Analysis by Grant Thornton has shown a 60% increase in corporate finance and investment deals in the waste and recycling sector during the second half of 2012, and this mirrors positive growth forecasts from the Office of National Statistics.
Despite concern about growth in the wider economy, the waste and recycling sector is showing positive signs and more financial activity.
Private equity and institutional investors are increasingly interested in the sector, and organisations such as the Green Investment Bank all offer new sources of finance for companies able to demonstrate a strong business case.
We are also seeing major players such as Kier Group and Viridor making strategic investments in services and technologies.
Anaerobic digestion and advanced thermal treatment processes are all gathering momentum after many false starts. With the right raw ingredients of feedstock, technology appropriate to the feedstock and off-takes, they are becoming fundable.
Given the tariff support that can accrue, they are an alternative to traditional large-scale energy recovery facilities.
The recently announced Defra consultation on its Waste Prevention Plan also calls for examples of best practice and new commercial models, which will help to raise awareness of waste and recycling on the business and political agenda.
All these factors indicate positive growth prospects for the industry.
Director and head of waste, Grant Thornton UK