Advanced Biofuels Market Size was valued at USD 1,26,428.6 million in 2022. The Advanced Biofuels Market industry is projected to grow from USD 1,59,173.6 million in 2023 to USD 8,90,988.0 million by 2030, exhibiting a compound annual growth rate (CAGR) of 27.9% during the forecast period (2023 - 2030). Advanced biofuels refer to a class of renewable and sustainable fuels that are produced from non-food feedstocks through advanced processing techniques. The primary force behind the growth of the advanced biofuels market worldwide is the growing investments in advanced biofuel. Another factor influencing the Advanced Biofuels Market is increasing demand for secure, sustainable, and clean energy.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The European Union (EU) has set ambitious renewable energy targets, including the Renewable Energy Directive (RED II), which mandates that 14% of transport fuel should come from renewable sources by 2030. This target creates a favorable environment for the development and deployment of advanced biofuels. The EU has implemented supportive policies and financial incentives to promote the production and use of advanced biofuels. These policies include feed-in tariffs, tax incentives, grants, and loan guarantees, which encourage investments in advanced biofuel technologies. Significant investments have been made in research and development activities focused on advancing biofuel technologies. These investments aim to improve the efficiency and cost-effectiveness of advanced biofuel production, enhance feedstock availability, and optimize conversion processes.
For instance, in December 2021, according to a data published by the European Commission, a part of the executive of the European Union, the European Commission approved two support measures for the construction of advanced biofuels plants in Finland. More specifically, the commission has approved the following 2 investment aid measures notified by Finland: (i) €24.5 (USD 27) million in favor of NordFuel (a unique project in second generation (2G) bioethanol and biomethane development targeting Northern and Central European markets) to support the construction of an advanced biofuel demonstration plant; and (ii) €9.5 (USD 10.47) million in favor of Veolia, to support the construction of a biomethanol demonstration plant. The objective of the measures is to increase the production of advanced biofuels and biogas for transport.
In January 2023, according to a data published by EURACTIV, an independent pan-European media network specialized in EU affairs, the investments foreseen in fuels would double production capacity in Europe from what it is now to 10 megatons by 2030, according to the organization. This sets out clearly how there is substantial availability of sustainable biomass, mostly in the EU to make advanced biofuels up to 150 million tons a year by 2050.
Additionally, in December 2022, the European Investment Bank (EIB), the majority shareholder of the European Investment Fund (EIF), provided a €120 (USD 132.23) million loan to Repsol, a Spanish multinational energy and petrochemical company, to support the construction and operation of the first advanced biofuels production plant at the company's facilities in Cartagena, Murcia, Spain. The plant produced second-generation and advanced biofuels from different types of waste primarily from the agri-food industry, such as used cooking oils, as part of the transition process towards a more circular economy. Construction work began in March 2022.
The Advanced Biofuels Market segmentation, based on feedstock has been segmented as energy crops, municipal waste, food waste, algae, and others. Among these, energy crops type is projected to dominate the Advanced Biofuels Market revenue through the projected period. Energy crops are grown exclusively for biofuel production, ensuring a reliable and sustainable feedstock supply. Unlike conventional biofuels that may compete with food crops for resources, energy crops are cultivated on marginal lands or non-agricultural areas, minimizing potential conflicts with food production. Many energy crops, such as switchgrass, miscanthus, and fast-growing trees, have high biomass yields. This means they produce large amounts of plant material, making them efficient feedstocks for biofuel production compared to traditional crops. Energy crops are often chosen for their ability to sequester carbon dioxide from the atmosphere during their growth cycle. When converted into biofuels and used in place of fossil fuels, the overall greenhouse gas emissions can be significantly reduced, contributing to climate change mitigation.
June 2022, Clariant produces first commercial sunliquid® cellulosic ethanol at new plant in Podari, Romania. According to the company, around 50,000 tons of second-generation biofuels will be derived from 250,000 tons of locally sourced agricultural residues.
