Renewable Diesel Market by Feedstock Type (Fresh Vegetable Oils, Waste Oils), Technology (Biomass-to-Liquid, Hydrotreating, Pyrolysis-Rapid Thermal), End-User - Global Forecast 2024-2030

Renewable Diesel Market by Feedstock Type (Fresh Vegetable Oils, Waste Oils), Technology (Biomass-to-Liquid, Hydrotreating, Pyrolysis-Rapid Thermal), End-User - Global Forecast 2024-2030

The Renewable Diesel Market size was estimated at USD 40.41 billion in 2023 and expected to reach USD 46.78 billion in 2024, at a CAGR 16.18% to reach USD 115.53 billion by 2030.

Renewable diesel is majorly made from fats and vegetable oils and is processed to be chemically similar to petroleum diesel. It is produced most often by hydrotreating and also via gasification, pyrolysis, and other biochemical and thermochemical technologies. Renewable diesel’s high use in buses, waste transport, and emergency response vehicles is expanding its making. In the past few years, there has been several government initiatives to accelerate the use and development of renewable fuels. Advanced quality and performance tracking certifications and standards have been established to ensure their safety. However, increasing cost of organic feedstocks and lubricity limitations of renewable diesel fuels impede their extensive use. Advancements in the production and sourcing technologies of renewable diesel curb this limitation. End-users and market players have been involved in strategic collaboration activities to expand their deployment across industry activities.

Regional Insights

The policy environment for renewable diesel has led to a cascade of new projects, including new standalone facilities, conversions of pre-existing refinery units, and co-processing with fossil fuels at refineries in the Americas. The United States supports renewable diesel supply via the national level Renewable Fuel Standard, a biomass-based diesel blenders tax credit, and state-level policies such as the Oregon Clean Fuels Program and California Low Carbon Fuel Standard. Countries in Southeast Asia have been pressing the use of renewable diesel (RD) as an alternative to petroleum diesel. Currently, the major RD produced and consumed in Southeast Asia is biodiesel (BD), produced from edible oils. The European region also observes high production of renewable diesel with the rise of significant market players and the automotive industry’s shift to sustainable fuel usage.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Renewable Diesel Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Government initiatives to accelerate the use and development of renewable fuels
Exponential use in buses, waste transport and emergency response vehicles
Improved renewable diesel quality and performance tracking certifications and standards

Market Restraints

Fluctuating cost of organic feedstocks used to make renewable diesel

Market Opportunities

Technological advancements in the production and sources of renewable diesel
Strategic collaboration activities between end-users and market players

Market Challenges

Lubricity limitations of renewable diesel fuels

Market Segmentation Analysis

Feedstock Type: Companies can lower their carbon footprint while also saving energy and reducing costs by producing diesel from waste oil
Technology: Hydrotreating, gasification, and pyrolysis are exponential used method in producing renewable diesel
End-User: Renewable diesel is a source of clean energy source for mining, oil & gas operations

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Renewable Diesel Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Renewable Diesel Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Mitsui to Invest in Renewable Diesel and SAF Production Business in Portugal

Mitsui & Co., Ltd. has made an investment in a renewable diesel as hydrotreated vegetable oil/HVO and sustainable aviation fuel (SAF) production venture owned by Galp SGPS S.A. This venture involves the construction of facilities within the Sines Refinery in Portugal, with the aim of commencing operational activities in 2026. The production facilities will focus on the production of HVO and SAF, which are environmentally friendly fuels with lower greenhouse gas emissions. This investment positions Mitsui as a key player in the renewable energy sector, promoting sustainable and environmentally friendly fuel solutions.

Cummins Announces Approval of Unblended Renewable Diesel Use in All Industrial High-Horsepower Engines

Cummins Inc. granted approval for the use of unblended paraffinic fuels namely, EN15940, including hydrotreated vegetable oil, in all of their high horsepower engine ratings across a wide range of industrial applications. This approval comes with the significant advantage of not requiring any modifications to the engines. By utilizing renewable diesels such as HVO, it is possible to achieve a reduction in net greenhouse gas emissions of up to 90% compared to conventional diesel.

Art Launches Catalyst System To Produce Renewable Diesel, SAF From 100% Renewable Sources

Advanced Refining Technologies LLC, a joint venture between Chevron and W.R. Grace & Co., has introduced ENDEAVORTM, a hydroprocessing catalyst solution designed for the production of renewable diesel and sustainable aviation fuel. This innovative catalyst system, composed of Chevron's EnRich guard and hydrotreating catalysts, along with EnHanceTM isomerization catalysts, has been specifically developed to process renewable feeds, such as vegetable oils, refined oils, animal fats, and greases. This product launch aligns with the growing demand for renewable transportation fuels and plays a crucial role in the decarbonization of heavy-duty transportation.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Renewable Diesel Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Renewable Diesel Market, highlighting leading vendors and their innovative profiles. These include Aemetis, Inc., Ag Processing Inc, Agilent Technologies, Inc., AMERICAN GREENFUELS, LLC, Calumet Specialty Products Partners, L.P., Cargill, Incorporated, Chevron Corporation, Diamond Green Diesel, Elite Natural Oils & Fuels Pvt. Ltd., Emami Agrotech Limited (EAL), Eni S.p.A., Erigo Bio Fuels P Ltd., Euglena Co., Ltd., Exxon Mobil Corporation, Geekay Fuels, Gevo, Inc., Global Clean Energy Holdings, Inc., HF Sinclair Corporation, Kern Energy, Louis Dreyfus Company, Marathon Petroleum Corporation, Metrohm AG, Milton Roy by Ingersoll Rand Inc., Muenzer Bharat Private Limited, Neste Corporation, NSR Industries, Olleco by ABP Food Group, Pan Oleo Energy Limited, PBF Energy Inc., Phillips 66 Company, RB Fuels, Revo International Inc., Shell PLC, The Archer-Daniels-Midland Company, The Ashcourt Group, Valero Energy Corporation, Veoli Environnement S A, and VERBIO Vereinigte BioEnergie AG.

Market Segmentation & Coverage

This research report categorizes the Renewable Diesel Market to forecast the revenues and analyze trends in each of the following sub-markets:

Feedstock Type
Fresh Vegetable Oils
Canola Oil
Corn Oil
Palm Oil
Soybean Oil
Sunflower Oil
Waste Oils
Fish Oil
Tallow
Used Cooking Oil
Technology
Biomass-to-Liquid
Hydrotreating
Pyrolysis-Rapid Thermal
End-User
Industrial
Transportation
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year