The global energy landscape is undergoing a profound transformation as the world races to meet ambitious climate targets and reduce dependence on fossil fuels. In this transition, biofuels have emerged as a critical bridge technology, offering renewable alternatives that can work within existing infrastructure while significantly reducing greenhouse gas emissions. The biofuels market, valued at approximately 1.99 million barrels of oil equivalent per day in 2025, is projected to reach 2.56 million barrels per day by 2030, representing a compound annual growth rate of 5.2 percent.
Understanding biofuels requires recognizing their diversity and evolution. First-generation biofuels, produced from food crops like corn and sugarcane, established the industry but raised concerns about food security. Second-generation biofuels advanced the field by utilizing non-food feedstocks such as agricultural residues, wood waste, and used cooking oils. Third-generation biofuels leverage algae and other microorganisms, while fourth-generation technologies incorporate genetic engineering and advanced conversion processes. This evolution reflects the industry’s continuous innovation in addressing sustainability challenges while scaling production to meet growing demand.
The companies profiled in this comprehensive analysis represent the vanguard of biofuel production in 2026, combining established agricultural expertise with cutting-edge technology to deliver renewable fuels at commercial scale. These industry leaders are not merely producing alternatives to petroleum; they are reshaping transportation, agriculture, and energy systems worldwide.
1. POET LLC: The World’s Bioethanol Giant
POET stands as the world’s largest producer of bioethanol, operating an extensive network of biorefineries that exemplify the scale and sophistication of modern biofuel production. Headquartered in Sioux Falls, South Dakota, POET has built its empire on the abundant corn resources of America’s heartland, transforming agricultural commodities into clean-burning transportation fuel and valuable co-products.
The company’s production capacity is staggering. Through its network of facilities concentrated in the Midwest states of Nebraska, Iowa, Minnesota, Illinois, Indiana, and Tennessee, POET converts more than 300 million bushels of corn annually into nearly one billion gallons of bioethanol. To put this in perspective, this volume could fuel millions of vehicles for an entire year, displacing an equivalent amount of petroleum-based gasoline and reducing greenhouse gas emissions significantly compared to fossil fuels.
What distinguishes POET from competitors is its commitment to continuous innovation and vertical integration. The company operates two primary business segments: ethanol production and agribusiness services. This integration allows POET to control quality and costs from feedstock procurement through final fuel distribution. Recent announcements underscore this growth trajectory. In January 2026, POET revealed plans to double production at its Shelbyville, Indiana facility from 98 million gallons to 193 million gallons annually by the end of 2027, with construction beginning in March 2026. This expansion will create 20 new full-time positions and substantially increase local grain demand, directly benefiting area farmers.
Beyond ethanol, POET produces high-value co-products that enhance the economic viability of biorefining. These include Ultra-High Protein distillers’ grains used as livestock feed, renewable corn oil utilized in biodiesel production, bio-carbon dioxide for industrial applications, dry ice, and even asphalt rejuvenator. This diversified product portfolio demonstrates how modern biorefineries extract maximum value from their feedstocks while minimizing waste.
POET has also pioneered advanced biofuel technologies, including cellulosic ethanol production from non-food plant materials. Although the company’s Liberty cellulosic ethanol project has since closed, it demonstrated technical feasibility and provided valuable insights for future advanced biofuel development. The company actively invests in carbon capture technology through partnerships like the Tallgrass carbon dioxide pipeline, positioning itself at the forefront of carbon-negative fuel production.
2. Archer Daniels Midland Company: Agricultural Processing Powerhouse
Archer Daniels Midland Company, universally known as ADM, represents one of the world’s most established and diversified agricultural processors with deep roots extending back to its founding in 1902. While ADM operates across multiple segments including food ingredients, animal nutrition, and industrial products, its biofuels division plays a crucial role in meeting global renewable fuel demand.
