Carbon Neutral Fuels Market Summary
As per MRFR Analysis, the Global Carbon-neutral Fuels Market was valued at USD 78.975 billion in 2022 and is projected to grow from USD 81.596 billion in 2023 to USD 139.976 billion by 2030, with a CAGR of 7.42% during the forecast period. The market is driven by rising government initiatives for bioethanol and increasing demand in the aviation sector. Carbon-neutral fuels, which do not add to atmospheric carbon dioxide levels, are gaining traction as alternatives to conventional fuels. The market is segmented by feedstock, type, and application, with plant starches and bioethanol expected to dominate revenue generation. North America accounted for a significant revenue share in 2022, supported by government policies aimed at reducing emissions and promoting renewable energy.
Key Market Trends & Highlights
Key trends influencing the Carbon-neutral Fuels Market include government initiatives and technological advancements.
- Government initiatives like the EU's BEST program aim to promote bioethanol as a vehicle fuel.
- The Pradhan Mantri JI-VAN Yojana in India supports integrated bioethanol projects.
- Bioethanol is projected to dominate the market due to its use as a gasoline substitute in automobiles.
- North America leads the market, driven by policies targeting net-zero emissions by 2050.
Market Size & Forecast
2022 Market Size: USD 78.975 Billion
2023 Market Size: USD 81.596 Billion
2030 Market Size: USD 139.976 Billion
CAGR: 7.42% (2023-2030)
Largest Regional Market Share in 2022: North America.
Major Players
Key players include Carbon Engineering Ltd, Mitsui Kinzoku, Umcor, Nanoshell LLC, American Element, Pometon Powder, and POET, LLC.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Carbon-neutral fuels Market Trends
RISING GOVERNMENT INITIATIVES FOR BIOETHANOL
Many reasons, including increasing urbanization, rising energy consumption, and rising environmental concerns, are anticipated to fuel a rise in the global usage of bioethanol. In addition, bioethanol is expected to become more widespread as a transportation fuel over a variety of geographic areas due to its lower carbon footprint than conventional fuels and government assistance on both a policy and a tariff level. The sector is expected to grow significantly as a result of a number of regulations, including the Clean Air Act and those aimed at reducing greenhouse gas emissions.
The European Union started the Bioethanol for Sustainable Transportation (BEST) program, which comprises six nations, to develop bioethanol automobiles. The European Union provided financial support for the four-year Bioethanol for Sustainable Transport (BEST) project, which promoted the introduction and market penetration of bioethanol as a vehicle fuel as well as the introduction and increased use of flexible-fuel vehicles and ethanol-powered vehicles on the global market. The BEST plan will show how extensively bioethanol may replace gasoline and diesel. Moreover, the initiative will prepare the path for a commercial breakthrough for ethanol-fueled automobiles by launching a long-term and accelerated development of bioethanol fuel throughout Europe.
The government has introduced the "Pradhan Mantri JI-VAN Yojana" to aid in funding integrated bio-ethanol projects that employ lignocellulosic biomass and other renewable feedstocks, according to the Ministry of Petroleum and Natural Gas, this scheme will provide financial support to twelve integrated bioethanol plants using lignocellulosic biomass and other renewable feedstocks, as well as assistance to ten 2G technology demonstration projects. Such government activities are expected to boost the industry's demand for bioethanol, which will drive the market for carbon-neutral fuel.
Carbon-neutral Fuels Market Segment Insights
Carbon-neutral fuels by Feedstock Insights
The Carbon-neutral fuels Market segmentation, based on feedstock has been segmented as Carbon Dioxide, Hydrogen, Plant Starches, Animal Fats, Vegetable Oil, and Others. Among these, the Plant Starches is projected to dominate the Carbon-neutral fuels Market revenue through the projected period. As the demand for sustainable energy sources rises, scientists are turning to biomass as an alternative energy source. ethanol can be made by fermenting starch plants. It is possible to extract ethanol and use it as an alternate fuel. Ethanol burns with a lot of energy, which may be utilised to run vehicles and create electricity. Due to their large yields of carbohydrates and superior cultivation efficiency compared to most crops, starch crops have been suggested as the ideal biofuel feedstock that might help overcome the commercial biofuel production's arable land limits. Because starch plants may be harvested to make ethanol, the supply of ethanol remains constant throughout the plant's life cycle. In the absence of oxygen, starches undergo natural biochemical fermentation, which results in the production of ethanol as a by-product. Grains like corn or wheat as well as tubers like (sweet) potatoes and cassava are examples of feedstocks that are based on starch. These feedstocks include lengthy, intricate sugar molecule chains. It is simple to transform the starch into fermentable sugars. After that, the sugar can be transformed into ethanol or drop-in fuels. Advanced carbon neutral fuels can be made from the fibrous parts of plants, such as wheat straw or maize stover.
Carbon-neutral fuels by Type Insights
The Carbon-neutral fuels Market segmentation, based on Type has been segmented as Hydrogen Cells, Biodiesel, Bioethanol, Biobutanol, Methanol, Algae, and Others. Among these, the Bioethanol type is projected to dominate the Carbon-neutral fuels Market revenue through the projected period. Bioethanol is the main fuel utilized as a substitute for gasoline in road transportation vehicles. Although it can also be made chemically by reacting ethylene with steam, the fermentation of sugar is the major procedure used to make bioethanol fuel. The majority of the sugar needed to make ethanol comes from crops used to make fuel or electricity. These crops, which include corn, maize, and wheat, waste straw, willow and common trees, sawdust, reed canary grass, cord grasses, Jerusalem artichoke, myscanthus, and sorghum plants, are planted expressly for energy usage. Moreover, efforts are being made to create ethanol fuel from municipal solid wastes.
