Renewable/Bio Jet Fuel Market To Show Highest Growth Returns by 2030, Development Share and Latest Revenues

Posted by Pearl Smith on March 6th, 2023

Renewable or bio jet fuel is a type of aviation fuel made from renewable feedstocks such as plant oils, waste cooking oil, and animal fats, instead of fossil fuels. These feedstocks are processed through various methods such as hydrotreating, hydrocracking, and fermentation to produce a fuel that is chemically similar to conventional jet fuel. Renewable jet fuel is considered a more sustainable alternative to traditional jet fuel because it emits significantly lower greenhouse gas (GHG) emissions during its production and combustion. It also reduces the dependence on non-renewable resources and contributes to the reduction of carbon footprint in the aviation industry.

The renewable/bio jet fuel market is an emerging sector in the aviation industry that aims to reduce greenhouse gas emissions and reliance on fossil fuels. Renewable/bio jet fuel is produced from sustainable and renewable feedstocks such as waste cooking oil, agricultural residues, and algae.

Major players operating in the global renewable/bio jet fuel market include 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

The market for renewable/bio jet fuel is expected to grow significantly in the coming years as airlines and governments around the world strive to reduce their carbon footprint. According to a report by the International Air Transport Association (IATA), sustainable aviation fuels (SAFs) could account for 2% of global aviation fuel consumption by 2025 and 5% by 2030.

The use of renewable/bio jet fuel has numerous environmental benefits, including a significant reduction in greenhouse gas emissions, particulate matter, and sulfur oxide emissions. The production of renewable/bio jet fuel also has the potential to create jobs and stimulate rural economies by promoting sustainable agriculture and forestry practices.

The demand for renewable/bio jet fuel is increasing as the aviation industry seeks to reduce its carbon footprint and meet sustainability goals. The demand for renewable/bio jet fuel is being driven by several factors, including government policies and incentives, increasing public awareness of climate change, and the willingness of airlines to invest in more sustainable practices.

Many airlines are committed to reducing their carbon emissions and are looking to renewable/bio jet fuel as a way to achieve this goal. For example, Delta Air Lines has set a goal to achieve carbon neutrality by 2050 and is investing in renewable aviation fuels as part of its strategy to reduce emissions. Similarly, United Airlines has committed to reducing its greenhouse gas emissions by 100% by 2050 and has partnered with several companies to develop and produce renewable aviation fuels.

Governments around the world are also implementing policies and incentives to support the growth of the renewable/bio jet fuel market. For example, the European Union has established a Renewable Energy Directive (RED II) that requires a 14% share of renewable energy in the transportation sector by 2030, while the US government has provided tax incentives and grants for the development and production of renewable aviation fuels.

In addition, increasing public awareness and concern about climate change is putting pressure on the aviation industry to take action to reduce its environmental impact. Consumers are increasingly looking for sustainable travel options, and airlines that invest in renewable/bio jet fuel are likely to be more attractive to environmentally conscious travelers.

The renewable/bio jet fuel market offers several benefits for the aviation industry, the environment, and society as a whole. Some of the key benefits include:

1. Reduced greenhouse gas emissions: Renewable/bio jet fuel has the potential to reduce greenhouse gas emissions by up to 80% compared to traditional fossil-based jet fuel, according to the International Air Transport Association (IATA). This reduction in emissions can help the aviation industry meet its sustainability goals and contribute to global efforts to mitigate climate change.

2. Improved air quality: The use of renewable/bio jet fuel can also reduce emissions of particulate matter and sulfur oxides, which can have negative impacts on air quality and public health.

3. Increased energy security: Renewable/bio jet fuel is produced from sustainable and renewable feedstocks, such as waste cooking oil and agricultural residues, which can help reduce the aviation industry's reliance on imported fossil fuels and increase energy security.

4. Job creation: The production of renewable/bio jet fuel has the potential to create jobs and stimulate rural economies by promoting sustainable agriculture and forestry practices.

5. Innovation and technological advancement: The development and production of renewable/bio jet fuel is driving innovation and technological advancement in the aviation industry, leading to the development of new technologies and production methods that can benefit other sectors as well.

6. Enhanced brand reputation: Airlines that invest in renewable/bio jet fuel and adopt sustainable practices can enhance their brand reputation and appeal to environmentally conscious consumers.