Biofuels is becoming an increasingly important part of oil and gas companies to decarbonise their downstream operations. From 2024 to 2030, the Majors will increase their biofuels capacity by 41%, outpacing global demand growth of 30%. However, their contribution to our forecast of global biofuels capacity is only 5% in 2030, much lower than their current share of 12% in global crude refining. Despite biofuels’ margins falling this year, government policies remain supportive to encourage further investment. And we expect selected M&A and organic growth initiatives in biofuels will remain part of Majors’ ongoing decarbonisation efforts.