Core Viewpoint - The Chinese waste incineration industry is facing challenges in certain regions due to insufficient waste supply, leading companies to expand their operations through acquisitions and cross-regional strategies [1][2][3]. Industry Overview - The competition in China's waste incineration industry has intensified, with the country's waste incineration capacity surpassing that of the US, Japan, and the EU combined [3][4]. - The proportion of waste treated by incineration has increased significantly from 9.8% in 2005 to 82.5% in 2023, while landfill treatment has decreased from 85.2% to 7.5% [3][4]. - The number of waste incineration plants has grown from 67 in 2005 to 1010 by October 2024, indicating a shift from "garbage siege" to "garbage scarcity" over approximately 20 years [4]. Company Actions - Companies like Zhongke Environmental and Shenzhen Energy are actively acquiring and investing in waste incineration projects to secure more waste supply [1][2]. - The average capacity utilization rate for domestic waste incineration projects is around 60%, with 16% of facilities operating below 50% capacity [5][7]. - Major listed companies in the industry include China Everbright International, Hanlan Environment, Sanfeng Environment, and others, with varying capacities and revenue figures [6][7]. Market Dynamics - The phenomenon of "insufficient waste" is recognized as a common issue within the industry, particularly in county-level administrative units where planning may not align with actual waste generation [7][8]. - Specific examples, such as the waste incineration plant in Weinan, Shaanxi, show that actual processing volumes can be significantly lower than designed capacities, leading to low utilization rates [8][9].

Core Viewpoint - The article discusses the transformation of the waste incineration industry in China, highlighting the shift from a "garbage siege" to a situation where there is insufficient waste to meet the operational capacity of incineration plants, leading to a competitive environment for waste collection and processing [4][15][33]. Group 1: Industry Overview - Ten years ago, the issue of "garbage siege" was prevalent, but now it is widely recognized that there is not enough waste to incinerate in China [4][15]. - The number of waste incineration plants in China has reached approximately 1,010, accounting for nearly half of the global total, with over 2,100 incineration plants worldwide [17][29]. - The average load rate of waste incineration plants in China is about 60%, indicating that 40% of capacity is underutilized [10][29]. Group 2: Market Dynamics - Waste incineration plants are competing fiercely for waste, with reports of facilities paying "introduction fees" to property companies for waste collection [5][9]. - Some cities are even reopening landfills to excavate buried waste, indicating a desperate need for more waste [7][8]. - The rapid increase in the number of incineration plants has led to a decline in the number of landfills, as incineration becomes the preferred method of waste management [31][33]. Group 3: Historical Context and Policy Impact - The shift in waste management policy began in 2003, transitioning from government responsibility to a model encouraging private investment through BOT (Build-Operate-Transfer) schemes [20][21]. - Various supportive policies have been introduced over the years, including increased subsidies for renewable energy projects and stricter pollution control standards, which have facilitated the growth of the waste incineration industry [21][22][29]. Group 4: Future Prospects and International Expansion - Despite achieving a 100% harmless treatment rate for waste, new incineration projects continue to emerge, with 55 new projects added in 2023 [30][29]. - As domestic waste generation declines, Chinese waste incineration companies are beginning to explore international markets, with over 50 projects established overseas, particularly in Southeast Asia and the Middle East [38][39]. - Chinese companies are leveraging their advanced technology and complete industrial chain to compete globally, transforming waste management into a profitable venture [40][43].

Core Viewpoint - The article discusses the transformation of the waste incineration industry in China, highlighting the shift from a "garbage siege" to a situation where incineration plants are struggling with insufficient waste supply, leading to a competitive "gold rush" for garbage [5][17][32]. Group 1: Industry Overview - Ten years ago, the issue of "garbage siege" was prevalent, but now it is widely recognized that there is not enough waste to incinerate in China [4][5]. - The average load rate of waste incineration plants in China is approximately 60%, with 40% of capacity remaining idle [9]. - As of now, China has 1,010 waste incineration plants, accounting for nearly half of the global total of over 2,100 plants [19][20]. Group 2: Market Dynamics - Waste incineration plants are offering incentives to property companies to secure waste, with reports of rebates of 50 yuan per ton [7]. - There is a trend of reopening landfills to excavate buried waste, with cities like Guangzhou and Shanghai participating in this underground competition [8]. - The number of planned shutdowns for incineration plants in 2023 reached 83,467 days, indicating significant operational challenges [15]. Group 3: Historical Context and Policy Impact - The year 2003 marked a turning point for the waste incineration industry in China, transitioning to a model that allowed private investment and operation [23]. - Policies promoting waste incineration have been introduced since 2006, leading to a rapid increase in the number of incineration plants [24][25]. - From 2017 to 2021, China added an average of 103 new waste incineration plants annually, with significant projects initiated in provinces like Henan and Hebei [26]. Group 4: Future Prospects and International Expansion - Despite achieving a 100% harmless treatment rate for waste, 55 new waste incineration projects were added in 2023, indicating ongoing growth in the sector [29]. - Chinese waste incineration companies are beginning to expand internationally, with over 50 projects in regions like Southeast Asia and the Middle East [35]. - The article highlights the competitive advantage of Chinese companies in waste incineration due to their advanced technology and comprehensive industry chain [36][37]. Group 5: Environmental and Economic Implications - The transformation of waste from a burden to an asset reflects a significant shift in the economic landscape, with waste incineration becoming a profitable industry [32]. - The article draws parallels between the evolution of waste incineration and the development of biofuels from waste, emphasizing the importance of commercial and industrial interests in driving these changes [38][39].