United States Biodiesel Market Analysis
The biodiesel market in the United States is projected to experience substantial growth, with an estimated value of US$66.65 billion by the year 2032, marking a significant increase from US$39.27 billion in 2023. This represents a compound annual growth rate (CAGR) of 6.05% from 2024 to 2032.
Biodiesel has emerged as a highly sought-after renewable fuel option in the United States due to its environmentally friendly nature. It is derived from a variety of sources such as plant-based oils and animal-based fats. Among these sources, vegetable oils have established themselves as the primary feedstock for biodiesel production in the United States. This versatile biofuel can be utilized in diesel engines either in its pure form or as a blend. The government is actively promoting the adoption of biodiesel as it offers significant environmental benefits, such as reducing carbon dioxide emissions, minimizing greenhouse gas emissions, and curbing particulate pollution.
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Driving Factor of United States biodiesel market
Increase Production in United States: The biofuels industry in the United States is experiencing rapid growth, with a projected surge in production on the horizon. This expansion is being driven by a rising demand for renewable diesel and sustainable aviation fuels (SAFs) in the coming years. According to research from Rystad Energy, biofuel production in the US is anticipated to increase by approximately 53% by the mid-2030s. This surge will see production rates climb from 850,000 barrels of oil equivalent per day in 2023 to around 1.3 million barrels by 2035. It is expected that domestic output will surpass 1 million barrels per day as early as 2026. This growth reflects a strong and promising future for the US biofuels industry.
Growing demand of renewable fuels: The United States is experiencing a growing need for renewable fuel. To meet this demand, biodiesel manufacturers are enhancing their production capabilities by establishing new facilities and modernizing existing plants. Through strategic investments, new participants are entering the market, highlighting biodiesel's significance as a sustainable substitute for traditional fuel. This expansion not only meets the current requirements of the industry but also generates employment opportunities and contributes to energy security. The formulation of favorable policies by federal and state governments is pivotal in boosting the production and usage of biodiesel across the United States.
Increasing investments and collaborations in the United States: The United States biodiesel market continues to experience a notable surge in strategic investments and collaborations. A wide array of stakeholders, including manufacturers, technology innovators, and major oil corporations, are actively involved in driving the expansion of biodiesel production facilities and centers. Considerable investment in research and development is yielding higher efficiencies and enhancing the environmental sustainability of biodiesel. The concerted efforts of these diverse entities in the biodiesel sector are poised to further elevate the biodiesel market in the United States.
Growing awareness regarding greenhouse gas effects: The increasing recognition of the impact of greenhouse gases on global climate change has sparked a surge of interest in biodiesel. Unlike traditional fossil fuels, biodiesel generates minimal carbon emissions, making it an environmentally friendly alternative. Derived from agricultural feedstock, biodiesel also provides farmers with an alternative income source. Furthermore, the lower emissions from biodiesel combustion contribute to improved public health by reducing rates of cardiovascular and respiratory diseases associated with air pollution.
United States Biodiesel Market Analysis
Some of the prominent players in the United States biodiesel market include Archer Daniels Midland Company, FutureFuel, Neste’s, Renewable Energy Group, Inc., Bunge Global SA, Wilmar, and Shell.
United States Biodiesel Market News
In June 2022, Chevron acquired Renewable Energy Group (REG), a leading US biodiesel producer, to help expand its renewable fuels business and provide lower-carbon transportation solutions. Chevron aims to increase its renewable fuel production capacity to 100,000 barrels per day by 2030.
In 2023, Be8 announced its entry into the US market, new biofuel production technology investments, and a cereal-based ethanol production project. The company's president said these actions indicate a new strategic direction to build a global technology company focused on renewable energies.
In June 2023, Viridos received $25 million in funding from Breakthrough Energy Ventures, United Airlines Holdings Inc., and Chevron Corporation to develop a pilot facility for algae-based biofuel in California.
In 2022, Pacific Biodiesel, Hawaii's only commercial producer of liquid biofuels, celebrated the 10th anniversary of its biodiesel refinery on Hawaii Island. The facility began producing biodiesel in 2012 and now produces more than 5.5 million gallons annually, all of which are sold in Hawaii.
In September 2022, POET announced the launch of its 70 million gallons-per-year biofuels plant, Project Liberty, in Emmetsburg, Iowa. The plant specializes in converting corn crop residue into cellulosic ethanol.
Application- United States Biodiesel Market breakup in 3 viewpoints:
- Fuel
- Power Generation
- Others
Feedstock- United States Biodiesel Market breakup in 2 viewpoints:
- Vegetable Oil
- Animal Fats
States – Market breakup of 29 States:
- California
- Texas
- New York
- Florida
- Illinois
- Pennsylvania
- Ohio
- Georgia
- New Jersey
- Washington
- North Carolina
- Massachusetts
- Virginia
- Michigan
- Maryland
- Colorado
- Tennessee
- Indiana
- Arizona
- Minnesota
- Wisconsin
- Missouri
- Connecticut
- South Carolina
- Oregon
- Louisiana
- Alabama
- Kentucky
- Rest of United States
All the key players have been covered from 3 Viewpoints:
- Overview
- Recent Development
- Revenue
Company Analysis – United States Biodiesel Market
- Archer Daniels Midland Company
- FutureFuel
- Neste’s
- Renewable Energy Group, Inc.
- Bunge Global SA
- Wilmar
- Shell
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