United States Biodiesel Market Report by Application (Fuel, Power Generation, Others), Feedstock (Vegetable Oil, Animal Fats), States and Company Analysis 2024-2032

The United States biodiesel market is estimated to reach US$ 66.65 billion by 2032, up from US$ 39.27 billion in 2023, with a CAGR of 6.05% from 2024 to 2032.

Biodiesel is one of the most demanding renewable fuels in the United States. It is produced from plant-based oils or animal-based fats. Vegetable oils are a leading feedstock for biodiesel production in the United States. This biofuel can be used in diesel engines, either in its pure form or blended form. The government is appealing to adopt biodiesel, reducing carbon dioxide, greenhouse gas emissions, particulate pollution, etc.

The US biofuels industry is booming, and a fresh surge in production is just around the corner, thanks to increased demand for renewable diesel and sustainable aviation fuels (SAFs) in the coming years. Rystad Energy research predicts biofuel production in the US will increase by about 53% by the middle of the next decade, jumping from 850,000 barrels of oil equivalent per day in 2023 to about 1.3 million barrels in 2035. Domestic output is expected to surpass 1 million bpd as early as 2026.

The demand for renewable fuel in the United States is increasing. The biodiesel manufacturer expands production capacities by opening new facilities and upgrading the existing plants. Strategic investment introduces new players, showing biodiesel's role as a sustainable alternative fuel. This expansion fulfills current industry demands and creates job opportunities and energy security. Federal and state governments play a crucial role in making favorable policies that increase the production and consumption of biodiesel in the United States.

The surge of strategic investments and collaborations further pushes the United States biodiesel market. Many stakeholders extending across the value chain, whether manufacturers, tech visionaries, or giant oil corporations, are manifesting robust involvement in elevating biodiesel production centers and facilities. The significant investment in research & development leads to increased efficiencies and biodiesel's environmental viability. The correlation among these multiple entities and their efforts in the biodiesel sphere will further boost the biodiesel market in the United States.

Growing awareness regarding greenhouse gas effects on overall climate change is pushing interest in biodiesel, which causes insignificant carbon emissions compared to conventional sources of fossil fuels. As biodiesel comes from agriculture feedstock, it is an alternate source of income for farmers. Reduced emissions to a certain extent from biodiesel combustion lead to health benefits like lower rates of cardiovascular disease and respiratory disease, which are associated with air pollution.

This report covers a comprehensive breakdown and assessment of the market based on application. This encompasses power generation, fuel, and others. According to Renub Research, fuel has the largest market share. In the United States, there is increasing demand for biodiesel in power generation and fuels as green and viable alternative fuels compared to conventional fossil fuels.

Competitive Landscape

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 - Market breakup in 3 viewpoints:

1. Fuel

2. Power Generation

3. Others

Feedstock - Market breakup in 2 viewpoints:

1. Vegetable Oil

2. Animal Fats

States - Market breakup of 29 States:

1. California

2. Texas

3. New York

4. Florida

5. Illinois

6. Pennsylvania

7. Ohio

8. Georgia

9. New Jersey

10. Washington

11. North Carolina

12. Massachusetts

13. Virginia

14. Michigan

15. Maryland

16. Colorado

17. Tennessee

18. Indiana

19. Arizona

20. Minnesota

21. Wisconsin

22. Missouri

23. Connecticut

24. South Carolina

25. Oregon

26. Louisiana

27. Alabama

28. Kentucky

29. Rest of United States

All the key players have been covered from 3 Viewpoints:

• Overview
• Recent Development
• Revenue

Company Analysis

1. Archer Daniels Midland Company

2. FutureFuel

3. Neste's

4. Renewable Energy Group, Inc.

5. Bunge Global SA

6. Wilmar

7. Shell