Biorefinery Market Outlook:
Biorefinery Market size was valued at USD 257.17 billion in 2025 and is set to exceed USD 581.46 billion by 2035, expanding at over 8.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of biorefinery is estimated at USD 276.84 billion.
The market growth can be attributed to increased waste conversion into energy. Biorefineries employ waste to produce biofuels, platform chemicals, and other bio-based materials, thereby reducing the environmental burden on fossil fuels. In 2021, 64 power plants in the United States created approximately 13.6 billion kilowatt-hours of electricity by burning around 28 million tons of combustible municipal solid waste (MSW) for electricity generation. Moreover, biomass materials represented approximately 61% of the combustible MSW weight and approximately 45% of the electricity generated.
The U.S. produces renewable energy harnessed from agriculture, forestlands, and other feedstocks for the transport sector on a commercial scale. The popular biofuel utilized is ethanol, usually churned out from corn, and renewable diesel prepared from vegetable oils, animal fats, and greases. According to the USDA, the U.S. ethanol production totaled 15.4 billion gallons and cumulative renewable diesel was 3.1 billion gallons in 2022. EIA estimates that the production came from 85 biodiesel plants with an annual capacity of 2.5 billion gallons, of which 72% was from the Midwest.
Biodiesel producer sales in December 2020 were 74 million gallons of pure B100 (100% biodiesel) and another 73 million gallons were biodiesel blends. 1,176 million pounds of feedstocks were used in December 2020 and soybean oil was the highest, reaching 744 million pounds. In January 2023, the country’s capacity surpassed 23 billion gallons/year (gal/y), a 6% rise from January 2022. Ethanol contributed to 78% of biofuel production capacity, while biodiesel contributed 9% and other biofuels for 13%. Between 2022 and 2023, the renewable diesel capacity spiked by 1.25 billion gallons/year, representing a 71% jump from 2022. By January 2023, Texas held a capacity of 537 million gallons/year, the second highest after Louisiana. While the Midwest dominates ethanol and biodiesel, 60% of renewable diesel and miscellaneous biofuel capacity is on the Gulf Coast.
