Renewable bio jet fuel is made from sustainable biomass and provides a non-petroleum alternative for aviation fuel with up to 80% lower carbon emissions compared to conventional jet fuel. The renewable bio jet fuel is biologically produced from non-fossil based renewable resources such as camelina plant, algal biomass, and waste cooking oil. It has similar combustion properties like conventional jet fuel and can be blended at up to 50% without requiring changes to aircraft engine or fuel distribution infrastructure.

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

Key Takeaways

Key players - Major renewable Global renewable bio jet fuel market size include Neste, World Energy, Gevo, Sundrop Fuels, and SG Preston. Key oil companies like Shell Aviation, British Airways, and Alaska Airlines have also worked with suppliers to conduct flights with biojet fuel blends.

Growing demand - Stringent environmental regulations to curb emissions from air travel and increasing preference of airlines towards sustainable aviation are driving demand for renewable bio jet fuel. Fuel producers are working on lowering production costs to aid commercial scale adoption.

Technological advancement - Researchers are developing technologies to produce bio jet fuel from forest waste, sewage, algae, and other novel feedstocks. Advancements in refining processes aim to enhance fuel yields and lower costs.

Market Trends

Sustainable sourcing - Producers aim to use feedstocks that do not compete with food crops for land area. Waste oils, agricultural residues, and algae represent promising sustainable sources for bio jet fuel.

Blended with fossil fuels - Most flight operations currently leverage renewable bio jet fuel blends of up to 50% that are mixed with conventional jet fuel. Higher blend percentages require further testing and validation.

Market Opportunities

Carbon reduction targets - Airlines and regulators have set ambitious climate targets that can be met through increased deployment of lower carbon renewable bio jet fuel in the upcoming decade.

Supply chain expansion - Bio refineries are scaling production capacities and exploring global partnerships to meet expanding aviation renewable fuel demand.

Impact of COVID-19 on Renewable Bio Jet Fuel Market Growth

The COVID-19 pandemic has impacted the growth of the renewable bio jet fuel market. In the initial months of the pandemic, the strict lockdown measures imposed worldwide led to a steep decline in air travel. As most countries shut their borders and imposed travel restrictions, the demand for jet fuel plummeted, affecting the renewable bio jet fuel market negatively. During the pre-COVID era, the market was growing steadily owing to increasing concerns over greenhouse gas emissions from conventional jet fuel and rising need for sustainable aviation fuels. However, post the outbreak of the pandemic in early 2020, the renewable bio jet fuel market witnessed a significant slowdown.

With air traffic virtually coming to a standstill during the lockdowns, the offtake of renewable bio jet fuel from airlines reduced drastically. This had short-term repercussions on the production volumes and financial performance of renewable bio jet fuel manufacturers. However, as travel restrictions are now being gradually lifted in different parts of the world with increase in vaccinations, the demand for air travel is recovering. This is offering hopes of a revival in the renewable bio jet fuel market in near future. Though it may take some more time for the volumes to return to pre-COVID levels, strategies like investments in research development of advanced biofuel technologies and collaborations with airline companies will help market regain growth momentum in the coming years.

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