Refuse Derived Fuel (RDF) and Solid Recovered Fuel (SRF) Market Size, Share, Growth, and Industry Analysis, By Types (RDF,SRF), Applications (Cement Plants,Coal Fired Power Plants,Combined Heat and Power (CHP),Other), and Regional Insights and Forecast to 2033

Refuse Derived Fuel (RDF) And Solid Recovered Fuel (SRF) Market Size

Global Refuse Derived Fuel (RDF) And Solid Recovered Fuel (SRF) Market size was USD 6.35 Billion in 2024 and is projected to touch USD 6.76 Billion in 2025 to USD 10.85 Billion by 2033, exhibiting a CAGR of 6.09% during the forecast period 2025–2033. The market is expected to see a 22% increase in adoption across industrial sectors by 2030, with over 45% of the growth driven by cement manufacturing. Europe is forecasted to retain over 40% of global market share, while Asia-Pacific’s share could rise by 9% in the same period.

The US Refuse Derived Fuel (RDF) And Solid Recovered Fuel (SRF) Market is anticipated to grow its share from 18% to 22% between 2024 and 2033, fueled by a 12% rise in waste-to-energy capacity and a 15% increase in cement industry consumption of RDF. Over 55% of new US RDF facilities are expected to integrate advanced drying technologies by 2030, improving calorific value and efficiency.

Key Findings

• Market Size: Valued at $6.35 Bn in 2024, projected to touch $6.76 Bn in 2025 to $10.85 Bn by 2033 at a CAGR of 6.09%.
• Growth Drivers: Demand rising by 25% in cement sector, 18% in power generation, 12% in industrial heating applications.
• Trends: 20% increase in RDF calorific value, 15% rise in SRF exports, 10% adoption of modular production units.
• Key Players: Veolia Environnement S.A., SUEZ Group, Biffa, FCC Environment, Renewi plc.
• Regional Insights: Europe 42%, North America 28%, Asia-Pacific 22%, Middle East & Africa 8% of total market share.
• Challenges: Processing costs up 14%, feedstock contamination up 9%, logistics expenses up 11% globally.
• Industry Impact: Emissions reduced by 18%, landfill diversion improved by 22%, energy efficiency increased by 12% globally.
• Recent Developments: Production capacity expanded by 20%, calorific value improved by 16%, contamination rates reduced by 12%.

The RDF and SRF market is characterized by a strong alignment with global sustainability goals and rapid technology adoption. Innovations in sorting, drying, and feedstock processing are enhancing product quality, while regional policy frameworks continue to drive adoption rates upward. With landfill reduction targets and renewable energy incentives, market penetration is expected to accelerate, offering both environmental and economic benefits.

Refuse Derived Fuel (RDF) And Solid Recovered Fuel (SRF) Market Trends

The global refuse derived fuel (RDF) and solid recovered fuel (SRF) sector is witnessing notable shifts driven by increasing waste‑to‑energy adoption and sustainability mandates. Approximately 35% of the global RDF/SRF volume is consumed in Europe, while North America accounts for around 27% and Asia‑Pacific contributes roughly 24%. Cement plants and coal‑fired power generation together account for nearly 45% of RDF/SRF usage, with cement kilns alone taking up over 20%. In Europe, landfill diversion policies have driven a surge in RDF use, increasing its share by approximately 5 percentage points over recent years. The U.S. RDF/SRF market has grown rapidly, with nearly 100 % growth projected in volume due to heightened policy incentives and energy recovery schemes. Environmental regulation tightening has led to SRF chlorine content limits: class‑1 SRF with ≤ 0.2 wt % Cl is now increasingly specified, and materials ≤ 0.078 wt % are preferred to minimise dioxin emissions in cement kilns. Rising waste volumes in urbanising regions push the municipal solid waste source share above 50%, with industrial and commercial waste making up the balance. As a result, mechanical processing remains dominant, accounting for over 65% of fuel preparation methods, while thermal and hybrid treatments are gaining traction.

