Sustainable Aviation Fuel Market Scope Analysis report by Platform, Biofuel Blending Capacity, Type, Biofuel Manufacturing Technology, Fuel Type & Region, Insights, Dynamics And Forecast 2023 to 2030
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Sustainable Aviation Fuel Market Overview
“The global Sustainable Aviation Fuel Market is expected to grow rapidly at a 58% CAGR consequently, it will grow from its existing size of from $560 million in 2023 to $59 billion by 2030.”
A Path to the Future: Sustainable Aviation Fuel
Sustainable aviation fuel (SAF) is a promising alternative to petroleum jet fuel in aviation, with United Airlines achieving aviation history by flying the first passenger aircraft powered entirely by SAF on December 1, 2021. SAF can reduce greenhouse gas emissions by up to 80% on a life-cycle basis.
The December 1 flight used Honeywell UOP's EcofiningTM technology to manufacture Green Jet FuelTM (SAF), a sustainable alternative to petroleum-based jet fuel. This method reduces emissions by 65-85% compared to petroleum-based jet fuel, allowing for commercial delivery of SAF and promoting sustainable feedstocks, ultimately contributing to the aviation sector's carbon footprint reduction.
SAF, a drop-in replacement fuel, can be blended with conventional jet fuel to power airplanes in concentrations of up to 50%, without requiring changes to aircraft technology or fuel infrastructure. Over 10,000 Honeywell auxiliary power units can currently operate with 50% SAF, converting to 100% in the future.
According to the research report on the sustainable aviation fuel market, the business is flourishing due to the demand for alternative fuel sources that cause less or no harm to the environment. The increase in commercial flights, combined with the revival of the aviation industry, is driving up demand for environmentally friendly aviation fuel.
The Sustainable Aviation Fuel (SAF) is predicted to reduce emissions by 80% and improve sustainability by using 100% trash and leftovers. It also reduces aviation emissions and enhances aircraft performance due to its high energy content and improved oxygen and aromatic supply. SAF's popularity in the aviation sector is due to its outstanding storage qualities and long-term storage, driven by advanced refining technology and transitioning energy sources.
Sustainable aviation fuel, derived from biomass and organic waste, has been in use since 2008 and has the potential to replace petroleum-based fuel engines with advanced technologies. This has led to SAF enterprises entering new markets and the potential for government cooperation to accelerate the energy transition process in the aviation industry.
Demand Outlook
Climate change concerns are increasing, leading to a surge in demand for green aviation fuel.
Climate change is a pressing global issue requiring collaboration between governments, society, and industries. Aviation, along with cement, steel, plastics, trucks, and shipping, accounts for 30% of global annual carbon emissions. The rise in aviation emissions is attributed to increased air travelers, with forecasts suggesting demand could exceed 10 billion by 2050. As travel restrictions are relaxed, the aviation sector is expected to return to its pre-COVID-19 contribution of 3% of global GHG emissions.
The aviation sector is expected to return to its pre-COVID-19 contribution of 3% of global GHG emissions, with carbon emissions estimated to reach 21.2 gigatonnes of CO2 between 2021 and 2050 on a "business as usual" trajectory.
Governments worldwide are promoting sustainable fuels and carbon capture technologies to reduce CO2 emissions. Sustainable Aviation Fuel (SAF) is expected to help the aviation industry reach net zero emissions by 2050. As regulatory support grows and SAF becomes competitive with fossil kerosene, the use of sustainable jet fuel is expected to grow in the 2030s.
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Market Dynamics
Growth Drivers
- The increased desire for new ideas aids the government in its efforts to reduce carbon footprints.
- Technological improvements in conjunction with severe regulatory regulations.
- Increased investment by private airline businesses, combined with viable and dependable alternative choices.
- Reduced lifecycle GHG emissions provide extra environmental benefits as well as economic livelihood.
- The improved performance in very cold weather.
- The use of depreciated equipment and infrastructure, as well as co-processing with other streams, are projected to assist reduce capital investment.
- A drop-in fuel is the same as regular jet fuel and may be used in existing engines and infrastructure.
- Alternative energy that is sustainable is critical for aircraft safety, broad use, and carbon reduction.
The aviation fuel industry is focusing on reducing carbon emissions to ensure long-term growth.
Sustainable aviation fuel projects are crucial for reducing greenhouse gas emissions and achieving net zero emissions by 2050. The United States is leading the way in developing sustainable aviation fuels, proposing a manufacturing path for airlines to use 100% sustainable aviation fuels (SAF) by 2050. The International Civil Aviation Organization (ICAO) supports the 2050 ICAO Vision for Sustainable Aviation Fuels and encourages states and industry to contribute significantly to SAF production.
