10 Best Biofuel Stocks to Invest in Today

Biofuel investment represents a strategic opportunity in today’s rapidly evolving energy landscape. As the world transitions toward renewable energy sources and sustainable solutions, biofuel stocks offer both environmental impact and significant growth potential. This industry sits at the intersection of traditional energy infrastructure and cutting-edge sustainability, creating a unique proposition for impact investors seeking to align their portfolios with a greener future.

The biofuel sector continues to gain momentum as governments worldwide implement supportive policies for clean and renewable energy. From biodiesel and ethanol to innovative sustainable aviation fuel (SAF) and renewable natural gas (RNG), companies are developing revolutionary technologies that reduce carbon emissions while leveraging existing infrastructure.

If you’re interested in investing in biofuel stocks, thorough research into biofuel developers is essential before making investment decisions. Understanding the various technologies, feedstocks, and production processes will help you identify the most promising opportunities in this evolving market.

The current political climate makes it a perfect time to invest in biofuel stocks. Government support for public biofuel companies continues to grow, and leading biofuel producers are finally achieving consistent profitability and sustainable shareholder returns. Timing remains crucial in investment decisions, and successful biofuel companies have now reached commercial viability.

With biofuel developers constantly innovating and manufacturing plants improving their output efficiency, there has never been a better time to invest in biofuel stocks. We’ve compiled a list of the best biofuel stocks to consider in 2025, focusing on companies that are leading the renewable fuel revolution.

Our Selection Criteria

The biofuel industry features numerous public companies offering investment opportunities. We’ve analyzed over 30 top biofuel companies and refined our list to present the strongest performers. Each biofuel stock on our list demonstrates positive growth over at least the past 12 months, showing resilience and market confidence.

We’ve focused exclusively on companies with a 50% or greater commitment to biofuels rather than broader green or clean energy initiatives. This ensures a targeted investment approach in the biofuel production sector. When considering biofuel stocks to invest in, remember that all investments carry inherent risk. Our selected biofuel stocks have generated substantial returns based on their most recent financial reports and demonstrate strong potential for continued growth.

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Our Top Picks for the Best Biofuel Stocks in 2025

Darling Ingredients – DAR

Darling Ingredients represents a leader in the circular economy, transforming waste materials into valuable renewable fuels. This veteran company collects used cooking oil, animal fats, and food waste and converts these materials into low-carbon fuel feedstocks. Through its Diamond Green Diesel joint venture with Valero Energy, Darling has established itself as North America’s largest producer of renewable diesel, expanding from 160 million gallons in 2013 to an impressive 1.2 billion gallons of annual capacity today.

Darling’s competitive advantage lies in its vertically integrated supply chain, controlling the rendering plants that supply waste oils for fuel production. This integration makes Diamond Green Diesel uniquely positioned in the market and ensures reliable feedstock supply for its operations. The joint venture has recently entered the sustainable aviation fuel (SAF) market, with its Port Arthur, TX facility now capable of converting approximately 50% of its 470-million-gallon output to SAF, establishing Darling as one of the world’s leading SAF producers.

For ESG investors, Darling Ingredients offers an exceptional opportunity—delivering financial growth while simultaneously reducing waste and carbon emissions. As global low-carbon fuel standards drive increasing demand, Darling is strategically positioned for long-term success in sustainable fuel production.

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Green Plains – GPRE

Green Plains Inc. (GPRE) stands among America’s largest ethanol producers, but the company has evolved well beyond traditional ethanol production. Undergoing an ambitious transformation, Green Plains is leveraging advanced technology to transition from a commodity fuel producer into a diversified biorefinery powerhouse. The company operates 11 biorefineries producing low-carbon ethanol for gasoline blending while investing significantly in sustainability enhancements and value-added processes.

A key element of Green Plains’ strategy involves implementing carbon capture systems across its production facilities, with plans to sequester 800,000 tons of CO₂ annually by 2025. This initiative substantially reduces the carbon intensity of their fuel products, making them eligible for premium pricing in low-carbon fuel markets.

Green Plains’ innovation extends beyond cleaner fuel production. The company extracts high-protein feed ingredients and renewable corn oil from the same corn inputs, creating additional revenue streams. They’ve also developed “Clean Sugar” technology to produce low-carbon dextrose for bioplastics and synthetic biology applications. This technological approach has attracted strategic partnerships, including joint ventures with agricultural giant Archer-Daniels-Midland, positioning Green Plains to supply feedstock for the growing sustainable aviation fuel (SAF) market.

