ABSTRACTMany countries accelerate climate change by using fossil fuels like coal, gas, and petroleum to power their energy production systems and boost economic growth, which in turn releases large amounts of greenhouse gases (GHG). Recently, biofuels (BIO) have gained significant global attention for their potential to decarbonize the economy and reduce dependence on petroleum by replacing fossil fuels. This study examines the effect of biofuel consumption and innovation in non‐fossil fuels on the load capacity factor (LCF) in the United States spanning from 1981 to 2020. The empirical outcomes verify the validity of the load capacity curve (LCC) theory. In addition, biofuel consumption has a favourable impact on LCF. The findings further demonstrate that innovation in non‐fossil fuel technologies has no significant impact on the LCF. Based on these outcomes, the US government should increase the share of BIO as an energy component in the energy mix to replace fossil fuels. As a result, BIO have significant potential for the United States to meet its low‐carbon goal by efficiently reducing GHG.