I am considering modifying Mischief’s engine cover to add a hinged panel to hold the garbage can - as was done on some factory finished boats. I’d like to hear from other boats that have this arrangement - whether it works well or not. I imagine heating garbage might be suboptimal when doing some extended motoring, but there’s an obvious workaround 
. Mischief was repowered with à Yanmar 3YM30, so this is the hot side of the engine, with alternator and heat exchanger.
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I’ve this setup. The garbage can get warm with my Yanmar 27hp, but never so much that I worry about combustion. My main worry has been that some garbage will escape and foul one of the engine belts! I’d say it’s a good setup as long as you’re thoughtful about overfilling and about flammable refuse. Not the place for your oil soaked rags 