BAKU, Azerbaijan, November 26. As pressure mounts for the oil and gas industry to transition away from fossil fuels, leading companies like BP, Chevron, Shell, TotalEnergies, ExxonMobil, and Eni are increasing investments in the biofuels sector, says Rystad Energy, an independent research and business intelligence company, based in Norway, Trend reports.
According to the research, these companies have announced 43 biofuel projects, aimed to start by 2030, with a combined production capacity of 260,000 b/d. The focus is primarily on hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), which are expected to account for nearly 90% of production.
The investments include greenfield developments, co-processing initiatives, and full refinery conversions. Co-processing, which integrates bio feedstock into existing refineries, is particularly popular due to its cost-effectiveness. Chevron’s Geismar project, with a capacity of 22,000 b/d, is the largest among the greenfield developments, while Eni's Gela refinery aims to produce 16,000 b/d of HVO and SAF.
bp leads with the largest biofuel capacity in its pipeline, targeting 104,000 b/d by 2030. The company’s acquisition of Bunge Bioenergia boosts its capacity to 66,000 b/d, exceeding its 2025 milestone. Chevron, with the purchase of Renewable Energy Group, and TotalEnergies, focusing on waste biomass for 75% of its biofuels, are also expanding their operations.
Biofuels like HVO and SAF are gaining traction as low-carbon alternatives for sectors such as aviation and heavy transport. These fuels are seen as immediate solutions to reduce emissions without major infrastructure changes. The rising demand for sustainable fuels, along with regulatory support like the EU's "ReFuel EU" initiative, underscores their growing importance in the global energy transition.