Renewable Waste Intelligence: Renewable Waste Management Markets Set for Growth

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Renewable Waste Management industry leaders including Ros Roca and Waste Management have talked positively about the opportunities offered by renewable waste facilities and the commercial imperative underpinning their investment in them in a recent report Renewable Waste Markets Report 2012-13.

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Renewable Waste Management industry leaders including Ros Roca and Waste Management have talked positively about the opportunities offered by renewable waste facilities and the commercial imperative underpinning their investment in them in a recent report Renewable Waste Markets Report 2012-13.

Cautious optimism
There is a cautious optimism in the waste to energy market with interviewees reporting a ‘who will leap first?’ mentality. The most preeminent models being considered are strategic partnerships and venture capital investment.

One report interviewee stated “the [main] financial involvement is going to come from the venture capital sector now. There are many banks and financiers who will steer clear because the risk is huge and there are no financial models. The economics are undeveloped.”

Strategic partnerships
It would seem that the most preferred form of investment by all parties within the renewable waste to energy sector is that of strategic partnerships. While providing funding for the capital cost of developing the plant, these partnerships also seek to ensure much of the on-going business stability. A company proactively investing in the sector stated that “we’re in roughly 30 different investments. Our partners include companies that have built networks with other venture capitalists that we’d like to invest with. This is a group that we can tap into and get insight into technologies. It expands our eyes on the field, and gives us more reach into the sector.”

Future proofing
This strategy is described by the Renewable Waste Intelligence as ‘future proofing’; ensuring that the established companies are well placed to react to future regulation on emissions, waste and energy production. The willingness of established players in the waste management sector is an indication of the level of confidence other private investors can have in entrepreneurial developers. But some reticence for private equity to get involved in this sector and robust government incentives can be attributed to the Solyndra bankruptcy.

It has been suggested that the best way for state and federal government to support these technologies is to ensure demand for their outputs – a front-end, revenue-generating business plan being what a number of interviewees for this report already favour.

Future proofing
It is clear that there is significant debate about realising the potential in renewable waste. However, the opportunities being seen by venture capitalists and diversifying corporations interviewed by Renewable Waste Intelligence demonstrates the enduring commercial imperative that underpins this emerging industry.

The distant objective is for MSW to energy to become a ‘near to cost feedstock’ energy producer. With targeted investment and strategic partnerships in the US this future, if not certain, is a little clearer.

To receive a free overview of the Renewable Waste Markets Report 2012-13, visit: http://goo.gl/U5oDg

Contact:

Louisa Spiteri
Renewable Waste Intelligence
+44 (0) 207 375 7245
louisa (at) fcbusinessintelligence (dot) com

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