Advanced Biofuels Global Market Report 2025

Advanced biofuels represent liquid fuels that, in comparison to fossil fuels, exhibit a reduction in lifecycle greenhouse gas emissions by at least 50%. These fuels are typically derived from non-food-based feedstocks and are created from renewable organic materials, serving as viable alternatives to conventional liquid petroleum fuels.

The primary types of advanced biofuels include cellulosic ethanol, biofuel, biobutanol, bio DME, among others, and they undergo processing via various technologies, encompassing thermochemical and biochemical methods. Cellulosic ethanol, categorized as a second-generation biofuel, is manufactured by converting non-food vegetation into ethyl alcohol (ethanol). Various raw materials utilized in this process include jatropha, camelina, algae, simple lignocellulose, among others.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are heavily impacting the oil and gas industry, especially in areas such as exploration equipment, pipeline development, and refining operations. Increased import duties on drilling rigs, steel pipes, and specialized machinery have significantly raised capital expenditures across both upstream and downstream segments. Midstream players are grappling with cost surges for essential components like valves, compressors, and storage tanks, causing delays and disruptions in expansion projects. Refiners, meanwhile, are contending with higher expenses for imported catalysts and control systems critical to operational efficiency. In addition, retaliatory tariffs from major trade partners have curtailed U.S. exports of liquefied natural gas (LNG) and crude oil, reducing global competitiveness. In response, companies are ramping up investments in domestic manufacturing alliances, digital asset management tools, and diversified energy portfolios to maintain resilience and protect profitability.

The advanced biofuels market research report is one of a series of new reports from The Business Research Company that provides advanced biofuels market statistics, including advanced biofuels industry global market size, regional shares, competitors with an advanced biofuels market share, detailed advanced biofuels market segments, market trends and opportunities, and any further data you may need to thrive in the advanced biofuels industry. The advanced biofuels market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The advanced biofuels market size has grown exponentially in recent years. It will grow from $116.85 billion in 2024 to $163.89 billion in 2025 at a compound annual growth rate (CAGR) of 40.3%. The growth in the historic period can be attributed to renewable energy policies, environmental regulations, volatility in crude oil prices, research and development investments, growing awareness of climate change.

The advanced biofuels market size is expected to see exponential growth in the next few years. It will grow to $647.25 billion in 2029 at a compound annual growth rate (CAGR) of 41.0%. The growth in the forecast period can be attributed to scale-up of production facilities, international collaboration and agreements, economic incentives, market competitiveness, biofuel mandates and targets. Major trends in the forecast period include technological innovation, policy support and regulatory environment, feedstock diversification, global energy transition, scaling up commercial production.

The forecast of 41.0% growth over the next five years reflects a modest reduction of 0.2% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through increased costs of imported enzymes and specialized feedstocks from countries like Brazil and the Netherlands, potentially slowing down domestic biofuel production and adoption.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rising demand from the automotive industry is anticipated to drive the growth of the advanced biofuels market in the coming years. The automotive industry encompasses all businesses involved in the production of motor vehicles and their components, excluding tires, batteries, and gasoline. Advanced biodiesel, a second-generation biofuel, is used in this sector as an alternative to gasoline and diesel. The adoption of advanced biofuels in the automotive industry is primarily fueled by the need for low carbon emissions. For example, in June 2023, the Department for Transport (DfT), a UK government agency, reported that the number of licensed vehicles in the UK reached 40.7 million by the end of 2022, reflecting a 1.0% increase compared to December 2021. Therefore, the growing demand from the automotive industry is significantly contributing to the expansion of the advanced biofuels market.

The expanding aerospace sector is anticipated to drive the advancement of the advanced biofuels market in the foreseeable future. This extensive and intricate industry covers aircraft design, construction, satellite launches, and space exploration. Advanced biofuels play a crucial role in reducing greenhouse gas emissions within the aerospace industry, aiding in the fight against climate change. For instance, as per The International Air Transport Association, a global trade organization based in Canada, the projected global airline net profit is set to increase to $9.8 billion in 2023 from $4.7 billion in 2022. Additionally, an estimated 4.35 billion individuals are expected to travel in 2023. Consequently, the escalating demand for physical therapists is fueling the expansion of the advanced biofuels market.

The advanced biofuels market is witnessing a surge in the adoption of product innovations as a prominent trend. Key players in this sector are concentrating efforts on introducing pioneering products to fortify their market standing. For instance, in February 2023, PRIO, a biofuel producer headquartered in Portugal, introduced ECO Bunkers B30, a novel biofuel blend comprising 30% advanced biofuel sourced from waste raw materials. This fresh product undergoes blending at PRIO's Aveiro tank terminal following production at its biodiesel plant.

