GlobalData: North America to dominate global renewable refinery capacity additions through 2028
Global consumption of renewable fuels produced in refineries is increasing due to environmental concerns about fossil fuels, technological advances and growing regulations on carbon emissions. As a result, global renewable refinery capacity additions are growing rapidly, with North America expected to drive the capacity additions among all the regions globally, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Renewable refineries capacity and capital expenditure outlook by region, countries, companies, projects and forecast to 2028,” reveals that North America is likely to add a renewable refinery capacity additions of 10,659 MMgal/yr during 2024–2028, followed by Europe and Asia with 3,053 MMgal/yr and 2,818 MMgal/yr respectively.
Bhargavi Gandham, oil and gas analyst at GlobalData, comments: “With several countries focusing on net-zero emissions, the demand for renewable fuels such as sustainable aviation fuel (SAF) and renewable diesel is growing rapidly. This rising demand is leading to significant capacity expansions, particularly in North America, Asia, and Europe.”
The US is expected to witness the highest renewable refinery production capacity additions in North America as well as globally. The country is expected to add 8,989 MMgal/yr capacity by 2028 from several planned and announced projects.
Panama, Canada and China are the other key countries that are expected to add considerable renewable refinery production with 1,733 MMgal/yr, 1,671 MMgal/yr, and 1,191 MMgal/yr of capacity additions by 2028, respectively.
Gandham concludes: “Global renewable refinery capacity additions are mainly expected to occur through standalone renewable refineries (67%) during the outlook period. Capacity additions from refinery co-processing and refinery conversion will account for 22% and 11%, respectively during 2024–2028.”
Comments