Next Generation Biofuels Market Size
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%
Next-generation biofuels, also known as advanced, second, and third-generation biofuels, are an essential advancement in Biochemical Process technologies that solve the inherent limits of first-generation biofuels. Unlike first-generation biofuels, which are primarily derived from food crops such as corn and sugarcane, next-generation biofuels are made from non-food biomass sources such as agricultural and forestry waste and residues, dedicated energy crops, and, in some cases, algae and municipal solid waste. This feedstock development addresses issues connected to food security and land use competition with earlier biofuel production methods. These advanced biofuels are being developed for the transportation industry to replace or supplement fossil-based fuels in passenger cars, trucks, planes, and ships.
For example, bio-jet fuel generated from algae or waste oils is being researched. It is gradually becoming more widely used in Jatropha & Camelina airplanes to reduce flying carbon footprints. Cellulosic ethanol and other advanced biofuels are being blended into gasoline or used directly in flex-fuel vehicles to replace petroleum-based fuels in the transportation sector. Next-generation biofuels have the potential to contribute to rural development and energy security in less developed countries. The military is interested in these fuels for strategic reasons besides cost reduction, as research advances, new options emerge, such as employing the same biofuel production techniques for carbon collection and usage, resulting in carbon-negative energy combinations.