How Trash Makes Money In The U.S.

Summary

The North American waste management market, valued at $208 billion in 2019, is projected to reach $229 billion by 2027, driven by environmental regulations and waste surge. Despite being one of the world's most wasteful nations, the US sees waste as a lucrative industry with private companies like Waste Management and Republic Services leading the sector. Modern landfills are engineered to protect the environment while generating revenue through tipping fees. Innovative practices such as landfill mining for metals and energy recovery are transforming waste into a valuable resource, bolstered by government subsidies and the pursuit of a circular economy.

Takeaways

• 💼 In 2019, the North American waste management market was valued at $208 billion and is expected to grow to $229 billion by 2027.
• 🌱 The U.S. generates 239 million tons of garbage annually, averaging about 1700 pounds per person.
• 🏭 Modern landfills are well-engineered to protect human health and the environment, with strict regulations enforced by the EPA.
• 💸 Landfills primarily generate revenue through tipping fees, charging per ton of waste brought to the site.
• 📈 The average tipping fee in the U.S. was $53.72 per ton in 2020, with significant regional variations.
• 🔝 Private companies like Waste Management and Republic Services have seen significant growth and stock performance in recent years.
• 💰 The cost of constructing, operating, and closing a landfill can range from $1.1 to $1.7 million, with ongoing financial obligations post-closure.
• 🔄 Landfill mining and reclamation is a process that extracts and reprocesses materials from older landfills, recovering valuable assets like metals.
• ♻️ Landfills can be a source of energy through the capture and conversion of methane gas into electricity or fuel.
• 🌐 The U.S. Energy Information Administration reports that landfill gas generates about 10.5 billion kilowatt-hours of electricity annually.
• 🌿 The waste management industry's profitability is tied to viewing garbage as a resource, promoting a circular economy and sustainable practices.

Q & A

What was the size of the North American waste management market in 2019?

The North American waste management market was worth $208 billion in 2019.

What is the projected growth of the waste management market by 2027?

The waste management market is expected to grow into a $229 billion industry by 2027.

How much garbage does the United States generate annually, and what is the per capita amount?

The United States generates 239 million tons of garbage annually, which is about 1700 pounds per person.

What are the two major federal acts that have influenced waste management practices in the US?

The Solid Waste Disposal Act of 1965 and the Resource Conservation and Recovery Act of 1976 have significantly influenced waste management practices.

How do modern sanitary landfills prevent harmful liquids from leaking?

Modern sanitary landfills use a reinforced plastic liner to prevent harmful liquids from leaking out.

What is the average tipping fee for municipal solid waste landfills in 2020, and how much does it translate to in annual revenue for small and large landfills?

The average tipping fee in 2020 was $53.72 per ton, which translates to approximately 1.4 million a year for small landfills and 43.5 million a year for large landfills.

Why do tipping fees vary widely across different regions in the US?

Tipping fees vary due to factors such as population density, disposal options, and the cost of constructing and operating landfills.

What are the financial obligations of landfill owners even after the landfill has been closed?

Landfill owners must adhere to the Resource Conservation and Recovery Act's Subtitle D, which includes managing and overseeing the site for 30 years after closing, even after it has stopped operating.

What is the current ownership trend for landfills in the United States?

Private companies have replaced municipal governments to own and operate the majority of landfills in the US, with more than half of all municipal solid waste landfills being privately owned.

How do landfills generate revenue beyond tipping fees?

Landfills generate additional revenue through landfill mining and reclamation, extracting and reprocessing materials from older landfills, and by capturing methane gas to produce fuel and generate electricity.

What is the significance of landfill gas to energy projects, and how much electricity do they generate annually?

Landfill gas to energy projects generate about 10.5 billion kilowatt hours of electricity every year, enough to power roughly 810,000 homes and heat nearly 540,000 homes each year.