The global cement kiln co-processing fuels market is estimated to be around USD 3,917.9 million in 2024. With sales estimated to register a CAGR of 5.6% over the forecast period, the market valuation is envisioned to reach USD 6,747.2 million by 2034.
Since plastic is the most often created waste, the cement industry is using co-processing of plastic waste as a sustainable way to manage the huge amount of plastic garbage generated worldwide. It can be assumed that this strategy is effective for the cement kilns managing high volumes of plastic waste.
The plastic waste source revenue in 2023 was estimated at USD 1,215.4 million plastic waste source. The sector is forecast to sustain a Y-o-Y growth of 6.1% in 2024. This spurt anticipates nearly a 1.7X value growth over the current value during the review period.
Cement producers such as Cement Roadstone Holding, Holcim Group, UltraTech Cement, and Ambuja Cements adopt the co-processing waste for energy generation in cement kilns. This type of new technology does not only tackle all the environmental problems but also maximizes resource utilization in the cement industry.
Since clinker manufacturing requires a lot of heat, solid recovered fuel (SRF) is the most used fuel type in the cement industry. Primary and secondary firing was previously accomplished using fossil fuels. However, the demand for eco-friendly substitutes has arisen due to high prices and environmental concerns.
Key businesses are creating particular SRF that satisfies fuel calorific value standards. SRF is a refined kind of alternative fuel. In cement kilns, it is anticipated to take the place of fossil fuels and promote the circular economy.
China, India, the United States, the United Kingdom, and Germany have implemented comprehensive regulations on the production and processing of plastic trash. High-calorific co-processing fuel is used in cement kilns to provide high heat.
SRF's cost-effectiveness and economic viability are projected to boost cement output. Co-processing fuels are expected to expand significantly throughout the projected period since around 40% of the worldwide cement industry has already implemented SRF. According to studies, it is 40%-50% less expensive than coal.
Biodegradable, recyclable, inert, and composite trash are among the waste materials that are shredded and dried to create solid refrigerant (SRF). The procedure lowers greenhouse gas emissions and encourages the cement industry to utilize eco-friendly fuels. Since combustion ash may be added to cement clinker, SRF is utilized in cement kilns.
Because mineral elements are immediately absorbed into clinker, it is regarded as an energy recovery method. Additionally, this procedure contributes to the expansion of the SRF fuel type by recycling some SRF on a material level.
| Attributes | Key Insights |
|---|---|
| Estimated Value (2024) | USD 3,917.9 million |
| Projected Size (2034) | USD 6,747.2 million |
| Value-based CAGR (2024 to 2034) | 5.6% |
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The annual growth rates of the cement kiln co-processing fuels market from 2024 to 2034 are illustrated below in the table. Starting with the base year 2023 and going up to the present year 2024, the report examined how the industry growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2).
The table provided shows the growth of the sector for each half-year between 2023 and 2024. The market was projected to grow at a CAGR of 5.1% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable increase in the growth rate.
| Particular | Value CAGR |
|---|---|
| H1 | 4.9% (2023 to 2033) |
| H2 | 5.1% (2023 to 2033) |
| H1 | 5.2% (2024 to 2034) |
| H2 | 5.4% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected as 5.2% in the first half and grow to 5.4% in the second half. In the first half (H1) and second half (H2), the market witnessed an increase of 20 BPS each.
Waste Management: Cementing a Sustainable and Greener Future
Efforts to reduce global waste are encouraging the use of co-processing fuels in cement kilns. This approach helps cut down landfill waste, which lowers greenhouse gas emissions and ozone depletion. By using waste materials to produce fuel for clinker production, co-processing has lessened the amount of waste sent to dumps.
The chemical and automotive industries create a lot of waste. This includes old tires, plastics, solvents, and paint sludge. Large cement-producing companies like Anhui Conch, Lafarge, and HOLICIM have in-house co-processing facilities that directly use these waste materials to produce fuel and use it in the cement kiln. However, few companies rely on suppliers to procure SRF or RDF fuel.
Clinker production typically occurs at high operating temperatures, requiring high amounts of primary fuel like coal or tar. The European Union's Circular Economy Action Plan promotes the use of alternative fuels in the cement industry, highlighting the importance of waste materials and government support.
Paving the Way for Greener Foundations with Stringent Regulations on Carbon Emissions
The cement sector contributes to 7%-8% of all the emissions experienced globally and satisfies energy needs as well. To combat global warming, most of the countries embarked on new policies aimed at narrowing industrial emissions. A significant method of reducing emissions is the employment of alternative fuels.