Refuse Derived Fuel (RDF) And Solid Recovered Fuel (SRF) Market Dynamics

DRIVERS

Rising waste‑to‑energy demand

As landfill diversion targets tighten under stricter environmental policies, up to 55% of non‑recyclable municipal waste is now redirected into RDF/SRF production streams across leading countries. This shift is driven by the urgent need to reduce landfill volumes, cut methane emissions, and generate alternative energy sources. The transformation process converts mixed waste into a consistent fuel with stable calorific value, enabling industries such as cement manufacturing and power generation to reduce fossil fuel dependence. This growing diversion rate highlights a broader trend toward circular economy practices, where waste is repurposed into valuable energy rather than disposed of in landfills.

OPPORTUNITY

Expansion into cement and power use

Cement kilns and coal‑fired power plants are increasingly adopting RDF/SRF as a sustainable alternative to traditional fossil fuels, with these two sectors now accounting for nearly 45% of total global utilization. This uptake is fueled by regulatory incentives, lower greenhouse gas emissions, and significant operational cost savings compared to conventional fuels. Cement kilns benefit from the high calorific value and consistent quality of RDF/SRF, while coal‑fired plants use it to reduce coal consumption and carbon intensity. With advancements in preprocessing technology and growing environmental commitments, there is strong potential for this utilization share to rise substantially in the coming years.

RESTRAINTS

"quality consistency concerns"

The heterogeneous nature of RDF/SRF feedstock results in significant variability in fuel quality, with calorific values showing fluctuations of up to 30% between batches. Such inconsistencies arise from differences in waste composition, moisture levels, and contamination levels in the raw material stream. Additionally, chlorine concentrations can sometimes exceed acceptable thresholds, posing risks of equipment corrosion, pollutant emissions, and operational inefficiencies in industrial applications. These quality variations create challenges for industries requiring stable, predictable fuel performance, such as cement kilns and power plants. Without enhanced preprocessing, sorting, and standardization, uniform large‑scale industrial adoption of RDF/SRF remains restricted despite its environmental advantages.

CHALLENGE

"chlorine emission limits"

Cement producers are placing stricter quality requirements on SRF, increasingly demanding chlorine levels below 0.2 wt %, and in many cases aiming for ultra‑low thresholds under 0.078 wt %. These limits are necessary to prevent the formation of harmful pollutants such as dioxins and furans during high‑temperature kiln operations, ensuring compliance with environmental regulations and protecting equipment from corrosion. However, meeting these specifications is challenging due to the variable nature of incoming waste streams. Achieving such purity often requires advanced sorting, washing, and preprocessing systems, which can be costly and time‑intensive, ultimately restricting the volume of SRF that meets the stringent industry criteria.

Segmentation analysis

Segmentation of the RDF/SRF market shows a clear differentiation by specific fuel type and application. High‑grade RDF and high‑grade SRF together make up more than 60 % of total production. Municipal solid waste remains the largest feedstock, accounting for over 50 % of supplies, while industrial and commercial sources fill the remaining share. Applications are led by cement kiln co‑combustion and power generation, which together absorb about 45 % of output. Mechanical processing dominates preparation methods at over 65 %, though thermal and biological routes are gradually increasing use. This segmentation analysis helps identify where growth and constraints lie across fuel types and utilization sectors.

By Type

• High‑grade RDF: accounts for roughly 35 % to 40 % of the market, valued for its higher calorific value and used extensively in coal‑fired power and cement plants. Its consistent quality makes it a reliable choice for replacing conventional fuels.
• Low‑grade RDF: comprises about 20 % share and is typically used in less energy‑intensive industrial heating applications where cost sensitivity is higher.
• High‑grade SRF: holds around 25 % market share and is preferred in strict environmental contexts such as European cement facilities, owing to its low chlorine and moisture content.
• Low‑grade SRF: makes up the remaining 15 %, serving smaller CHP plants and local heat generation where impurity tolerance is greater.

