North America Biofuel Market

North America Biofuel Market Size

The North America biofuel market was valued at USD 52.3 billion in 2024 and is estimated to reach the value of USD 174.6 billion by 2034, growing at a CAGR of 12.9% from 2025 to 2034. Renewable fuel mandates and tax incentives are encouraging the use of biofuels, which help lower greenhouse gas emissions and improve energy security.

The U.S. Renewable Fuel Standard requires mixing biofuels with fossil fuels, ensuring steady demand and promoting investment in production. For instance, in 2023, the EPA set renewable fuel targets, including 2.82 billion gallons of diesel made from biomass, to meet blending requirements.

The push for climate goals is increasing the demand for biofuels with low carbon emissions, offering a sustainable alternative to traditional fossil fuels. Companies and consumers are switching to biofuels to cut greenhouse gas emissions, aligning with corporate sustainability goals and stricter environmental rules. The U.S. Department of Energy’s initiative, launched in April 2024, aims to cut greenhouse gas emissions from fuels and chemicals by at least 85% by 2035, further boosting the need for low-carbon biofuels.

Biofuels also reduce dependence on imported oil, improving energy security by diversifying energy sources. Domestic production from crops, including corn and soybeans, strengthens energy independence, stabilizes supply chains, and supports rural economies through local sourcing. In 2022, the U.S. exported about 1.0 billion gallons of biofuels, supported by strong domestic ethanol and biodiesel production from corn and soybeans, reinforcing North American energy independence.

Innovations in making feedstock more efficient and improving conversion processes are lowering costs and enhancing the sustainability of biofuel production. Advanced biofuels from waste materials or algae are increasing production capacity, making biofuels more scalable and competitive with traditional fuels. In 2023, the ability to produce renewable diesel and other biofuels in the U.S. grew by 44%, reaching 4.3 billion gallons per year by January 2024, thanks to improved technologies and the expanded use of waste and algae-based materials.

The Trump administration's tariff introduced in April 2025 on imported biofuels particularly targeting South American ethanol and Southeast Asian biodiesel has significantly reshaped the North American biofuel market. Domestic producers in the U.S. and Canada are experiencing a competitive advantage, leading to a rise in local production and investment. However, the tariffs have also increased feedstock costs and disrupted supply chains, putting pressure on downstream pricing.

North America Biofuel Market Trends

Producers are increasingly using non-food materials like algae and agricultural waste to reduce competition with food sources and make biofuel production more sustainable. These materials support sustainability, reduce food-versus-fuel conflicts, and improve biofuel yields with advanced processing methods. For instance, in 2023, the Department of Energy and the Environmental Protection Agency announced a USD 6 million initiative funded by the Inflation Reduction Act to support six early-stage biorefineries.

Governments are expanding low-carbon fuel standards and increasing funding for bio-refineries to encourage the production and use of sustainable biofuels. The demand for aviation and marine biofuels is rising due to efforts to reduce carbon emissions and sector-specific climate commitments. For instance, Canada's Clean Fuel Regulations require a reduction in lifecycle carbon intensity of 15 million tons of CO?e by 2030, supported through tradable credits.

Companies are increasingly adopting certifications, including RSB and ISCC, to meet environmental standards and show their commitment to sustainable biofuel production. This trend promotes transparency, attracts environmentally conscious consumers, and aligns biofuels with global carbon reduction goals, including corporate net-zero commitments. For instance, in 2023, the USDA's BioPreferred Program certified over 7,800 biobased products, including biofuels, under its "USDA Certified Biobased Product" label, ensuring renewable content transparency and meeting eco-standards.

Collaborations among energy firms, farmers, and tech startups are speeding up the development of innovative solutions for sustainable biofuel production. Joint ventures are optimizing supply chains, increasing production, and integrating biofuels into existing fuel systems, making them more accessible in the market. In 2024, Natural Resources Canada's Materials for Clean Fuels Challenge partnered with 12 universities and 25 industry firms to develop new catalysts, improve agricultural waste planning, and use existing fuel networks.

North America Biofuel Market Analysis

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• The North America biofuel market was valued at USD 38 billion, USD 44.8 billion, and USD 52.3 billion in 2022, 2023 and 2024, respectively. The fuel type segments include biodiesel, ethanol, and other.
  
• The biodiesel segment was valued at USD 11 billion in 2024. Advancements in technology are driving improvements in biodiesel production, making it more efficient and less expensive for commercial use. For instance, a U.S. law has extended a tax credit of USD 1.00 per gallon for biodiesel mixtures until 2024. This encourages the use of soybean oil, waste fats, and recycled cooking oil for transportation purposes.
  
• The ethanol segment is estimated to grow to be over CAGR of 12% by 2034. Innovations in ethanol made from agricultural leftovers are reducing emissions from cars while supporting farms and addressing concerns about using food crops for fuel. The EPA's 2023 rule under the Clean Air Act requires that 11.96% of fuel be renewable, which means 15 billion gallons of corn ethanol must be blended into gasoline.
  

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• Based on applications, the North America biofuel market is segmented into transportation, aviation, and others. The transportation segment has a market revenue share of 64.4% in 2024. Biofuels are becoming more common for powering cars, trucks, and ships due to requirements for mixing ethanol and using renewable diesel.
  
• Governments are encouraging clean fuels in public transport and freight to cut emissions while using current fuel systems for easy adoption. In the U.S., a program under the Inflation Reduction Act offers up to USD 1 per gallon for renewable diesel and biodiesel produced through 2024, supporting their use in heavy-duty vehicles.
  
