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Waste to Energy

More plasma-driven waste-to-energy plants set up worldwide; Hong Kong yet to progress?

While a new waste-to-energy plant driven by plasma gasification technology is now operational in the UK, Hong Kong is still considering setting up incinerators as a waste management solution, against all known health risks and environmental pollution caused by incinerators, which, incidentally, are resolved for plasma plants. Can Hong Kong realistically stay competitive if it fails to progress?

UK Officials and representatives of the energy sector tour the newly operational plasma waste-to-energy plant on Teesside, Middlesbrough (Ian McIntyre/GazetteLive)

Clear The Air has prepared a collection of articles updating on the plasma progress in the past year, on plants setting up in India, Thailand, Indonesia and the Philippines.

Cheung Kong Infrastructure leads consortium in HK$9.7billion acquisition of largest waste-to-energy company in the Netherlands

[Press Release]

(June 17, 2013 – Hong Kong) A consortium led by Cheung Kong Infrastructure Holdings Limited (“CKI”) has entered into an agreement to acquire AVR Afvalverwerking B.V. (“AVR”) in the Netherlands. The enterprise value of the transaction is approximately HK$9.7 billion (EUR940 million).

Members of the consortium include Cheung Kong (Holdings) Limited and CKI, each taking a 35% stake; Power Assets Holdings Limited (“Power Assets”) a 20% stake; and the Li Ka Shing Foundation Limited holding 10%.

AVR is the largest energy from waste (“EfW”) player in the Netherlands. It is the country’s market leader, commanding a 23% market share of the waste processing industry.
AVR’s revenue streams are very stable with long term contracts in place for both gate fees for processing waste as well as off-take for energy generated.

AVR Represents an Attractive Proposition

Leading this acquisition move is Mr. Andy Hunter, Deputy Managing Director of CKI. Mr. Hunter said, “since the acquisition of EnviroWaste in New Zealand in January, we have been presented a number of waste treatment business opportunities around the world.”

“With its secured and stable income as well as good profitability, AVR represents an attractive proposition,” continued Mr. Hunter.

“The experienced management team, market leadership position and potential growth opportunities are other key factors which add appeal to AVR,” commented Mr. Hunter.

“The prospects of AVR are also enticing. Further growth opportunities include the treatment of import waste of which AVR has already started,” Mr. Hunter expressed.

CKI Making Good Inroads in Waste Management

“We are very happy with the acquisition of AVR. It fits in well with CKI’s stringent investment requirements, generating immediate recurring cash flow with profitable and stable returns,” said Mr. H L Kam, Group Managing Director of CKI.

“CKI is making good inroads in the area of waste management. In the United Kingdom, Northumbrian Water is one of the leading companies treating waste water and sludge in the country. While, in New Zealand, EnviroWaste is one of the leading waste management companies in the country and operates the largest landfill there. The acquisition of AVR will see us investing in a leading waste management company in Europe, possessing the largest EfW plant capacity in the continent. With waste treatment being an imminent issue in most places around the world, we see good growth potential in this business,” expressed Mr. Kam.

This HK$9.7 billion AVR acquisition is the second waste treatment investment that CKI has participated in this year, following the HK$3.2 billion EnviroWaste acquisition which took place in January.

New Milestone for Power Assets

“The acquisition poses a new milestone for Power Assets. AVR represents an attractive diversification of our investment portfolio into the energy from waste industry,” commented Mr. CT Wan, Group Managing Director of Power Assets.

“Power Assets now has a strong portfolio of electricity generation and distribution, gas distribution as well as renewable energy business in six markets outside of Hong Kong. Furthering our strategy of expanding our portfolio outside of Hong Kong, the investment in AVR extends our geographic reach into the European Continent,” Mr. Wan continued.

The AVR acquisition transaction is subject to customary approvals, including a Central Works Council consultation process as well as approval pursuant to European Union Merger Regulation (EUMR). Completion of the transaction is expected to take place in the third quarter of the year.

Upon completion, AVR will become the newest investment in Cheung Kong Group’s portfolio in the Netherlands, which currently encompasses retail business and container port.
Together with AVR’s 430 employees, the Group will have about 20,000 staff in the Netherlands.

Solena’s waste-to-energy solution for Hong Kong

Solena Fuels is currently developing facilities in the UK, US, Australia and Germany that will convert waste into aviation fuel, and they are expected to be fully operational by 2014/15. The cost of the fuel produced would be relatively low (estimated at US$50 per barrel) compared to the current market price for aviation fuel produced from fossil fuels (US$128 in 2012 per barrel). With clear economic and environmental benefits, the US Federal Aviation Administration has recently announced funding for a new research center for jet biofuel research based in Washington State University, bringing together a research team comprised of academics and industry experts.

Solena is building aviation biofuels facilities for British Airways, Qantas and Lufthansa

Solena Fuels conducted a feasibility study in 2011 about setting up similar facilities in Hong Kong, a fuel-hungry and garbage-churning hypermetabolic beast of a city. The potential for deriving low-cost aviation (and possibly marine) fuels from the city’s high waste production, coupled with reduced pollution, should have been very attractive to a city whose transport industries suffer from fierce competition from China. But it seems that it remains to be seen whether the proposals will come to fruition.

