Technology, cost, a performance of waste-to-energy incineration industry in China

With the upgrading of urbanization and improvement of living standards, the volume of municipal solid waste (MSW) is increasing in China. The waste-to-energy (WTE) incineration industry promotes the harmless disposal and recycling of MSW. It is an important part of the energy conservation and emission reduction tasks of “12th Five-Year Plan” period (2011–2015). Based on the development status of WTE plants in China, this paper makes an analysis of the WTE incineration industry from two aspects. The one is the analysis of political, economic, social and technological factors that influence the external environment of this industry. The other one is the discussion of technologies, costs and performances of some WTE plants in China, including a detailed cost-benefit analysis. It proves that the external environment is conducive to the development of WTE incineration industry and this industry is faced with good market prospects. Also, the net profit margin and return on investment (ROI) of WTE plants is attractive, up to 25% and 18% respectively. The pay back period is 12.73 years and the internal rate of return (IRR) is 10.94%. Thus, WTE plant has good profitability and economic benefit. Besides, WTE incineration has significant environmental benefits.

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