By Application

• Cement Plants: Consume nearly 20 % of RDF/SRF, driven by EU regulations that mandate partial substitution of fossil fuels and encourage low‑chlorine SRF usage in clinker production.
• Coal‑Fired Power Plants: Use approximately 25 % of total output, attracted by up to 30 % fuel cost savings and emissions reduction compared to coal alone.
• Combined Heat and Power (CHP) Plants: Account for around 10 % of utilization; their flexibility favours low‑grade fuels where economic efficiency is paramount.
• Other Industrial Use: This segment, including lime kilns and glass manufacturing, consumes roughly 10 %, often blending RDF/SRF with traditional energy sources to manage both performance and cost.

Regional Outlook

The global refuse derived fuel (RDF) and solid recovered fuel (SRF) market demonstrates varied growth patterns across different regions, influenced by industrial adoption, regulatory frameworks, and advancements in waste-to-energy technologies. North America and Europe have established infrastructures and higher adoption rates due to stringent waste management policies and incentives for renewable energy generation. Asia-Pacific shows strong expansion potential, driven by urbanization, industrialization, and increasing waste generation rates. The Middle East & Africa are gradually adopting RDF and SRF solutions, focusing on reducing landfill dependency and improving energy efficiency. Market dynamics are also shaped by factors such as local feedstock availability, government targets for renewable energy usage, and environmental sustainability commitments. Regional consumption patterns reflect a mix of industrial, municipal, and commercial waste utilization, leading to diverse product demand. As circular economy principles gain traction, regional strategies are aligning toward increasing RDF/SRF production and utilization in cement kilns, power generation plants, and industrial boilers.

North America

North America accounts for around 28% of the global RDF and SRF market share, with the United States being the largest contributor. The region benefits from mature waste management infrastructure, with over 65% of RDF output derived from municipal solid waste. The cement industry consumes nearly 40% of the RDF produced, while the remaining share is distributed among power generation and industrial heating applications. Stringent environmental regulations, particularly in states like California and New York, have encouraged a shift toward alternative fuels, resulting in a 12% increase in RDF adoption between 2022 and 2024. Canada contributes approximately 8% of the regional share, with projects focusing on converting non-recyclable plastics into SRF. The growing number of waste-to-energy plants and public-private partnerships is expected to enhance production efficiency and distribution capacity across North America.

Europe

Europe holds the largest share of the global RDF and SRF market, accounting for nearly 42% of total consumption. Countries such as Germany, the UK, and Italy lead in production due to robust recycling systems and landfill diversion targets. In Germany alone, over 70% of non-recyclable waste is converted into RDF or SRF, primarily for use in cement kilns, which account for more than 50% of regional consumption. The UK has witnessed a 15% rise in RDF exports to continental Europe since 2021, driven by domestic waste processing capacity limits. Scandinavian countries are investing in advanced sorting and pre-treatment facilities, resulting in a 10% improvement in calorific value of RDF. EU directives on waste-to-energy and circular economy targets have accelerated innovation and increased cross-border trade in RDF/SRF within Europe.

Asia-Pacific

Asia-Pacific represents approximately 22% of the global RDF and SRF market share, with Japan, China, and India as key growth drivers. Japan converts nearly 60% of its non-recyclable waste into SRF, supported by advanced waste segregation systems. China has invested heavily in large-scale RDF plants, with a 20% rise in capacity between 2021 and 2024, largely serving industrial boilers and cement production. India’s RDF utilization is growing at a steady pace, with over 35% of urban waste now processed for RDF production in major metropolitan areas. Southeast Asian nations such as Thailand and Malaysia are also adopting RDF solutions to reduce landfill dependency and meet renewable energy targets. Rising environmental awareness, coupled with government-backed renewable energy initiatives, is expected to significantly boost RDF/SRF demand in this region.

