Aviation Biofuel Market

Need for Sustainable Aviation Fuel to Grow Critical

Aviation, among the world’s fastest expanding sectors, predominantly receives a push from the incessantly swelling population of middle-class travellers. Rising penetration of low-cost carriers, and the mounting number of international travellers are collectively holding the demand up. Aviation fuel is particularly gaining impetus from the consistent fluctuations in oil and gas prices. A range of commercial and military applications in emerging response to air traffic, and aircraft fleet remains the key factor uplifting demand for aviation fuel. As far as the growth of global aviation fuel market is concerned, demand for air cargo transport in terms of volume and freight traffic plays a vital role.

However, the industry has been one of the top greenhouse gas (GHG) emitters and is thus bound to put its best foot forward in terms of using renewable fuel for aircrafts. In line with several nations agreeing with the Paris Accord, and setting their own emission targets, opportunities are likely to flock in aviation biofuel market. The market space will witness flooding investments through the renewables sector.

Biofuel to Replace Conventional Fuel in Commercial Aviation Sector

An increasing rate of replacement of conventional aviation fuels with biofuel alternatives in commercial aviation sector is expected to stimulate demand in global aviation biofuel market in future. Application in military aviation has however not shown any strong indications of biofuel penetration, which continues to be a challenge facing key market participants. While the key technologies that are being used for biofuel production include Fischer-tropsch, and hydrogenated vegetable oil production (popularly known as HEFA) technology, the latter will most likely remain dominant in long run because of the primary source of raw material for first-gen aircraft biofuel manufacturing. Governments have been emphasising bio-jet fuel promotions, which is working to the advantage of the soaring popularity of this particular technology. Moreover, liquid biofuels currently lead the preferences of end users, whereas gaseous biofuels, and electrification follow.

The Challenges Ahead

As the world accelerates its journey toward a carbon-free future through slashed carbon emissions, biofuels have been taking over the conventional aviation fuels over the recent past. aviation biofuel market is thus poised for a strong growth outlook in future. Regulatory standardisation will remain critical to the build-up, and growth of the market. Worldwide restriction on travelling, including international travel amid the COVID-19 pandemic situation led to a heavy setback in entire industry. Aviation biofuel market, a relatively budding sector, also suffered the heat of the situation to a large extent. With aviation industry’s brisk dynamic revival post-pandemic, the market also awaits a strong growth prospect in the near future. Cost premium when compared with conventional jet fuel will however continue to be a longstanding challenge facing long-term progress of the aviation biofuel market.

North America Remains the Global Leader, Europe Holds Opportunities

Owing to significant demand generation from the US, and Canada, and a substantial share of the US civil aviation industry, North America will most likely retain dominance as the market here will continue to receive an impetus from the Federal Aviation Administration (FAA). On the other hand, aviation biofuel has been thriving as a trend among the leading European refiners. Europe will thus remain a significant market. Developing nations of Asia Pacific are also projected to reflect some high-potential opportunities, led by China.

Aviation Biofuel Market Stands Far Away from Wide Commercialisation

Although the market is nearing the commercial stage, the biofuel is yet to become widely commercialised as challenges prevail in form of high production costs, limited availability of desired feedstocks, and uncertainty hovering over the sustainability criteria. The visible lack of national and international political and policy support is also deterring rapid market growth. Despite the industry’s commitment to carbon emission reduction by 50% between 2005 and 2050 is giving a solid push to the prospects of aviation biofuel market, the market is still less than 0.1% of the global aviation fuel consumption. This indicates the critical need for raising SAF availability to meet ballooning demand worldwide.

The market for aviation biofuel will largely benefit from the development of newer technologies, and introduction of supportive national policy mechanisms that would facilitate SAF availability and consumption. Besides the US, and the EU, the UK, the Netherlands, and Norway have an established policy mechanism that promotes SAF adoption.

Making of Sustainable Feedstock Menus Underway in the US

Using key resources like corn grain, algae, oil seeds, agricultural and forestry residue, and oils fats and greases, around a billion dry tons of biomass is estimated to be sustainably gathered each year in the US alone. While wastes like wood mil waste, we waste, and municipal solid waste would also play an important role in this process, all this could be sufficiently used in formation of desired biomass volumes as huge as 50-60 billion gallons.

Research has been afoot around the innovative, and efficient sustainable feedstock menus that would eventually cater to the estimated aviation biofuel demand of the US aviation industry. Besides lowering GHG emissions, and improving the overall aircraft performance, the sustainable feedstock strategy will create additional revenue generation opportunities for farmers. In addition to their wider availability, these feedstocks come at an exceptionally less cost, which highlights their viable application potential in aviation biofuel market.

Key Participants in Global Aviation Biofuel Market Competition

Neste Oyj, Vega Biofuels, Red Rock Biofuels, PetroSun, Inc., GEVO, Honeywell International Inc., Archer Daniels Midland Company, Targray Technology International Inc., KFS Biodiesel GmbH & Co. KG, Novozymes, Argent Energy, Shirke Energy, Enerkem, POET LLC, LanzaTech, Amyris Fuels, ZeaChem, TotaEnergies SE, SG Preston Company, and Swedish Biofuels AB represent some of the prominent players participating in the competition landscape. Neste, Aemetis, PKN Orlen, and OMV are currently some of the most prominent sustainable fuel producers. Joint ventures, supply agreements, contractual deals, and production partnerships are likely to be trending the competition landscape.

The Aviation Biofuel Market Has Been Segmented As Below:

By Technology

• Hydrogenated Vegetable Oil
• Fischer-Tropsch

By Application

• Commercial Aviation
• Military Aviation

By Region

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa

Key Elements Included In The Study: Global Aviation Biofuel Market

• Aviation Biofuel Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2021
• Volume Consumption at Regional and Country Level, 2022 - 2029
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2022 - 2029
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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Disclaimer:

• The segmentation/company profiles/countries depicted above may vary in the actual report.