Renewable/Bio Jet Fuel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Conversion Pathways (Fischer Tropsch Synthetic 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), By Region, By Competition, 2020-2030F

Market Overview

Global Renewable/Bio Jet Fuel Market was valued at USD 18.23 billion in 2024 and is expected to reach USD 36.35 billion by 2030 with a CAGR of 12.02% during the forecast period. The Renewable/Bio Jet Fuel Market refers to the global industry focused on the production, distribution, and adoption of sustainable aviation fuels (SAFs) derived from renewable and biological sources such as used cooking oil, vegetable oils, algae, waste biomass, and agricultural residues. These bio-based jet fuels serve as a sustainable alternative to conventional fossil-based aviation fuels, aiming to reduce greenhouse gas (GHG) emissions, enhance energy security, and comply with increasingly stringent environmental regulations imposed by international aviation bodies such as the International Civil Aviation Organization (ICAO) and national regulatory frameworks. 

Key Market Drivers

Stringent Environmental Regulations and Carbon Reduction Targets

Governments and regulatory bodies worldwide are implementing stringent environmental policies to curb carbon emissions, a key driver of the Renewable/Bio Jet Fuel market. The aviation sector is a significant contributor to greenhouse gas emissions, and with growing concerns about climate change, regulatory frameworks such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) by the International Civil Aviation Organization (ICAO) are compelling airlines to reduce their carbon footprint. Additionally, national policies such as the European Union’s Renewable Energy Directive (RED II) and the U.S. Renewable Fuel Standard (RFS) mandate the integration of sustainable aviation fuels (SAFs) into the energy mix.

These regulations impose penalties on excessive carbon emissions while incentivizing the use of alternative fuels with lower lifecycle emissions. Airlines are also facing increasing pressure from environmental advocacy groups, investors, and consumers who demand greener travel options. Consequently, aviation companies are investing heavily in biofuels to comply with evolving emission standards and avoid financial penalties associated with carbon taxation. The demand for Renewable/Bio Jet Fuel is further supported by government subsidies, grants, and research funding aimed at accelerating the production and adoption of SAFs. This regulatory push is driving technological advancements in biofuel production, including innovations in feedstock utilization and fuel processing technologies, making Renewable/Bio Jet Fuel more viable and commercially attractive. Additionally, some countries have introduced blending mandates, requiring a certain percentage of biofuels in aviation fuel supplies, which is further boosting market growth. With the aviation sector striving for net-zero emissions by 2050, compliance with these regulatory measures will continue to propel the demand for Renewable/Bio Jet Fuel, positioning it as a critical component of the future energy landscape for air transportation. As of 2024, 196 countries have signed the Paris Agreement, committing to limit global temperature rise to well below 2°C, with efforts to limit it to 1.5°C. Over 130 countries have set net-zero emissions targets, with many aiming for 2050, while others, including China and India, have set targets for 2060 and 2070, respectively.

Rising Investments in Sustainable Aviation Fuel (SAF) Production

The increasing financial commitment from both public and private sectors towards the development of Sustainable Aviation Fuel (SAF) is significantly driving the Renewable/Bio Jet Fuel market. Governments, oil companies, airline operators, and biofuel producers are actively investing in the research, production, and distribution of SAFs, recognizing their importance in achieving long-term sustainability goals in the aviation industry. Leading energy companies, such as Neste, BP, and Shell, are expanding their bio-refinery capacities to produce renewable jet fuel from feedstocks such as used cooking oil, agricultural residues, algae, and municipal waste. The involvement of global financial institutions, venture capital firms, and green investment funds in SAF projects is further accelerating the commercialization of biofuels. Airlines are also entering strategic partnerships with biofuel producers to secure long-term fuel supply agreements, ensuring the stability of renewable fuel availability and pricing.

