Biorefinery Market

Biorefinery Market Outlook (2023 to 2033)

The global biorefinery market is valued at US$ 143 billion in 2023 and is predicted to garner US$ 340 billion in revenue by 2033, expanding at a noteworthy CAGR of 9% from 2023 to 2033 (forecast period).

Biorefineries are facilities that convert biomass into power, heat, chemicals, fuels, and a variety of other valuable byproducts. Biorefineries are similar to traditional petroleum refineries, which produce a variety of fuels and other valuable products from crude oil feedstock.

A biorefinery uses a range of biomass, such as crops, wood, residues, weeds, sea, forest, algae, and organic detritus. For the conversion of biomass into usable products such as energy, chemicals, and materials, several processes such as fermentation, esterification, pyrolysis, gasification acid hydrolysis, and fractionation are used.

The depletion of fossil fuel reserves is a major concern worldwide. Though fossil fuels are derived from decomposing animals and plants, they are found in the earth's crust and include carbon and hydrogen that can be burned to generate energy.

Demand for fuels is constantly growing, which will directly impact the continuing rising cost due to the reduced availability of oil in the earth's crust. Increasing mining and extraction of large quantities of fossil fuels significantly affects fossil fuel depletion. Many governments are promoting the use of biofuel instead of fossil fuel due to rising demand and limited supply of crude oil.

The world is aiming to achieve net zero goals. Biorefinery products will benefit from increased demand for biofuel in the future years. The biorefinery is viewed as a financial tool for lowering carbon emissions by storing carbon for eventual use. Many countries have made significant investments in the biorefinery business, which will help them attain net-zero emissions in the future.

With an expanding global population, the need for energy is increasing dramatically. As a result, people have been forced to seek alternative energy sources. Biorefinery has emerged as a viable option for meeting energy demands while also ensuring long-term environmental sustainability.

Moreover, due to favorable government policies, higher renewable energy consumption, and lower solar panel and wind turbine price and installation costs, the sustainable energy business is expected to thrive.

• Around 558 terawatt-hours of bioenergy were produced globally in 2019; however, that amount increased by 53 terawatt-hours in 2020.

Report Attributes	Details
Market Size (2023)	US$ 143 Billion
Projected Market Value (2033)	US$ 340 Billion
Global Market Growth Rate (2023 to 2033)	9% CAGR
North America Market Share (2022)	38.3%
Industrial Biotechnology Segment Growth Rate (2023 to 2033)	8% CAGR
Key Companies Profiled	Archer-Daniels-Midland Company; Renewable Energy Group Dominion Energy; Koninklijke DSM N.V; Green Plains Inc; Neste Oyj

Why are Biorefineries Becoming Increasingly Prevalent across the World?

“Increasing Urbanization and Improving Living Standards”

Living in a metropolitan area is linked with better career and educational prospects, better health, easier access to social services, and more cultural and social opportunities. People go to cities and towns in search of a better standard of living. Increasing urbanization boosts energy consumption by moving production from less energy-intensive to more energy-intensive sources. With greater mobility and transportation, urbanization necessitates more energy, heightening the demand for sustainable energy.

Globally, urban regions housed 4.36 billion people in 2021. However, there will be 2.20 billion more people living in cities by 2050, raising the total number of people in cities.

As a result, with the increasing urbanization and improving living standards, the demand for sustainable energy sources will also grow, boosting the need for biorefineries.

Which Factor Can Hinder the Growth of the Biorefinery Industry?

“High Initial & Overall Costs Associated with Biorefineries”

The high initial investment is one of the major factors hindering the growth of the global market. The investment comprises installation, feedstock costs, implementation, testing, and maintenance.

“High Transportation Cost of Biomass”

The supply chain for biomass includes multiple critical processing phases, including collecting, storing, preprocessing, transportation (from the field to the biorefinery), and postprocessing at the biorefinery.

Transporting lignocellulosic biomass to biorefineries is problematic due to the unpredictability of the biomass's texture, low bulk density, seasonal availability, and vast distribution. The low density of biomass is known to occupy greater volume and require more carrier space, affecting transportation costs.

Country-wise Insights

Why is the United States Looking Strong in the North American Market?

North America is predicted to dominate the worldwide market for biorefinery products during the forecast period due to a rise in the number of biorefineries in the region as a result of ongoing biorefinery plant research & development and government subsidies. North America accounted for 38.3% of the global market in 2022.

The United States is spearheading the North American market. The National Renewable Energy Laboratory (NREL) of the United States is a pioneer in biorefinery research, making ground-breaking discoveries and inventions. Furthermore, many market players in the United States are trying to develop advanced biorefinery facilities.

