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The Waste-to-Energy Plant Will Consume About 300 Thousand Tons of Waste Per Year and Feed More Than 320 Thousand People
Orizon Waste Valorization won the A-5 new energy auction held by the Ministry of Mines and Energy for electricity generation from urban solid waste, and Barueri will receive the region’s first waste-to-energy plant. It is a huge initiative by the company to combat the energy crisis in the country with a clean, renewable, and highly efficient matrix.
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Waste-to-Energy Plant Will Use the “Waste to Energy” Model as a Standard
The first Energy Recovery Unit in Latin America, under the “Waste to Energy” (WTE) model, will be implemented in Barueri (SP) by the subsidiary URE-BA. The company will be able to generate energy for the consumption of 320 thousand people, using 300 thousand tons of urban solid waste per year. There will be 20 MWe of installed power, generating 140.1 GWh/year for sale. WTE is recognized as an alternative for waste treatment in large urban centers, where there are no more large areas available for landfills.
This will be the first venture to adopt a solution that will contribute to the construction of the “Positive Waste Cycle,” transforming environmental liabilities into a source of renewable energy generation. It will be the first unit in the country to meet the principles of our National Solid Waste Policy, complementing the entire recycling process.
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The generation cost will be R$ 549 per MWh (megawatt-hour), a discount of 14% compared to the ceiling price expected in the competition. The value is equivalent to that of the last natural gas thermal plant to start operation in the country, GNA 1, in the north-fluminense, which receives R$ 552 per MWh generated.
Amidst the Energy Crisis, MME Holds Its First Auction with Possibility of Participation from Urban Solid Waste-Powered Generation Projects
“It represents an extremely relevant contribution, especially in this energy crisis scenario with a clean, renewable, and highly efficient matrix, as it is close to large urban centers”, said the company’s CEO, Milton Pilão, in a statement.
Energy generation from waste currently has a marginal role in the Brazilian energy matrix, but the sector expects significant growth following the approval of the new sanitation framework, which also provides for concessions for waste management in cities.
According to Abetre (Brazilian Association of Waste and Effluent Treatment Companies), Brazil generated 79 million tons of urban solid waste in 2019, a volume with the potential to produce enough energy to supply the entire state of Pernambuco. “The result aligns with our goal of modernizing the Brazilian park and replacing more expensive plants with cheaper enterprises, said the president of CCEE (Electricity Trading Chamber), Rui Altieri.
The government is holding two more energy auctions this year. The first, already in October, will contract thermal plants for operation over a five-year period, as an emergency measure to recover the reservoirs of hydroelectric plants.
About the Company
The central strategy of Orizon is to extract more and more value from the millions of tons of waste arriving at its so-called ‘ecoparks’ — whether by transforming them into biogas and generating energy from it, increasing the percentage of recycling and reuse of materials, or even selling carbon credits.
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