Prominent enterprises operating within the advanced biofuels sector are concentrating on pioneering technological advancements, notably sustainable aviation fuel (SAF) process technology, to secure a competitive advantage. Sustainable Aviation Fuel (SAF) technology encompasses various methods and processes for creating alternative jet fuel from renewable, non-petroleum sources. For instance, in September 2023, Lummus Technology LLC, a US-based entity specializing in proprietary petrochemicals, refining, and gasification technologies, introduced Ethanol-based SAF Technology. This cutting-edge technology provides a secure and scalable means of producing SAF utilizing ethanol, a renewable and widely available resource. The adoption of SAF holds the promise of substantial reductions in greenhouse gas emissions, potentially reaching up to 80%, contingent upon the specific ethanol source and production process.

In August 2022, Liberty Utilities, a US-based provider of utility services, acquired Sandhill Advanced Biofuels in an undisclosed transaction. This acquisition marks Liberty's inaugural investment in renewable natural gas not subject to regulation. Sandhill Advanced Biofuels, a US-based renewable energy firm, specializes in upgrading biogas into renewable natural gas.

Major companies operating in the advanced biofuels market include Abengoa Bioenergy Co. LLC, Algenol Biofuels Inc., Chemtex Group, Bangchak Corporation Public Company Limited (BCP), Clariant Produkte GmbH, Fiberight LLC, DuPont Industrial Biosciences, GranBio Investimentos S.A., A2BE Carbon Capture LLC, Fujian Zhongde Energy Co. Ltd., Inbicon A/S, INEOS Technologies Limited, Poet-DSM Advanced Biofuel LLC, Green Biologics Ltd., ZeaChem Inc., Sundrop Fuels Inc., Amyris Inc., Gevo Inc., Renewable Energy Group Inc., Novozymes A/S, LanzaTech Inc., Mascoma Corporation, Solazyme Inc., Cool Planet Energy Systems, Enerkem Inc., Butamax Advanced Biofuels LLC, Codexis Inc., Coskata Inc., Aemetis Inc., Iogen Corporation, Siluria Technologies, Kiverdi Inc., Alkol Biotech Inc.

North America was the largest region in the advanced biofuels market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global advanced biofuels market report during the forecast period. The regions covered in the advanced biofuels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the advanced biofuels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The advanced biofuels market consists of sales of corn stover, switchgrass, or methane. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Advanced Biofuels Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on advanced biofuels market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for advanced biofuels ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The advanced biofuels market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Fuel Type: Cellulosic Ethanol; Biofuel; Biobutanol; BioDME; Other Fuel Types
• 2) By Processing Technology: Thermochemical; Biochemical
• 3) By Raw Material: Jatropha; Camelina; Algae; Simple Lignocellulose; Other Raw Materials
• Subsegments:
• 1) By Cellulosic Ethanol: Corn Stover; Sugarcane Bagasse; Wood Chips; Other Biomass Feedstocks
• 2) By Biofuel: Biodiesel; Renewable Diesel; HVO (Hydrotreated Vegetable Oil)
• 3) By Biobutanol: A-Biobutanol; B-Biobutanol; Other Butanol Types
• 4) By BioDME: Produced from Biomass; Produced from Methanol
• 5) By Other Fuel Types: Biogas; Renewable Jet Fuel; Synthetic Fuels
• Companies Mentioned: Abengoa Bioenergy Co. LLC; Algenol Biofuels Inc.; Chemtex Group; Bangchak Corporation Public Company Limited (BCP); Clariant Produkte GmbH; Fiberight LLC; DuPont Industrial Biosciences; GranBio Investimentos S.A.; A2BE Carbon Capture LLC; Fujian Zhongde Energy Co. Ltd.; Inbicon A/S; INEOS Technologies Limited; Poet-DSM Advanced Biofuel LLC; Green Biologics Ltd.; ZeaChem Inc.; Sundrop Fuels Inc.; Amyris Inc.; Gevo Inc.; Renewable Energy Group Inc.; Novozymes A/S; LanzaTech Inc.; Mascoma Corporation; Solazyme Inc.; Cool Planet Energy Systems; Enerkem Inc.; Butamax Advanced Biofuels LLC; Codexis Inc.; Coskata Inc.; Aemetis Inc.; Iogen Corporation; Siluria Technologies; Kiverdi Inc.; Alkol Biotech Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.