Thermal Waste Utilization: An Important Component of the Urban Future
- yes or no Redaktion
- May 21
- 3 min read
Urban centers and cities are booming - with significant consequences: rising energy demand and growing mountains of waste. What was once considered a problem is now being recognized as a solution: Waste-to-Energy. This technology generates energy from waste - and does so quite successfully.
The raw materials are practically on our doorstep: waste. Even the UN states, “The world must leave the age of waste behind and turn waste into resources.” [1] Resource recovery is the principle behind “urban mining,” and specifically, “Waste-to-Energy.” Through thermal processing, waste is converted into electricity and heat. In this way, waste is not only disposed of but also reintegrated into the resource cycle.
Urban Growth Drives Energy Demand and Waste Volume
Urbanization Worldwide[2]
Resource Consumption in Metropolises[3]
Rising Waste Volumes[4]
Waste Management Costs[5]
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Tremendous Demand: Thousands of Waste-to-Energy Plants Needed Worldwide
In light of urban development and its challenges, the demand for Waste-to-Energy plants is substantial. According to environmental consultancy “ecoprog,” as of early 2024, there were more than 2,800 Waste-to-Energy facilities worldwide, with a total annual processing capacity of 576 million tons - equivalent to 16.5% of global municipal waste.[6]
To safely and cleanly process even half of the 1.3 billion tons of municipal waste currently ending up in environmentally harmful landfills[7], approximately 3,160 additional plants would be required. That’s as many as are expected to exist in total over the next eight years: by 2033, ecoprog forecasts a rise to about 3,100 plants with a total capacity of just over 700 million tons.[8]
Profit Potential: Waste-to-Energy Plants Operate Economically
A modern facility with an annual capacity of 150,000 tons generates around EUR 20 million per year - EUR 15 million from disposal fees (approx. EUR 100/ton) and EUR 5 million from energy sales. Investment costs are roughly EUR 100 million, with a payback period of 10 to 12 years. The internal rate of return (IRR) is between 6-12%, supported by stable income, subsidy programs, and additional revenues from metal recovery or CO₂ certificates.[9] Plants are especially profitable in cities with a guaranteed waste supply and access to district heating networks.
By comparison, recycling facilities receive lower gate fees (EUR 60-80/ton), earn less from energy sales, and are dependent on fluctuating raw material prices. According to the International Solid Waste Association (ISWA), their return typically ranges from 2-6%, depending on location and technology.
Promising Outlook: Urban Mining and Waste-to-Energy as Keys to the City of the Future
Waste-to-Energy is more than a disposal solution; it represents a new understanding of how to manage urban resources. Increasingly, cities are no longer viewing waste as a burden but as a valuable raw material reservoir. In this context, thermal recovery becomes an energetic component of urban mining.
This technology, in particular, plays an active role in sustainable development for international megacities and rapidly growing urban centers. It not only reduces the amount of waste sent to landfills but also delivers locally generated energy. This relieves pressure on both the environment and infrastructure, thereby strengthening urban resilience. The future lies in waste - if we use it wisely and responsibly.
