Refuse Derived Fuel Market

Refuse Derived Fuel Market Outlook

The global refuse-derived fuel (RDF) market is anticipated to expand at a CAGR of around 3.5% over the forecast period of 2021-2031, with Europe leading this space by a long way.

Growing prerequisite of alternative fuels to avoid sole dependence on non-renewable energy sources has become an important buzz all across the globe. Refuse-derived fuel is a type of fuel derived from industrial, municipal, and other wastes. Selected wastes and byproducts with recoverable calorific value are used for the production of refuse-derived fuels, which serve the exact same purpose what mankind has continuously been thriving for.

Though the use of refuse-derived fuel is limited to very few end-use applications, dependency on fossil fuels can be compromised and implementation of waste to energy facilities is all set to see a brighter tomorrow. Growing demand from end-use industries and spread of refuse-derived fuel in other applications are contemplated to lodge the market for refuse-derived fuel to greater heights in the years to come.

Foremost upshot of the recently published revised report by Fact.MR on the refuse-derived fuel market is set to provide a detailed study of the market scenario, demand drivers, supply drivers, technological advancements, etc. The report also provides an elaborated taxonomy on key segments. The report drafts visionary insights on various market trends, along with the restraints, opportunities, and pricing analysis, including key success factors. This edition (2021-2031) brings readers up-to-date with key market developments, providing analysis on how manufacturers and other stakeholders are reacting to change. The study also expands on the previous competitive landscape section, and readers will get to know the key strategies of established players as well as new entrants.

Historical Trends Vs Future Market Projections  

Over the period of 2016-2020, demand for refuse-derived fuel experienced a minimal CAGR of 2.6%, being braced by cement kiln end-use application. Rising demand for refuse-derived fuel from this end-use industry accounted in pushing the market to experience modest growth.

In the year 2020, COVID-19 had a very huge impact on the demand for refuse-derived fuel, especially in the 2nd and 3rd quarters. A prodigious decline in the consumption of refuse-derived fuel was witnessed owing to the shutdown of most end-use industries. Soon after lockdown restrictions were eased, the market started getting back on track.

In FY 2021, this market is expected to witness increased demand owing to end-use industries recovering from the COVID-19 impact. Demand for refuse-derived fuel is set to expand at a constant rate over the long-run forecast period, at a CAGR of around 3.5% through 2031.

What Makes the European Region Hold Huge Potential for Refuse-derived Fuel?

In Europe, refuse-derived fuel is being used for heat and power generation, contributing to the hierarchy set by European Union. Certificate enlistment, application of management schemes for quality in treating municipal solid waste, and producing fuel, coupled with new technological advancements in fuel production processes have enhanced public acceptance and encouraged effective resource utilization in industries.

Increasing conscience of industries to opt for eco-friendly fuels has boosted demand for refuse-derived fuel. However, refuse-derived fuel standardization in Southern Europe still needs to gradually increase where the market is still developing.

Country-wise Insights

Why is Demand for Refuse-Derived Fuel Higher in the U.K. as compared to Other Countries?

The U.K. RDF market is estimated to capture around 20% share of the global in 2021. Standardized norms, application of certificates, along with inclination of public towards refuse-derived fuels backs the country to witness higher demand.

Belief of the public in the use of eco-friendly fuels and maintaining a clean environment has made it obvious for the U.K. to set up a large number of WFE plants due to the various refuse-derived fuel advantages, thus bolstering market growth in the country.

How is the Market for Refuse-derived Fuel Shaping Up in Brazil?

The market in Brazil is estimated to capture over 35% share in Latin America, and is set to witness huge growth by the end of 2031. The market here is mostly driven by demand from cement kilns, and same is anticipated to remain dominant till the end of the forecast period.

Moderate growth of end-use industries aligned with preference for waste to energy procedures charges the market in the country to expand at a solid 4.6% CAGR over the forecast period of 2021-2031.

What is Reason Behind Huge Change in Demand for Refuse-Derived Fuel in India?

Industrial revolution is one of the main reasons behind huge growth in demand for refuse-derived fuel in India. The other factor contributing to a massive change is the inclination of people towards incorporating ecofriendly fuels as alternatives for fossil fuels.

Inclination of end-use industries to use refuse-derived fuels sets the path clear for manufacturers of refuse-derived fuel in the country. It also bolsters in setting up new WFE plants, which opens avenues for new entrants and infuses a positive impact on the expanding market in India.

Category-wise Insights       

Which End-use Application Contributes to Highest Demand for Refuse-Derived Fuel?

Among the end-use applications considered, cement kilns account for over 56% of market value share. This end-use application is anticipated to sustain its presiding governance till the end of the forecast period.

In cement factories, refuse-derived fuel is mixed in different ratios with petrocoke to be used as a fuel in the production of cement. Emission values was among the most influencing factor to approve the use of refuse-derived fuel in cement factories. Success of refuse-derived fuel to meet the eligible criteria pushed it to be adopted by the cement industry, bolstering both, municipal and cement industries to taste economic and environmental benefits.

Why is Gasification Expected to Gain Traction Over the Coming Years?

Increasing R&D studies on refuse-derived fuel gasification is set to provide a thrust to the gasification application of RDF. Gasification of refuse-derived fuel using steam and air as gasifying agents is set to gain traction over the years to come.

Constant favorable outcomes of these studies on developing new gasification techniques using different gasifying agents and S/B ratios enables the production of syngas with varied percentages of hydrogen, carbon monoxide, carbon dioxide, methane, and others. This is anticipated to bolster demand for refuse-derived fuel as the years go by.

What are the Significant Barriers for Refuse-Derived Fuel Manufacturers?

Though there are many factors such as regulations and standardization of refuse-derived fuel technology that aid in flourishing the market, costs associated to procure fuel fraction with front-end processing restrains the market from witnessing greater deals. Also, unit yield of energy in refuse-derived fuel is observed to be lower, which contracts market growth to some extent.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & Kilo Tons for Volume
Key Regions Covered	North America Latin America Europe APEJ Japan and the Middle East & Africa
Key Countries Covered	U.S. Canada Mexico Brazil Germany Italy France U.K. Spain China Japan South Korea India GCC and Turkey
Key Segments Covered	Fuel Type Application and Region
Key Companies Profiled	SUEZ Recycling and Recovery UK Ltd. Renewi Biffa Country Style Recycling Limited EcoUrja FCC Austria Abfall Service AG ESTRE AMBIENTAL INC. Veolia, Carley Group Plc Mion Ventoltermica Depurazioni S.p.A
Customization & Pricing	Available upon Request

Key Market Segments Covered in Report

• Fuel Type

  • High Grade (>10 Mj/kg) Refuse-derived Fuel
  • Low Grade (<10 Mj/kg) Refuse-derived Fuel

• Application

  • Refuse-derived Fuel for Cement Kilns
  • Refuse-derived Fuel for Co-Combustion
  • Gasification of Refuse-derived Fuel
  • Refuse-derived Fuel for CHP
  • Others

• Region

  • North America
  • Latin America
  • Europe
  • Japan
  • APEJ
  • Middle East & Africa