ADM’s biofuel operations span both ethanol and biodiesel production, leveraging the company’s unparalleled agricultural supply chain infrastructure. Operating processing facilities that transform crops such as corn, soybeans, oilseeds, wheat, and cocoa into various products, ADM’s Carbohydrate Solutions segment focuses particularly on corn-based sweeteners, starches, and bioproducts including ethanol. The company’s capabilities extend to manufacturing renewable fuel that serves both transportation applications and industrial uses.
The company’s market position is formidable. According to recent industry analysis, ADM holds a significant share of the global biofuels market, with its extensive network of production facilities strategically located near agricultural production zones to optimize logistics and minimize transportation costs. This geographical advantage allows ADM to source feedstocks efficiently while maintaining close relationships with farming communities that supply its raw materials.
ADM’s Origination segment plays a vital supporting role in biofuel production by managing the procurement, transportation, storage, and merchandising of agricultural commodities. This creates a crucial link between farmers and end markets, ensuring steady feedstock supply for biorefining operations. The Oilseeds segment processes soybeans and other oil-bearing crops into oils, meals, protein concentrates, and related products, many of which serve as feedstocks for biodiesel production.
What sets ADM apart is its truly global footprint. The company operates in over 160 countries, allowing it to source diverse feedstocks and serve regional biofuel markets worldwide. This international presence positions ADM to capitalize on varying regulatory environments and renewable fuel mandates across different geographies, from North American ethanol blending requirements to European biodiesel mandates.
3. Cargill Incorporated: Integrated Biofuel Solutions
Cargill stands as one of the world’s largest privately held corporations, with biofuels representing a strategic component of its diversified agricultural and food portfolio. Founded in 1865 and operating in over 70 countries, Cargill brings extensive agricultural expertise and processing capabilities to biofuel production and feedstock supply chains.
The company’s biofuel activities encompass ethanol production, biodiesel manufacturing, and increasingly, renewable diesel feedstock supply. Cargill’s strength lies in its integrated approach, controlling feedstock cultivation, processing, and distribution networks that support biofuel manufacturing. The company’s oilseed crushing facilities process soybeans and other oil crops into vegetable oils and protein meals, with oils serving as key inputs for biodiesel and renewable diesel production.
A landmark development highlighting Cargill’s biofuel commitment came through its strategic joint venture with Chevron USA, named Bunge Chevron Ag Renewables LLC, launched in 2022. While technically a Bunge-Chevron partnership, it reflects the broader industry trend of agricultural processors collaborating with energy companies. Cargill operates similar arrangements, leveraging its soybean crushing facilities to develop lower-carbon feedstocks specifically for renewable diesel and sustainable aviation fuel production.
Cargill’s biofuel operations in Iowa Falls, Iowa exemplify this integrated model, producing soybean meal, oil, and biodiesel at a single location. This co-location reduces transportation costs and environmental impacts while maximizing efficiency. The company’s biodiesel production utilizes both virgin vegetable oils and increasingly, waste oils and animal fats that offer superior carbon reduction profiles compared to first-generation feedstocks.
The company’s contribution to biofuel markets extends beyond direct production. Cargill serves as a major supplier of feedstocks to independent biodiesel and renewable diesel producers worldwide, effectively enabling production far exceeding its own manufacturing capacity. This role as a critical supply chain enabler makes Cargill indispensable to the global biofuels industry, even where the company name doesn’t appear on the final fuel product.
4. Raízen: Brazil’s Sugarcane Ethanol Leader
Raízen represents the powerhouse of Brazilian biofuel production, operating as a joint venture between Cosan SA and Shell that has become Latin America’s largest integrated energy company. Brazil’s position as the world’s second-largest ethanol producer stems largely from Raízen’s massive operations, which harness the country’s abundant sugarcane resources to produce renewable fuel at extraordinary scale.
The company’s production statistics are impressive by any measure. Raízen produces more than 2.2 billion liters of sugarcane-based ethanol annually, utilizing Brazil’s ideal climate and extensive sugarcane cultivation infrastructure. What makes this particularly significant is the carbon intensity of sugarcane ethanol, which typically achieves much lower lifecycle emissions compared to corn-based ethanol due to sugarcane’s higher yield per hectare and more efficient conversion process.
