Global Co-refining Market to Reach US$ 73.0 Bn by 2034, Growing at a CAGR of 6.0% from 2024 to 2034

The global co-refining market was valued at US$ 39.7 billion in 2023 and is projected to grow at a CAGR of 6.0% from 2024 to 2034, reaching approximately US$ 73.0 billion by the end of 2034. This growth is driven by the increasing transition toward a low-carbon economy and the rise in the adoption of biofuels.

Analyst Viewpoint

The transition toward a low-carbon economy is significantly boosting co-refining market revenue. Countries and companies are striving to limit global warming to 1.5° C and achieve net zero greenhouse gas (GHG) emissions by adopting low-carbon technologies that produce less pollution compared to traditional energy sources.

Additionally, the growing adoption of advanced biofuels, which serve as alternatives to fossil fuels, is propelling market growth. Advanced biofuels are particularly effective in reducing the carbon footprint of challenging-to-decarbonize transport sectors.

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Key Developments in the Market

Woody Fast Pyrolysis Bio-oils: Key players are focusing on the co-processing of these bio-oils in fluid catalytic cracking.
Integration of Advanced Processes: Existing refineries are integrating advanced processes to exploit the potential of biofuels.
Market Introduction

Co-refining, or co-processing, is a strategy employed in the oil & gas sector to produce a variety of fuels by processing different feedstocks such as animal fats, used cooking oils, vegetable oils, biomass, waste plastics, or bio-based materials alongside crude oil in a refinery. This method is used to manufacture transportation fuels and petrochemical feedstocks.

Types of Joint Refining Processes

Hydroprocessing: Ideal for upgrading bio-crude oil into transportation fuels.
Catalytic Cracking: Commonly used to increase aviation fuel production.
Fluid Catalytic Cracking (FCC): Converts high-boiling hydrocarbon fractions of petroleum crude oils into valuable products like gasoline and olefinic gases.
Catalytic Hydrotreating: Removes contaminants from feedstreams or product streams.
Hydrocracking: Reduces average molecular weight and produces higher fuel yields.
Market Drivers

Transition Toward a Low-carbon Economy

The transition toward a low-carbon economy is driving demand in the co-refining market. With 825 operational crude oil refineries worldwide as of 2023, the rising adoption of electric vehicles (EVs) is expected to peak oil demand before 2030. Refineries are shifting towards renewable hydrogen, sustainable biofuels, and Carbon Capture and Storage (CCS)/Carbon Capture and Utilization (CCU) to support this transition.

Notable Initiatives

European Commission: Awarded nearly €720 million to seven renewable hydrogen projects in Europe (May 2024).
U.S. Department of Energy (DOE): Launched an initiative to accelerate the development of the hydrogen sector, with seven projects receiving US$ 7 billion to establish regional "hydrogen hubs".
Increase in Adoption of Biofuels

The existing infrastructure of petroleum refineries makes co-refining of biomass-derived feedstocks with petroleum fractions an attractive option for producing biofuels. Biofuels play a crucial role in reducing greenhouse gas emissions and enhancing energy security.

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Investment Trends

The International Energy Agency (IEA) reports a rapid increase in biofuel investments, with capacity additions reaching a decade-high of around 260 kb/d in 2022.

Regional Outlook

Leading Region: Europe

Europe held the largest market share in 2023, driven by the need for rapid scale-up of biofuel production to meet climate mitigation targets in the transport sector. The EU-27's biofuel supply in 2020 was around 16 million tons of Oil Equivalent (Mtoe), accounting for 6.3% of total transport fuel consumption in the EU.

Investment in CCS

In 2023, SINTEF launched the Horizon Europe project COREu, the largest Research and Innovation project in CCS ever funded by a European program.

Analysis of Key Players

Key players in the global co-refining market are focusing on the co-processing of Sustainable Aviation Fuel (SAF) due to rising demand. Companies are utilizing existing infrastructure to adopt renewable feedstocks for SAF production.

Notable Companies

Bharat Petroleum Corporation Limited
China National Petroleum Corporation
ExxonMobil Corporation
Saudi Arabian Oil Co.
Valero Energy Corporation
Marathon Petroleum Corporation
ROSNEFT
Petroleos de Venezuela S.A.
Recent Developments

Meridian Energy Group Inc.: Announced a facility in North Dakota capable of co-processing up to 4,000 barrels/day of vegetable oil (April 2024).
Saudi Aramco Total Energies Refinery & Petrochemicals Co. (Satorp): Completed the production of sustainable aviation fuel (SAF) from the co-processing of used cooking oil (UCO) at its 460,000 barrels/day refinery complex in Jubail, Saudi Arabia (2023).
Co-refining Market Snapshot

Market Size in 2023: US$ 39.7 billion
Market Forecast (Value) in 2034: US$ 73.0 billion
Growth Rate (CAGR): 6.0%
Forecast Period: 2024-2034
Historical Data Available for: 2020-2022
Quantitative Units: US$ billion for value and kilo tons for volume
Market Analysis: Includes segment analysis, regional level analysis, qualitative analysis (drivers, restraints, opportunities, key trends, Porter's Five Forces Analysis, value chain analysis), and key trend analysis.
Competition Landscape: Market share analysis by company (2023); company profiles include overview, product portfolio, sales footprint, key subsidiaries or distributors, strategy and recent developments, and key financials.
Format: Electronic (PDF) + Excel
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Market Segmentation

By Feedstock Type

Crude Oil Co-refining
Biomass Co-refining
Waste Plastic Co-refining
Renewable Feedstock Co-refining
By Processes

Hydroprocessing
Catalytic Cracking
Fluid Catalytic Cracking (FCC)
Hydrotreating
Hydrocracking
Others
By Product

Fame Biodiesel
Bioethanol
Hydrogenated Vegetable Oil (HVO)
Others
Regions Covered

North America
Europe
Asia Pacific
Latin America
Middle East & Africa
Countries Covered

U.S.
Canada
Germany
U.K.
France
Italy
Russia & CIS
Japan
China
India
ASEAN
Brazil
Mexico
South Africa
GCC
Companies Profiled

Bharat Petroleum Corporation Limited
China National Petroleum Corporation
ExxonMobil Corporation
Saudi Arabian Oil Co.
Valero Energy Corporation
Marathon Petroleum Corporation
ROSNEFT
Petroleos de Venezuela S.A.
Conclusion

The global co-refining market is poised for significant growth over the next decade, driven by the transition to a low-carbon economy and the increasing adoption of biofuels. Key players are actively investing in advanced co-processing technologies and enhancing their existing infrastructures to meet the rising demand for sustainable fuels. Europe is expected to lead the market, supported by robust investments in biofuel production and carbon capture initiatives. As the industry evolves, continuous innovations and strategic collaborations will be critical in achieving the ambitious climate targets and ensuring a sustainable energy future.

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