C&D Wood Recycling: Turning Wood Waste into Opportunity
Wood is one of the largest components of the construction and demolition (C&D) waste stream, making up as much as 40% of inbound material at mixed C&D recycling facilities.
Fortunately, a significant portion of this wood can be recycled into valuable new products—fueling the circular economy, reducing landfill use, and supporting green building practices.
Where Does Recyclable Wood Come From?
Recyclable wood is commonly generated from:
- Demolition projects: framing lumber, joists, plywood, and beams
- Construction sites: offcuts, formwork, pallets, and crates
- Packaging materials: spools, crates, and boxes
- Exterior wood: untreated fencing, decking, and siding
Not all wood is recyclable. Materials that are painted, pressure-treated, glued (e.g., OSB, MDF), or contaminated with lead-based paint or asbestos must be carefully managed and often diverted to specialized disposal routes.
How Wood Is Recycled
Recycling C&D wood typically involves the following steps:
- Source Separation or Sorting: Either at the job site or in mixed C&D facilities
- Screening and Contaminant Removal: Nails, metal, plastics, and treated wood are removed
- Sorting by Grade: Material is grouped according to quality and end use
- Grinding or Chipping: Wood is processed according to end market specifications
Advanced sorting technologies, including AI, optical sorters, and robotics, are helping streamline this process and improve recovery rates.
End Markets for Wood Recycling
C&D wood is repurposed into a range of high-demand products across several industries:

Landscaping & Mulch:
Non-treated, unpainted wood is ground into mulch or compost feedstock.
Because it’s already kiln-dried, mulch made from C&D wood can last longer than mulch made from virgin material. It can also be dyed in a variety of colors for consumer use.

Biomass Fuel:
C&D wood is a recognized biomass fuel by the U.S. EPA. It is often used in:
- Biomass power plants
- Cement kilns
- Paper mills
- Industrial boilers
Strict standards must be met to ensure the wood is clean enough to qualify as a legitimate fuel, especially when combusted. The pre-dried nature of C&D wood makes it an efficient fuel source with lower moisture content.

Engineered Wood Products:
Ground wood fiber can be used as feedstock for composite materials like:
- Particleboard
- Fiberboard
- Other engineered panels
This use supports closed-loop manufacturing and reduces demand for virgin timber.

Other Uses:
- Animal bedding
- Compost
- Biochar
- Temporary road stabilization
- Landfill cover
- Reclaimed lumber can be repurposed into furniture, flooring, and paneling
Why Wood Recycling Matters
Recycling wood from C&D projects provides multiple environmental and economic benefits:
- Reduces landfill volumes
- Diverts materials from decomposition that produces methane
- Supports sustainable construction practices (e.g., LEED credits)
- Creates new revenue streams through reclaimed wood products
- Preserves natural resources and promotes circularity
Recycled wood also plays a growing role in carbon reduction efforts and may qualify for emerging carbon credit programs related to biomass and landfill diversion.
Build a More Sustainable Future with CDRA
As demand grows for low-carbon materials and circular construction practices, recycled wood offers a major opportunity for innovation and impact.
Whether you’re a processor, hauler, builder, or manufacturer, CDRA connects you to the resources, data, and market intelligence you need to succeed in wood recycling and beyond.
Join CDRA today to access exclusive technical reports, regulatory updates, and member insights that help you grow your business—and shape the future of C&D recycling.