July 22, 2024

Projected biofuel blending to boost the growth of Renewable/Bio Jet Fuel Market

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 a type of biofuel used for sustainable jet fuel production. It is produced from feedstocks such as algae, waste oils and fats, and camelina. Renewable jet fuel has lower carbon footprint compared to traditional jet fuel and helps reduce greenhouse gas emissions. Being a drop-in fuel, it is compatible with existing aircraft infrastructure and operations. The increasing focus on reducing carbon footprints and energy security is propelling the demand for renewable jet fuels globally.

Market key trends:
One of the major trends in the renewable/bio jet fuel market is increasing blending targets by airline companies and governments. For instance, the EU aims to meet 10% of European aviation fuel needs with sustainable alternative fuels by 2030 under its ReFuelEU aviation initiative. Scandinavian airline SAS aims to use 1 million litres of biofuel annually by 2030. Growing environmental concerns due to high emissions from air travel is also compelling airline companies to switch to renewable fuels. Furthermore, advances in production technologies are helping lower the costs of bio jet fuels, improving their competitiveness against conventional jet kerosene. Ongoing research and development of advanced feedstocks such as algae is another key trend expected to support market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: Low – The renewable/bio jet fuel market requires high capital investment and strict regulations act as a barrier for new players.

Bargaining power of buyers: Moderate – A few major airlines control a significant share of the market. However, increasing concern for sustainability provides opportunities to renewable fuel producers.

Bargaining power of suppliers: Moderate – Suppliers of petroleum-based jet fuel have significant influence. However, suppliers of biofuel feedstock such as fats, oils and greases have moderate to low influence.

Threat of new substitutes: Moderate – Electric and hydrogen-powered aircraft are developing but renewable/bio jet fuel is the immediate substitute for conventional jet fuel.

Competitive rivalry: High – The market is dominated by few international players. Intense competition exists based on production cost, technology, and customer service.

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 government regulations mandating sustainable aviation fuel (SAF) blending targets. North America currently dominates the market owing to supportive governmental policies and presence of key industry players in the US and Canada.

Regional analysis

Asia Pacific is expected to be the fastest growing market for renewable/bio jet fuel during the forecast period. burgeoning aviation industry in China, India along with governmental initiatives to adopt alternative fuels will drive the market in the region. The European region also offers lucrative opportunities for market players and is expected to maintain its leading position with EU renewable energy directive promoting the usage of advanced biofuels.

Key players

Key players operating in the renewable/bio jet fuel market are 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. Gevo, Inc. is one of the leading producers working towards commercialization of isobutanol-derived renewable jet fuel.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it