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By supporting renewable energy adoption, biofuels play a crucial role in decarbonizing the transportation sector and providing greener alternatives for heating and electricity generation.
Biofuels primarily refer to liquid fuels and blending agents derived from biomass feedstocks. However, the term also extends to methane sourced from landfill gas, biogas, and hydrogen generated through renewable resources. While biofuels are predominantly utilised in the transport sector, they also serve as alternatives for heating and power generation. Fuels produced from biomass often align with government initiatives designed to promote or mandate the adoption of renewable energy solutions.
Biofuels are mainly used as blends with refined petroleum products like petrol, diesel, heating oil, and jet fuel. However, certain biofuels, such as drop-in biofuels, can be used directly without blending with petroleum counterparts.
The U.S. Energy Information Administration (EIA) tracks four key categories of biofuels under the federal Renewable Fuel Standard (RFS) Program:
As awareness of global warming and sustainable living grows, biofuels have emerged as a vital alternative to traditional fossil fuels. Derived from renewable plant and crop sources, biofuels like biodiesel and ethanol are transforming transportation and energy practices.
In 2023, United States biofuel production capacity surged by 7%. This growth was primarily driven by a remarkable increase in renewable diesel and other biofuels, including renewable heating oil, sustainable aviation fuel, and renewable naphtha and gasoline.
Iowa leads U.S. biofuels production with a capacity exceeding 5.4 billion gallons per year. Fourteen states, primarily in the Midwest, Gulf Coast, and West Coast regions, collectively account for 90% of the nation’s biofuels production capacity.
Figure 1: U.S. Biofuels Production by Major Type (Billion Gallons); 2018-2022
Figure 2: U.S. Biofuels Consumption by Major Type (Billion Gallons); 2018-2022
Canada remains the top destination for U.S. renewable fuel exports, accounting for over half of all ethanol and bio-based diesel exports, valued at USD 2.8 billion in 2022. Canadian imports of U.S. ethanol surged by 40% year-on-year to 1.76 billion litres, with the value rising 53% to USD 1.3 billion. This growth was fuelled by higher blending levels, particularly in Ontario, which led the country in ethanol-blended petrol consumption. This shift reflects North America’s commitment to transitioning towards cleaner energy sources. State and federal tax incentives, supportive regulatory frameworks, ongoing plant expansions, and upcoming construction projects are all accelerating the region's adoption of biofuels. As investment and innovation in the sector grow, North America is set to solidify its position as a leader in sustainable fuel production.
North America's commitment to biofuels underscores the region's determination to achieve zero-carbon emission targets and lead the global energy transition. With robust government support, technological advancements, and increased production capacity, biofuels are transforming the energy landscape, particularly in transportation. Policies such as the USDA Biorefinery Assistance Programme, the Inflation Reduction Act, and Canada’s Clean Fuel Regulation are driving innovation, fostering economic growth, and enhancing energy independence.
As renewable energy continues to gain momentum, biofuels serve as a critical bridge to a sustainable future, offering cleaner alternatives that reduce greenhouse gas emissions, improve public health, and support rural economies. By leveraging biofuels and other renewable energy solutions, North America is paving the way for a cleaner, more resilient, and sustainable energy ecosystem.
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124