Below is the full article of the US FAA announcement on funding biofuel research, from David Holt of fuelfix:

This month U.S. consumers landed some exciting news as the Federal Aviation Administration (FAA) unveiled plans to create a national center for excellence on jet biofuel research.  The recently announced effort will help to revolutionize the air transportation industry by tackling one of its largest challenges – rising fuel costs.

The center will be based at Washington State University and will bring together researchers from 16 academic institutions including the Massachusetts Institute of Technology, the Pennsylvania State University and the University of North Carolina – Chapel Hill, among others.  The research team will also benefit from the expertise of 26 federal government and airline industry partners including companies like Boeing, Delta Airlines and General Electric to name just a few.

By aiming to significantly advance the use of cost-competitive “drop in” aviation biofuel, the effort will support the FAA’s target of deploying one billion gallons of alternative jet fuel by 2018.

Perhaps, the most promising element of the center’s work is that it will approach its research from a regional perspective; taking into account biological materials, and the needs of different hubs, in varying regions across the country.  This strategic approach is important given that the top 40 U.S. airports use approximately 90 percent of America’s jet fuel.

In addition to decreasing carbon emissions, the center’s work is critical to the airline industry’s future growth as fuel costs – which account for approximately 35 percent of an airline’s operating costs – have risen 267 percent over the last 11 years.  This has caused airlines to increase prices for tickets and other services, which increases costs for the entire economy.

In fact, commercial aviation is a cornerstone of the economy, as it intersects almost every sector of the economy and drives more than 5 percent of U.S. Gross Domestic Product (GDP). In 2010, for example airlines enplaned 720 million passengers and 18 million tons of cargo on more than 10 million flights.

It stands to reason then, that if successful the center could provide significant savings and market-based solution to help our national economy considering that jet fuel cost, on average, $128 per barrel in 2012.  For comparison, some experts predict the cost of biofuel could be as low as $50 per barrel once it is produced in large commercial quantities.

For its part, the U.S. airline industry has already begun embracing the use of biofuels to reduce costs and lower its carbon footprint. Just a few years ago, eight airlines in the Air Transport Association signed a letter of intent to negotiate the purchase of large quantities of fuel derived from biomass.  As part of that effort, Solena Fuels will utilize post-recycled urban and agricultural wastes to produce up to 16 million gallons of jet fuel per year by 2015 to support operations at Oakland, San Francisco and San Jose.  Meanwhile, in June United Airlines agreed to buy 15 million gallons of lower-carbon, renewable jet fuel from AltAir Fuels over the next three years.

Of course, it goes without saying that the increased use of biofuels in our nation’s airline industry will pay large dividends in decreasing our nation’s carbon emissions.  With the implementation of this center and major U.S. airlines already embracing biofuels the future looks bright for increased renewable fuel use in our aviation sector.

In sum, the Center of Excellence in Alternative Jet Fuels and Environment epitomizes how the federal government and private industry can partner to create new paradigms that benefit industry and the consumer alike. After all, the increasing use of biofuels in aviation will provide significant environmental benefits while stimulating our national economy from the nation’s farms to its terminals, and everywhere in between.

23 Sep 2013

WMW: Gasification Technology Moves Lockheed Martin into Waste to Energy

From Ben Messenger of Waste Management World:

U.S. defense contractor, Lockheed Martin, is moving into the waste to fuel gasification technology business following a deal with LA based waste to fuels specialist, Concord Blue.

According to Lockheed Martin (NYSE: LMT) it will provide its engineering, program management, procurement, manufacturing and integration experience to apply Concord Blue’s patented technology globally in the expanding waste to energy arena.

Gasification Technology Moves Lockheed Martin into Waste to Energy

The defense giant said that advanced waste conversion is an emerging technology that uses gasification processes to convert waste products to electricity, heat and synthetic fuels.

Concord Blue has developed a closed-loop process that Lockheed Martin said is already commercially-proven to recycle waste into energy at virtually any scale.

For Lockheed’s part, it said that it brings high-level capabilities in complex systems integration, project management, information technology and advanced manufacturing techniques partnership.

“This agreement enables Lockheed Martin to combine our proven ability to meet complex project requirements and access to a broader, global market with Concord Blue’s demonstrated technology, experience and global facilities,” explained Paul Klammer, director of bio energy programs at Lockheed Martin’s Mission Systems and Training business.

According to Klammer, Concord Blue’s feedstock flexible technology combined with its ability to scale for smaller applications will enable the partners to waste disposal solutions for a range of situations, including those of industrial customers.

1 October 2013

WASTE TECHNOLOGIES: WASTE TO ENERGY FACILITIES

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Advanced Thermal Treatment of Municipal Solid Waste

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REVIEW OF STATE-OF-THE-ART WASTE-TO ENERGY TECHNOLOGIES

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INVESTIGATION INTO THE PERFORMANCE OF WASTE TO ENERGY TECHNOLOGIES INTERNATIONALLY

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Review of state-of-the-art for WtE technologies

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Rapid growth of CFB WTE technology in China

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