Europe Biofuel Market Size - By Fuel Type (Biodiesel, Ethanol), Feedstock (Coarse Grain, Sugar Crop, Vegetable Oil), Application (Transportation, Aviation), & Forecast, 2024 – 2032

Europe Biofuel Market Size

Europe Biofuel Market was valued at USD 26.5 billion in 2023 and is anticipated to grow at a CAGR of 6.7% between 2024 and 2032. Increasing concerns about climate change and the need for sustainable energy sources that have prompted governments to implement policies favouring biofuels. Additionally, advancements in technology have made biofuel production more efficient and cost-effective. The growing awareness among consumers about the environmental benefits of biofuels has also boosted demand.
 

Collaborations between governments, companies, and research institutions have facilitated the development of supportive infrastructure and regulations. For instance, in March 2022, BioEnergy International GmbH has constructed an advanced biodiesel production plant in Hungary, projected to supply fuel for 70,000 vehicles and mitigate 150,000 tons of carbon dioxide emissions. This state-of-the-art facility is poised to play a pivotal role in aiding Hungary's endeavours to reduce greenhouse gas emissions by 55% by 2030 and attain climate neutrality by 2050.

Europe Biofuel Market Trends

The latest trends in the Europe biofuels industry reflect a shift towards advanced biofuels and sustainable feedstocks. There's a growing interest in advanced biofuels produced from non-food sources such as algae, waste oils, and agricultural residues, owing to an increasing emphasis on reducing greenhouse gas emissions. This trend is driven by regulatory initiatives promoting the use of advanced biofuels to meet renewable energy targets. Additionally, there's a focus on enhancing the efficiency and sustainability of biofuel production processes through technological innovations such as advanced fermentation techniques and biorefineries.
 

Another emerging trend is the integration of biofuels with other sectors, such as aviation and maritime transport, as part of efforts to decarbonize these industries. Moreover, there's a growing awareness about the importance of ensuring the sustainability of biofuel feedstocks, leading to increased demand for certified sustainable biofuels. These trends collectively signify a maturing and evolving Europe biofuels market towards greater environmental sustainability and efficiency.
 

Europe Biofuel Market Analysis

Based on fuel type, the ethanol biofuel segment is likely to exceed USD 29.8 billion by 2032 due to its rising demand as a renewable fuel additive, particularly in gasoline blends. Additionally, ethanol is increasingly being used as a high-octane, clean-burning fuel in the transportation sector, especially in countries incentivizing the adoption of biofuels through policy measures such as blending mandates and tax incentives. Moreover, advancements in ethanol production technologies, including the use of cellulosic feedstocks and innovative fermentation processes, are improving the efficiency and sustainability of ethanol production.
 

Based on feedstock, the coarse grain segment will register more than 6.1% growth rate from 2024 to 2032 since grains such as corn and wheat are abundant and widely cultivated in Europe, providing a readily available feedstock for biofuel production. Additionally, advancements in agricultural practices and breeding techniques are increasing the yield and efficiency of coarse grain crops, making them more economically viable for biofuel production.
 

Germany biofuel market is projected to surpass USD 10.7 billion by 2032 due to its robust renewable energy targets and significant governmental support for biofuel production. However, the importance of the Europe biofuel market extends beyond Germany, with key contributions from other major economies such as the UK, France, Spain, and Italy. The UK has been actively promoting biofuels to reduce carbon emissions, offering incentives and mandates for their use in transportation. France, a leader in agricultural production, emphasizes biofuel adoption to enhance energy security and reduce dependence on fossil fuels.
 

Spain has been investing in advanced biofuel technologies and infrastructure to meet its renewable energy objectives. Italy, with its strong agricultural sector, is also investing in biofuel production, driven by environmental concerns and energy diversification goals. These countries collectively contribute to the business growth, shaping its trajectory alongside Germany's advancements.
 

Europe Biofuel Market Share

Companies like Chevron, Total Energies, and Clariant are poised to hold the largest market share in the European biofuel market due to their significant investments in research, development, and infrastructure. These industry giants possess the financial resources and technological capabilities to innovate and scale up biofuel production efficiently.
 

Europe Biofuel Market Companies

• ADM
• BTG International Ltd
• Borregaard AS
• CropEnergies AG
• Chevron Corporation
• Cargill VERBIO AG
• COFCO
• CLARIANT
• FutureFuel Corporation
• Green Joules
• My Eco Energy
• Münzer Bioindustrie GmbH
• Neste
• Praj Industries
• POET, LLC
• TotalEnergies
• The Andersons, Inc.
• UPM
• Wilmar International Ltd
   

Europe Biofuel Industry News

• In February 2022, BDI-BioEnergy International GmbH has revealed a contract with Renewable Energy Group to enhance two biodiesel facilities in Germany through the installation of feedstock pre-treatment technology, enabling the processing of fats and oils. The project is slated for completion by the second half of 2023.
   
• In May 2021, The German government has enacted a fresh biofuel legislation mandating that obligated oil firms substantially boost the utilization of biodiesel, bioethanol, and biomethane within the transportation industry, aiming to curtail carbon emissions.
   

This Europe biofuel market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2019 to 2032, for the following segments:

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Market, By Fuel Type

• Biodiesel
• Ethanol
• Others

Market, By Feedstock

• Coarse grain
• Sugar crop
• Vegetable oil
• Others

Market, By Application

• Transportation
• Aviation
• Others

The above information has been provided for the following countries:

• Germany
• France
• UK
• Spain
• Italy