Advanced Renewable Fuels Market: Current Analysis and Forecast (2023-2030)

Advanced renewable fuels (ARF) are a type of energy produced from renewable coffers that have experienced fresh processing way beyond simple conversion from biomass to liquid or gassy form. These processes may involve chemical variations, like the addition of catalysts or other substances, to enhance the parcels of the energy and ameliorate its performance in machines or other operations. Exemplifications of ARF include cellulosic ethanol, which is made from factory material that cannot be fluently converted into conventional ethanol, and alternate-generation biofuels, which are made from non-food feedstocks like agrarian waste or algae. ARF is seen as an implicit result to address enterprises about food security and land use associated with traditional biofuel crops.

The advanced renewable fuels market is expected to grow at a steady rate of around 35% owing to the Rising awareness about the use of renewables coupled with the growing awareness regarding curbing carbon emissions. Major companies in the market are focusing on merger and acquisition activities for their establishment in the market as advanced renewable fuel production, technology, and market are in the developing stage in most countries. For instance, in May 2021, at the Porsche Mobil 1 Supercup, ExxonMobil and Porsche tested advanced biofuels and renewable, lower-carbon eFuels on the racetrack in Porsche's high-performance motorsports engines.

Based on renewable fuel type, the market is segmented into Bio-based diesel, Biogasoline, Advanced biofuels, Algae-based fuels, and others. The Advanced biofuels category witnessed higher market growth during the forecast period. This is mainly owing to its utilization of diesel and jet fuels. Also, the blending of biodiesel in diesel gives economic advantages and helps to reduce greenhouse gas emissions. The increasing demand for energy and depleting energy resources around the world are expected to drive the demand for biodiesel in the future. For instance, in July 2023, Indian Oil Corporation Limited (IOCL) and Praj Industries Limited (Praj) sent a term sheet to boost the advanced biofuels production capacity in India.

For a better understanding of the market adoption of the Advanced renewable fuel industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is expected to hold a significant market share in the advanced renewable fuels market and is expected to witness an influential CAGR in the forecasted period. This is mainly owing to the increasing popularity of renewable energy in the region. Additionally, the encouragement by the government for the use of renewable sources like biofuels, bio gasoline, bio-diesel, and others in the region is adding to the pace of the market growth leading to a dramatic increase in advanced renewable fuel production in North America. Moreover, the Canadian government's commitment to reducing greenhouse gas emigrations and transitioning to a low-carbon frugality. To achieve this, the government has set ambitious targets for adding the use of renewable energy in the transportation sector, with a thing of having 15 of all light-duty vehicles being powered by electricity or hydrogen energy cells by 2035. Furthermore, the US has abundant coffers of biomass feedstocks, making it a seductive position for ARF products. Also, various companies are investing in ARF exploration and development, and new installations are being established to meet the growing demand for these clean energy sources. Thus, the high contribution from various countries of North America is increasing the demand for advanced renewable fuels in the market.

Some of the major players operating in the market include: Petrobras; POET, LLC; Royal Dutch Shell plc; Gevo; ConocoPhillips; Cargill, Incorporated; Exxon Mobil Corporation; DuPont; Eni S.p.A.; Biotexus Energy Private Limited.