Advancements in production technologies, such as hydroprocessed esters and fatty acids (HEFA), Fischer-Tropsch (FT), and alcohol-to-jet (ATJ) conversion processes, are improving the efficiency and cost-effectiveness of SAF production. Governments are actively supporting these efforts through financial incentives, including tax credits, loan guarantees, and grants for companies involved in SAF development. The growing investments in bio-refineries and fuel distribution infrastructure, coupled with airline commitments to incorporate SAFs into their operations, are significantly enhancing the scalability and affordability of Renewable/Bio Jet Fuel. As more production facilities come online and economies of scale improve, the cost competitiveness of biofuels relative to conventional jet fuel will increase, making them a mainstream energy source in aviation.

Growing Corporate and Consumer Demand for Sustainable Air Travel

The increasing awareness and demand for environmentally friendly air travel among corporations and consumers are accelerating the growth of the Renewable/Bio Jet Fuel market. With sustainability becoming a key priority across industries, multinational corporations with significant travel footprints are committing to reducing their aviation-related carbon emissions. Companies such as Microsoft, Amazon, and Google have launched initiatives to offset their carbon impact by investing in Sustainable Aviation Fuel (SAF) programs and purchasing biofuel credits. Many corporate travel policies now include mandates to prioritize airlines that use SAFs, influencing airline procurement strategies. Additionally, the rise of environmentally conscious travelers, particularly among millennials and Gen Z consumers, is reshaping the airline industry.

Passengers are increasingly willing to pay a premium for flights powered by renewable fuels, and airlines are responding by marketing SAF-powered flights as a sustainable choice. Some airlines have even introduced voluntary carbon offset programs, allowing customers to contribute towards SAF purchases. Furthermore, international aviation alliances and non-profit organizations are promoting sustainable flying practices and collaborating with airlines to accelerate SAF adoption. As corporate sustainability commitments grow and consumer preferences shift towards greener travel options, airlines will be compelled to integrate more Renewable/Bio Jet Fuel into their operations to maintain market competitiveness and brand reputation. The increasing consumer-driven demand for sustainability in air travel is expected to sustain long-term market growth and drive continuous innovation in biofuel production and deployment. Around 61% of travelers are more likely to choose a destination with environmentally friendly practices, and 70% of them are actively looking for more sustainable travel options.

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Key Market Challenges

High Production Costs and Limited Economies of Scale

The Renewable/Bio Jet Fuel market faces a significant challenge in terms of high production costs, which hinder its competitiveness against conventional fossil-based jet fuel. The cost of producing bio jet fuel remains substantially higher due to several factors, including expensive feedstock acquisition, complex refining processes, and limited production capacity. Unlike traditional petroleum-based jet fuel, which benefits from well-established supply chains and large-scale refineries, bio jet fuel production relies on feedstocks such as used cooking oil, agricultural residues, and algae-derived lipids, which are often expensive and inconsistent in supply. The processing of these raw materials into bio jet fuel requires advanced technological interventions, including hydroprocessing and Fischer-Tropsch synthesis, which add to the operational and capital expenditure. Additionally, many biofuel production facilities operate at a much smaller scale compared to conventional refineries, leading to a lack of economies of scale that could otherwise drive down costs. The absence of sufficient large-scale investments further exacerbates this challenge, as funding for bio jet fuel projects remains uncertain due to long payback periods and regulatory hurdles.

While government incentives and subsidies in certain regions attempt to bridge the cost gap, these financial aids are often inconsistent and subject to policy changes, making long-term investments in bio jet fuel a risk for many producers. Furthermore, despite advancements in biofuel technology, the overall yield and efficiency of bio jet fuel production remain lower than fossil fuel alternatives, adding to cost inefficiencies. Airlines, which already operate on tight margins, are often reluctant to adopt bio jet fuel at scale unless prices become competitive with traditional jet fuel. This reluctance further reduces demand and discourages large-scale production, perpetuating a cycle where high costs prevent widespread adoption. Even as regulatory bodies push for greener aviation solutions, the economic viability of bio jet fuel remains uncertain, delaying the industry’s transition to sustainable aviation fuel alternatives. Addressing this challenge will require substantial investments in research and development, advancements in feedstock sourcing, and the construction of large-scale production facilities that can achieve cost efficiencies. Until these structural barriers are overcome, the high cost of bio jet fuel will continue to be a major impediment to its widespread adoption in the aviation sector.

