Growth consultancy firm Frost & Sullivan on Wednesday reported that the waste-to-energy concept was rapidly emerging as an important component of integrated waste management strategies and had positive growth prospects.

However, owing to the low cost of electricity and high capital investment required in waste-to-energy plants, the incentives for using energy generated from waste was moderately limited.

Frost & Sullivan stated that new analysis has found that the South African waste-to-energy market earned revenues of about $65,2-million in 2007, and was estimated to achieve a compound annual growth rate of 10,5% between 2007 and 2014.

“The rapid decline in the space for landfill sites and the increasing volumes of waste material have driven many countries to develop more cost-effective and sustainable solutions to tackle waste,” said Frost & Sullivan environmental technologies analyst Derrick Chikanga.

“Waste-to-energy generation can play a pivotal role in alleviating the pressure on landfills and the disposal of any waste material that is not recyclable in South Africa.”

The company noted that limited landfill space within an economic haul distance has made alternative waste treatment methods imperative, especially as people were strongly against landfill sites being located close to their homes.

The biggest challenge for companies entering the waste-to-energy market was the resistance they were likely to face from local communities, Chikanga stated.

Most communities in South Africa were opposed to having a plant located near their settlement. The key concerns for communities are the effects of emissions on public health, the odour and pollution associated with transporting waste for incineration.

“Environmentalists are strongly against the incineration of any waste material,” explained Chikanga. “Concerns over emissions and ash disposal are key aspects that are frequently pointed out by environmental groups.”

The ability to provide technology that was environmentally friendly and safe to operate was essential for companies that come under increased public scrutiny. Financial stability, strength and guarantees were important in acquiring such technology in this market, he added.