Advanced Biofuels Market Report 2026

The advanced biofuels market size has grown exponentially in recent years. It will grow from $163.89 billion in 2025 to $229.97 billion in 2026 at a compound annual growth rate (CAGR) of 40.3%. The growth in the historic period can be attributed to biofuel blending mandates, fossil fuel price volatility, climate policy initiatives, agricultural residue availability, early biofuel investments.

The advanced biofuels market size is expected to see exponential growth in the next few years. It will grow to $923.84 billion in 2030 at a compound annual growth rate (CAGR) of 41.6%. The growth in the forecast period can be attributed to net zero commitments, airline decarbonization targets, advanced refinery investments, carbon credit markets, demand for low-carbon fuels. Major trends in the forecast period include non-food feedstock utilization, scaling of sustainable aviation fuels, second-generation biofuel commercialization, advanced conversion technologies, carbon intensity reduction strategies.

The growing aerospace industry is expected to drive the growth of the advanced biofuels market in the coming years. The aerospace sector encompasses the design and manufacturing of aircraft, satellite launches, and space exploration. Its growth is fueled by increasing global air travel demand and expanding space initiatives. The advanced biofuels market supports this industry by reducing greenhouse gas emissions, enhancing operational sustainability, and helping companies meet environmental regulations and decarbonization targets. For example, in June 2023, the International Air Transport Association (IATA) reported that the global airline net profit was expected to reach $9.8 billion in 2023, up from $4.7 billion in 2022, with approximately 4.35 billion passengers projected to travel that year. Consequently, the growing aerospace industry is expected to drive the expansion of the advanced biofuels market.

Prominent enterprises operating within the advanced biofuels sector are concentrating on pioneering technological advancements, notably sustainable aviation fuel (SAF) process technology, to secure a competitive advantage. Sustainable Aviation Fuel (SAF) technology encompasses various methods and processes for creating alternative jet fuel from renewable, non-petroleum sources. For instance, in September 2023, Lummus Technology LLC, a US-based entity specializing in proprietary petrochemicals, refining, and gasification technologies, introduced Ethanol-based SAF Technology. This cutting-edge technology provides a secure and scalable means of producing SAF utilizing ethanol, a renewable and widely available resource. The adoption of SAF holds the promise of substantial reductions in greenhouse gas emissions, potentially reaching up to 80%, contingent upon the specific ethanol source and production process.

In August 2025, Licella Holdings Limited, an Australia-based provider of advanced bioenergy and biorefining technologies focused on converting biomass into renewable fuels and chemicals, acquired Arbios Biotech for an undisclosed amount. Through this acquisition, Licella aimed to accelerate the global commercialization of its proprietary hydrothermal liquefaction (HTL) technology by fully integrating Arbios’ operational capabilities and strengthening its position in the renewable fuels and sustainable chemicals market. Arbios Biotech is a Canada-based company specializing in biomass conversion and biorefinery solutions, producing low-carbon fuels and biochemicals from renewable feedstocks.

Major companies operating in the advanced biofuels market are Abengoa Bioenergy Co. LLC, Algenol Biofuels Inc., Chemtex Group, Bangchak Corporation Public Company Limited (BCP), Clariant Produkte GmbH, Fiberight LLC, DuPont Industrial Biosciences, GranBio Investimentos S.A., A2BE Carbon Capture LLC, Fujian Zhongde Energy Co. Ltd., Inbicon A/S, INEOS Technologies Limited, Poet-DSM Advanced Biofuel LLC, Green Biologics Ltd., ZeaChem Inc., Sundrop Fuels Inc., Amyris Inc., Gevo Inc., Renewable Energy Group Inc., Novozymes A/S, LanzaTech Inc., Mascoma Corporation, Solazyme Inc., Cool Planet Energy Systems, Enerkem Inc., Butamax Advanced Biofuels LLC, Codexis Inc., Coskata Inc., Aemetis Inc., Iogen Corporation, Siluria Technologies, Kiverdi Inc., Alkol Biotech Inc.

North America was the largest region in the advanced biofuels market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global advanced biofuels market report during the forecast period. The regions covered in the advanced biofuels market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the advanced biofuels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The advanced biofuels market consists of sales of corn stover, switchgrass, or methane. 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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