Green Diesel Market Report 2026

The green diesel market size has grown rapidly in recent years. It will grow from $35.54 billion in 2025 to $39.85 billion in 2026 at a compound annual growth rate (CAGR) of 12.1%. The growth in the historic period can be attributed to environmental emission regulations, volatility in fossil fuel prices, early adoption of biofuels, government renewable fuel mandates, increasing awareness of climate impact.

The green diesel market size is expected to see rapid growth in the next few years. It will grow to $63.21 billion in 2030 at a compound annual growth rate (CAGR) of 12.2%. The growth in the forecast period can be attributed to stringent carbon reduction targets, expansion of renewable fuel standards, investment in sustainable fuel production, rising demand from transport sector, advancements in bio refining technologies. Major trends in the forecast period include rising adoption of renewable diesel, expansion of hydrotreatment technologies, growing demand for low carbon fuels, increase in blended green diesel usage, focus on reducing transportation emissions.

The growing shift toward sustainable energy is expected to propel the growth of the green diesel market going forward. Sustainable energy is defined as energy that is produced and used in such a way that it satisfies current demands while preserving future generations' ability to satisfy their own energy needs. The demand for sustainable energy is rising due to factors such as climate change, the depletion of fossil fuels, and the need for cleaner, more efficient energy solutions. Green diesel advances sustainability by using renewable feedstocks and cutting greenhouse gas emissions. It integrates seamlessly into existing engines, facilitating the shift to cleaner, eco-friendly transportation. For instance, in February 2024, according to the International Renewable Energy Agency, a UAE based renewable energy agency, in 2023 global renewable electricity capacity additions rose by about 50% year on year relative to 2022. Therefore, the growing shift toward sustainable energy is driving the growth of the green diesel market.

Major companies in the green diesel market are focused on developing advanced products such as renewable diesel to reduce carbon emissions and cater to the growing demand for sustainable energy solutions. Renewable diesel, also called green diesel, is a biofuel chemically similar to petroleum diesel but made from renewable sources like vegetable oils, animal fats, and waste oils. It is produced through hydrotreating, which removes oxygen and results in a product that can be used in diesel engines without modification. For instance, in August 2024, Exxon Mobil Corporation, a US-based natural gas company, launched Esso Renewable Diesel R20, which is a green diesel product. The fuel was first introduced at the Esso Tsing Yi South service station in Hong Kong and is also available for bulk delivery to commercial clients and at select stations in Singapore. Esso renewable diesel R20 contains at least 20% renewable content, mainly sourced from waste oils such as used cooking oil, qualifying it as a renewable fuel. This formulation is designed to cut lifecycle greenhouse gas (GHG) emissions by about 15.4% compared to conventional diesel, factoring in emissions from production through to usage.

In August 2024, Trafigura Group, a Singapore-based commodity company, acquired Greenergy International Ltd. from Brookfield Asset Management and Brookfield Business Partners for an undisclosed amount. The acquisition aims to strengthen Trafigura’s European fuel supply operations, capitalizing on Greenergy's role as a major biofuel supplier with manufacturing in the UK and Netherlands. This deal supports Trafigura’s expansion into biofuels, aligning with the industry's shift toward sustainable energy and decarbonization. Greenergy International Ltd. is a UK-based company involved in the production of green diesel, specifically biodiesel made from waste materials.

Major companies operating in the green diesel market are Exxon Mobil Corporation, Shell Plc, BP Plc, TotalEnergies SE, Chevron Corporation, Marathon Petroleum Corporation, Valero Energy Corporation, Phillips 66 Company, Cargill Incorporated, Eni S.p.A., Honeywell International Inc., Neste Corporation, Darling Ingredients Inc., Aemetis Inc., Preem AB, UPM Kymmene Oyj, Diamond Green Diesel, Gevo Inc., Green India Bio Diesel, Plentifuel Industries Pvt. Ltd.

North America was the largest region in the green diesel market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the green diesel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the green diesel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green diesel market consists of sales of algal diesel, fatty acid methyl esters, and Fischer-Tropsch diesel. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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