Wilmington, Delaware, United States, Transparency Market Research, Inc., July 18, 2024 (GLOBE NEWSWIRE) -- The global co-refining market (공동정제 시장) stood at US$ 39.7 billion in 2023, and the global market is projected to reach US$ 73 billion in 2034. The Co-refining market is anticipated to expand at a CAGR of 6% between 2024 and 2034.
The co-refining market is experiencing significant growth driven by the global transition towards a low-carbon economy and the increasing adoption of biofuels. Co-refining involves integrating renewable feedstocks, such as vegetable oils and animal fats, with traditional petroleum refining processes to produce cleaner fuels. This approach not only reduces greenhouse gas emissions but also enhances energy security by diversifying fuel sources.
One of the primary factors augmenting the co-refining market is the heightened focus on environmental sustainability. Governments worldwide are implementing stringent regulations to curb carbon emissions, compelling the energy sector to innovate and adopt greener technologies. Co-refining presents a viable solution as it allows existing refineries to utilize renewable feedstocks without major infrastructure changes, thus facilitating a smoother transition to sustainable fuel production.
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The rise in biofuel adoption is another key driver of the co-refining market. Biofuels, derived from organic materials, are considered renewable and have a lower carbon footprint compared to fossil fuels. The integration of biofuels into the refining process helps in producing fuels that comply with renewable fuel standards and carbon reduction targets. This trend is particularly prominent in regions such as North America and Europe, where robust regulatory frameworks and financial incentives are in place to promote the use of renewable energy.
Technological advancements are also playing a crucial role in the market's expansion. Innovations in refining technologies and catalyst development are enhancing the efficiency and yield of co-refining processes. Companies are investing in research and development to improve the compatibility of various feedstocks with existing refinery operations, further driving market growth.
Key Takeaways of Market Report
- Global co-refining market to generate absolute dollar opportunity worth US$ 73 billion until 2034.
- Global co-refining market is valued at US$ 39.7 billion in 2023.
- Europe is forecasted to hold the largest share in 2023.
Co-refining Market: Growth Drivers
- Fossil refineries, numbering 825 globally as of 2023, are crucial for producing transport fuels and other products from crude oil. These large industrial complexes possess advanced infrastructure for fuel and base chemical production.
- However, oil demand, primarily driven by road transport, is expected to peak before 2030 due to the increasing adoption of electric vehicles (EVs). This anticipated decline in oil demand is prompting the industry to explore alternative and sustainable fuel options.
- Co-refining biomass-derived feedstock with petroleum fractions is emerging as a compelling strategy for producing biofuels. The well-established infrastructure of petroleum refineries makes them suitable for integrating renewable feedstocks, offering a seamless transition to greener fuel production.
- The rising adoption of biofuels, driven by environmental regulations and the need for sustainable energy solutions, is significantly contributing to the growth of the co-refining market. This trend aligns with the global shift towards reducing carbon emissions and enhancing energy security.
Market Introduction :
Biofuels are expected to play an important role in reducing the dependence on fossil fuels and related greenhouse-gases emissions. Incorporating bio-derived sources into the already existing petroleum refineries has gained growing interest in present times due to the increasing unpredictability of oil prices, environmental concerns and the necessity to secure an energy supply.
Looking at this as an advantage, co-processing of biomass-derived feedstock with petroleum fractions is an attractive option, which has already been industrially demonstrated in some cases. Co-processing of biomass feedstock with petroleum fractions can be done through two main technologies, the first one being catalytic hydroprocessing and the second one being fluid catalytic cracking (FCC). Both these technologies already exist in majority of the petroleum refineries.
Through co-processing, innovative and sustainable fuels can be produced, such as Sustainable Aviation Fuel (SAF) from used cooking oil, and renewable diesel from liquid biomass, which includes waste-based and advanced feedstock such as used cooking oil and liquid from nut shells.
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Co-refining Market: Regional Landscape
- In 2023, Europe held the largest share in the co-refining market. This growth is driven by the urgent need to scale up biofuel production to meet climate mitigation targets for the transport sector. The region's commitment to reducing carbon emissions is fueling the adoption of co-refining technologies, positioning Europe as a leader in the transition to sustainable energy solutions.
- The surge in investment in CCS is also propelling the co-refining market in Europe. A notable development in 2023 was the announcement by SINTEF of the Horizon Europe project COREu, the largest Research and Innovation project in CCS ever funded by a European program. This initiative underscores Europe's dedication to advancing carbon capture technologies, further enhancing the region's co-refining market share and contributing to its climate goals.
Co-refining Market: Key Players
- In 2023, Bharat Petroleum Corporation Limited (BPCL) made significant strides in the co-refining market by launching a pilot project to integrate biomass-derived feedstocks with conventional petroleum refining processes. This initiative aims to produce biofuels on a commercial scale, leveraging BPCL's existing refinery infrastructure.
- In 2023, China National Petroleum Corporation (CNPC) advanced its position in the co-refining market by initiating a large-scale co-refining project focused on processing waste cooking oil alongside traditional crude oil.
Co-refining Market: Segmentation
By Feedstock Type
- Crude Oil Co-refining
- Biomass Co-refining
- Waste Plastic Co-refining
- Renewable Feedstock Co-refining
By Processes
- Hydroprocessing
- Catalytic Cracking
- Fluid Catalytic Cracking (FCC)
- Hydrotreating
- Hydrocracking
- Others
By Product
- Fame Biodiesel
- Bioethanol
- Hydrogenated Vegetable Oil (HVO)
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
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