Green Diesel Market

Growing Prevalence of Biofuels in energy consumption

With increasing urbanization and rapid industrialization there is a significant increase in demand for energy. According to the U. S. Energy Information Association, global energy usage is projected to increase by nearly 50% by the year 2050. While with growing environmental awareness among individuals and the government authorities’ various initiatives and measures are being undertaken to support growth in a sustainable manner.

Green diesel, one of the alternative energy products, is a second generation of biofuel, with the market expansion of biofuels the green diesel market is also expected to trend during the forecast period. According to Net Zero Emissions by 2050 Scenario biofuels are expected to make up to 64% of the transport sectors’ renewable energy consumption.

The biofuel consumption is expected to triple between 2019 to 2030 to 12 EJ in the 2050 scenario. According to Statista, the global biofuel market was valued at about 110 billion USD in 2021, and with growing global demand the market is forecast to reach up to 201 billion USD by 2030. Hence with the growing biofuel market and increasing use of biofuels for renewable energy consumption, the global market for green diesel is expected to boom during the forecast period.

As a result, the growing prevalence of biofuels in energy consumption is likely to fuel the expansion of the Green Diesel market revenue.

The Global Green Diesel Market Industry is poised for substantial growth, with projections indicating a market valuation of 34.1 USD Billion in 2024 and an anticipated increase to 127.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 12.73% from 2025 to 2035, reflecting the increasing adoption of renewable fuels across various sectors. The market's expansion is driven by a combination of factors, including rising demand for sustainable energy solutions, technological advancements, and supportive government policies. As the industry evolves, it is likely to attract further investments and innovations, solidifying its role in the global energy landscape.

Increasing environmental concerns regarding air quality and climate change are pivotal drivers of the Global Green Diesel Market Industry. As urban populations grow, so do the levels of vehicular emissions, prompting governments and organizations to seek cleaner alternatives. Green diesel, derived from renewable sources, offers a lower carbon footprint compared to conventional diesel. This shift towards sustainable transportation fuels aligns with global efforts to reduce greenhouse gas emissions. Consequently, the market is expected to gain traction as consumers and businesses prioritize environmentally friendly options, further solidifying green diesel's position in the energy landscape.

The Global Green Diesel Market Industry experiences a notable surge in demand for renewable fuels as countries strive to meet stringent environmental regulations and climate goals. This shift is driven by the increasing awareness of the adverse effects of fossil fuels on climate change. For instance, the European Union has set ambitious targets for reducing greenhouse gas emissions, which has led to a growing preference for green diesel over traditional diesel. This trend is expected to contribute to the market's growth, with projections indicating that the industry could reach a valuation of 34.1 USD Billion in 2024.

Government incentives and supportive policies play a crucial role in shaping the Global Green Diesel Market Industry. Many countries are implementing tax credits, subsidies, and mandates to promote the use of renewable fuels. For example, the Renewable Fuel Standard in the United States mandates a specific volume of renewable fuel to be blended into transportation fuel. Such policies not only encourage the production and consumption of green diesel but also provide a stable market environment for investors. This supportive regulatory framework is likely to drive the market's expansion, contributing to its projected growth to 127.6 USD Billion by 2035.

The expansion of infrastructure for biofuels is a significant factor influencing the Global Green Diesel Market Industry. As the demand for green diesel rises, investments in production facilities, distribution networks, and refueling stations are becoming increasingly essential. Countries are recognizing the need for a robust infrastructure to support the growth of renewable fuels. For instance, the establishment of dedicated biofuel blending terminals and distribution channels enhances the accessibility of green diesel to consumers. This infrastructure development is likely to facilitate market penetration and adoption, thereby contributing to the overall growth of the green diesel sector.

Technological innovations in the production of green diesel significantly influence the Global Green Diesel Market Industry. Advanced processes such as hydrotreatment and transesterification enhance the efficiency and yield of biofuel production. These technologies allow for the conversion of various feedstocks, including waste oils and fats, into high-quality green diesel. As production methods become more efficient, the cost of green diesel is likely to decrease, making it a more attractive option for consumers and businesses alike. This could further stimulate market growth, with expectations of a compound annual growth rate of 12.73% from 2025 to 2035.

Major market players are spending a lot of money on R&D to increase their product lines, which will help Green Diesel grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Green Diesel Industry are expanding their market presence globally as the market is expected to boom in the future.

One of the primary business strategies adopted by manufacturers in the global Green Diesel Industry to benefit clients and expand the Green Diesel Market sector is to manufacture locally to reduce operating costs.

Neste Oyj (Finland) is an oil refining and marketing company. Neste Oyj is one of the largest producers of green diesel (renewable Diesel) and jet fuel in the world. The company makes use of waste, residues, and innovative raw materials to produce various oil products using its proprietary NEXBTL technology, a platform that allows us to turn a wide variety of renewable fats and oils into premium-quality renewable products, such as fuels and feedstock for polymers and chemicals production. Neste MY Renewable Diesel™ can be used as a drop-in solution to replace fossil diesel, as their chemical compositions are similar.

Neste manufactures its high-quality products in Finland, the Netherlands, and Singapore.

Shell is a global group of energy and petrochemical companies. Shell Refiners can process 100% bio-feeds into profitable green diesel (renewable diesel) and sustainable aviation fuel with our hydrotreated vegetable oil (HVO) technology.  Shell has introduced renewable diesel in several areas, including Europe and the US.

Vegetable oils and used cooking fats are only two of the many feedstocks the company uses to make renewable diesel (green diesel). The low-carbon renewable diesel (green diesel) offered by Shell emits fewer greenhouse gases than conventional diesel made from petroleum. The development and use of renewable energies are part of Shell’s commitment to investing in green energy and lowering its carbon impact.