Global Refuse-Derived Fuel (RDF) Market

MARKET SCOPE:

The global refuse-derived fuel (RDF) market is projected to grow significantly, registering a CAGR of 8.1% during the forecast period (2026 – 2034).

The refuse-derived fuel (RDF) market is thriving because of the increasing global focus on sustainable waste management and renewable energy solutions. Governments and industries are looking for ways to reduce their dependency on landfilling waste, while generating energy from non-recyclable waste. RDF presents a viable solution to meet both waste-to-energy and waste reduction objectives, as regulatory agencies continue to support stricter landfill diversion mandates and push for circular economy practices. These drivers and the advancement of waste sorting and processing technology are improving the efficiency and quality of RDF production, making it a more inviting option for energy producers and industrial consumers.

Market drivers include growing acceptance of using alternative fuels in cement kilns, power plants, and district heating applications due to lower environmental impacts than with conventional fossil fuels. Additionally, RDF supports organizations in achieving sustainability objectives through greenhouse gas reductions and energy efficiency. As urbanization continues to drive consumerism, and, therefore, leading to greater amounts of municipal solid waste as a result of urban systems, there is greater demand for waste-to-energy opportunities, such as RDF. At the same time, increasing government support enacted to promote the transition away from landfill and incentivize the use of renewable energy while to follow waste management best practices, is increasing the wider application of RDF as a viable and sustainable energy option.

MARKET OVERVIEW:

Driver – Growing Emphasis on Sustainable Waste Management:

Sustainable waste management and circular economy initiatives push the growth of the RDF market globally. Municipal solid waste is indeed growing densely due to factors such as urbanization and industrialization. As the volume of municipal solid waste increases, governments and industries create pressure to decrease the reliance on landfills and greenhouse gas emissions. RDF simultaneously provides a way to divert non-recyclable waste from landfills and then upcycle it into fuel, which is both environmentally beneficial and generates renewable energy. This meets climate regulation targets and initiatives. RDF will only continue to progress as an attractive option for energy producers and as an option to aid waste management services.

Restraint – High Processing and Logistics Costs:

Despite its potential, the RDF market still faces considerable challenges, namely economic barriers associated with processing, transporting and handling. Creating RDF requires sorting, drying and shredding which are sophisticated technologies, and with that comes a cost. RDF also typically has lower energy density than fossil fuels leading to more expensive storage and transportation needs and less efficiency. Even if one were to see the cost-benefit of RDF, these issues are still barriers to adoption, especially in developing regions, where conditions (infrastructure, capital) are limited, impacting overall market penetration in a broader context.

Opportunity – Rising Demand for Alternative Fuels in Cement and Power Plants:

An opportunity exists in the ever-growing use and reliance on RDF as a fuel replacement in cement kilns and power generation plants, as part of corporate sustainability objectives to reduce corporate carbon footprints. Cement is an example of a highly carbon-intensive industry in which RDF can be a sustainable and economical alternative to fossil fuels such as coal and petcoke. Power generation plants and district heating plants are developing their fuel mix with RDF to meet renewable energy targets and emission reductions. As industries around the world accelerate their transition towards green energy sources, RDF can grow as a mainstream alternative fuel that creates opportunities in real growth opportunities for producers and technology providers.

SEGMENTATION ANALYSIS:

The municipal solid waste (MSW) segment is anticipated to grow significantly during the forecast period

The municipal solid waste (MSW) segment is expected to witness significant growth in the RDF market as urbanization and population growth continue to drive an increase in household and commercial waste generation. As landfills reach capacity and the push for more stringent environmental regulations increases, municipalities will be forced to adopt sustainable waste management practices. The generate RDF from MSW offsets non-recyclables and diverts recyclable waste away from the landfill and converts it into energy. Not only does this divert waste from landfills, but it is an energy source and would help municipalities meet their renewable energy targets and emission reduction targets, making RDF even more appealing to local governments and private waste firms.

