After the goldrush: LatAm's US$210bn cleantech recycling opportunity

Headlines concerning electric power projects in Latin America are typically dominated by new capacity.

Gigawatts of wind and solar projects are operating and multiple more are in the pipeline.

That’s not to mention a growing portfolio of energy storage systems driven by Chile and, now, Argentina and Brazil, too. Then there is electromobility. 

An issue less spoken about is management of this future mountain of associated “waste” – solar panels, turbines, towers, batteries and more.

In terms of solar panels and wind turbines alone, the region has around 150mn and 16,000, respectively, according to a technical note from the Latin American and Caribbean Energy Organization (OLACDE).

A US$209 billion (bn) opportunity through 2050 exists, via recycling, reuse, and material recovery strategies, it states.

In an interview covering the topic and more, BNamericas asked OLACDE executive secretary and former Chilean energy minister Andrés Rebolledo about the opportunity and the associated challenges.

“The scale of this business is significant. There’s a considerable number of solar panels already installed, along with a fast-growing fleet of wind turbines,” Rebolledo said. “So, in the years ahead, we’re going to see this new circular economy emerge as a major opportunity.

“But more regulations are probably needed, along with the incorporation of new technologies — bringing in the technologies needed to dismantle these materials. What we wanted to do with this piece is send a signal about the urgency of addressing this issue and the economic opportunity that the circular economy of renewable energy represents in Latin America.”

Based on existing assets and taking into account accelerated growth of batteries and solar and wind power, this makes it possible to project the scale of accumulated material volumes toward the middle of the century, OLACDE says.

• 81Mt of total materials will be embedded in transition technologies.
• 36Mt will correspond to steel, equivalent to 63% of the region’s current annual production of the metal.
• 4Mt will be copper, a volume close to 40% of current regional annual production.
• 10Mt will correspond to aluminum, almost three times Latin America and the Caribbean’s current annual production.

OLACDE says in statement: “OLACDE argues that the circular economy opens up an opportunity for the region’s industrial development. Recovering critical materials could reduce dependence on virgin raw materials, cut strategic imports, create new regional value chains, generate specialized employment, and strengthen supply security for the future energy sector.

“The sector’s sustainability does not end with the installation of wind farms, solar parks, or batteries; it will depend on the region’s ability to efficiently transform technological waste into new productive resources.”

The UN’s regional economic commission ECLAC proposed a regulatory framework for handling of batteries used for electromobility in Latin America. Uruguay, which is working to boost electromobility penetration, is also advancing regulations regarding battery handling. Wheels are also in motion in Chile, where the biggest driver of battery waste is the utility-scale energy storage segment.

According to information in the BNamericas database, Latin America is home to more than 1,600 energy projects at different stages of development. Electromobility penetration is steadily growing.

Large-scale solar panels generally have a lifespan of 25-30 years, with the range for wind turbines generally around 18-25 years. In contrast, lithium-ion batteries used on the grid generally end up bound for the scrap heap sooner. Generation assets can also be fully or partially repowered, which still produces waste.

A wave of end-of-life materials is expected to build gradually through mid-century, starting with some batteries and older wind fleets, and picking up more sharply as the first large cohorts of solar panels reach end of life roughly around 2040.

The OLACDE technical note can be accessed here. 

The full interview with Rebolledo will be published in the coming days.

(The original version of this content was written in English)