The 53.2 billion gallon biofuel industry has enjoyed capacity growth of 19.6% annually since 2005, but growth will slow to just 3.2% annually through 2017. Stymying biofuel capacity expansion are deep logistical and financial issues with today’s bio-based fuels and feedstocks. Next-generation biofuels, like renewable diesel or butanol, offer higher blends than today’s ethanol or biodiesel. Additionally, next-generation feedstocks, like waste oils and cellulosic biomass, are not tied up in the food supply and could unlock significant economic advantages, assuming novel conversions commercialize. These next-generation fuels and feedstocks will drive long-term biofuel capacity expansion. The leading companies within these areas will build facilities in key markets with long-term blending targets and a history of biofuel consumption.