Commercial Status of Direct Thermochemical Liquefaction Technologies
Direct Thermochemical Liquefaction of biomass is an important pathway to produce bioenergy and biochemicals needed in the circular economy. IEA Bioenergy Task 34 (Direct Thermochemical Liquefaction) is an international network of researchers that support the advancement and commercialisation of bioenergy through Direct Thermochemical Liquefaction (DTL) conversion pathways. The Task published a 2026 status overview of the current commercial DTL activities. The report indicates that the production capacity of DTL technologies has increased to some level partly due to new companies entering operations. Companies already operating have not significantly increased their production activities. Additional projects with fast pyrolysis technology are under development. The first companies with hydrothermal liquefaction production facilities have successfully entered operation, although this technology has yet lower maturity compared to fast pyrolysis.
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The report provides a detailed overview of the key features of commercially successful DTL operations and highlights how DTL technologies (including fast pyrolysis, hydrothermal liquefaction and solvolysis process) can play a role in converting biomass for the energy (heat, power, and transport) and chemical sectors. The report covers current commercial activity, near-to-market activities (e.g. demonstration plants) and some recently decommissioned plants (based on details of 12 commercial and 14 demonstration scale DTL plants, spread across 10 countries). More information can also be found at the Task 34 database .
On basis of the capacity of the commercial plants in operation, mostly based on fast pyrolysis technology, the total production of DTL liquid is estimated around 100 million litres of bio-oil per year. When considering also the plants under commissioning and the ones that are being temporarily shut down, the annual production could reach around 150 million liters of DTL liquids per year. A growing interest in Hydrothermal liquefaction (HTL) is reflected by the presence of several demonstration plants that are included in the report and the start of the first commercial plant.
The report shows that DTL technologies have matured to become a key pathway for the commercialisation of bioenergy. Increasing number of pilots have succeeded bridging the technology valley of death by advancing the technology readiness level (TRL) beyond 6 at reasonable costs to demonstrate scalability and financial viability. Commercial-scale DTL plants require significant investments that are financed through mechanisms such as equity, debt financing, shareholding and government grants. Favourable policy initiatives will further increase the number of commercial DTL plants, contributing to increasing bioenergy production. While most of the liquid products from the precursor plants were produced for heating applications, several technologies target further upgrading to make transportation fuels. The use of DTL liquids for carbon sequestration is also being implemented.
Some key findings for policymakers
- Direct Thermochemical Liquefaction companies are currently demonstrating commercial operation, which is a major stepstone.
- The current production of liquids from biomass in Direct Thermochemical Liquefaction (DTL) facilities is stable around 100 million liters per year
- Most plants are based on fast pyrolysis technology, with new pyrolysis companies entering the market.
- The technology of hydrothermal liquefaction (HTL) is less mature than that of fast pyrolysis technology, though the field is quite dynamic and demonstration plants and a first commercial HTL-plant have started operations.
- Given the current lower maturity of HTL the name plate production capacity is still one order of magnitude lower than for fast pyrolysis plants.
- The main use of the results liquid product is direct combustion for heat and power applications; other applications that are being considered include upgrading to transportation fuel and carbon sequestration.
Download the full report “Commercial Status of Direct Thermochemical Liquefaction Technologies”
Other reports on Direct Thermochemical Liquefaction:
Direct Thermochemical Liquefaction (DTL) Technology Options for BECCS (2026)
Commercial status of direct thermochemical liquefaction technologies – 2023 report