Featured article: Renewable Waste-To-Energy
With the traditional energy markets being challenged by new innovative energy solutions, the demand for diversity is higher than ever – as a result, increasing interest is spreading for renewable energy and more sustainable energy sources.
Renewable energy technologies will continually change and adapt to global initiatives, but will we meet our nation’s renewable energy requirement by 2020, and could we benefit by helping achieve those goals?
Capital at Risk*
Before we continue, the graph below is an example of how a new renewable waste-to-energy company operates. In this example, the operating plant produces 3 types of income from recycled waste and sells the byproduct back to the market.
There will be a link at the bottom of the page where we give you the opportunity to request further information and/or invest alongside the owners of a UK renewable waste-to-energy facility. They are offering a fixed-term bond product of up to 12% per annum* for suitable investors.
Before you invest in anything, particularly an emerging alternative investment, it is beneficial you do your own research (or with the help of a financial advisor) so that you can make an informed decision. Here is our insight into the waste-to-energy market that we hope you may find useful combined with your own research. This information should NOT be taken as financial advice.
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This explainer video is for educational purposes only – on how a waste-to-energy plant operates.
Credit to: Engineering Timelines
An overview of this industry
Landfills Are Toxic And Can’t Keep Up With Demand
Even with progressive recycling measures, waste within the UK continues to grow at a rapid rate. The more waste, the more toxic greenhouse gasses and leachate (the liquid that compromises soil and groundwater) is emitted into the environment. Regardless of your stance on global warming, this increased level of toxicity has a measurable negative impact on the local and global environment. The UK’s Department for Environment, Food & Rural Affairs (DEFRA) agrees that landfills are no longer a sufficient or sustainable option for disposing of waste—which is where renewable waste-to-energy companies come to play.
Transforming Waste Into Clean Energy
Global carbon dioxide emission has increased by around 90% since 1970. Fossil fuel and industrial processes account for 65% of CO2 in the atmosphere—created by burning coal, natural gas, and oil. Even if emission is not your motivation, sustainable energy may be the larger draw.
Transforming waste into energy is not a new technology, but the technology has greatly improved in the last few years and is cleaner and more efficient. Waste such as paper, cardboard, wood, sawdust, and non-recyclable plastic can be converted into a sustainable energy alternative.
The process consists of utilizing modern thermal technology to decompose waste without toxic burning. The end product is a combustible solid fuel, bio-coal, liquid gas and syngas—clean alternatives to coal, natural gas, and oil This modern technology also yields more power per tonne than the previous waste to energy methods of burning waste.
With around 44% of the waste found in landfills being produced by the construction industry—there is no shortage of waste that can be converted into energy. In addition, municipal, industrial and medical waste can all be transformed into clean energy. This minimizes the strain put on local landfills and provides a sustainable energy solution.
Government Initiatives for Renewable Waste-To-Energy Firms
The UK is committed to meeting ambitious carbon reduction targets including the Renewable Energy Directive (2009/28/EC) to generate 15% of the nation’s energy requirements from renewable energy sources by 2020. This is just around the corner, meaning there is an expectation for major progress over the next two years. Longer-term the UK remains bound by its own Climate Change Act 2008, which imposes an 80% reduction in carbon emissions on 1990 levels by 2050.
Many investors find alternative markets to be at higher risk than standard investments, making renewable energy bonds that are incentivised by the government a potentially lower risk than many alternative options. These bonds help to support energy independence and clean energy and have the potential to reduce the amount of controversial fracking in the UK.
The renewable energy bond that we currently have features:
- Asset-backed security*
- Fully regulated security trustee*
- Attractive fixed-rate returns*
- Two and four-year bond options*
- Biannual income or deferred payment*
- Green investment in a fast-growing market
- Highly experienced team
- Sector incentivised by Governmental Renewables Obligation
Capital at risk*
Multiple Income Streams
As the UK population and industrial innovation continue to grow at a lightning pace, the demand for sustainable waste processing and sustainable energy alternatives will continue to grow. This leaves much room for growth and profitability, both as an alternative market investment and as a green investment. In addition to the growth potential, potential investors must also consider the multiple income streams. Currently, there are three:
- Waste deliver gate fees
- Product sales
- Eligibility for UK Government subsidies
The Tip Of The Iceberg
As support for waste to energy technology continues to grow, the potential for further advances is inevitable. The more efficient, and the more waste that can be transformed to energy—the more attractive this investment option. As with any other fairly new technology, there are likely to be additional investment opportunities that evolve or are created along the way. If the concept is proven, the government is likely to back additional energy initiatives.
What makes renewable waste-to-energy firms particularly attractive is that it solves three problems that are getting worse by the minute. The first, the overflowing and rapidly increasing amount of residential and industrial waste. The second, the growing demand for energy independence. The third, the rapid reduction of greenhouse gases, ground soil contamination, and water and ocean oxidation. As with any investment, there are no guarantees.
Now you know the basics and can dig deeper as you wish to learn more about renewable energy bonds.
- Capital at Risk
- Returns are not guaranteed. Bondholders may not get all monies invested.
- Investors must seek their own independent advice prior to making a decision to invest.
- The FCA does not regulate these offerings/bond – the benefits offered by the FCA will equally not be applicable.
- There are capital risks associated with this investment. Risks involved with the investment include illiquidity and no protection from the (“FSCS”) Financial Services Compensation Scheme.