NO X , combined double filtration and wet scrubbing
3. oxidation - the combustible gases created in the previous stages are oxidised, depending on the selected incineration method, at flue-gas temperatures generally between 800 and 1450 °C
1.7 Economic information
[43, Eunomia, 2001] [64, TWGComments, 2003]
The economic aspects of incineration vary greatly between regions and countries, not only due to technical aspects but also depending on waste treatment policies. A study [43, Eunomia, 2001] of these aspects provided to the TWG gives information on the situation in EU MSs – some information from this study has been included in the annexe to this document.
The costs of incineration are generally affected by the following factors:
costs of land acquisition
scale (there may often be significant disadvantages for small scale operation)
plant utilisation rate
the actual requirements for the treatment of flue-gases/effluents, e.g. the imposed emission limit values can drive the selection of particular technologies that in some circumstances impose significant additional capital and operational costs
the treatment and disposal/recovery of ash residues, e.g. bottom ash may often be used for construction purposes, in which case, the landfilling cost is avoided. The costs of treatment for fly ash varies significantly, owing to the different approaches and regulations applied regarding the need for treatment prior to recovery or disposal, and the nature of the disposal site
the efficiency of energy recovery, and the revenue received for the energy delivered. The unit price of energy delivered, and whether revenues are received for just heat or electricity us for both are both important determinants of net costs
the recovery of metals and the revenues received from this
taxes or subsidies received for incineration and/or levied on emissions - direct and indirect subsidies can influence gate fees significantly i.e. in the range of 10 – 75 %
architectural requirements
development of the surrounding area for waste delivery access, and other infrastructure
availability requirements, e.g. availability may be increased by doubling each pump but this imposes additional capital costs
planning and building cost/ depreciation periods, taxes and subsidies, capital cost market
insurance costs
administration, personnel, salary costs.
The owners and operators of incineration plants may be municipal bodies, as well as private companies. Public/private partnerships are also common. The finance cost of capital investments may vary depending upon the ownership.
Waste incineration plants receive fees for the treatment of the waste. They can also produce and sell electricity, steam, and heat, and recover other products, such as bottom ashes for use as civil construction material, iron scrap and non-ferrous scrap for use in the metal industry, HCl, salt or gypsum. The price paid for these commodities, and the investment required to produce them, has a significant impact on the operational cost of the installation. It can also be decisive when considering specific technical investments and process designs (e.g. whether heat can be sold at a price that justifies the investment required for its supply). The prices paid for these commodities vary from one MS to another or even from one location to another.
In addition, significant differences occur due to the variations in emission requirements, salary costs and depreciation periods, etc. For these reasons, the gate fees in Table 1.8 are only comparable to a limited extent:
Member states Gate fees in EUR/t incineration plants Municipal waste Hazardous waste
Belgium 56 – 130 100 – 1500
Denmark 40 – 70 100 – 1500
France 50 – 120 100 – 1500
Germany 100 – 350 50 – 1500
Italy 40 – 80 100 – 1000
Netherlands 90 – 180 50 – 5000
Sweden 20 – 50 50 - 2500
United Kingdom 20 – 40 Not available
Table 1.8: Gate fees in European MSW and HW incineration plants [1, UBA, 2001]
It is important not to confuse the real cost of the gate fee 'needed' in order to pay for the investment and operation, and the market price that is adopted in order to deal with competition.
Competition with alternative methods of waste management (e.g. landfills, fuel production, etc.) as well as investment costs and operational expenses have an effect on the final gate fee at incineration plants. Competition prices vary greatly from one MS or location to another.
Table 1.9 shows (except where noted) the variation in municipal waste incineration costs across MSs. Note that the costs presented in Table 1.9 are different to those in Table 1.8 above (which presents data on gate fees):
Pre-tax2 costs net of
FIN None For gasification,
Electricity 0.034
Electricity 0.015 – 0.025 Bottom ash:25 - 30 Fly ash/air pollution
Electricity: 0.032 Bottom ash recycled (net cost to operator) fly ash circa 90 Notes:
1. These figures are gate fees, not costs
2. Pre-tax cost refers to gross costs without any tax.
Table 1.9: Comparative costs of MSW incineration in different MSs [43, Eunomia, 2001, 64, TWGComments, 2003]
The following table illustrates how the capital costs of an entire new MSWI installation can vary with the flue-gas and residue treatment processes applied:
Type of flue-gas cleaning
Specific investment costs (EUR/tonne waste input/yr) 100 ktonnes/yr 200 ktonnes/yr 300 ktonnes/yr 600 ktonnes/yr
Dry 670 532 442 347
Dry plus wet 745 596 501 394
Dry plus wet with
residue processing 902 701 587 457
Table 1.10: Specific investment costs for a new MSWI installation related to the annual capacity and some types of FGT in Germany
[1, UBA, 2001], [64, TWGComments, 2003]
Table 1.11 shows some examples of average specific incineration costs (1999) for municipal waste and hazardous waste incineration plants (all new plants). The data indicates that the specific costs for incineration are heavily dependent on the financing costs of the capital and, therefore, by the investment costs and the plant capacity. Significant cost changes can occur and depend on the set-up, such as the depreciation period, interest costs, etc. Plant utilisation can also have a significant influence on the incineration costs.
Cost structure
Incineration plant for Municipal waste with a
capacity of 250 ktonnes/yr in EUR 106
Hazardous waste with a capacity of 70 ktonnes/yr in EUR 106
Total investment costs 140 105
Capital financing cost
Total operational costs 29 12.5
Specific incineration costs
(without revenues) Approx EUR 115/tonne Approx EUR 350/tonne Note: The data provides an example in order to illustrate differences between MSWI and HWI. Costs of each and the differential between them vary
Table 1.11: Example of the comparative individual cost elements for MSW and HW incineration plants
[1, UBA, 2001], [64, TWGComments, 2003]
Energy prices:
[43, Eunomia, 2001] Revenues are received for energy sales. The level of support per kWh for electricity and/or heat generation varies greatly. For example, in Sweden and Denmark, gate fees are lower, at least in part because of the revenue gained from the sales of thermal energy as well as electricity. Indeed, in Sweden, the generation of electricity is often not implemented in the face of considerable revenues for heat recovery.
In some other countries, support for electricity production has encouraged electrical recovery ahead of heat recovery. The UK, Italy, and Spain, amongst others, have at some stage, supported incineration through elevated prices for electricity generated from incinerators.
In other MSs, the structure of incentives available for supporting renewable energy may also affect the relative prices of alternative waste treatments and hence competition prices.
The potential revenues from energy sales at waste incineration facilities constitute an incentive for all concerned parties to include energy outlets in the planning phase for incineration facilities [64, TWGComments, 2003].
Revenues received for recovery of packaging materials:
[43, Eunomia, 2001] These have also influenced relative prices. For example, in Italy and the UK, incinerators have received revenues associated with the recovery of packaging material.
It should be noted that, legislative judgements concerning recovery and disposal may influence whether incinerators can legally benefit from these revenues [64, TWGComments, 2003]
Taxes on incineration:
[43, Eunomia, 2001] In Denmark, the tax on incineration is especially high. Hence, although underlying costs tend to be low (owing primarily to scale, and the prices received for energy), the costs net of tax are of the same order as that of several other countries where no tax is in place. This tax along with a landfill tax were adopted in Denmark to promote waste treatment in compliance with the waste hierarchy. This has resulted in a large shift from landfill to recycling, but with the percentage of waste being incinerated remaining constant [64, TWGComments, 2003].