The global biofuels industry is witnessing robust growth and the trend will likely during the forthcoming period. This is mostly due to growing demand for renewable energy sources, policy changes, and technological advancements.
Companies are continuously working on making the biofuel production process more efficient, cost-effective, and sustainable. They are also adopting advanced production technologies.
In January 2025, Bayer and Neste signed a MoU to jointly develop feedstocks for renewable fuels. The new strategic collaboration is intended to meet growing demand for different types of renewable biofuels. Under this collaboration, the two companies will create a winter canola ecosystem in the United States’ Southern Great Plains.
According to Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division, “Renewable fuels will play a key role in the decarbonization of transportation and energy sectors. So, we are committed to supporting farmer’s ability to deliver low-carbon feedstocks through advancements in sustainable cropping systems and investments in new crops like winter canola”.
In December 2024, Neste and BMW collaborated on the supply of renewable diesel. Under this collaboration, Neste will supply renewable diesel to BMW for the initial fueling of its newly produced vehicles in Germany.
In October 2024, Repsol introduced Nexa100% Renewable Diesel in its service stations to meet growing end user demand. The new diesel is produced from organic waste and has a special formulation that enhances performance and extends the engine life of diesel vehicles.
In September 2024, Novonesis introduced Innova Yeast, its most advanced yeast innovation for ethanol production. It is designed to withstand fermentation stressors and break through fermentation barriers. Innova Yeast has the potential to help ethanol producers achieve more complete fermentations, reduce costs, and improve overall efficiency.
In April 2024, Repsol started large-scale production of renewable fuels at its industrial complex in Cartagena, Spain. It is the only company in Portugal and Spain with a plant fully dedicated to production of renewable fuels on an industrial scale. The new plant, with an annual production capacity of 250,00 tons of renewable fuels, will play a key role in meeting biofuel demand for industries like automotive and aviation.
In September 2023, ADM and Syngenta Group signed a memorandum of understanding (MoU) to facilitate research and commercialization of low carbon next-generation oilseeds and other enhanced varieties to meet rising demand for biofuels and other products.
These recent developments are set to play an important role in meeting the global demand for sustainable biofuels. They will also boost growth of the global biofuels industry by improving biofuel production efficiency, promoting sustainability, and reducing costs.
Increasing collaborations between companies, such as Bayer-Neste collaboration, will make feedstocks more accessible to biofuel manufacturers. Similarly, introduction of Repsol’s Nexa100% Renewable Diesel will help to meet growing demand from industries like automotive.
Increasing investments and technological breakthroughs will create a future where biofuels play a key role in decarbonizing industries like transportation and aviation. High adoption of biofuels for applications like transportation, heating, and electricity generation is expected to fuel their demand.
According to Coherent Market Insights (CMI), global biofuel demand is set to increase at 9.2% CAGR during the assessment period. Total industry size will likely reach US$ 497.29 billion by 2032.
Sources:
Companies: Repsol, Neste, ADM
