Buy ADI reports and data from our subscription services and multi-client research. All prices in USD, To ensure high-level data integrity, accurate analysis, and impeccable forecasts, On-demand customization of scope of the report to exactly meet your needs, Targeted market view to provide pertinent information and save time of readers. But hurdles remain, namely scarcity of supply, competition with renewable diesel for resources and lack of technological diversification. The global aviation industry is concerned with manufacturing and operations of all types of aircraft and related services during transportation. From August 2020 in line with the relaxation in lockdown restriction, domestic & international travel and government directives, aviation operations resumed gradually across the globe. Stay abreast of your interest areas. Thirdly, SAF can also provide a marginal increase in fuel efficiency. . Factors such as rise in number of airline passengers, coupled with increased disposable income, increase in air transportation, and increase in consumption of synthetic lubricants supplements growth of the global sustainable aviation fuel market. Finally, if all planned renewable diesel projects were adapted to maximize SAF production instead, annual capacity could reach 7.6 billion gallons. However, fluctuations in crude oil prices and contamination of lubricants are the factors that are expected to hamper growth of the market during the forecast period. info@adi-analytics.com, Benchmarking Shale Gas Monetization Options, Assessing Opportunities in Bio-Based Chemicals, Forecasts for jet fuel demand by type through 2050 with key drivers and corresponding scenarios by region, Analysis of jet fuel demand recovery pathways and drivers including historical recovery analysis, Jet fuel supply outlook by region through 2050 in key scenarios including new and sustainable options, Review of policies and regulations on decarbonization and sustainability of aviation jet fuels, Aviationand jet fuel value chains carbon footprint and challenges with decarbonization, Inventory and profiles of sustainable aviation and jet fuel supply processes, pathways, and technologies, Population / economic growth, business / consumer travel, infrastructure investments, regulations / policies, Regional and technology analyses around costs and economics of various jet fuel supply options, Lists of key jet fuel users and their initiatives around long-term decarbonization and sustainability improvements, Lists of key jet fuel suppliers including new technology and process developers and competitive landscaping, Strategic implications, risks and mitigation strategies, and opportunity analyses for jet fuel suppliers. The World Bank's analysis shows that they could bring a 58 per cent reduction in emissions in 2050 if production is increased significantly. This eventually results in increased aircraft fleet size as well as frequency of flights, which requires efficient fuels and in turn, boost growth of the global sustainable aviation fuel market. Argus sustainable aviation fuels. The COVID-19 virus has spread worldwide without acknowledging borders. Sustainable Aviation Fuel: What It Is, Why It Matters Watch the replay of this [email protected] webinar with Avfuel's Keith Sawyer, manager of alternative fuels, to get a quick lesson on the basics of SAF, including how it affects aircraft performance, how it decreases CO 2 emissions, what the future will look like for those using SAF and more. Paul Bertels with Farmgate Insights tell Brownfield last fall the Biden Administration introduced a challenge for airlines to shift to complete use of sustainable aviation fuel by 2050. The Lufthansa Group has been involved in SAF research for many years and has built up an extensive network of partnerships. Most passengers across the globe prefer to travel by air than other conventional modes of transportation such as road and sea as it is the safest and fastest mode of transportation with few cancelled flights. The aviation industry is inclined toward bringing down carbon footprints to achieve a sustainable environment and meet stringent regulatory standards on emissions. The amount of SAF produced in 2021 met only 0.1% of global jet fuel demand. However, it is critical that policymakers set realistic sustainable aviation fuel (SAF) deployment goals that match the amount of fuel that could be made from available feedstock. According to Future Market Insights (FMI), the sustainable aviation fuel market was worth US$ 220 Mn in 2021 and is expected to reach US$ 15 Bn by 2030, with a CAGR of 60% from 2022 to 2032.. Sustainable Aviation Fuel Iberia Airlines Enters Into New Fuel Sales Agreement with Gevo for 6 Million Gallons of Sustainable Aviation Fuel Per Year for Five Years. A. The sustainable aviation fuel industry is expected to grow at a CAGR of 56.4% during the forecast period. As the title indicates, LMC's new report evaluates the potential for demand and supply of this emerging biofuel out to 2050. BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Synthetic lubricants ensure thermal stability, increased energy efficiency, better performances in extreme