Waste to Energy International has exceptional expertise and practical knowledge in developing energy projects, which is essential for attracting alternative energy investments successfully in this sector. In contrast to the majority of other companies on the market, we have strong experience in the construction of real waste-to-energy and waste utilization objects.
We understand the technology and operating risks behind an alternative and, specifically, waste-to-energy projects. These factors give us the advantage to bring 100% of the funding necessary for constructing a viable plant.
The mechanism of returning the investments is more or less similar for any kind of alternative energy project and is based on the tariff for energy produced. Waste-to-energy projects are a bit more complicated and have three mechanisms for returning investments: energy tariff, tipping fee, and, sometimes, carbon credits. Returns via tariffs are regulated by the Power Purchase Agreement (PPA) to be signed with a state-owned grid company. In some cases, it should be secured by a Central Bank’s guarantee. Returns via tipping fee are regulated by the Concession Agreement to be signed with a local municipality taking the obligation to deliver waste to the plant.
Preliminary mnemonics to estimate the feasibility
On average, European waste-to-energy plants require:
- a feed-in-tariff (FIT), circa 120-160 USD per MWh, and
- a tipping fee (TF), circa 80-100 USD per ton.
We use a mnemonic formula to calculate a Feasibility Coefficient (FC):
FC = FIT+FT
So, EU plants work at FC = 200-260 USD. According to our knowledge of the market, the lower limit of the Feasibility Coefficient is 165 USD, where the profit tends to zero. Nevertheless, Waste to Energy International can propose an even lower combination of energy tariff and tipping fee!
There are some requirements for the investments projects we are working with. The tariff has to be pegged to USD for the return on investments not to depend on the volatility of the national currency. SPV has to be able to transfer the profit abroad. These requirements protect the investor and guarantee the return of the investments.
Waste to Energy International prepares a solid ground for prospective investments by minimizing initial risks in a country. We need a local developer whose responsibility is to sign the Power Purchase Agreement (PPA) and the Concession Agreement (CA). Also, we require the participation of a project sponsor to cover the feasibility study cost.
Developers, including project sponsor, have income from the development fee, which is paid during the construction period. When the project is strong enough, our investor can offer to developers so-called “sweat equity” – shares in the SPV without any investments, just for work done.
For a project sponsor, a small initial investment into the feasibility study gives fast and high profit, for the investor — a stable way to prove the financial efficiency of a future plant.
Alternative energy investments timeline
The project timeline is straightforward. Signed with our local developers, project sponsor and investor, the Memorandum of Understanding guarantees to commence funding upon completion of the feasibility study. When the feasibility study is completed, our investment partner takes a few weeks to secure the debt and the equity. The design and construction phase takes from 6 months to 2-3 years depending on the project complexity.
The trustworthy liaison with our investors has a long-established history. It is based on the mitigation of project-related risks and our ability to propose the most cost-efficient solutions. First of all, most of the competitors offer European equipment, which is on a par with ours in quality but is twice as expensive. Additionally, we guarantee the low cost of the funding via low-interest rate, grace period, etc. Finally, we have extensive knowledge of return-on-investment mechanisms and legal regulations specific to the alternative energy sector.
Professional risk management, long-standing relationships with investors, and maximal localization of the project development process make us a highly competitive and unique company in the market of alternative energy. With high efficiency in power production, we build a foundation for profitable collaborations and make another significant step in fighting global climate change.
WTEI project pipeline
Waste to Energy International has a number of alternative energy projects in the project pipeline. We will be proud to present these projects to international investor groups. Some of these projects have extensive databases available on the Internet – as an example, one of our projects has more than 1,000 electronic documents with a total size of almost 2 GB.
|Name||Energy Source and Output||Project Capacity, ton/year||Energy Output, MW||Synfuel Production, liter/hour||IRR on Equity, %|
|Egypt-2a||MSW to Electricity||350,000||23.0||N/A||15%|
|Egypt-2b||MSW to Electricity||1,000,000||65.0||N/A||15%|
|Egypt-2c||MSW to Electricity||350,000||22.0||N/A||15%|
|Algeria-1||MSW to Electricity||250,000||15.0||N/A||17%|
|Kazakhstan-1||MSW to Electricity||1,500,000||100.0||N/A||15%|
|Ukraine-4||Wind to Electricity||N/A||35.0||N/A||12%|
|Ukraine-5||Solar to Electricity||N/A||64.0||N/A||15%|
|USA-2||MSW+Plastic to Synfuel||163,200||0.0||2,768||24%|
|USA-3||Tires to Synfuel||114,240||0.0||5,300||17%|
|USA-4||Tires to Synfuel||195,840||0.0||9,084||20%|
|USA-5||Tires to Synfuel||48,960||0.0||2,271||20%|
|USA-6||Tires to Synfuel||48,960||0.0||2,271||21%|
More detailed information on these projects is possible to obtain upon signing a non-disclosure and non-circumvention agreement (NDNCA).
Proven Expertise in alternative energy Development and Construction
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