The tyre-derived fuel (TDF) market in Europe has experienced significant growth in recent years, driven by the increasing demand for sustainable waste management and alternative energy solutions. According to a report by Grand View Research, the global TDF market was valued at approximately USD 371.5 million in 2024 and is projected to reach USD 446.77 million by 2030, expanding at a compound annual growth rate (CAGR) of 3.1% from 2025 to 2030.

Several key European countries, including Germany, France, the United Kingdom, Spain, and Italy, are at the forefront of this market expansion, implementing innovative strategies to unlock the energy potential of end-of-life tyres. As waste tyres pose a significant environmental challenge, the TDF market offers a practical solution by converting this waste into a valuable energy resource.

What is Tyre-Derived Fuel?

TDF is produced by shredding discarded tyres into smaller rubber chips, typically ranging from 1 to 3 inches in size, which serve as an efficient fuel source. The European Union (EU) recognizes TDF as a viable alternative to fossil fuels, capable of producing the same amount of energy as oil and approximately 25% more energy than coal. Importantly, TDF combustion generates lower emissions, with reduced moisture, sulphur, nitrogen, and ash content, significantly lowering its carbon footprint.

Notably, every tonne of TDF used in place of black coal reduces carbon dioxide (CO2) emissions by approximately one tonne, making it a crucial component in the global effort to combat climate change.

Key Factors Driving TDF Market Growth in Europe

1. Strict Environmental Regulations
   The EU has implemented stringent environmental policies aimed at reducing landfill use and promoting tyre recycling. TDF aligns perfectly with these objectives, converting waste tyres into energy while reducing the overall environmental impact. Additionally, EU governments provide various incentives and subsidies to companies investing in sustainable technologies, including waste-to-energy projects like TDF, further supporting market growth and encouraging innovation within the scrap tyre recycling sector.
2. Abundant Raw Material Supply
   According to the European Tyre and Rubber Manufacturers’ Association, Europe generates around 3.5 million tonnes of used car tyres annually. This steady supply of raw material, coupled with the economic benefits of tyre recycling and energy production, positions the TDF market for ongoing growth and investment opportunities within the region.
3. Export Restrictions
   European governments have imposed strict regulations on the export of end-of-life tyres to non-OECD (Organization for Economic Cooperation and Development) countries, creating a pressing need to develop and expand domestic TDF processing capabilities within the region.
4. Technological Advancements
   Rapid advancements in tyre recycling and fuel processing technologies have significantly improved the efficiency and environmental performance of TDF production, making it an increasingly attractive option for industries seeking cleaner and more sustainable energy alternatives.
5. Corporate Sustainability Initiatives
   Many European companies are integrating TDF into their operations as part of broader sustainability strategies, aiming to reduce their carbon footprint, enhance ESG (environmental, social, and governance) credentials, and adopt circular economy principles.

Industrial Applications of Tyre-Derived Fuel

TDF finds application across various industries as a sustainable alternative to traditional fossil fuels:

• Cement Manufacturing: Roughly 45-50% of TDF is used in cement kilns, where it helps achieve the high temperatures required for cement production, leveraging its high calorific value to improve thermal efficiency. The kilns can effectively process both the rubber and steel components of the tyres, making TDF a valuable fuel source.
• Pulp and Paper Mills: TDF can be co-fired with wood chips in pulp and paper mills, enhancing combustion efficiency and reducing the production of toxic ash compared to coal.
• Electric Power Generation: TDF serves as a supplementary fuel in boilers, increasing combustion temperatures and reducing nitrate emissions, contributing to cleaner power generation.
• Dedicated Tire-to-Energy Facilities: Specialized facilities burn whole or shredded tyres to produce energy for sale to local utilities. While these facilities require significant initial investment, they provide an efficient and environmentally friendly solution for managing tyre waste.

With over a decade of experience and a highly skilled team, Fornnax is at the forefront of innovation in the tyre recycling industry. They  provide advanced recycling solutions tailored to meet the diverse needs of industries across Europe. Their robust SR-Series Dual Shaft Shredders, equipped with trommel screens, produce the highest quality TDF, with tyre shreds ranging from 50 to 80 mm.

Fornnax has built a trusted client base in Eastern European countries such as Poland, Bulgaria, and Serbia, delivering equipment that meets the highest European quality standards and can be customized to meet specific customer requirements.

If you are looking for high-capacity, heavy-duty equipment to support your tyre recycling and TDF production goals, explore Fornnax services and get in touch. Discover how thier expertise can help drive your tyre recycling business in Europe toward a more circular and environmentally responsible future.

Meet the FORNNAX team at the 2nd Edition of the Eco Sustain Expo – Exhibition & Conference on Solid Waste Management, Bio Energy, Effluent Treatment, Air Pollution, and Recycling, scheduled from 22nd to 24th August 2025 at HITEX, Hyderabad.

📍 Stall No: A15, Hall: 4C – Discover the future of recycling, built for tomorrow’s challenges.