The International Energy Agency in June published its World Energy Investment 2025 report, predicting that investment in liquid biofuels, biogases and low-emissions hydrogen will increase 30% this year to a record high of nearly $25 billion. Investment was up an estimated 20% in 2024.
According to the report, many oil refineries are diversifying their businesses by investing in biofuel production facilities. Globally, biojet and renewable diesel capacity was up 25% last year and is set to increase another 40% in 2025 to 800,000 barrels per day. The U.S. accounts for half of that growth.
The IEA currently predicts investments in low-emission fuels will set a new record in 2025, but cautions that these projects remain heavily dependent on policy and regulatory support.
Investments in bioenergy are expected to increase 13% in 2025, reaching a record high $16 billion despite a slight slowdown in new capacity additions for liquid biofuels. Bioenergy investments were up 10% last year.
According to IEA, about half of the investment in bioenergy is for liquid biofuels, with most of that growth centered in the U.S. and Brazil. Investment in biogases is expected to increase by 60%, primarily in Europe.
While investments in most forms of bioenergy are growing, investment in bioplastics is down. The IEA estimates bioplastic investments fell by nearly 33% last year, to just over $1 billion.
A full copy of the report is available on the IEA website.
