The global biofuels market was valued at US$64.06 billion in 2024 and is anticipated to reach US$106.02 billion in 2034. Despite previous dips, the outlook for the biofuels industry and US biofuel stocks is positive.
The driving forces behind rising demand for biofuels include the goal of reducing the carbon footprint of transport industries, as well as factors such as a growing need for alternatives to foreign oil and enhanced cost-competitiveness and efficiency of biofuel production technology.
The US is the largest biofuels-producing country in the world by far.
‘Capacity at U.S. producers of renewable diesel and other biofuels totaled 4.3 billion gal/y in January 2024, 1.3 billion gallons more per year than in 2023. Fuel ethanol—primarily produced from corn kernel starch and blended with gasoline—accounts for most of U.S. biofuels production capacity,’ states the US Energy Information Administration.
Not surprisingly, the corn field state of Iowa is by far the leader in biofuels production in the nation, followed by agricultural powerhouses Nebraska and Illinois.
For investors interested in the biofuel industry, here are the 6 top US biofuels stocks by market cap. All figures are from TradingView’s stock screener and were current as of market close on March 5, 2025. Read on to learn more about these biofuels companies and their operations.
1. REX American Resources (NYSE:REX)
Market cap: US$644.36 million
REX American Resources has interests in six ethanol production facilities that together have the capacity to produce 730 million gallons of ethanol. The company is the majority owner of two of these facilities, One Earth Energy in Illinois and NuGen Energy in South Dakota, which combine for capacity of 300 million gallons. It is also a minority owner of holding company Big River Resources, which has four production plants across Iowa, Illinois and Wisconsin.
REX is advancing its expansion campaign at its ethanol production facility at the One Earth Energy facility, which will increase annual ethanol production capacity from 150 million gallons to 175 million gallons. The company expects to complete the expansion in mid-2025. REX is also planning to obtain permits to further expand the facility to an annual production capacity of 200 million gallons.
2. Montauk Renewables (NASDAQ:MNTK)
Market cap: US$444.44 million
Montauk Renewables is a US renewable energy company specializing in the recovery and conversion of biogas derived from landfill methane into renewable natural gas (RNG) or electrical power for the electrical grid. The company has 14 operating projects and ongoing development projects located in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina and Texas.
For its fiscal year 2024, Montauk’s RNG revenues are expected to come in at between US$175 million and US$185 million, while its renewable electricity revenues are expected to be between US$17 million and US$18 million. Its full year results will be available in mid-March.
3. OPAL Fuels (NASDAQ:OPAL)
Market cap: US$407.88 million
OPAL Fuels is another renewable energy company that specializes in capturing and converting biogas into RNG. The company’s fully integrated vertical waste-to-energy model takes biogas from landfills and dairies to create fuel for use in heavy- and medium-duty trucking fleets, as well as renewable power for sale to utilities.
In late February 2025, the company announced a series of 50/50 joint venture partnerships to develop four new landfill RNG production projects. OPAL’s share represents 1.5 million MMBtu of aggregate annual design capacity.
4. Gevo (NASDAQ:GEVO)
Market cap: US$316.02 million
Gevo is a renewable chemicals and next-generation biofuels company with headquarters in Colorado. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Minnesota. Over in Texas, it operates a biorefinery that converts alcohols into products ranging from renewable jet fuel to octane and even ingredients for plastics.
Gevo owns and operates one of the largest dairy-based RNG facilities in the United States and operates an ethanol plant with an adjacent carbon capture and sequestration facility.
In February 2025, Gevo announced a partnership with French energy company Axens “to accelerate development and commercialization of sustainable aviation fuel (SAF) using the ethanol-to-jet (ETJ) pathway.” Gevo is currently developing the world’s first ethanol-to-jet SAF commercial production facility, Net-Zero 1, which will be located in South Dakota.
5. FutureFuel (NYSE:FF)
Market cap: US$186.87 million
FutureFuel is a developer and producer of diversified chemical products, specialty organic chemicals, premium biodiesel and other biofuels, such as ethanol and biomass solids. FutureFuel launched its biofuels product platform in 2005 and now has a biodiesel production capacity of 60 million gallons per year.
FutureFuels announced a quarterly dividend program for 2025 that will distribute cash dividends of US$0.06 per share, with the first payment of the year on March 18.
6. Verde Clean Fuels (NASDAQ:VGAS)
Market cap: US$118.58 million
Verde Clean Fuels is a renewable gasoline technology company with projects under development in North America. The company converts biomass feedstocks such as agricultural byproducts into renewable, low-carbon gasoline compatible with standard car engines and refueling stations.
In the past two years, Cottonmouth Ventures LLC, a wholly owned subsidiary of Diamondback Energy (NASDAQ:FANG), has made US$70 million in investments into Verde Clean Fuels, indirectly making the multibillion dollar Texas-based oil and gas company the second largest shareholder of Verde. The most recent came in January 2025.
The two companies are collaborating on developing and constructing natural-gas-to-gasoline plants that will use Verde’s technology to convert natural gas from Diamondback’s Permian Basin operations.
FAQs for biofuel stocks
What is biofuel?
Biofuel is a type of renewable energy derived from living material known as biomass. Biomass includes algae, as well as plant and animal waste, and examples of biofuels are ethanol, biodiesel, green diesel and biogas. Biofuels can be solid, liquid or gaseous.
How are biofuels produced?
Depending on the type of biomass being used, biofuels can be produced in a variety ways.
The typical processes include chemical reactions, dry milling, fermentation and heat to break down starches, sugars and other molecules. The resulting products are then refined to produce the end-product fuel.
What is ethanol made of?
Ethanol can be produced from corn, as is common in the US. In Brazil, ethanol is produced from sugarcane.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.