Bio Fuels Industry Sector 2025: Projects, Demand and Supply, Forecast to GCC and MENA

global Bio Fuels market was US$ 153.88 billion in 2024 and is expected to reach US$ 252.19 billion in 2032, growing at a CAGR of 6.4% during the forecast period (2025-2032).

Indonesia will roll out its B40 biodiesel program in 2025, targeting a 40% palm oil and 60% diesel blend, backed by 15.62 million kiloliters of allocated supply, with consumer distribution starting January 1, 2025.

Rising investments in R&D and bio-refineries are boosting scalability. In April 2025, the UK government announced US$270.36 million (£200 million) in funding for projects at the Grangemouth refinery in Scotland.

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Key Players:

POET, Valero Energy, Chevron, Neste, ADM

GCC - Latest M&A / Strategic Deals

✅ The Arab Energy Fund completed its first direct investment in a biofuel feedstocks platform in September 2025, creating a regional vehicle to scale SAF and renewable diesel supply chains.​

✅ MENA Biofuels signed a strategic offtake MoU with Emarat at ADIPEC 2025 to secure domestic SAF distribution across the UAE and GCC aviation market, effectively locking in long-term demand and logistics cooperation rather than a full buyout.​

GCC - Demand and Supply

✅ Lootah Biofuels, the first commercial biofuel producer in the Middle East, is rapidly expanding production and distribution of UCO-based biodiesel and new marine and aviation biofuels to meet rising GCC demand for low‐carbon transport fuels.​

✅ GCC algae biofuel prospects market is projected to grow from about USD 140.6 million in 2025 to roughly USD 213.4 million by 2030 (CAGR 8.7%), reflecting regional interest in non‐food, high-yield feedstocks suited to arid climates.​

GCC - New Projects

✅ MENA Biofuels is developing the UAE's first commercial Sustainable Aviation Fuel (SAF) plant in Fujairah with a two‐phase investment of USD 300 million and EPCC tenders rolling out through 2026, positioning the UAE as a SAF hub for GCC and international airlines.​

✅ Lootah Biofuels launched Sustainable Bio Yacht Fuel (SBYF) for luxury yachts and showcased plans for a local SAF production plant in the UAE, aiming to expand biofuel solutions across marine and aviation segments.

Growth Forecast Projection:

The Global Biofuel Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Research Process:

Both primary and secondary data sources have been used in the global Biofuel Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

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Key Segmentation:

By Form: (Solid Biofuel, Liquid Biofuel, Gaseous Biofuel)

By Generation: (First Generation, Second Generation, Third Generation)

By Product: (Biodiesel, Ethanol, HVO, Others)

By Feedstock: (Corn, Sugarcane, Vegetables Oils, Other)

By Application: (Transportation, Aviation, Energy Generation, Heating, Others)

Regional Analysis for Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

MENA (Middle East & North Africa) - Latest M&A / Strategic Deals

✦ The Arab Energy Fund's biofuel feedstock platform investment is structured to support future bolt‐on acquisitions and JVs across MENA for used cooking oil (UCO) and waste‐lipid aggregation for SAF and renewable diesel.​

✦ Regional M&A advisors highlight biofuels, particularly SAF and feedstock logistics platforms, as an emerging theme within the 649 MENA deals worth USD 69.1 billion recorded in the first nine months of 2025, though individual targets are often undisclosed.​

MENA - Demand and Supply

✦ Fitch Solutions notes MENA is pivoting toward SAF hubs (especially UAE and potentially Saudi) but will depend heavily on imported UCO and other waste lipids due to limited domestic feedstock, making supply security and contracts critical.​

✦ OECD‐FAO and FAO data indicate that tightening global vegetable oil balances and higher biofuel mandates worldwide are lifting feedstock prices, shaping cost structures for MENA biodiesel and SAF producers reliant on imported oils and fats.​

MENA - New Projects

✦ The Fujairah SAF project by MENA Biofuels (Phase I + II) will establish receiving, storage, and distribution infrastructure plus refinery units to export SAF from Fujairah to regional and global markets, with key EPCC packages now tendered.​

✦ Regional climate and carbon programs (e.g., GCC climate-action initiatives under the Global Carbon Council) are preparing methodologies that can support future biofuel and SAF projects through crediting mechanisms and blended-finance structures.

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FAQ's

Q1: What is the current size of the Biofuel Market?

A: The Biofuel Market stood at US$ 153.88 billion in 2024 and is set to experience remarkable growth, reaching US$ 252.19 billion in 2032

Q2: How fast is the Biofuel Market growing?

A: The Market is on an impressive growth trajectory, expected to expand at a CAGR of 6.4% from 2025 to 2032

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