Published by maria gbaf
Posted on November 18, 2021
5 min readLast updated: January 28, 2026
The global liquid biofuels market is expanding as the transport sector seeks renewable energy solutions to reduce carbon emissions.
The global market for liquid biofuels has received a great impetus as the natural reserves of fossil fuels deplete, creating pressure on deriving alternatives. Biofuel, available in solid, liquid, and gaseous forms, is gaining momentum as governments across the globe put in efforts to reduce carbon emissions. The demand for liquid biofuel is also expected to escalate as countries try to build an energy-secure future. These plant-derived fuels are gaining traction as players remain focused on building a circular economy. According to Fairfield Market Research, with zero-emission target for 2050, the global demand for liquid biofuels is expected to give the market a much-needed boost throughout the forecast period of 2021 and 2025.
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Supportive Regulatory Framework to Promote Use of Liquid Biofuels to Reverse Climate Change
The global liquid biofuels market has garnered notable support from the governments to make an impact on national levels. For instance, despite COVID-19 setbacks, Germany’s Climate Protection Quota continues to insist on achieving its carbon intensity target for 2020. This is expected to boost the uptake of biodiesel in transport. Similarly, Renewable Energy Directive (RED) application to EU member states has a target of using at least 10% renewable energy for transport. The market will also receive an impetus from blending mandates as set by developed economies. Tax exemptions and investment support will also form a supportive structure in promoting the use of liquid biofuels in the coming years.
Biodiesel and Bioethanol to Dominate Global Market
The upcoming report anticipates that biodiesel and bioethanol will dominate the global liquid biofuels market. According to a 2014 United Nations Conference on Trade and Development, tax exemptions on fuel blended with bioethanol in the U.S. and mandatory use blending of bioethanol in gasoline such as in Malaysia are likely to keep these segments bullish in the coming years. Furthermore, readily available feedstocks for the production of biodiesel and bioethanol in the majority of the countries are also projected to keep the sentiment of these segments upbeat.
Transportation Segment to Emerge as Key End User of Liquid Biofuels
The transportation segment is anticipated to be the leading end user of liquid biofuels such as biodiesel as reducing the dependence on fossil fuels becomes imperative. By the end of 2030, the use of liquid biofuels in the transportation segment is expected to triple as trade, e-commerce, and globalization rely on it for expansion. Biofuels demanded in transport are natural gas, biogas, hydrogen, and biodiesel, which are derived via biochemical or thermochemical processes. Investments in developing technology to derive liquid biofuels in an efficient manner will support the segment in the coming years.
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North America Sets an Example for Other Regions to Follow
In terms of geography, North America is expected to lead the global liquid biofuels market. Abundance of feedstock due to large plantations of the corn crop is expected to give the regional liquid biofuels market a boost in the coming years. Despite the pandemic, the U.S. continues to lead North America as the Renewable Fuel Reimbursement Programme served to cushion to the blow. Additionally, Canada’s contribution to the region will also add to its growth. The report states that the Canadian Government intends to reduce greenhouse gas emissions by 30Mt by 2030 in a bid to reduce total emissions by 30%. Such a strong stance is expected to bode well for the market in the coming years.
Global Liquid Biofuels Market: Key Players
According to the global liquid biofuels market research report, the key players operating in the market are Cargill, Incorporated, Sapphire Energy, Praj Industries, Australian Renewable Fuels Limited, Cosan Limited, Alto Ingredients, Inc., Coskata, Inc., Archer Daniels Midland Company (ADM), Gevo, Inc., Renewable Energy Corp, RB Fuels, Green Plains, Valero Energy Corp., Wilmar International, Petrobras, Algenol, and Butamax.
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The article discusses the growth of the global liquid biofuels market, particularly driven by the transport sector's demand for renewable energy.
Governments are implementing supportive regulatory frameworks, including tax exemptions and blending mandates, to promote biofuel use.
North America leads due to abundant feedstock and supportive government policies, particularly in the U.S. and Canada.
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