Waste has traditionally been seen as a problem—something to be discarded or dealt with at a cost to society and the environment. However, with increasing global energy demands, the rising urgency of climate change, and the need to transition away from fossil fuels, waste is increasingly considered a valuable resource for energy generation. Technologies that convert waste into renewable energy are gaining traction, and many nations and industries are embracing them as part of their renewable energy portfolios. Here Haush explores the technologies behind waste-to-energy (WtE), the markets driving growth, cost considerations, and the leading regions and industries in the field. We’ll also look ahead to 2030 to understand how this sector might evolve.
Technologies Converting Waste to Renewable Energy
There are several key technologies that enable the conversion of waste into energy, each utilising different types of waste and generating various forms of energy such as electricity, heat, and fuels.
- Incineration with Energy Recovery
The most widely used method of converting waste to energy is incineration, where municipal solid waste (MSW) is burned to produce steam, which drives turbines to generate electricity. This process can significantly reduce the volume of waste by up to 90%. Modern plants use advanced filtering technologies to minimise pollutants such as dioxins and carbon emissions.- Waste-to-Electricity: Electricity is generated through the combustion of organic materials in waste. Typically, one ton of MSW can produce 500 to 600 kWh of electricity.
- District Heating: Waste heat from incineration plants is increasingly used to supply heat to nearby buildings through district heating systems, popular in Europe.
- Anaerobic Digestion (Biogas):
Organic waste (like food scraps, agricultural residue, and animal manure) can be broken down by bacteria in an oxygen-free environment. This process generates biogas, a mixture of methane and carbon dioxide, which can be burned to generate electricity or heat or upgraded into biomethane, a substitute for natural gas. Anaerobic digestion is particularly valuable in rural areas with abundant organic waste sources. - Pyrolysis and Gasification:
These advanced thermal technologies break down organic materials in waste at high temperatures, with limited or no oxygen.- Pyrolysis produces bio-oil, which can be further refined into biofuels for transportation.
- Gasification converts waste into syngas (hydrogen, carbon monoxide), which can be used to generate electricity or as a building block for chemicals and fuels.
- These technologies allow for more efficient energy extraction and lower emissions compared to traditional incineration, although they are currently more expensive and complex.
- Landfill Gas Recovery:
Organic waste decomposing in landfills produces methane, a potent greenhouse gas. Landfill gas capture systems collect this methane and use it to generate electricity or heat. While it’s not the most efficient method, it prevents methane emissions and turns an environmental liability into an energy resource. - Waste-Derived Biofuels:
Some processes convert specific types of waste—such as agricultural residue or industrial waste oils—into biofuels like ethanol, biodiesel, or jet fuel. These biofuels can be used in existing infrastructure for transportation and industrial processes, making them highly valuable for decarbonising sectors that are harder to electrify.
Market Growth and Trends in Waste-to-Energy
The waste-to-energy market has been steadily growing in response to increasing waste generation, urbanisation, and government mandates for waste reduction and renewable energy. According to market analysts, the global waste-to-energy market was valued at approximately $37 (£28) billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of around 6-7% over the next decade. By 2030, the market size could reach $55-60 billion (£42-45bn), driven by strong demand for both waste management solutions and renewable energy.
Key market drivers include:
- Government policies: Many countries, particularly in the EU, have ambitious waste management and renewable energy targets. This has led to subsidies for waste-to-energy plants, tax incentives, and mandates for landfilling bans. (EU Waste Framework Directive)
- Circular economy principles: Corporations and municipalities are increasingly focused on reducing waste and seeing it as a resource, which fits well with the circular economy model.
- Decarbonisation efforts: As part of the global effort to achieve net-zero emissions by 2050, waste-to-energy offers a way to displace fossil fuel-based energy while managing waste.
Costs of Waste-to-Energy
The cost of waste-to-energy depends on the technology and location. Traditional incineration plants can cost between $60 (£45) and $200 (£150) per megawatt-hour (MWh), which is relatively high compared to other renewable sources like wind or solar. However, incineration provides a reliable, baseload source of power, unlike intermittent renewables.
Anaerobic digestion costs can vary between $40 (£46) and $150 (£115)per MWh, depending on the type of feedstock and plant size. Advanced gasification and pyrolysis plants are more expensive, ranging from $100 (£76) to $250 (£200) per MWh, though costs are expected to decrease as the technology matures and scales up.
