Report release: UK EfW - Merchant Gate Fee report

We are pleased to announce we have just launched our first UK Energy from Waste – Merchant Gate Fee Report as a companion document to our annual UK Energy from Waste Statistics Report which is now in its fifth year.

The report analyses currently available UK-wide EfW gate fees based on a range of sources including Tolvik’s own databases. It also draws on experiences from other European EfW markets as a start to developing a more robust framework for reporting, analysing and projecting future UK Merchant EfW gate fees.

Extract from the 20 page report:

• Unlike EfW gate fees for Residual LACW which were reported recently by WRAP to have risen in line with inflation, merchant gate fees have on average risen by 3.1% – 4.4%pa over the last 5 years. These increases, at well above RPIx, have been seen across all contract types with gate fees being primarily ‘pulled up’ by the rapidly rising cost of RDF exports.

• As the EfW market in the UK expands and with new EfW projects generally less dependent on long term “anchor” Residual Waste supply contracts, so the proportion of “merchant” EfW capacity is rising.

• As a result, the merchant EfW market is projected to be worth over £0.5bn a year by 2025 – and future gate fees are expected to be less dependent on capex/opex derived financial modelling between EfW developers and waste suppliers and instead will be driven by wider market pricing.

• The report identifies the need for better quality data to support the development of a methodology to project future gate fees. Subject to sufficient interest, Tolvik is hoping to address this in early 2020 with the creation of a confidential and trusted Merchant EfW Gate Fee Monitor.

If you wish to obtain the full report, an electronic copy of Tolvik’s UK Energy from Waste – 2019 Merchant Gate Fee Report is available at a cost of £380 + VAT via or please do get in touch if you have any questions.