Global Green Diesel Market Size to Reach $69.86 Billion by 2030, Driven by Regulatory Push and Clean Energy Demand: MarkNtel Advisors (Key Players - Neste, UPM Global, Marathon Petroleum, Shell, R...
NEW DELHI , June 27, 2025 /PRNewswire/ -- The Global Green Diesel Market is set for remarkable expansion, forecasted to grow from USD 35.99 billion in 2024 to USD 69.86 billion by 2030, according to the latest market research report by MarkNtel Advisors. The market is expected to grow at a robust CAGR of 11.09% between 2025 and 2030.
Green diesel—also known as renewable diesel—is derived from animal fats, plant oils, algae, and more through advanced technologies like pyrolysis, hydrotreating, and gasification. The fuel is increasingly favored for its clean-burning properties, compatibility with existing diesel engines, and ability to reduce greenhouse gas emissions.
Industry Statistics: Size, Revenue & Growth
- Historical Years: 2020–23
- Base Years: 2024
- Forecast Years: 2025–30
- Market Value in 2024: USD 35.99 Billion
- Market Value by 2030: USD 69.86 Billion
- CAGR (2025–30): 11.09%
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Prime Factor for Driving Growth of the Market
Governments worldwide are mandating greener fuels to combat climate change. Policies like the EU Renewable Energy Directive (RED) III and the U.S. Renewable Fuel Standard are accelerating the shift to green diesel, especially in transportation sectors.
Production capacity is also expanding, with average daily green diesel output projected to rise from 230,000 barrels in 2023 to 290,000 barrels by 2025, according to the U.S. Energy Information Administration (EIA).
"Green diesel is not just an alternative—it's an imperative for industries and governments striving toward net-zero emissions," the report notes. Major firms like Neste, Chevron Renewable Energy Group, Shell, and TotalEnergies are scaling operations to meet this growing demand.
Key Insights from the Green Diesel Market Report:
- North America holds a 30% market share due to strong policy support and increased investment in renewable refineries.
- Hydro-processing accounts for over 50% market share, favored for producing high-quality, low-emission diesel.
- Blended green diesel fuels captured over 60% of the market in 2024 due to cost-efficiency and compatibility.
- Used in power generation and increasingly in transportation, especially aviation and maritime sectors.
High Production Costs hinder the Green Diesel Industry Expansion
High production costs are hindering the growth of the renewable diesel market. Technologies like hydrotreatment and biomass-to-liquid are expensive, with firms like Holborn Europa spending over $514 million on new production plants. Fluctuating feedstock prices and costly pretreatment processes further drive up expenses. As a result, producers rely on government incentives to remain competitive with petroleum diesel. Rising production costs lead to higher selling prices, creating financial barriers for budget-conscious consumers and ultimately restricting market expansion.
Opportunity Ahead: Sustainable Practices in Aviation and Maritime Sectors
The green diesel market is poised for growth as the aviation and maritime sectors increasingly focus on sustainability. With a goal of achieving net-zero emissions by 2050, the global aviation industry is integrating sustainable fuels, spurred by the EU's mandate for a 2% sustainable aviation fuel blend by 2025, rising to 70% by 2050. Similarly, the FuelEU Maritime Initiative, effective January 2025, aims for renewable and low-carbon fuels to comprise 6% to 9% of maritime transport fuel by 2030, increasing to 86% to 88% by 2050. Companies are adopting renewable diesel to meet these targets, exemplified by New York's 2025 tender for renewable diesel in its ferries.
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Sector Momentum and Strategic Developments
- 2025: OMV Petrom invested USD606 million in the construction of a sustainable aviation fuel (SAF) and renewable diesel (HVO) production unit, which will have a production capacity of 250,000 tons per year. It will end by 2028.
- 2024: Phillips 66 announced a major milestone in its conversion of the San Francisco refinery into the Rodeo Renewable Energy Complex, expanding commercial-scale production of renewable diesel.
Industry Segmentation Analysis (2025-30)
- By Form (Pure Form, Blended Form)
- By Feedstock (Animal Fat, Vegetable Oil, Others)
- By Technology (Hydroprocessing, Biomass-to-Liquid, Pyrolysis, Others)
- By Application (Fuel, Power Generation) and Others
Hydro-Processing: Dominating Segment in the Green Diesel Market
Hydro-processing leads the green diesel market with over 50% share, involving the reaction of renewable oils with hydrogen under high temperature and pressure to yield green diesel. This method mimics the properties of ultra-low sulfur diesel (ULSD), making it favored by commercial facilities. Companies like Axens and Honeywell offer advanced hydro-processing technologies, enhancing production quality and reducing carbon emissions. In 2024, Acelen Renewables aimed to produce 20,000 barrels per day using Honeywell's Ecofining technology. Collaborations between producers and tech providers, along with innovations in hydro-processing, are expected to drive market growth.
Market Geography:
Geographically, the Global Green Diesel Market expands across:
- North America
- South America
- Europe
- The Middle-East & Africa
- Asia-Pacific
North America Hold a 30% Green Diesel Market Share
North America captures about 30% of the green diesel market, driven by rising greenhouse gas concerns. In January 2023, the U.S. Department of Energy announced a $118 million investment in sustainable fuels. Additionally, Canada is increasing its renewable fuel blending target to 8% by April 2025, while European demand surges, boosting the industry outlook.
Key Players: Top Green Diesel Companies Worldwide
- Neste
- UPM Global
- Gevo
- Valero
- Chevron Renewable Energy Group
- Marathon Petroleum Corporation
- Enilive S.p.A.
- Phillips 66 Company
- TotalEnergies
- Aemetis, Inc.
- Global Clean Energy Holdings, Inc.
- Shell
- Repsol
- Acelen Renewables
- Heartwell Renewables, LLC
- Others
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