• The aviation segment is estimated to grow to be over a CAGR of 13% by 2034. Airlines are increasingly using sustainable aviation fuel (SAF) to meet net-zero targets and reduce their carbon footprint. SAF is made from eco-friendly materials including agricultural leftovers and waste oils, providing a greener option than regular jet fuel. The Inflation Reduction Act offers a USD 1.25 per gallon tax credit for SAF that reduces greenhouse gases by 50% or more, encouraging its wider use.
  

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• The U.S. biofuel market in 2022, 2023 and 2024 was valued at USD 35.4 billion, USD 41.7 billion, and USD 48.7 billion, respectively. The U.S. government has launched the Sustainable Aviation Fuel Grand Challenge to promote the use of eco-friendly aviation fuel. This initiative works alongside existing efforts involving corn-based ethanol and renewable diesel. As per the EPA's 2023 rules, 15 billion gallons of corn ethanol and 2.82 billion gallons of biomass-based diesel need to be produced this year.
  
• The Canada market is expected to grow over CAGR of 22% by 2034. In Canada, the focus is on biodiesel and ethanol made from canola and wheat, supported by the federal Clean Fuel Regulations. The Canadian government has introduced the Clean Fuel Standard to reduce greenhouse gas emissions by promoting cleaner fuels, including biodiesel and ethanol. These rules require fuel suppliers to lower carbon emissions by 3.5 g CO?e/MJ in 2023, with a yearly increase of 1.5 g CO?e/MJ, reaching 14 g CO?e/MJ by 2030.
  

North America Biofuel Market Share

The top 4 companies in the North American biofuel market are ADM, Cargill, Chevron Corporation, and POET, LLC, together holding over 30% of the market share. Their dominance is due to their large production capacities, advanced biofuel technologies, and strategic partnerships in the agricultural and energy sectors. These companies have been able to maintain their competitive edge by investing in research and development to improve the efficiency and sustainability of their biofuel production processes.

ADM is a major player in agricultural processing and biofuels, using its carbohydrate solutions division to produce ethanol and biodiesel from corn and vegetable oils for transportation and industrial markets. In 2024, ADM expanded its Decatur, Illinois facility, increasing renewable diesel production through its four processing plants located in Nebraska, Iowa, Illinois, and Minnesota. The company’s focus on sustainable feedstocks and investments in carbon capture technologies strengthens its position in the market.

North America Biofuel Market Companies

• Cargill, based in the U.S., reported a revenue of USD 177 billion in 2024. As a major private company, Cargill is heavily involved in biofuel production, focusing on biodiesel and ethanol made from agricultural sources, including soybean oil and corn. In 2024, Cargill upgraded its Kansas City facility with a new biodiesel production line, boosting output by 20% to meet the growing demand for renewable fuels in the U.S. Midwest.
  
• Chevron Corporation, based in the U.S., achieved revenue of USD 200.9 billion in 2024. Through its Renewable Energy Group subsidiary, Chevron has expanded its renewable fuel options, focusing on biodiesel and renewable diesel. In 2023, Chevron completed an expansion of its Geismar, Louisiana, plant, increasing production capacity to 340 million gallons annually.
  
• POET LLC, based in the U.S., reported revenue of USD 6.5 billion in 2024. Operating 33 biorefineries across the U.S., POET produces over 2 billion gallons of ethanol each year. In 2024, POET launched the NextGen Ethanol initiative, using advanced fermentation methods to increase yield and reduce carbon intensity by 10%.
  

Key market players operating across the North America biofuel market are:

• ADM
• Andersons, Inc.,
• Cargill
• Chevron Corporation
• Clean Energy
• CLARIANT
• COFCO
• FutureFuel Corporation
• Gevo, Inc.
• Green Plains Inc.
• My Eco Energy
• Neste
• POET, LLC
• Renewable Energy Group
• Rentech
• TotalEnergies
• UPM
• VERBIO AG
  

North America Biofuel Industry News

• In March 2024, Neste signed a long-term deal to supply renewable diesel to a major fleet operator in California, in line with the state's Low Carbon Fuel Standard. This agreement uses Neste’s MY Renewable Diesel, made from waste and residues, to reduce greenhouse gas emissions. The deal strengthens Neste’s position in the North American biofuel market, especially on the West Coast.
  
• In June 2024, Gevo, Inc. partnered with the U.S. Department of Energy to boost the production of sustainable aviation fuel using its unique technology. This partnership includes a USD 10 million grant to expand Gevo’s facility in Luverne, Minnesota, aiming to produce 60 million gallons of sustainable aviation fuel annually. This collaboration enhances Gevo’s role in the North American biofuel market by speeding up the development of low-carbon aviation fuels.
  
• In July 2023, Renewable Energy Group, a Chevron company, announced its purchase of Amber Resources, a California-based distributor of biofuels and lubricants. This acquisition expands REG’s distribution network for biodiesel and renewable diesel in the Western U.S., improving its ability to serve fleet operators and fuel retailers. This strategic move strengthens REG’s presence in the North American biofuel market, meeting the rising demand for low-carbon fuels.
  
• In October 2023, Green Plains Inc. announced it was increasing its ethanol production capacity at its Omaha, Nebraska facility by 10% to meet the growing demand for renewable fuels in the U.S. The expansion includes upgrades to produce high-protein feed co-products, enhancing both sustainability and profitability. This initiative reinforces Green Plains’ role in the North American biofuel market, supporting regional ethanol blending requirements.
  

This North America biofuel market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Mtoe” and “USD Million” from 2021 to 2034, 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:

• North America
  • U.S.
  • Canada