Global Sustainable Aviation Fuel Market to Hit US$30 Billion by 2030, Report

A new report from California-based cCarbon estimates the Sustainable Aviation Fuel (SAF) market to reach a value of US$29.7 billion by 2030. The main driver of growth is the need to reduce Greenhouse gas (GHG) emissions.

GHG emissions from the aviation industry constitute nearly 2% of the global GHG emission and approximately 11% of the transportation industry. Sustainable Aviation Fuel (SAF) is a biofuel used to power aircraft and has a chemical property similar to conventional jet fuel albeit with a much lesser carbon footprint.

The SAF market size stood at US$1.1 billion in 2022, up from US$50 million in 2019 registering an annual compounded growth rate of 115.38%.

In 2022, Europe occupied the highest market share of 60% however, as per cCarbon research, North America will occupy the highest share at 36% by 2030. Other significant observation is the South America and the Middle East which by the end of 2022 had no production will occupy 12% and 3% respectively.

To size the market, cCarbon mapped both the demand as well as supply of SAF. The research indicates that global SAF consumption in 2022 (as per offtake agreements) stood at 494 million litres.

At the same time, research done at plant level showed global production in 2022 stood at 538 million litres. The future production is expected to reach 18.2 billion litres in 2030, registering an annual growth rate of 55.30%.

Data collection from the supply side was achieved by tracking the plants producing SAF worldwide for both active and planned. And demand side was modeled by tracking the offtake agreements worldwide which included data on the fuel producer, fuel purchaser, offtake volume agreement, offtake length, and start year.

As ESG News Asia has previously reported a number of airlines in Asia are also working on their own SAF initiatives.

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