Biorefinery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Energy, Chemical and Material), By Production Facility Size (Small and medium-sized production facility, and large production facility), By Feedstock, (Primary Biomass and Secondary Biomass), By Process (Thermochemical, Biochemical, Chemical, and Mechanical & Thermomechanical), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 176.61 Billion
CAGR (2026-2031)	9.11%
Fastest Growing Segment	Energy
Largest Market	North America
Market Size (2031)	USD 297.99 Billion

Market Overview

The Global Biorefinery Market will grow from USD 176.61 Billion in 2025 to USD 297.99 Billion by 2031 at a 9.11% CAGR. A biorefinery is an integrated facility that utilizes various conversion technologies to process biomass feedstocks into a spectrum of marketable products, including biofuels, power, heat, and value-added chemicals. The global market is primarily supported by stringent environmental regulations aimed at decarbonization, the strategic global shift toward circular economic models, and the imperative to enhance energy security by reducing reliance on fossil fuels. These structural drivers differ from temporary trends by establishing a long-term regulatory and economic foundation for industry adoption. According to the World Bioenergy Association, in 2024, liquid biofuels supplied approximately 192 billion liters globally, demonstrating the substantial production scale currently sustaining this sector.

Despite these favorable conditions, the market faces a significant impediment regarding the high capital expenditure required for establishing commercial-scale facilities. The financial burden is further exacerbated by the logistical complexity of securing a consistent, cost-effective supply of quality biomass, which creates operational risks and can deter investment in new infrastructure. This economic hurdle remains a critical barrier to entry for many potential stakeholders, slowing the pace of widespread industrial commercialization.

Key Market Drivers

Favorable government policies and financial incentives are the primary catalysts accelerating the commercial scale-up of the global biorefinery market. Governments worldwide are deploying robust fiscal frameworks, including capital grants, tax credits, and loan guarantees, to de-risk the substantial upfront investment required for integrated bio-processing facilities. These incentives are crucial for bridging the economic gap between pilot-scale technologies and industrial viability, encouraging private capital to flow into the sector. For instance, according to the European Biogas Association, June 2025, in the 'Biomethane Investment Outlook 2025', the sector has secured approximately €28 billion allocated for future investments in biomethane production, driven largely by supportive regulatory environments like the REPowerEU plan. Such financial mechanisms not only lower the barrier to entry but also provide long-term market certainty, enabling stakeholders to commit to the multi-year development cycles necessary for establishing advanced biorefining infrastructure.

Concurrently, the rising global demand for renewable clean energy and biofuels acts as a powerful structural driver, compelling the industry to expand capacity rapidly. As decarbonization mandates tighten across hard-to-abate sectors such as aviation and heavy transport, biorefineries are pivoting to maximize the output of low-carbon drop-in fuels. This trend is exemplified by the aviation sector's aggressive pursuit of sustainable aviation fuel (SAF). According to the International Air Transport Association, December 2025, in the 'IATA Releases Updated SAF Production Estimates' press release, global SAF production was projected to reach 1.9 million tonnes in 2025, nearly doubling the previous year's volume to meet surging industry appetite. This demand pull is fostering a widespread expansion of processing capabilities across the value chain. Reflecting this growth in industrial footprint, according to the European Biogas Association, in 2025, the installed biomethane production capacity in Europe reached 7 billion cubic meters annually, underscoring the market's tangible response to energy security and sustainability needs.

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Key Market Challenges

High capital expenditure constitutes a formidable barrier to the expansion of the Global Biorefinery Market. Developing commercial-scale biorefineries necessitates substantial upfront investment in advanced processing technologies, specialized machinery, and extensive infrastructure. This financial intensity elevates the risk profile for investors and financial institutions, particularly when juxtaposed with the volatility of end-product prices and the relatively long payback periods associated with these facilities. Consequently, the difficulty in securing affordable financing delays project approvals and restricts the market entry of smaller, innovative players who lack the balance sheet strength of established conglomerates.

This economic strain is intensified by the operational costs associated with establishing robust feedstock logistics. Securing a consistent biomass supply requires significant capital allocation for storage, transportation, and pre-processing networks, further inflating the initial funding requirements. The cumulative effect of these capital demands is evident in the massive financial threshold necessary for industry participation. According to the International Energy Agency, in 2025, global bioenergy investments were projected to reach approximately $16 billion. Such high financial prerequisites limit the pace of industrial commercialization, as only projects with substantial guaranteed funding can successfully navigate these capital-intensive barriers.

Key Market Trends

Diversification into High-Value Bio-Based Chemicals and Materials is fundamentally altering the market's revenue structure by prioritizing high-margin bio-products over conventional fuels. Integrated facilities are increasingly valorizing lignocellulosic streams to co-produce bio-polymers and performance chemicals, a strategy that mitigates the risks associated with volatile energy prices. This shift not only improves unit economics but also expands the industrial application of biomass beyond combustion. The scale of this transition is evident in recent capacity projections. According to European Bioplastics, December 2024, in the '2024 Market Data Report', global bioplastics production capacity is projected to expand from 2.47 million tonnes in 2024 to 5.73 million tonnes by 2029, highlighting the sector's pivot toward non-fuel manufacturing.