Beyond liquid fuels, Raízen demonstrates integrated biorefining at its finest by generating approximately 3,000 megawatts of installed capacity from biomass. This electricity production utilizes sugarcane bagasse, the fibrous residue remaining after juice extraction, which would otherwise represent waste. By combusting bagasse in specialized boilers, Raízen produces enough electricity to power its operations while selling surplus power to Brazil’s electrical grid, creating an additional revenue stream while reducing reliance on fossil fuel-based generation.
Raízen has also achieved notable success in second-generation biofuels through its partnership with Iogen Corporation. The company built a commercial cellulosic ethanol facility at its Costa Pinto sugar mill in Piracicaba, Brazil, using Iogen Energy’s advanced conversion technology to produce ethanol from sugarcane bagasse and straw. This represents one of the few commercially successful cellulosic ethanol operations globally, demonstrating that advanced biofuels can achieve viability when integrated with existing sugar and ethanol infrastructure.
Cosan’s renewable energy division, which encompasses Raízen, continues advancing biogas, biomass, and additional second-generation biofuel projects across Brazil, Chile, and beyond. As Brazil’s largest sugarcane milling company, Raízen integrates operations from cultivation through fuel sales, managing extensive export and domestic distribution networks that make Brazilian ethanol available to global markets seeking low-carbon fuel alternatives.
5. Neste Corporation: Renewable Diesel Pioneer
Neste Corporation of Finland has established itself as the undisputed global leader in renewable diesel production, pioneering technologies and business models that have defined the industry’s premium segment. Unlike traditional biodiesel produced through transesterification of vegetable oils, Neste’s renewable diesel utilizes a sophisticated hydrotreating process that produces fuel chemically identical to petroleum diesel but derived from renewable feedstocks.
The company’s production scale is remarkable. Neste currently produces approximately 5.5 million metric tons of renewable diesel annually through its proprietary Neste MY Renewable Diesel process, formerly known as NExBTL. The company has set ambitious targets to reach 6.8 million metric tons by 2026, representing continued aggressive expansion in response to growing global demand for drop-in renewable fuels that require no engine modifications or infrastructure changes.
Neste’s technological innovation centers on its patented hydrotreating process that converts vegetable oils, used cooking oils, and animal fats into pure hydrocarbons through catalytic hydrodeoxygenation. This process removes oxygen from the feedstock molecules, producing alkanes that match or exceed petroleum diesel specifications. The resulting fuel contains no aromatics, sulfur, or oxygen, offering superior cold-weather performance with cloud points adjustable to negative 40 degrees Celsius, compared to petroleum diesel’s typical negative 30 degrees Celsius threshold.
The environmental benefits are substantial. Neste estimates greenhouse gas emission reductions of 40 to 90 percent compared to fossil diesel, with waste-based feedstocks achieving the higher end of this range. When using reclaimed waste oils and fats, emission reductions can reach 88 to 91 percent, approaching carbon neutrality when accounting for the full lifecycle. This performance has made Neste MY Renewable Diesel the preferred choice for applications requiring both environmental credentials and technical excellence.
Neste’s feedstock strategy emphasizes waste and residue materials, with approximately 80 percent of its renewable fuel production utilizing waste and residue raw materials rather than virgin vegetable oils. The company sources used cooking oil, animal fat waste from food processing, and increasingly explores advanced feedstocks including algae, jatropha, and microbial oils. This waste-based approach addresses food-versus-fuel concerns while delivering superior carbon reduction.
The company operates major renewable product refineries in Finland, the Netherlands, and Singapore, with a significant presence serving North American markets through exports and partnerships. In 2023, Neste reported renewable diesel production increases of more than 15 percent compared to 2022, while sustainable aviation fuel production surged nearly 59 percent, demonstrating the company’s successful diversification beyond road transportation into aviation decarbonization.
