Bio jet is an aviation fuel made from renewable and naturally derived raw materials. It is mixed with petroleum jet fuel and is suitable for use in a jet engine. Biojet fuels have lower greenhouse gas emissions as compared to petroleum jet fuel. A major challenge for the bio jet market, however, is the lack of a viable source for the production of biofuels on a commercial scale which has resulted in the current high bio jet fuel prices, which is leading to the airline companies not buying bio jet fuel on a large scale.
The need for the use of environmental friendly jet fuel in order to reduce the greenhouse gas emissions from the aviation sector is a major driver for the bio jet market. The first test flight with bio jet fuel was completed in 2008 by Virgin Atlantic. Despite the need and airline support for bio jet, producers struggle to make renewable fuel cost-competitive with fossil fuels. Currently, biojet fuel is supplied through segregated logistics which leads to higher costs thus reducing its demand.
Bio Jet Fuel Taxonomy
By category and pathways
Currently blends of up to 50% bio jet fuel produced by either the Fischer-Tropsch (FT) process, the Hydro generated esters and fatty acids (HEFA) process or Synthesized Iso-Paraffins (SIP) are used with petroleum jet fuel as aviation fuel mandated by ASTM. HEFA is around 40% more expensive than petrojet, while renewable jet fuels produced by other methods are 60-70% more expensive than conventional petro jet fuel. Hence, bio jet fuel produced by HEFA is found to be more cost effective than other production methods.
The aviation industry is one of the strongest and fastest growing transport sectors. Due to the growing share of aviation to greenhouse gas emissions and orders issued by various governing bodies the upcoming bio jet market has a lot of potential to grow in the near future. However the bio jet market needs a continuous supply of feedstock at sufficient quantities and at low cost. It needs to be priced competitively with petroleum jet fuel. The increasing competition by other biofuel producers for feedstock will affect feedstock prices, thus hampering the growth of the bio jet fuel market. For the global commercialization of bio jet fuel the aviation sector will need to efficiently use the existing downstream infrastructure to lower transport and production costs. Key players operating in the global bio jet fuel market include Honeywell International Inc., Red Rock Biofuels, Targray Technology International Inc., Vega Biofuels, Argent Energy, GEVO, KFS Biodiesel GmbH & Co. KG, PetroSun, Inc., Shirke Energy, Archer Daniels Midland Company.
Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:
In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.
Coherent Market Insights desk research is based on a principle set of research techniques:
Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:
Preliminary Data Mining
The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.
Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.
Coherent Statistical model
We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:
Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.
This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:
The primary research is conducted with the ecosystem players including, but not limited to:
Finding it difficult to find the research that would cater to your business demands? Give us a chance to help you. One of our Research Consultants will connect to provide a customized solution.[email protected]
Talk to our research consultant to design an exclusive report as per your research needs.
We aim to fulfil client's research demands with tailored research solutions.
We aim to provide research studies in quickest turnaround time and in a much cost effective manner.
We cover each industry from supply and demand side with an aim to provide a most holistic research study.
We strive to provide most accurate and reliable research findings in our research reports.