Incorporation of Carbon Capture, Utilization, and Storage (CCUS) Technologies represents a critical evolution in biorefinery design, enabling the production of carbon-negative energy and materials. By coupling bio-processing with carbon capture, facilities can permanently sequester biogenic CO2, thereby generating valuable carbon removal credits and lowering the carbon intensity of their products. This technological convergence is accelerating as regulatory frameworks increasingly incentivize negative emission pathways. The broader deployment of this infrastructure is gaining significant traction. According to the Global CCS Institute, October 2024, in the 'Global Status of CCS Report 2024', the global pipeline of CCS projects reached 628 facilities, marking a 60% year-on-year increase that underscores the rapid industrial scaling necessary to support advanced bioenergy with carbon capture (BECCS) deployments.

Segmental Insights

The energy segment represents the fastest-growing category within the Global Biorefinery Market, driven by increasing mandates for renewable power and low-carbon transportation fuels. This growth is substantially reinforced by policy measures such as the Renewable Fuel Standard administered by the U.S. Environmental Protection Agency, which incentivizes the blending of biofuels to mitigate greenhouse gas emissions. Additionally, the heightened focus on energy independence and the commercialization of sustainable aviation fuels further stimulate investment in biomass conversion technologies, positioning the energy sector as a primary driver of market expansion.

Regional Insights

North America holds a dominant position in the global biorefinery market, driven by abundant feedstock availability and a supportive regulatory environment. The United States leads this expansion through established policies such as the Renewable Fuel Standard administered by the Environmental Protection Agency, which mandates the integration of biofuels into the transportation sector. Additionally, consistent funding for research and infrastructure development from the Department of Energy accelerates the commercialization of bio-based technologies. This combination of strong government incentives and accessible raw materials secures the region’s status as the primary hub for market growth.

Recent Developments

• In November 2024, Sulzer announced that its customized technology had been selected to support a major sustainable aviation fuel (SAF) production facility in Shandong, China. The project, which supports China's carbon neutrality goals, is designed to produce 500,000 metric tons of SAF annually from renewable feedstocks. Sulzer will provide specialized pump solutions engineered to handle high-pressure and high-temperature conditions required for refining low-carbon feedstocks into aviation fuel. This selection highlights the growing adoption of advanced processing equipment in the global biorefinery market to scale up the production of alternative fuels that significantly reduce greenhouse gas emissions compared to conventional fossil fuels.
• In October 2024, Eni finalized a comprehensive transformation and relaunch plan for its chemical subsidiary, Versalis, involving an investment of approximately €2 billion over the next five years. The strategy focuses on shifting the company's portfolio towards specialized and sustainable chemistry by establishing new industrial plants, including a biorefinery and a chemical recycling facility. As part of this decarbonization effort, Eni announced the gradual cessation of operations at its cracking plants in Brindisi and Priolo and a polyethylene plant in Ragusa. The new industrial setup is designed to reduce carbon emissions by around one million tonnes while developing high-value downstream platforms in renewables and circular economy products.
• In August 2024, Honeywell and Repsol announced a collaboration to develop and scale new production pathways for biofuels and circular materials. The partnership focuses on integrating Honeywell’s advanced technologies into Repsol’s existing refinery infrastructure to produce sustainable aviation fuel (SAF) and renewable diesel from various waste feedstocks, such as fats, oils, and biomass. This initiative aims to accelerate the commercialization of innovative processes that utilize existing assets to produce low-carbon fuels. By combining Honeywell’s expertise in process technology with Repsol’s operational capabilities, the companies intend to support the energy transition and meet the growing global demand for renewable energy solutions.
• In June 2024, TotalEnergies and Air Products entered into a significant strategic partnership to supply green hydrogen to TotalEnergies’ refineries in Northern Europe. Under this fifteen-year agreement, Air Products committed to delivering 70,000 tons of green hydrogen annually starting in 2030, which will support the decarbonization of TotalEnergies' operations, including its biorefineries. This collaboration represents a critical step in replacing grey hydrogen with renewable alternatives, aiming to prevent approximately 700,000 tons of carbon dioxide emissions each year. The initiative aligns with the energy company's broader objective to reduce its net greenhouse gas emissions from operated oil and gas facilities by 40% by 2030 relative to 2015 levels.

Key Market Players

• POET, LLC
• Novozymes A/S
• Clariant AG
• Green Plains Inc.
• Abengoa Bioenergy
• DSM N.V.
• Neste Oyj
• Technip Energies
• LanzaTech, Inc.
• BioAmber Inc.

By Product	By Production Facility Size	By Feedstock,	By Process	By Region
Energy Chemical and Material	Small and medium-sized production facility and large production facility	Primary Biomass and Secondary Biomass	Thermochemical Biochemical Chemical and Mechanical & Thermomechanical	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Biorefinery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Biorefinery Market, By Product:

• Energy
• Chemical and Material

• Biorefinery Market, By Production Facility Size:

• Small and medium-sized production facility
• and large production facility

• Biorefinery Market, By Feedstock,:

• Primary Biomass and Secondary Biomass

• Biorefinery Market, By Process:

• Thermochemical
• Biochemical
• Chemical
• and Mechanical & Thermomechanical

• Biorefinery Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE