Posted by Simon Gandy, Maria Vinogradova and Dr Adam Read on 19 February 2013
Ricardo-AEA has been involved in discussions about the state of the
UK’s waste infrastructure landscape.
Despite developers saying they do not view the supply of residual waste foodstock as a risk to future developments, why do recent reports predict the UK is heading for excess residual treatment capacity?
We support the views of industry experts that the UK will not suffer the predicted serious over capacity issues being forewarned by some commentators. We acknowledge that there are large numbers of facilities in the development pipeline, but anticipate that the economies of supply and demand will stem the progress of less developed facilities, as their more advanced competitors reach completion and begin operation, thus suck.ing up any available feedstock and undermining the business plans of the less developed options
That said, we are certainly not ruling out such capacity issues at a more local and regional level, and that is why we recommend that contractors, technology providers, and investors perform detailed market research of the local picture around their planned developments.
Our experience is that these focussed studies, looking at competing local and regional drivers and existing facilities, etc. provide a much more reliable picture of the feedstock landscape, its threats and opportunities.
Such independent studies can provide critical value and impetus to developers needing to secure funding to progress their projects.
In order to reach these conclusions, we have assessed a surprisingly large number of contributory factors, which can be broadly associated with two overarching considerations: the amount of residual waste needing waste treatment facilities and the capacity of treatment facilities needing residual waste.
These factors are discussed in detail in an article written by Simon Gandy, Maria Vinogradova and Dr Adam Read, originally featured in Recycling and Waste World's February 2013 issue. Click here to read the full article.