The Advanced Biofuels Market segmentation, based on technology, the market is segmented as biochemical and thermochemical. Out of which thermochemical segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Thermochemical processes can handle a wide range of feedstocks, including lignocellulosic biomass, agricultural and forestry residues, energy crops, and even waste materials. This versatility allows for greater feedstock diversification and reduces competition with food production. Thermochemical technologies are crucial in converting cellulosic materials, such as wood, agricultural residues, and energy crops, into advanced biofuels like cellulosic ethanol. Cellulosic feedstocks are more abundant and have lower environmental impacts compared to traditional biofuel feedstocks, making them a sustainable option for advanced biofuel production. Thermochemical processes can achieve higher conversion efficiencies than some other biofuel production methods, particularly for complex feedstocks that are difficult to convert through biochemical means. This efficiency helps to improve the overall economics of advanced biofuel production.
April 2021, Clariant, collaborated with Pertamina, to evaluate and test the feasibility of Clariant's sunliquid.
The Advanced Biofuels Market segmentation, based on product, the market is segmented as biodiesel, cellulosic ethanol, biogas, biobutanol, and others. Out of which biogas segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Biogas is a renewable energy source derived from organic waste materials, such as agricultural residues, food waste, and sewage sludge. As a result, it contributes to reducing greenhouse gas emissions and dependence on finite fossil fuels. Biogas can be used for various applications, including electricity generation, heating, and as a vehicle fuel. The ability to utilize biogas in different sectors makes it a versatile and valuable bioenergy resource. Biogas production utilizes organic waste that would otherwise decompose in landfills or emit methane, a potent greenhouse gas. By converting this waste into biogas, the process helps manage waste while producing a useful and clean energy source.
April 2022, REGI announced in February 2022 that it had begun commercial production of RNG at its biogas plant in Emmetsburg, Iowa. The plant is expected to produce 10 million MMBtu of RNG per year, which will be used to fuel transportation vehicles.
The Advanced Biofuels Market segmentation, based on end-use industry, the market is segmented as residential, commercial, and industrial. Out of which the commercial segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. The commercial transportation sector, including aviation, shipping, trucking, and passenger vehicles, relies heavily on liquid fuels. As countries and industries seek to reduce their carbon footprint and comply with emissions regulations, there is a growing demand for advanced biofuels as a sustainable and low-carbon alternative to conventional fossil fuels. The aviation industry has shown significant interest in sustainable aviation fuels, which are a subset of advanced biofuels. SAF offers a viable option to reduce the aviation sector's greenhouse gas emissions, and many airlines have committed to integrating SAF into their operations to achieve carbon neutrality and environmental sustainability. Advanced biofuels, such as renewable diesel and drop-in fuels, have properties that closely resemble traditional petroleum-based fuels. This similarity allows them to be directly blended with or substituted for conventional fuels in existing infrastructure, engines, and vehicles, making their commercial adoption more feasible.
December 2021, Aemetis launched its advanced biofuel called EcoSyn fuels in 2022. EcoSyn fuels are made from a variety of feedstocks, including corn stover, sugarcane, and wood waste. They can be used in gasoline and diesel engines and can reduce greenhouse gas emissions by up to 80%. The company announced in April 2022 that it had signed a deal with United Airlines to supply EcoSyn fuels for use in United's commercial fleet.
By Region, the study segments the Advanced Biofuels market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The sizable, advanced biofuels industry in North America is likely to make the region the largest expanding global market for advanced biofuels. North American countries, particularly the United States and Canada, have implemented supportive policies and regulations to promote the development and adoption of advanced biofuels. These policies often include mandates, incentives, and funding support to encourage investment in research, development, and commercialization of advanced biofuel technologies. North America has substantial biomass resources, including agricultural residues, energy crops, forestry waste, and municipal solid waste. The availability of diverse feedstocks creates a favorable environment for the production of advanced biofuels using various conversion technologies. North America is home to numerous research institutions, universities, and companies actively engaged in advanced biofuel research and innovation. This region fosters collaboration between academia, government agencies, and private enterprises to advance bioenergy technologies, including thermochemical and biochemical conversion processes.
