Abstract: Refuse derived fuel is produced by taking raw refuse, pulverizing it and n screening it to remove fines and oversize material, the screened residue being passed to an air classifier where the light fraction, rich in paper and plastics, is separated. This light combustible refuse fraction is then passed to a densifying machine, either directly or via a secondary shredder, to produce partially compacted material which is then dried in a rotary dryer. The dried material can be passed to a second densifying machine which produces pellets in the form of small dense cylinders or blocks having a calorific value equal to about half that of coal. Coal dust or other combustible particulate material can be added to and mixed with the combustible fraction between the two densifying machines.