conditions, and resistance to oxidation, which drives growth of the global sustainable aviation fuel market. T&C*. November 4, 2022 8 min read In BNEF's Accelerated Policy Scenario, demand reaches 10.6 billion gallons, or 7.5% of jet fuel use. With a pipeline of $40 billion to $50 billion of total investment planned (of which about 70 percent is already post-final investment decision), 46 Mt of sustainable-fuels capacity is projected by 2025. s 35% reduction in emissions by 2030, and net zero by 2050, working out how to create and incorporate SAFs to meet demand needs to be a priority. Moreover, rise in number of airline passengers, coupled with increased disposable income, increase in air transportation, and increase in consumption of synthetic lubricants creates numerous opportunities for growth of the global sustainable aviation fuel market. The COVID-19 virus has spread worldwide without acknowledging borders. A. The global sustainable aviation fuel market was valued at $72.1 million in 2020, and is projected to reach $6,261.9 million by 2030, registering a CAGR of 56.4% from 2021 to 2030. Forrestal Building1000 Independence Avenue, SWWashington, DC 20585, Principal Deputy Assistant Secretary's Office, Weatherization and Intergovernmental Programs Office, Systems Development & Integration Related Links, Consortium for Computational Physics & Chemistry, Feedstock-Conversion Interface Consortium, Sustainable Aviation Fuel: Review of Technical Pathways Report, Memorandum of Understanding between DOE, DOT, USDA, Biomass Research and Development Board Sustainable Aviation Fuel Interagency Working Group, About Office of Energy Efficiency & Renewable Energy, Sustainable Aviation Fuel Grand Challenge. SAF is the only solution for airlines to fly more sustainably, electrification is not yet a solution and we are . What are sustainable aviation fuels? Sustainable aviation fuel from waste is a possible solution in theory. 2022 Bloomberg Finance L.P. All rights reserved. United Airlines is leading the way, with offtake agreements totaling about 2.3 percent of global jet fuel demand. Powering Sustainable Aviation Through Consumer Demand: The Clean Skies for Tomorrow Sustainable Aviation Fuel Certificate (SAFc) Framework Download PDF The World Economic Forum's Clean Skies for Tomorrow was founded to accelerate the deployment of sustainable aviation fuels (SAF) and the sector's broader pathway to net-zero emissions. The sustainable aviation fuel market is projected to grow from USD 219 million in 2021 to USD 15,716 million by 2030, at a CAGR of 60.8% during the forecast period. Based on fuel type, the. In addition, Aemetis is developing Carbon Zero Sustainable Aviation Fuel (SAF) and renewable diesel fuel bio-refineries in California from renewable oils and orchard & forest waste. SABA's mission is to encourage new SAF production, technological innovation, and support . Book your free consultation and let our research experts help you with your needs/problems. This makes air travel more reliable than other modes of transportation and offers comfortable experience during the journey. [342 Pages Report] The sustainable aviation fuel market is expected to experience tremendous growth during the forecast period of 2022-2032 with a CAGR of 60%. The list of company profiles can be optained from AMR website on request. Increase in application of sustainable aviation fuels result in reduction in carbon emissions compared to the traditional jet fuel as it replaces lifecycle of the fuel. On the basis of forecast analysis, Asia-Pacific is expected to maintain its lead during the forecast period, owing to increased demand for advanced aviation fuel across the region. Moreover, development of ecofriendly and safe aviation lubricants and rise in demand for low density lubricants for reduced weight are the factors that are expected to create numerous opportunities for growth of the market during the forecast period. About Clean Skies for Tomorrow. Governments across the globe are cancelling visas of foreign residents and locking down affected areas, which is also one of the major reasons behind the slowing down of the aviation industry. Blending lower carbon SAF with fossil jet fuel will be essential to meeting this goal. Over 450,000 flights have taken to the skies using SAF 7 technical pathways exist Over 100 million litres of SAF were produced in 2021 An ag economist says corn growers will benefit from strengthening demand for sustainable aviation fuels. Regulatory ambition is propelling the need for sustainable fuel in this industry and we have been seeing a gradual decline in UK aviation emissions. Some typical feedstocks used are cooking oil and other . Moreover, companies operating in developing sustainable aviation fuels have carried out developmental strategies to provide advanced and highly efficient lubricants, which supplements growth of sustainable aviation fuels in the global market. 