Chinese government gives direction to a stronger energy-from-waste industry in 2012

On 28 March 2012, the National Development and Reform Commission issued “The Notification on Improving Price Policy for Waste Incineration with Power Generation”. This document is stipulates energy-from-waste projects for the disposal of municipal waste. In China one ton municipal waste is currentlyis expected togenerate 280 KWh electricity for a standard electricity price of RMB 0.65 per KWh. This measure has been taken by the Chinese government to encourage energy-from-waste industry and preserve land resources.

On 19 April 2012, the State Council issued the National Municipal Waste Hazard-free Treatment for the period of the 12th Five-Year Plan. It clearly states that the hazard-free treatment ratio for municipal waste on the city-level shall reach no less than 90% by 2015, with total investment for the construction of municipal waste hazard-free treatment facility reaching RMB 263.6 billion. The capital city of each county shall be equipped with waste hazard-free treatment facility, with harmless treatment ratio of no less than 70%. The newly increased capacity of municipal waste hazard-free treatment will be 580,000 tons/day. Municipal waste incineration capacity shall account for 35% of the total hazard-free treatment capacity in China, and will reach 48% in the eastern areas of China.

On 16 June 2012, the State Council issued “12th Five-Year Planning for Energy Saving and Environmental Protection Industry”. It states that waste treatment and environmental protection service is to be regarded as one of the key area for the environmental protection industry. It places emphasis on the research and development of technology and equipment for percolate disposal. It also promotes large-scaled energy-from-waste and off-gas purification systems, small and medium-sized incinerators with high-efficiency disposal technology, as well as municipal waste pre-treating technology devices.