Sustainable Aviation Fuel Market Outlook - Trends, Sales and Key Manufacturer Analysis by 2024-2031 | Neste, AEMETIS, INC., Gevo, Shell PLC

The Sustainable Aviation Fuel Market is estimated for 2024 for the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Sustainable aviation fuel is a type of biofuel produced from sustainable feedstock such as used cooking oil, animal fat, and residues and wastes from farming and forestry. It can reduce greenhouse gas emissions by up to 80% compared to conventional fossil-based jet fuel.

Market Dynamics:

The global sustainable aviation fuel market is expected to witness significant growth over the forecast period owing to increasing environmental concerns and initiatives to reduce aviation sector's carbon footprint. Many global airlines and aircraft manufacturers have set goals to increase the usage of sustainable aviation fuels in coming years. For instance, United Airlines aims to purchase 1.5 billion gallons of sustainable aviation fuel over the next 20 years. In addition, supportive government policies and incentives to promote the production and usage of sustainable jet fuel will further propel the market growth during the forecast period. Recently, the US Department of Energy announced $40 million investment for facilities to produce sustainable aviation fuel. Moreover, Europe has set a target of using at least 2 million tons of sustainable aviation fuels annually by 2030.

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Top Key Players are Covered in this Report:

★ Neste
★ AEMETIS
★ INC.
★ Gevo
★ Shell PLC
★ Lanza Jet
★ Sky NRG

Market Segmentation:

By Fuel Type:

★ Biofuel
★ Hydrogen Fuel
★ Power to Liquid Fuel

By Aircraft Type:

★ Fixed Wings
★ Rotorcraft
★ Others

By Platform:

★ Commercial Aviation
★ Military Aviation
★ Business & General Aviation
★ Unmanned Aerial Vehicle

Key Region/Countries are Classified as Follows:

» North America (U.S., Canada, Mexico)
» Europe (Germany, U.K., France, Italy, Russia, Spain, Rest of Europe)
» Asia-Pacific (China, India, Japan, Singapore, Australia, New Zealand, Rest of APAC)
» South America (Brazil, Argentina, Rest of SA)
» Middle East & Africa (Turkey, Saudi Arabia, Iran, UAE, Africa, Rest of MEA)

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Sustainable Aviation Fuel Market Drivers: Government Initiatives and Regulations to Reduce Carbon Emissions are Driving the Adoption of Sustainable Aviation Fuels

Many governments around the world have implemented various policies and regulations to curb carbon emissions from the aviation industry. They have set ambitious emission reduction targets and are offering incentives and subsidies to encourage airlines and fuel suppliers to produce and use sustainable aviation fuels. For example, the EU has set a target of reducing emissions from aviation by 20% by 2030 and aims to achieve net-zero emissions by 2050.

To meet these targets, the EU is providing research grants for developing sustainable aviation fuels under its Horizon 2020 program. Similarly, the US Department of Energy offers funding for research and development of sustainable aviation fuel technologies through public-private partnerships like the Commercial Aviation Alternative Fuels Initiative. Such initiatives and regulations are compelling airlines and fuel producers to shift towards more sustainable alternatives to conventional jet fuel. As sustainable aviation fuels help reduce lifecycle carbon emissions by up to 80% compared to fossil fuels, their adoption is expected to grow significantly in the coming years to comply with tightening emission norms.

Increased Investment in Sustainable Aviation Fuel Production Facilities is Another Key Market Driver

Major oil companies and aviation fuel suppliers are investing heavily in building commercial scale production plants for sustainable aviation fuels. For instance, Finnish oil refiner Neste is expanding its renewable products refinery in Singapore to increase sustainable aviation fuel production capacity to 1 million tons per annum by 2023. US-based airline Southwest has also partnered with gevo Inc to open a 10 million gallons per year isobutanol plant that will convert agricultural residues into sustainable aviation fuel.

The recent investments and expansion projects demonstrate the confidence of industry players in the future demand prospects of sustainable aviation fuels. As production capacity increases, it will allow more airports and airlines to procure sustainable fuel supplies at competitive costs. This is expected to further accelerate the penetration of sustainable aviation fuels in the overall jet fuel market.

Sustainable Aviation Fuel Market Restrain: High Production Costs Pose Significant Challenge

While regulatory support and investments are driving the sustainable aviation fuel market, high production costs continue to restrain wider adoption. Compared to conventional jet fuel available at around $0.6-$0.8 per liter, the cost of sustainable aviation fuel is around $1.5-3 per liter depending on the feedstock and production method used. This significant premium is primarily because sustainable fuels are still being produced at relatively small commercial scales.

Developing efficient technologies and feedstock supply chains to produce sustainable aviation fuels sustainably and economically at large volumes remains a major challenge. Additionally, the lack of a mature renewable fuel distribution infrastructure also adds to the costs. With airlines being a very cost-sensitive industry, higher fuel costs could discourage procurement of sustainable fuels beyond what is dictated by regulatory obligations in the short-run. Considerable technological advancements and economies of scale would be required to achieve cost parity with fossil jet fuel in the long-run. This is likely to slow down the market growth rate to some extent in the next 5-10 years.

Sustainable Aviation Fuel Market Opportunity: Co-Processing Sustainable Feedstocks with Conventional Oils Can Help Lower Production Costs

One of thezopportunities for sustainable aviation fuel producers is to use co-processing technology that involves mixing sustainable feedstocks like waste oils with conventional crude oil during the refining process. This helps convert existing oil refineries into biorefineries without requiring major infrastructural changes. For instance, Neste's Singapore refinery uses its proprietary NEXBTL technology to co-process waste and residue oils along with crude oil to produce renewable diesel and sustainable aviation fuel.

Such an approach allows the spread of capital and operating costs across a larger production volume, including both renewable and conventional fuels. It significantly reduces the production costs of sustainable fuels. Estimates indicate that co-processing technology can lower sustainable aviation fuel costs to around $2-2.5 per liter initially and further down to $1.5-2 per liter with scaling up. This offers a commercially viable pathway for airlines to incorporate sustainable fuel in their operations without substantial additional costs. As co-processing capacity increases globally with investments, it will play a key role in facilitating the large-scale market potential of sustainable aviation fuels.

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The report answers a number of crucial questions, including:

➥ Which companies dominate the global Sustainable Aviation Fuel market?
➥ What current trends will influence the market over the next few years?
➥ What are the market's opportunities, obstacles, and driving forces?
➥ What predictions for the future can help with strategic decision-making?
➥ What advantages does market research offer businesses?
➥ Which particular market segments should industry players focus on in order to take advantage of the most recent technical advancements?
➥ What is the anticipated growth rate for the Sustainable Aviation Fuel market economy globally?

Some of the Major Points of TOC cover:

Chapter 1: Techniques & Scope

1.1 Definition and forecast parameters
1.2 Methodology and forecast parameters
1.3 Information Sources

Chapter 2: Latest Trends Summary

2.1 Regional trends
2.2 Product trends
2.3 End-use trends
2.4 Business trends

Chapter 3: Industry Insights

3.1 Industry fragmentation
3.2 Industry landscape
3.3 Vendor matrix
3.4 Technological and Innovative Landscape

Chapter 4: Sustainable Aviation Fuel Market, By Region

Chapter 5: Company Profiles

5.1 Company Overview
5.2 Financial elements
5.3 Product Landscape
5.4 SWOT Analysis
5.5 Systematic Outlook

Chapter 6: Assumptions and Acronyms

Chapter 7: Research Methodology

Chapter 8: Contact (Continue . . .)

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