Feedstock Supply Chain Constraints and Sustainability Concerns

A major challenge for the Renewable/Bio Jet Fuel market is the availability, scalability, and sustainability of feedstock sources. Unlike conventional jet fuel, which is derived from crude oil and has a well-established global supply chain, bio jet fuel production depends on various organic feedstocks, including vegetable oils, waste fats, algae, and biomass. The availability of these raw materials is often inconsistent, leading to supply chain constraints that impact production volumes and cost stability. One of the key concerns is competition for feedstocks with other industries such as food production and biodiesel manufacturing, which creates price volatility and potential shortages. For instance, crops like soybean and palm oil, which are commonly used for biofuel production, are also critical for food supplies, leading to ethical and economic concerns about their diversion for fuel purposes. Additionally, the cultivation of energy crops for biofuel raises sustainability issues, as large-scale farming often leads to deforestation, loss of biodiversity, and increased carbon emissions associated with land-use changes.

In some cases, the environmental benefits of bio jet fuel are negated by the emissions generated during feedstock cultivation, transportation, and processing. Furthermore, the reliance on waste oils and fats as feedstocks presents another set of challenges, as these materials are available in limited quantities and require extensive refining to meet aviation-grade fuel standards. The logistics of collecting, transporting, and processing these waste materials add to the complexity of bio jet fuel production, increasing operational costs. Moreover, the regulatory landscape surrounding feedstock sustainability is evolving, with stringent certification requirements such as the Roundtable on Sustainable Biomaterials (RSB) and International Sustainability & Carbon Certification (ISCC). While these frameworks aim to ensure responsible sourcing, compliance with such standards adds additional regulatory burdens and costs for producers.

Geopolitical factors and trade policies further impact feedstock availability, as export restrictions, tariffs, and supply chain disruptions can create fluctuations in raw material supply. Without a stable and scalable feedstock supply, the Renewable/Bio Jet Fuel market faces difficulty in achieving consistent production levels that can support widespread adoption. Addressing these feedstock challenges will require diversified sourcing strategies, enhanced waste-to-fuel technologies, and the development of next-generation biofuels that utilize non-food feedstocks such as algae and synthetic biology-based solutions. Until these advancements are realized, the constraints in feedstock supply and sustainability concerns will continue to pose a significant challenge to the growth of the Renewable/Bio Jet Fuel market.

Key Market Trends

Rising Adoption of Sustainable Aviation Fuel (SAF) Policies and Incentives

Governments and international aviation regulatory bodies are increasingly implementing policies and financial incentives to accelerate the adoption of renewable or bio-based jet fuels, often referred to as Sustainable Aviation Fuel (SAF). With the aviation industry accounting for approximately 2-3% of global CO₂ emissions, reducing its carbon footprint has become a top priority. In response, organizations such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) have set ambitious decarbonization targets, including a net-zero emission goal by 2050. Policies such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) aim to curb aviation emissions by mandating the use of SAF. Additionally, countries like the United States have introduced the Inflation Reduction Act (IRA), which provides tax credits for SAF production, while the European Union’s ReFuelEU Aviation initiative sets minimum SAF blending mandates for airlines.

Financial support through grants, subsidies, and loan guarantees is further driving investments in SAF production capacity. As a result, fuel producers, airlines, and technology firms are forming strategic partnerships to scale up SAF production, improve cost-efficiency, and meet the growing regulatory requirements. These supportive policies have also encouraged major oil companies and biofuel startups to invest in new refining technologies, including Fischer-Tropsch synthesis, hydro-processed esters and fatty acids (HEFA), and alcohol-to-jet pathways. However, policy inconsistencies across different regions remain a challenge, making international coordination crucial for large-scale adoption. With increased regulatory support, SAF production is expected to grow significantly, helping airlines transition toward a more sustainable future while mitigating long-term compliance risks associated with fossil-based jet fuels.