6. It's produced from sustainable feedstocks and is very similar in its chemistry to traditional fossil jet fuel. Using alternative fuels could reduce CO2 emissions by around 80% compared to fossil fuels, without significant changes to fuel supply systems or engines. Renault reorganises towards electric future, Chinas trade unexpectedly shrinks as Covid curbs, global slowdown jolt demand, US aims anti-regulatory campaign at a pair of federal watchdogs, Fed hasnt accomplished anything on labour market, says former official, Bank of England wants more transparency for non-banks after turmoil in bond market, European Commission to propose more flexible spending rules, Moody's upgrades outlook on QatarEnergy, IQ and Kahramaa to 'positive', Qatari banks' external debt expected to drop by 8% this year: S&P, Al-Kuwari heads Qatari delegation to ministerial meeting in Riyadh, New sustainable aviation fuel agreements signed. The sample for global sustainable aviation fuel market report can be obtained on demand from the AMR website. A near-term goal of 3 billion gallons per year is established as a milestone for 2030. Biojet fuel is gaining momentum, as the fight against climate change picks up steam globally. 1. The SAF Grand Challenge is the result of DOE, DOT, and USDA launching a government-wide Memorandum of Understanding (MOU) that will attempt to reduce the cost, enhance the sustainability, and expand the production and use of SAF while: The SAF Grand Challenge and the increased production of SAF will play a critical role in a broader set of actions by the United States government and the private sector to reduce the aviation sectors emissions in a manner consistent with the goal of net-zero emissions for the U.S. economy, and to put the aviation sector on a pathway to full decarbonization by 2050. There are a variety of production pathways for SAF with several different feedstocks available. Producing 3 billion gallons of SAF per year by 2030 could be achievable, based on the report. However, further investments of between $1 trillion and $1.4 trillion are needed by 2040 to meet decarbonization commitments and regulated demand. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities. A multitude of projects to bring new capacity online are planned for the next five years. the sustainable aviation fuel grand challenge is the result of the u.s. department of energy (doe), the u.s. department of transportation (dot), the u.s. department of agriculture (usda), and other federal government agencies working together to develop a comprehensive strategy for scaling up new technologies to produce sustainable aviation fuels Houston, TX 77494, +1 (281) 506-8234 . The current sustainable aviation fuel market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency. This marks a significant step towards reducing the fossil jet fuel demand in the aviation sector. Global Opportunity Analysis and Industry Forecast, 20212030. As more global carbon reduction mandates come online, airlines will look to fulfill their environmental, social and corporate governance (ESG) requirements with sustainable aviation fuel (SAF). In the coming years, this clean fuel substitute is expected to become the main fuel source for commercial aircraft and business jets. For instance, in August 2021, Aemetis announced that it is developing the Carbon Zero Sustainable Aviation Fuel (SAF) and renewable diesel fuel biorefineries in California from renewable oils and orchard and forest waste. Further, in accordance to data released by the International Civil Aviation Organization (ICAO), 4.3 billion passengers were carried by airlines in the year 2018. Sustainable aviation fuel is a special type of fuel designed to be used in aircrafts and at the same time increases the efficiency of aircrafts. On the basis of fuel type, the global market has been segmented into biofuel, hydrogen fuel, and power to liquid fuel. Photo courtesy of istock.com. To reduce the industry's carbon emissions, the CST Coalition's leaders aim to scale the most promising option: sustainable aviation fuel (SAF). Sustainable Aviation Fuel (SAF) is considered the most important way to decarbonise airline operations in the next few decades, before alternatively powered aircraft can be widely deployed in commercial operations. Such developments supplement growth of the market across the globe. SAF feedstock sources range from cooking oils and municipal waste to food scraps and energy crops. In 2021, the Biden Administration announced its Sustainable Aviation Fuel (SAF) Grand Challenge for the U.S. aviation fuel supply sector to produce at least three billion gallons of SAF per year by 2030 and reduce emissions from aviation by 20%, with an eventual goal of meeting 100% of U.S. aviation fuel demand with SAF by 2050. In recognition of the critical role that drop-in synthesized hydrocarbon fuelfrom waste streams, renewable energy sources, or gaseous carbon oxidesor SAFwill play in addressing theclimate change crisis, and its role for jobs and the economy, DOE, DOT, and USDAundertake theMOU to ensure the highest level of collaboration and coordination across the agencies. A. The global sustainable aviation fuel market has been segmented into fuel type, aircraft type, platform, and region. Meeting a goal of supplying sufficient SAF to meet 100% of aviation fuel demand by 2050. First used by the industry in 2008, SAF has powered over 250,000 . ADI Analytics