Refuse-Derived Fuel (RDF) Industry Analysis in Latin America

Refuse-Derived Fuel (RDF) Sales Outlook for Latin America (2024 to 2034)

Sales of refuse-derived fuel (RDF) in Latin America are calculated at US$ 81.2 million for 2024 and are projected to increase at a CAGR of 3.1% to reach US$ 110.19 million by 2034-end.

Refuse-derived fuel is an energy solution processed from various types of solid waste. It is often derived from the organic components of municipal solid waste (MSW) and other non-recyclable waste materials. The process involves separating and processing the combustible materials from the waste stream, which are then used as a fuel source.

Once the RDF is produced, it can be used as a fuel in various applications, such as in industrial boilers, power plants, and cement kilns. It provides an alternative energy source that helps reduce the dependence on traditional fossil fuels. Additionally, RDF production contributes to waste reduction and resource recovery by utilizing materials that would otherwise be disposed of in landfills.

• Fact.MR, a market research and competitive intelligence provider, estimates that demand for refuse-derived fuel for use in cement kilns in Latin America will increase at a CAGR of 2.8% from 2024 to 2034.

Use of refuse-derived fuel in Latin America's cement kilns is primarily driven by several factors, including environmental concerns, waste management challenges, and the desire to find alternative energy sources.

Latin American countries often face challenges related to waste management, including the increasing volume of municipal solid waste. Cement kilns require high temperatures for the production of clinker, a key component in cement. Using RDF as a supplementary fuel in cement kilns helps to improve energy efficiency. The combustible components of RDF, which include organic materials, plastics, and paper, serve as an alternative fuel source, reducing the reliance on traditional fossil fuels such as coal or natural gas.

Depending on the local availability and cost of RDF compared to traditional fossil fuels, the use of RDF in cement kilns is expected to offer economic benefits to cement manufacturers.

Report Attributes	Details
Refuse-Derived Fuel (RDF) Sales in Latin America (2024E)	US$ 81.2 Million
Forecasted Sales (2034F)	US$ 110.19 Million
Demand Growth (2024 to 2034)	3.1% CAGR
Low-Grade RDF Sales (2024E)	US$ 53.7 Million
Key Companies Profiled	SUEZ Recycling and Recovery Veolia Renewi

What’s Influencing Sales of Refuse-Derived Fuel in Latin America?

“Increasing Interest in Sustainable Waste Management Practices”

Governments and industries in Latin America are increasingly recognizing the importance of adopting sustainable waste management practices to address environmental concerns and promote long-term ecological stability. This high interest stems from a growing awareness of the environmental impact associated with traditional waste disposal methods, such as landfills, and the need to transition towards more sustainable alternatives. As urbanization and industrialization continue to shape the landscape of many Latin American countries, the volume of municipal solid waste generated increases, necessitating a shift in waste management strategies.

Refuse-derived fuel is emerging as a compelling solution within the broader framework of sustainable waste management. RDF represents a form of energy recovery from waste, wherein non-recyclable components of municipal and industrial waste are processed to extract combustible materials. These materials, including organic waste, plastics, and paper, are then transformed into a fuel source that can be utilized in various industrial applications. This approach aligns with the principles of a circular economy, promoting the idea that waste materials can be repurposed and contribute to the production of energy, rather than being discarded in landfills.

Country-wise Analysis

Which Factors are Driving Refuse-Derived Fuel (RDF) Sales in Brazil?

“Growing Industrial Demand for Sustainable Practices”

Attribute	Brazil
Market Value (2024E)	US$ 41.7 Million
Growth Rate (2024 to 2034)	3.4% CAGR
Projected Value (2034F)	US$ 58.26 Million

Industries in Brazil particularly the cement and energy sectors are increasingly recognizing the importance of incorporating sustainable practices into their operations. RDF, as a renewable and cleaner alternative to traditional fossil fuels, is gaining traction as a solution that aligns with both environmental and economic objectives.

What is the Demand Outlook for Refuse-Derived Fuel in Mexico?

“Supportive Government Initiatives and Circular Economy Promotion Increasing Use of RDF Solutions”

Attribute	Mexico
Market Value (2024E)	US$ 21.6 Million
Growth Rate (2024 to 2034)	3.1% CAGR
Projected Value (2034F)	US$ 29.31 Million

Mexico is actively promoting circular economy principles, emphasizing resource efficiency and waste reduction. Government initiatives supporting the circular economy and waste-to-energy solutions, such as RDF, create a conducive environment for increased sales and adoption within the industrial sector.

What’s Driving Sales of Refuse-Derived Fuel in Argentina?

“Rising Awareness and Environmental Consciousness Driving Popularity of RDF”

Attribute	Argentina
Market Value (2024E)	US$ 11.6 Million
Growth Rate (2024 to 2034)	2.5% CAGR
Projected Value (2034F)	US$ 14.85 Million

Growing awareness among consumers and businesses about the environmental impact of waste disposal is driving demand for sustainable solutions. RDF, by converting waste into a useful energy source, resonates with the environmental consciousness prevailing in Argentina.

Category-wise Analysis

Why is Municipal Solid Waste Widely Used for RDF Production?

“Abundance and Diverse Composition driving Use of Municipal Solid Waste in RDF Production”

Attribute	Municipal Solid Waste
Segment Value (2024E)	US$ 44.7 Million
Growth Rate (2024 to 2034)	3.5% CAGR
Projected Value (2034F)	US$ 63.05 Million

Municipal solid waste (MSW) is readily available in large quantities in urban and industrial areas across Latin American countries. As urbanization and population growth continue, the generation of MSW increases, providing a consistent and abundant feedstock for RDF production.

MSW is a heterogeneous mixture of various materials, including organic waste, plastics, paper, cardboard, textiles, and other combustible components. This diverse composition makes it suitable for RDF production, as different materials can be processed and converted into a homogeneous fuel with a standardized quality.

A majority of Latin American countries are facing significant challenges in traditional waste management methods, including overburdened landfills and limited space for waste disposal. Utilizing MSW as feedstock for RDF not only addresses these challenges by reducing the volume of waste sent to landfills but also provides an alternative solution for waste management.

Competitive Landscape

Leading companies in Latin America are investing heavily in state-of-the-art RDF production facilities and infrastructure. This includes advanced sorting and processing technologies, shredders, and pelletization equipment. Investing in modern and efficient infrastructure improves the quality of RDF produced, reduces operational costs, and enhances overall competitiveness.

Forming strategic partnerships and collaborations with waste management companies, technology providers, and industrial consumers is leading to shared resources, knowledge exchange, and mutually beneficial ventures, fostering a more integrated approach to the RDF value chain.

Segmentation of Refuse-Derived Fuel Study in Latin America

• By Fuel Type :

  • High Grade (>10 Mj/kg)
  • Low Grade (<10 Mj/kg)

• By Application :

  • Cement Kilns
  • Co-Combustion
  • Gasification
  • CHP
  • Others

• By Feedstock :

  • Municipal Solid Waste
  • Industrial Waste
  • Commercial Waste
  • Construction and Demolition Waste

• By Production Technology :

  • Mechanical Biological Treatment
  • Pyrolysis and Gasification

• By Country :

  • Brazil
  • Mexico
  • Argentina
  • Chile
  • Peru
  • Rest of Latin America