Growing Airline Commitments and Corporate Partnerships for SAF Adoption

Airlines and corporate stakeholders are playing an increasingly pivotal role in driving the adoption of renewable jet fuel through long-term purchasing agreements, joint ventures, and sustainability initiatives. Major airlines such as United Airlines, Delta Air Lines, and British Airways have committed to increasing their SAF usage as part of their broader net-zero carbon strategies. Many have entered into multi-year SAF procurement agreements with producers like Neste, Gevo, and World Energy to secure a stable fuel supply. Additionally, corporate travelers and logistics companies are investing in SAF through voluntary carbon offset programs and "book-and-claim" systems, where businesses can pay for SAF credits to lower their aviation-related emissions without directly using the fuel.

The emergence of corporate sustainability pledges, including the Science-Based Targets initiative (SBTi) and the Clean Skies for Tomorrow coalition, is further reinforcing demand for SAF in business travel and air freight operations. Furthermore, industry collaborations between airlines, fuel producers, and technology providers are leading to innovations in SAF production, such as the development of synthetic fuels from green hydrogen and captured CO₂. Some airports, including Los Angeles International Airport (LAX) and Amsterdam’s Schiphol Airport, have also started integrating SAF into their fueling infrastructure, signaling a broader industry shift toward sustainable aviation. However, high production costs and limited supply remain significant hurdles. Despite these challenges, growing commitments from airlines and corporate stakeholders are expected to accelerate SAF adoption, reducing aviation’s environmental impact while fostering a more resilient and sustainable fuel ecosystem.

Segmental Insights

Conversion Pathways Insights

The Fischer TropschSynthetic Paraffinic Kerosene (FT-SPK) segment held the largest Market share in 2024. The Fischer-Tropsch Synthetic Paraffinic Kerosene (FT-SPK) segment is a key driver in the Renewable/Bio Jet Fuel Market, fueled by the aviation industry's push for sustainable fuel alternatives, stringent carbon emission regulations, and growing investments in advanced bio-refining technologies. The FT-SPK production process utilizes biomass, municipal solid waste, and other renewable feedstocks to create a low-carbon alternative to conventional jet fuels, making it a highly attractive solution for airlines aiming to meet net-zero emission targets. Regulatory frameworks such as ICAO's CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and national mandates in the U.S., Europe, and Asia-Pacific are accelerating the adoption of FT-SPK, as governments incentivize sustainable aviation fuel (SAF) production through subsidies and tax credits. Additionally, the increased focus on energy security and reducing dependence on fossil fuels is propelling the demand for FT-SPK, particularly as it offers high energy density and compatibility with existing aviation infrastructure without requiring engine modifications.

Technological advancements in gasification and Fischer-Tropsch synthesis are enhancing process efficiency, reducing costs, and improving fuel yields, making FT-SPK more economically viable. Furthermore, collaborations between airlines, fuel producers, and research institutions are fostering innovation, with major aviation stakeholders signing long-term agreements to secure FT-SPK supply. Airlines such as Lufthansa, United Airlines, and KLM have already initiated trials and commercial flights powered by SAF, demonstrating the feasibility and scalability of FT-SPK. The rise in corporate sustainability commitments and increasing pressure from environmental groups are further compelling airline operators to integrate FT-SPK into their fuel mix. Additionally, the availability of carbon credits and emissions trading mechanisms is providing financial incentives for the adoption of FT-SPK.

As supply chain infrastructure develops and production scalability improves, the cost of FT-SPK is expected to decline, making it more accessible to a broader range of airlines. Governments and industry players are investing in large-scale biorefineries dedicated to Fischer-Tropsch synthesis, further strengthening the market growth trajectory. The expansion of feedstock sources, particularly from waste-based biomass, is also a critical factor driving the market, as it ensures sustainability while mitigating concerns over feedstock competition with food production. As the aviation industry continues its transition towards a low-carbon future, the FT-SPK segment is poised for substantial growth, backed by policy support, technological innovation, and increasing airline commitments to SAF adoption.

