United States Biodiesel Market Research Report 2025-2033: EPA and DOE Push Biodiesel and SAF as Key Drivers in America's Clean Energy Future

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May 19, 2025

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(Research and Markets/Globe Newswire) In the United States, biodiesel is also extensively applied in transportation, agriculture, and the industrial sector. It fuels trucks, buses, and marine vessels, lowering greenhouse gas emissions as well as fossil fuel dependence. The agricultural industry is also helped by biodiesel through powering farm machinery, while fleets of government and the commercial sector use it to achieve sustainability targets. Biodiesel is also employed in home heating systems (bioheat) and as a substitute fuel in power production. With renewable energy policies and federal incentives encouraging its use, biodiesel remains a key player in the clean energy revolution in the U.S.

- The "United States Biodiesel Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033" report has been added to ResearchAndMarkets.com's offering.

The United States biodiesel market is expected to expand at a large scale, reaching US$ 20.29 billion in 2033 from US$ 12.23 billion in 2024, with a CAGR of 5.79% from 2025 to 2033. This expansion is based on growing demand for renewable energy, government incentives for biofuels, and a move towards sustainable fuel options. Growing environmental issues and technology advancements also help drive market growth.

Government Policies and Renewable Fuel Standards (RFS)

The U.S. government is a major driver of biodiesel market growth through policies such as the Renewable Fuel Standard (RFS). This law requires refiners of fuel to mix a portion of renewable fuels, such as biodiesel, into their fuel supply. Federal and state incentives, such as tax credits and grants, also promote the use of biodiesel. Initiatives like the Biodiesel Tax Credit (BTC) make biodiesel more cost-effective, further increasing consumption and production.

These regulations, which are designed to cut carbon emissions and enhance energy independence, are major forces driving the growing demand for biodiesel in the United States. Dec 2023, The EPA must establish volume requirements for the Renewable Fuel Standard (RFS) for 2023-2025 under the Clean Air Act, including cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. This move entails a second addendum standard covering the judicial remand of the 2016 rulemaking and a number of regulatory adjustments to enhance the RFS program, especially in relation to biogas. The EPA is not finalizing provisions for the production of RINs from renewable electricity at this moment.

Increasing Demand for Low-Carbon and Sustainable Fuels

With growing concerns about climate change and carbon emissions, industries and consumers alike in the U.S. are making a turn towards cleaner energy options. Biodiesel, which has a huge emissions reduction advantage over petroleum diesel, is becoming increasingly popular in the transportation, agricultural, and industrial markets. Corporations and governmental fleets are increasingly using biodiesel to achieve sustainability objectives. Moreover, countries with aggressive emissions cut-off targets like California and Washington are promoting biodiesel consumption, fueling business growth.

The increasing demand for green fuels makes biodiesel a leading contender for shifting to sustainable energy. The U.S. Department of Energy (DOE) has published its "Pathways to Commercial Liftoff" report, where it emphasized the capability of sustainable aviation fuel (SAF) to greatly reduce the carbon footprint of the aviation industry. The report examines the preparedness of different SAF production technologies and provides recommendations for public and private sectors to make the U.S. a leader in SAF production by 2030.

Technological Advancements in Biodiesel Production

Ongoing technological advancements in biodiesel production are increasing efficiency and reducing costs, driving market growth in the U.S. Improved processing technologies, including transesterification and hydrotreated vegetable oil (HVO) technology, enhance biodiesel yield and quality. Scientists also seek to develop alternative feedstocks such as algae-based and waste-derived biodiesel to further increase production capacity.

Enhanced refining processes make biodiesel more compatible with conventional diesel engines, leading to greater adoption by industries. With advancing technology and declining production costs, biodiesel grows into a competitive and potential substitute for conventional fossil fuels, boosting its market share. In 2023, Be8 moved into the US market and made investments in technology for biofuel production and a cereal-based ethanol venture. The firm wants to create a global tech company with a specialization in renewable energies.

Challenges in the United States Biodiesel Market

Feedstock Price Volatility

Production costs for biodiesel are greatly affected by feedstock prices, such as vegetable oils and animal fats. Price volatilities in soybean, canola, and other crops contribute to the cost of biodiesel, making it less competitive with traditional diesel when feedstock prices increase. Furthermore, supply chain disruptions in the global supply base, severe weather, and changes in agricultural policies also contribute to feedstock price volatility. This is a real challenge for biodiesel manufacturers since it influences production volume and profitability.

Competition from Other Renewable Fuels

Though biodiesel is the prime alternative fuel, other renewable energy options like renewable diesel, electric vehicles (EVs), and hydrogen fuel cells are increasingly posing competition to it. Renewable diesel, especially, has seen increased usage because it is chemically similar to petroleum diesel and can be integrated into existing infrastructure without any hassles or modifications. Government incentives for EV use and better battery technologies also pose a threat to biodiesel consumption in the long term. In order to sustain market share, the biodiesel sector needs to keep innovating and resolve issues of cost, efficiency, and scalability.

Company Analysis: Overview, Recent Development, Revenue

Archer Daniels Midland Company
FutureFuel
Neste's
Renewable Energy Group, Inc.
Bunge Global SA
Wilmar
Shell

Key Attributes:

Report Attribute	Details
No. of Pages	200
Forecast Period	2024 - 2033
Estimated Market Value (USD) in 2024	$12.23 Billion
Forecasted Market Value (USD) by 2033	$20.29 Billion
Compound Annual Growth Rate	5.7%
Regions Covered	United States

Key Topics Covered:

1. Introduction

2. Research Methodology

3. Executive Summary

4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges

5. United States Biodiesel Market

6. Market Share
6.1 Application
6.2 Feedstock
6.3 States

7. Application- United States Biodiesel Market
7.1 Fuel
7.2 Power Generation
7.3 Others

8. Feedstock- United States Biodiesel Market
8.1 Vegetable Oil
8.2 Animal Fats

9. States
9.1 California
9.2 Texas
9.3 New York
9.4 Florida
9.5 Illinois
9.6 Pennsylvania
9.7 Ohio
9.8 Georgia
9.9 New Jersey
9.10 Washington
9.11 North Carolina
9.12 Massachusetts
9.13 Virginia
9.14 Michigan
9.15 Maryland
9.16 Colorado
9.17 Tennessee
9.18 Indiana
9.19 Arizona
9.20 Minnesota
9.21 Wisconsin
9.22 Missouri
9.23 Connecticut
9.24 South Carolina
9.25 Oregon
9.26 Louisiana
9.27 Alabama
9.28 Kentucky
9.29 Rest of United States

10. Porter's Five Analysis
10.1 Bargaining Power of Buyers
10.2 Bargaining Power of Suppliers
10.3 Degree of Rivalry
10.4 Threat of New Entrants
10.5 Threat of Substitutes

11. SWOT Analysis
11.1 Strength
11.2 Weakness
11.3 Opportunity
11.4 Threat

12. Company Analysis
12.1 Overview
12.2 Recent Development
12.3 Revenue

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