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Montauk Renewables – MNTK

Montauk Renewables literally transforms waste into clean energy. This Pittsburgh-based company specializes in capturing biogas from landfills, preventing potent methane emissions from entering the atmosphere while converting this gas into valuable renewable natural gas (RNG). Montauk operates 14 projects across the United States, where they collect landfill methane and process it into RNG for vehicle fuel and electricity generation.

The company’s business model creates environmental and economic benefits simultaneously—generating revenue while providing a low-carbon fuel alternative to fossil natural gas. For 2024, Montauk projects approximately $175-$185 million in RNG revenue, plus additional income from renewable power generation, demonstrating the substantial value that can be extracted from waste resources.

Beyond its steady cash flow from existing operations, Montauk has significant growth potential as more states and corporations adopt RNG to meet climate goals. The company is developing new sites, including a major project in Tulsa, and exploring innovative technologies like converting methane into “green” methanol. From an environmental perspective, Montauk’s impact is substantial—each unit of RNG produced replaces fossil fuel while eliminating methane, a greenhouse gas 25 times more potent than CO₂.

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Gevo – GEVO

Gevo represents a next-generation biofuel innovator focused on decarbonizing aviation and other transportation sectors. This Colorado-based company has developed proprietary technology to produce sustainable aviation fuel (SAF) and other renewable fuels from alcohols. At their Minnesota fermentation facility, Gevo produces isobutanol, ethanol, and high-protein animal feed as complementary products.

Gevo’s technology allows them to convert alcohols into renewable jet fuel, gasoline components, and plastic raw materials at their Texas biorefinery. This comprehensive capability—from fermenting grain to producing drop-in hydrocarbon fuels—gives Gevo a distinctive technological advantage in the biofuel sector.

2025 is proving to be a pivotal year for Gevo, as the company has partnered with French energy firm Axens to accelerate the commercialization of its ethanol-to-jet SAF pathway. Their “Net-Zero 1” facility in South Dakota aims to be the world’s first commercial ethanol-to-jet fuel plant, converting corn ethanol into jet fuel with a net-zero carbon footprint. Gevo has secured significant long-term supply agreements totaling hundreds of millions of gallons of SAF with major airlines, including Delta and oneworld Alliance members.

Additionally, Gevo operates one of America’s largest dairy manure RNG facilities, demonstrating their versatility in renewable gas production. For patient investors, Gevo presents an exciting growth story—a pioneering company at the forefront of SAF technology, supported by major offtake agreements and positioned to transform aviation fuel with cleaner alternatives.

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REX American Resources – REX

REX American Resources represents a quiet success story in the ethanol industry. This holding company maintains strategic ownership stakes in six ethanol production facilities across the Midwest, with combined capacity of 730 million gallons annually. REX holds majority ownership in two key plants—One Earth Energy in Illinois and NuGen Energy in South Dakota—which together produce 300 million gallons of ethanol each year.

REX’s approach of partnering in multiple production facilities allows the company to benefit from economies of scale and geographic diversity in corn sourcing, enhancing operational resilience. What makes REX particularly attractive now is its growth trajectory—the company is investing in capacity expansion at its flagship One Earth Energy facility, increasing production from 150 million to 175 million gallons per year by mid-2025, with permits underway for further expansion to 200 million gallons annually.

Strategically, REX’s facilities are located in regions that could capitalize on carbon capture initiatives or low-carbon fuel programs, potentially commanding premium prices for their ethanol products in the future. For ESG-focused investors, REX American offers exposure to ethanol’s stable demand for gasoline blending and industrial applications, backed by a low-debt, well-managed business model. As the United States moves toward higher biofuel blending targets and increased sustainable aviation fuel utilization, REX is well-positioned to capitalize on these trends with its expanded production capacity.

Aemetis, Inc. – AMTX

California-based Aemetis stands out as a renewable fuels company with ambitious goals and substantial contracts to support them. While currently producing ethanol at its Keyes, CA facility and biodiesel in India, Aemetis’ future is focused on sustainable aviation fuel (SAF) and renewable diesel production. The company is developing an advanced biorefinery in Riverbank, CA that will convert waste orchard wood and non-edible oils into jet and diesel fuel with negative carbon intensity ratings.

