Co-Refining Market is expected to Grow with a CAGR of 3.55% through 2030
The Co-Refining Market is
driven by the growing need to reduce carbon emissions, optimize existing
refinery infrastructure, and meet rising demand for low-carbon fuels in
transportation and industrial sectors.
According to TechSci Research
report, “Co-Refining Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2030F”, the Co-Refining Market was valued at USD 20.64 Billion in 2024 and is expected to reach USD 25.67 Billion by 2030 with a CAGR of 3.55%. The Co-Refining Market is gaining strong
momentum, primarily driven by the global shift toward low-carbon energy
solutions and increasing emphasis on sustainable fuel production. As countries
and industries work to meet ambitious climate goals and reduce greenhouse gas
emissions, co-refining has emerged as a highly attractive and practical
solution that allows the integration of renewable feedstocks such as used
cooking oil, animal fats, and vegetable oils into existing petroleum refining
infrastructure.
This integration not only
reduces carbon intensity but also leverages the existing refining capacity,
making it a cost-effective and scalable approach for producing renewable
diesel, sustainable aviation fuel (SAF), and other low-emission fuels. The growing
demand for cleaner alternatives in transportation, especially in hard-to-abate
sectors like aviation and heavy-duty transport, is further accelerating the
adoption of co-refining processes. Governments worldwide are implementing
supportive regulations, mandates, and incentives such as renewable fuel
standards, blending quotas, and tax credits to encourage the production and
consumption of bio-based fuels. These policy measures are compelling refineries
to invest in co-refining capabilities rather than building entirely new
renewable fuel facilities, which are often more capital intensive and
time-consuming.
Additionally, the increasing
availability of renewable feedstocks and advancements in pre-treatment
technologies are making co-refining more efficient and flexible, allowing a
broader range of feedstock types to be utilized without compromising product quality
or refinery performance. Another key driver is the rising pressure on oil
companies to diversify their portfolios and demonstrate environmental
responsibility. Co-refining offers a transitional strategy that aligns with
both energy security and sustainability goals by enabling traditional
refineries to incrementally shift toward bio-based operations without
significant structural changes. As the lifecycle emissions of renewable fuels
continue to be scrutinized, co-refining stands out for its lower carbon
footprint compared to conventional fossil-based processes.
Furthermore, the
compatibility of co-refined products with existing fuel infrastructure, such as
pipelines, engines, and distribution systems, enhances their commercial
viability and market acceptance. The increased focus on circular economy
principles is also driving interest in co-refining, as it enables the
valorization of waste materials and supports closed-loop resource utilization.
In addition, emerging markets and developing economies are exploring
co-refining to meet both energy needs and environmental commitments without
overhauling existing infrastructure.
The alignment of co-refining
with international sustainability frameworks and carbon reduction strategies is
attracting investment from both public and private sectors, further reinforcing
its market growth. With the oil and gas industry facing growing pressure to
decarbonize while maintaining profitability, co-refining presents a unique
opportunity to bridge the gap between conventional and renewable energy
systems. As innovation continues to improve feedstock flexibility, processing
efficiency, and emissions performance, co-refining is expected to play a
crucial role in the transition to a more sustainable and resilient global
energy mix.
Browse over XX Market data
Figures spread through XX Pages and an in-depth TOC on the "Global Co-Refining Market.”
Based on the End-User
Industry, Petroleum Refining segment held the largest Market share in 2024. The
Co-Refining Market in the petroleum refining segment is experiencing strong
growth momentum, driven by the global shift toward low-carbon fuels and the
integration of renewable feedstocks into conventional refining infrastructure.
As environmental regulations become increasingly stringent, particularly around
carbon emissions and fuel standards, petroleum refiners are under mounting
pressure to decarbonize operations and diversify energy outputs.
Co-refining presents a
cost-effective and scalable solution by allowing refiners to blend bio-based
feedstocks such as vegetable oils, animal fats, or used cooking oils directly
with fossil-based feedstock in existing refinery units. This approach not only
reduces greenhouse gas emissions but also extends the utility of existing
refining assets, enabling companies to meet evolving regulatory requirements
without incurring the capital-intensive costs of building entirely new
biorefineries. The petroleum refining segment, which has well-established
supply chains, infrastructure, and process expertise, is well-positioned to
leverage co-refining technologies to produce renewable diesel, sustainable
aviation fuel (SAF), and other low-carbon fuels.