Additionally, advancements in separation and processing technologies for producing RDF from MSW can enhance the quality and efficiency of general MSW separation and processing, thereby supporting market growth. As municipalities adopt more circular economy principles in their waste management systems, the MSW segment is positioned to play a critical role in scaling RDF production from MSW by addressing waste issues to create sustainable energy, while realizing both environmental and economic benefits.

REGIONAL ANALYSIS:

Europe region is set to witness significant growth during the forecast period.

Currently, Europe holds the largest share of the RDF market mainly due to the overall progressive state of the waste management infrastructure across European countries, strictly enforced environmental regulations, and an overarching commitment to increased adoption of renewable energy. Improved EU level regulations regarding landfill and measures related to a circular economy are responsible for the further movement of RDF production and its utilization throughout member countries. With the amount of RDF used in cement kilns (AND) being utilized in the form of Refuse Derived Fuel, and in the absence of any comparable regional scale RDF markets, it is possible to state that the largest users of RDF now are Germany, the UK and the Netherlands. Government policies, public awareness and attention to investment in modern waste processing technologies has established Europe as the most productive and innovative market for RDF globally.

Asia-Pacific region is anticipated to exhibit the highest growth due to the increasing urbanization and waste volumes from municipalities are posing difficulties in managing disposal of energy. Significant investments from countries face an enormous increase in municipal solid waste. There are continuous efforts to support Government initiatives to assist market development. There is a corresponding level of industrial commitment within the region to meet the growing demand for alternative fuels and the desire to reduce the reliance on fossil fuels for energy through alternative forms of transitions towards even more sustainable development. The continued growth of smart city initiatives continues to provide gaps within this for opportunities of RDF and energy and RDF. Asia-Pacific regional development has proven to be the most dynamic and fastest expanding.

COMPETITIVE ANALYSIS:

The global Refuse-Derived Fuel (RDF) market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.

Andritz Mewa GmbH

Águas de Portugal

BEWG Beijing Environment Group Limited

Carley Group Plc

Biffa

Mion Ventoltermica Depurazioni S.p.A

China Everbright Environment Group Limited

Eco-cycle

Country Style Recycling Limited

EcoUrja

FCC Austria Abfall Service AG

Estre Ambiental Inc.

Recent Development:

In August of 2025, China Everbright Environment Group Limited launched China's first anaerobic ammonia oxidation system for RDF waste-to-energy projects. The company also launched a 200 t/day small-tonnage furnace as part of its commitment to low-carbon, smart waste treatment technologies.

In April of 2024, Estre Ambiental Inc. announced the expansion of its RDF production facilities in Brazil to process municipal solid waste into high-quality RDF. This expansion reaffirmed its commitment to sustainable energy solutions across Latin America.

In September of 2023, Country Style Recycling Limited collaborated with local councils in the UK to improve RDF recovery from municipal solid waste. The collaboration with local councils will improve recycling rates while increasing the supply of alternative fuels to the cement industry.

SCOPE OF THE REPORT:

By Fuel Type

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

By Source

• Municipal Solid Waste (MSW)
• Commercial Waste
• Industrial Waste
• Construction & Demolition Waste

By Processing Method

• Mechanical Biological Treatment (MBT)
• Mechanical Heat Treatment with Sterilization
• Mechanical Heat Treatment (MHT)

By Component

• Pellets
• Fluff
• Bales

By Application

• Cement Plants
• Coal-fired Power Plants
• Lime Plants
• Combined Heat & Power (CHP)
• Gasification Plants
• Industrial Furnaces
• Pyrolysis Systems

By Region

• North America (United States & Canada)
• Europe (Germany, UK, France, Spain, Italy and Rest of Europe)
• Asia-Pacific (China, Japan, India, South Korea, Australia and Rest of Asia-Pacific)
• Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
• Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa and Rest of Middle East and Africa)

KEY REASONS TO PURCHASE THIS REPORT:

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Refuse-Derived Fuel (RDF) market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Refuse-Derived Fuel (RDF) submarket will be the main driver of the overall market from 2026 to 2034.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2034 and which country will lead the market in 2034. Show more