Refuse-derived fuel (RDF) is a type of fuel produced by processing municipal solid waste (MSW). RDF consists of combustible fractions of non-recyclable waste from households and commercial outlets that can be used to produce energy. It is an environment-friendly alternative to obtain thermal energy from waste. RDF reduces the toxicity and volume of waste material and can replace fossil fuels used for energy generation. This fuel allows better combustion than direct burning of MSW as it contains significantly less moisture.

The global refuse-derived fuel market is estimated to be valued at US$ 4.91 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Increasing demand for alternative energy sources owing to rising environmental concerns towards conventional fossil fuels is expected to drive growth of the refuse-derived fuel market during the forecast period. The use of fossil fuels like coal, oil, and natural gas for power generation is leading to a rise in harmful greenhouse gas emissions. RDF provides a cleaner energy option as it reduces the amount of biodegradable waste sent to landfills. Further, it lowers the dependence on landfills and minimizes methane gas emissions from dumped organic waste. This makes RDF an attractive alternative source of renewable energy.

SWOT Analysis

Strength: Refuse-derived fuel production allows for conversion of waste materials into usable energy sources, promoting sustainability goals. It provides an alternative to incineration and landfilling as a means of waste treatment. The process helps reduce the volume of waste sent to landfills by nearly 90%.

Weakness: The quality and composition of refuse-derived fuel can vary significantly depending on the waste streams and preprocessing methods used. This variability poses challenges for downstream combustion and co-firing applications where a more uniform fuel is required. Additionally, the separation and processing of waste into a refuse-derived fuel requires significant manpower.

Opportunity: More power plants and cement kilns are increasingly turning to refuse-derived fuel to supplement traditional fossil fuels due to rising energy costs. Substitution of refuse-derived fuel for coal can help industrial facilities reduce their emissions and carbon footprint. Local and national waste management regulations in several countries also incentivize refuse-derived fuel production.

Threats: Public resistance to waste-to-energy technologies remains a challenge in certain areas. Stricter environmental norms governing emissions from combustion could increase compliance costs. Supply security is also a concern since refuse-derived fuel production is dependent on waste generation and composition trends.

Key Takeaways

The Global Refuse-derived Fuel Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by the expanding waste-to-energy sector. The global refuse-derived fuel market is estimated to be valued at US$ 4.91 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030.

Countries in the Asia Pacific region have seen fast capacity additions for refuse-derived fuel production facilities due to the large waste volumes generated. China, in particular, has emerged as a dominant market, leveraging refuse-derived fuel for district heating and power applications. Europe currently dominates global refuse-derived fuel demand led by countries such as Germany, the UK, Italy and France with developed waste management infrastructure and renewable energy goals. Strong government incentives for waste recovery have driven refuse-derived fuel usage across cement kilns and waste-to-energy plants in the region. Going forward, emerging economies in Asia Pacific and Latin America are poised to offer high growth opportunities.

Key players: Key players operating in the refuse-derived fuel market include BD, Fresenius Kabi, ICU Medical, Smiths Medical, Medtronic, and B. Braun Melsungen, among others. Refuse-derived fuel production facilities around major cities are expanding capacities and modernizing preprocessing systems to cater to the rising demand from industries utilizing these fuels. Automated sorting and processing is also gaining ground to ensure quality and throughput. Contracts and partnerships are allowing key players to establish new production hubs and supply chains catering to local and export needs.

For More Insights, Read: https://www.newsstatix.com/refuse-derived-fuel-market-trends-growth-and-regional-outlook-2023-2030/