Sustainable Aviation Fuel market is projected to grow at a CAGR of 44.5% by 2034: Visiongain

Visiongain has published a new report entitled Sustainable Aviation Fuel Market Report 2024-2024: Forecasts by Fuel Type (Hydrogen Fuel Cell, Biofuel, Power to Liquid, Gas to Liquid), by Blending Capacity (Below 30%, 30% to 50%, Above 50%), by Biofuel Manufacturing Technology (HFS-SIP, ATJ-SPK, FT-SPK, HEFA-SPK), by Platform (Commercial Aviation, Military Aviation, Business & General Aviation, Unmanned Aerial Vehicle) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.

The sustainable aviation fuel market was valued at US$1,025.1 million in 2023 and is projected to grow at a CAGR of 44.5% during the forecast period 2024-2034.

Increasing Investment Opportunities for Sustainable Aviation Fuel (SAF)

The increasing availability of investment and funding opportunities for SAF producers and suppliers. As awareness of climate change and the need for decarbonization grows, investors are increasingly prioritizing sustainable and socially-responsible investment opportunities, including those in the renewable energy and clean transportation sectors. For instance, in November 16, 2023, Macquarie Asset Management announced an initial investment of up to €175 million (US$189.3 million) in SkyNRG, through the Macquarie GIG Energy Transition Solutions (MGETS) Fund, aimed at supporting the growth of Sustainable Aviation Fuels (SAF).

This investment, led by Macquarie's specialist Green Investments team, will facilitate SkyNRG's expansion and help it achieve its goal of becoming a major SAF producer. SkyNRG plans to establish dedicated SAF facilities in Europe and the US by 2030, collaborating with strategic partners for offtake. Notably, SkyNRG has already secured partnerships with KLM Royal Dutch Airlines and Boeing, with anticipated long-term SAF purchase commitments amounting to up to €4 billion (US$4.3 billion).

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How has COVID-19 had a Significant Negative Impact on the Sustainable Aviation Fuel Market?

The COVID-19 pandemic had a mixed impact on the sustainable aviation fuel (SAF) industry. Initially, the aviation industry faced a significant downturn as travel restrictions and lockdowns led to a drastic reduction in flight operations. This downturn affected SAF demand and production, as airlines scaled back operations and prioritized cost-saving measures over sustainability initiatives. However, the pandemic also highlighted the importance of environmental sustainability and resilience in the aviation sector. As recovery efforts began and airlines looked towards rebuilding operations, there was renewed interest in SAF as a key component of sustainability strategies. Governments and industry stakeholders recognized the need to prioritize green recovery measures, including investments in SAF production and infrastructure.

The pandemic also spurred innovation and collaboration in the SAF sector. Companies accelerated research and development efforts to improve SAF production processes, reduce costs, and enhance scalability. Partnerships and collaborations between airlines, fuel producers, and governments were forged to drive SAF adoption and support industry recovery with a focus on sustainability.

Overall, while the initial impact of COVID-19 was challenging for the SAF industry, it also catalyzed resilience, innovation, and renewed commitment to sustainability, positioning SAF as a critical component of the aviation sector's long-term sustainability goals.

How will this Report Benefit you?

Visiongain’s 286-page report provides 112 tables, 161 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the sustainable aviation fuel market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for sustainable aviation fuel market. Get financial analysis of the overall market and different segments including fuel type, blending capacity, biofuel manufacturing technology, and platform and capture higher market share. We believe that there are strong opportunities in this fast-growing sustainable aviation fuel market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Technological Advancements and Innovation in SAF Processes

Technological advancements and innovations in SAF production processes are accelerating market growth by enhancing the efficiency, scalability, and cost-effectiveness of SAF production. Significant investments in research and development are driving improvements in feedstock conversion technologies, such as Fischer-Tropsch synthesis, hydro processing, and pyrolysis, enabling the production of SAF from a wide range of sustainable feedstocks. For instance, in April 2024, Honeywell announced that its Fischer-Tropsch (FT) Unicracking hydrocracking technology can convert biomass, such as crop residue, wood, and food waste, into sustainable aviation fuel (SAF). DG Fuels will employ this technology at its SAF facility in Louisiana, with a production capacity of 13,000 barrels per day (b/d) starting in 2028.

