Table of Contents
Overview
New York, NY – July 18, 2025 – The Global Renewable Naphtha Market is gaining significant traction, projected to grow from USD 0.6 billion in 2024 to USD 1.8 billion by 2034, achieving a robust CAGR of 11.5% during the 2025–2034 forecast period.
As of January 1, 2024, U.S. renewable fuels production capacity, encompassing renewable diesel, jet fuel, heating oil, naphtha, and gasoline, reaches approximately 4,328 million gallons annually (282,000 barrels per day) across 22 facilities. In Canada, investments in clean fuels, including bio-naphtha, are advancing under Natural Resources Canada’s clean fuels mandate. Globally, refiners are integrating biomass-derived components, such as used cooking oil, into conventional naphtha streams to meet sustainability goals.
Stringent environmental policies drive growth. The U.S. Renewable Fuel Standard supports bio-based blendstocks for 2026–2027, while Europe’s Green Deal promotes low-carbon chemical feedstocks. India’s National Energy Policy targets 55% renewable generation capacity by FY 2026, rising to 66% by FY 2031, creating a supportive environment for bio-refineries.
For instance, World Energy plans to expand its California facility’s throughput from 2 million gallons annually to 6 million by 2026 and 17 million by 2030. A California Energy Commission-backed project has achieved 40 million gallons per year of renewable diesel, co-producing renewable jet fuel and naphtha.
Government initiatives are pivotal. Canada’s clean fuel technology investments include bio-naphtha development, while the U.S. National Renewable Energy Laboratory reports advanced biofuels, including naphtha, contributing to bioenergy consumption growth from 1,551 TBtu in 2013 to 1,852 TBtu in 2022. The U.S. SAF Grand Challenge underscores policy support for renewable hydrocarbon streams.
Key Takeaways
- Renewable Naphtha Market size is expected to be worth around USD 1.8 billion by 2034, from USD 0.6 billion in 2024, growing at a CAGR of 11.5%.
- Light Naphtha held a dominant market position, capturing more than a 68.3% share of the global renewable naphtha market.
- Used Cooking Oil held a dominant market position, capturing more than a 43.9% share of the global renewable naphtha market.
- Fuel Blending held a dominant market position, capturing more than a 59.1% share in the global renewable naphtha market.
- Europe stood as the dominant regional market for renewable naphtha, capturing a commanding 43.2% share, equivalent to USD 0.2 billion.
How Growth is Impacting the Economy
The renewable naphtha market’s rapid expansion significantly impacts the global economy. Its growth fosters job creation in bio-refining, manufacturing, and related sectors, particularly in North America, Europe, and Asia-Pacific. Investments in production facilities, such as Diamond Green Diesel’s biorefinery in Texas, stimulate local economies through infrastructure development and supply chain enhancements.
The shift to renewable naphtha reduces reliance on fossil fuels, enhancing energy security and stabilizing economies against oil price volatility. Additionally, its use in sustainable aviation fuel and bio-plastics supports industries like aviation and packaging, driving economic diversification. However, high production costs challenge widespread adoption, necessitating subsidies and technological advancements to ensure economic viability.
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Strategies for Businesses
Businesses in the renewable naphtha market should prioritize strategic partnerships with bio-refining technology providers to enhance production efficiency. Investing in R&D for cost-effective feedstock conversion and scalable processes can bridge the cost gap with fossil-based naphtha. Companies like Neste leverage collaborations, such as with Mitsui Chemicals, to expand market reach. Expanding into emerging markets like Asia-Pacific and Latin America, where demand for sustainable products is rising, offers growth opportunities. Adopting circular economy models and securing government incentives can further strengthen market positioning, ensuring competitiveness in a sustainability-driven landscape.
Report Scope
| Market Value (2024) | USD 0.6 Billion |
| Forecast Revenue (2034) | USD 1.8 Billion |
| CAGR (2025-2034) | 11.5% |
| Segments Covered | By Product Type (Light Naphtha, Heavy Naphtha), By Feedstock (Used Cooking Oil, Wood Pulp Residue, Vegetable Oil Waste, Animal Fat, Others), By Application (Fuel Blending, Feed for H2 Production, Feed for Plastic Production, Others) |
| Competitive Landscape | Braskem, Chevron Renewable Energy Group, Clean Planet Energy, Eni SpA, EXXONMOBIL, Galp Energia, Honeywell UOP, Indian Oil Corporation Ltd, Neste Oyj, PAO NOVATEK, Preem AB, SABIC, Shell Plc, SolvChem, TotalEnergies SE |
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Key Market Segments
By Product Type
In 2024, Light Naphtha commanded a 68.3% share of the global renewable naphtha market, owing to its versatility in petrochemical production, particularly for ethylene and propylene via steam cracking, facilitated by its low boiling point and high volatility.
