The fuel is blended with conventional jet fuel and burns similar to conventional jet fuel with significant reduced carbon footprint. Bio jet fuel is compatible with aircraft and aeroperformance and is a drop-in replacement to fossil jet fuel. It is manufactured from feedstock including used cooking oils, animal fats and plant oils. With rising environmental awareness, airlines across major economies are focusing on gradually blending bio jet fuel with conventional jet fuel to reduce emissions.
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 players operating in the Global renewable bio jet fuel market size 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. Airliners are actively collaborating with fuel producers and technology providers to boost production capacity and supply of bio jet fuel. Majority of airliners have set targets to blend certain percentage of their fuel consumption with bio jet fuel by 2025 and beyond to comply with emission norms. With favorable policies, North America and European region are anticipated to dominate the renewable bio jet fuel demand over the coming years.
Stringent emission norms imposed by aviation regulatory bodies is a major factor driving demand for renewable bio jet fuel. Agencies like International Civil Aviation Organization (ICAO) and European Aviation Safety Agency (EASA) have guidelines in place to cut carbon emissions from aviation. For example, ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) aims for carbon-neutral growth from 2020. This is prompting airlines to explore sustainable aviation fuel options like bio jet fuel. Additionally, bio jet fuel provides energy security by reducing dependence on fossil fuels.
High production cost of bio jet fuel remains a key challenge restricting widespread adoption. Conventional jet fuel is cheaper compared to bio jet fuel requiring policy support for commercial scale production. Feedstock availability and supply chain issues also limit large scale production of bio jet fuel currently. Persisting technology challenges in optimizing the production process add to cost hurdles.
This renewable bio jet fuel market is dominated by H3 (HEFA - Hydroprocessed Esters and Fatty Acids) and H1 (Fischer-Tropsch) sub segments. H3 sub segment holds more than 50% of market share as of 2024 primarily due to its easy availability of feedstock like vegetable oils and animal fats. Using H3 for bio jet fuel poses minimal modification to existing aircraft and engine infrastructures. H1 is also an important sub segment growing at a decent pace on account of having capability to handle wide range of feedstock which helps reduce dependence on a single feedstock type.
In terms of regions, North America holds the largest share of over 35% of the total renewable bio jet fuel market in 2024 primarily driven by supportive policies and regulatory environment promoting usage of sustainable renewable alternatives for aviation fuel in the US and Canada. Europe follows North America with around 30% share backed by favorable regulatory push for decarbonizing aviation sector through biofuels. Asia Pacific region is expected to witness the fastest growth rate during the forecast period 2024-2030 on account of robust economic development and aviation industry growth along with supportive government initiatives to reduce emissions from aviation sector in nations like China, India and Japan.
Get More Insights On This Topic: https://www.ukwebwire.com/renewable-bio-jet-fuel-market-size-share-analysis-2023-2030/