Chapter 1: Regional Overview

1.5 Major End-users of Environmental Technologies

This section aims to identify the major buyers of environmental technologies. However, there was a tendency among the surveyed product and service providers not to indicate their more lucrative sectors in order not to disclose market opportunities to potential competitors. Many respondents were therefore hesitant to reveal the major customers in their sector.

According to the survey responses, the major end-users tend to be municipalities, the power generation sector, and industry. The latter two categories are the major end-users of air pollution prevention and energy related technologies, while in the water, wastewater and waste management sectors, by far the major end-users of technologies were municipalities. Surprisingly, the transport industry was not found to be the largest end-user of noise, vibration and OHS technologies, but rather it was found to be manufacturing plants and construction companies.

Worth noting also is the trend that municipalities are among the major end-users of environmental technologies. This is largely due to the decline in industry production in the Baltics since the late 1980s and a shift in responsibility for the management of water, wastewater and waste to individual municipalities. As collection and disposal costs continue to rise, municipalities expect to be searching for more cost-effective solutions.

The rankings presented in Tables 1.14 - 1.17 give an indication as to the major end-users of specific environmental technologies in each of the surveyed countries.

Air

The major end-users of air quality related technologies is the energy and power generation sector, followed by industrial companies and transport. Most power plants are owned by the state through a majority share, while local heating stations have various forms of ownership. Many have become joint-stock companies while others are private or are owned by municipalities. The significance of the energy and power generation sector as consumers is expected to increase in the future as more stringent regulations are enacted for pollutant emissions and air quality.

Other significant end-users include industrial companies such as cement factories, the mining industry, food processing and the textile industry. Notably, neither small stationary pollution sources such as small industrial companies or transport are considered major end-users of air pollution reduction technologies mainly because they are not overly affected by current legislation.

Table 1.14 identifies the major end-users of air related technologies in the surveyed countries.

TABLE 1.14: MAJOR END-USERS OF ENVIRONMENTAL TECHNOLOGIES - AIR
Country Major End-users

Estonia Mining industry; transport; power plants
Latvia Energy sector; power plants; industrial companies; municipalities
Lithuania Power plants and heat generating stations; industrial companies; transport

Water and Wastewater

Municipalities or operators of municipal systems are the largest end-users of technologies related to water and wastewater. By examining the current state of municipal facilities, it is safe to say that this trend will continue for many years to come. Municipalities have the enormous task of overseeing the construction and management of water and wastewater systems in the Baltics, which involves immense financial investment. In Latvia for example, municipalities already purchase 45 percent of the water and wastewater technologies. Latvian municipalities are in great need of wastewater related technologies since 90 percent of their current discharge is insufficiently treated.

Other significant end-users include power stations and various industries such as chemical, food processing, pharmaceutical, and pulp and paper. The wastewater facilities in industrial companies are generally in poor condition and require significant modernization. Higher discharge levels are expected in the future as production begins to increase again.

Table 1.15 identifies the major end-users of water and wastewater related technologies in the surveyed countries.

TABLE 1.15: MAJOR END-USERS OF ENVIRONMENTAL TECHNOLOGIES - WATER AND WASTEWATER
Country Major End-users

Estonia Municipalities; power stations; chemical industry; food processing industry; pulp and paper industry; agriculture
Latvia Municipalities/municipal services; various types of manufacturing; pharmaceutical industry; textile industry
Lithuania Municipal waste water service companies; hospitals; chemical industry; food industry; Textile industry

Waste Management

Municipalities and municipal service providers (contracted companies) are the largest end-users of waste-related technologies such as waste collection, landfilling or incineration in the Baltic States. This is explained by the fact that municipalities are wholly responsible for the entire waste management process from collection to disposal. In the next few years, as new legislation is introduced regarding solid waste, the demand for waste-related technologies can be expected to increase.

Municipalities in Lithuania currently manage over 800 landfills. The vast majority of these sites are in poor condition, many have been abandoned and all of them require significant modernization. Industry in the Baltic countries is slowly being forced to dispose of their waste effectively.

In Lithuania, much of the secondary raw material waste is wood, nonferrous metals and glass. The current collection and disposal system is not well-organized, and the waste is therefore not being disposed of effectively. Other important end-users of the waste management technologies are the oil-shale and cement industries, followed by construction companies. Table 1.16 outlines the major waste technology end-users.

TABLE 1.16: MAJOR END-USERS OF ENVIRONMENTAL TECHNOLOGIES - WASTE MANAGEMENT
Country Major End-users

Estonia Municipalities; oil-shale industry; cement manufacturing industry; construction companies
Latvia Municipal waste management services; other industries (construction, textile, paper, food)
Lithuania Municipalities; municipal service operators; landfill operators; largest waste producers

Energy

The energy and power generation sector is the largest end-user of related technologies in all three countries. It is becoming increasingly important for this sector to decrease emissions and increase efficiency. Energy generation is rising annually in Estonia, Latvia and Lithuania, and therefore industrial energy companies are expected to remain the greatest end-users of energy-related technologies.

Other significant end-users are municipalities in their control of domestic heating systems for their local area. Reforms in domestic heating are expected within the next few years as municipalities convert to gas as their primary heating source.

While energy saving technologies are becoming increasingly important, industrial branches are also becoming more interested in heat recovery and energy-saving technologies in the future as their production increases and energy costs rise.

Table 1.17 lists the energy-related end-users in order of importance.

TABLE 1.17: MAJOR END-USERS OF ENVIRONMENTAL TECHNOLOGIES - ENERGY
Country Major End-users

Estonia Power generation; manufacturing; heavy industry; pulp and paper industry
Latvia Energy sector; municipal power generation; other industrial sectors
Lithuania Power plants; heat generating stations; municipal services; other industrial companies


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