Additionally, government
incentives, renewable fuel mandates, and emission trading schemes are further
accelerating adoption, especially in regions where policies support the
blending of renewables into transportation fuel streams. The flexibility of co-refining
to accommodate a variety of feedstocks and its compatibility with hydrotreating
and fluid catalytic cracking units are critical technical advantages that
support integration without significant process disruption. Moreover, refiners
benefit from the ability to incrementally scale renewable content, giving them
the agility to adapt to market demands, regulatory targets, and feedstock
availability.
The increasing consumer and
stakeholder demand for sustainable energy solutions is also influencing the
refining industry to innovate and transition toward cleaner production
pathways, with co-refining offering an immediate and economically viable strategy.
Furthermore, the rising focus on circular economy models is promoting the use
of waste-derived feedstocks, which aligns with co-refining processes and
enhances the overall sustainability profile of petroleum-derived fuels.
Strategic partnerships between traditional oil companies and renewable energy
providers are also contributing to advancements in co-refining capabilities,
ensuring long-term commercial viability.
As the global energy mix
evolves, the petroleum refining segment is increasingly recognizing co-refining
as a transitional technology that bridges the gap between fossil-based and
fully renewable fuels. It not only enables refiners to maintain operational
continuity and market relevance but also supports broader national and
international climate goals. The technological maturity of co-refining,
combined with its ability to improve carbon intensity metrics while utilizing
existing assets, makes it a compelling driver in the ongoing transformation of
the downstream petroleum sector. As a result, co-refining is expected to play a
critical role in shaping the future of the refining industry by aligning
profitability with sustainability in the face of dynamic energy transitions and
evolving consumer expectations.
Based on the region, Asia
Pacific is the fastest growing region in the Co-Refining Market, driven by
increasing energy demand, rapid industrialization, and strong governmental
support for low-carbon fuel initiatives. Countries such as China, India, Japan,
and South Korea are investing heavily in renewable energy and sustainable fuel
alternatives to meet emission reduction targets and energy security goals. The
region's large refining capacity, availability of bio-based feedstocks, and
growing transportation and aviation sectors further support the adoption of
co-refining processes. Additionally, regional collaboration, technological
advancements, and policy incentives are accelerating the integration of
renewable feedstocks into existing refinery operations across Asia Pacific.
Major companies operating in
the Global Co-Refining Market are:
- Neste Oyj
- TotalEnergies SE
- Shell plc
- Chevron Corporation
- ExxonMobil Corporation
- Repsol S.A.
- BP p.l.c.
- ENI S.p.A.
- Valero Energy Corporation
- Preem AB
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“The Global Co-Refining
Market is expected to rise in the upcoming years and register a significant
CAGR during the forecast period. The Co-Refining Market presents strong
business potential as the energy sector increasingly prioritizes cleaner fuel
alternatives and emission reduction strategies. By incorporating renewable
feedstocks such as bio-oils and waste-derived fats into existing refining
operations, companies can produce low-carbon fuels in a cost-efficient manner
without significant capital investment. This enables refiners to align with
evolving environmental regulations and carbon reduction targets while
maintaining process continuity. The growing demand for sustainable aviation
fuel, renewable diesel, and circular economy integration further enhances
market viability. Co-refining also offers a pragmatic, scalable transition
model for traditional oil refiners to diversify into renewable energy solutions.
Therefore, the Market of Co-Refining is expected to boost in the upcoming
years”, said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based global management consulting firm.
“Co-Refining
Market - Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented, By Technology (Hydrotreating, Hydrocracking, Distillation), By
Feedstock Type (Crude Oil, Vegetable Oils, Waste Oils, Plastic Waste), By
End-User Industry (Petroleum Refining, Biodiesel Production, Chemical
Manufacturing), By Process Type (Batch Processing, Continuous Processing), By
Region & Competition, 2020-2030F”, has evaluated the future growth potential of Global Co-Refining
Market and provides statistics & information on the Market size, structure,
and future Market growth. The report intends to provide cutting-edge Market
intelligence and help decision-makers make sound investment decisions., The
report also identifies and analyzes the emerging trends along with essential
drivers, challenges, and opportunities in the Global Co-Refining Market.
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