EfW, landfill and RDF gate fees

The aim of the new section is to increase transparency within the marketplace and also help to provide some clarity to what is an expanding marketplace.

Energy from waste (EfW) continues to develop in the UK albeit at a relatively slow pace. But, its use is being encouraged by higher landfill tax rates. Some parts of the UK are seeing EfW prices substantially below landfill prices as operators seek to attract tonnages.

Competition

The plants are increasingly competing with the refuse derived fuel (RDF) market which is seeing substantial tonnages of material being exported to the Continent. Businesses large and small are currently baling material for shipment.

Landfill remains the cheapest option for disposing of waste if landfill fees alone are considered. These can be as little as 9 per tonne but when tax is added this brings the total to 81 per tonne for standard rate material. The attraction of sending material to landfill which is inert and attracts the lower rate tax of 2.50 is apparent when prices could be as low as 11.50 per tonne inclusive of tax.

The refuse derived fuel market remains a popular option although there are some uncertainties. There has been talk by at least one political party in Holland of imposing a tax on energy from waste which could put the gate fee price up for material from the UK.

And, while there has been good availability of plants in Holland so far, there are indications that there is less capacity available and so supplies may end up going to Germany or other countries.

Permits

Waste experts have a variety of views on RDF exports. Some have toldletsrecycle.com that the Environment Agency should be imposing time restraints on permits for handling of RDF for exports in order to encourage the construction of UK facilities. Others see the RDF export market as a perfectly valid route for waste materials.

There remain concerns that RDF exports are also containing significant amounts of materials which could be recycled.

letsrecycle.com always welcomes feedback on prices and price/gate-fee contributions. If you would like to contact us, please email: steve.e@letsrecycle.com