has launchedamulti-client study on Sustainable Aviation Fuel (SAF) that is being updated monthly. . Total. The Worldwide Sustainable Aviation Fuel market size is estimated to be worth USD million in 2022 and is forecast to a readjusted size of USD million by 2028 with a CAGR of % during the review. A Department of Energy report said the U.S. has the capacity to "sustainably" collect 1 billion dry tons of biomass each year, enough to produce 50 billion to 60 billion gallons of low-carbon biofuels such as SAF. It has impacted all industries, sectors and all aspects of lives with devastating economic and financial losses with significant uncertainties. Companies have been continuously developing and introducing sustainable aviation fuels made from different processes, which has created lucrative opportunities for growth of the segment in the global market. The sustainable aviation fuel market is projected to grow from estimated USD 66 million in 2020 to USD 15,307 million by 2030, at a CAGR of 72.4% during the forecast period. As a result, he says the U.S. will become less dependent on China for needed soybean demand, a country . On the basis of aircraft type, it is segmented into fixed wings, rotorcraft, and others. 2. Sustainable Aviation Fuel is currently produced mainly from biogenic residues, for example from used cooking oils. Sustainable aviation fuels (SAF) can reduce the life-cycle carbon footprint of aviation fuel by up to 80%, but they currently make up less than 0.1% of total aviation fuel consumption. Andrew Stevens looks at the ability of sustainable aviation fuels to help reduce the industry's emissions. This is an 'eggs in many baskets' approach, but SAF must make the biggest contribution to the 2050 net zero goal. In 2021, the Biden Administration announced its Sustainable Aviation Fuel (SAF) Grand Challenge for the U.S. aviation fuel supply sector to produce at least three billion gallons of SAF. Sustainable aviation fuels (SAFs) are one of few low-carbon technologies with the potential to help decarbonize the aviation sector and are the only feasible option in the near term. Synthesized from renewable feedstockssuch as municipal waste, agricultural residues, and waste lipidsSAF has already fueled more than a quarter million . Here a few examples. Market forecasts anticipate the global market for sustainable aviation fuel could grow from $66 million in 2020 to $15.3 billion by 2030, a compound annualized growth rate of 72.4 percent. We recognize the market still needs to be scaled. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities. If present trends continue, it is anticipated that demand for air passenger travel would exceed 10 billion by 2050 and carbon dioxide emissions would reach around 21.2 gigatonnes. Aircraft manufacturing and other related service provider industries are also impacted by the COVID situation. Sustainable aviation fuel (SAF) - a low-carbon alternative to conventional, petroleum-based jet fuel - is helping the aviation industry lower its carbon footprint. Boosting the demand. Thus, hike in crude oil prices further impacts airliners as an aircraft uses 14 liters of fuel per kilometer on an average, which certainly increases operational costs. If all come to fruition, SAF capacity could exceed 2.5 billion gallons by 2026. At that level, the price gap between SAF and regular kerosene would be starting to close. SAF is produced from a variety of sustainable resources, including corn and grain, fats and oils, algae, forestry and agricultural residue, municipal solid waste, sawmill waste, and alcohols including ethanol. Sustainable aviation fuel provides a cleaner alternative to fossil fuel, achieving up to an 80 percent reduction in greenhouse gas emissions over the fuel's lifecycle, compared to conventional fossil jet fuel. For the nascent SAF industry, 2022 has been a pivotal year as growth in the market picks up pace. SAF (sustainable aviation fuel) is a biofuel used to power aircraft that has a lower carbon footprint than conventional jet fuel. This is reflected in the IEA's Sustainable Development Scenario (SDS), which anticipates biofuels reaching around 10% of aviation fuel demand by 2030, and . A. If these plants maximize their SAF yields instead of renewable diesel, this figure could reach 4 billion gallons. As a result, it has had a severe economic and financial impact on all industries, sectors, and facets of life, as . Numerous companies are involved in the production of sustainable aviatoion fuel. Privacy | Terms | Disclaimer | ICP17049401-4, Want to learn how we help our clients put it all together? Governmental support is essential to using sustainable aviation fuels to achieve the industry's climate goals. Daily Newspaper published by GPPC Doha, Qatar. Thank you for contacting us, our sales representative will get in touch with you shortly! Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. Air travel contributes around 2.5% of global carbon dioxide (CO2) emissions. Governments across the globe are cancelling visas of foreign residents and locking down affected areas, which is also one of the major reasons behind the slowing down of the aviation industry.