Number of U.S. Hazardous Waste Combustion Facilities Dramatically Declining

Since 1996, EI Expects a Decline of 30 percent by 2005

Contact: Cary Perket Phone: 858/488-4760

February 15, 2001 – For Immediate Release

Minneapolis, Minnesota — Environmental Information Limited (EI), the nation’s leading business research service on the hazardous waste marketplace, has issued a new report entitled: The Expected Impact of MACT Standards on Hazardous Waste Combustion Facilities. The research effort found that the current universe of hazardous waste combustion facilities is significantly lower than previous EPA estimates and will continue to be reduced during the next three years due to MACT’s more stringent emission standards.

Previously, the EPA estimated over 170 combustion facilities would be impacted by the recently promulgated MACT standards. The figure proved to be significantly overstated. "EI research identified only 122 combustion facilities that were actually subject to the MACT requirements," says EI Reseacher Paul Evans. "This group of facilities subject to MACT includes combustion facilities operated at manufacturing plants, government-owned incinerators primarily utilized to destroy defense wastes, commercial boilers and industrial furnaces (BIFs) that utilize hazardous waste as fuel and commercial hazardous waste incinerators." The universe does not include boilers and industrial furnaces at manufacturing plants that utilize hazardous waste as fuel, which are not subject to MACT at this time.

"Comparing the universe of hazardous waste combustion units existing in 1996 that would have been subject to the recently finalized MACT emission standards, EI estimates 30 percent have ceased — or will cease — hazardous waste combustion operations by 2005," predicts Evans. The study also points out that several facilities with multiple combustion units will continue to burn hazardous waste, despite ceasing to burn at one or more individual kilns at the facility.

"Many of the captive combustion facilities that have been closed in recent years seem to be small units that would be more expensive to operate under the new MACT emission limits than to find alternative waste treatment or disposal methods," comments Evans. "The impending MACT emission limits provided most facility operators with an incentive to rethink whether continuing their own hazardous waste combustion operations makes sound economic sense. This research demonstrates that some of them have decided they should discontinue hazardous waste operations and pursue alternative waste management options."

EI’s research has considerable implications for environmental equipment manufacturers and environmental services providers that market the hazardous waste combustion facilities. These firms will be experiencing a temporary increase in demand as the continuing combustion facilities upgrade their facilities as well as opportunities from those opting to cease hazardous waste operations undergo closure as a result of the MACT standards. However, after that, the number of customers the market can support will be significantly smaller.

EI believes that the market trends should incite mixed emotions in the environmental equipment and services sectors. "This research shows that the market is good new/bad news for environmental services and vendors serving the combustion sector," says EI Senior Analyst Cary Perket. "The good news is that there should be good business opportunities in the immediate future to assist with MACT upgrades and closures. The bad news is that the long-term market will be significantly smaller and may not be large enough to support the environmental services and vendors who have previously served the market."

"From a broader policy perspective, these closures may be viewed by some as significant progress to eliminate combustion as a thermal treatment alternative," says Perket. "This report does not support that conclusion. Rather, it only indicates combustion is taking place at a smaller number of more cost-effective facilities, not that combustion is being reduced as a waste treatment alternative. For example, commercial incineration facilities will be receiving wastes from captive combustion facilities that will be ceasing hazardous waste operations or those that intend to burn hazardous waste under MACT that need to outsource some of their wastes. Combustion is in many cases the most reliable method for destruction of the waste."

This report was undertaken for environmental businesses with the primary goal of the six-month research effort to provide environmental businesses with market research on the impact that the EPA’s MACT standards would have on this important group of hazardous waste facilities. Important environmental business stakeholders in the MACT outcome are equipment providers to combustion units and service providers supporting ongoing combustion operations; environmental and industrial services involved in the decommissioning of combustion units and customers requiring continuing commercial hazardous waste services.

This report was undertaken by EI Custom Research, a division of Environmental Information Ltd. that specializes in market research for environmental services and technology. Periodically, EI Custom research will prepare multi-client projects when a significant number of clients express similar market research interests. Such reports are typically offered for sale to other parties willing to proportionately share the research costs. The cost per sponsor for The Expected Impact of MACT Standards on Hazardous Waste Combustion Facilities research is $3,000.

Further information on this report, as well as the EI Digest can be found on ENVIROBIZ.COM (www.envirobiz.com), one of the Internet's leading sites for proprietary and public environmental business information. Based in Edina, Minnesota, Environmental Information, Ltd. (EI) specializes in market research on the environmental services and technology marketplace. EI provides original subscription-based research services. Among the services is the comprehensive compilation of the largest directory and database of environmental service firms, landfills and treatment, storage and disposal (TSD) facilities in North America. For further information, contact customer service at 952/831-2473.

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