plastic to fuel Market

The Plastic to Fuel market is projected to reach US$ 8,804.20 million by 2028; it is expected to grow at a CAGR of 15.8% from 2022 to 2028.

The plastic-to-fuel technology is an integral part of the circular economy concept, which involves creating high-quality plastic products from waste materials. Despite being capital-intensive with a typical return-on-investment (ROI) period ranging from two to five years, the plastic-to-fuel sector has witnessed an increase in the number of producers in the US and Europe due to well-established waste management infrastructure. This technology has gained importance in recent years, as it helps power America's transportation system and local economies by reducing the amount of waste sent to landfills and generating fuel and other valuable products. The conversion of waste plastics into chemical feedstock or fuel is achieved through depolymerization and pyrolysis processes.

Based on technology, the gasification segment is projected to exhibit the fastest CAGR during the forecast period in the global plastic to fuel market analysis. Gasification involves heating waste plastic with air or steam to generate useful industrial gas blends such as "syngas" or "synthesis gas," which can be directly burnt to generate power in boilers or used to produce diesel and petrol. The increasing demand for industrial fuel worldwide is driving the popularity of this technology. The main advantage of gasification in the plastic to fuel market is that it reduces the need for landfill space and methane emissions. Furthermore, gasification has been used commercially in industries such as refining, fertilizer, and chemicals worldwide. As a result, PTF Plant operators have the opportunity to conserve resources and reduce hazardous emissions as gasification expands into fuel generation. The gradual adoption of gasification is projected to drive the demand for more plastic-to-fuel technology and contribute to future global plastic-to-fuel market analysis.

The North American region is known for producing and consuming a substantial amount of plastic, particularly in the production of medical devices and protective equipment, which surged in demand in 2020. However, the disposal of these products after use led to a significant increase in plastic waste. The region has numerous plastic to fuel recycling companies, particularly in the US and Canada. However, the outbreak of the pandemic in the US caused disruptions in the operations of these recycling units. Consequently, there was a decrease in production volume, leading to lower revenues for the companies and the plastic to fuel market in general.

The North American plastic to fuel market is being influenced by the government's constant initiatives and investments to promote recycling and research and development of various plastic recycling technologies. The Department of Energy's investment in plastic waste recycling research and development is expected to contribute to the growth of the plastic to fuel market in the region. In addition, the high standard of living and spending capacity of the US population result in increased plastic consumption, leading to an increase in plastic waste. North America is also a technologically advanced region where IoT and RFID technologies have been widely adopted. These technologies are integrated into waste management systems to segregate plastic waste from other waste, which is further processed through various technologies such as pyrolysis, driving the growth of the market. This factor is expected to drive the growth of the plastic to fuel market in North America.

According to the Canadian government, Canada's increasing population has led to a corresponding increase in plastic waste generation, with 2.8 million tons of plastic waste being disposed of in landfills annually. This has prompted the government to take active measures to recycle plastic waste and convert it into other materials such as crude oil and diesel. For example, Trenton, a Canadian company, has been converting plastic waste from landfills into diesel fuel and gasoline since 2019. Additionally, Sustane Technologies plans to produce synthetic diesel at a rate of 9,000 liters per day from 10 tonnes of plastic waste in the Chester area. The company also aims to process 40,000 to 50,000 tonnes of municipal garbage annually and convert it into biomass pellets and liquid fuel. As a result, these factors are expected to drive the growth of the plastic to fuel market in Canada.

Various players in the plastic to fuel market have implemented different approaches to sustain their operations and expand their annual sales performance. Agilyx Inc., a leading player in the market, established Cyclyx International LLC, a post-use plastic feedstock management company in 2020, as part of its strategy to enhance waste plastic recycling. This move is expected to drive Agilyx Inc.'s business growth in the upcoming years. In a similar fashion, Nexus Fuel LLC and Shell agreed to a contract in 2020, in which Nexus Fuel LLC committed to supplying Shell with 60,000 tonnes of pyrolysis liquid derived from plastic waste over a period of four years.

The plastic to fuel market analysis has been conducted using a combination of primary and secondary research methods. The initial phase of research involved extensive secondary research from internal and external sources to gather qualitative and quantitative information on the market. This provided an overall forecast and overview of the plastic to fuel market growth and insights into the various segments across different regions. In addition, multiple primary interviews were conducted with key industry experts, including VPs, business development managers, market intelligence managers, national sales managers, external consultants, research analysts, valuation experts, and key opinion leaders. The aim of these interviews was to validate the data collected during the secondary research phase and to gain deeper insights into the plastic to fuel market. Agilyx Inc.; Cassandra Oil AB; Klean Industries Inc.; Nexus Fuel LLC; OMV Aktiengesellschaft; Bradam Group, LLC; RESYNERGI; MK Aromatics Ltd.; Plastic2Oil, Inc.; and Plastic Advanced Recycling Corp. are among key players operating in the plastic to fuel market.