ash chemistry is very different from biomass ash chemistry. Biomass ash has lower inorganic content than coal, but the alkali content in biomass can change the properties of coal ash, especially aluminosilicate ash.

Biomass cofiring with coal in small portions for example 3-5% does not require modification of the pulverized coal power plant. For example, Shinci in Japan with a capacity of 2 x 1,000 MW of supercritical pulverized fuel with 3% cofiring requires 16,000 tons per year of biomass and no modification. Similarly, Korea Southeast Power (KOSEP) 5,000 MW with 5% cofiring requires 600,000 tons per year of biomass without modification.

PKS cofiring in coal-based power plants

Pulverized coal-based power plants are the predominant method of large-scale electricity production worldwide including Europe. If pulverised fuel power plants make a switch to co-firing of biomass fuels, it will make a huge impact on reducing coal usage, reducing carbon emissions and making a transition to renewable energy. Additionally, the cheapest and most effective way for big coal-based power plants to enter renewable energy sector is biomass cofiring. Palm kernel shells can be pyrolyzed to produce charcoal while coal will produce coke if it is pyrolyzed. Charcoal can be used for fuel, briquette production and activated charcoal.