Saudi Arabia Biofuel Market

Saudi Arabia Biofuel Market Overview:

The Saudi Arabia biofuel market size reached USD 895.77 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,498.01 Million by ​2033​, exhibiting a growth rate (CAGR) of 10.8% during ​2025-2033​. Increasing government support for renewable energy, a push for sustainable energy solutions, rising environmental concerns, and advancements in biofuel technology are some of the factors contributing to Saudi Arabia biofuel market share. Additionally, the country’s focus on reducing dependence on fossil fuels stimulates demand for alternative energy sources.

Saudi Arabia Biofuel Market Trends:

Growing Biofuel Capacity

Saudi Arabia is making tremendous progress in increasing its biofuel manufacturing capacity. The nation has set up a biodiesel factory that transforms recycled cooking and palm oil into carbon-neutral gasoline. This factory is intended to primarily serve the local market, with extra output aimed at foreign exports. In accordance with its sustainability objectives, the monarchy is also contemplating the construction of another biofuel manufacturing complex to expand capacity. This effort helps Saudi Arabia's ambition to being carbon neutral by 2060, while also using waste materials for biofuel production, so lowering reliance on traditional fossil fuels and fostering a more sustainable energy future. These factors are intensifying the Saudi Arabia biofuel market growth. For example, in March 2023, Saudi Arabia inaugurated its first biofuel production plant in Al Jubail, operated by The Biofuel Company. The facility converts reclaimed cooking and palm oil into carbon-neutral biodiesel with a yearly production capacity of 4.2 Million Liters. The plant aims to serve the local market, with excess output exported to Europe. KSA plans a second facility in Jeddah to boost production in line with its 2060 carbon neutrality target.

Adoption of Low-Carbon Biofuels in the Transport Sector

Saudi Arabia's transportation industry is shifting toward low-carbon biofuels, with a growing number of enterprises using sustainable fuels for their delivery fleets. This shift is motivated by an increasing emphasis on lowering carbon emissions, as biofuels made from spent cooking oil emit substantially less than standard diesel. Adoption of such biofuels not only benefits the environment but also corresponds with wider sustainability plans, such as the ultimate shift to green hydrogen for mobility. This adjustment is part of the kingdom's larger efforts to minimize its carbon footprint and encourage the use of renewable energy sources, which will help it achieve long-term sustainability and carbon neutrality goals. For instance, in January 2024, Red Sea Global became the first company in the Kingdom to use low-carbon biofuel in its entire fleet of delivery trucks. The biofuel, sourced from used cooking oil within Saudi Arabia, emits only 0.17kg of CO₂ per liter, significantly reducing emissions compared to diesel. This shift is part of RSG’s broader sustainability strategy, which includes plans to transition to green hydrogen by 2030.

Saudi Arabia Biofuel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type and feedstock.

Type Insights:

• Biodiesel
• Ethanol
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes biodiesel, ethanol, and others.

Feedstock Insights:

• Coarse Grain
• Sugar Crop
• Vegetable Oil
• Others

A detailed breakup and analysis of the market based on the feedstock have also been provided in the report. This includes coarse grain, sugar crop, vegetable oil, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Biofuel Market News:

• In April 2024, Saudi Arabia’s Biofuel Company announced its plans to triple its refining capacity by 2025, expanding operations in Jeddah and Riyadh. With the Jubail site already refining 12 Million Liters of biofuel annually, the company plans to replicate this success at new locations, targeting 36 Million Liters per year by 2025.

Saudi Arabia Biofuel Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia biofuel market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia biofuel market on the basis of type?
• What is the breakup of the Saudi Arabia biofuel market on the basis of feedstock?
• What is the breakup of the Saudi Arabia biofuel market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia biofuel market? 
• What are the key driving factors and challenges in the Saudi Arabia biofuel market?
• What is the structure of the Saudi Arabia biofuel market and who are the key players?
• What is the degree of competition in the Saudi Arabia biofuel market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia biofuel market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia biofuel market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia biofuel industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.