Waste-to-Energy (WTE) technologies are becoming increasingly important across the globe. As municipal solid waste (MSW) increases in developing and emerging countries, there are more public concerns regarding its environmental and health impact.
Currently, about 70% of total MSW ends up in landfills or dumpsites which can contaminate soil, ground and surface water, and emit greenhouse gasses. On average, the U.S. produces 387 million tons of MSW per year—only 8% is utilized in WTE, 25% gets recycled or composted, while 64% goes to sanitary landfills. Waste management has been gaining traction on political agendas as more and more people become sensitized to environmental pollution and its effect on quality of life.
WTE technology creates electricity and heat from MSW in a cost effective and environmentally efficient manner. In addition, WTE technology can provide an alternative source of renewable energy in light of the global shortage of fossil fuel reserves.
In 2017, the global market for WTE technology was valued at $29.9 billion, and is projected to grow to $53.82 billion by 2026 with an anticipated CAGR of 6.10%. North America is forecasted to be the fastest growing region in the global WTE market with a CAGR of 7.27% for forecast 2017-2026.
Many companies are well on their way working towards developing innovative MTE technologies. Golden Renewable Energy, LLC (“GRE”), a Yonkers, NY based company, is a market leader that specializes in plastic waste to energy technology, offering a cost efficient and environmentally sound alternative to landfill waste plastic disposal. In January of this year, GRE received funding from Fortistar Capital, LLC (“Fortistar”), which focuses on sustainability and innovative energy products that work towards a zero-carbon U.S. economy, to develop proprietary technology that provides an environmentally friendly solution for waste plastic.
Similarly, earlier this year, 4NEW, a blockchain waste-to-energy, London-based start-up received $25 million in funding from a major US equity firm in just 4 days of launching. 4NEW serves as a producer in energy and created KWATT, the first cryptocurrency committed to energy use that “tokenizes electricity.” The 4NEW blockchain will be used for buying and selling energy that’s generated from waste-to-energy plants, and 4NEW plans to eventually operate their own power plants to generate energy.
Amidst the growing WTE market, more and more investors are beginning to enter this space. Generate Capital Inc., a clean-energy financing company that invests in renewable-energy, energy-efficiency, waste, agriculture and water projects, raised $200 million in equity for battery-storage and various distributed energy projects at the end of 2017. Generate focuses on smaller projects, and often structures deals as long-term equity vehicles used to fund multiple projects.
Castle Placement is currently working with Ener-Core, Inc., a WTE California-based platform that is developing and commercializing proprietary technology that converts waste gas to energy free of pollution.
About Castle Placement: Founded in 2009, Castle Placement raises equity and debt capital for private middle market companies across a broad spectrum of industries. Highly experienced investment bankers and a robust, data-driven, innovative technology platform – including artificial intelligence/machine learning – match great companies with global institutional investors. Castle Placement’s proprietary app, CPGO, connects companies with investors in real time. It has over 64,500 private equity, venture capital and strategic investors, family offices, pension funds, foundations, endowments, sovereign wealth funds, hedge funds and lenders.