Waste-to-Energy: An Attractive Investment Opportunity

Addressing Europe’s Waste Challenge

Europe has been grappling with a growing waste problem. Historically, landfill sites were often established in remote locations, essentially making waste “out of sight, out of mind.” However, this approach has significant environmental drawbacks. Poorly constructed landfill sites can allow rainwater and meltwater to seep through the waste, carrying toxic substances into natural environments and groundwater.

Current European legislation prioritizes waste reuse — recycling and environmental protection — over energy production. With old landfills reaching capacity, constructing new ones has become prohibitively expensive due to high gate fees and landfill taxes aimed at discouraging landfill use. Conversely, waste-to-energy plants not only produce energy but also generate revenue through gate fees for waste reception, making them attractive to investors.

A Global Trend

This trend extends beyond Europe. Last year, we visited one of the largest landfill sites in Latin America with our investors, where we are successfully working on the BioPower project in partnership with our client in Norway. In Colombia alone, we have over 100 projects in progress, presenting significant investment opportunities. Our investment bankers can sense the substantial potential for returns in this burgeoning market.

Do?a Juana landfill, Bogota, Colombia

Reliable Energy Production

Waste-to-energy is becoming increasingly vital in the transition from fossil fuels to renewable energy sources, which are often intermittent. Unlike solar and wind power, waste-to-energy plants operate continuously, providing a stable energy output throughout the year.

The UK’s Proactive Approach

The UK is at the forefront of waste-to-energy development, systematically advancing electricity generation from renewable sources and non-recyclable waste. The country’s robust administrative and financial frameworks support these projects, making them appealing to investors. Germany is also making significant strides with new projects in Wessel, where waste is converted into hydrogen. The company behind these projects has hired Gleam Consulting for their further expansion, with Mr. Mollen and various shareholders on board.

Need for Competent Partners

Most new power plant projects utilize non-recourse project finance, meaning funding comes from both loan providers and the owner’s equity. Investors and loan providers require assurances that the power plant will generate sufficient revenue to repay loans with interest and yield a profit. Therefore, selecting competent and reliable partners for project development and operation is crucial.

Role of Operation and Maintenance Partners

Post-construction, the operation and maintenance (O&M) partner’s role is critical. They ensure the plant runs efficiently, remains productive, and complies with environmental regulations. The Engineering, Procurement, and Construction (EPC) company also plays a vital role, alongside long-term contracts for the sale of energy and waste fuel supply.

Global Search for Expertise

Investors seek partners globally, looking for those with a solid track record in similar projects, along with the necessary expertise and financial stability. Gleam Consulting, for example, stands out in this field.

In conclusion, waste-to-energy plants present a promising investment opportunity. With the right partners like Gleam Consulting, investors can be assured of reliable, profitable, and sustainable operations.

Gleam Consulting

5th Avenue NYC

https://www.gleambusinessconsulting.com/contact