The conventional leather tanning technology is highly polluting as it produces large amounts of organic and chemical pollutants. Wastes generated by the leather processing industries pose a major challenge to the environment. According to conservative estimates, about 600,000 tons per year of solid waste are generated worldwide by leather industry and approximately 40–50% of the hides are lost to shavings and trimmings.

The energy generated by anaerobic digestion or gasification of tannery wastes can be put to beneficial use, in both drying the wastes and as an energy source for the tannery's own requirements, CHP or electricity export from the site. A large amount of the energy recovered is surplus to the energy conversion process requirements and can be reused by the tannery directly. Infact, implementation of waste-to-energy systems have the potential to make the industry self-sufficient in terms of thermal energy requirements. Tanneries are major energy users, and requires up to 30 kW of energy to produce a single finished hide. Thus, waste-to-energy plant in a tannery promotes the production of electricity from decentralized renewable energy sources, apart from resolving serious environmental issues posed by leather industry wastes.

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