Renewable Diesel

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

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[191 Pages Report] 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 Market
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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 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

    Renewable diesel production relies on fresh vegetable oils and waste oils as feedstock. Fresh vegetable oils, sourced from soybean, rapeseed, palm, and sunflower crops, are favored for their low carbon intensity, availability, and scalability. Government incentives supporting eco-friendly alternatives have also increased the demand for fresh vegetable oil-based fuels. Waste oils, including used cooking oil (UCO), animal fats, and greases that have reached the end of their useful life cycle as food products, provide a sustainable alternative fuel source with a smaller carbon footprint than conventional diesel. Regulatory bodies such as the European Commission recognize the importance of waste oils under the Renewable Energy Directive II (RED II), further bolstering their role in achieving sustainability goals.

  • Technology: Hydrotreating, gasification, and pyrolysis are exponential used method in producing renewable diesel

    Renewable diesel production technologies have gained significant traction in recent years due to their potential to mitigate greenhouse gas emissions and promote sustainable development. Biomass-to-Liquid (BTL), hydrotreating, and pyrolysis-based Rapid Thermal Processing (RTP) are significant methods. BTL technology converts a wide range of biomass feedstocks into liquid biofuels through thermochemical or biochemical processes, such as gasification and fermentation. Hydrotreating is a well-established refining method that employs hydrogen and catalysts to remove impurities from petroleum-derived feedstocks. This process can also transform vegetable oils, animal fats, and other lipids into high-quality renewable diesel with low sulfur content and excellent combustion properties. Pyrolysis-based RTP involves the thermal decomposition of biomass feedstock at high temperatures and short residence times to produce bio-oil, syngas, and char. Bio-oil can be further upgraded Ito renewable diesel via hydrotreating or other refining techniques. Moreover, hydrotreating enables drop-in fuel production using existing infrastructure, providing a cost-effective approach to renewable diesel generation. While pyrolysis-RTP can efficiently handle challenging feedstocks and generate valuable co-products, it may face obstacles in bio-oil upgrading and commercial scalability.

  • End-User: Renewable diesel is a source of clean energy source for mining, oil & gas operations

    The renewable diesel market caters to various industrial and transportation end-user segments, each driven by the need for sustainable energy, reduced greenhouse gas emissions, and compliance with regulatory standards. Industrial sectors such as power generation, heating & cooling, and manufacturing are increasingly adopting renewable diesel as a cleaner alternative to traditional fossil fuels. In the transportation segment, road transport dominates renewable diesel demand due to urbanization growth and heavy-duty vehicle fleet expansions. Aviation and rail transport providers have also turned towards customized renewable diesel blends. Moreover, both industrial and transportation segments are actively adopting renewable diesel due to its environmental benefits and regulatory compliance requirements.

Market Disruption Analysis

The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Renewable Diesel Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Renewable Diesel Market.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Renewable Diesel Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

Value Chain & Critical Path Analysis

The value chain of the Renewable Diesel Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

Pricing Analysis

The pricing analysis comprehensively evaluates how a product or service is priced within the Renewable Diesel Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Renewable Diesel Market.

Technology Analysis

The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Renewable Diesel Market.

Patent Analysis

The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Renewable Diesel Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.

Trade Analysis

The trade analysis of the Renewable Diesel Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.

Regulatory Framework Analysis

The regulatory framework analysis for the Renewable Diesel Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

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. [Published On: 2023-09-25]

  • 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. [Published On: 2023-08-25]

  • 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. [Published On: 2023-07-31]

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.

Renewable Diesel Market - Global Forecast 2024-2030
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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

This research report offers invaluable insights into various crucial aspects of the Renewable Diesel Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Renewable Diesel Market, by Feedstock Type
  7. Renewable Diesel Market, by Technology
  8. Renewable Diesel Market, by End-User
  9. Americas Renewable Diesel Market
  10. Asia-Pacific Renewable Diesel Market
  11. Europe, Middle East & Africa Renewable Diesel Market
  12. Competitive Landscape
  13. Competitive Portfolio
  14. List of Figures [Total: 22]
  15. List of Tables [Total: 466]
  16. List of Companies Mentioned [Total: 38]
How Government Initiatives are Accelerating the Use and Development of Renewable Diesel
July 9, 2023
BLOG
How Government Initiatives are Accelerating the Use and Development of Renewable Diesel
With the global call for sustainable energy sources, various renewable sources have emerged as alternatives to traditional fossil fuels. Diesel, a common fuel source for transportation, has been revamped by producing renewable diesel. This new source of diesel is environmentally friendly and cost-effective. Government initiatives play an essential role in promoting the use and development of renewable diesel. This blog post examines how government initiatives are accelerating the use and development of renewable diesel.

Renewable Fuel Standard (RFS):

The Renewable Fuel Standard (RFS) program is a federal program within the Environmental Protection Agency (EPA) that aims to increase the amount of renewable fuels used in the transportation sector. The program sets standards for the amount of renewable fuel that fuel producers must blend into the nation's transportation fuel supply. By increasing the amount of renewable diesel produced, RFS helps reduce greenhouse gas emissions, increase energy security and independence, and reduce air pollution.

Low Carbon Fuel Standard (LCFS):

The Low Carbon Fuel Standard (LCFS) is a program implemented by California to promote the use of cleaner, low-carbon alternative fuels. It limits the amount of greenhouse gas emissions produced by transportation fuels. Renewable diesel producers can generate credits by creating fuels that reduce emissions beyond what the LCFS requires. These credits can then be sold to other fuel producers not meeting the LCFS requirements.

Energy Policy Act of 2005:

The Energy Policy Act of 2005 is a federal policy aimed at increasing the use of renewable fuels in the United States. The act promotes the use of renewable diesel and provides incentives for producing and using these fuels. It also supports the research and development of new fuels and technologies. One of the incentives provided in the Energy Policy Act of 2005 is a tax credit for producing renewable diesel.

State and Local Initiatives:

Several states and local governments have implemented their initiatives to promote the use of renewable diesel. For example, the Oregon Clean Fuels Program, British Columbia's Renewable and Low Carbon Fuel Requirements Regulation, and New York's Clean Heat Program aim to reduce harmful emissions the transportation sector produces. These programs promote the use of alternative fuels, including renewable diesel.

Corporate Social Responsibility (CSR):

Corporate Social Responsibility (CSR) is becoming crucial as companies and individuals seek to reduce their environmental impact. Using renewable diesel effectively allows companies to reduce their carbon footprint and stay committed to sustainability. Companies such as UPS, Chevron, and Shell have invested in renewable diesel and worked to incorporate it into their operations.

Renewable diesel is a clean, cost-effective alternative to traditional fossil fuels. Government initiatives play a vital role in promoting the use and development of renewable diesel. The Renewable Fuel Standard, the Low Carbon Fuel Standard, the Energy Policy Act of 2005, state and local initiatives, and corporate social responsibility have all contributed to the increase in the production and use of renewable diesel. The efforts of these initiatives have helped reduce greenhouse gas emissions, increase energy security and independence, and reduce air pollution. As more and more people and companies seek sustainable energy sources, renewable diesel use is expected to continue to grow.

Frequently Asked Questions
  1. How big is the Renewable Diesel Market?
    Ans. The Global Renewable Diesel Market size was estimated at USD 40.41 billion in 2023 and expected to reach USD 46.78 billion in 2024.
  2. What is the Renewable Diesel Market growth?
    Ans. The Global Renewable Diesel Market to grow USD 115.53 billion by 2030, at a CAGR of 16.18%
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