Algae Biofuel Global Market Report 2024

The algae biofuel market size has grown strongly in recent years. It will grow from $7.84 billion in 2023 to $8.55 billion in 2024 at a compound annual growth rate (CAGR) of 9.1%. The expansion observed during the historical period can be attributed to several factors, including the heightened awareness of climate change, concerns regarding energy independence, fluctuations in global oil prices, growing interest from venture capitalists, and increased public consciousness surrounding environmental issues.

The algae biofuel market size is expected to see strong growth in the next few years. It will grow to $12.26 billion in 2028 at a compound annual growth rate (CAGR) of 9.4%. The projected growth in the forecast period can be linked to corporate sustainability initiatives, increasing demand for aviation and marine biofuels, investments in research and development, collaborations among biotechnology firms, and expected regulations favoring renewable fuels. Significant trends anticipated during this period encompass the establishment of commercial-scale production facilities, the integration of algae biofuel production within circular economy frameworks, heightened collaborations among biotechnology firms, the emergence of new startups and companies, and a growing demand for sustainable aviation fuels (SAF).

The increasing demand for renewable energy sources is poised to drive the expansion of the algae biofuel market in the coming years. Renewable energy encompasses clean energy derived from natural sources or processes that replenish themselves continuously. The rising demand for renewable energy sources stems from heightened awareness of climate change, decreasing costs associated with renewable energy technologies, and a growing societal endorsement of sustainable practices. Algae biofuel presents a sustainable substitute for fossil fuels by harnessing photosynthesis to convert CO2 into energy-dense compounds, potentially curbing greenhouse gas emissions and lessening dependence on finite resources. Its scalability, adaptability, and potential for carbon neutrality position it as a promising element within the renewable energy spectrum. For instance, in January 2024, according to Eurostat, the share of renewable energy in the EU's energy consumption rose to 23% in 2022 from 21.9% in 2021. Hence, the escalating demand for renewable energy sources propels the advancement of the algae biofuel market.

Prominent players in the algae biofuels market are concentrating on developing cutting-edge products, such as next-generation biofuels sourced from microalgae that sequester CO2, to gain a competitive advantage. Next-generation biofuels derived from microalgae present a promising avenue for sustainable energy generation. These microorganisms possess the unique ability to absorb CO2 during their growth phase, thereby mitigating greenhouse gas emissions. For instance, in July 2021, TotalEnergies SE and Veolia Environment S.A. embarked on a four-year research initiative to create microalgae-based biofuels with minimal carbon intensity. TotalEnergies will leverage its proficiency in biofuel production and carbon capture, while Veolia will contribute its expertise in water management to optimize the aquatic environment for microalgae cultivation. The project aims to expedite the development of microalgae cultivation utilizing CO2 at TotalEnergies' La Mède biorefinery.

In February 2022, Exxon Mobil Corporation forged a partnership with Viridos Inc. for algae biofuel research. The collaboration aims to advance sustainable algae biofuel technology toward commercial deployment, potentially enabling substantial reductions in greenhouse gas emissions within the heavy transportation sector. Viridos Inc. is a biotechnology firm based in the United States that specializes in developing renewable algae-based biofuels and transformative solutions.

Major companies operating in the algae biofuel market are Neste Inc, Alfa-Laval AB, Pond Technologies Inc., Intertek Group plc, EPCM Holdings, PetroTech Holdings Corp., Synthetic Genomics Inc., Joule Unlimited Inc., Reliance Life Sciences Pvt. Ltd., Algenol Biotech LLC, Heliae Development LLC, Solazyme Inc., Aurora Biofuels Inc., AlgaEnergy N.A. Inc., Sapphire Energy Inc., Algae Systems LLC, Inventure Renewables Inc., Genifuels Corporation, Culture BioSystems Inc., Solix Biofuels Inc., HutanBio Limited, GreenFuel Technologies Corporation, Cellana Inc., Manta Biofuel Inc.

North America was the largest region in the algae biofuel market in 2023. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the algae biofuel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the algae biofuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Algae biofuel denotes a renewable energy source derived from algae through processes encompassing cultivation, harvesting, and conversion. Algae possess the capacity to accumulate oils or lipids that can subsequently be extracted and refined into biofuels. This alternative energy source presents a viable substitute for traditional fossil fuels due to algae's rapid and prolific growth in diverse environmental conditions, offering a potential avenue for sustainable energy production while mitigating greenhouse gas emissions.

The primary categories of algae biofuel comprise bioethanol, methane, biodiesel, green diesel, jet fuel, biogasoline, biobutanol, and other variants. Bioethanol, a type of alcohol, is derived from cellulose-rich plants such as sugar cane, sugar beet, or certain grains like corn. Algae biofuel production involves harvesting and cultivation techniques and finds application across various sectors including aerospace, aviation, transportation, and others.

The algae biofuel market research report is one of a series of new reports that provides algae biofuel market statistics, including algae biofuel industry global market size, regional shares, competitors with a algae biofuel market share, detailed algae biofuel market segments, market trends and opportunities, and any further data you may need to thrive in the algae biofuel industry. This algae biofuel 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 algae biofuel market consists of sales of liquid biofuels, solid biofuels, and chemical feedstocks. 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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