Environmental Sustainability and Decarbonization Initiatives

Increasing awareness of environmental issues and corporate sustainability goals are driving airlines, aircraft manufacturers, and other aviation stakeholders to prioritize the adoption of SAF as part of their sustainability strategies. Pressure from consumers, investors, and regulatory bodies to reduce carbon emissions and mitigate the environmental impact of air travel is prompting airlines to invest in SAF as a key component of their decarbonization efforts. For instance, in March 2024, International Airlines Group (IAG) announced its largest SAF (785,000 tonnes) purchase agreement with e-SAF (power-to-liquid) producer Twelve. This fuel, made from carbon dioxide, water, and renewable energy sources, is expected to reduce lifecycle greenhouse gas emissions by up to 90% compared to conventional jet fuel. The agreement is set to support IAG's five European airlines, namely British Airways, Iberia, Aer Lingus, Vueling, and LEVEL, in their sustainability efforts.

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Where are the Market Opportunities?

Market Expansion and Collaboration on Sustainable Aviation Fuel (SAF) Supply

As awareness of climate change and the need for decarbonization grows, countries around the world are increasingly prioritizing the transition to sustainable aviation fuels as part of their climate mitigation strategies. Partnerships between countries, airlines, and industry stakeholders facilitate technology transfer, capacity building, and investment in SAF projects, particularly in regions with limited resources or infrastructure for SAF production. By expanding the global market for SAF and promoting international cooperation, industry stakeholders can unlock new opportunities for market growth and accelerate the transition to a more sustainable aviation future. For instance, in in March 2024, Neste Oyj initiated the supply of sustainable aviation fuel (SAF) to Emirates at Amsterdam Airport Schiphol, extending the partnership announced between the two companies in October last year. They plan to supply over 6,000 tons (equivalent to 2 million gallons) of blended SAF into the fuelling system at Amsterdam Airport Schiphol throughout 2024.

Competitive Landscape

The major players operating in the sustainable aviation fuel market are Aemetis, Inc., Avfuel Corporation, Ballard Power Systems, Eni SPA, Fulcrum BioEnergy, Inc., Gevo Inc., LanzaTech, Neste Oyj, Northwest Advanced Biofuels, LLC., OMV Aktiengesellschaft, Red Rock Biofuels, SKYNRG, TotalEnergies SE, Velocys. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, agreement, regional business expansion, and new product launch.

Recent Developments

  • On 24th January 2024, LanzaJet unveiled the Freedom Pines Fuels facility, the world’s first ethanol-based alcohol-to-jet sustainable aviation fuel (SAF) commercial production plant. With the completion of this facility, LanzaTech, its subsidiary LanzaJet, Inc., and their partners, will optimize the process for producing sustainable aviation fuel (SAF) and reduce the cost of producing jet fuel renewable ethanol.
  • On 22nd January 2024, Eni SPA signed Letter of Intent (LOI) agreement with Ryanair for the long-term supply of Enilive sustainable aviation fuel (SAF). The agreement between Enilive and Ryanair allows Ryanair to access up to 100,000 tons (33 million gallons) of Sustainable Aviation Fuel (SAF) from 2025 to 2030. This amount of SAF is equivalent to fueling 20,000 flights from Milano Malpensa Airport to Dublin, showcasing a significant commitment to sustainability and reducing carbon emissions in aviation.

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Visiongain is one of the fastest-growing and most innovative independent market intelligence providers around, the company publishes hundreds of market research reports which it adds to its extensive portfolio each year. These reports offer in-depth analysis across 18 industries worldwide. The reports, which cover 10-year forecasts, are hundreds of pages long, with in-depth market analysis and valuable competitive intelligence data. Visiongain works across a range of vertical markets with a lot of synergies. These markets include automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors. Our customised and syndicated market research reports offer a bespoke piece of market intelligence customised to your very own business needs.


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