Primitive fuels that have been utilized for combustion include petroleum coke and coal, however, with biofuels such as biomass, municipal solid waste and even used tires are gaining ground. In addition, there is a strong focus in Europe for the integration of refuse derived fuels in place of solid fuels. In countries like Germany and the Netherlands, concerns involving the carbon issue are paramount and more than 60% of the cement industry there employs the use of alternative fuels.
One region that is leading in such initiatives is Europe, which has developed policies to control emissions of carbon. Policies like the European Union ETS System have been propounded to cement manufacturers in order to use alternative fuels.
Cost Reduction through Adoption of Alternative Fuels
The cement industry is increasingly adopting co-processing fuels to reduce the high costs of traditional fuels like coal, natural gas, and petroleum coke used in cement kilns. As fossil fuel prices fluctuate, cement manufacturers are focusing on using these cost-effective alternatives.
Some industries pay cement manufacturers to take industrial hazardous waste materials, allowing them to turn cost burdens into economically viable processes. This, in turn, allows cement manufacturers to reduce fuel costs and earn additional revenue.
For example, HOLICIM Group, the world's largest cement producer, co-processes a significant amount of plastic waste and industrial solvents, offsetting fossil fuel consumption and saving fuel costs.
Development of Advanced Pre-processing Technologies
The cement industry's co-processing of alternative fuels depends on the type, characteristics, and characteristics of waste materials like biomass, industrial waste, and municipal solid waste (MSW). These materials differ in composition, moisture content, calorific value, and combustion properties, causing challenges in maintaining kiln performance and product combustion.
To address these issues, the industry is adopting advanced pre-processing technologies to increase efficiency and ensure stable co-processing. Waste sorting and separation procedures are crucial for enhancing fuel co-processing in cement kilns.
Advanced sorting technologies like optical sorting, magnetic separation, and eddy current separation are being implemented to isolate unwanted waste materials. Key cement manufacturers are using these technologies to remove combustible materials from MSW, leading to the production of homogenous fuel and improved combustion in the cement kiln.
Technical and Operational Challenges
Co-processing alternative fuels in cement kilns is a complex process due to varying combustion properties, chemical compositions, and emission profiles of waste materials. This poses operational challenges and challenges in maintaining stability.
Controlling hazardous gas emissions like NOx and SO? is crucial, but improper waste segregation can lead to minimal combustion and increased risk. High-moisture content biomass and waste material can also affect kiln temperature and performance.
Co-processing is considered cost-effective and environmentally friendly, but few research studies have claimed the emission of dioxins, furans, or heavy metals post-combustion. This raises concerns about the viability of cement kiln co-processing fuels. In the United States, stringent Resource Conservation and Recovery Act regulations can limit the adoption of co-processing in cement kilns adopting unsafe wastes.
Principal Consultant
Tier 1 companies comprise players with a revenue of above USD 1,000 million capturing a significant share of 30-35% in the global market. These players have high production capacity, a diverse product portfolio, extensive expertise in manufacturing and reconditioning, a broad geographical reach, and a robust consumer base, specializing in cement kiln co-processing fuels applications. Prominent companies within tier 1 include Energesman, BEUMER Group, Enva, Estre, Veolia, and other players.
Tier 2 companies include mid-size players with revenue of below USD 1,000 million having a presence in specific regions and highly influencing the local industry. These are characterized by a strong presence overseas and strong industry knowledge.
These players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include GEOCYCLE, DCC Group, Mecore B.V., Averda, and other player.
The section provides an industry analysis of cement kiln co-processing fuels demand in various global regions, including North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, Middle East, and Africa.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Spain | 9.3% |
| India | 6.7% |
| Brazil | 7.5% |
| France | 6.9% |
| South Korea | 6.2% |
The sales of cement kiln co-processing fuels in cement kilns in China are projected to reach USD 850.4 million by 2034, with a CAGR of 4.9%. China holds 54% of the market share in East Asia, largely due to stringent environmental regulations and advancements in co-processing technology.
China's advanced shredding, drying, and sorting technologies have enabled consistent co-processing fuel production and reliable operations. The cement industry in China collaborates with leading technology providers to implement advanced waste processing facilities, such as advanced pre-treatment RDF systems in Chongqing and Sichuan regions.
The cement kiln co-processing fuel industry in the United States is expected to reach USD 793.8 million by 2034, with a CAGR of 6.6%. In 2024, the United States is expected to capture 79% of North America's waste management sector due to increasing waste generation and limited landfill space.
