Top 10 Companies in the Hydrocarbon-based Biodiesel Market (2026): Market Leaders Driving Global Decarbonization

MARKET INSIGHTS

Global Hydrocarbon-based Biodiesel market size was valued at USD 48.5 billion in 2024. The market is projected to grow from USD 52.1 billion in 2025 to USD 84.7 billion by 2034, exhibiting a CAGR of 7.2% during the forecast period.

Hydrocarbon-based biodiesel, often referred to as renewable diesel or hydrotreated vegetable oil (HVO), is an advanced biofuel produced through the hydrotreatment of biological feedstocks such as vegetable oils, animal fats, and waste oils. This process, which involves reacting the feedstock with hydrogen under high pressure and temperature, results in a fuel that is chemically identical to petroleum diesel. This chemical parity allows it to be used as a drop‑in fuel in existing diesel engines and infrastructure without blending limits, offering a significant advantage over conventional fatty acid methyl ester (FAME) biodiesel.

The market is experiencing robust growth driven by stringent government regulations aimed at reducing carbon emissions, such as the Renewable Fuel Standard (RFS) in the United States and the Renewable Energy Directive (RED II) in the European Union. Furthermore, increasing corporate sustainability initiatives and the superior performance characteristics of renewable diesel compared to FAME biodiesel are accelerating adoption. Recent strategic developments by key industry players are also fueling market expansion. For instance, in 2023, Neste OYJ successfully expanded its Singapore refinery, increasing its total renewable product capacity. Other leading players shaping the market landscape include Valero Energy, Phillips 66, Renewable Energy Group, and Gevo.

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Top 10 Companies in the Hydrocarbon-based Biodiesel Market (2026)

Below is a curated ranking of the most influential players shaping the global hydrocarbon-based biodiesel landscape. Each company’s profile highlights its geographic footprint, core offerings, and strategic initiatives driving market penetration.

1️⃣ Neste OYJ

Headquarters: Espoo, Finland
Key Offering: Renewable diesel, HVO, and advanced biofuels for automotive and aviation sectors

Neste continues to leverage its world‑class hydrotreatment facilities to produce high‑quality renewable diesel at scale. The company’s recent expansion in Singapore has increased its renewable product capacity by 20 %.

Sustainability & Growth Initiatives:

• Investing in cellulosic and algae‑derived feedstocks to reduce carbon intensity.
• Partnerships with major airlines to supply SAF and marine biofuel.
• Commitment to a net‑zero supply chain by 2040.

2️⃣ Valero Energy

Headquarters: San Antonio, Texas, USA
Key Offering: Co‑processing renewable feedstocks in existing refineries to produce renewable diesel

Valero’s integrated refinery network allows it to blend renewable diesel into conventional diesel streams, meeting RFS mandates while preserving refinery margins.

Sustainability & Growth Initiatives:

• Targeting 1 million barrels per day of renewable diesel by 2030.
• Deploying advanced hydrotreaters to reduce capital intensity.
• Collaborating with feedstock producers to secure low‑cost UCO supplies.

3️⃣ Phillips 66

Headquarters: Houston, Texas, USA
Key Offering: Renewable diesel production through the Rodeo Refinery

Phillips 66’s Rodeo facility has been converted into one of the largest renewable fuel plants in the United States, delivering high‑performance renewable diesel to the Midwest.

Sustainability & Growth Initiatives:

• Expanding renewable capacity to 800 M gallons per year.
• Investing in waste‑oil sourcing agreements to diversify feedstock mix.
• Engaging with logistics partners to improve distribution efficiency.

4️⃣ PBF Energy

Headquarters: Irving, Texas, USA
Key Offering: Renewable diesel and blended biofuel solutions for transportation fleets

PBF Energy operates a network of renewable diesel plants across the United States, providing high‑volume, high‑quality fuel to commercial fleets.

Sustainability & Growth Initiatives:

• Strategic acquisition of UCO processing units to secure feedstock supply.
• Deployment of low‑temperature additives to improve cold‑weather performance.
• Collaboration with fleet operators to offer carbon‑offset packages.