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Regional Insights

Largest Region

North America region held the largest market share in 2024. The Renewable/Bio Jet Fuel Market in North America is experiencing significant growth, driven by a combination of stringent regulatory policies, increasing sustainability commitments from the aviation sector, and advancements in biofuel production technologies. One of the primary drivers is the strong regulatory support and government incentives aimed at reducing carbon emissions in aviation. The U.S. Renewable Fuel Standard (RFS) and the Low Carbon Fuel Standard (LCFS) in California encourage the use of bio-based aviation fuels by providing tax credits, subsidies, and blending mandates, making renewable jet fuel more competitive with conventional fossil-based jet fuel. Additionally, Canada’s Clean Fuel Regulations promote the adoption of lower-carbon-intensity fuels, further boosting the market.

Another key factor fueling the market is the growing commitment from airlines and aerospace companies to achieve carbon neutrality. Major carriers, such as United Airlines, Delta, and American Airlines, have pledged to significantly increase their use of Sustainable Aviation Fuel (SAF) to meet net-zero carbon emissions targets by 2050, creating a strong demand for renewable/bio jet fuels. Moreover, aircraft manufacturers like Boeing and Airbus are actively supporting SAF adoption by ensuring compatibility with current and next-generation aircraft, further facilitating market expansion. The expansion of bio-refineries and feedstock availability is also playing a crucial role, as companies invest in new facilities and technology to increase production capacity. The presence of feedstock sources such as used cooking oil, agricultural waste, and algae-based biofuels in North America provides a sustainable supply chain for SAF production, reducing dependency on imported fossil fuels. Additionally, advancements in Hydroprocessed Esters and Fatty Acids (HEFA), Fischer-Tropsch (FT), and Alcohol-to-Jet (ATJ) technologies have significantly improved production efficiency and cost-effectiveness, making bio jet fuel more viable for large-scale commercialization. Furthermore, the rising pressure from environmental groups and consumers to reduce aviation emissions has encouraged airports and airlines to integrate SAF into their operations, with major airports like Los Angeles International Airport (LAX), San Francisco International Airport (SFO), and Chicago O’Hare actively incorporating bio jet fuels into their fuel supply chain.

Corporate sustainability initiatives also play a crucial role in driving the market, as companies seek to lower their carbon footprints and comply with ESG (Environmental, Social, and Governance) standards, leading to partnerships between biofuel producers and major corporations to develop and scale SAF solutions. The growing interest from investors and venture capital firms in biofuel startups and research institutions has accelerated the commercialization of advanced biofuels, providing the financial support necessary to expand production capabilities. In addition, the volatility of crude oil prices and the geopolitical risks associated with fossil fuel dependency are pushing airlines to explore alternative fuel sources that offer more stable pricing and long-term energy security. Overall, the North American Renewable/Bio Jet Fuel Market is being propelled by a convergence of regulatory mandates, corporate commitments, technological advancements, and increasing consumer awareness, creating a robust ecosystem for the widespread adoption and commercialization of Sustainable Aviation Fuels (SAF) in the region.

Emerging Region

South America is the emerging region in Renewable/Bio Jet Fuel Market. The Renewable/Bio Jet Fuel Market in South America is experiencing significant growth, driven by a combination of government policies, increasing environmental concerns, and advancements in biofuel production technologies. One of the primary drivers is the region’s strong commitment to reducing carbon emissions in the aviation sector, as countries align with the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Governments across South America, particularly in Brazil, Argentina, and Colombia, are implementing policies that encourage the production and adoption of sustainable aviation fuels (SAF) to meet their net-zero targets. Brazil, a global leader in biofuels, benefits from its well-established ethanol industry, which provides a strong foundation for bio-based jet fuel production.

