Next-Generation Biofuels Market Size to Grow at CAGR of 24.5%

According to the research report, the global next-generation biofuels market size was valued at USD 14.8 Billion in 2024 and is expected to reach USD 109.3 Billion by 2034, growing at a CAGR of 24.5%.

Second-generation biofuels, alternatively next-generation biofuels, are advanced biofuels developed by transforming non-food-based biomass sources such as municipal solid wastes, solid wastes from crops and forests, algae, specialized energy crops, and other types of agricultural and forestry waste. These biofuels aim at even higher environmental benefits than conventional biofuels by drastically reducing greenhouse gas emissions, improving energy yields, and further optimizing the quality of fuel.

Ongoing research and developments are supported by the leveraging improvement in conversion technologies, which is expected to bring costs down. Still, issues that have to be addressed are policy support, large-scale production capability, and technological advancement.

The next-generation biofuels market is highly competitive, innovative in terms of technology, and growing exponentially. Companies engaged in this particular market are diversifying their service offerings to remain in the competition, moving towards sustainability, and expanding their geographical presence.

Some of the Key Market Players:

• Solazyme
• POET-DSM
• Chemtex Group
• Sundrop Fuels Inc.
• Enerkem
• Algenol Biofuels
• Abengoa S.A.
• Gevo
• Joule Unlimited, Inc.
• GranBio
• ExxonMobil Corporation
• Shell PLC
• Chevron Corporation
• Valero Energy Corporation
• ADM (Archer Daniels Midland Company)
• Cargill

Recent Advancements

• In May 2024, India to get next-generation nuclear fuel, says Russian Nuclear Agency chief; calls nation a key partner. Russian state nuclear corporation-Rosatom head Alexey Likhachev praised India as a key partner and announced that India will receive next-generation nuclear fuel this summer. He also hosted Atomic Energy Commission chairman Ajit Kumar Mohanty in Siberia's Tomsk region, showing him the fourth-generation site for the safest atomic reactor in history.

Next-generation biofuels will help diminish greenhouse gas emissions and thus be a part of the struggle against climate change, without dependence on fossil fuels. The aviation industry and heavy transport are among those sectors reducing their carbon impact through a sustainable substitute. Urbanization and expanding worldwide population act as the main driving factors of growing interest in clean and dependable power generation. Compared to fossil fuels, most biofuels have a lower carbon footprint. Next-generation biofuels are supported in their development and consumption by policies around the world aimed at low-carbon growth, given that transport and aviation are large contributors to emissions. Hence, this trend enhances the benefits associated with the substitution of use between biofuels and fossil fuels.

Therefore, researchers are interested in this non-edible liquid fuel of biodiesel as it would bring a radical change in the industry and transport sector. The clean fuel is cleaner than conventional diesel fuel. Produced through anaerobic digestion, biogas runs biobuses and provides energy. Because it has a higher octane rating and blend ratios, biobutanol is replacing gasoline. Their aviation equivalent is the bio jet fuels, which are still under study and may totally revolutionize transport and the industry. In order to reduce the energy consumption for the manufacturing of biofuels, researchers are trying to optimize reaction conditions and use renewable energy sources. Lignocellulose is a plant fiber that is one of the most important sources of next-generation biofuels. Non-food crops, mainly cultivated for biofuels, like jatropha and camelina, enable sustainable production with small amounts of water and land use.

The United States will most likely maintain its leading position in the use of biofuels due to its better-developed infrastructure and strong government support. However, there are concerns over feedstock availability and competition for arable lands for food production. Huge agricultural resources, coupled with a focused approach towards bioinnovation, make Canada one of the major players as well. Europe is prosecuting development of next-generation biofuels to assure sustainability, as required by the European Union Renewable Energy Directive. Strict regulations and expensive production costs could stand in the way.