International W2E Market Bulletin July Round-Up
The latest’s issues of International W2E Market Bulletin have been published.
The cost of renewables is falling, by 2040 more than $7.80 trillion will be invested in renewable and waste-to-energy power generation worldwide, out of a total of $11 trillion, according to fresh analysis by Bloomberg New Energy Finance. There is nearly $1 trillion invested in renewables at the moment versus around $1.2 trillion in oil and gas, according to various estimates. The report says that power generated from renewables and waste-to-energy will be the dominant energy source for power production in Europe by 2040 and in the U.S. by 2040. Fossil fuel use is expected to peak in 2025.
Trade in the alternative fuel energy complex continues to be challenging in the EU. RDF and SRF stocks in the main consuming sectors continue to be near capacity and burn rates are for heating and industrial demand are low. Cement production in Spain and Portugal is lower and inventories are high. The Polish market continues to develop and more SRF material is expected to be shipped there. Industrial consumers in the Netherlands, such as Shell, are not expected to take any more than contractual tonnes and this is a familiar theme in the market. In the RDF market, stocks are full in Sweden, Germany and Holland at CHP plants and there is limited capacity to take spot shipments. Fees for RDF and SRF are under pressure and are rising.
Freight rates via ocean, truck and container are also increasing which is cutting into margins further. The post-Brexit environment is more concerned with currency, but it is having no immediate impact, as market fundamentals trump European politics. In other alternative fuel markets, TDF (Tyre Derived Fuel) is becoming very competitive against thermal coal and petroleum coke. Material is available and is assessed at about $20/t CIF Marmara, Turkey, basis 7,500 kcal/kg NAR.
International Projects & Supply Deals in the United Kingdom
Scottish & Southern Energy will later this year begin work on a second waste-to-energy plant in West Yorkshire. The Ferrybridge Multifuel 2 project will generate enough electricity to supply 170,000 homes in an investment worth £360m. The multifuel power station will produce low carbon electricity through use of waste derived fuels such as municipal solid waste, commercial and industrial waste and waste wood.
Exports of waste from England fell for the second consecutive month in May, according to the Environment Agency. Exports were 231,693 tonnes in the month, falling from 276,759 tonnes in April and 327,200 tonnes in March. However, exports remain above year-ago levels. Netherlands remained by far the biggest destination (114,432 tonnes), followed by Germany (47,824 tonnes), Sweden (27,847 tonnes), and Denmark (20,398 tonnes). Top 5 exporting companies were: Biffa (32,532 tonnes), N&P Alternative Fuels (26,507 tonnes), SITA UK Ltd (20,278 tonnes), FCC Recycling (14,526 tonnes), Seneca Environmental Solutions (14,080 tonnes).