The Global Renewable/Bio Jet Fuel Market is estimated to be valued at US$ 259.89 Mn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Renewable/bio jet fuel is produced from renewable feedstock such as camelina, algae, jatropha, and halophytes. It has nearly the same performance as traditional jet fuel but with up to 80% lower carbon emissions over its life cycle. It also performs consistently at lower temperatures and is compatible with current aircraft engines and fueling infrastructure.
Market key trends:
One of the key trends in the renewable/bio jet fuel market is the adoption of co-processing technology. Co-processing involves blending renewable/bio jet fuel with conventional jet fuel at an oil refinery. This allows for a gradual introduction and adoption of renewable fuels while leveraging existing fuel supply and distribution infrastructure. Major oil companies such as Total, Neste, and Eni have started adopting co-processing to produce renewable jet fuel. Another key trend is the increasing focus on the production of renewable jet fuel from camelina, a fast-growing plant with high oil content. Camelina has significant potential for the sustainable production of renewable jet fuel and its cultivation requires less water and fertilizer compared to other feedstock such as jatropha.
Market key trends:
One of the key trends in the renewable/bio jet fuel market is the blending of biofuels with conventional jet fuel. To reduce carbon footprint of air travel and dependence on fossil fuels, international aviation regulatory bodies like ICAO have recommended airlines to blend sustainable aviation fuel (SAF) comprising at least 10% bio-component by 2030. Most airlines and fuel suppliers are actively pursuing development and supply of drop-in biofuels that can be seamlessly used to supplement or replace conventional jet kerosene.
SWOT Analysis
Strength: Renewable jet fuels have the potential to significantly reduce greenhouse gas emissions over their lifecycle compared to conventional jet fuel. They are backed by incentives and policy support from governments aiming for carbon neutrality.
Weakness: High production costs remain a challenge due to lack of economies of scale in biofuel production. Dependence on feedstock availability is also a concern.
Opportunity: Growing emphasis on sustainability and carbon reduction targets in the aviation industry present a huge market opportunity. Supportive policies and initiatives by various nations are encouraging investments in biofuel projects.
Threats: Conventional jet fuel continues to be cheaper. Disruptions such as COVID-19 pandemic can dampen demand growth projections in the short-term.
Key Takeaways
The Global Renewable/Bio Jet Fuel Market is expected to witness high growth, exhibiting CAGR of 13.% over the forecast period, due to increasing environmental concerns and focus on decarbonizing the aviation sector. The market size for 2023 is US$ 259.89 Mn.
By region, North America dominated the global market in 2022 supported by favorable regulatory policies and incentives for biofuel production and blending in the US. Europe and Asia Pacific are also expected to offer lucrative growth opportunities owing to supportive biofuel and emission reduction mandates in countries like Germany, France and India.
Key players operating in the 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. These players are focusing on expanding their production facilities and partnerships with airlines for large-scale supply of sustainable aviation fuels.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