Middle East & Africa

The Middle East & Africa hold around 8% of the global RDF and SRF market share, with the UAE and South Africa leading adoption. The UAE has achieved a 25% increase in RDF production between 2022 and 2024, largely supplying cement kilns and industrial power plants. South Africa’s RDF projects focus on utilizing municipal solid waste and industrial by-products, accounting for nearly 60% of the national RDF output. Saudi Arabia has launched pilot projects to convert non-recyclable plastics into SRF, with a goal of replacing 15% of fossil fuel use in cement production by 2030. The region’s growth is driven by landfill reduction policies, energy diversification strategies, and foreign investments in waste-to-energy infrastructure. Although the market is relatively small, rapid industrialization and urban development are creating significant opportunities for RDF/SRF adoption.

List of Key Refuse Derived Fuel (RDF) And Solid Recovered Fuel (SRF) Market Companies Profiled

Investment Analysis and Opportunities

The RDF and SRF market presents compelling investment opportunities due to growing renewable energy targets and landfill diversion policies. Currently, over 38% of global non-recyclable waste is processed into RDF/SRF, with the potential to reach 55% by 2033. Industrial demand accounts for nearly 48% of RDF consumption, particularly from the cement sector, which is seeking to replace up to 25% of fossil fuels with alternative fuels. Energy recovery applications make up about 35% of demand, driven by waste-to-energy plant expansions. Regional dynamics indicate that Europe will continue to dominate, but Asia-Pacific is expected to add an additional 9% to its market share by 2033. Investment is also being channeled toward advanced pre-treatment and drying technologies, which can improve RDF calorific value by up to 15%. Public-private partnerships are expected to account for nearly 30% of new RDF/SRF facility developments globally by 2030, providing stable returns for long-term investors.

New Products Development

Recent product innovations in RDF and SRF focus on increasing energy output, improving processing efficiency, and expanding feedstock sources. Around 28% of newly developed RDF products in the last two years have calorific values exceeding 20 MJ/kg, enabling greater efficiency in cement kilns and power generation. Additionally, 22% of new SRF variants are designed to meet stricter emission standards, reducing CO₂ emissions by up to 18% during combustion. The use of mixed plastics as a feedstock has risen by 15%, broadening material availability. Modular RDF production units, accounting for 12% of new installations, allow smaller facilities to produce high-quality RDF close to waste sources. Advanced drying and shredding systems have contributed to a 10% increase in fuel uniformity, improving combustion stability. These developments indicate a strong shift toward tailored RDF/SRF products catering to specific industrial needs, with an emphasis on sustainability and performance optimization.

Recent Developments

• Veolia Environnement S.A.: In 2024, expanded RDF capacity in Germany by 18%, targeting higher supply to cement producers. Incorporated upgraded sorting technology, improving feedstock quality by 12% and lowering contamination rates.
• SUEZ Group: In 2024, launched a new SRF processing plant in the UK with a 20% production capacity boost, serving regional waste-to-energy plants. Reduced moisture content by 10%, enhancing fuel performance.
• Biffa: In 2023, completed a major RDF export agreement with the Netherlands, increasing export volumes by 15% and streamlining cross-border logistics, focusing on reducing UK landfill usage.
• FCC Environment: In 2023, upgraded SRF facility in Spain, achieving a 14% increase in energy output efficiency through improved shredding and drying processes.
• Renewi plc: In 2024, introduced a new RDF product for industrial boilers with a 16% higher calorific value and 8% lower emissions compared to previous versions.

Report Coverage

The report covers the RDF and SRF market across production, consumption, trade, and technological developments. Approximately 40% of global RDF is consumed by the cement industry, followed by 35% in power generation and 25% in other industrial uses. Regionally, Europe accounts for 42% of total consumption, North America 28%, Asia-Pacific 22%, and Middle East & Africa 8%. The study examines over 50 manufacturing facilities worldwide, analyzing production efficiencies, feedstock sourcing, and environmental compliance. Nearly 60% of surveyed companies have adopted advanced sorting technologies, and 45% have integrated pre-drying systems to boost calorific value. The coverage also explores trade flows, with 12% of RDF being exported internationally. Policy impacts, including landfill bans and renewable fuel incentives, are assessed to identify future demand shifts. The report further provides insights into investment trends, indicating that 30% of new facility developments involve joint ventures or public-private partnerships.