5️⃣ Gevo

Headquarters: Irvine, California, USA
Key Offering: Bio‑based hydrocarbons from cellulosic biomass for renewable diesel and aviation fuel

Gevo’s proprietary fermentation technology converts lignocellulosic feedstocks into isobutylene, a key building block for high‑performance renewable fuels.

Sustainability & Growth Initiatives:

• Scaling up biorefinery capacity to 20 M barrels per year.
• Forming joint ventures with agricultural cooperatives to secure feedstock.
• Investing in SAF production to capture aviation decarbonization demand.

6️⃣ Renewable Energy Group (REG)

Headquarters: Houston, Texas, USA
Key Offering: Biodiesel, renewable diesel, and advanced biofuel blends for industrial and transportation markets

Acquired by Chevron, REG brings deep expertise in biodiesel production and a strong distribution network across North America.

Sustainability & Growth Initiatives:

• Integrating renewable diesel into Chevron’s global refinery portfolio.
• Expanding UCO sourcing to support low‑carbon fuel commitments.
• Partnering with power generation companies to supply renewable diesel for backup generators.

7️⃣ Star Oilco

Headquarters: Houston, Texas, USA
Key Offering: Blending services and distribution of renewable diesel to commercial fleets

Star Oilco provides customized blending solutions, enabling customers to meet regulatory targets without modifying engines.

Sustainability & Growth Initiatives:

• Developing a dedicated renewable diesel distribution hub in the Gulf Coast.
• Offering carbon‑offset services to fleet operators.
• Implementing digital tracking for fuel consumption and emissions.

8️⃣ Sunshine Biofuels

Headquarters: London, United Kingdom
Key Offering: Renewable diesel production from waste oils and animal fats for the European market

Sunshine Biofuels operates a state‑of‑the‑art plant in the UK that converts UCO and animal fats into high‑quality renewable diesel.

Sustainability & Growth Initiatives:

• Expanding feedstock supply chain to include local poultry farms.
• Investing in carbon‑capture technologies to offset production emissions.
• Collaborating with logistics providers to reduce transportation emissions.

9️⃣ Musket Corporation

Headquarters: Houston, Texas, USA
Key Offering: Renewable diesel blending and distribution for heavy‑duty trucking fleets

Musket Corporation specializes in providing drop‑in renewable diesel blends that meet the stringent performance requirements of heavy‑duty engines.

Sustainability & Growth Initiatives:

• Launching a fleet‑wide monitoring platform to track fuel usage and emissions.
• Securing long‑term contracts with logistics companies for renewable diesel supply.
• Partnering with research institutions to improve fuel formulations.

🔟 Zhuoyue New Energy

Headquarters: Shanghai, China
Key Offering: Renewable diesel production from palm oil and other non‑food feedstocks for the Asian market

Zhuoyue New Energy has rapidly expanded its production capacity to meet China’s growing renewable fuel mandates.

Sustainability & Growth Initiatives:

• Investing in algae‑based feedstock projects to reduce reliance on palm oil.
• Collaborating with local governments to secure feedstock subsidies.
• Expanding export capabilities to meet ASEAN demand.

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Outlook: The Future of Hydrocarbon-based Biodiesel

The hydrocarbon-based biodiesel market is poised to transform the transportation and industrial fuel sectors. Its drop‑in compatibility, combined with tightening emission regulations, positions renewable diesel as the preferred choice for fleets seeking immediate decarbonization without costly engine modifications.

Key drivers include:

• Expansion of renewable fuel mandates across North America, Europe, and Asia‑Pacific.
• Growing corporate commitments to net‑zero targets, creating a steady demand for low‑carbon fuels.
• Technological breakthroughs in feedstock conversion and hydrotreatment that lower production costs.

Future Trends Shaping the Market

• Accelerated adoption of advanced feedstocks such as algae and municipal waste, which offer superior sustainability credentials.
• Increased focus on aviation and marine biofuels, where renewable diesel can replace conventional diesel in high‑performance engines.
• Strategic partnerships across the value chain—between refiners, feedstock producers, and logistics providers—to build resilient supply networks.
• Digitalization of fuel distribution, enabling real‑time monitoring of fuel quality and emissions.

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