Q: Got Unwanted Stuff? If “Yes”, We Can Help!

Send Details on Contact Form Below>> or Call Us @ 720-615-0281  

The typical waste-to-energy plant generates electricity from steam turbines powered by burning municipal solid waste (MSW). Because MSW is the feedstock for the process, waste to energy plants also may be referred to as “trash to energy” or “resource recovery” or “energy recovery” plants. MSW contains energy-rich materials, including paper, plastics, yard waste, and wood.

Below we have put together a quick overview of waste to energy and how to construct a waste to energy plant business plan.

Got Stuff? We buy surplus inventory and hard to recycle items. Call us before you send it to the landfill!

Considerations in Planning a Waste to Energy Plant

A great deal of research must be done in the initial planning of a waste to energy plant. The following are among the key questions to be answered at the outset.

• What type of waste is available in the area (e.g., municipal solid waste, tires, plastics, wood, hazardous waste, etc.)? The types of waste to be used as feedstock will determine the technologies that can be used.
• How much waste (tons per year) should the plant be able to transform into energy? Again, this has a big impact on technology selection.
• What is the desired output (electricity, heat, synthetic fuel)? This will also help determine the choice of technologies.
• Where will the plant be located in relation to electric, heat, and water pipelines?
• What local legal and environmental requirements could impact the choice of technologies?
• What underground water resources are available for generating steam? (Lack of underground water could make it necessary to use pyrolysis technology, which is less efficient than steam for transforming MSW into energy.)
• Is the chosen technology well-proven for the intended purpose?

The answers to these and other important questions will inform the development of any business plan,

Why Is a Waste to Energy Plant Business Plan Needed?

Commercial, for-profit waste to energy plants make money in two main ways: by charging gate fees (also called tipping fees) for the MSW received as feedstock for the process and by selling the output of the process—electricity in most cases. The front end of the process is governed by a Concession Agreement between the entity operating the plant and the municipality delivering MSW. The back end is governed by a Power Purchase Agreement (PPA) between the entity operating the plant and the power company buying the plant’s output.

As is the case with most new businesses, especially ones that involve obtaining financing and constructing a new facility, a business plan may be needed to establish the project’s technical, commercial, and financial feasibility. The first step in the development of such a business plan is to complete a feasibility study, which focuses on the market need and proposes the best technologies for the project.

Some financial institutions don’t require a business plan as a condition for financing the development of a waste to energy plant. Instead, they rely on the feasibility study and the financial projections it contains. The same is true for many private equity investors.