June 2022, Amyris launched its renewable isobutene product, called Biofene, in 2022. Biofene is a drop-in replacement for petroleum-based isobutene and can be used to make a variety of products, including fuels, plastics, and other chemicals.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Advanced Biofuels Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Advanced Biofuels Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global advanced biofuels industry to benefit clients and expand the Advanced Biofuels market sector is partnerships and acquisitions. The market for Advanced Biofuels is recognized as being extremely competitive and fragmented. The market for Advanced Biofuels offers considerable potential opportunities for domestic and unorganized companies. Some of the key players operating in the Advanced Biofuels Market are BASF SE (Germany), Clariant AG (Switzerland), INEOS Group Ltd. (UK), Evonik Industries AG (Germany), Shell PLC (UK), ExxoMobil Corporation (U.S.), Borregaard AS (Norway), Austrocel Hallein GmbH (Austria), UPM (Finland), and VERBIO (Germany). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.
BASF SE: BASF SE (BASF) is one of the leading chemical producers in the world. Its portfolio is organized into six segments, namely, chemicals, materials, industrial solutions, surface technologies, nutrition & care, and agricultural solutions. The company has an extensive regional presence. It has subsidiaries and joint ventures in more than 80 countries and operates 390 production sites in Europe, Asia-Pacific, North America, and Africa. BASF has customers across more than 190 countries and supplies products to a range of industries.
CLARIANT AG: Clariant AG (Clariant) creates, produces, sells, and distributes various specialized chemicals utilized in clients' production and treatment processes. The company's product offerings include additives, automotive fluids, agricultural waste, petrochemical catalysts, performance materials, surfactants, mining chemicals, intermediates, and emulsions. The industrial, personal care, paints & coatings, crop protection, automotive, plastic, transportation, refining, and pharmaceutical industries all use the company's goods. Five business units comprise the group's ongoing operations: Industrial & Consumer Specialties, Catalysts, Oil & Mining Services, Functional Minerals, and Additives. The three business areas of care chemicals, catalysis, and natural resources comprise these business units and the business line biofuels & derivatives. It functions through an international network of production facilities, R&D centers, and technical hubs. The corporation sells its goods in the Americas, Europe, Asia, and Middle East & Africa.
July 2021: Eni and BASF launch joint R&D initiative to reduce the CO2 footprint of the transportation sector. The merger aims to develop a new technology to produce advanced bio-propanol from glycerin.
February 2022, Kemira launched first biomass-balanced polyacrylamide. It has fully started production of its newly developed bio-based polyacrylamide polymer. The first commercial volumes were shipped to a sewage treatment plant in Helsinki Regional Environmental Services for trials.
November 2022: Raízen, a joint venture between Royal Dutch Shell and Brazilian energy producer Cosan, was established in 2010 as part of Shell’s continuous investment in renewable and low-carbon energy. To further extend its production in renewable energy, Raízen has recently announced plans to invest in a new second-generation ethanol (E2G) plant.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD Â 1,26,428.6 million |
| Market Size 2023 | USD Â 1,59,173.6 million |
| Market Size 2030 | USD Â 8,90,988.0 million |
| Compound Annual Growth Rate (CAGR) | 27.9% (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 & 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Feedstock, Technology and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Saudi Arabia, UAE, Argentina, |
| Key Companies Profiled | BASF SE (Germany), Clariant AG (Switzerland), INEOS Group Ltd. (UK), Evonik Industries AG (Germany), Shell PLC (UK), ExxoMobil Corporation (U.S.), Borregaard AS (Norway), Austrocel Hallein GmbH (Austria), UPM (Finland), and VERBIO (Germany) |
| Key Market Opportunities | ·      Rising adoption of second-generation biofuels in industrial and energy sectors |
| Key Market Drivers | ·      Growing investments in advanced biofuel. |
Frequently Asked Questions (FAQ) :
Advanced Biofuels Market was US$ 1,26,428.6 Mn in 2022
The growth rate of the Advanced Biofuels Market was 27.9% in 2022.
North America held the largest market share in the Advanced Biofuels Market
Key players in Advanced Biofuels Market included BASF SE (Germany), Clariant AG (Switzerland), INEOS Group Ltd. (UK), Evonik Industries AG (Germany), Shell PLC (UK), ExxoMobil Corporation (U.S.), Borregaard AS (Norway), Austrocel Hallein GmbH (Austria), UPM (Finland), and VERBIO (Germany)
Energy crops led the Advanced Biofuels Market
Thermochemical had the largest market share in the Advanced Biofuels Market
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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