The latest Waste-to-Energy industry barometer from analysts at Ecoprog has concluded that the business outlook of plant operators has continued to improve since last year, while technology suppliers are feeling the distress.
The annual survey is conducted by Ecoprog, a German industry analyst, with assistance of the Confederation of European Waste to Energy Plants (CEWEP).
In comparison to the previous years’ high level, the business climate in the waste to energy industry was found to improve once again. However, the gap between operators and suppliers of thermal waste treatment plants continue to grow.
Last year’s positive climate among operators continued to increase significantly, the situation in the suppliers’ industry apparently remained difficult.
Operators of thermal waste treatment plants rate their current situation, as well as their future business expectations, as positive. Almost 80% of them rate their current facility utilisation as relatively high. In comparison to the already very positively evaluated year in 2015, 60% of all participating operators reported a rise in demand on the spot market.
40% of the operators questioned reported expectations of a further improvement of their business situation within the next few months, only 1% is expecting a decline.
As a higher capacity utilisation in many of the plants in question is hardly possible, ecoprog said that the positive business expectations are mostly related to an expected rise in prices.
Manufacturers on the other view their current business situation as poor. Over 50% of the questioned industry representatives consider their backlog as too low, viewed as a whole, this backlog decreased for more companies that it has increased for.
More than half of the companies are not expecting any change of their situation in the near future, but at least the number of optimists is significantly higher than the number of pessimists.
The WtE industry barometer 2016 evaluates the current business climate within the waste to energy industry using a calculation methodology developed by the ifo institute. Additionally, ecoprog explained that questions regarding current developments were analysed.
Therefore, the operators of thermal waste treatment plants were, among others, questioned with regard to their expectations of the European Commission’s Circular Economy Package, the effects of the Brexit and the acquisitions within the industry by companies from China.
The technology providers were asked to give additional information regarding their perception of different market regions worldwide.
The WtE industry barometer is conducted by the Cologne-based consultancy ecoprog GmbH. The Confederation of European Waste-to-Energy Plants CEWEP supports the execution of the survey.