The Global Renewable Bio Jet Fuel Market Is Powered by...

The Global Renewable Bio Jet Fuel Market Is Powered by Environmental Sustainability

Posted 2024-02-13 07:14:50

The renewable bio jet fuel market comprises bio-derived jet fuel produced from renewable feedstocks such as sugarcane, camelina plant, agricultural residues and municipal solid wastes. Renewable bio jet fuel has physical and chemical properties similar to conventional jet fuel derived from petroleum and can be blended with petroleum-derived jet fuel in any proportion or used separately. It provides a drop-in replacement solution to reduce greenhouse gas emissions from air transportation. The renewable bio jet fuel blends are approved for commercial aviation and have demonstrated reduction in emissions by 50-80% over the full fuel lifecycle as compared to conventional jet fuel.

The Global renewable bio jet fuel market is estimated to be valued at US$ 299.4 Mn in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the renewable bio jet fuel market are Abbott Laboratories, Aurobindo Pharma USA, Boehringer Ingelheim International GmbH, Cipla Limited, Hikma Pharmaceuticals plc, Jubilant Cadista Pharmaceutical, Sanofi S.A., Solco Healthcare (Prinston Pharmaceutical Inc.) and Torrent Pharmaceuticals Ltd. Key players are investing in expansion of production capacities and research & development to produce cellulosic and algae-based bio jet fuels to cater to the growing demand.

The demand for renewable bio jet fuel is increasing owing to stringent environmental regulations regarding reduction of greenhouse gas emissions from the aviation industry. Airlines and fuel producers are focused on diversifying the jet fuel supply through development and scaling up technologies to produce sustainable alternative jet fuels.

Many countries are offering incentives and policies to boost production of renewable bio jet fuels to transition towards carbon neutral growth in air transportation. Blended bio jet fuel programs are being adopted by major airports across regions to establish regional markets and supply chain for the sustainable aviation fuel.

Market drivers

Growing concerns regarding the environmental impact of aviation emissions and global focus on limiting temperature rise well-below 2°C are the major drivers for renewable bio jet fuel market. Aircraft operators and fuel producers recognize renewable bio jet fuel as the only scalable solution to achieve long-term sustainability targets and mitigate climate change risks for the aviation industry. Stringent environmental regulations and incentives by governments worldwide regarding sustainability in air transportation are expected to drive increased production and consumption of renewable bio jet fuels over the forecast period.

The current geopolitical situation is impacting the growth of the Global renewable bio jet fuel market size. Armed conflicts and political tensions between major economies have disrupted supply chains and increased fuel prices globally. This has strengthened the business case for alternative fuels development. However, some regions face constraints, such as lack of cooperation or sanctions limiting technology transfer.

To overcome such challenges, market participants must diversify supply sources and focus on partnership with multiple government bodies. New agreements can help share intellectual property rights in a fair manner and address regional priorities related to energy security and emissions reduction goals. Cross-border research collaborations involving academic institutes and SMEs must be encouraged to open opportunities for local value addition and skilled jobs creation. Governments need to incentivize private investments through financial subsidies and mandates for use of sustainable aviation fuels. A well-coordinated global policy framework will help accelerate the large-scale commercialization of renewable bio jet fuels across international markets in the forecast period.

In terms of value, North America currently dominates the global renewable bio jet fuel market and is expected to continue its dominance over the forecast period as well. Major market players in the US and Canada are undertaking initiatives to develop sustainable fuel pathways suitable for commercial and military aviation applications. Availability of feedstock, supportive regulatory policies and presence of key industry stakeholders are major factors behind North America's concentration in the market.

Asia Pacific is identified as the fastest growing regional market for renewable bio jet fuels between 2024 and 2030. Rapid growth in air passenger traffic, rising crude oil prices and focus on establishing indigenous jet fuel production capacities are driving the market expansion in emerging economies like China, India and South Korea. In addition, governments in the region have announced partnerships to build alternative fuel infrastructure as part of the recovery plans targeting energy security and environmental sustainability.