Core Insights - The Chinese waste incineration industry is facing a paradox of overcapacity and insufficient waste supply, with two-thirds of surveyed incineration plants reporting a lack of garbage to process [2][3][7] - The shift from "garbage encirclement" to "garbage scarcity" has been marked by a significant increase in incineration capacity, yet the average utilization rate remains around 60% [2][4][7] - The industry is urged to diversify operations, such as providing steam and heat, due to declining waste supply and reduced government subsidies [3][11][15] Industry Overview - The number of waste incineration plants in China has surged from over 100 to more than 1,000 in the past two decades, with incineration capacity rising from 3.3 million tons per day to 86.18 million tons per day [2][3] - The average daily incineration capacity increased from 23.8 million tons in 2016 to 115.5 million tons in 2024, yet the industry operates at an average load factor of less than 60% [5][7] - The government has historically supported the industry through subsidies, but recent policy changes have led to a reduction in these financial supports, increasing operational challenges for incineration plants [11][12][13] Challenges Faced - The decline in waste supply is attributed to overbuilding of incineration facilities, overly optimistic projections of waste generation, and effective waste sorting practices that reduce the amount of burnable waste [7][8] - The average waste disposal fee has increased significantly, from around 60-70 yuan per ton to over 100 yuan, placing additional financial pressure on local governments [12][13][14] - Some regions are resorting to excavating previously landfilled waste to meet incineration needs, although this approach is costly and complex [8][9] Future Trends - The industry is expected to continue evolving, with a focus on expanding market reach and exploring new business avenues such as heat and gas supply [15] - Chinese waste incineration companies are increasingly looking to international markets, with over 80 overseas projects reported [3][9] - The anticipated increase in waste processing capacity to 800,000 tons per day by the end of 2025 may further exacerbate the supply-demand imbalance if waste generation does not keep pace [7][11]
中国垃圾是如何不够烧的？