Waste to Energy Project Financing

Waste-to-energy (WTE) is a form of biomass renewable energy and is the process of generating electricity (or heat) by destroying waste, commonly in the form of incineration. Often the energy is generating directly from the incineration process, other times the processes yield combustible fuels like methane or syngas. In its simplest form, it is burning garbage to produce electricity. Upon deeper investigation, it is an increasingly complex process in which various forms of waste are used as a feedstock, then super-heated to the point they break down to their most basic elements and compounds. At this point there are different approaches to capturing the energy. This is the most basic concept we see all waste to energy projects follow that approach seeking energy project financing. Following the energy capture phase, the air is treated in various ways to remove any remaining contaminants and harmful emissions before releasing low emission exhaust. The treatment of the exhaust from the waste-to-energy power plant largely depends upon the regulations, some countries or cities have tighter emissions restrictions than others.

When choosing a lender for your waste-to-energy project funding it is important to find one with experience and desire to work in the WTE financing industry. Many renewable energy lenders prefer to deal with commercial solar and wind project financing, not understanding the many unique challenges of funding waste-to-energy projects and ultimately failing to close. Our energy project specialists know the importance of WTE project, which reduces our reliance on landfills and helping to offset the solid waste of the communities they serve. We are happy to assist with any questions regarding your project or the products we can offer.

Some important things to consider with waste-to-energy and biomass projects in general are how they differ from other renewable energy packages; waste energy projects have a high failure rate, coupled with a lack of valuable real estate and assets means these biomass projects can be more difficult to get funded. As a segment, waste-to-energy project financing has greater requirements and its own unique challenges. This is why you need someone with experience and knowledge to help you secure your biomass financing, we understand the challenges faced and know how to deal with them.

While we can help with the challenges above, there are items that make your WTE biomass project more desirable to project lenders. Much like any industry, it is easier to secure funding for proven technology. If your biomass project is one-of-a-kind, it may be difficult to find a renewable energy lender willing to take a risk. It is also critical that biomass projects have secured long-term offtake and feedstock agreements, as these both provide a stable future which leads to a sustainable energy project.