Carbon-neutral fuels by Application Insights
Based on Application, the Carbon-neutral fuels Market is segmented as Automobiles, Ships, Aircrafts, Trains, Power Generation, Chemicals, and Others. Out of which the Automobiles segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well.
Despite being around longer than cars, biofuels have long been considered an outlier due to the low cost of gasoline and diesel. The hunt for clean, renewable fuels has taken on increased importance as a result of rising oil prices and current international attempts to avert the worst effects of climate change. Vehicles that run on regular diesel and biodiesel are identical. Although technically not alternative fuel vehicles, light, medium, and heavy-duty diesel vehicles can almost all run on biodiesel blends. B20, which contains 6% to 20% biodiesel when combined with petroleum diesel, is the most used biodiesel mixture among carbon neutral fuels. But, fleet vehicles also frequently use B5, a biodiesel blend of 5% biodiesel and 95% diesel. Several diesel vehicles can be utilized with B20 and lower-level blends without modifying the engine.
Carbon-neutral fuels Regional Insights
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study segments the Carbon-neutral fuels market into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The North America market accounted for a comparatively significant revenue share in 2022. This is due to the quick uptake of carbon pricing, rising popularity of sustainability and renewable energy, and tightening regulations for effective waste management. The federal government of Canada has established a goal of achieving net-zero carbon emissions by the year 2050 and is trying to enhance the use of renewable energy sources like wind and solar power while also moving away from fossil fuels. The administration in the United States has pledged to reduce emissions by 40%–50% below 2005 levels by 2030, which includes making investments in renewable energy sources, establishing a clean electricity standard, and raising fuel efficiency standards.
Carbon-neutral fuels Key Market Players & Competitive Insights
The Carbon-neutral fuels Market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain maximum market share. Rapid advancements in processes, manufacturing and the growing application of Carbon-neutral fuels in end-use industries are the key factors that affect global market growth. The vendors compete based on cost, product quality, availability, and reliability of the products. The vendors must provide cost-effective and high-quality Carbon-neutral fuels to compete in the market. The competitive scenario is fragmented between tier-1 and tier-2 companies.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Mitsui Kinzoku, Umcor, Nanoshell LLC, American Element and Pometon Powder are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They consider product development as their key strategy in the Carbon-neutral fuels Market.
Additionally, the companies are following both organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development and expansion to expand their product portfolio and enhance their customer relationship. Additionally, companies are also investing in the development of new and advanced systems with more safety measurements.
Carbon Engineering Ltd: Carbon Engineering was established with the specific goal of creating and commercializing a technology that can pull megatons of CO2 out of the atmosphere. The company is built on the idea that Direct Air Capture facilities could play a significant role in the global effort to achieve net zero emissions and restore acceptable CO2 levels in the atmosphere.
POET, LLC: The goal of POET is to live in a balanced natural environment. where people make advantage of the Earth's great capacity for regeneration rather than stealing from it. where people no longer rely on fossil fuels and instead depend on the might of nature and the brilliance of the human spirit. Farmers are the creators and inventors are the heroes in this world. The goal of the company is to effectively use human resources to transform renewable resources into electricity and other useful things..
Key Companies in the Carbon-neutral fuels Market includes.
Carbon-neutral fuels Industry Developments
January 2023: ADM introduces new crop biostimulant to boost nutrient use efficiency and yields: ADM announced the introduction of its new agricultural biostimulant that boosts corn yields by improving nutrient use efficiency..
December 2022, ADM recognized as a “Diversity Leader 2023” by the Financial Times: ADM was named a Diversity Leader in this year’s Financial Times ranking of 850 European companies on diversity and inclusion. ADM placed 15th overall and 2nd in the food and beverages sector for the 2023 study.
February 2023: Raízen connects new renewable energy plant in Vazante and increases its capacity in Minas Gerais: Raízen, an integrated energy company and a global reference in bioenergy, announces that it will increase 72.3% of its renewable capacity in Minas Gerais by April 2023.
Carbon-neutral fuels Market Segmentation
Carbon-neutral fuels Feedstock Outlook
Carbon-neutral fuels Type Outlook
Carbon-neutral fuels Application Outlook
Carbon-neutral fuels Regional Outlook
-
Middle East & Africa
- Rest of Middle East & Africa
| Report Attribute/Metric |
Details |
| Market Size |
2030: USD 139,975.8 Million |
| CAGR |
7.42%(2022-2030) |
| Base Year |
2021 |
| Forecast Period |
2022 to 2030 |
| Historical Data |
2019 & 2020 |
| Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
By Feedstock, Type, Application and Region |
| Geographies Covered |
North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors |
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). |
| Key Market Opportunities |
The increasing emission of carbon dioxide gas in the atmosphere, mainly due to the burning of fossil fuels such as coal, petroleum |
| Key Market Drivers |
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. |
Carbon Neutral Fuels Market Highlights:
Frequently Asked Questions (FAQ) :
Carbon Neutral Fuels Market size was USD 78,975.4 million in 2022
The market is projected to grow at a CAGR of 7.42% during the forecast period, 2023-2030
North America had the largest share in the market
Carbon Engineering Ltd, Mitsui Kinzoku, Umcor, Nanoshell LLC, American Element, Pometon Powder, ADM, POET, LLC, and others.