• For instance, USA BioEnergy announced in February 2022 the construction of an advanced biorefinery that will transform 1 million green tons of wood waste into 34 million gallons of transportation fuel. This comprises sustainable aviation fuel (SAF), renewable diesel, and renewable naphtha created by Texas Renewable Fuels.

Which Countries are Leading the Growth of the European Market?

The European market is expected to experience considerable growth during the study period. Germany and the United Kingdom are major contributors to the European market.

Germany is the largest investor and user of biofuel and biorefinery-derived goods. Furthermore, Germany's current electricity demand is roughly 528.4 billion kilowatt hours (kWh); by 2030, that need could climb to 700 billion kWh (kWh). As a result, the need for clean energy is predicted to rise, fueling the growth of biorefineries.

The United Kingdom is transitioning from coal and oil-based energy use to renewable energy due to government backing. The country has imposed strict limitations on annual emissions levels in a variety of sectors, including construction and transportation.

How are South Korea and Japan Aiding Asia Pacific Market Progress?

The Asia Pacific market is expected to grow at a rapid pace due to a rise in pollution caused by the region's extensive use of fossil fuels, which has compelled governments in the region to look for other alternatives, such as biofuels, that are not detrimental to the environment.

South Korea and Japan are assisting the market expansion in Asia Pacific. Market players in these countries are focusing on collaboration, licensing agreements, and mergers and acquisitions to implement advanced technologies.

• For example, SK Innovation, which operates South Korea's biggest refinery as well as e-mobility battery, petrochemical, and information electronic materials businesses, has entered into an exclusive licensing agreement with Fulcrum to explore the possibility of bringing the patented waste-to-fuel process to South Korea.

Category-wise Insights

Why is Industrial Biotechnology Gaining Ground?

Demand for industrial biotechnology is estimated to swell at a CAGR of 8% during the forecast period. Industrial biotechnology encompasses both the manufacture of bio-based goods such as chemicals, plastics, and fuels from renewable feedstocks and the bioprocessing of standard industrial processes.

The ability of integrated biorefineries to generate a wide range of products and value streams enabled by industrial biotechnology has the potential to alter the economics of industrial production. Economic benefits, excellent performance, and environmentally benign products are the three main elements driving large-scale bio-based industrial products.

Moreover, thermochemical biorefineries are also gaining popularity. Thermochemical biorefineries transform biomass feedstock into pyrolysis oil or synthesis gas. The thermochemical conversion process is noted for its high level of complexity and employs specialized operating conditions, components, and configurations. The process converts biomass into syngas, which can then be transformed into an ethanol-rich blend.

Competitive Landscape

Key players in the biorefinery market are pursuing marketing methods such as partnerships, acquisitions, R&D activities, technological advancements, and investments to maintain and improve their market position. Moreover, several startups are working on technologically advanced solutions to gain footing in the worldwide market.

• PyroGenesys, a British startup, is working on integrated energy from waste technology. Pyrochemy, its pyrolysis technology, converts agricultural waste into electricity and biofuels using high heat. This minimizes agricultural greenhouse gas (GHG) emissions while also providing a solution for small-scale energy generation. The startup's solution is simple to use and offers off-grid energy to the Sub-Saharan region.
• NextFuel, a Swedish startup, offers biomass torrefaction technology. The startup's solution uses fast-growing, carbon-rich grass to make briquettes, which are a cleaner alternative to fossil fuels. Other biomass sources include bagasse, a byproduct of sugarcane juice production, and wood. The torrefaction method used by NextFuel includes built-in heat exchange, which enhances conversion efficiency and, consequently, scalability.
• Neste collaborated with TOOL-FUEL Services GmbH and EDi Energie-Direkt Hohenlohe GmbH to market Neste MY Renewable Diesel in Germany in October 2022, helping to reduce greenhouse gas emissions in the transportation sector. The selling of renewable fuels is governed by German law. 100% renewable diesel fuels, such as Neste MY Renewable Diesel, are already available for use in urban public transportation, waste collection for package and mail delivery services, and off-road applications such as trains, farming machinery, or equipment.
• Bunker Holding and Renewable Energy Group established a strategic alliance to increase biodiesel use in marine markets in the European Union and the United States in February 2022. Bunker Holding's physical bunker subsidiary, Bunker One, piloted the M/T Amak Swan on a test run with a B30 biofuel blend that includes second-generation bio feedstock. It enables enterprises to play an important role in transitioning the shipping industry to new, more eco-friendly energy sources.
• TotalEnergies and Veolia signed a collaboration agreement in February 2022 to create biomethane from Veolia water and waste treatment plants functioning in more than 15 countries. The collaboration was formed with the intention of generating up to 1.5 terawatt-hours (TWh) of biomethane per year by 2025.

Key Segments Covered in Biorefinery Industry Research

• By Technology:

  • Industrial Biotechnology
  • Physico-Chemical
  • Thermochemical

• By Region:

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA