Biodiesel Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Blend Type (B5, B20, B100, Others), By Source (Animal Fat, Vegetable Oil), By Application Type (Transportation Fuel, Heating Oil, Power Generation, Others), And By Geography - Forecasts From 2023 To 2028

Biodiesel is a locally manufactured, biodegradable fuel made from leftover restaurant grease, animal fats, and vegetable oils. The Renewable Fuel Standard's requirements for advanced biofuels and biomass-based diesel are both met by biodiesel. Diesel fuel can be replaced with domestically generated, clean-burning biodiesel. Usage of biodiesel as car fuel provides security and safeguard the environment.

Owing to its clean burning nature, the biodiesel is expected to form a renewable alternative for current diesel fuel. It is made out of feedstock, animal fats, and recycled cooking oils. The market is anticipated to expand as more conventional fossil fuels are replaced with biodiesel in the transportation and energy sectors.

According to EIA records it shows that in December 2020, producers sold 74 million gallons of pure B100 (100% biodiesel) and an additional 73 million gallons of biodiesel mixtures (containing both pure biodiesel and petroleum diesel fuel). Due to the numerous suppliers and dealers, the market is quite fragmented. This shows the biodiesel market is expected to rise due to many driving factors which are responsible for the growth of the Biodiesel market.

The increasing production of feedstock will grow the biodiesel market

The overwhelming portion of feedstock used to make biodiesel comes from vegetable oils such as rapeseed, soybean, and palm oils. As soybean oil is now the second-most popular feedstock utilized in the manufacturing of biodiesel after rapeseed oil is often used in the production of biodiesel in several European countries, whereas soybean oil is used in the United States and Argentina.

After being crushed, soy is utilized as a feedstock for biodiesel in this region and many other parts of the world. According to the Energy Information Administration (EIA), Soybean oil accounted up 360 million pounds of the 859 million pounds of feedstock used to produce biodiesel in March 2018. Canola oil and corn oil were the following two important feedstocks. In December 2020, feedstocks utilized to make biodiesel totaled 1,176 million pounds. With 744 million pounds used in biodiesel during December 2020, soybean oil continued to be the major feedstock.  The growing soyabean oil production is expected to positively impact the biodiesel market growth.

The Biodiesel market is driven by the increased demand for ecologically friendly fuel in transportation.

The use of biodiesel as a substitute for fossil fuels in the automotive and power-generating industries, as well as growing public awareness of environmental concerns such as greenhouse gas emissions, are driving growth in the global biodiesel business.

Fuels for transportation are used to power a variety of vehicles, including buses, trains, cars, and trucks. They are non-toxic and biodegradable, with a high energy density. They might also be moved quickly from one location to another. According to the Iowa Renewable Fuels Association, biodiesel reduces hydrocarbon emissions by up to 67% and particulate matter by 47%. Furthermore, as compared to petroleum fuel, the production of biodiesel reduces wastewater by 79% and hazardous waste by 96%.

According to EIA, it estimates that 3 billion gallons of biodiesel were used in the U.S. in 2019. Furthermore, 159 million gallons of biodiesel were produced in the United States in December 2020. The amount of biodiesel produced in December 2020 surpassed that of November 2020 by 8 million gallons. As it is seen one of the main factors propelling the market is the rising demand for ecologically friendly fuels that guarantee full combustion and can lower Greenhouse Gas (GHG) emissions. This shows the market opportunity for biodiesel is huge and will grow as people will shift to sustainable fuels rather than old highly dangerous fuels.

During the forecast period, Europe tends to grow in the biodiesel market

On the biodiesel market, Europe is anticipated to have consistent growth. The growing emphasis on the usage of bio-based sources as an alternative to carbon-emitting ones is acting as a major driving factor for biodiesels. Also, major feedstock-producing European nations such as Germany is focusing on boosting the production of popular feedstock such as rapeseed, palm, soybean, and sunflower oil which are the major source for biodiesel production.

In May 2021 a new biofuel law was introduced by the German government. According to the new rule, oil firms that are subject to it must dramatically boost the usage of biodiesel, bioethanol, and biomethane in the transportation sector to cut carbon emissions.

By 2030, According to European Union (EU), the region wants to increase the use of renewable energy in transportation by at least 14%, with advanced biofuels accounting for at least 3.5% of that total. The competitiveness of the bioethanol component has increased due to the rising price of gasoline, driving sales of both lower and higher mixes. This ensures that the biodiesel market is expected to rise with the huge demand for consumers and the government to adopt more renewable energy sources in this region.

Market Key Developments.

• In March 2022, Renewable Energy Company launched EnDura Fuels, a line of branded gasoline products. This branded product launch adds to Renewable Energy Group's ongoing efforts to help the transportation sector achieve sustainability and economic success. Endura Fuels' range includes five bio-based diesel fuels, including PuriD, next-generation biodiesel from Renewable Energy Group.
• In November 2021, Pure Fuel Energy said that it will open 1000 completely licensed biodiesel retailing fuel stations in India during the following year. Pure Fuel Energy collaborates closely with elected officials to help the Indian government achieve its aims of reducing the country's dependency on fuel imports and lowering its carbon imprint. Pure Fuel’s first move toward this aim will be to open biodiesel retail stores.

Segmentation

• By Blend type
  • B5
  • B20
  • B100
  • Others
• By Source
  • Animal Fat
  • Vegetable Oil
• By Application type
  • Transportation Fuel
  • Heating Oil
  • Power Generation
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    •  Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Suadi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others