Renewable Aviation Fuel Market was valued at US $ XX Mn and expected to grow at XX% Compound Annual Growth Rate (CAGR) from 2019 to 2025.
Market Outline: Renewable Aviation Fuel Market
Renewable aviation fuel are liquid fuels that can be produced from a wide range of biomass including vegetable oils, plant materials, and animal waste. Aviation biofuels can be produced via a number of processing technologies. Different feedstock suit different process technologies depending on the physical and chemical structure of the biomass. Renewable aviation fuels, however, are already established as an alternative jet fuel option with the possibility of significant lifecycle emissions reductions (depending on feedstock and process). But because conventional jet fuel remains significantly cheaper than biojet, price support and cost reductions (e.g. through technological learning) would be required to make biojet competitive.
Market Dynamics: Renewable Aviation Fuel Market
New innovations and developments are undertaken by the major players in the market which strengthens its position. For instance, research is being done on alcohol-to-jet pathway, where alcohols such as ethanol or butanol are de-oxygenated and processed into jet fuels. Furthermore, various key players are focused towards increasing production bio jet fuels which propels the growth of renewable aviation market. However, aviation biofuels are more expensive than conventional jet fuel28. As fuel costs make up a large proportion of airlines operating costs, from a financial perspective biojet does not provide sufficient benefits to justify changing fuel procurement practices. The volatility of kerosene jet fuel prices – strongly linked with the price of crude oil – acts as one incentive for airlines to move to biojet fuel.
Market Scope: Renewable Aviation Fuel Market
Renewable aviation fuel market is segmented based on product type, application, and process type.
Based on product type, market is segmented into the following:
- Algal Biofuels
- Plant Biofuels
Based on the application, market is segmented into the following:
Based on process, market is segmented into the following
- Hydroprocessed fatty acids and esters
- Fischer-Tropsch (FT)
Regional Analysis: Renewable Aviation Fuel Market
Geographically, renewable aviation fuel market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. North America Renewable Aviation Fuel Market is one of the largest markets for both the aviation industry and renewable aviation fuel. An improving economy both at home and globally translated into a good year for the US aviation in 2017. The support from the Federal Aviation Administration is driving the consumption of biofuel in the aviation industry. The US Department of Commerce (DOC) has put import duties on foreign biodiesel volumes sourced from Indonesia and Argentina, the two leading exporters of biodiesel. This has resulted in the decline in imports. Such efforts are expected to drive the domestic production of biofuels to meet the increasing demand from the aviation sector. Europe Renewable Aviation Fuel Market is expected to be the largest renewable aviation fuel market over the foreseeable future on account of huge investment in development and favorable environment regulations. Various European airline companies have tested the fuel in commercial flights which is anticipated to bolster the market growth in the region. Asia Pacific Renewable Aviation Biofuel Market is expected to be the highest potential market region due to increasing commercial airline traffic particularly in emerging economies.
Competition Assessment: Renewable Aviation Fuel Market
Some of the players in the renewable aviation fuelmarket include
- Gevo, Inc.
- Red Rock Biofuels LLC.
- Honeywell International Inc.
- Virent Inc.
- Fulcrum BioEnergy, Inc.
- Neste Oil Corporation,
- AltAir Paramount LLC
- G. Preston Company
- SkyNRG BV
- Eni SpA Total S.A
- BP PLC
Notable Market Developments: Renewable Aviation Fuel Market
- In October 15 2018, Neste and BP Collaborate on Sustainable Aviation Fuel Development.