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Cost of incineration plant

Development of waste-to-energy facilities encounters a number of problems, and one of the biggest among them is the price. There are so many fairy tales about this business, so many fantastic technologies offered at very low prices, that it creates wrong expectations of clients concerning price level. A client should recognize average price level in industry before commencing the project.

Recently, we showed that there is no other reference point for any waste-to-energy technology except incineration plant, since it is most prevalent and approved thermal treatment technology in the world so far, do you like it or not. Every newly developed facility should be compared with price of incineration plant with similar capacity. But what is the price level of incineration and how does it change with capacity?

Basing on our construction experience and contacts with world top producers, we consider that price of incineration plant is well described by quite recent independent research, which abstract can also be downloaded in pdf from our site. It contains the following empiric formula:

I = 2.3507×C0.7753,
where I is the investment cost in million dollars and C is the plant capacity (1000 metric tons of waste/year).

CAPEX-of-incineration-plant

According to the formula, cost of 40,000 tpa plant is $41 mio, or $1,026 per ton of annual capacity. Medium-sized 250,000 tpa plant should cost $169 mio, or $680 per ton of annual capacity. These numbers give us first estimation of how much waste-to-energy is, and, what is more important, quite adequate dependence of CAPEX per ton of annual capacity on the capacity by itself (blue curve).

CAPEX
USD mio
Per ton
USD/tpa

Here is the simple calculator allowing to get values for a certain annual capacity.

We should understand that the formula discussed relates to municipal solid waste (MSW) to electricity plants and can vary depending on the technology implemented – it could be burning on grate or on fluidized bed. Hazardous medical and industrial waste processing costs significantly more, requires rotary kiln technology for big volumes and even more sophisticated flue gas cleaning systems.

There is a lot of talking on the market concerning the price of waste-to-energy facilities, and a number of companies making an attractive offers, but they all have one problem – nothing works. Client should ask low-cost bidders to show what do they have under commercial operation. And upon the predictable answer, return to commercially approved technologies. No matter what is it: pyrolysis, gasification, incineration or plasma treatment – price deviation from the above will be no more than +-50%.

It is the market. No miracles here.

Update: We unveiled the online service for evaluation of financial feasibility of a waste-to-energy power plant. If you know input parameters of your proposed plant, you can request finacial modelling by the link below.

Calculate Your Plant

14 Responses to “Cost of incineration plant”

By mohamed - 18 January 2017 - Reply

what is the exact figure for the Encore advanced pyrolysis tech plant? what is the most inexpensive project/ plant?

By WTE A - 18 January 2017 - Reply

In waste-to-energy sector, the less expensive technology (per ton of annual capacity) is incineration, due to a huge number of installations and long history. There are a number of producers, European are most reputable and more expensive. Some Chinese producers offer today relatively cheaper incineration equipment conforming, however, to all modern ecological standards.

Encore technology is mostly for tires, rubber, plastic, sludge etc. and, as other pyrolysis equipment, it is a bit more expensive than incineration.

Actual prices we disclosure only for certain solid project upon signing of NDNCA.

By Luis Hernández - 2 April 2017 - Reply

Which are the best cost-benefit European brand?

By WTE A - 4 April 2017 - Reply

All European brands are on more or less same price level. The final cost of such a complicated facility as waste-to-energy plant depends on many factors:

– location country
– type of incineration technology selected
– usage of periperal equipment such as generators, boilers, etc. by local suppliers
– architectural solutions
– waste composition and moisture, and so on.

So there is no simple answer to your question. Final total cost of the plant can be properly estimated only during the feasibility study process.

By Melifonwu Arinze - 21 April 2017 - Reply

Good day, I want to invite a Waste to Energy company to come invest in my community that boasts over 3million homes, offices and large markets with a lot of unused waste lying everywhere. I like the incinerator technology as it would get rid of the excess waste. Please, what Chinese Producers would you advise I contact for that. Thanks

By WTE A - 29 April 2017 - Reply

We are ready to support you on the basis of paid consulting or full development cycle. Please fill out Partner Questionnaire Form on out site https://wteinternational.com/development/partner-questionnaire/ and we will return with our standard NDNCA.

By Gary - 9 February 2018 - Reply

Hello. I tried to compute investment cost manually using the provided formulae (for a 100,000 tpa plant). I’m getting a pretty different cost. Are there additional variables factored in?

By WTE A - 10 February 2018 - Reply

Hello. First of all, you can use our calculator on the right. If you want to calculate manually for 100,000 tpa plant, then please take into account that C=100 (capacity in 1000 metric tons of waste/year). So, formula is

I = 2.3507×100^0.7753

I = 83.5 (in million USD)

So, CAPEX of a typical 100,000 tpa MSW incineration plant is 83.5 million USD.

You can request calculation of the financial model of your plant online: https://wteinternational.com/development/financial-model/waste-to-energy-model/

or hire us for consulting, development of feasibility study, construction supervision, etc.

By Prof. Issam A. al-Khatib - 6 March 2018 - Reply

I need a Waste to energy incineration plant with an annual capacity of 127,750 tons

What is the costs of establishing such a plant?

By WTE A - 6 March 2018 - Reply

You can use our calculator. Put into it 127750 and you will have USD 101 million.

By Oba Fortune Ojewe - 24 June 2018 - Reply

Hi, does this your formula give the price of the entire components of the Integrated Waste Management system or only the incinerator compotent.

By WTE A - 25 June 2018 - Reply

This is the cost of incinerator plant, including all its infrastructure: presorting facility, incineration, flue gas cleaning system, energy generation, buildings etc.

Integrated Waste Management system for a city includes waste collection, logistics, sorting, incineration plant, landfilling. It is a bigger system. Main cost in it has, however, incineration plant.

[…] cost of operating an environmentally efficient incinerator is difficult to estimate, but is easily more expensive than that of an American landfill or expense associated with recycling – that’s why it’s the […]

[…] cost of operating an environmentally efficient incinerator is difficult to estimate, but is easily more expensive than that of an American landfill or expense associated with recycling – that’s why it’s the […]

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