Mexico Expands Waste-to-Fuel, Circular Economy Projects

Mexico is expanding waste-to-resource infrastructure as limited municipal solid waste treatment capacity and evolving circular economy regulations create demand for alternatives to landfill disposal. The Ixtapaluca RDF pellet plant and Holcim México-Geocycle’s waste recovery operations highlight investment opportunities across waste management, cement, construction, and environmental technology, while linking waste valorization with industrial decarbonization and resource efficiency.

The government of the State of Mexico inaugurated the construction of a plant that will transform municipal solid waste into refuse-derived fuel (RDF) pellets. The project will transform waste that has traditionally represented an economic and environmental cost into a product with commercial and energy value.

The event brought together authorities from the three levels of government and private-sector representatives to learn about the scope of the initiative and strengthen coordination to advance toward waste management models that progressively reduce final disposal and promote waste recovery under circular economy principles.

Located at the “El Milagro” landfill in Ixtapaluca, the project involves a private investment of MX$2.7 billion and will serve municipalities in the eastern part of the State of Mexico and Mexico City boroughs. According to the State of Mexico government, the facility will have the capacity to process nearly 1,200t of solid waste per day and generate 200 direct jobs.

Alhely Rubio, Minister of Environment and Sustainable Development of the State of Mexico, said the plant seeks to change the traditional waste disposal model and reduce its environmental impacts, including greenhouse gas emissions and the contamination of bodies of water and aquifers caused by leachate.

During the first stage, two facilities will be built for waste treatment and transformation. The project will contribute to the circular economy, the Zero Waste program and the achievement of the United Nations (UN) Sustainable Development Goals.

The State of Mexico’s Ministry of Environment and Sustainable Development (SMAyDS) explains that when waste arrives at the facility, it will first be sorted by municipalities in the eastern part of the State of Mexico and Mexico City. The waste will then be shredded and mixed to form a paste, which will be processed into small pellets known as hard pellets, a fuel produced from the waste itself.

The pellets represent an alternative to fossil fuels used in energy-intensive industrial processes, particularly cement production. A study published in Materials found that replacing 90% of the required heat with refuse-derived fuels could save approximately 28.6t of coal per hour at a cement facility, while also reducing emissions under certain configurations.

The pellets will be supplied to the 10 plants operated by CEMEX in Europe, as the fuel meets the environmental criteria required by the European Union for use in the cement industry. TECSAT and TECNOSILICATOS will be responsible for managing and operating the facility, while German company ALENGO will provide the patented technology for waste processing.

The El Milagro final disposal site currently receives about 109,000t of waste per month, mainly from Mexico City, as well as from Ixtapaluca, Chalco and other generators. 

SEMARNAT emphasized that this new framework promotes the progressive transformation of landfills to reduce the amount of waste sent to final disposal. “In this process, technological innovation and private investment contribute to the transition, addressing the principles of technical, environmental and social viability,” the agency says.

Holcim, Geocycle Expand Circular Economy Efforts in Mexico

The development of the Ixtapaluca facility reflects a broader shift in Mexico’s waste management sector toward recovering value from materials that would otherwise be sent to final disposal. Other initiatives are also expanding the use of waste as an alternative energy source and raw material for cement production.

Holcim Mexico and its waste management subsidiary Geocycle are broadening their circular economy operations, with more than US$500 million invested in Mexico over the past five years, part of which has supported the expansion of Geocycle’s operations. 

Through seven operating plants in Mexico, the subsidiary manages more than 600,000t of waste annually, an amount equivalent to the emissions generated by more than 125,000 medium-sized cars in one year, according to the company.

Through thermal co-processing technology, waste that cannot be recycled through conventional methods can be converted into alternative fuels for cement production. Certain materials can also be used as alternative raw materials, reducing the volume of waste sent to final disposal while supporting the production of cement with a lower carbon footprint.

The companies presented their approach during the high-level forum “Evolution Toward More Sustainable Cities,” where they highlighted the need to move toward waste management models that prioritize recycling and recovery while reducing the amount of waste sent to final disposal.

“For Holcim México, sustainability is not an agenda separate from the business: it is how we do business. Faced with the need to build more efficiently and cleanly, waste does not have to be the end of a story, but rather the beginning of a new one. No company or government can solve this challenge in isolation; real change happens when we connect public policy with technology and industrial capacity to turn waste into resources that generate value for the country,” said Christian Dedeu, CEO of Holcim México.

Local Initiatives

Holcim is developing solutions tailored to local waste streams. In Tecoman, Colima, infrastructure has been established to process more than 45,000t of sugarcane biomass annually. The facility uses residual heat from the cement plant to dry wet bagasse, allowing it to be used as an alternative energy source for cement production. The process reduces the amount of agricultural waste requiring disposal while replacing part of the fossil fuels used by the plant.

Holcim is also applying its circular economy strategy to construction and demolition waste through its ECOCycle technology. Operated at the Arvide, Vallejo, and Iztapalapa plants in the Valley of Mexico, the system processes construction and demolition waste, a stream that generates more than 10Mt of debris annually in Mexico. The technology allows up to 10% recycled aggregates to be incorporated into the production of new concrete, reducing demand for virgin resources.

The approach combines Geocycle’s thermal co-processing of non-recyclable waste with the recycling of construction materials through ECOCycle. This creates a waste management model in which materials that can return to the production cycle are recycled, while waste that cannot be conventionally recycled can be recovered as fuel or alternative raw material when technical and environmental conditions allow.

Holcim and Geocycle have also developed municipal partnerships to increase waste recovery. In Orizaba, Veracruz, a joint classification station established through nearly a decade of collaboration has enabled the recovery of more than 100,000t of inorganic waste. The municipality received the Escoba de Platino (Platinum Broom) award in Spain for its waste management efforts. Additionally, Orizaba and Geocycle established an agreement to recycle concrete debris generated by the demolition of sidewalks. More than 1,000t of old concrete have been processed to pave new local sidewalks.

These initiatives position waste recovery as a component of industrial and municipal resource management while linking public policy, industrial technology and community participation. “The approach of Geocycle is to transform waste into a valuable resource that is reincorporated into the economy. We seek to complement traditional recycling chains and be the industry’s best ally in achieving its sustainability goals,” says Oscar Rivas, Director, Geocycle.