Impressively, Aemetis has secured $7 billion in supply contracts for its future SAF and renewable diesel output, including agreements with 10 major airlines totaling 916 million gallons of fuel over periods up to 10 years. Their airline customers include major carriers like Delta, JetBlue, Cathay Pacific, and Japan Airlines, all seeking to secure Aemetis’ ultra-low-carbon fuels for their long-term sustainability goals.

Aemetis’ process integrates renewable hydrogen production and carbon sequestration to achieve dramatic emissions reductions—up to 100% reduction in lifecycle greenhouse gas emissions when using waste feedstocks and renewable energy. Beyond aviation, the company is expanding its network of dairy biogas digesters in California, capturing methane from farms to produce renewable natural gas (RNG) for its facilities and as transport fuel. In 2024, Aemetis expanded from 9 to 12 operational dairy digesters and is constructing a centralized biogas pipeline infrastructure.

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OPAL Fuels Inc. – OPAL

OPAL Fuels operates at the intersection of waste-to-energy and transportation, specializing in renewable natural gas (RNG) production and distribution. The company takes biogas from landfills and dairy farms, refines it into RNG, and delivers it as fuel for commercial truck and bus fleets. OPAL’s vertically integrated business model encompasses the entire value chain—from capturing raw biogas to dispensing RNG at its fueling stations for fleet customers.

With diesel prices fluctuating and emissions regulations becoming stricter, OPAL offers a compelling solution—fleets can reduce fuel costs and dramatically cut emissions by switching their heavy-duty vehicles to RNG, without compromising performance or requiring new engine technology.

Growth remains a central focus for OPAL Fuels. In early 2025, the company announced joint ventures to develop four new RNG production projects at landfill sites, adding approximately 1.5 million MMBtu of annual capacity to its portfolio. OPAL is also rapidly expanding its fueling infrastructure network and recently secured a major deal to supply 60 million gallons of RNG to a leading freight trucking company under a long-term agreement.

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FutureFuel Corp. – FF

Unlike many newer entrants in the biofuel space, FutureFuel is an established operator with over a decade of experience in renewable fuel production. Based in Arkansas, FutureFuel produces both specialty chemicals and biofuels, particularly biodiesel and blended fuel products. The company established its biofuels division in 2005 and currently maintains capacity to produce 60 million gallons of biodiesel annually at its Arkansas facility.

FutureFuel manufactures biodiesel from renewable resources like vegetable oils, creating a direct substitute for conventional diesel fuel. The company’s established production capabilities and customer relationships provide financial stability uncommon among smaller renewable energy companies—FutureFuel generates sufficient profits to support a quarterly dividend, currently paying shareholders $0.06 per share each quarter.

What distinguishes FutureFuel is its operational stability and diversified revenue streams. While benefiting from renewable fuel standards that drive biodiesel demand, the company also generates income from its specialty chemicals business, producing performance chemicals and intermediates for various industries. This balanced approach has helped FutureFuel navigate fluctuations in biofuel margins over the years. After completing maintenance activities, FutureFuel recently restarted its biodiesel production at full capacity to fulfill growing customer orders.

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Clean Energy Fuels – CLNE

Clean Energy Fuels stands as the largest provider of renewable natural gas (RNG) fuel for transportation in the United States, fueling fleet vehicles across the country. The company’s distinctive green fueling stations supply RNG derived from landfill gas and dairy waste to thousands of vehicles, including city buses, garbage trucks, semi-trucks, and airport shuttles.

Clean Energy’s core mission aligns perfectly with its name—to decarbonize transportation by delivering RNG produced from organic waste, a fuel that can reduce lifecycle emissions by over 70% compared to diesel. The company operates an extensive network exceeding 540 fueling stations throughout North America, making the transition to cleaner fuel accessible and convenient for commercial fleets. Major customers including UPS, Republic Services, and numerous transit agencies depend on Clean Energy for their RNG and compressed natural gas needs.

What makes Clean Energy particularly attractive for impact investors is its roster of strategic partners. Global energy leader TotalEnergies holds a significant ownership stake, and Amazon has arranged an option to acquire up to 20% of Clean Energy—a strong vote of confidence in RNG as a trucking solution. Under this agreement, Amazon’s freight vehicles will fuel at Clean Energy stations, with Amazon gaining equity as fuel volume increases, creating aligned incentives between both companies.

