U.S. Biodiesel Industry Report 2024: Analysis and Forecast 2023-2032

The “United States Biodiesel Market Report by Application, Feedstock, States, and Company Analysis 2024-2032” has been added to ResearchAndMarkets.com’s offerings. The U.S. biodiesel market is projected to reach $66.65 billion by 2032, up from $39.27 billion in 2023, with a CAGR of 6.05% from 2024 to 2032.

Biodiesel, produced from plant-based oils or animal fats, is a highly demanded renewable fuel in the U.S. Vegetable oils are a primary feedstock for biodiesel production. Biodiesel can be used in diesel engines in pure or blended forms. The government is encouraging biodiesel adoption to reduce carbon dioxide, greenhouse gas emissions, and particulate pollution.

The U.S. biofuels industry is experiencing a boom, with a surge in production driven by increased demand for renewable diesel and sustainable aviation fuels (SAFs). Rystad Energy research predicts a 53% increase in U.S. biofuel production by the mid-2030s, from 850,000 barrels per day in 2023 to about 1.3 million barrels in 2035, with domestic output expected to exceed 1 million barrels per day by 2026.

The demand for renewable fuel in the U.S. is rising. Biodiesel manufacturers are expanding production by opening new facilities and upgrading existing plants. Strategic investments are introducing new players, underscoring biodiesel’s role as a sustainable alternative fuel. This expansion not only meets industry demands but also creates job opportunities and enhances energy security. Federal and state governments play a crucial role in fostering favorable policies to increase biodiesel production and consumption.

Strategic investments and collaborations are further propelling the U.S. biodiesel market. Stakeholders, including manufacturers, tech companies, and major oil corporations, are heavily investing in biodiesel production facilities. Significant investment in research and development is enhancing efficiencies and the environmental viability of biodiesel. These collective efforts will continue to boost the U.S. biodiesel market.

Growing awareness of the impact of greenhouse gases on climate change is increasing interest in biodiesel, which emits significantly less carbon compared to fossil fuels. Biodiesel, derived from agricultural feedstock, also provides an alternative income source for farmers. Reduced emissions from biodiesel combustion offer health benefits, such as lower rates of cardiovascular and respiratory diseases associated with air pollution.

The report provides a comprehensive analysis of the market based on application, including power generation and fuel. The fuel segment holds the largest market share. In the U.S., there is growing demand for biodiesel in power generation and as a green, viable alternative to conventional fossil fuels.

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