The country’s abundant feedstock availability, including sugarcane and soybean oil, further enhances its capacity to scale SAF production. Additionally, Argentina and Colombia are leveraging their vast agricultural resources and expanding their biofuel refining infrastructure to support the industry. Another key factor propelling market growth is the increasing investment in research and development (R&D) of advanced biofuels, with South American companies and international stakeholders collaborating on innovative conversion technologies, such as hydroprocessed esters and fatty acids (HEFA) and alcohol-to-jet (ATJ) pathways. These advancements are improving fuel efficiency, reducing production costs, and enhancing the commercial viability of renewable jet fuels. Furthermore, major airlines operating in the region, such as LATAM and Avianca, are committing to sustainability initiatives, signing agreements with biofuel producers to integrate SAF into their operations and reduce reliance on conventional fossil-based aviation fuels. The rise in corporate sustainability mandates and growing consumer awareness about the environmental impact of air travel are also pushing the demand for renewable jet fuels, as airlines seek to enhance their brand reputation and comply with stringent emission regulations.

International collaborations and financial incentives from global organizations, such as the World Bank and the Inter-American Development Bank (IDB), are facilitating the development of large-scale bio-refineries and biofuel supply chains in South America. The region’s strategic geographic location further supports market expansion, with South America emerging as a potential biofuel export hub for international markets, particularly North America and Europe, where demand for SAF is surging due to stringent regulatory frameworks. However, despite these strong market drivers, challenges such as high production costs, infrastructure limitations, and feedstock supply chain complexities need to be addressed to accelerate widespread adoption. The ongoing expansion of public-private partnerships, technological advancements, and policy support are expected to drive continuous growth in the Renewable/Bio Jet Fuel Market in South America, positioning the region as a key player in the global sustainable aviation fuel industry.

Recent Developments

• In May 2023, Twelve and Etihad Airways, the national carrier of the UAE, entered into a Memorandum of Understanding (MoU) to advance E-Jet fuel—Twelve’s sustainable aviation fuel (SAF) derived from CO₂ and renewable energy. The agreement outlines plans for an international demonstration flight and a strategic supply roadmap aligned with Etihad’s sustainability objectives.
• In May 2023, Neste and ITOCHU signed a licensing agreement designating ITOCHU as the official distributor of Neste MY Renewable Diesel in Japan.
• Cosmo Energy Holdings is set to begin Japan's first domestic production of sustainable aviation fuel in April 2025, marking a significant step toward the country's target of replacing 10% of its jet fuel with a cleaner alternative. 
• In March 2025, Honeywell announced that Taiyo Oil Co., Ltd. has selected Honeywell UOP's Ethanol to Jet (ETJ) technology to produce Sustainable Aviation Fuel (SAF) at its Okinawa facility in Japan. This will be the first ETJ license and basic engineering design from Honeywell UOP in the Asia Pacific region, with a production goal of 200 million liters annually.

Key Market Players

• Gevo, Inc.
• Red Rock Biofuels LLC
• Honeywell International Inc.
• Virent Inc.
• Fulcrum BioEnergy, Inc.
• Neste Oil Corporation
• AltAir Paramount LLC
• S.G. Preston Company
• Eni SpA Total S.A.
• BP PLC

Report Scope:

In this report, the Global Renewable/Bio Jet Fuel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Renewable/Bio Jet Fuel Market, By Conversion Pathways:

o   Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)

o   Hydroprocessed Esters and Fatty Acids (HEFA)

o   Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (SIP)

o   Alcohol to Jet SPK (ATJ-SPK)

• Renewable/Bio Jet Fuel Market, By Feedstock:

o   Agriculture Crops

o   Aquaculture Crops

o   Energy Crops

o   Multiple Solid Waste

o   Others  

• Renewable/Bio Jet Fuel Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Renewable/Bio Jet Fuel Market.

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Company Information

• Detailed analysis and profiling of additional Market players (up to five).

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