Grand View Research: Turning Heaps of Plastic into Resource with Waste to Diesel Method

Conventional waste management methods involve high cost. This along with soaring concerns regarding effectively disposing the mounting waste is impelling municipal bodies and governments worldwide to develop and encourage usage of cost-effective ways of waste management. In this scenario, waste to diesel is making its mark as an effective and inexpensive method of managing waste. The method has so far proved to be a great boon for urban areas as both waste management and fuel requirement are higher in these regions.

Municipal Waste to Remain at Forefront through 2025

Waste to oil is used as a method of producing diesel from municipal waste, plastic waste, and oil and fat waste. Municipal waste usually consists of unwanted wastes collected from industries, retailers, household, and agriculture through suppliers, garbage collectors, and transfer stations. In terms of source, this type of waste will continue to account for the largest share through 2025. Rising number of processing plants for municipal solid waste (MSW) is expected to contribute to the growth of the segment. Implementation of regulation for cost-effective recovery of waste materials and reduction of municipal waste is propelling the growth of the segment.

Companies providing technologies for waste to diesel are anticipated to capitalize on burgeoning heaps of plastics as well. For instance, Renewlogy, an Australia-based company that aims for a clean environment, by converting plastic waste into fuel such as off-road diesel. The company believes that with its technology it will be able to convert every 10 tons of plastic into about 2500 gallons of fuel. The growth of the plastic waste segment can be attributed to the increase in liquefaction facilities for the conversion of plastics into diesel.

Market Insights

A report by Grand View Research, Inc. indicates that the global waste to diesel market is estimated to reach a valuation of USD 942.78 million by 2025. Surging demand for fuel from various industries including transportation, construction, automotive, and aviation can help the market gain significant traction over the forecast period (from 2018 to 2025). Increasing utilization of diesel produced from waste in ships, diesel power generators, diesel boilers, construction machinery, and tractors and trucks will also boost the demand in the coming years.

Europe led the global market in 2016. Companies in the region are involved in extensive R&D to introduce innovative technologies, which is driving the market. Some of the key companies in the market are Foster Wheeler A.G.; Covanta Energy Corp.; Green Alliance; Plastic2Oil Inc.; and Klean Industries Inc.