Additionally, the value of the energy produced depends on the local market. In countries where landfill tipping fees are high and renewable energy is incentivised, waste-to-energy becomes more financially attractive.
Leading Countries, Regions, and Industries in Waste-to-Energy
Several regions and industries are leading the way in waste-to-energy, with Europe, Asia, and the United States being at the forefront.
- Europe: The European Union is a global leader in waste-to-energy due to strict landfill bans and aggressive renewable energy policies. Countries like Sweden, Denmark, and Germany have invested heavily in waste incineration with energy recovery and biogas production. In Sweden, nearly 50% of household waste is incinerated for energy recovery, with the country even importing waste from other countries for energy generation.
- Asia: China is the largest waste-to-energy market globally, driven by its vast urban population and rising energy demand. As of 2022, China operated over 500 waste-to-energy plants, and the country has plans to increase capacity further by 2030. Japan and South Korea are also prominent players, using incineration as a key method of waste management.
- United States: The U.S. has a relatively small but growing waste-to-energy sector, with around 70 operating plants. However, due to relatively low landfill costs, WtE has not scaled as much as in Europe or Asia. Nevertheless, states like California, Massachusetts, and New York are increasing support for biogas production and landfill gas capture.
- Industries: The agricultural sector, food processing, and wastewater treatment industries are leading adopters of anaerobic digestion, using organic waste to generate energy. The transportation sector is seeing growth in waste-derived biofuels, particularly as companies look to decarbonize fleets.
In Europe, several countries are leaders in waste-to-energy (WtE), driven by policies aimed at reducing landfill use, improving waste management, and promoting renewable energy generation. The top European countries in waste-to-energy include Germany, Sweden, Denmark, the Netherlands, and the UK, each utilizing WtE as part of their broader waste management and renewable energy strategies. Let’s quantify their achievements and examine the projections for each.
1. Germany
Current Capacity:
Germany has one of the most advanced waste management systems in the world. As of 2022, Germany operates around 100 waste-to-energy plants, processing approximately 26 million tons of waste annually. The country generates approximately 9,000 GWh of electricity and 13,000 GWh of heat from waste incineration, serving a significant portion of its energy grid through district heating and electricity. For example the 38 MW Essen-Karnap waste-to-energy plant.
Essen-Karnap Plant in Germany
Projections for 2030:
Germany is expected to expand its waste-to-energy capacity as part of its commitment to the circular economy and further reduce landfill use, which currently stands at less than 1% of municipal waste. By 2030, the volume of waste processed is expected to increase by around 10-15%, reaching 29-30 million tons annually, with a corresponding rise in energy generation.
2. Sweden
Current Capacity:
Sweden is often regarded as a pioneer in waste-to-energy. As of 2022, Sweden operates 34 waste-to-energy plants, processing about 6 million tons of waste annually. Notably, Sweden imports around 1.3 million tons of waste from other countries to fuel its WtE plants. The country generates about 2,700 GWh of electricity and 6,000 GWh of heat, with the majority used in district heating. The SYSAV waste-to-energy plant is the most energy-efficient plant in Sweden, as well as being one of the most advanced plants in the world. The plant includes four boilers, the first two of which began operation in 1973.
Projections for 2030:
Sweden’s capacity is expected to stabilize, with projections indicating that it will continue to import waste while maintaining current levels of domestic waste processing. By 2030, Sweden is projected to process 6.5-7 million tons of waste annually, maintaining its high energy generation levels. Its energy mix from waste will be fine-tuned for efficiency, with slight increases in heat generation expected.
3. Denmark
Current Capacity:
Denmark is another leader in waste-to-energy, with about 23 waste-to-energy plants as of 2022. The country processes around 3.8 million tons of waste each year, producing 1,600 GWh of electricity and 7,400 GWh of heat, which is used extensively in Denmark’s widespread district heating system. Denmark’s largest WtE plant is Amager Bakke.
Amager Bakke in Denmark
Projections for 2030:
Denmark plans to maintain its WtE leadership by further optimizing plant efficiencies and increasing the use of advanced technologies such as carbon capture and storage (CCS) at WtE plants. By 2030, Denmark expects to process 4-4.2 million tons of waste annually, with a focus on reducing emissions and increasing energy recovery efficiency.
