Government incentives, advanced feedstock technologies and decarbonization mandates are catalyzing growth in the U.S. biofuels market. Renewable Fuel Standard revisions and low-carbon fuel policies continue to drive investment in next-generation bioethanol and biodiesel capacity. Technological innovation in enzymatic hydrolysis and carbon capture integration also underpins ongoing expansion. Increasing consumer and industrial demand for low-carbon solutions has further amplified market growth momentum.
The U.S. Biofuels Market Forecast indicates strong momentum across multiple feedstock categories, including starch-based, sugar-based, and waste-based inputs. Starch-based bioethanol dominated the market in 2024, generating approximately USD 21.5 billion in revenue. This growth was largely driven by Archer Daniels Midland’s capacity expansion at its Columbus, NE facility.
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