Waste to Energy Must Prove Itself to Take Off in U.S.

An aversion of debt investors to 'technology risks', combined with public reticence to provide capital or financial guarantees is holding up development of Waste to Energy projects in the U.S.

According to a recent report published by Renewable Waste Intelligence - Waste Conversion Technology: A Progress Report North America - this situation is exacerbated by the fact that most waste to energy projects have yet to achieve commercialisation.

However, in the report, John May, managing director at the invest¬ment bank Stern Brothers, explains that "the rating agencies have said to us that properly structured insurance can lead to a better rating on a piece of debt".

In terms of equity investment, as opposed to taking on debt, May goes on to add that while equity investors are prepared to take greater risks, the return they are looking for is typically in the region of 15% to 20%. 


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