The supply chain process is being improved to boost market growth through various initiatives.
The European Union has introduced an emissions trading system, enabling businesses to acquire low-cost reductions in greenhouse gas emissions from other businesses. This collaboration with local governments aims to reduce pollution and lower the cost of adjusting to a warmer world.
Restraints
The SAF market faces challenges due to limited manufacturing capacity, lack of airline awareness, and new sustainability-focused enterprises with limited resources, stifling industry expansion.
Opportunities
Boeing and Alder Fuels have announced a new partnership in July 2022 to boost global production of sustainable aviation fuel (SAF). The partnership will use Boeing planes to test and qualify Alder-derived SAF, accelerate the transition to renewable energy in aviation, and increase SAF production for the global aerospace industry.
The increasing number of air passengers is expected to create new market opportunities for key companies in the future, as the number of scheduled services passengers increased by 3.6% in 2019 from 4.2 billion to 38.3 million, according to the International Civil Aviation Organization and World Air Transport Statistics.
Market Segment Analysis
The SAF market segments include fuel type, biofuel manufacturing technique, blending capacity, and platform, with performance varying based on area and channel.
Based on fuel type, which segment dominates the SAF market?
The biofuel category is the top sustainable aviation fuel market globally, used as an alternative to jet fuel in commercial and technological advancements. Developed countries like Norway, the Netherlands, and the UK are utilizing biofuel technology for their energy transition.
Which segment leads the market in terms of biofuel blending capacity?
The 30% to 50% biofuel blending capacity group outperforms others due to moderate blend capacity, drop-in-facility in existing gasoline systems, and supply logistics infrastructure, while the expansion of research and development facilities is increasing demand throughout the region.
How is the Sustainable Aviation Fuel Market Classified Using the Platform?
The biofuel blending market is categorized into commercial aviation, regional transport aircraft, and military aviation, including various types of aircraft such as narrow-body planes, white-body planes, business jets, ultra-light and light planes, and unmanned aerial vehicles, including military aviation.
Competitive Landscape of the Sustainable Aviation Fuel Market
- Aemetis
- Alder Fuels
- BP plc
- Fulcrum BioEnergy
- Preem (Sweden)
- OMV (Austria)
- Atmosfair (Germany),
- Wastefuel (United States)
- Prometheus Fuels
- Red Rocks Biofuel (United States)
- Gevo
- LanzaTech
- Neste Oyj
- Northwest Advanced Bio-Fuels LLC
- SAF+ Consortium
- SkyNRG BV
- TotalEnergies SE
- Velocys
- wasteful
- World Energy
Recent Developments in Sustainable Aviation Fuel Market
Amazon Air bought up to 6 million gallons of sustainable aviation fuel from Shell Aviation and World Energy.
Neste secured an arrangement with KLM to supply its SAF for flights departing from Amsterdam Airport Schiphol. Neste participated in KLM's corporate biofuel program, which seeks to cut CO2 emissions from business travel on KLM aircraft by 100%.
In September 2020, Phillips 66 Company announced plans to fully convert its San Francisco Refinery in Rodeo, California, from crude oil processing to renewable fuels, using feedstock such as used cooking oil, fats, greases, and soybean oils. The refinery could produce as much as 680 million gallons/per year of renewable diesel, renewable gasoline, and SAF.
In October 2021, Atmosfair opened the world's first plant to produce carbon-neutral jet fuel. The plant, located in Landkreis Emsland (Germany), is expected to begin producing eight barrels of synthetic kerosene a day in 2022.
In October, 2021, with partners like Heathrow Airport, Rotterdam The Hague Airport and Stuttgart Airport already on board, SkyNRG and CHOOOSE are launching a new carbon emission reduction solution called “Fly on SAF”. The solution enables airlines and travel companies to seamlessly integrate the offering of Sustainable Aviation Fuel (SAF) and Carbon Offsets into their customer experience.
In July 2021, European Commission proposed a blending mandate on sustainable aviation fuel (SAF). This marks a significant step towards reducing the fossil jet fuel demand in the aviation sector. The EU is sending out a clear signal that it is taking a leading role in climate action in the aviation sector. As a global supplier and a leader in SAF, SkyNRG has assessed the feasibility of meeting the targeted SAF volumes towards 2030, the requirements for capacity scale-up in the long term, and the various scenarios impacting the realization of this mandate. With this SAF market outlook, company will present the results of this assessment and our perspective on these questions.
