Renewable Aviation Fuel Market is expected to grow at a CAGR of 48.01%
Environmental
Concerns and Regulations and Volatility in Crude Oil Prices is expected to
drive the market during the forecasted period.
According to TechSci Research report, “Renewable Aviation Fuel Market -
Global Industry Size, Share, Trends, Opportunity, and Forecast 2019-2029”, the
Global Renewable Aviation Fuel Market is expected to register robust growth during the
forecast period. Over the long term, factors
such as increased government regulations for greenhouse gas emissions and
encouraging production and consumption of renewable aviation fuel are likely to
drive the renewable aviation fuel market during the forecast period. On the
other hand, high costs of renewable aviation fuel are expected to restrain the
growth of renewable aviation fuel market.
Nevertheless, increasing demand from
emerging regions like southeast asia are expected to create lucrative
opportunities for the renewable aviation fuel market in the forecat period. North
America is likely to dominate the renewable aviation fuel market during the
forecast period, with a majority of the demand coming from countries like the
United States and Canada.
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Based on Technology, the Hydroprocessed Esters and
Fatty Acids (HEFA) segment is expected to dominate the market during the
forecast period. Hydroprocessed Esters and Fatty Acids (HEFA), commonly known
as Hydrogenated Vegetable Oil (HVO) or Hydroprocessed Renewable Jet (HRJ), is a
type of hydrocarbon aviation fuel made from animal or vegetable oils
(triglycerides) by hydroprocessing. In 2011, hydro-processed esters and fatty
acids (HEFA) technology received certification from the American Society for
Testing and Materials (ASTM) for bio-jet fuel production. HEFA uses oleo-chemical
feedstock, such as oil and fats, for renewable fuel production.
A significant share of available
commercial volumes of bio-jet fuels comes from HEFA biojet, with several
commercial-scale facilities worldwide producing the same. However, renewable
diesel (HEFA-diesel) is also made during the process, with a larger market
scope and a higher sales price. Thus, producers are focusing on HEFA-diesel
instead of HEFA-jet. Moreover, hydrocarbon aviation fuel made from animal or
vegetable oils comes under bioenergy. According to International Renewable
Energy Agency, in 2022, the total global bioenergy capacity accounted for 148
GW, expected to grow due to its environment-friendly nature. In January 2022,
Johnson Matthey launched an innovative technology, HyCOgenTM, by converting
captured carbon dioxide (CO2) and green hydrogen into sustainable aviation fuel
(SAF) using FT technology. Such developments in the renewable aviation fuel
sector will likely increase demand for FT technology during the forecast period.
Furthermore, in December 2021, the UK
Department for Transport announced support of GBP 15 million to Advanced
Biofuel Solutions (ABSL), which was likely to work on a detailed engineering
design for a new facility in Cheshire. The plant will be used for gasification
and Fischer-Tropsch (FT) technology to convert an estimated 133,000 metric tons
of waste a year into a biocrude that can be upgraded to aviation fuel. Thus,
such investments in upcoming sustainable aviation fuel projects will likely
increase the demand for FT technology during the forecast period.
However, HEFA biojet fuel costs more
than fossil-derived jet fuels, and the potential feedstock for the HEFA is also
costly. To decarbonize the aviation sector, companies such as Boeing are
testing the technical suitability of high freezing point HEFA (HEFA+) aviation
fuel in aircraft. HEFA+ is a synthetic hydrocarbon from bio feedstock, such as
vegetable oil or waste fats.
Therefore, owing to the above points,
the HEFA segment is expected to dominate the renewable aviation fuel market
during the forecast period.
Based on Region, North america is
projected to dominate the market throughout the forecast period. North America
is one of the largest markets for the aviation industry and renewable aviation
fuel. Between 1978 and 2022, US airlines improved fuel efficiency by over 130%,
which resulted in nearly 5 billion metric tons of carbon dioxide savings.
According to the Airlines for America (A4A), the country's airlines operate
approximately 28,000 flights daily in the pre-pandemic stage. Most airline
companies in North America posted heavy financial losses in 2020 and 2021.
However, airline traffic is expected to recover during the forecast period.
Further, as crude oil prices are increasing rapidly, the demand for renewable
aviation fuel is expected to grow during the forecast period.
The Bio-Energy Technologies Office
(BETO) of the United States and the Department of Energy (DOE), supported by
Energy Efficiency and Renewable Energy (EERE), are making efforts to expand the
adoption of sustainable, domestically produced alternative fuels for
transportation and aviation to stimulate the growth of the renewable fuel
industry.
In North America, the primary policy
incentive for renewable aviation fuel production is the US Renewable Fuel
Standard (RFS), which credits refiners and fuel importers who blend renewable
fuel into transportation fuel to meet Renewable Volume Obligation standards.
Key market players in the Global Renewable
Aviation Fuel Market are:-
- TotalEnergies
SE
- Neste
Oyj
- Swedish
Biofuels AB
- Red
Rock Biofuels LLC
- Gevo
Inc.
- Honeywell
International Inc.
- Fulcrum
BioEnergy Inc.
- SG
Preston Company
- LanzaTech
Inc.
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“The global Renewable Aviation Fuel
market is driven by a combination of economic, technological, and regulatory
factors. The steady growth of the aviation industry, fueled by increasing air
travel demand, particularly in emerging markets, serves as a primary driver. As
economies expand, more people and goods require air transportation, leading to
a rising need for Renewable Aviation Fuel. Technological advancements in fuel
efficiency and the development of alternative fuels also play a pivotal role in
shaping the market. Airlines and aircraft manufacturers are continually
investing in research and development to enhance fuel efficiency and reduce
environmental impact.
Moreover, stringent environmental
regulations and a growing awareness of the aviation industry's carbon footprint
are propelling a shift towards cleaner and more sustainable Renewable Aviation
Fuels. Governments and international bodies are implementing policies to
encourage the adoption of biofuels and other environmentally friendly
alternatives. This increasing emphasis on sustainability is influencing the Renewable
Aviation Fuel market, driving innovation and investments in renewable energy
sources. Overall, the dynamic interplay of economic growth, technological
advancements, and environmental consciousness are key drivers shaping the
trajectory of the global Renewable Aviation Fuel market.” said Mr. Karan
Chechi, Research Director with TechSci Research, a research-based global
management consulting firm.
“Renewable Aviation Fuel
Market – Global Industry Size, Share, Trends, Opportunity,
and Forecast Segmented By Technology (Fischer-Tropsch (FT), Hydroprocessed
Esters and Fatty Acids (HEFA), Synthesized Iso-Paraffinic (SIP), and
Alcohol-to-Jet (AtJ)), By End-User (Commercial, Defense, and General Aviation),
By Region, By Competition 2019-2029.” has evaluated the future
growth potential of Global Renewable Aviation Fuel Market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Renewable Aviation Fuel Market.
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