Top US Biofuel Stocks Reshaping Clean Energy Investment in 2025

The biofuels market is experiencing remarkable momentum. Valued at US$64.06 billion in 2024, the sector is projected to surge to US$106.02 billion by 2034—a clear signal that biofuel company investments are gaining institutional attention. This growth trajectory reflects multiple converging trends: the transportation industry’s carbon reduction mandates, geopolitical shifts away from oil dependency, and technological breakthroughs that have dramatically improved biofuel production efficiency.

The United States dominates global biofuel production, a position that matters significantly for investors seeking exposure to this emerging sector. According to the US Energy Information Administration, US biofuel capacity reached 4.3 billion gallons per year as of January 2024—a 1.3 billion gallon increase from 2023. Ethanol remains the backbone of American biofuel output, primarily derived from corn starch, though the sector is rapidly diversifying.

Understanding the Biofuel Opportunity

Before diving into specific biofuel company picks, it’s worth understanding what you’re actually investing in. Biofuels represent renewable energy sources extracted from biomass—algae, agricultural waste, and animal byproducts. Unlike fossil fuels, they’re regenerative resources that can be continuously replenished. Production methods vary by feedstock type but typically involve fermentation, chemical processing, dry milling, or thermal decomposition to unlock usable energy.

The primary biofuel products span three physical states: ethanol (liquid), biogas (gaseous), and biodiesel (liquid). Ethanol production demonstrates regional variation—American facilities rely on corn, while Brazilian competitors leverage sugarcane efficiency advantages. This distinction shapes competitive dynamics within the sector.

The Leading US Biofuel Stocks to Watch

REX American Resources (NYSE:REX) - The Ethanol Powerhouse

Market cap: US$644.36 million

REX American Resources operates the most significant pure-play ethanol position among publicly traded biofuel companies. The firm controls interests in six ethanol facilities with combined production capacity of 730 million gallons annually. What distinguishes REX is its dual ownership model: majority stakes in One Earth Energy (Illinois) and NuGen Energy (South Dakota) totaling 300 million gallons capacity, plus minority participation in Big River Resources’ four-facility network spanning Iowa, Illinois, and Wisconsin.

Growth initiatives underscore management confidence. REX is actively expanding its One Earth Energy facility, targeting a capacity increase from 150 million to 175 million gallons per year, with completion expected mid-2025. Further expansion plans aim for 200 million annual gallons, though permitting processes are ongoing.

Montauk Renewables (NASDAQ:MNTK) - The Biogas Converter

Market cap: US$444.44 million

This biofuel company specializes in waste valorization—capturing methane from landfills and converting it into renewable natural gas (RNG) and grid electricity. Montauk operates 14 active projects across California, Idaho, Ohio, Oklahoma, Pennsylvania, and the Carolinas, with expansion opportunities in Texas.

Fiscal 2024 results project RNG revenues between US$175-185 million, supplemented by US$17-18 million in renewable electricity sales. This dual revenue model provides earnings stability while the biofuels market expands.

OPAL Fuels (NASDAQ:OPAL) - The Integrated Waste-to-Energy Platform

Market cap: US$407.88 million

OPAL Fuels operates a comprehensive vertical integration model, converting biogas from landfills and dairy operations into fuel for heavy/medium-duty trucking fleets and utility-grid electricity. The company’s February 2025 announcement of four 50/50 joint venture landfill RNG projects signals accelerating capacity deployment, with OPAL’s stake representing 1.5 million MMBtu of annual design capacity.

Gevo (NASDAQ:GEVO) - The Next-Generation Biofuels Innovator

Market cap: US$316.02 million

Gevo represents a different breed within the biofuel company landscape—a renewable chemicals producer focused on advanced biofuels. The Colorado-headquartered firm operates fermentation plants in Minnesota producing isobutanol, ethanol, and animal feed, while its Texas biorefinery converts alcohols into renewable jet fuel, octane, and plastic precursors.

The company’s renewable natural gas infrastructure includes one of America’s largest dairy-based RNG facilities. Most intriguingly, Gevo is constructing Net-Zero 1, the world’s first commercial ethanol-to-jet sustainable aviation fuel facility in South Dakota. A February 2025 partnership with French energy giant Axens accelerates this transformative pathway, addressing aviation decarbonization demands.

FutureFuel (NYSE:FF) - The Biodiesel Specialist

Market cap: US$186.87 million

FutureFuel operates as a diversified chemical and biofuel producer, with biodiesel representing its signature strength. The biofuel company established its biofuels platform in 2005 and maintains 60 million gallons annual biodiesel capacity. The announcement of a 2025 quarterly dividend program (US$0.06 per share, commencing March 18) reflects management’s confidence in cash generation sustainability.

Verde Clean Fuels (NASDAQ:VGAS) - The Renewable Gasoline Pioneer

Market cap: US$118.58 million

Verde Clean Fuels pursues an innovative pathway: converting biomass feedstocks into renewable gasoline compatible with existing infrastructure. This direct drop-in fuel approach appeals to transportation operators reluctant to retool fleets.

The company attracted US$70 million in investment from Diamondback Energy subsidiary Cottonmouth Ventures, making the Texas energy giant Verde’s second-largest shareholder (latest funding round January 2025). The two companies are jointly developing natural-gas-to-gasoline conversion facilities leveraging Diamondback’s Permian Basin reserves.

Key Market Drivers for Biofuel Company Growth

Iowa leads domestic biofuel production, followed by agricultural strongholds Nebraska and Illinois. This geographic concentration reflects feedstock availability and existing energy infrastructure, but it also highlights risk concentration for regional investors.

The shift toward biofuel company stocks accelerates as environmental regulations tighten and corporate carbon commitments materialize. Commercial fleet operators face mandated emission reductions, creating captive demand for renewable fuels. Simultaneously, technological improvements continue reducing production costs and improving yields.

Investment Considerations

Biofuel stocks offer exposure to a US$106 billion projected market opportunity, yet individual companies display distinct risk profiles. Pure ethanol producers (REX) depend on commodity corn dynamics, while integrated waste-conversion platforms (OPAL, Montauk) benefit from methane reduction incentives and landfill gas monetization. Advanced biofuel developers (Gevo, Verde) pursue higher-margin products but face longer commercialization timelines.

All data reflects TradingView screener figures as of March 5, 2025 market close.