Global Carbon-Neutral Fuels Market: Information by Feedstock (Carbon Dioxide, Hydrogen, Plant Starches, Animal Fats, Vegetable Oil and Others) Type (Hydrogen Cells, Biodiesel, Bioethanol, Biobutanol, Methanol, Algae and Others), Application (Automobiles, Ships, Aircrafts, Trucks, Trains, Turbines and Others) and Region (North America, Europe, Asia-Pacific, Latin America and Middle East & Africa) - Forecast till 2030

Market Overview

The bioethanol segment is expected to register a CAGR of over 5% to reach around USD 80 Billion by 2025.

Carbon-neutral synthetic fuels do not increase the volume of carbon oxide in the atmosphere when burnt. These fuels neither reduce nor release carbon dioxide emissions in the environment. Some of the commonly used carbon-neutral fuels include hydrogen cells, biodiesel, bioethanol, biobutanol, methanol, and algae. The players operating in the global carbon-neutral fuels market are emphasizing on making fuel by trapping the carbon dioxide present in the atmosphere and combining it with hydrogen.

The demand for carbon-neutral fuel cells has increased due to the adverse impact of carbon dioxide emissions such as global warming, ocean acidification, and carbon fertilization. The increasing emission of carbon dioxide gas in the atmosphere, mainly due to the burning of fossil fuels such as coal, petroleum, and natural gas is the prime factor driving the demand for carbon-neutral fuel worldwide.

Carbon-neutral alternative fuels find use in numerous applications including automobiles, ships, aircraft, trucks, trains, and turbines. The environmental regulations set by the European Commission and the US Environmental Protection Agency to reduce carbon emissions generated by the transportation sector is likely to drive the demand for carbon-neutral fuels. Additionally, according to OPEC, oil and gas collectively are expected to continue to cater to more than half of the global energy demand by 2040, which is also expected to contribute to the market growth at a substantial rate. The expanding automotive industry in developing countries with increasing production of lightweight and fuel-efficient vehicles is also supporting the market growth.

However, the high cost of carbon-neutral liquid fuels and growing preference for electric vehicles is likely to limit the market growth during the review period.

Global Carbon-Neutral Fuels Market Share, by Application, 2018 (%)  

Source: MRFR Analysis

Key Players

Carbon Engineering Ltd (Canada), POET, LLC (US), Cargill, Incorporated (US), Archer Daniels Midland Company (US), Koch Industries, Inc (US), The Andersons, Inc (US), Raízen (Brazil), Copersucar (Brazil), Abengoa (Spain), Wilmar International Limited (Singapore), Bunge North America, Inc (US), BIOX Corporation (Canada), and Renewable Energy Group, Inc (US).

Regional Analysis

The North America market accounted for the largest share of the global carbon-neutral fuels market in 2018 and is expected to register a significant CAGR by 2025. The growth is attributed to the expanding aerospace and defense industry in the US. In 2017, the US aerospace and defense industry generated around USD 865 billion from companies operating in the industry. Increasing regulations set by the US Environmental Protection Agency to reduce carbon emissions generated by the transportation sector is also supporting the market growth in the region.

The European market is also expected to witness healthy growth on account of increasing regulations to eliminate emissions from the marine and aviation industries. Marine transport emits around 940 million tons of carbon dioxide annually. Thus, the demand for carbon-neutral fuels is likely to increase at a significant rate with the growth of the major end-use industries in the region.

The market in Asia-Pacific was the fastest growing in 2018 owing to the growth of major end-use industries such as marine, automotive, and aerospace & defense. The expanding automotive industry with an increase in production of lightweight automobiles, particularly in India, South Korea, Thailand, and Malaysia is expected to play a vital role in the growth of the regional market. The increasing preference for hydrogen fuel cell in the transportation industry as it possesses higher energy density as compared to that of liquid hydrogen, primarily in Australia and China, is likely to drive the regional market growth.

The markets in Latin America and the Middle East & Africa are expected to witness healthy growth owing to increasing demand for carbon-neutral fuels to curb emissions from the transportation sector.

Segmentation

The global carbon-neutral fuels market has been segmented based on feedstock, type, application, and region.

The global market, by feedstock, has been divided into carbon dioxide, hydrogen, plant starches, animal fats, vegetable oil, and others.

The types of carbon-neutral fuels analyzed are hydrogen cell, biodiesel, bioethanol, biobutanol, methanol, algae, and others.

Based on application, the global market has been classified into automobiles, ships, aircraft, trucks, trains, power generation, chemicals, and others.

The global market, by region, has been categorized into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

Intended Audience

• Carbon-neutral fuels manufacturers


• Traders and distributors of carbon-neutral fuels


• Research and development institutes


• Potential investors


• Raw material suppliers


• Nationalized laboratories