6. Green Plains Inc.: Advanced Biorefining Innovation
Green Plains Inc. has emerged as a leading American biorefining company with a distinctive focus on technology-driven efficiency and vertical integration. Headquartered in Omaha, Nebraska, Green Plains operates ten ethanol biorefineries strategically distributed across Nebraska, Iowa, Minnesota, Illinois, Indiana, and Tennessee, positioning the company at the heart of American corn production.
The company’s production capacity demonstrates significant scale, converting more than 300 million bushels of corn annually into nearly one billion gallons of ethanol. This output is complemented by substantial co-product streams including renewable corn oil and Ultra-High Protein distillers’ grains, with Green Plains specifically developing proprietary protein production technologies that create higher-value animal feed products commanding premium pricing.
Green Plains operates through two integrated segments that create competitive advantages. The ethanol production segment encompasses its ten biorefineries and associated processing capacity, while the agribusiness services segment manages feedstock procurement, ethanol marketing, and co-product distribution. This integration allows the company to optimize procurement costs, manage price risk, and capture additional margins throughout the value chain rather than operating purely as a toll processor.
The company has pursued technological leadership in biorefining efficiency. Although the Liberty cellulosic ethanol project in which Green Plains participated has since closed, the experience informed ongoing innovation efforts. Green Plains actively invests in carbon capture and sequestration partnerships, including the Tallgrass carbon dioxide pipeline project that aims to capture and permanently sequester carbon dioxide generated during fermentation. This investment in carbon capture positions Green Plains to produce carbon-negative ethanol, potentially qualifying for premium pricing under low-carbon fuel standards.
Leadership transitions marked 2025, with long-time CEO Todd Becker stepping down in March. While new leadership arrangements were still being finalized as of early 2026, the company’s strategic direction toward advanced bioprocessing and carbon capture remains clear. Green Plains represents a new generation of biorefining companies that view ethanol production not merely as commodity fuel manufacturing but as integrated bioprocessing that generates multiple valuable products while actively managing carbon intensity.
7. Valero Energy Corporation: Refining Giant’s Renewable Pivot
Valero Energy Corporation, traditionally known as one of North America’s largest petroleum refiners, has strategically positioned itself as a major force in renewable fuels production. Headquartered in San Antonio, Texas, Valero operates a vast network of refineries across North America, Europe, and the Caribbean, with substantial processing capacity that the company increasingly dedicates to renewable fuel production alongside conventional petroleum products.
Valero’s ethanol operations have grown to represent significant production capacity, making the company one of the largest ethanol producers in the United States. The company produces ethanol derived from corn and other renewable feedstocks at multiple facilities strategically located near agricultural production regions. This geographic distribution allows Valero to optimize feedstock costs while serving diverse regional markets with varying fuel specifications and blending requirements.
What distinguishes Valero’s approach is its integration of renewable fuels within a broader refining and marketing infrastructure developed over decades serving petroleum markets. The company leverages existing distribution networks, customer relationships, and logistics capabilities to bring renewable fuels to market efficiently. This allows Valero to achieve economies of scale and market penetration that standalone biofuel producers struggle to match.
Valero’s renewable diesel operations complement its ethanol business, with the company investing in technologies that convert fats, oils, and greases into renewable diesel meeting petroleum diesel specifications. These investments position Valero to serve markets increasingly demanding low-carbon fuel alternatives while maintaining the company’s core competency in fuel refining and distribution.
The company’s biofuels strategy reflects broader trends in the energy industry, where established petroleum companies increasingly view renewable fuels not as competitive threats but as complementary products within diversified energy portfolios. Valero’s financial strength and operational expertise provide resources for continued investment in renewable fuel capacity expansion and technology development.
8. Shell PLC: Integrated Energy Transition
Shell PLC, one of the world’s largest integrated energy companies with roots extending back to 1907, has positioned its Low Carbon Fuels business as a central pillar of its net-zero by 2050 strategy. The company’s biofuels operations span renewable diesel, bioethanol, biomethane, and increasingly, sustainable aviation fuel production and distribution globally.
