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Sustainable Aviation Fuel Market Trends

Report ID: GMI7733
Published Date: Jul 2024
Report Format: PDF

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Sustainable Aviation Fuel Market Trends

Government incentives and regulations are poised to play a pivotal role in propelling the sustainable aviation fuel (SAF) market forward. With a heightened global focus on reducing carbon emissions, many governments are introducing policies supporting the production and adoption of SAF. Citing an example, in December 2023, the Biden administration revealed the blueprint for its initiative to address a challenging objective in the battle against climate change: enhancing the environmental sustainability of air travel. The plan involves offering subsidies to promote the advancement of "sustainable aviation fuels" derived from agricultural products, facilitating the use of biofuels crafted from soybeans, animal fat-derived diesel, and traditional ethanol for powering jet engines. This move aims to foster the development and adoption of eco-friendly alternatives within the aviation industry.

Innovations in feedstock sourcing, refining processes, and production scalability have contributed to making sustainable aviation fuels more economically viable. As technology continues to improve, the cost competitiveness of sustainable aviation fuels could increase, making them more attractive to the aviation industry.

Authors: Suraj Gujar, Partha Paul

Frequently Asked Questions (FAQ) :

Market size for sustainable aviation fuel was USD 952.6 million in 2023 and is expected to register over 45% CAGR from 2024-2032 due to the escalating corporate sustainability initiatives worldwide.

The bio-fuel segment held over 80% share of the sustainable aviation fuel industry in 2023 and is expected to register an appreciable CAGR from 2024-2032 owing to the imperative to reduce carbon emissions and mitigate environmental impacts.

North America held 45% share of the sustainable aviation fuel industry in 2023 and is expected to register a commendable CAGR from 2024-2032 due to the governments and regulatory bodies actively promoting sustainable practices and offering incentives in the region.

Aemetis, Inc., Alder Fuels, Fulcrum BioEnergy Inc., Gevo Inc., LanzaJet, Neste, Northwest Advanced Bio-Fuels, LLC, Preem AB, Red Rock Biofuels, Shell PLC, SkyNRG BV, and World Energy are some of the major sustainable aviation fuel companies worldwide.