Economic Benefits of Recycling in the Supply Chain from a Circular Economy Perspective: A Case Study of Wind Turbines
Document Type : Original Research
Authors
1
Department of Management and Economics, SR.C., Islamic Azad University, Tehran, Iran
2
Department of Management, WN.C., Islamic Azad University, Tehran, Iran
Abstract
The rapid global expansion of wind energy has intensified the demand for critical and scarce raw materials, raising concerns regarding supply security, price volatility, and environmental sustainability. As wind turbines reach the end of their lifetime, recycling and recovery of materials emerge as a key strategy to mitigate these challenges within a circular economy framework. This study provides a quantitative assessment of the economic benefits associated with recycling wind turbine materials.
A 2.5 MW onshore wind turbine is analyzed using life cycle assessment (LCA)-based material composition data obtained from published literature. Material mass estimation is combined with reported recycling rates and market-based scrap prices to evaluate the recoverable economic value from end-of-life turbine components. The analysis considers major materials, including steel, cast iron, aluminum, copper, fiberglass, epoxy, and rare earth magnets, which together account for approximately 98% of the turbine mass.
The results indicate that around 84% of the total turbine mass is currently recyclable using existing technologies. Metallic materials dominate the recycling potential, with steel and cast iron representing the largest mass shares. The total recoverable economic value from recycling is estimated at €58,297 per turbine, equivalent to approximately €23,300 per MW of installed capacity. Steel (€22,483) and power cables (€32,209) contribute the highest economic returns due to their large quantities and high recycling rates. Although rare earth magnets constitute less than 1% of the total turbine mass, they exhibit significant economic and strategic importance, with a potential recovery value of up to €14,660 under increased recycling scenarios.
A 2.5 MW onshore wind turbine is analyzed using life cycle assessment (LCA)-based material composition data obtained from published literature. Material mass estimation is combined with reported recycling rates and market-based scrap prices to evaluate the recoverable economic value from end-of-life turbine components. The analysis considers major materials, including steel, cast iron, aluminum, copper, fiberglass, epoxy, and rare earth magnets, which together account for approximately 98% of the turbine mass.
The results indicate that around 84% of the total turbine mass is currently recyclable using existing technologies. Metallic materials dominate the recycling potential, with steel and cast iron representing the largest mass shares. The total recoverable economic value from recycling is estimated at €58,297 per turbine, equivalent to approximately €23,300 per MW of installed capacity. Steel (€22,483) and power cables (€32,209) contribute the highest economic returns due to their large quantities and high recycling rates. Although rare earth magnets constitute less than 1% of the total turbine mass, they exhibit significant economic and strategic importance, with a potential recovery value of up to €14,660 under increased recycling scenarios.
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