Shell’s biofuel strategy emphasizes both in-house production and strategic partnerships that leverage the company’s global reach and financial resources. Through its joint venture with Cosan forming Raízen, Shell participates in one of the world’s largest sugarcane ethanol operations while maintaining independent renewable fuel initiatives across other geographies. This diversified approach allows Shell to participate in multiple biofuel technologies and feedstock sources rather than concentrating risk in a single pathway.
The company had planned a major biofuel plant at its Rotterdam chemicals park with annual capacity of 820,000 tonnes, representing one of Europe’s largest proposed renewable fuel facilities. However, Shell paused construction in mid-2024 amid weak market conditions and technical setbacks, potentially incurring up to one billion dollars in costs. This decision highlights the capital-intensive nature of advanced biofuel projects and the challenges even major energy companies face in navigating volatile renewable fuel markets and evolving policy landscapes.
Despite the Rotterdam setback, Shell continues partnering on drop-in biofuels technology development and invests in feedstock ventures such as SBI Bioenergy in Canada. The company’s sustainable aviation fuel initiatives have shown particular promise, with Shell securing supply contracts with major airlines seeking to meet increasingly stringent emissions reduction targets. The aviation sector represents a premium market for biofuels, with customers often willing to pay substantial premiums for verified low-carbon alternatives to conventional jet fuel.
Shell’s involvement in biofuels extends beyond production to encompass research and development partnerships with technology providers, investment in feedstock production ventures, and integration of renewable fuels into its global fuel marketing network. This comprehensive approach positions Shell to participate throughout the biofuel value chain while managing risks through diversification.
9. Chevron Corporation: Renewable Fuels Expansion
Chevron Corporation, one of America’s largest integrated energy companies headquartered in Houston, Texas, has aggressively expanded its renewable fuels operations through strategic investments and partnerships. While maintaining its core oil and gas business, Chevron views renewable fuels as essential components of its long-term energy portfolio in a carbon-constrained world.
The company’s renewable fuel strategy centers on renewable diesel and sustainable aviation fuel production, with particular emphasis on technologies utilizing waste fats, oils, and greases as feedstocks. Chevron’s partnership with Bunge North America through Bunge Chevron Ag Renewables LLC exemplifies this approach, combining Chevron’s approximately 600 million dollar investment with Bunge’s expertise in oilseed processing and agricultural supply chains.
This joint venture leverages Bunge’s soybean crushing facilities in Destrehan, Louisiana, and Cairo, Illinois, with investments doubling daily processing capacity to 7,000 tons by late 2024. The resulting vegetable oils serve as feedstocks for renewable diesel production, creating a vertically integrated supply chain from agricultural production through final fuel delivery. This integration provides Chevron with secure feedstock access while giving Bunge entry into the rapidly growing renewable fuels market.
Chevron’s renewable fuels strategy benefits from the company’s advanced catalysts and process technologies developed through decades of petroleum refining. These technologies translate effectively to renewable fuel production, particularly in hydrotreating processes that convert vegetable oils and animal fats into renewable diesel chemically identical to petroleum diesel. The company’s feedstock diversification efforts aim to reduce reliance on specific crops while improving carbon intensity scores under programs like California’s Low Carbon Fuel Standard.
The company’s integration of renewable fuels into its existing infrastructure provides significant competitive advantages. Chevron’s extensive fuel distribution network, retail relationships, and brand recognition allow it to bring renewable fuels to market through existing channels rather than building distribution from scratch. This allows Chevron to achieve scale rapidly while competing effectively with both incumbent petroleum products and renewable fuel specialists.
10. BP PLC: Bioenergy in Energy Transition
BP PLC, the British energy giant formerly known as British Petroleum, has positioned bioenergy as a key element of its transformation from an oil company into an integrated energy company. With market leadership aspirations in renewable fuels, BP has made substantial investments in bioethanol, renewable diesel, and sustainable aviation fuel production and distribution globally.
