Under mounting pressure to decarbonize and move away from traditional fossil fuels, major oil and gas companies are increasing their investments in biofuels. Industry giants such as BP, Chevron, Shell, TotalEnergies, ExxonMobil, and Eni are integrating biofuels into their energy transition strategies, responding to the global demand for sustainable fuel sources. Research from Rystad Energy reveals that these companies have announced 43 biofuel projects, either operational or planned to start by 2030. These projects focus mainly on hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), which together are expected to account for nearly 90% of the biofuel production.
These investments aim to add 286,000 barrels per day (bpd) of production capacity, with 31 of the projects being greenfield developments. Six projects involve co-processing, where bio feedstock is integrated into existing oil refineries to create a blended feedstock. Another six are full refinery conversions dedicated exclusively to biofuel production. Co-processing is seen as a cost-effective approach, allowing companies to utilize their existing infrastructure and reduce initial investments.
As part of their strategy, supermajors are focusing on HVO and SAF, recognizing their potential as low-carbon fuels that can be quickly integrated into existing aviation, transport, and marine fuel systems. With increasing regulatory pressure, including Europe’s ‘ReFuel EU’ initiative and expanding mandates in Asia Pacific, biofuels are becoming an essential part of decarbonization efforts. The 43 biofuel projects announced by these oil majors signal a strong shift in the industry.
One notable development is Chevron’s Geismar project, the largest of the greenfield initiatives, which is set to produce 22,000 bpd of biofuel. Chevron’s El Segundo refinery, the largest in co-processing capacity, also converted a diesel hydrotreating unit last year into a renewable facility producing 10,000 bpd. BP’s Kwinana project, which involves the largest refinery conversion, is expected to produce 50,000 bpd of HVO and SAF by 2030, significantly boosting biofuel production capacity.
Among the oil majors, BP stands out with the largest announced production capacity. BP’s pipeline includes 130,000 bpd of ethanol and HVO/SAF capacity, positioning the company as a leader in the bioenergy sector. Chevron, Eni, Shell, TotalEnergies, and ExxonMobil are also making progress, especially in the advanced biofuels sector, though many of their projects are still in development.
BP’s acquisition of Bunge Bioenergia, a top Brazilian biofuel producer, has boosted its production capacity to about 66,000 bpd, surpassing its 2025 target of 50,000 bpd. This puts BP on track to reach its 100,000 bpd goal by 2030. Chevron’s purchase of Renewable Energy Group and Eni’s advanced biofuel capacity of 22,000 bpd further strengthen their positions in the biofuels market.
TotalEnergies is pushing aggressive biofuel targets, aiming for 75% of its biofuel production to come from waste biomass by the end of 2024. The French company plans to use food industry by-products, like used oils and animal fats, to avoid land-use conflicts. Meanwhile, ExxonMobil is preparing to start biofuel production at its Strathcona Refinery next year, with an initial capacity of 20,000 bpd. ExxonMobil also plans to launch 12 additional biofuel projects, aiming for 200,000 bpd by 2030.
As oil companies transition to lower-carbon energy, advanced biofuels like HVO and SAF are taking center stage. With growing demand from aviation and heavy transport, companies are scaling up production to meet this demand. Despite some delays, investments in biofuels are rising, as 2030 decarbonization targets approach and the market for fossil-fuel alternatives continues to expand.
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