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6 Best US Biofuel Stocks to Watch in 2025 for Green Energy Growth

The biofuel industry is gaining momentum as the world shifts towards cleaner energy. With increasing demand for sustainable solutions, US biofuel stocks are becoming attractive investment opportunities. This article explores six of the best biofuel stocks to watch in 2025, highlighting their growth potential, market position, and investment appeal.

Why Invest in Biofuel Stocks?

Biofuels are renewable energy sources derived from organic materials such as plants and algae. As the world seeks to reduce carbon emissions, biofuels are essential in replacing fossil fuels. Key reasons to invest in biofuel stocks include:

  • Government support: US policies promote renewable energy investments.
  • Growing demand: Increased adoption in transportation and aviation.
  • Technological advancements: Improved efficiency and production methods.
  • ESG investing: Investors prioritize sustainability.

6 Best US Biofuel Stocks in 2025

1. Renewable Energy Group (REGI)

Ticker: REGI

Renewable Energy Group is a top biodiesel and renewable diesel producer. The company has expanded production and partnered with major energy firms. With increasing demand for cleaner fuels, REGI is positioned for growth.

2. Gevo Inc. (GEVO)

Ticker: GEVO

Gevo specializes in sustainable aviation fuel (SAF) and has agreements with major airlines. Its low-carbon fuel technology makes it a strong contender in the future biofuel market.

3. Aemetis Inc. (AMTX)

Ticker: AMTX

Aemetis produces renewable natural gas (RNG) and ethanol, benefiting from California’s Low Carbon Fuel Standard incentives. As clean energy policies strengthen, Aemetis is well-positioned for growth.

4. FutureFuel Corp. (FF)

Ticker: FF

FutureFuel produces biodiesel and specialty chemicals. Its strong balance sheet and efficient production make it an attractive choice for stable biofuel sector investments.

5. Green Plains Inc. (GPRE)

Ticker: GPRE

Green Plains is a major ethanol producer transitioning to high-protein ingredients and renewable chemicals. Its expertise and innovation position it well in the biofuel sector.

6. Vertex Energy (VTNR)

Ticker: VTNR

Vertex Energy has moved into the renewable diesel market by converting a refinery into a renewable fuel facility. With high oil prices and government incentives, Vertex Energy is set for growth.

Key Trends Driving Biofuel Stocks in 2025

1. Government Incentives

Policies like the Inflation Reduction Act and renewable fuel standards provide financial support to biofuel producers.

2. Sustainable Aviation Fuel Growth

Airlines are committing to net-zero carbon goals, boosting SAF demand. Companies like Gevo and Aemetis will benefit significantly.

3. Rising Crude Oil Prices

Higher oil prices make biofuels a cost-effective alternative, increasing demand.

4. Advancements in Biofuel Technology

New production methods are improving efficiency and reducing costs, making biofuels more competitive.

Risks and Challenges in Biofuel Investments

Investors should consider the following risks:

  • Regulatory changes: Shifts in government policies could impact profitability.
  • Feedstock supply issues: Dependence on agricultural products may lead to volatility.
  • Competition: The renewable energy sector is highly competitive.

Conclusion

Biofuel stocks offer promising investment opportunities, contributing to the green energy transition while generating solid returns. The six US biofuel stocks listed above—Renewable Energy Group, Gevo, Aemetis, FutureFuel, Green Plains, and Vertex Energy—are top picks for 2025. With increasing market demand and government backing, these companies are well-positioned for future growth.

Are Biofuel Stocks Right for You?

Before investing, assess your risk tolerance and research each company thoroughly. As the world moves toward sustainability, biofuel stocks could play a vital role in the future of clean energy investments.

Ryan Routh BlackRock: A Leader in Investment Management

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