Global investments in clean energy fuels are expected to reach record levels in 2025, with funding for liquid biofuels, biogases, and low-emissions hydrogen projected to rise by 30% to nearly $25 billion, according to the International Energy Agency’s (IEA) World Energy Investment 2025 report, released in June. This follows a 20% rise in 2024, reports Biomass Magazine.
The report notes that many oil refineries are beginning to branch out into cleaner energy by developing biofuel production facilities. Worldwide, production capacity for biojet fuel and renewable diesel grew by 25% in 2024 and is projected to rise another 40% in 2025, reaching 800,000 barrels per day. The United States is expected to contribute to half of this growth.
Despite the optimistic outlook, the IEA cautions that progress in low-emission fuel development still depends largely on government policies and regulatory support.
Bioenergy investments are also on the rise and are forecasted to climb 13% in 2025, reaching a new high of $16 billion, even though growth in new liquid biofuel projects may slow slightly. In 2024, bioenergy investments grew by 10%.
About half of all bioenergy investments are directed toward liquid biofuels, with the United States and Brazil leading the way. Meanwhile, investment in biogases is expected to increase sharply by 60%, particularly in Europe.
On the other hand, not all clean fuel sectors are seeing gains. The IEA notes that investment in bioplastics declined by nearly 33% in 2024, dropping to just over $1 billion.
The full report is available on the IEA’s official website.