4. The Netherlands
Current Capacity:
The Netherlands operates 12 waste-to-energy plants that process around 8 million tons of waste annually, generating around 4,800 GWh of electricity and 4,500 GWh of heat. The country’s waste-to-energy plants are highly efficient, with several achieving energy efficiency rates close to 50-60% due to combined heat and power (CHP) applications. AEB Amsterdam is one of the largest waste-to-energy plants, where AEB wants to capture up to 500 kilotonnes of carbon from its flue gases and store it in empty gas fields in the North Sea, in total about 500 ktonnes.
Projections for 2030:
By 2030, the Netherlands aims to further reduce landfilling and incinerate more non-recyclable waste while maximizing energy recovery. It is projected that the volume of waste processed will increase to 9-9.5 million tons, with energy output rising proportionally, especially in district heating, where demand is expected to grow.
5. United Kingdom
Current Capacity:
The UK has seen a significant expansion in its waste-to-energy sector over the last decade, driven by landfill diversion policies and increased investment in energy recovery infrastructure. As of 2022, the UK operates about 54 WtE facilities, processing approximately 13 million tons of waste annually. This results in the generation of 5,000 GWh of electricity, contributing around 2-3% of the UK’s total electricity supply, the largest being Viridor Runcorn EFW.
Projections for 2030:
The UK is expected to continue expanding its WtE capacity, with new plants planned or under construction. By 2030, the UK is projected to process 16-17 million tons of waste annually, generating 6,500-7,000 GWh of electricity. This expansion is part of the UK’s broader strategy to reduce landfill waste and increase renewable energy production, contributing further to its decarbonization goals.
Summary of Current Capacity and Projections for 2030 (Top 5 European Countries)
| Country | Annual Waste Processed (2022) | Projected Waste Processed (2030) | Current Energy Output (Electricity GWh) | Projected Energy Output (2030) |
| Germany | 26 million tons | 29-30 million tons | 9,000 GWh | 9,900-10,500 GWh |
| Sweden | 6 million tons | 6.5-7 million tons | 2,700 GWh | 3,000 GWh |
| Denmark | 3.8 million tons | 4-4.2 million tons | 1,600 GWh | 1,800 GWh |
| Netherlands | 8 million tons | 9-9.5 million tons | 4,800 GWh | 5,500 GWh |
| United Kingdom | 13 million tons | 16-17 million tons | 5,000 GWh | 6,500-7,000 GWh |
Europe’s leading countries in waste-to-energy are set to maintain and expand their capacity as part of their broader efforts to reduce landfill usage, increase renewable energy generation, and transition towards circular economies. Germany, Sweden, Denmark, the Netherlands, and the UK are all expected to expand the volume of waste processed and the energy generated from waste by 2030. These countries’ projections align with broader European Union goals for sustainability and renewable energy, reinforcing their leadership in this field.
Projections for 2030
Looking ahead to 2030, several trends are likely to shape the waste-to-energy landscape:
- Increasing waste generation: Global waste production is expected to rise by 70% by 2050, according to the World Bank, adding urgency to the need for sustainable waste management and energy recovery.
- Technology improvements: Costs for advanced thermal technologies like gasification and pyrolysis are expected to fall as efficiency increases and economies of scale are realized. These technologies could become more widespread, particularly for industrial waste and plastics, which are harder to recycle.
- Policy support: Many countries will likely implement stricter landfill diversion policies and carbon pricing mechanisms, which will make waste-to-energy more competitive with other energy sources.
- Integration with renewable energy grids: Waste-to-energy could become a key part of integrated renewable energy systems, particularly in regions that require reliable baseload power alongside intermittent renewables like wind and solar.
Waste as a source of renewable energy?
Waste has emerged as a viable source of renewable energy, with numerous technologies converting everything from household trash to organic waste into electricity, heat, and fuels. While incineration remains the dominant technology, innovations in anaerobic digestion, pyrolysis, and biogas production are gaining momentum. Europe and Asia currently lead the market, but the U.S. and other regions are ramping up investments. By 2030, as waste generation continues to grow, waste-to-energy is likely to become a more integral part of global energy systems, helping to close the loop on waste and providing a sustainable source of power and heat.
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