Sustainable Aviation Fuel Market Report Scope & Overview:

The Sustainable Aviation Fuel Market size was valued at USD 563.1 Million in 2023 and is expected to grow to USD 25371.51 Million by 2031 and grow at a CAGR of 60.93% over the forecast period of 2024-2031.

A type of biofuel with the same characteristics as regular jet fuel but a much lower carbon footprint is sustainable aviation fuel. SAF can significantly reduce life cycle GHG emissions, depending on the feedstock and technology utilized to make it. Even some newly developed SAF paths have a net-negative GHG.

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Sustainable Aviation Fuel (SAF) is a fuel made from renewable resources or waste that satisfies sustainability standards. The fuel can be made from a variety of renewable resources, including cooking oil, carbon dioxide extracted from the air, and forestry and agricultural waste. To cut pollution, it can be blended with any fossil jet fuel. Sustainable aviation fuel can be installed with no modifications to the aircraft or infrastructure, making it a drop-in fuel. Using sustainable, high-quality aviation fuel can significantly cut carbon dioxide emissions. Oil and gas refineries have many opportunities to implement SAF technologies. Utilizing renewable aviation fuel decreases.

Sustainable aviation fuel is a specific kind of fuel created to be utilized in aircrafts while also improving aircraft efficiency. Sustainable aviation fuels share many chemical properties with conventional fossil jet fuel and are produced from sustainable feedstocks. By replacing the lifecycle of the fuel, increased use of sustainable aviation fuels reduces carbon emissions when compared to conventional jet fuel. The aviation sector is motivated to reduce carbon footprints in order to preserve the environment and adhere to strict emission regulations. Additionally, numerous aviation sector stakeholders are adopting hybrid and all-electric aircraft, renewable jet fuels, and changes to aero-engine designs to increase efficiency, but the use of sustainable aviation fuel is still in its infancy.

MARKET DYNAMICS

KEY DRIVERS: 

• Growing need for the aviation sector to reduce its GHG emissions

• Rising carbon emissions from increasing traffic, sustainable aviation fuels

In order to fulfill the aviation industry's promises to uncouple rising carbon emissions from increasing traffic, sustainable aviation fuels are a crucial component. Depending on the sustainable feedstock utilized, the production process, and the supply chain to the airport, SAF offers a remarkable decrease in CO2 emissions of up to 80%.

The SAF will be a viable option for aircraft operators to fulfill their obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), according to the IATA fact sheet.

RESTRAIN:

• Lack of experience and knowledge

• High price of sustainable fuel

The cost of SAF is four to five times greater than that of regular jet fuel. So, different airlines are hesitant to purchase SAF in large quantities. SAF is manufactured in extremely small quantities all over the world. Feedstock costs, yields, and plant capital recovery are a few more important elements that influence the price of SAF as a whole. The high cost of SAF is therefore anticipated to restrain market expansion. Incentives are offered, though, and these may assist to bring down the price of SAF.

OPPORTUNITY:

• Increasing the effectiveness of sustainable aviation fuel and the expansion of new businesses

• Increased sales of jet engines, investment in the creation of clean fuel

CHALLENGES:

• High SAF costs push up airline operating costs

• Climate Change

IMPACT OF RUSSIA-UKRAINE WAR

The invasion of Ukraine by Russia resulted in a decline in crude oil and shipments of refined goods, particularly to Europe. These elements have driven up the price of crude oil as well as middle distillates like diesel and jet fuel on a global scale. Added to these global price hikes, limited local logistics, and an unexpected rise in aviation Demand has increased local prices in regions like the Northeast United States particular price increases for aviation fuel, where a gallon now costs $8 or more. These rapidly increasing energy prices are the next challenge for an industry that is barely recovering from the COVID-19 virus outbreak. Recently, a significant US airline claimed in its annual report that the airline's overall costs rise by one cent for every gallon of jet fuel that costs more. The airline's overall fuel expense would rise by one cent for every gallon of jet fuel that costs more by $40,000,000! the most recent rise in jet fuel of 195 cents is equivalent to An increase in fuel prices of about $8 billion per year for this airline.

KEY MARKET SEGMENTATION

By Fuel Type

• Biofuel

• Hydrogen Fuel

• Power to Liquid Fuel

• Gas-to-Liquid

By Biofuel Manufacturing Technology

• Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)

• 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)

By Biofuel Blending Capacity

•  Below 30%

•  30% to 50%

•  Above 50%

By Platform

• Commercial Aviation

• Military Aviation

• Business & General Aviation

• Unmanned Aerial Vehicle

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REGIONAL ANALYSIS

In 2021, Europe held a significant 56.2% of the worldwide market. The market in the area is anticipated to expand significantly throughout the forecast period. The increase in the use of strict energy regulations
are encouraging the use of renewable fuels in the European aviation industry. In 2021, these regions had respective market shares of 41.3% and 1.9%. U.S. businesses involved in the aviation industry include energy enhancing sustainable aviation production and deployment by working with the federal government and other stakeholders. The American government issued a challenge in September 2021 to provide at least 3 billion gallons of SAF.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• SkyNRG and CHOOOSE are launching "Fly on SAF," a new carbon emission reduction solution, in October 2021 with partners like Heathrow Airport, Rotterdam the Hague Airport, and Stuttgart Airport already on board. The solution enables airlines and travel agencies to seamlessly integrate the offering of Sustainable Carbon Offsets and Aviation Fuel (SAF) are incorporated into their client experience.

• Gevo, Inc. and Delta Air Lines, Inc. inked a "take-or-pay" agreement in March 2022 for the supply of 75 million gallons of sustainable aviation fuel (SAF) annually for seven years. The Agreement strengthens Delta's commitment to integrating SAF into its operations and supersedes the previous contract that was inked with Delta in 2019 to acquire 10 million gallons annually.  

• Neste and ITOCHU Corporation increased their collaboration in February 2022 to increase the accessibility of sustainable aviation fuel (or "SAF") in Japan. In the expanded collaboration, ITOCHU serves as Neste MY Sustainable Aviation Fuel's official distributor in Japan, making Neste MY Sustainable Aviation Fuel initially available atTokyo Haneda and Narita International Airports, which are the two biggest in Japan.   

KEY PLAYERS

The Major Players are Neste (Finland), Fulcrum BioEnergy (US), LanzaTech (US), World Energy (US), TotalEnergy (US), Preem (Sweden), OMV (Austria), Atmosfair (Germany), Wastefuel (US), Prometheus Fuels (US) Red Rocks Biofuel (US), Northwest Advanced Biofuels (Austria)and other players are listed in a final report.

Fulcrum BioEnergy (US)-Company Financial Analysis