Renewable bio jet fuel market

Renewable/Bio Jet Fuel Market, By Conversion Pathways (Fischer TropschSynthetic Paraffinic Kerosene (FT-SPK), Hydroprocessed Esters and Fatty Acids (HEFA), Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (SIP) and Alcohol to Jet SPK (ATJ-SPK)), By Feedstock (Agriculture Crops, Aquaculture Crops, Energy Crops, Multiple Solid Waste, and Others (Animal Fats, Sugar, etc.)), and By Region (North America, Europe, Asia-pacific, Latin America, Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

Request Free Sample

Dec 2022
CMI679
126 Pages
Excel & Pdf
Energy

Summary

Biomass based aviation fuels are considered as a promising alternative for conventional fossil fuel based aviation fuels. Bio jet fuel is made from vegetable oils, sugars, animal fats and waste biomass, and can be used in existing aviation jet engines without any modification. The first test flight with bio jet fuel was completed in 2008 by Virgin Atlantic.

Global renewable/bio jet fuel market was valued at US$ 186.81 Mn in 2021 in terms of revenue, exhibiting a CAGR of 17.95 % during the forecast period (2022 to 2030).

Drivers

Increasing need for reduction in GHG emissions in aviation industry

Sustainable aviation fuels are a key component in meeting the aviation industry’s commitments to decouple increases in carbon emissions from traffic growth SAF gives an impressive reduction of up to 80 % in CO2 emissions over the lifecycle of the fuel compared to fossil jet fuel, depending on the sustainable feedstock used, production method, and the supply chain to the airport. According to the IATA fact sheet, SAF will be an eligible option for aircraft operators to Organization (ICAO) agreed on a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to reduce CO2 emissions from international aviation with a pilot phase from 2021-2023, followed by a first from phase 2024- 2030

The COVID-19 pandemic disrupted the market severely. The pandemic led to lockdowns to control the virus, which resulted in minimal aviation traffic, thereby declining the demand for aviation fuel. Factors such as government policies and efforts to limit emissions from the aviation industry and increasing growth in air traffic, are some of the major factors driving the market. However, renewable aviation fuel is more expensive than conventional jet fuel, and this cost premium may restrain the market growth during the forecast period.

Figure 1. Global Renewable/Bio Jet Fuel Market Value Share (%), By Region, 2021

Market Restraints

Inadequate availability of feedstock and refineries to meet SAF production demand

The biological and non-biological resources such as oil crops, sugar crops, algae, waste oil, etc. are the raw materials that play an important role in the entire production chain of alternative aviation fuels such as synthetic fuels, e-fuels, and bio jet fuels. The demand for sustainable aviation fuel can come to a standstill due to the inadequate supply of raw materials required for its production. Also, limitations of refineries that play a major role in the proper utilization of these feedstock’s add to the delay of the overall process of SAF production. The low availability of fuel also becomes a hurdle for the blending capacity of the fuel, leading to less efficiency.

Renewable/Bio Jet Fuel Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 186.81 Mn
Historical Data for:	2017-2020	Estimated Year:	2022
Forecast Period 2022 to 2030 CAGR:	17.95 %	Forecast Period:	2022-2030
Geographies covered:	By Region: North America, Latin America, Asia Pacific, Europe, Middle East , and Africa
Segments covered:	By Conversion Pathways: Fischer TropschSynthetic Paraffinic Kerosene (FT-SPK), Hydroprocessed Esters and Fatty Acids (HEFA), Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (SIP) and Alcohol to Jet SPK (ATJ-SPK) By Feedstock: Agriculture Crops, Aquaculture Crops, Energy Crops, Multiple Solid Waste, and Others (Animal Fats, Sugar, etc.)
Companies covered:	Gevo, Inc., Red Rock Biofuels LLC, Honeywell International Inc., Virent Inc., Fulcrum BioEnergy, Inc., Neste Oil Corporation, AltAir Paramount LLC, S.G. Preston Company, SkyNRG BV, Eni SpA Total S.A., and BP PLC
Growth Drivers:	Increasing need for reduction in GHG emissions in aviation industry
Restraints & Challenges:	Inadequate availability of feedstock and refineries to meet SAF production demand

Market Trends

Hydroprocessed Esters and Fatty Acids (HEFA) Technology to Dominate the Market

Figure 2. Global Renewable/Bio Jet Fuel Market value Share (%), By Conversion Technology, 2021

Recent Developments

In February 2022, Engie SA and the U.S. engineering company Infinium Holdings announced a US$ 500-million project to produce renewable aviation and maritime fuels in northern France. The final investment decision for the project is planned for the end of 2023, with commercial operations expected to start in 2026.
In February 2022, Boeing announced a supply agreement for two million gallons of blended renewable aviation fuel with EPIC Fuels to power its commercial operations in Washington state and South Carolina by the end of 2022.

Competitive Section

Major players operating in the global renewable/bio jet fuel market include Gevo, Inc., Red Rock Biofuels LLC, Honeywell International Inc., Virent Inc., Fulcrum BioEnergy, Inc., Neste Oil Corporation, AltAir Paramount LLC, S.G. Preston Company, SkyNRG BV, Eni SpA Total S.A., and BP PLC

Table of Content

Table of Contents

Segmentation

Detailed Segmentation:

- Frequently Asked Questions -

What was the global renewable/bio jet fuel market size in 2021?

Global renewable/bio jet fuel market was valued at around US$ 186.81 Mn in 2021.

What are the major factors that are expected to drive growth of the market during the forecast period?

The market was valued at US$ 186.81 Mn in 2021 in terms of revenue, exhibiting a CAGR of 17.95 % during the forecast period (2022 to 2030).

What are the trends in the market?

Hydroprocessed Esters and Fatty Acids (HEFA) Technology to dominate the market are the trends in the market.

What are the key factors hampering growth of the market?

Lack of viable source for the production of biofuels on a commercial scale, resulting in high bio jet fuel prices is one of the major factors that is expected to hamper growth of the market over the forecast period.

Which are the key players in the market?

Major players operating in the market include Gevo, Inc., Red Rock Biofuels LLC, Honeywell International Inc., Virent Inc., Fulcrum BioEnergy, Inc., Neste Oil Corporation, AltAir Paramount LLC, S.G. Preston Company, SkyNRG BV, Eni SpA Total S.A., and BP PLC

What is the estimated CAGR for the market?

The market is estimated to grow at around 17.95 % CAGR in the forecast period (2022-2030).