Green Diesel Market Report 2024

This Green Diesel market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The green diesel market size has grown rapidly in recent years. It will grow from $28.26 billion in 2023 to $31.76 billion in 2024 at a compound annual growth rate (CAGR) of 12.4%. The growth observed during the historical period can be linked to escalating crude oil prices, which spurred interest in alternative fuels, early environmental regulations aimed at decreasing carbon emissions, the initial advancements in hydrotreating technology, and heightened awareness of climate change, all of which led to increased research into renewable energy solutions.

The green diesel market size is expected to see rapid growth in the next few years. It will grow to $50.9 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. In the forecast period, growth can be attributed to rising investments in refining technologies, diversification of feedstock sources, an increasing demand for sustainable aviation fuel (SAF), the establishment of biofuel distribution infrastructure, carbon pricing, and more stringent emission regulations. Key trends expected during this period include the emergence of waste-to-energy innovations, progress in algae-based biofuel technologies, the creation of modular bio-refineries, and a growing emphasis on zero-waste production methods.

The increasing shift toward sustainable energy is anticipated to drive the growth of the green diesel market in the future. Sustainable energy refers to energy production and consumption practices that meet current demands while ensuring that future generations can also fulfill their energy needs. The rising demand for sustainable energy is influenced by factors such as climate change, fossil fuel depletion, and the need for cleaner, more efficient energy solutions. Green diesel contributes to sustainability by utilizing renewable feedstocks and reducing greenhouse gas emissions. It can be used in existing engines, facilitating the transition to cleaner, eco-friendly transportation. For example, the International Energy Agency (IEA), a France-based intergovernmental organization, reported in December 2023 that solar photovoltaic power generation reached a record 270 TWh in 2022, marking a 26% increase from 2021. Thus, the shift toward sustainable energy is propelling the growth of the green diesel market.

Leading companies in the green diesel sector are focusing on the development of advanced products such as renewable diesel to lower carbon emissions and meet the rising demand for sustainable energy solutions. Renewable diesel, also known as green diesel, is a biofuel that shares chemical similarities with petroleum diesel but is derived from renewable sources such as vegetable oils, animal fats, and waste oils. It is produced through a hydrotreating process that removes oxygen, resulting in a fuel compatible with diesel engines without the need for modifications. For instance, in August 2024, ExxonMobil Corporation, a U.S.-based natural gas company, introduced Esso Renewable Diesel R20, a green diesel product. This fuel was first made available at the Esso Tsing Yi South service station in Hong Kong and can also be delivered in bulk to commercial clients and select stations in Singapore. Esso Renewable Diesel R20 contains at least 20% renewable content, primarily sourced from waste oils such as used cooking oil, classifying it as a renewable fuel. This formulation is designed to reduce lifecycle greenhouse gas (GHG) emissions by approximately 15.4% compared to conventional diesel, considering emissions from production to usage.

In August 2024, Trafigura Group, a Singapore-based commodity company, acquired Greenergy International Ltd. from Brookfield Asset Management and Brookfield Business Partners for an undisclosed sum. This acquisition aims to bolster Trafigura's European fuel supply operations by leveraging Greenergy's position as a major biofuel supplier with manufacturing capabilities in the UK and Netherlands. This deal supports Trafigura's expansion into biofuels, aligning with the industry's shift toward sustainable energy and decarbonization. Greenergy International Ltd. is a UK-based company focused on producing green diesel, specifically biodiesel made from waste materials.

Major companies operating in the green diesel market are ExxonMobil Corporation, Shell Plc, BP Plc, TotalEnergies SE, Chevron Corporation, Marathon Petroleum Corporation, Valero Energy Corporation, Phillips 66 Company, Cargill Incorporated, Eni S.p.A., PBF Energy Inc., Honeywell International Inc., Neste Corporation, Darling Ingredients Inc., Aemetis Inc., Preem AB, UPM-Kymmene Oyj, Diamond Green Diesel, Gevo Inc., Green India Bio Diesel, Synopsis Chemitech, Plentifuel Industries Pvt. Ltd.

North America was the largest region in the green diesel market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the green diesel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the green diesel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Green diesel is a renewable fuel that closely resembles traditional diesel but is made from sustainable resources. It is generated through advanced techniques such as hydrotreatment, which significantly reduces greenhouse gas emissions and carbon footprints compared to standard diesel. By decreasing dependence on fossil fuels and lowering pollutants such as sulfur and particulates, it promotes sustainability and improves air quality and public health.

The primary varieties of green diesel include pure and blended forms. Pure green diesel, which is entirely derived from renewable sources, offers a cleaner option than conventional diesel, effectively cutting down greenhouse gas emissions without the need for fossil fuel blending. It is created using various technologies such as hydro-processing, catalytic upgrading, pyrolysis, biomass to liquid (BTL), and thermochemical processes (gasification), utilizing a range of raw materials such as vegetable oils and animal fats for diverse applications, including power generation and fuel.

The green diesel market research report is one of a series of new reports that provides green diesel market statistics, including green diesel industry global market size, regional shares, competitors with a green diesel market share, detailed green diesel market segments, market trends, and opportunities, and any further data you may need to thrive in the green diesel industry. This green diesel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The green diesel market consists of sales of algal diesel, fatty acid methyl esters, and Fischer-Tropsch diesel. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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