Verde Clean Fuels – VGAS

Completing our list is an innovative small-cap company with potentially transformative technology: Verde Clean Fuels. Verde is developing a process to convert waste biomass, including agricultural residues, into renewable gasoline that functions seamlessly in standard engines. While most biofuel initiatives target ethanol or diesel alternatives, Verde’s focus on producing a true gasoline replacement is distinctive, aiming to deliver a drop-in fuel that reduces carbon emissions without requiring new vehicles or fuel infrastructure.

Though ambitious, Verde has secured substantial backing that enhances its credibility. Diamondback Energy, a major Texas oil and gas producer, has invested $70 million in Verde Clean Fuels through its venture division, becoming the startup’s second-largest shareholder. This partnership extends beyond financing—Verde and Diamondback are collaborating to build facilities that will utilize Verde’s technology to convert natural gas from Diamondback’s Permian Basin operations into gasoline products.

From an environmental perspective, Verde’s renewable gasoline aims to significantly reduce lifecycle emissions compared to petroleum-based gasoline, particularly when produced from biogenic waste or paired with carbon capture technology. While the company remains in the development stage—making it appropriate for investors with a long-term, high-upside perspective—the market potential is enormous, with billions of gallons of gasoline consumed annually. Even a gradual “greening” of that market represents a multi-billion-dollar opportunity.

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Different Types of Biofuels Companies

Understanding the diverse landscape of biofuel companies is essential for informed investment decisions. While many organizations operate in the broader clean and renewable energy space, not all qualify as dedicated biofuel producers. For investment purposes, it’s important to recognize the various types of biofuel companies and their distinct approaches.

Biofuels are produced by converting biomass directly into liquid fuels. The most widely used biofuels are biodiesel and ethanol, though renewable hydrocarbon fuels derived from biomass are gaining traction despite their current limited availability. Other biofuel types include bio-alcohol, propanol, butanol, green diesel, cooking oils, biogas, biohydrogen, dimethylfuran, and cellulosic ethanol—all contributing to the advancement of clean, renewable energy.

The biofuel industry encompasses various business models, including public and private companies. While most offer investment opportunities through stocks, some remain privately held. Companies in this sector can be categorized as biofuel developers, manufacturers, distributors, or research organizations. These can be further classified into first-generation and second-generation biofuel producers.

First-generation companies convert edible food components into biomass for fuel production. While innovative when first developed, these have largely been superseded by second-generation biofuel companies that utilize alternative feedstocks that don’t compete with human food supplies, offering a more sustainable approach to renewable fuel production.

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Who is the top biodiesel producer?

The United States currently leads global biodiesel production, followed by Brazil and Germany. Biodiesel is a renewable fuel manufactured from vegetable oils, animal fats, or recycled cooking grease, commonly used as a substitute for conventional diesel fuel in transportation and energy applications. Within the U.S. market, companies like Renewable Energy Group (now part of Chevron), Darling Ingredients through its Diamond Green Diesel joint venture, and FutureFuel Corp stand out as significant producers contributing to America’s biodiesel leadership.

Are Biofuel Stocks Worth The Risks?

All investments involve certain risks, and biofuel stocks are no exception. However, the biofuel industry currently stands at a pivotal moment in the energy investment landscape. Over the past decade, production of these renewable energy sources has expanded more than six-fold, though they still represent less than 5% of transportation fuel consumption today, indicating substantial room for growth.

While production costs for biofuels remain higher than those for fossil fuels, the environmental benefits are undeniable. Corn-based ethanol dominates the current biofuel market, but this raises ESG concerns about dedicating food crops solely to fuel production. Companies producing corn-based ethanol maintain solid performance, but those developing next-generation biofuels are experiencing even stronger growth trajectories.

Waste-based fuels, cellulosic ethanol, and other advanced biofuel varieties are being continuously developed and refined. Although many governments initially anticipated faster scaling of biofuel production and adoption, actual growth has sometimes fallen short of projections, leading to revised regulatory mandates in some regions.

Historically, government subsidies have driven advancement in the biofuel sector. However, as budgets tighten, private investment is increasingly becoming the primary catalyst for sustainable fuel development. While risks exist and growth may proceed gradually, investing in biofuel stocks represents both an environmentally responsible choice and a potentially rewarding addition to a long-term investment portfolio.

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