According to recent industry analysis examining bioenergy market concentration, BP holds approximately 12.36 percent market share, making it the largest single player in the global bioenergy sector. This leadership position reflects decades of strategic investments in biofuel assets, technology development, and supply chain infrastructure spanning multiple continents and feedstock sources.
BP’s biofuel operations encompass both first-generation and advanced biofuels. The company operates significant bioethanol production capacity, primarily in Brazil where it participates in sugarcane ethanol production, and in the United States where corn-based ethanol remains dominant. BP has systematically acquired and developed biofuel assets over the past two decades, building a portfolio that generates steady cash flows while providing optionality for future expansion.
The company’s renewable diesel and sustainable aviation fuel activities have accelerated in recent years as aviation and road transportation sectors intensify decarbonization efforts. BP has announced partnerships with airlines to supply sustainable aviation fuel and invested in technology development for converting various feedstocks into aviation-grade renewable fuels. These initiatives position BP to capture premium margins in markets where customers demonstrate strong willingness to pay for verified emission reductions.
BP’s integrated energy strategy leverages its existing petroleum infrastructure to distribute renewable fuels alongside conventional products, creating a diversified energy portfolio that can adapt to varying regional policy environments and customer preferences. The company’s fuel retailing network provides direct customer access for renewable fuel products, while its trading operations manage price risk and optimize supply chain efficiency across global markets.
The company continues investing in next-generation biofuel technologies including waste-to-fuel conversion, advanced fermentation, and genetic modification of feedstock crops to improve yields and reduce input requirements. These research investments aim to maintain BP’s technological leadership while addressing sustainability concerns that have challenged first-generation biofuels.
The Future of Biofuel Production
The biofuel industry in 2026 stands at a critical juncture between established first-generation technologies and emerging advanced biofuel pathways. The ten companies profiled represent diverse approaches to renewable fuel production, from agricultural processors leveraging existing crop infrastructure to petroleum companies repurposing refining expertise for renewable feedstocks. This diversity reflects the industry’s maturation and the recognition that multiple technology pathways will be necessary to achieve transportation sector decarbonization at scale.
Sustainable aviation fuel emerges as a particularly promising growth area, with the global aviation industry consuming approximately 100 billion gallons of jet fuel annually yet sustainable alternatives supplying less than 0.5 percent of this total. Meeting the industry’s 2030 target of 10 percent sustainable aviation fuel usage would require a twentyfold increase from current production levels, creating enormous opportunities for companies capable of scaling production while meeting strict aviation fuel specifications.
Policy environments continue shaping biofuel markets profoundly. The United States’ Inflation Reduction Act provides production credits based on carbon intensity reduction, creating direct economic incentives to process waste streams and invest in carbon capture. California’s Low Carbon Fuel Standard prices fuels based on lifecycle emissions, rewarding producers who minimize feedstock impacts and optimize processing efficiency. Similar policies in Europe, Brazil, and other major markets create patchwork incentives that favor different feedstocks and technologies depending on regional priorities.
The tension between food security and fuel production remains contentious, particularly for first-generation biofuels utilizing food crops. Industry leaders increasingly emphasize waste-based feedstocks, agricultural residues, and non-food crops to address these concerns. Second-generation technologies converting cellulosic materials and third-generation approaches utilizing algae or microbial fermentation promise to eliminate food-fuel competition while potentially achieving superior carbon reduction.
The companies leading biofuel production in 2026 demonstrate that renewable fuels have evolved from niche alternatives to mainstream energy products capable of displacing substantial petroleum volumes. With continued policy support, technological innovation, and capital investment, these industry leaders will play essential roles in the global energy transition, providing low-carbon alternatives for transportation sectors where electrification remains impractical or economically unviable. The success of their efforts will significantly influence whether the world achieves its climate goals while maintaining energy security and economic development.
