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Waste to wealth: why China is building incinerators around the world

China’s economic slowdown has left its waste-to-energy sector without enough trash to burn. So, companies are heading overseas

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People work at a garbage incinerator power station in Zhangye, a city in China’s northwestern Gansu province. Photo: Getty Images
Mandy Zuoin Shanghai
With their domestic profits narrowing and production capacity expanding, China’s firms are continuing to widen their overseas footprints in search of new, more lucrative markets. In this series, we examine China Inc.’s next phase of “going global” and the complex, challenging international environment its companies have chosen to enter.

China’s businesses have emerged as global players in a string of industries in recent years – from electric cars to solar panels. Now, the country is rapidly gaining a foothold in another field: waste processing.

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With China’s domestic incinerators lacking enough waste to burn amid an economic slowdown, waste-to-energy companies have started looking overseas for growth and have swiftly gained momentum.

Six months ago, Chinese companies had been involved in 79 overseas waste incineration projects spanning Asia, Europe, Africa and the Americas, according to a government-supported non-profit organisation. By the end of November, that figure had jumped to 101.

China’s waste-to-energy industry is undergoing a leap “from exporting mere technology to delivering a complete package of technology, standards, management and capital”, said Guo Yungao, secretary-general of the All-China Environment Federation’s energy and environment committee.

Waste-to-energy firms convert municipal solid waste into electricity through high-temperature incineration, earning revenue through fees paid by local governments and selling the generated power.

China built a large number of incinerators during the 2000s and 2010s as the country’s rapid urbanisation and economic growth led to a surge in municipal waste, giving the nation the world’s biggest incineration capacity.
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But the industry has been suffering from a severe shortage of burnable waste domestically over the past few years due to China’s economic slowdown, decelerating urbanisation and other factors.
Countries like Vietnam and Thailand are basically going through what China experienced 20 years ago – after rapid economic growth, waste volumes exploded
Du Huanzheng, Tongji University
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China Inc. goes global
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