Co-processing in cement kilns offers an environmentally friendly solution by turning waste into fuel, supporting waste-to-energy initiatives, and the concept of a circular economy. The United States is addressing issues related to landfilling of municipal and industrial waste, which is the largest contributor to carbon dioxide emissions. The adoption of co-processing fuels is driven by the need to reduce greenhouse gas emissions and comply with EPA regulations.
Cement kiln co-processing fuels in Germany are predicted to develop at a CAGR of 5.5% to reach USD 480.8 million by 2034. Because of its innovative technology, environmental legislation, and circular economy tenets, Germany tops Western Europe with 38% of market share.
In Germany, the Landfill Directive (2005), which forbids the disposal of untreated garbage in landfills, is one of the nation's stringent waste management laws. With cement producers like Heidelberg Materials incorporating co-processing technology to lessen dependency on fossil fuels, Germany is also at the forefront of advancing the circular economy. Around 60% of Heidelberg Materials' fuel usage has derived from alternative fuels.
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The section explains the growth trajectories of the leading segments in the industry. In terms of source type, the plastic waste type will likely dominate and generate a share of around 32% in 2024. Based on the fuel type, the solid recovered fuel (SRF) segment is projected to hold a major share of 65% in 2024. Based on the application, the primary firing segment is projected to hold a major share of 58% in 2024.
| Segment | Plastic Waste (Source Type) |
|---|---|
| Value Share (2024) | 32% |
The cement industry is embracing the use of plastic waste as a raw material in its co-processing fuel market, a move that aims to address environmental issues such as waste management and carbon emissions.
As global plastic waste generation increases, various disposal and recycling methods have been adopted. Nonetheless, landfilling and incineration present significant environmental challenges and the economic viability of plastic waste disposal remains a concern. Cement kilns are considered effective waste management solutions for converting plastic waste into usable energy/fuel, contributing to the reduction of plastic waste in landfills.
| Segment | Solid Recovered Fuel (Fuel Type) |
|---|---|
| Value Share (2024) | 65% |
Solid recovered fuel (SRF) is gaining popularity in the cement kiln co-processing fuel industry, a shift towards sustainable waste management and energy recovery.
SRF is produced using non-recyclable waste materials like MSW and industrial waste, offering environmental, economic, and operational benefits. It addresses waste management and greenhouse gas emissions, making it an ideal alternative fuel. SRF has a high calorific value of 15 to 25 MJ/kg, making it a crucial source of heat/energy for clinker production. This replaces a significant portion of traditional fossil fuel consumption, resulting in lower energy costs.
| Segment | Primary Firing (Application) |
|---|---|
| Value Share (2024) | 58% |
The cement kiln co-processing fuel market is experiencing growth due to technological advancements, environmental concerns, economic benefits, and regulatory frameworks.
The trend reflects the industry's shift towards sustainable practices, replacing fossil fuels with waste-derived materials. The cement industry contributes to 8% of global greenhouse gas emissions, making the adoption of alternative fuels for primary firing crucial to mitigate these environmental impacts.
Major cement kiln co-processing fuels companies are enhancing their operations by using alternative fuels with high biomass content, reducing clinker factor, optimizing thermal efficiency, decarbonizing their global vehicle fleet, and using clean electricity sources.
With OxyFuel technology, Holcim Deutschland is building a new kiln line that will collect almost all CO2 emissions. The goal of the Global Cement and Concrete Association (GCCA) is to lower carbon emissions and increase energy efficiency by utilizing alternative fuels and raw materials to support a circular economy.
Recent Industry Developments
The source type segment is further categorized into plastic waste, mixed industrial waste, end-of-life tires, animal bone meal, animal meal, animal fats (biomass), sewage sludge, wood/paper/pulp waste, and others (agricultural waste, waste oil, solvents, fossil based waste).
The fuel type segment is classified into solid recovered fuel (SRF) and refuse derived fuel (RDF). The solid recovered fuel (SRF) is further sub-segmented into SRF low quality and SRF premium quality.
The application segment is categorized into primary firing and secondary firing.
Regions considered in the study include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East and Africa.
The cement kiln co-processing fuel used in secondary firing application was valued at USD 1,587.8 million in 2023.
The demand for cement kiln co-processing fuel industry is set to reach USD 3,917.9 million in 2024.
The cement industry is utilizing low-carbon alternatives like biomass, municipal solid waste, and end-of-life tires to reduce greenhouse gas emissions and boost demand for cement kiln co-processing fuel.
The cement kiln co-processing fuel demand is projected to reach USD 6,747.2 million by 2034.
Plastic waste source type is expected to lead during the forecast period.
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Cement Kiln Co-Processing Fuels Market