In February 2022, LanzaJet, a sustainable aviation fuel technology provider and producer, has entered into a memorandum of understanding (MOU) with Marquis Sustainable Aviation Fuel (Marquis SAF) to construct a 120 million gallons per year integrated sustainable fuels plant in the U.S. using low-carbon intensity (CI) feedstocks to produce sustainable aviation fuel (SAF) and renewable diesel via the LanzaJet™ Alcohol-to-Jet process. The plant will employ on-site carbon capture and sequestration and renewable energy to produce SAF, resulting in a lifecycle greenhouse gas reduction of more than 70% compared to conventional jet fuel.
In July 2020, Shell along with World Energy agreed to supply Amazon Air with up to six million gallons of blended SAF which has the potential to reduce carbon emissions by 20%.
In March 2022, Gevo, Inc. has signed a “take-or-pay” agreement with Delta Air Lines, Inc. to supply 75 million gallons of sustainable aviation fuel (SAF) per year for seven years. The Agreement replaces the existing agreement signed with Delta in 2019 to purchase 10 million gallons per year and bolsters Delta’s commitment to incorporating SAF into its operations.
In March 2022, Aemetis signs agreement with Finnair to Supply 17.5 Million Gallons of sustainable aviation fuel
In March 2022, Aemetis signs agreement with Qantas to Supply 35 Million Gallons of sustainable aviation fuel
In February 2022, Neste and ITOCHU Corporation have expanded their partnership to grow the availability of sustainable aviation fuel (‘SAF’) in Japan. In the expanded partnership, ITOCHU acts as the branded distributor of Neste MY Sustainable Aviation Fuel™ in Japan making Neste MY Sustainable Aviation Fuel available first at the two largest Japanese international airports; Tokyo Haneda and Narita.
Regional Insights
The United States is considered a profitable market for sustainable aviation fuel due to its high demand and environmental benefits
“The rise in aviation activity has led to the development of environmentally friendly options and reduced carbon footprints”
The North American sustainable aviation fuel market is crucial for sales and expansion due to government support for reducing emissions, per-flight pollution, and facilitating the energy transition program.
Canada is leading in biojet supply chain initiatives, including CAAFI and MASBI, and is focusing on the Biojet Supply Chain Initiative to validate the Canadian biojet supply chain and demonstrate operational feasibility.
China's performance in the sustainable aviation fuel market is being analysed
“The Asia Pacific region is experiencing significant growth due to increased policy support and partnerships”
The Chinese SAF market is expected to grow at a strong CAGR in the forecast period, driven by new measures allowing businesses to produce sustainable aviation fuel units. The country uses 26.47 million tonnes of aviation fuel annually.
Segments Covered in the Sustainable Aviation Fuel Market
Sustainable Aviation Fuel Market By Platform
- Commercial Aviation
- Military Aviation
- Business & General Aviation
- Unmanned Aerial Vehicle
Sustainable Aviation Fuel Market By Biofuel Blending Capacity
- Below 30%
- 30% to 50%
- Above 50%
Sustainable Aviation Fuel Market By Type
- Total Stations
- Global Navigation Satellite Systems (GNSS)
- Laser Scanners
- Sensors
- Others
Sustainable Aviation Fuel Market By Biofuel Manufacturing Technology
- Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-
- Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
- Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
- Alcohol to Jet SPK (ATJ-SPK)
- Catalytic Hydrothermolysis Jet (CHJ)
Sustainable Aviation Fuel Market By Fuel Type
- Biofuel
- Hydrogen Fuel
- Power to Liquid Fuel
- Gas-to-Liquid
Sustainable Aviation Fuel Market By Region
- North America
- Latin America
- Europe
- Japan
- Asia Pacific Excluding Japan
- The Middle East and Africa
Frequently Asked Questions:
How Big is the Sustainable Aviation Fuel Market?
The market is estimated to be valued at US$ 560 million in 2023.
What is the Market Outlook Through 2029?
The market is expected to reach a value of US$ 59 billion by 2029.
Which Biofuel Blending Capacity will Lead the Market?
30% to 50% capacity is likely to remain preferred until 2033.
Which Country is Expected to Dominate the Market?
The United States is likely to dominate the market.
Who are Some Key Market Players?
Preem, OMV, and Atmosfair are the key players.
Base Year:2022
Historical Data:2018-2022
No of Pages:124
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