Its role as a blending component in cleaner gasoline is growing, especially in regions with stringent emission regulations. In 2025, Light Naphtha is poised to maintain its dominance, fueled by increased investments in green refineries and rising demand from bio-based plastic manufacturers. Its compatibility with existing infrastructure enhances its cost-effectiveness and scalability in the renewable fuel and chemical sectors.
By Feedstock
In 2024, Used Cooking Oil accounted for 43.9% of the global renewable naphtha market by feedstock, due to its abundant supply, low cost, and minimal environmental impact compared to virgin oils. As a waste-derived feedstock, it benefits from supportive renewable fuel standards and carbon credit programs in the EU and North America, while avoiding competition with food supply chains. In 2025, this segment is expected to remain dominant as waste-to-fuel initiatives expand and bio-refineries increase capacity to process used oils, bolstered by the growing adoption of circular economy practices.
By Application
In 2024, Fuel Blending captured a 59.1% share of the global renewable naphtha market by application, driven by global efforts to reduce carbon emissions through renewable content in gasoline. Its ability to lower carbon intensity without requiring changes to engines or infrastructure makes it highly practical. Blending mandates and low-carbon fuel standards in Europe, North America, and parts of Asia have boosted this segment. In 2025, demand is expected to grow as refineries integrate bio-based feedstocks and stricter emission regulations for transportation are enforced, reinforcing renewable naphtha’s role in sustainable mobility.
Regional Analysis
In 2024, Europe emerged as the leading region in the renewable naphtha market, accounting for a substantial 43.2% share, valued at approximately USD 0.2 billion. This regional dominance is primarily driven by robust environmental policies, notably the European Green Deal and the Renewable Energy Directive II (RED II), which together target a 14% share of renewable energy in the transport sector by 2030. As of 2023, renewables already comprised 24.5% of the European Union’s final energy consumption, reflecting a strong policy framework that actively promotes the adoption of renewable fuels.
Major European producers such as Neste (Finland), UPM Biofuels (Germany), and several EU-based refineries have made significant investments in bio-refinery upgrades. These developments are enabling the production of renewable hydrocarbon streams compatible with existing petrochemical infrastructure. Furthermore, the integration of advanced and waste-based feedstocks is being accelerated to meet stringent EU life-cycle greenhouse gas emission reduction targets, reinforcing the region’s leadership in the global renewable naphtha landscape.
Recent Developments
1. Braskem
- Braskem has been advancing its renewable naphtha initiatives as part of its broader bio-based chemicals strategy. The company is leveraging sugarcane-based ethanol to produce bio-naphtha, a key feedstock for green plastics. Braskem recently expanded partnerships with European refiners to supply renewable naphtha for sustainable polymer production. This aligns with its goal to achieve carbon neutrality by 2050.
2. Chevron Renewable Energy Group (REG)
- Chevron REG is scaling up renewable naphtha production through its bio-refineries, using feedstocks like used cooking oil and animal fats. The company recently announced increased output of renewable naphtha as a co-product of biodiesel and renewable diesel. Chevron REG markets it as a low-carbon feedstock for chemicals and fuels.
3. Clean Planet Energy
- Clean Planet Energy focuses on converting non-recyclable plastics into ultra-clean fuels, including renewable naphtha. Its “Clean Planet Advanced Refining” technology produces circular naphtha for chemical and fuel applications. The company recently announced new UK and EU plants to boost production.
4. Eni SpA
- Eni has integrated renewable naphtha into its Venice biorefinery, co-processing bio-feedstocks to produce bio-naphtha for plastics and chemicals. The company plans to expand production as part of its decarbonization strategy, aiming for net-zero by 2050. Eni also collaborates with Versalis for bio-based intermediates.
5. ExxonMobil
- ExxonMobil is investing in renewable naphtha through advanced biofuels and pyrolysis oil processing. The company recently partnered with Plastic Energy to produce circular naphtha from plastic waste at its French refinery. Exxon aims to supply sustainable feedstocks for chemical manufacturing.
Conclusion
The Renewable Naphtha Market is a vital component of the global shift toward sustainability, offering significant growth potential. Its economic contributions, from job creation to energy security, underscore its importance. Businesses must focus on innovation and strategic alliances to capitalize on emerging opportunities. Despite challenges like high production costs, supportive regulations, and technological advancements will drive future success.
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